aide memoire adb loan 3210-fij: transport infrastructure ... · 2 4. the adb loan and project...

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AIDE MEMOIRE

ADB Loan 3210-FIJ: Transport Infrastructure Investment Sector Project WB Project P150028: Transport Infrastructure Investment Project

REVIEW MISSION

Suva, Fiji 31 March – 6 April 2017

I. INTRODUCTION

1. A joint Asian Development Bank (ADB) and World Bank (WB) Review Mission (the Mission)1 visited Suva, Fiji from 31 March – 6 April 2017 to review implementation progress for the jointly implemented ADB Loan 3210-FIJ: Transport Infrastructure Investment Sector Project and WB Project P150028: Transport Infrastructure Investment Project (the project). Agreements reached by the Mission with the Ministry of Economy (MOE), and the Fiji Roads Authority (FRA) are recorded in this Aide Memoire, which is subject to the approval of higher authorities within the Government of Fiji (the government), ADB and WB. A list of persons consulted is in Annex 1.

II. BACKGROUND

2. The ADB project outcome is improved safety and resilience of land and maritime infrastructure. It is aligned with WB project development objective to improve the resilience and safety of land and maritime transport infrastructure for users of project roads, bridges and rural jetties and wharves. The project has two outputs: (i) rehabilitated and climate-resilient land and maritime transport infrastructure, and (ii) efficient project management support and institutional strengthening. The executing agency is the Ministry of Economy, and the implementing agency is the FRA. 3. The project is estimated to cost US$166.7 million. The project is financed by: (i) a loan of US$100 million from ADB’s ordinary capital resources, which will finance civil works, consulting services, taxes and duties, contingencies, and financing charges during implementation, (ii) a loan of US$50 million from the International Bank for Reconstruction and Development, which will finance civil works, consulting services, taxes and duties, contingencies, and financing charges during implementation, and (ii) government contribution of $16.7 million, which will finance civil works, consulting services, taxes and duties, salaries, and contingencies. The project was approved on 5 December 2014 by ADB, and on 11 March 2015 by World Bank.

1 The mission comprised D. Ling, Transport Specialist/ADB Mission Leader; E. Masih, Project Analyst, ADB; J.

Reichert, Senior Infrastructure Specialist/WB Mission Leader; O. Whalley, Transport Analyst, WB; D. Whitehead, Financial Management Specialist, WB; and J. Toledo; Disbursement Specialist, WB.

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4. The ADB loan and project agreements were signed on 12 December 2014, and the loan was made effective on 27 March 2015. The WB financing agreement was signed on 14 April 2016 and became effective on 10 August 2016.

III. MISSION FINDINGS AND AGREEMENTS REACHED

A. Implementation Status

5. Project progress remains slow, although there has been modest progress since the last review mission in October 2016. Two additional civil works contracts were awarded. Based on the project implementation schedule in the latest PAM, the project is assessed to be about six months behind schedule. The project supervision team positions have still not been filled. The professional services that prepared several subprojects are no longer active as of 23 September 2016. Agreement on terms of reference for design and supervision consultants and their recruitment remains critical. Project status ratings are included in Annex 3. Contracts awarded and their progress is summarized in Table 1 below:

Table 1: Summary of Contracts Awarded and Progress Contract Description Total Cost

(F$) Progress assessed by FRA

FRA/TIISP/15-84 Streetlights, West Villages 1,870,544 98%

FRA/TIISP/15-63 Viti Levu Crossing Renewals, Matawale

2,119,641 25%

FRA/TIISP/16-19 Mass Action Guardrails 1,567,612.73 90%

FRA/TIISP/16-01 Suva Arterial Roads Upgrade Project (Phase 1)

22,917,926.52 5%

B. Project Outputs and Implementation Arrangements

6. Project supervision team. As detailed in the PAM, FRA is required to establish a project supervision team consisting of a project manager/procurement specialist, accountant, environmental safeguards specialist, and social safeguards specialist. 7. The FRA through MOE submitted a request to ADB to (i) finance the project manager/procurement specialist and the environmental safeguards specialist from the ADB/WB loan proceeds, and (ii) administer the selection process of the positions using Individual Consultant Selection. The request was approved by ADB on 2 August 2016.2 The positions were advertised on ADB’s Consultant Service Recruitment Notice (CSRN) on 5 August 2016 and closed on 19 August 2016. A shortlist was prepared on 2 September 2016. However, FRA found the shortlisted candidates to be unsuitable. In addition, FRA through MOE requested for the project manager/procurement specialist position to be divided into two separate roles. The two positions were advertised on ADB’s on 2 February 2017 and closed on 9 February 2017. FRA prepared a shortlist, and interviewed the candidates. The preferred candidates are being considered by FRA’s Board, and the positions are expected to be filled by May 2017.

8. FRA’s social safeguards specialist was mobilized since 13 January 2016. However, following his departure for home leave in December 2016, he has not returned to FRA since, due

2 There was no need for WB approval, as the description of the project in the legal agreement covers the costs of the

Project Supervision Team (PST). However, when there is another opportunity to do so, the project should be restructured to change the language in the Project Appraisal Document, which stipulates that counterpart funding will pay the salaries of the PST members.

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to medical reasons. FRA has requested for short-term support from ADB for a social safeguard specialist, while they search for a longer term solution. Short-term support could be provided through TA 8777-FIJ: Strengthening Transport Sector Coordination. FRA has filled the environment specialist and financial management specialist positions through local hires. 9. Status of Awarded Civil Works. Table 2 below details the status of civil works contracts that have been awarded.

Table 2: Status of Contracts Awarded

Contract Status

FRA/TIISP/15-84 - Streetlights, West Villages

The contract was awarded to Engineer Procure Construct, Fiji Ltd, and signed on 16 May 2016. The original scope of streetlights is assessed at 98% complete. Additional streetlights and poles using solar power are being included in the contract scope, and will be financed by the government.

FRA/TIISP/15-63 - Viti Levu Crossing Renewals, Matawale

The contract was awarded to Lomanitoba, Fiji Ltd, and signed on 23 May 2016. Geotechnical testing was not done for the site, when MWH carried out the detailed design. The unsuitable geotechnical conditions cannot accommodate the design that was provided. FRA needed to demobilize the contractor while a revised design is being provided. An excavator is being provided at the site full time to reinstate the temporary crossing, due to frequent washouts from the current weather conditions. A design has been prepared by Geofabrics Australia (a geosynthetic materials supplier) to improve the site geotechnical conditions - although they are unwilling to certify the design. FRA has engaged a local engineering firm to review and assume responsibility for the design before it is implemented (expected within 3-4 weeks). The revised design can then be issued to the contractor as a variation.

FRA/TIISP/16-19 Mass Action Guardrails

The contract was awarded to Hot Spring Hire Services, Fiji Ltd, and signed on 30 January 2017. Physical progress is assessed as 90% complete.

FRA/TIISP/16-01 Suva Arterial Roads Upgrading Project (Phase 1)

The contract was awarded to China Rail Group No. 5, China, and signed on 25 January 2017. After the contract was signed, there were delays in providing a contractor’s representative, submitting the necessary performance security, advancing the payment security, and insurances. Also, the contractor ignored several instructions from the Engineer. FRA issued a Notice to Correct for breaches of contract to the contractor on 20 February 2017, which they rectified quickly. The contractor is currently carrying out surveys for pavement design of the selected road sections.

10. Status of Civil Works to be procured. On 3 April 2017, FRA submitted a request to ADB to consider a new set of General Conditions of Contract (GCC) that have been harmonized and standardized to local conditions in Fiji. FRA have stated that the Multilateral Development Bank Harmonized Edition of FIDIC GCC, used in all of ADB and WB’s large works contracts in developing member countries, does not meet Fijian requirements and conditions. Any additions or amendments needed to meet Fijian requirements and conditions should be addressed in the Particular Conditions of Contract (PCC) with reference to the Multilateral Development Bank Harmonized Edition of FIDIC GCC, and proposed additions or amendments are subject to ADB’s prior approval.

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11. Table 3 below details the status of civil works contracts that have been programmed but are yet to be procured.

Table 3: Status of Contracts for Procurement

Contract Status

FRA/TIISP/16-03 – 3 Year Program, Reseals for West, Central, and North Divisions

Due diligence and designs are complete. Bidding documents have been developed, and the technical specifications have been agreed with ADB/WB. On 31 March 2017, FRA submitted bidding documents that include their new set of locally harmonized and standardized GCC. Until agreement is reached on these new GCC, the bidding documents cannot be accepted by ADB.

FRA/TIISP/16-02 – Taveuni Bridges and Balili Crossing

The detailed design undertaken by MWH for the subproject bridges is only 90% complete. To prevent delays, it was agreed that the completion of the detailed design can be included as a lump sum component in the bidding documents. In addition, bidders may submit alternative technical designs to provide innovative and/or lower cost technical solutions that meet a minimum set of design criteria to be agreed by FRA/ADB/WB. To ensure that price does not influence the technical assessment of alternative proposals, a single stage two envelope bidding procedure should be used, and technical bids should first be assessed prior to opening and assessment of financial bids.

Contract FRA/TIISP/16-06 – Unsealed Roads Rehabilitation and Resheets for West, Central, and Northern Division

Safeguards screening reports have been submitted and cleared by ADB/WB. Due diligence is yet to be submitted.

Contract FRA/TIISP/16-14 – Viti Levu Crossing Renewals for Rabaraba, Solovi 1 and Solovi 2

Due diligence has been submitted, and reviewed by ADB/WB. Comments have been provided to FRA.

Contract FRA/TIISP/16-15 – Ovalau Bridges

Due diligence has been submitted, and reviewed by ADB/WB. Comments have been provided to FRA.

Contract FRA/TIISP/16-29 – Suva Arterial Roads Rehabilitation Stage 2

Due diligence is being conducted in-house by FRA and will be submitted to ADB/WB. FRA intends to bid these works as a design build contract. A short-term procurement specialist provided by ADB in November 2016 developed design and build bidding documents that make use of FIDIC yellow book. A full time procurement specialist would be required to administer the bidding process.

12. Revised national design and construction standards - FRA has proceeded with updating and harmonizing their design and construction standards that are suitable to the local Fijian context (with considerations of climate change, availability of materials, fitness for purpose, etc.). The previous interim FRA design standards were based on NZ standards, and the PWD specifications were based on Australian and British standards. A technical review of the standard specifications could be financed by the loan, and is consistent with the project activities/outputs. A firm would likely be needed, as there is a range of expertise required, and terms of reference would need to be developed, with the ADB/WB offering to assist with a draft. ADB will guide FRA through the recruitment process once the TORs are ready, if needed. 13. Road safety - The project design outputs include a road safety component "40 km of roads with minimum 3-Star rating for vehicle occupants based on iRAP assessments". Therefore, road safety audits and/or iRAP surveys should be done prior to detailed design for roads to be rehabilitated, so that the findings of the audits or surveys can guide the detailed design to include

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safety features which minimize the trauma that can be caused by improved roads. All SARUP1 sites were covered by the iRAP survey done for FRA in 2014. The SARUP2 sites have not been surveyed or audited yet. 14. FRA may consider engaging a road safety specialist to (i) develop a road safety audit manual, (ii) undertake road safety audits, and (iii) provide training to FRA in road safety auditing. A draft TOR for the road safety specialist is provided in Annex 2, using a time-based contract with an estimated ceiling of 28 weeks (about 7 months). The mission encourages FRA to recruit this specialist and undertake road safety audits for SARUP2 project sites prior to the award of the Design and Build Contract if possible. ADB can guide FRA through the recruitment process. C. Safeguards 15. Safeguards frameworks. The mission indicated that the World Bank’s safeguards requirements have recently been strengthened to include additional documentation for works contracts. The strengthened requirements will be communicated in due course.

D. Contract Awards and Disbursements

16. Table 4 below shows contract awards and disbursements to date by financier:

Table 4: Contract Awards and Disbursements (US$)

Financier Contract Award Disbursement

ADB 8,317,188.47 779,065.86a

World Bank 4,158,594.24 0.00b a Inclusive of commitment charges and an imprest advance of $500,000. In addition, withdrawal applications are being

processed for F$1,030,863.57 (reimbursement for 2016 expenditures), and F$1,498,832.29 (10% advance payment for SARUP 1). b The amount does not include the upfront and commitment charges from the IBRD loan.

E. Site Visit 17. The mission conducted a site visit to SARUP 1 and SARUP 2 project sites on 4 April 2017. Representatives from FRA, ADB, and WB participated. The mission carried out site inspections of road sections along Queens Road, Kings Road, Princess Road, Edinburgh Drive, Foster Road, Ratu Sukuna Road, Waimanu Road, Cakobau Road, Gladstone Road and Ratu Mara Road. The pavement of the road sections had visible signs of distress including potholing, rutting and raveling. They are in poor to fair condition and warrant a full rehabilitation to extend their design life by a further 25 years. Of concern were the maintenance works currently being undertaken on some sections being considered for inclusion under SARUP2, which included pavement stabilization work. FRA is asked to check whether these sections should be excluded from the scope of SARUP2.

F. Disbursement Arrangements

18. The ADB loan is being disbursed in accordance with ADB's Loan Disbursement Handbook (2015, as amended from time to time). The disbursement from the ADB loan proceeds will be in accordance with Schedule 3 of the Loan Agreement. Pursuant to ADB’s Safeguard Policy Statement 2009, ADB funds may not be applied to the activities described in the ADB Prohibited

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Investment Activities List. Disbursement from ADB loan proceeds are through imprest account, direct payment, and reimbursement procedures. 19. Three disbursement methods are available for the WB loan, including advance payments, reimbursements, and direct payments. A designated account (DA) for FRA will be established in Fijian Dollars at a bank acceptable to WB and reconciled on a monthly basis. The ceiling of the DA will be FJD 5 million. FRA’s financial management team will be responsible for forecasting project expenditures and submitting withdrawal applications to replenish the DA on a monthly basis. A bank account for the DA has not yet been established. No withdrawal applications to process any disbursements have been submitted.

20. Before disbursements from the DA can proceed, FRA/MoE will need to carry out the following actions: (i) establish a bank account ANZ; (ii) amend BRF for the DA to include ANZ account details; (iii) prepare a withdrawal application (WA) for initial advance to DA; (iv) prepare a WA for direct payments; (v) prepare a WA for reimbursements; (vi) register MoE approvers tokens; and (vii) consider revising ASL to add 4th person to be consistent with ADB ASL.

G. Reporting, Accounting and Auditing

21. As required by Section 2.08 of the Project Agreement, FRA are required to furnish to ADB periodic reports on the executing of the project including progress made, problems encountered during the period under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following period. FRA have drafted a quarterly reporting based on this template for Q2 2016 although it is yet to be formally submitted to ADB and WB. A quarterly report for Q4 2016 and Q1 2017 is due. 22. FRA are required to maintain separate records and accounts that identify the goods, works, and services financed by the project, the expenditures incurred for the project, and the use of counterpart funds. The project accounts are required to be accrual accounts established and maintained in accordance with sound accounting principles and practices that follow internationally accepted accounting standards, in accordance with Section 2.09 of the Project Agreement. 23. The mission informed FRA that submission of the audited project financial statements and audit report is due six months after the close of each fiscal year. FRA submitted to ADB and WB the audited project financial statements from the effectivity date 23 March 2015 to the end of the revised financial year, 31 July 2016 by 31 January 2017. Comments were provided on the audited project financial statements, and they are currently being reviewed.

24. Interim unaudited financial reports are required for each fiscal semester. A template for its preparation and submission has been discussed. Revised audited financial statements for 19 months ended 31 July 2016 need to be submitted to the Bank and publicly disclose on FRA website. IFRs for 19 months to 31 July 2016 and 6 months to 31 January 2017 also need to be submitted to WB.

H. Project Assurances and Covenants 25. ADB’s approval of the project was based on a number of assurances provided by Ministry of Economy and FRA through the loan and project agreements, to be complied with during project implementation. The WB loan agreement also had similar covenants which need to be complied with. The list of assurances and their status of compliance are available in Annex 4. The mission

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noted that there are four assurances that are not complied with. A project website (Schedule 5, para. 10), and a grievance redress mechanism (Schedule 5, para 11) were required to be established within the first 12 months of project implementation. Also, the Borrower is required to ensure, or cause the FRA to ensure, that the project supervision team, established as part of the FRA, is provided with such staff and resources as necessary for the efficient implementation of the Project (Section 2, para. 2). The Borrower shall also ensure that FRA shall be provided with adequate staff, resources, and facilities to implement the Project (Schedule 5, para. 7). These non-compliances should to be addressed, as soon as possible. 26. While FRA has a website for communicating complaints or concerns associated with FRA works, a specific one for the project has yet to be developed. A project specific website for lodging grievances should be established, as per the legal agreement.

IV. CONCLUSION

27. Table 5 below shows key actions and target dates for action under the project:

Table 5: Key Actions and Target Dates

28. Project implementation continues to progress modestly, although at a rate that is unsatisfactory. The immediate issue that remains to be addressed is to fully staff the project supervision team, so that activities for procurement, selection of consultants, and safeguards monitoring and compliance can gain traction within FRA. The next joint ADB/WB review mission is expected to be in October 2017. It will be a mid-term review mission, during which amendments to the project outputs, changes to contract award and disbursement targets, and extensions to project implementation period can be considered. 29. The Mission conveys it’s thanks to the Ministry of Economy, Ministry of Infrastructure and Transport, and FRA, for the cooperation, participation, and assistance provided to the Mission.

David Ling Transport Specialist, Asian Development Bank Jim Reichert Senior Infrastructure Specialist, World Bank

Action Responsibility Date Due Status

Hire the project manager and procurement specialist for the Project Supervision Team

FRA ASAP Ongoing

Submit quarterly report for Q1 2017. FRA ASAP Ongoing

Submit corrected audited project financial statements.

FRA ASAP Ongoing

Develop project-specific GRM link to FRA website. FRA ASAP Ongoing

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Attachments: Annex 1 – List of Persons Met

Annex 2 – Road Safety Specialist Terms of Reference Annex 3 – Project Status Ratings

Annex 4 – List of Assurances

Annex 1

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LIST OF PERSONS MET Ministry of Economy Krishna Prasad Deputy Secretary, Strategic Planning Office Isikeli Voceduadua Director, Asset Management Kamal Gounder Principal Economist Vineil Narayan Senior Economic Planning Officer Malvina Singh Economic Planning Officer Nemia Dawai Senior Accountant Ministry of Infrastructure and Transport Paul Bayly Permanent Secretary Fiji Roads Authority John Hutchinson CEO Robert Sen Chief Financial Officer Rodney Bridges Acting GM, Capital Works Michael Dale Program Manager Mike Mackintosh Project Manager Sonal Goundar Project Accountant Kamal Prasad Engineer

Annex 2

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DRAFT TERMS OF REFERENCE Fiji Transport Infrastructure Investment Sector Project (TIISP) Consulting Services for Road Safety Auditing Background The Transport Infrastructure Investment Sector Project (TIISP) is financed under a joint Asian Development Bank (ADB) and World Bank (WB) loan with counterpart funding from the Government of Fiji. The project supports the Government of Fiji’s (GOF) Roadmap for Democracy and Sustainable Socio-Economic Development, which emphasizes the lack of transport as a constraint for Fiji’s economic and social development. As approximately 55% (412,425)3 of Fiji’s population lives in the rural areas, and approximately 44% of rural people live in poverty4, improving service delivery and income opportunities for the rural population is a key priority. The project will improve access to markets, employment opportunities and social services. Outcomes will include safer, efficient, resilient land and maritime transport infrastructure in the project areas. There are two main outputs: (a) rehabilitated and climate resilient land and maritime transport infrastructure, and (b) efficient project management support and institutional strengthening. This relates to improving the capacity of Fiji transport agencies and related departments to manage bridges, roads, and jetty assets; also to provide greater levels of accountability and transparency in safeguards. The project activities comprise physical works including new infrastructure and/or the upgrading, renewal, rehabilitation and/or repair of public roads, bridges and/or rural maritime infrastructure in Fiji and non-physical activities such as institutional strengthening and capacity building within the transport sector5.

The project was approved by ADB’s Board of Directors on 5 December 2014 and WB’s Board of Executive Directors on 11 March 2015. The project is estimated to cost US$166.67 million, of which US$117.42 million is to be spent on land and marine transport infrastructure and US$19.80 million is to be spent on project management support and institutional strengthening.

A key aspect of the project is road safety, with funding set aside to address this important component. In 2015, an International Road Assessment Program (iRAP) survey was conducted for 576 km of Fiji’s main road network, with the results and a proposed investment plan made available to the Fiji Roads Authority (FRA). The survey found that 84% of the surveyed roads were considered 1-star for vehicle users, the lowest star rating which suggests that they pose a significant risk of death or injury to users. Building on these findings, consultancy services are required to conduct road safety audits at sub-project level to assist the project with meeting its target of 65 km of road with a minimum 3-star rating for vehicle occupants. By conducting audits at feasibility, concept, detailed design, pre-opening and post-construction stages for specific sub-projects, designs will incorporate safe features to reduce the risk of trauma. Assignment Objectives The aims of this Consultancy are:

1) Development of Fiji Road Safety Audit Manual

3 Fiji Bureau of Statistics. Census 2007. 4 Ibid. 5 Public roads include national main roads (formerly main, secondary and country roads) and municipal roads under the responsibility of the Fiji Roads Authority (FRA), and rural roads under the Ministry of Rural and Maritime Development and National Disaster Management (MRMD). Rural maritime infrastructure includes rural jetties and wharves, but not including the main port infrastructure under Fiji Ports Corporation Ltd (FPCL).

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To select an existing Road Safety Audit Manual (guidelines and procedures) which can be readily adapted for conditions in Fiji. Following agreement on the choice of existing Manual the consultant will adapt it as necessary to suit local conditions. The adapted Manual is mainly intended for use by the FRA and by its consultants and shall meet the following detailed objectives:

Facilitate identification of road safety risks for all road users (vehicles users,

pedestrians, motorcyclists and cyclists) as well as others affected;

Provide a framework for responding to these hazards, including suggesting

interventions which will eliminate or reduce road safety risks;

Minimize the risk of crashes occurring in the future as a result of planning decisions

on new transport infrastructure schemes;

Reduce the risk of crashes occurring in the future as a result of unintended effects of

the design of road schemes;

Enhance the awareness of road safety needs among decision-makers and scheme

designers;

Develop clear and comprehensive guidelines to conduct road safety audits throughout

the different stages of a project’s development, including at feasibility stage, concept

design stage, detailed design stage, pre-opening stage and post-construction stages;

Develop clear and comprehensive checklists to be used as a guide for assessing

existing roads, project designs and inspecting project sites at the different stages of

project’s development; and

Help develop local expertise in road safety auditing.

2) Conduct Road Safety Audits

To conduct road safety audits, based on the adopted Manual. This will include feasibility, concept design, detailed design, pre-opening and post-construction stages.

3) Provide Training to FRA Staff in Auditing

Based on the manual and using country specific examples from audits conducted, provide in-depth training to FRA engineering and planning staff to allow them to apply the manual in their day-to-day work. The objective is to make road safety auditing standard practice for road projects in Fiji.

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Scope of Services Part 1 - Development of Fiji Road Safety Audit Manual - 8 person weeks The basis for a safety audit is the application of safety principles to the design of a road scheme to prevent future crashes occurring, or to reduce their severity. The procedure is usually implemented at some or all of five stages: feasibility, concept design, detailed design, pre-opening, and post-construction, which may have been in operation for some time. In order to achieve the general project objectives the Consultant shall obtain manuals/guidelines for road safety audit being used in other countries and shall review them for applicability in Fiji. In discussion with the FRA and the ADB and WB, the most appropriate Manual shall be selected. The Consultant shall then adapt the selected Manual as necessary to suit local conditions in Fiji. The Consultant is also required to provide inputs on road safety to the design and construction standards which FRA is currently in the processing of revising. Deliverables

1) The Consultant will prepare a short report on the review of existing Manuals together with

a recommendation on the Manual most appropriate to Fiji. The report will also identify the

extent of amendment needed for Fijian conditions.

2) Subject to FRA and the Bank’s acceptance of Deliverable 1, the Consultant will make the

necessary amendments to the selected Manual and submit these to the FRA as a draft

for approval.

3) Following comment and any subsequent changes needed the Consultant will prepare a

final version of the adapted Manual.

Part 2 - Conduct Road Safety Audits - 16 person weeks The Consultant is required to undertake road safety audits on behalf of FRA based on detailed physical inspection of the road project sites or design documentation. As an indication, the Consultant is required to conduct audits on the following road sections. These may vary depending on project requirements. Particular attention shall be given to the safety of vulnerable road users such as pedestrians, cyclists and motorcyclists.

Sub-project name Audit type Length

? Feasibility xx km

SARUP 2? Concept design xx km

? Detailed design xx km

? Pre-opening xx km

? Post construction xx km

Deliverables

1) For each audit the Consultant will prepare a draft audit report providing an opportunity for

FRA and design and supervision consultant to respond. The report shall include specific

recommendations for how safety can be addressed relevant to the stage of the audit

2) After considering the comments of the FRA, the consultant will prepare a final report

documenting findings, and actions taken by designer/contractor to address

recommendations.

3) An iRAP design assessment may also be required on selected detailed design audits to

arrive at a star value rating.

Part 3 - Provide Training to FRA Staff in Auditing - 4 person weeks In order to achieve this aim it is necessary that FRA officials who will be responsible for commissioning audits, and those who will undertake them fully understand the process and are trained in carrying out road safety audits.

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The Consultant will prepare and deliver a 3-day training programme intended to impart this understanding. This will cover at least the following elements:

The purpose of road safety audit

The key steps in the process

Management and reporting on the process

Responsibilities and responses to an audit report

Qualification of auditors

Road safety checklists

In discussion with the FRA a list of attendees will be agreed. This is expected to include relevant persons from outside of government, in particular those who may be expected to carry out audits in the future. The training course(s) will be conducted in Fiji and wherever possible use will be made of local examples as training material. Deliverables The Consultant will prepare all course documentation including Powerpoint presentations, hand outs and checklists for attendees, and working examples for classwork sessions as appropriate for the subject. After completion of the training the Consultant will conduct a simple survey of delegates to obtain feedback on the course. He will include the results of this survey in a short report on the immediate outcome of the training. Qualifications of Consultant Behavioral Attributes The successful applicant will demonstrate their suitability to build relationship and rapport with all levels of staff, work as part of the team in a developing country office environment, and to provide advice, mentoring and training to colleagues. Minimum requirements

Bachelor of Engineering in civil engineering (conforming to the Washington Accord or

equivalent)

Must have at least 15 years of relevant experience in road safety engineering for roads

ranging from highway to rural

Experience in preparing manuals and applying to audits at feasibility, concept design,

detailed design, pre-opening, and post-construction stages

Fluency in written and spoken English, with excellent report writing capabilities

Ability to work on the ground and remotely as part of a team,

Leadership experience including in a developing country context

Selection Requirements Work samples (e.g. specifications, reports, etc. prepared by the applicant) will need to be provided, in order to be included as part of the final review. Referees of the preferred candidate will be contacted to verify prior experience and performance. Available Documentation -iRAP Survey Results -Existing road safety standards?

Annex 3

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Project Status Ratings

Current Rating Comments

Progress Towards Achieving PDO

Moderately Satisfactory

The WB PDO/ADB outcome remains achievable, although delays are starting to threaten this.

Implementation Progress

Moderately Unsatisfactory

Project implementation has only made modest gains due to several changes in FRA’s senior management team; the unexpected departure of FRA’s principal consulting firm for project design and supervision; and the failure to staff key positions in the PST.

Financial Management Satisfactory No financial reports are overdue.

Project Management Moderately

Unsatisfactory Staffing of the PST remains a critical issue, with overdue project reports a symptom of this.

Counterpart Funding Satisfactory No counterpart funds have been required yet.

Procurement Moderately

Unsatisfactory Procurement is a main cause of project delays.

Monitoring and Evaluation

Moderately Unsatisfactory Project reports are overdue.

Overall Safeguards Rating

Moderately Satisfactory

This overall rating has been downgraded due to CEMP issues.

Environmental Assessment

Moderately Unsatisfactory

CEMPs have been prepared, but not submitted for prior ADB/WB approval.

Involuntary Resettlement Satisfactory

To date, none of the subprojects has involved resettlement or land acquisition.

Annex 4

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PROJECT SPECIFIC COVENANTS - AS DISPLAYED IN LEGAL AGREEMENTS

Product Schedule Para No.

Description Remarks/Issues Type

Loan 3210 Section 4 1 --(a) The Borrower shall cause the

Project to be carried out with due diligence and efficiency and in

conformity with sound applicable technical, financial, business, and

development practices. (b) In the carrying out of the Project and operation of the Project facilities, the

Borrower shall perform, or cause to be performed, all obligations set forth in

Schedule 5 to this Loan Agreement and

the Project Agreement.

Complied. Others

Loan 3210 Schedule

5 1 --Implementation Arrangements

1. The Borrower and the FRA shall

ensure that the Project is implemented in accordance with the detailed

arrangements set forth in the PAM. Any subsequent change to the PAM shall

become effective only after approval of such change by the Borrower and ADB.

In the event of any discrepancy between

the PAM and this Loan Agreement, the provisions of this Loan Agreement shall

prevail.

Complied. Others

Loan 3210 Section 2 1 --(a) FRA shall carry out the Project with due diligence and efficiency, and in

conformity with sound applicable technical, financial, business, and

development practices. (b) In the carrying out of the Project and

operation of the Project facilities, FRA

shall perform all obligations set forth in the Loan Agreement to the extent that

they are applicable to FRA.

Complied. Complied.

Others

Annex 6

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Loan 3210 Section 4 2 --The Borrower shall make available, or

cause to be made available, promptly as needed, the funds, facilities, services,

land and other resources, as required, in

addition to the proceeds of the Loan, for the carrying out of the Project.

Complied. Economic

Loan 3210 Schedule 5

2 --2. The Borrower shall ensure, or cause the FRA to ensure, that the project

supervision team, established as part of

the FRA, is provided with such staff and resources as necessary for the efficient

implementation of the Project.

Not complied. A fully staffed project supervision team has not been in place

since the ADB loan was declared effective

on 25 March 2015.

Others

Loan 3210 Section 2 2 --FRA shall make available, promptly as needed, the funds, facilities, services,

equipment and other resources as required, in addition to the proceeds of

the Loan, for the carrying out of the Project.

Complied. Financials

Loan 3210 Section 4 3 --The Borrower shall ensure that the

activities of its departments and agencies with respect to the carrying out

of the Project and operation of the

Project facilities are conducted and coordinated in accordance with sound

administrative policies and procedures.

Complied. Others

Loan 3210 Section 2 3 --(a) In the carrying out of the Project,

FRA shall employ competent and

qualified consultants and contractors, acceptable to ADB, to an extent and

upon terms and conditions satisfactory to ADB. (b) Except as ADB may otherwise agree,

FRA shall procure all items of expenditures to be financed out of the

proceeds of the Loan in accordance with the provisions of Schedule 4 to the Loan

Agreement. ADB may refuse to finance a

contract where any such item has not been procured under procedures

substantially in accordance with those

Complied.

Complied.

Economic

Annex 6

17

agreed between the Recipient and ADB

or where the terms and conditions of the contract are not satisfactory to ADB.

Loan 3210 Schedule

5 3 --3. The Borrower and the FRA shall

ensure that to the extent possible under the prevailing laws of the Borrower, the

staff members who will receive training under the Project will be retained in their

current positions and will not be

transferred unnecessarily, so that the Project can benefit from their skills.

Complied. Others

Loan 3210 Section 4 4 --The Borrower shall enable ADB's

representatives to inspect the Project, the Goods and Works, and any relevant

records and documents.

Complied. Others

Loan 3210 Section 2 4 --FRA shall carry out the Project in

accordance with plans, design

standards, specifications, work schedules and construction methods

acceptable to ADB. FRA shall furnish, or cause to be furnished, to ADB, promptly

after their preparation, such plans,

design standards, specifications and work schedules, and any material

modifications subsequently made therein, in such detail as ADB shall

reasonably request.

Complied. Others


4 --Coordination among the Agencies 4. The Borrower is fully committed to the

Project and shall ensure that all ministries, agencies and divisions

involved in the implementation of the

Project, including local government authorities, give their full cooperation to

ensure smooth implementation of the Project

Complied. Others

Loan 3210 Schedule

5 5 --Counterpart Funds

5. The Borrower shall: (a) ensure sufficient counterpart funds

Complied.

Financials

Annex 6

18

from its budget for each fiscal year, in a

timely manner, for the efficient implementation of the Project; and (b) ensure adequate funds towards

operations and maintenance of Project facilities, through budgetary allocations

or other means, during and after the Project’s completion.

Not yet due.

Loan 3210 Section 4 5 --ADB shall disclose the annual audited

financial statements for the Project and the opinion of the auditors on the

financial statements within 30 days of the date of their receipt by posting them

on ADB’s website.


Loan 3210 Section 2 5 --(a) FRA shall take out and maintain with responsible insurers, or make other

arrangements satisfactory to ADB for, insurance against such risks and in such

amounts as shall be consistent with

sound practice. (b) Without limiting the generality of the

foregoing, FRA undertakes to insure, or cause to be insured, the Goods to be

imported for the Project against hazards

incident to the acquisition, transportation and delivery thereof to

the place of use or installation, and for such insurance any indemnity shall be

payable in a currency freely usable to replace or repair such Goods.

Complied.

Complied.

Economic

Loan 3210 Section 2 6 --FRA shall maintain, or cause to be

maintained, records and accounts adequate to identify the items of

expenditure financed out of the

proceeds of the Loan, to disclose the use thereof in the Project, to record the

progress of the Project and to reflect, in accordance with consistently maintained

sound accounting principles, its

operations and financial condition.


Annex 6

19

Loan 3210 Schedule

5 6 --6. The Borrower shall provide, or cause

the FRA to provide, as necessary, respective counterpart staff, land,

facilities, and funding required for timely

and effective implementation of the Project, including, without limitation, any

funds required (a) to fund operation and maintenance of Project facilities, (b) to

mitigate unforeseen environmental or social impacts, and (c) to meet any

additional costs arising from design

changes, price escalation in construction costs and/or unforeseen circumstances.

The Borrower shall cause the FRA to make the resources thus required

available on an annual basis for each

fiscal year.

Complied. Others

Loan 3210 Section 4 6 --The Borrower shall take all actions

which shall be necessary on its part to enable FRA to perform its obligations

under the Project Agreement, and shall

not take or permit any action which would interfere with the performance of

such obligations.

Complied. Others

Loan 3210 Section 2 7 --(a) ADB and FRA shall cooperate fully to ensure that the purposes of the Loan

will be accomplished. (b) FRA shall promptly inform ADB of any

condition which interferes with, or threatens to interfere with, the progress

of the Project, the performance of its

obligations under this Project Agreement, or the accomplishment of

the purposes of the Loan. (c) ADB and FRA shall from time to time,

at the request of either party, exchange

views through their representatives with regard to any matters relating to the

Project, FRA and the Loan.

Complied.

Complied.

Complied.

Others


7 --Resources

Not Complied. A fully staffed project supervision team has not been in place

Others

Annex 6

20

7. The Borrower shall ensure that FRA

shall be provided with adequate staff, resources, and facilities to implement

the Project.

since the ADB loan was declared effective

on 25 March 2015.

Loan 3210 Section 4 7 --(a) The Borrower shall exercise its rights under the Financing Arrangement

in such a manner as to protect the interests of the Borrower and ADB and

to accomplish the purposes of the Loan. (b) No rights or obligations under the Financing Arrangement shall be

assigned, amended, abrogated or waived without the prior concurrence of

ADB.

Complied.

Complied.

Economic

Loan 3210 Section 2 8 --(a) FRA shall furnish to ADB all such reports and information as ADB shall

reasonably request concerning (i) the Loan and the expenditure of the

proceeds thereof; (ii) the items of

expenditure financed out of such proceeds; (iii) the Project; (iv) the

administration, operations and financial condition of FRA; and (v) any other

matters relating to the purposes of the

Loan. (b) Without limiting the generality of the

foregoing, FRA shall furnish to ADB periodic reports on the execution of the

Project and on the operation and management of the Project facilities.

Such reports shall be submitted in such

form and in such detail and within such a period as ADB shall reasonably

request, and shall indicate, among other things, progress made and problems

encountered during the period under

review, steps taken or proposed to be taken to remedy these problems, and

proposed program of activities and expected progress during the following

Complied.

Complied.

Others

Annex 6

21

period. (c) Promptly after physical completion of the Project, but in any event not later

than 3 months thereafter or such later

date as ADB may agree for this purpose, FRA shall prepare and furnish to ADB a

report, in such form and in such detail as ADB shall reasonably request, on the

execution and initial operation of the Project, including its cost, the

performance by FRA of its obligations

under this Project Agreement and the accomplishment of the purposes of the

Loan.

Not yet due.


8 --Selection Criteria and Approval Process for Subprojects 8. Feasibility studies prepared for proposed Subprojects shall be endorsed

by the EA prior to submission to ADB for approval. The Borrower shall periodically

submit for ADB’s approval a list of roads,

bridges and/or rural jetties it wishes to propose for Subprojects. The list shall be

accompanied by an endorsed feasibility study for each proposed Subproject. The

Borrower shall ensure that the feasibility

studies are prepared with sufficient detail for ADB to assess whether the

proposed Subprojects meet the criteria set forth in the PAM, and are otherwise

suitable and viable.

Complied

Others


9 --9. The Borrower shall ensure that all documents forming the basis for

screening, selection and processing of Subprojects are made available to ADB

upon request and are kept available for

such purposes for a minimum period of five years from the date of the project

completion report for the Project.

Complied. Others

Annex 6

22

Loan 3210 Section 2 9 --(a) FRA shall (i) maintain separate

accounts and records for the Project; (ii) prepare annual financial statements for

the Project in accordance with

accounting principles acceptable to ADB; (iii) have such financial statements for

the Project audited annually by independent auditors whose

qualifications, experience and terms of reference are acceptable to ADB, in

accordance with international standards

for auditing or the national equivalent acceptable to ADB; (iv) as part of each

such audit, have the auditors prepare a report (which includes the auditors’

opinion on the financial statements, use

of the Loan proceeds and compliance with the financial covenants of the Loan

Agreement) and a management letter (which sets out the deficiencies in the

internal control of the Project that were identified in the course of the audit, if

any); and (v) furnish to ADB, no later

than 6 months after the close of the fiscal year to which they relate, copies of

such audited financial statements, audit report and management letter, all in the

English language, and such other

information concerning these documents and the audit thereof as ADB shall from

time to time reasonably request. (b) ADB shall disclose the annual audited

financial statements for the Project and the opinion of the auditors on the

financial statements within 30 days of

the date of their receipt by posting them on ADB’s website. (c) In addition to annual audited financial statements referred to in

Complied. Not yet due.

Not yet due.

Complied.

Financials

Annex 6

23

subsection (a) hereinabove, FRA shall (i)

provide its annual financial statements prepared in accordance with national

accrual-based financing reporting

standards acceptable to ADB; (ii) have its financial statements audited annually

by independent auditors whose qualifications, experience and terms of

reference are acceptable to ADB, in accordance with international standards

for auditing or the national equivalent

acceptable to ADB; and (iii) furnish to ADB, no later than 1 month after

approval by the relevant authority, copies of such audited financial

statements in the English language and

such other information concerning these documents and the audit thereof as ADB

shall from time to time reasonably request. (d) FRA shall enable ADB, upon ADB's request, to discuss FRA’s financial

statements and its financial affairs where

they relate to the Project with the auditors appointed by FRA pursuant to

subsections (a)(iii) and (c) hereinabove, and shall authorize and require any

representative of such auditors to

participate in any such discussions requested by ADB. This is provided that

such discussions shall be conducted only in the presence of an authorized officer

of FRA, unless FRA shall otherwise agree.

Loan 3210 Section 2 10 --FRA shall enable ADB's representatives

to inspect the Project, the Goods and any relevant records and documents.

Complied. Others

Loan 3210 Schedule

5 10 --Project Website

10. Within 12 months after the Effective

Not complied. Others

Annex 6

24

Date, the Borrower shall ensure, or

cause the FRA to ensure, that a Project website is created to disclose

information about various matters in

regards to the Project, including procurement. With regard to

procurement, the website shall disclose the following information in relation to

goods and services procured for the Project: (a) the list of participating

bidders; (b) the name of the winning

bidder; (c) basic details on bidding procedures adopted; (d) the amount of

contract awarded; and (e) the list of goods/services procured. The Project

website need not be separate from an

existing website of the FRA, as long as it is comprehensive and easily accessible

by the public. Loan 3210 Schedule

5 11 --Grievance Redress Mechanism

11. Within 12 months after the Effective

Date, the Borrower shall ensure that FRA prepare a grievance redress mechanism,

acceptable to ADB, and establish a special committee to receive and resolve

complaints/grievances or act upon

reports from stakeholders on misuse of funds and other irregularities, including

grievances due to resettlement. The special committee shall (a) make the

public aware of the existence of this grievance redress mechanism; (b)

receive, review and address

complaints/grievances of stakeholders of the Project, in relation to the Project, any

of the service providers, or any person responsible for carrying out any aspect

of the Project; and (c) proactively and

constructively respond to them.

Not complied. Social

Loan 3210 Section 2 11 -- (a) FRA shall, promptly as required, Complied. Others

Annex 6

25

take all action within its powers to

maintain its corporate existence, to carry on its operations, and to acquire,

maintain and renew all rights,

properties, powers, privileges and franchises which are necessary in the

carrying out of the Project or in the conduct of its operations. (b) FRA shall at all times conduct its operations in accordance with sound

applicable technical, financial, business,

development and operational practices, and under the supervision of competent

and experienced management and personnel. (c) FRA shall at all times operate and

maintain its plants, equipment and other property, and from time to time,

promptly as needed, make all necessary repairs and renewals thereof, all in

accordance with sound applicable technical, financial, business,

development, operational and

maintenance practices.

Complied. Complied.

Loan 3210 Section 2 12 --Except as ADB may otherwise agree,

FRA shall not sell, lease or otherwise

dispose of any of its assets which shall be required for the efficient carrying on

of its operations or the disposal of which may prejudice its ability to perform

satisfactorily any of its obligations under this Project Agreement.

Complied. Economic

Loan 3210 Schedule

5 12 --Environment

12. The Borrower shall ensure that the preparation, design, construction,

implementation, operation and

decommissioning of each Subproject, and all Project facilities comply with (a)

all applicable laws and regulations of the Borrower relating to environment,

Complied. Safeguards

Annex 6

26

health, and safety; (b) the

Environmental Safeguards; (c) the ESMF; and (d) all measures and

requirements set forth in the EIA and

EMP, and any corrective or preventative actions set forth in a Safeguards

Monitoring Report. Loan 3210 Section 2 13 --Except as ADB may otherwise agree,

FRA shall apply the proceeds of the Loan

to the financing of expenditures on the Project in accordance with the provisions

of the Loan Agreement and this Project Agreement, and shall ensure that all

items of expenditures financed out of

such proceeds are used exclusively in the carrying out of the Project.



13 --Land Acquisition and Involuntary Resettlement 13. The Borrower shall ensure that FRA

make all land and all rights-of-way required for each Subproject available to

the Works contractor in accordance with the schedule agreed under the related

Works contract, and all land acquisition

and resettlement activities are implemented in compliance with (a) all

applicable laws and regulations of the Borrower relating to land acquisition and

involuntary resettlement; (b) the Involuntary Resettlement Safeguards;

(c) the LARF; and (d) all measures and

requirements set forth in the relevant LARP, and any corrective or preventative

actions set forth in a Safeguards Monitoring Report.


Loan 3210 Schedule

5 14 --Safeguards Monitoring Report.

14. Without limiting the application of the Involuntary Resettlement

Safeguards, the LARF or the relevant

Complied. Complied.

Safeguards

Annex 6

27

LARP, the Borrower shall ensure, or

cause the FRA to ensure, that no physical or economic displacement takes

place in connection with the Subprojects

until: (a) compensation and other entitlements

have been provided to affected people in accordance with the relevant LARP; and (b) a comprehensive income and livelihood restoration program has been

established in accordance with the

relevant LARP. Loan 3210 Section 2 14 --Except as ADB may otherwise agree,

FRA shall duly perform all its obligations

under the Financing Arrangement, and shall not take, or concur in, any action

which would have the effect of assigning, amending, abrogating or

waiving any rights or obligations of the parties under the Financing

Arrangement.



15 --Indigenous Peoples 15. The Borrower shall ensure that the

Project does not have any impact on

indigenous peoples within the meaning of the SPS. In the event that the Project

does have any such impact, the Borrower shall ensure, or cause the FRA

to ensure, that the preparation, design, construction, implementation and

operation of the relevant Subprojects

comply with (a) all applicable laws and regulations of the Borrower relating to

indigenous peoples; (b) the Indigenous Peoples Safeguards; and (c) any

corrective or preventative actions set

forth in a Safeguards Monitoring Report.


Loan 3210 Section 2 15 --FRA shall promptly notify ADB of any Complied. Others

Annex 6

28

proposal to amend, suspend or repeal

any provision of its constitutional documents, which, if implemented,

could adversely affect the carrying out of

the Project or the operation of the Project facilities. FRA shall afford ADB an

adequate opportunity to comment on such proposal prior to taking any

affirmative action thereon. Loan 3210 Schedule

5 16 --Human and Financial Resources to

Implement Safeguards Requirements 16. The Borrower shall make available, or cause the FRA to make available, all

necessary budgetary and human

resources to fully implement the EMP and the LARP as required.

Complied. Others


17 --Safeguards-Related Provisions in Bidding Documents and Works Contracts 17. The Borrower shall ensure, or cause

the FRA to ensure, that all bidding documents and contracts for Works

contain provisions that require contractors to: (a) comply with the measures and

requirements relevant to the contractor set forth in the relevant EIA, EMP, LARP,

any conditions attached to the approval issued by the Department of

Environment of the Borrower, and any corrective or preventative actions set

forth in a Safeguards Monitoring Report; (b) make available a budget for all such environmental and social measures; (c) provide the EA with a written notice of any unanticipated environmental,

resettlement or indigenous peoples risks

or impacts that arise during construction, implementation or

operation of the Project that were not

Complied Complied. Complied. Complied. Complied.

Safeguards

Annex 6

29

considered in the relevant EIA, EMP, or

LARP; (d) adequately record the condition of

roads, agricultural land the other

infrastructure prior to starting to transport materials and construction;

and (e) fully reinstate pathways, other local

infrastructure, and agricultural land to at least their pre-project condition upon the

completion of construction. Loan 3210 Schedule

5 18 --Safeguards Monitoring and Reporting

18. The Borrower shall do, or cause the

FRA to do, the following: (a) submit semi-annual Safeguards Monitoring Reports to ADB, and disclose

relevant information from such reports to affected persons promptly upon submission; (b) if any unanticipated environmental

and/or social risks and impacts arise

during construction, implementation or operation of the Project that were not

considered in the relevant EIA, EMP, or LARP, as applicable, promptly inform

ADB of the occurrence of such risks or

impacts, with detailed description of the event and proposed corrective action

plan; and (c) report any breach of compliance with

the measures and requirements set forth in the relevant EIA, EMP, or LARP

promptly after becoming aware of the

breach.

Complied. Complied. Complied.

Safeguards

Loan 3210 Schedule

5 19 --Prohibited List of Investments

19. The Borrower shall ensure, or cause

the FRA to ensure, that no proceeds of the Loan under the Project are used to

finance any activity included in the list of

Complied. Economic

Annex 6

30

prohibited investment activities provided

in Appendix 5 of the SPS. Loan 3210 Schedule

5 20 --Gender

20. The Borrower shall ensure that (a)

the GAP is implemented in accordance with its terms; (b) the bidding

documents and contracts include relevant provisions for contractors to

comply with the measures set forth in

the GAP; (c) adequate resources are allocated for implementation of the GAP;

and (d) progress on implementation of the GAP, including progress toward

achieving key gender outcome and

output targets, are regularly monitored and reported to ADB.

Complied. Social


21 --Other Social Measures 21. The FRA shall ensure that all civil

works contracts under the Project follow

all applicable labor laws of the Borrower, and that these further include provisions

to the effect that contractors: (a) carry out HIV/AIDS awareness programs for

labor and disseminate information at

worksites on risks of sexually transmitted diseases and HIV/AIDS as

part of health and safety measures for those employed during construction;

and (b) follow and implement all statutory provisions on labor (including

not employing or using children as labor,

and equal pay for equal work), health, safety, welfare, sanitation, and working

conditions. Such contracts shall also include clauses for termination in case of

any breach of the stated provisions by

the contractors.

Complied. Social

Loan 3210 Schedule

5 22 --Procurement

Complied. Others

Annex 6

31

22. The EA and the FRA shall ensure that

the anticorruption provisions acceptable to ADB and the Borrower are included in

all bidding documents and contracts

financed by ADB in connection with the Project, including provisions specifying

the right of ADB to review and examine the records and accounts of the EA, the

FRA, and all contractors, suppliers, consultants, and other service providers

as they relate to the projects. The

Borrower and the FRA shall allow and assist ADB’s representatives to carry out

random spot checks on the work in progress and utilization of funds for the

Project. Loan 3210 Schedule

5 23 --Reform Measure

23. By June 2015, the Borrower shall

have endorsed the updated National Transport Investment Plan and the

updated Land Transport Policy and

Maritime Transport Policy.

Partly complied. Others

Loan 3210 Schedule

5 24 --Governance and Anticorruption

24. The Borrower and the FRA shall (a)

comply with ADB’s Anticorruption Policy (1998, as amended to date) and

acknowledge that ADB reserves the right to investigate directly or through its

agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to

the Project; and (b) cooperate with any

such investigation and extend all necessary assistance for satisfactory

completion of such investigation, and as included in detail in the PAM.

Complied. Economic

Loan 3210 Schedule

5 25 --25. The Borrower and the FRA shall (a)

ensure that the anticorruption provisions acceptable to ADB and the Borrower are

included in all bidding documents and

Complied. Others

Annex 6

32

contracts financed by ADB in connection

with the Project, including provisions specifying the right of ADB to review and

examine the records and accounts of the

FRA, and all contractors, suppliers, consultants, and other service providers

as they relate to the Project and as included in detail in the PAM, and (b)

allow and assist ADB’s representatives to carry out random spot checks on the

work in progress and utilization of funds

for the Project. Loan 3210 Schedule

5 26 --Operation and Maintenance

26. The Borrower shall allocate and

make available, on a timely basis, sufficient funds for the operation and

maintenance of the Project facilities, and shall ensure that the Project facilities are

adequately maintained in accordance with the applicable standards and best

international practices.

Not yet due. Economic


27 --Review 27. (a) ADB, the Borrower, and the FRA

shall meet regularly as required to

discuss the progress of the Project and any changes in the implementation

arrangements or remedial measure required to be taken to achieve the

objectives of the Project. (b) ADB, the Borrower, and the FRA shall

undertake a mid-term review of the

Project, around 2 years from the Effective Date, which shall include

review of issues and any problems and/or weaknesses in implementation

arrangements and shall agree on any

changes needed to achieve the objectives of the Project.

Complied. Not yet due.

Others

Annex 6

33

Loan Agreement

8482-FJ

Article 5 Para

5.01(a)

The Subsidiary Agreement has been

executed on behalf of the Borrower and the Project Implementing Entity.

Complied. Legal

Loan Agreement

8482-FJ

Article 5 Para

5.01(b)

The Co-financing Agreement has been

executed and delivered and all conditions precedent to its effectiveness

or to the right of the Borrower to make withdrawals under it (other than the

effectiveness of this Agreement) have

been fulfilled.

Complied. Legal

Loan Agreement

8482-FJ

Article 5 Para

5.01(c)

The Project Administration Manual has

been prepared and adopted in

accordance with Section I.A.2 of the Schedule to the Project Agreement.

Complied. Other

Loan Agreement 8482-FJ

Article 5 Para 5.02 The Additional Legal Matter consists of the following, namely that the Subsidiary

Agreement has been duly authorized or

ratified by the Borrower and the Project Implementing Entity and is legally

binding upon the Borrower and the Project Implementing Entity in

accordance with its terms.

Complied. Legal


Schedule 2

Section I.E.1

The Borrower shall ensure that the Project is carried out in accordance with

the provisions of the Safeguard Instruments and the Additional Plans.


Loan Agreement

8482-FJ

Schedule

2

Section

II.A.1

The Borrower shall cause the Project

Implementing Entity to monitor and evaluate the progress of the Project and

prepare Project Reports in accordance

with the provisions of Section 5.08 of the General Conditions and on the basis of

indicators acceptable to the Bank and set forth in the PAM.

Complied. Implementation

Loan Agreement

8482-FJ

Schedule

2

Section

II.A.2


Implementing Entity to: (a) not later than July 31, 2017 (or such other date

as the Bank may agree), prepare and furnish to the Bank a mid-term report.

Not yet due. Implementation

Loan Agreement

8482-FJ

Schedule

2

Section

II.B.2


Implementing Entity to prepare and

Ongoing. Implementation

Annex 6

34

furnish to the Bank, not later than forty

five (45) days after the end of each calendar semester, interim unaudited

financial reports for the Project covering

the semester, in form and substance satisfactory to the Bank.


Schedule 2

Section II.B.3

The Borrower shall cause the Project Implementing Entity to have the

financial statements for the Project

audited. Each audit of the financial statements shall cover the period of one

fiscal year of the Project Implementing Entity. The audited financial statements

for each such period shall be furnished

to the Bank not later than six months after the end of such period.

Ongoing. Implementation

Project Agreement

8482-FJ

Section I.A.1

the Project Implementing Entity shall establish, by not later than four months

after the Effective Date, and thereafter

maintain throughout the Project implementation period, a Project

Supervision Team, with mandate and staff in adequate numbers all with

qualifications and experience

satisfactory to the Bank, such staff to include a Project manager/procurement

specialist, an accountant, an environmental specialist and a social

development specialist.

Partially complied. Implementation

Project Agreement

8482-FJ

Section I.A.2(a)

The Project Implementing Entity shall prepare and thereafter adopt a Project

Administration Manual (“PAM”), in form and substance satisfactory to the Bank.


Project

Agreement 8482-FJ

Section

I.A.2(b)

The Project Implementing Entity shall

carry out the Project in accordance with the Project Administration Manual

(“PAM”) as shall be so adopted.


Project Agreement

8482-FJ

Section I.A.2(c)

The Project Implementing Entity shall not amend, abrogate or waive any

provision of the PAM unless the Bank has provided its prior no-objection thereof in


Annex 6

35

writing.

Project

Agreement 8482-FJ

Section

I.D

By not later than 12 months after the

Effective Date, the Project Implementing Entity shall create a Project website on

which information about various matters in regards to the Project shall be

disclosed, including information about the status of contract implementation.

The Project website need not be

separate from an existing website of the Project Implementing Entity, as long as

it is comprehensive and easily accessible by the public.

Not yet due. Implementation