asian development bank - outer island maritime ......adb = asian development bank; mof = ministry of...

Project Number: 48484-005 Grant Number: GXXXX November 2020

Tuvalu: Outer Island Maritime Infrastructure Project –

Second Additional Financing

Project Administration Manual

ABBREVIATIONS

ADB – Asian Development Bank CEMP – construction environmental management plan CPU – Central Procurement Unit CSC – construction supervision consultant EMP – environmental management plan GAP – gender action plan GEF – global environmental facility IEE – initial environmental examination MOF – Ministry of Finance MPWIELMD – Ministry of Public Works, Infrastructure, Environment,

Labor, Meteorology and Disaster MTET – Ministry of Transport, Energy and Tourism O&M – operation and maintenance OAG – Office of the Auditor General PAM – project administration manual PDA – project design advance PMU – project management unit SPS – Safeguard Policy Statement 2009

CONTENTS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 1

A. Project Readiness Activities 1

B. Overall Project Implementation Plan 2

III. PROJECT MANAGEMENT ARRANGEMENTS 3

A. Project Implementation Organizations: Roles and Responsibilities 3

B. Key Persons Involved in Implementation 4

C. Project Organization Structure 5

IV. COSTS AND FINANCING 5

A. Cost Estimates Preparation and Revisions 5

B. Key Assumptions 6

E. Detailed Cost Estimates by Financier 8

F. Detailed Cost Estimates by Outputs 10

G. Detailed Cost Estimates by Year 12

H. Contract and Disbursement S-Curve 13

I. Fund Flow Diagram 14

V. FINANCIAL MANAGEMENT 14

A. Financial Management Assessment 14

B. Status of Issues under Action Plans in FMA of 2016 and update in 2018 17

C. Disbursement 18

D. Accounting 19

E. Auditing and Public Disclosure 19

VI. PROCUREMENT AND CONSULTING SERVICES 20

A. Advance Contracting and Retroactive Financing 20

B. Procurement of Goods, Works, and Consulting Services 20

C. Procurement Plan 21

D. Consultant's Terms of Reference 23

VII. SAFEGUARDS 23

VIII. GENDER AND SOCIAL DIMENSIONS 25

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 29

A. Project Design and Monitoring Framework 29

B. Monitoring 31

C. Evaluation 31

D. Reporting 31

E. Stakeholder Communication Strategy 32

X. ANTICORRUPTION POLICY 35

XI. ACCOUNTABILITY MECHANISM 35

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 36

XIII. ATTACHMENTS 37

Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

2. The Ministry of Finance (MOF) and Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and Disaster (MPWIELMD) are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by MOF and MPWIELMD of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

3. At grant negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the grant agreement. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the grant agreement, the provisions of the grant agreement shall prevail.

4. After ADB Board approval of the project's report and recommendations of the President (RRP),

changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM.

I. PROJECT DESCRIPTION 1. Tuvalu is one of the smallest and most remote ADB member countries. Its challenges in transport and economic development come from its dispersed geography. The second additional financing project (the Project) will help Tuvalu overcome connectivity constraints among the capital and the outer island of Nui and promote economic and social development that is more inclusive and sustainable. 2. The proposed Project will scale up and extend the socioeconomic benefits of the current project by constructing a small workboat harbor in Nui. The Project is consistent with the project rationale, will extend socioeconomic benefits to the outer island of Nui, and is included in the country operations business plan, 2020–2022 of the Asian Development Bank (ADB) for the 11 small Pacific island countries.1 3. The impact of the overall project will remain unchanged: Safe and efficient domestic maritime transportation that helps increase climate resilience of community infrastructure. The outcome will be improved maritime transfer operations in Nanumaga, Nui, Niutao, and Nukulaelae, anchored on a transport master plan, with a view to promoting fisheries and tourism. The output of the proposed additional financing will be maritime infrastructure constructed in Nui.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 1: Project Readiness Activities

Indicative Activities

2020 2021

Responsible Individual/Unit/

Agency/ Government Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Advance contracting actions

Recruitment of construction supervision consulting firm

MPWIELMD, ADB

Completion of detailed design for civil works

Detailed design consultants

Procurement of civil works contract

MPWIELMD, ADB

ADB Board approval ADB

Grant signing MOF, ADB

Government legal opinion provided

Office of the Attorney-General

Grant effectiveness ADB

ADB = Asian Development Bank; MOF = Ministry of Finance; MPWIELMD = Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and Disaster. Source: Asian Development Bank.

1 ADB. 2019. Country Operations Business Plan: 11 Small Pacific Island Countries, 2020–2022. Manila.

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B. Overall Project Implementation Plan

Table 2: Overall Project Implementation Plan

Activities 2020 2021 2022 2023 2024 2025

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

A. DMF Output 1: Small-scale harbors constructed in Nui, Niutao and Nukulaelae, and boat ramps in Nanumaga and Niutao rehabilitated

Procurement of civil works contract Civil works contract awarded Preparation and mobilization Civil works

B. Management Activities 1. Consulting services

1.1. Recruitment of supervision consultant 1.2. Supervision consultancy 1.3. Consultant selection of PMU staff 1.4. Operation of PMU

2. Environment management plan key activities 2.1. Application of development consent 2.2. Review and supervision of implementation of the CEMP 2.3. Submission to ADB of SMR

3. Gender action plan key activities 3.1. Implementation of the gender policy and GAP

4. Communication strategy key activities 4.1. Implement stakeholder and engagement plan

5. Annual and midterm review MR 6. Submission to ADB of APFS 7. Project completion report

APFS = audit project financial statements, CEMP = contractor environmental management plan, DMF = design and monitoring framework, GAP = gender action plan, MR = midterm review, PMU = project management unit, SMR = safeguards monitoring report. Source: Asian Development Bank.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 3: Roles and Responsibilities of Project Implementation Organizations

Project Implementation Organizations Management Roles and Responsibilities

Executing agency: Ministry of Financea

The representative of the government as a grant recipient. - Facilitate negotiation, signing, and execution of the project

financing agreement - Through the Central Procurement Unit, lead the project’s

procurement actions in coordination with MPWIELMD - Submit withdrawal applications to ADB - Expedite implementation and minimize cost by:

• ensure necessary counterpart funds are available timely • review invoices and payments to contractors, consultants, and

other service providers • monitor project progress and instruct MPWIELMD to take

corrective actions to prevent significant variations and deviations from schedules and budgets

National Infrastructure Steering Committee

- Provide policy guidance on project implementation and management.

- Make important decisions on project implementation such as determining of project scope, procurement (selection of a civil work contractor) and consultant selection decisions and seek approval of Cabinet as necessary according the relevant acts.

- Oversees project management, monitoring progress of project preparation and implementation and suggest remedial actions when any indication of delay is identified.

Implementing agency: Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and Disasterb

- Focal point for communication with ADB on project related matters. - Ensure that PMU is fully staffed and functional during the entire

period of implementation - Supervise PMU through Project Director. - Review consultant reports and ensure the outputs are suitable to

the project objectives and the government policies and regulations. - Administer all consultant and works contracts (instructing the

supervision consultant, approving variations, suspending, and terminating contracts)

- Ensure compliance with grant covenants, ADB’s guidelines, procedures, and policies

PMU - Assist MPWIELMD in project management - Monitor and evaluate project activities and outputs and report the

findings to MPWIELMD by monthly progress reports. - Review and verify documents submitted by CSC - Review CSC invoices and advise MPWIELMD of its findings. - Coordinate with CSC - Provide day-to-day support to the CSC. - Lead project implementation activities aiming at timely of works. - Conduct monitoring and reporting as required by the safeguards

due diligence and other project requirements including the gender action plan

- Facilitate communication with the local stakeholders - Consult with the public and disclose project information with ADB

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Project Implementation Organizations Management Roles and Responsibilities

- Establish and maintain the project accounts. - Coordinate with the Office of Auditor General to have the project

account audited annually. - Operate and maintain PMU office.

Ministry of Transport, Energy and Tourism

- As the main user of the project facilities, provide inputs to the project scope and facility designs.

- Provide technical advice on the project scope, facility designs, procurement or others.

ADB - Provide guidance in implementation issues and project design. - Monitor and review overall project implementation. - Conduct periodic review of the project - Disburse project funds.

ADB = Asian Development Bank; CSC = construction supervision consultancy; MOF = Ministry of Finance; MPWIELMD = Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and Disaster; PMU = project management unit a Previously MFED (Ministry of Finance and Economic Development). b Under the original and first additional financing, the executing and implementing agencies was the Ministry of Communication and Transport (MCT), now known as the Ministry of Transport, Energy and Tourism (MTET). Sources: Asian Development Bank and Government of Tuvalu.

B. Key Persons Involved in Implementation

Executing Agencies Ministry of Finance

Faiva Lee Moresi Chief Executive Officer Tel.:+688-20202 Email: [email protected] Vaiaku, Funafuti

Asian Development Bank Transport and Communications Division

Dong-Kyu Lee Director Tel.: +63 2 632-4444 Email: [email protected]

Team Leader Juan Gonzalez Transport Specialist Tel.: +63 2 632-4444 Email: [email protected]

mailto:[email protected]



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C. Project Organization Structure

IV. COSTS AND FINANCING

4. The Project is estimated to cost $22.00 million, including taxes and duties, and contingencies. Detailed cost estimates by expenditure category and by financier are included in the tables below. The civil works for the port upgrade represent the major expenditure under the project. ADB will finance $20.0 million from ADB’s Special Funds resources (Asian Development Fund grant). A. Cost Estimates Preparation and Revisions

5. Construction cost estimates were prepared by the consultant engaged under the original Project. The consultant utilized cost information from its own databank, using specialized cost estimators and using as a reference the costs of the civil works contract under the original Project. Taxes and duties and the cost of consultants’ services were prepared using similar values from the ongoing project. The construction cost estimates are preliminary and will be updated on completion of detailed design and prior to invitation of bids. The estimates will be further updated on award of contracts for the project components.

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B. Key Assumptions

6. The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: A$1.00 = $0.72 (as of 9 October 2020) (ii) Price contingencies based on expected cumulative inflation over the

implementation period are as follows:

Table 4: Escalation Rates for Price Contingency Calculation (%)

Item 2020 2021 2022 2023 20254 Average

Foreign rate of price inflation (0.5) 1.6 1.7 1.7 1.8 1.2

Domestic rate of price inflation 3.5 3.5 2.3 2.1 2.0 2.7 ( ) = negative. Source: Asian Development Bank.

C. Detailed Cost Estimates by Expenditure Category

Table 5: Detailed Cost Estimates by Expenditure Category - Current Project

($ million)

Item Total Costa % of Total Base

Cost A. Investment Costs 1. Civil works 21.4 83.4% 2. Consultants 4.0 15.6% a. Construction supervision consultant 3.3 12.8% b. Project management unit 0.7 2.8% Subtotal (A) 25.5 99.0% B. Recurrent costs 1. Land lease (during 3-year project period) and compensation for economic losses

0.3 1.0%

Subtotal (B) 0.3 1.0% Total Base Cost 25.7 100.0% C. Contingencies 1. Physical 1.5 5.9% 2. Price 3.0 11.6% Subtotal (C) 4.5 17.6% Total Project Cost (A+B+C) 30.2 117.6%

Note: Numbers may not sum precisely because of rounding. a Refers to the original financing and first additional financing. Includes taxes and duties of $2.8 million

financed from government resources through exemption. Source: Asian Development Bank.

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Table 6: Detailed Cost Estimates by Expenditure Category - Additional Financing ($ million)

Item Total Costa % of Total Base Cost

A. Investment Costs 1. Civil works 15.2 81.7% 2. Consultants 3.3 17.5% a. Construction supervision and domestic connectivity 2.8 14.8% b. Project management unit 0.5 2.7% Subtotal (A) 18.5 99.2% B. Recurrent costs 1. Land lease (during 3-year project period) and compensation for economic losses

0.2 0.8%

Subtotal (B) 0.2 0.8% Total Base Costb 18.6 100.0% C. Contingenciesc 1. Physical 2.6 13.9% 2. Price 0.9 5.0% Subtotal (C) 3.5 18.8% Total Project Cost (A+B+C) 22.2 118.8%

Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of $2.0 million to be financed from government resources through exemption. b In mid-2020 prices as of June 2020. c The current amount is based on actual costs. For additional financing, physical contingencies computed

at 7% for civil works and 7% for consulting services. Price contingencies computed at 4% on foreign exchange costs and 5% on local currency costs under the assumption of a purchasing power parity exchange rate.

Source: Asian Development Bank.

D. Allocation and Withdrawal of Grant Proceeds

7. Except as ADB may otherwise agree, each item of expenditure will be financed from the proceeds of the grant on the basis of the percentages set forth in the table below.

Table 7: Allocation and Withdrawal of Grant Proceeds

Category ADB Financing

No Item ADB Financing

($) Percentage and Basis for Withdrawal

from the Grant Account 1 Works and Consulting Services 20,000,000 100% of total expenditure claimed*

Total 20,000,000 ADB = Asian Development Bank. * Exclusive of taxes, duties, and custom clearance fees within the territory of the Recipient.

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E. Detailed Cost Estimates by Financier

Table 8: Detailed Cost Estimates by Financier - Current Projecta ($ million)

Item ADB GEF Government Total Cost

Amount % of Cost Category



Amount Taxes and

Duties

A. Investment Costs

1. Civil works 18.8 87.6% 0.5 2.3% 2.2 10.1% 21.4 2.2

2. Consultants 3.7 90.9% 0.0 0.0% 0.4 9.1% 4.0 0.4

a. Construction supervision and domestic connectivity

3.0 90.9% 0.0 0.0% 0.3 9.1%

3.3 0.3

b. Project management unit 0.7 90.9% 0.0 0.0% 0.1 9.1% 0.7 0.1

Subtotal (A) 22.4 88.1% 0.5 2.0% 0.0 0.0% 25.5 2.5

B. Recurrent costs

1. Land lease (during 3-year project period) and compensation for economic losses

0.0 0.0% 0.0 0.0% 0.3 100.0%

0.3 0.0

Subtotal (B) 0.0 0.0 0.0 0.0 0.3 100.0% 0.3 0.0

Total Base Cost 22.4 87.2% 0.5 0.0 0.3 1.0% 25.7 2.5

Contingencies

1. Physical 1.4 89.8% 0.0 0.0% 0.2 10.2% 1.5 0.2

2. Price 2.9 97.0% 0.0 0.0% 0.1 3.0% 3.0 0.1

Subtotal (B) 4.3 94.6% 0.0 0.0% 0.2 5.4% 4.5 0.2

Total Project Cost (A+B) 26.7 88.3% 0.5 1.7% 0.5 1.6% 30.2 2.8

ADB = Asian Development Bank, GEF = global environmental facility. Note: Numbers may not sum precisely because of rounding. a Refers to the original financing and first additional financing. Includes taxes and duties of $2.8 million financed from government resources through

exemption. Source: Asian Development Bank.

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Table 9: Detailed Cost Estimates by Financier - Additional Financing ($ million)

Item ADB Government Total Cost



Amount Taxes and

Duties

A. Investment Costsa

1. Civil works 13.9 90.9% 1.4 9.1% 15.2 1.39

2. Consultants 3.0 90.9% 0.3 9.1% 3.3 0.30

a. Construction supervision and domestic connectivity

2.5 90.9% 0.3 9.1%

2.8 0.25

b. Project management unit 0.5 90.9% 0.0 9.1% 0.5 0.05

Subtotal (A) 16.8 90.9% 1.7 9.1% 18.5 1.68

B. Recurrent costs


0.0 0.0% 0.2 100.0%

0.2 0.00

Subtotal (B) 0.0 0.0 0.2 100.0% 0.2 0.00

Total Base Cost 16.8 90.2% 1.8 9.8% 18.6 1.68

Contingenciesb

1. Physical 2.3 90.9% 0.2 9.1% 2.6 0.23

2. Price 0.8 90.9% 0.1 9.1% 0.9 0.08

Subtotal (B) 3.2 90.9% 0.3 9.1% 3.5 0.32

Total Project Cost (A+B) 20.0 90.3% 2.2 9.7% 22.2 2.00

ADB = Asian Development Bank. Note: Numbers may not sum precisely because of rounding. a In mid-2020 prices as of June 2020. b The current amount is based on actual costs. For additional financing, physical contingencies computed at 7% for civil works and 7% for consulting services. Price contingencies computed at 4% on foreign exchange costs and 5% on local currency costs under the assumption of a purchasing power parity exchange rate.


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F. Detailed Cost Estimates by Outputs

Table 10: Detailed Cost Estimates by Outputs - Current Projecta ($ million)

Item Total Cost

Output 1 Output 2 Output 3




A. Investment Costs

1. Civil works 21.4 21.4 100.0% 0.0 0.0% 0.0 0.0%

2. Consulting services 4.0 2.7 67.8% 0.5 12.9% 0.8 19.3%

a. Construction supervision consultant 3.3 2.2 66.7% 0.4 13.3% 0.7 20.0%

b. Project management unit 0.7 0.5 72.8% 0.1 10.9% 0.1 16.3%

Subtotal (A) 25.4 24.1 94.9% 0.5 2.0% 0.8 3.1%

B. Recurrent costs


0.3 0.3 100.0% 0.0 0.0% 0.0 0.0%

Subtotal (B) 0.3 0.3 100.0% 0.0 0.0% 0.0 0.0%

Total Base Cost 25.7 24.4 95.0% 0.5 2.0% 0.8 3.0%

Contingencies

1. Physical 1.6 1.4 85.7% 0.1 5.7% 0.1 8.6%

2. Price 3.1 2.5 78.1% 0.3 8.7% 0.4 13.1%

Subtotal (B) 4.7 3.8 80.7% 0.4 7.7% 0.5 11.6%

Total Project Cost (A+B) 30.2 27.9 92.7% 0.9 2.9% 1.3 4.4%

Note: Numbers may not sum precisely because of rounding. a Refers to the original financing and first additional financing. Includes taxes and duties of $2.8 million financed from government resources through

exemption. Source: Asian Development Bank.

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Table 11: Detailed Cost Estimates by Outputs - Additional Financing ($ million)

Item Output 1

Amounta % of Cost Category

A. Investment Costsb

1. Civil works 15.2 100.0%

2. Consulting services 3.3 100.0%

a. Construction supervision consultant 2.8 100.0%

b. Project management unit 0.5 100.0%

Subtotal (A) 18.5 100.0%

B. Recurrent costs


0.2 100.0%

Subtotal (B) 0.2 100.0%

Total Base Cost 18.6 100.0%

Contingenciesc

1. Physical 2.6 100.0%

2. Price 0.9 100.0%

Subtotal (B) 3.5 100.0%

Total Project Cost (A+B) 22.2 100.0%

Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of $2.0 million to be financed from government resources through exemption. b In mid-2020 prices as of June 2020. c The current amount is based on actual costs. For additional financing, physical contingencies computed at

7% for civil works and 7% for consulting services. Price contingencies computed at 4% on foreign exchange costs and 5% on local currency costs under the assumption of a purchasing power parity exchange rate.


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G. Detailed Cost Estimates by Year

Table 12: Detailed Cost Estimates by Year - Additional Financing ($ million)

Item Total Costa 2021 2022 2023 2024 2025

A. Investment Costsb

1. Civil works 15.2 1.52 3.81 3.81 3.81 2.29

2. Consulting services 3.3 0.33 0.81 0.81 0.81 0.49

a. Construction supervision consultant 2.8 0.28 0.69 0.69 0.69 0.41

b. Project management unit 0.5 0.05 0.13 0.13 0.13 0.08

Subtotal (A) 18.5 1.85 4.62 4.62 4.62 2.77

B. Recurrent costs


0.2 0.02 0.04 0.04 0.04 0.02

Subtotal (B) 0.2 0.02 0.04 0.04 0.04 0.02

Total Base Cost 18.6 1.86 4.66 4.66 4.66 2.80

Contingenciesc

1. Physical 2.6 0.26 0.65 0.65 0.65 0.39

2. Price 0.9 0.09 0.23 0.23 0.23 0.14

Subtotal (B) 3.5 0.35 0.88 0.88 0.88 0.53

Total Project Cost (A+B) 22.2 2.22 5.54 5.54 5.54 3.32

% Total Project Cost 100.0% 10.0% 25.0% 25.0% 25.0% 15.0%

Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of $2.0 million to be financed from government resources through exemption. b In mid-2020 prices as of June 2020. c The current amount is based on actual costs. For additional financing, physical contingencies computed at 7% for civil works and 7% for consulting

services. Price contingencies computed at 4% on foreign exchange costs and 5% on local currency costs under the assumption of a purchasing power parity exchange rate.


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H. Contract and Disbursement S-Curve

8. The following tables show contract awards and disbursement for the allocated amounts over the life of the additional financing project, and annually based on the contract awards and disbursement projections.

Table 13: Contract Awards Projections ($ million)

Note: Numbers may not sum precisely because of rounding.

Table 14: Disbursement Projections

($ million)

Note: Numbers may not sum precisely because of rounding

Figure 2: Contract Awards and Disbursement S-Curve ($ million)

Q1 Q2 Q3 Q4 Annual Cumulative

2021 -$ 16.8$ -$ -$ 16.8$ 16.8$

2022 -$ -$ -$ -$ -$ 16.8$

2023 -$ 0.4$ 0.4$ 0.4$ 1.2$ 18.0$

2024 0.4$ 0.4$ 0.4$ 0.4$ 1.6$ 19.6$

2025 0.4$ -$ -$ -$ 0.4$ 20.0$

Q1 Q2 Q3 Q4 Annual Cumulative

2021 -$ -$ 1.6$ 0.8$ 2.4$ 2.4$

2022 0.8$ 0.8$ 0.8$ 0.8$ 3.2$ 5.6$

2023 0.8$ 0.8$ 1.1$ 1.1$ 3.9$ 9.5$

2024 1.1$ 1.8$ 1.8$ 1.8$ 6.4$ 15.9$

2025 2.1$ 2.1$ -$ -$ 4.1$ 20.0$

$-

$5.0

$10.0

$15.0

$20.0

$25.0

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

2021 2022 2023 2024 2025

Mill

ion

Contract Awards Disbursements

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I. Fund Flow Diagram

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

9. ADB conducted an update of the financial management assessment (FMA) in February 2020 for the Proposed Second Additional Financing of the Outer Island Maritime Infrastructure Project (OIMIP), Tuvalu in accordance with ADB‘s Guidelines for the Financial Management and Analysis of Projects2 and the publication Financial Due Diligence: A Methodology Note.3 The updated FMA, which follows the update in April 2018, considered the capacity of the Government of Tuvalu’s MOF as the executing agency and the MPWIELMD as the new implementing agency), and revisited funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. The FMA consisted of: (i) interviews with key staff of MOF and MPWIELMD and with the existing PMU; (ii) evaluating the organizational structure, personnel, accounting policies and procedures, internal and external auditing, financial reporting and budgeting with the assistance of responses to the FMAQ and other documents; (iii) identification of potential risks and mitigation measures. The overall pre-mitigation financial management risk is considered moderate and key findings of the financial management assessment undertaken on MOF and MPWIELMD are as described in Table 15.

2 ADB. 2005. Financial Management and Analysis of Projects. Manila. 3 ADB. 2009. Financial Due Diligence: A Methodology Note. Manila.

https://www.adb.org/documents/financial-management-and-analysis-projects

https://www.adb.org/documents/financial-due-diligence-methodology-note

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Table 15: Financial Management, Internal Control, and Risk Management Assessment

Risk Type

Risk Assessment

Rating Risk Description Mitigation Measures A. Inherent Risk (the susceptibility of the project financial management system to factors arising from the

environment in which it operates, such as country rules and regulations and entity working environment (assuming absence of any counter checks or internal controls)).

1. Country-specific Risks

Substantial 2011 PEFA assessment identified risks associated with segregation of duties, FMIS implementation and regular reconciliations to facilitate good internal control. The 2015 PEFA self-assessment reported progress on addressing identified weaknesses OAG issued disclaimers of opinion for the 2016 and 2017 TWOG statements, mainly due to converting cash basis to accrual basis.

All payments are initiated and approved by the Line Ministries and payments are centralized at Treasury Division, MOF. Reconciliations are done on a monthly basis by MOF. The latest TWOG audit report is for year ended 31 December 2017, which was submitted to Parliament in 2018. OAG noted improvements in the annual reporting process and MOF are working towards implementing the outstanding recommendations.

2. Entity-specific Risks

Moderate MOF is the Borrower/Recipient for all ADB-funded projects and the EA for two ongoing ADB-funded projects. MOF staff are well trained in ADB procedures MPWIELMD is a first time IA for an ADB-funded project. The project accountant in the PMU under the ongoing project, will continue to handle the disbursements and financial management work for the proposed additional financing.

ADB will arrange for the new MOF and MPWIELMD staff who will be grant withdrawal application reviewers and authorized signatories to be trained on ADB’s CPD system and disbursement procedures.

Overall Inherent Risk

Substantial

B. Control Risk (the risk that the project’s accounting and internal control framework are inadequate to ensure project funds are used economically and efficiently and for the purpose intended, and that the use of funds is properly reported).

1. Implementing Entity

Moderate MPWIELMD is a first time IA and its staff are not familiar with ADB’s financial management requirements.

Existing PMU will continue to manage the project. ADB will arrange for the MPWIELMD staff to be trained on ADB’s CPD system and disbursement procedures.

2. Funds Flow Low As under the ongoing project, contractors/consultants will be paid directly by ADB, while the local PMU consultants’ salaries and small recurrent PMU expenses will be paid from the project advance account.

Reimbursement claims and liquidation of the advance account will be submitted with complete documentation.

3. Staffing

Moderate The project accountant under the ongoing project is a qualified finance person well-versed with ADB’s disbursements and financial management requirements, having attended three of ADB’s training.

Another person is being trained to support the current project accountant.

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Risk Type

Risk Assessment

Rating Risk Description Mitigation Measures 4. Accounting Policies and Procedures

Low Under the ongoing project, the project financial statements have been prepared on a cash basis in accordance with IPSAS and this will continue under the proposed additional financing.

Project accountant was advised to ensure that records are regularly reconciled with ADB’s GFIS.

5. Internal Audit Substantial GOT’s IAD was established in MOF in December 2016 and the staff complement of two do not have knowledge of ADB requirements.

MOF will extend internal audit function to PMU; will invite the IAD staff to future training on disbursements and financial management.

6. External Audit Moderate OAG audits all ADB-funded projects and their staff have attended various ADB training on disbursements and financial management.

During project review missions, ADB will meet with OAG, to ensure that ADB’s auditing requirements are complied with. Project team will advise project staff on revised ADB FM requirements

7. Reporting and Monitoring

Moderate The project accountant under the ongoing project is well-versed with ADB’s financial reporting requirements. The project accountant provides inputs to the progress report and prepares the project financial statements for auditing.

Project accountant will be informed of ADB’s revised PPR rating procedures that emphasizes timely compliance with financial management requirements.

8. Information systems

Moderate MOF uses Sage 300 software. Under the ongoing project, MYOB accounting software is being used.

MYOB will continue to be used under the proposed additional financing.

Overall Control Risk

Moderate

Overall Financial Management Risk

Moderate

ADB = Asian Development Bank; CPD = client portal for disbursements; EA = executing agency; FMIS = Financial Management Information System; GAAP = generally accepted accounting principles; GOT = Government of Tuvalu; IA = implementing agency; IAD = Internal Audit Division; IPSAS = International Public Sector Accounting Standards; ISSAI = International Standards of Supreme Audit Institutions; MOF = Ministry of Finance; MPWIELMD = Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and Disaster; MYOB = Mind Your Own Business; OAG = Office of the Auditor General; PEFA = Public Expenditure and Financial Accountability; PMU = project management unit; TWOG = Tuvalu Whole of Government.

10. MOF/MPWIELMD have agreed to implement an action plan, as key measures to address the deficiencies:

Table 16: Proposed Action Plan under Second Additional Financing

Issue Action Timeline 1. The role of MPWIELMD as a

whole and the PMU for the ongoing project and proposed additional financing is to be clearly defined.

The PMU with its existing organization structure, with TORs, for the ongoing project, will continue under the proposed additional financing.

By grant effectiveness.

2. New MOF/MPWIELMD staff to be trained on CPD viewer/ authorized signatories responsibilities and ADB disbursement procedures.

ADB to arrange CPD and disbursement procedures training for new MOF/MPWIELMD grant withdrawal application reviewers/authorized signatories.

During inception mission.

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3. Only the project accountant under the ongoing project, prepares grant withdrawal applications.

ADB to arrange training for an MPWIELMD accounting staff who can alternate for the project accountant

During inception mission.

4. MOF’s IAD was established in 2016 and the staff complement of two do not have knowledge of ADB requirements.

MOF agreed to extend internal audit function to the PMU. IAD staff will be invited to future ADB training on disbursement (including CPD) and financial management

ADB = Asian Development Bank; CPD = client portal for disbursements; IAD = Internal Audit Department; MOF = Ministry of Finance; MPWIELMD = Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and Disaster; PMU = project management unit; TOR = terms of reference. Source: Asian Development Bank.

B. Status of Issues under Action Plans in FMA of 2016 and update in 2018

Issues Action Status 2016 Action Plan

1. Weaknesses in project accounting, delays in release of counterpart funds.

Counterpart funds incorporated in government budget; project accountant trained well in ADB procedures.

Issue mitigated but will be closely monitored.

2. Incomplete project audit. AGO who conducts the audits were briefed on ADB requirements.

Issue mitigated. APFS submitted regularly; unqualified opinion

3. Unreconciled donors’ accounts and co-mingling of project funds.

Separate books of accounts were maintained, frequent reconciliation of project funds. Assistance provided to the MFED and Treasury through TA.

Issue mitigated; but will be closely monitored.

4. No internal audit function. Internal audit was established under MFED. Issue partly mitigated. Internal audit function not extended to other ministries.

5. Fixed asset register should be maintained

Asset management system is being maintained and audited; will ensure that the investment will be included in the FAR and the books of MPWIELMD.

Issue partly mitigated as FAR is maintained in spreadsheets only. Future actions will be closely monitored.

2018 Action Plan

1. Staffing - PMU Need to ensure that PMU is adequately staffed due to increasing workload from additional financing

PMU staffing was adequate during first additional financing. Will assess workload under the end additional financing.

2. Reimbursement procedure for PMU expenditures

Full documentation required for reimbursement. Advance account has been approved for small PMU expenditures

Advance account managed effectively.

3. ACCPACC being used for FAR but not all government units are using ACCPACC

ACCPACC to be used by other government units and staff trained for its use.

Not yet done. Some government units still using spreadsheets; GOT need to acquire additional licenses.

ADB = Asian Development Bank, APFS = audit project financial statements, MFED = Ministry of Finance and Economic Development, FAR = fixed asset register, MCT = Ministry of Communication and Transport, PMU = project management unit, GOT = Government of Tuvalu. Source: Asian Development Bank

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C. Disbursement

1. Disbursement Arrangements for ADB Funds

11. The grant proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time),4 and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.5 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. 12. Payments for works, goods and consulting services will generally be disbursed by ADB through direct payment and reimbursement procedures as applicable and should be certified by the PMU based on the payment terms in the contracts. Local PMU consultants’ salaries and the small recurrent PMU office expenses will be paid from the advance account through the advance account procedure. The project accountant in the PMU will create the grant withdrawal applications, with complete supporting documents, for submission to MOF/MPWIELMD staff, for their review and approval and then to ADB for the processing of payments. All these processes will be done online in the CPD system. 13. Advance fund procedure. Separate advance account should be established and maintained by the PMU for each funding source. The currency of the advance account is the Australian dollar. The advance account is to be used exclusively for ADB’s funds share of eligible expenditures. PMU who administer the advance account is accountable and responsible for proper use of advances to the advance accounts. The PMU has proven its capacity to handle the advance account as demonstrated in their handling of the existing advance account under Grant 0603-TUV. 14. The total outstanding advance to the advance account should not exceed the estimate of ADB’s share of expenditures to be paid through the advance accounts for the forthcoming 6 months. The PMU may request for initial and additional advances to the advance accounts based on an Estimate of Expenditure Sheet6 setting out the estimated expenditures to be financed through the account for the forthcoming 6 months. Copies of supporting documents should be submitted to ADB while the original copies are retained by the PMU in accordance with ADB’s Loan Disbursement Handbook when liquidating the advance accounts.

15. Before the submission of the first withdrawal application (WA), the MOF should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per WA is stipulated in the Loan Disbursement Handbook. Individual payments below such amount should be paid (i) by the MOF/MPWIELMD and subsequently claimed to ADB through reimbursement, or (ii) through the advance fund procedure, unless otherwise accepted by ADB. The recipient should ensure sufficient category and contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements (CPD)7 system is encouraged for submission of withdrawal applications to ADB.

4 ADB. 2017. Loan Disbursement Handbook. Manila. 5 Disbursement eLearning. https://elearn.adb.org/course/search.php?search=disbursement. 6 Estimate of Expenditure sheet is available in Appendix 8A of ADB’s Loan Disbursement Handbook. 7 The CPD facilitates online submission of WA to ADB, resulting in faster disbursement. The forms to be completed

by the Borrower are available online at https://www.adb.org/documents/client-portal-disbursements-guide.

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

https://elearn.adb.org/course/search.php?search=disbursement

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

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2. Disbursement Arrangements for Counterpart Fund

16. Counterpart funds should be included and allocated in the MPWIELMD approved annual budget. PMU will estimate disbursement of counterpart funds and MPWIELMD will request certification for expenditures from MOF. MPWIELMD should ensure timely availability of counterpart funds during project implementation, and when operation, repairs and maintenance costs have been identified for the newly created infrastructure under the project. D. Accounting

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

18. The MPWIELMD will cause the detailed consolidated project financial statements to be audited in accordance with the International Standards for Supreme Audit Institutions, by an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by MPWIELMD. 19. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the grants were used only for the purposes of the project; and (iii) whether the MPWIELMD was in compliance with the financial covenants contained in the legal agreements (where applicable). 20. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

21. The government, MOF, and MPWIELMD have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.8 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the recipient), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the

8 ADB’s approach and procedures regarding delayed submission of audited project financial statements: (i) When audited project financial statements are not received by the due date, ADB will write to the executing agency

advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months.

(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.

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audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

22. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Access to Information Policy 2018.9 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed10.

VI. PROCUREMENT AND CONSULTING SERVICES A. Advance Contracting and Retroactive Financing 23. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The recipient, MOF and MPWIELMD have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. 24. Advance contracting. Advance contracting, to include the preparation of tender documents, issuance of bidding documents, receipt and evaluation of bids shall be undertaken for the following project components: (i) maritime and land civil works, and (ii) construction supervision consultant. 25. Retroactive financing. In order to advance the start of the consulting services for the project management consultant for Ship Replacement Project, the government requested retroactive financing from ADB. The government has been informed that all expenditures must be incurred not more than 12 months before the signing of the grant agreement and that the maximum amount of retroactive financing permitted is 20% of the grant amount.

B. Procurement of Goods, Works, and Consulting Services 26. All procurement of goods and works will be undertaken in accordance with ADB Procurement Policy. Procurement of goods and works will follow the ADB Procurement Policy, the Procurement Regulations for ADB Borrowers, and associated Staff Instructions. To achieve the best Value for Money (VfM) under the project, the optimal procurement arrangements have been chosen by: (i) using the e-procurement technology to lower the transaction cost, enhance efficiency and transparency; (ii) attracting international contracting firms to deliver high quality civil works under single package ($14 million) following OCB method with international advertisement; and (iii) recruiting international consulting firm using quality and cost-based selection (QCBS) method to ensure high quality construction supervision services. 27. A single contract for the marine and landside works as it will be more attractive for an

9 ADB. 2018. Access to Information Policy. Manila. 10 Such information generally falls under access to information policy exceptions to disclosure (ADB. 2018. Access to

Information Policy: Disclosure and Exchange of Information. Manila [para. 17(1-7)].

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

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international contractor and reduce mobilization costs. Since detailed design will be completed by the time of procurement of the civil works, it is proposed to deliver the project as a ‘Construct Only’ contract (with minor elements as design and build) using Open Competitive Bidding method to ensure there is a maximum chance of receiving competitive bids. Given that the detailed design will be completed by the time of issuing the invitations for bidding, technical proposal will have sufficient information on the client’s requirements and specifications to be able to prepare conforming technical proposals. Considering this and since the procurement will be mostly supported with independent consulting support, a single-stage one-envelope process will be used. 28. All consultants will be recruited following ADB’s Procurement Policy, the Procurement Regulations for ADB Borrowers, and associated Staff Instructions.11 The terms of reference for all consulting services are detailed in Section D. An international consultant would undertake the duties of the Engineer with appropriate authority under the Contract, namely the Construction Supervision Consultant. The firm will be engaged using the quality- and cost-based selection (QCBS) method with a quality–cost ratio of 90:10. Recruitment of the national consultants of the PMU will follow a direct contracting method given satisfactory performance of the existing PMU consultants and the lack of available suitable staff in the country.

29. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. C. Procurement Plan

Basic Data

Project Name: Outer Island Maritime Infrastructure Project Project Number: 48484-005 Approval Number: Country: Tuvalu Executing Agency: Ministry of Finance Project Procurement Classification: A Implementing Agency: Ministry of Public Works,

Infrastructure, Environment, Labor, Meteorology and Disaster

Procurement Risk: Medium

Project Financing Amount: $22.00 million ADB Financing: $20.00 million Non-ADB Financing: $2.00 million

Project Closing Date: 31 December 2026

Date of First Procurement Plan: 13 October 2020 Date of this Procurement Plan: 13 October 2020

Procurement Plan Duration: 18 months Advance contracting: yes Retroactive financing: yes

eGP: yes

Source: Asian Development Bank

1. Methods, Review and Procurement Plan

30. Except as ADB may otherwise agree, the following methods shall apply to procurement of goods, works, nonconsulting services, and consulting services.

Procurement of Goods, Works and Nonconsulting Services Method Comments

Open Competitive Bidding for Works $1,000,000 and above, prior review

11 Checklists for actions required to contract consultants by method available in e-Handbook on Project

Implementation at: http://www.adb.org/documents/handbooks/project-implementation/.

http://www.adb.org/documents/handbooks/project-implementation/

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Consulting Services Method Comments

Quality and Cost-Based Selection for Consulting Firm

Direct contracting for individual consultants Direct contracting, see paragraphs of the PAM for further details.

PAM = project administration manual. Source: Asian Development Bank.

2. List of Active Procurement Packages (Contracts)

31. The following table lists goods, works, nonconsulting, and consulting services contracts for which the procurement activity is either ongoing or expected to commence within the procurement plan’s duration.

Goods, Works, and Nonconsulting Services

Package Number

General Description

Estimated Value ($)

Procurement Method

Review Bidding

Procedure Advertisement

Date Comments

CW-1 Maritime and land civil works

14,000,000 OCB (Works)

Prior 1S1E Q1/2021 Prequalification of bidders: No Domestic preference applicable: Yes AC: Yes e-GP: Yes, e-Bidding

AC = advance contracting, CW = civil work, E = envelope, OCB = open competitive bidding, Q = quarter, S = stage, Source: Asian Development Bank

Consulting Services

Package Number

General Description

Estimated Value ($)

Selection Method

Review Type of

Proposal Advertisement

Date Comments

CS-01 Technical Support and Project Management Consulting Services a

1,500,000 QCBS Prior FTP Q3/2020 Type: Firm Assignment: International QCR: 90/10 AC: Yes eGP: Yes, ADB CMS

CS-02 Program Manager

200,000 DC Prior REOI Q4/2021 Type: Individual Assignment: National AC: No e-GP: No

CS-03 Project Manager


CS-04 Project Accountant


AC = advance contracting, CMS = consultant management system (ADB), CS = consulting service, DC = direct contracting, FTP = full technical proposal, I = individual, ICS = individual consultant selection, QCBS = quality and cost-based selection, QCR = quality/cost ration, REOI = Request for Expression of Interest. a Construction Supervision Consultant. Source: Asian Development Bank.

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3. List of Awarded and On-going, and Completed Contracts

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

Consulting Services

Package Number

General Description

Estimated Value ($)

Selection Method

Review Type of

Proposal

Advertisement

Date

Contract Award Date

Comments

CS-05 Project management consultant for Ship Replacement Project

750,000 QCBS Prior FTP Q1/2020 Q1/2021

Retroactive finance Type: Firm Assignment: International QCR: 90/10 AC: Yes eGP: Yes, ADB CMS

D. Consultant's Terms of Reference

33. Outline terms of reference for all consultant contracts are in Attachment 2.

VII. SAFEGUARDS

34. Environment. The original project, first additional financing and the proposed additional financing are category B for environment. The impacts of the Nui workboat harbor are site-specific, limited to the footprint of the small-scale harbor (including extending and widening the existing channel) and associated land-side facilities on Nui, and can be mitigated and managed to acceptable levels provided the measures identified in the IEE and EMP are implemented, and subsequently monitored and reported. A number of alternative locations for the harbor, landside facilities and reclamation have been considered and the proposed option provides the most suitable from an environmental (coastal processes i.e. littoral drift, sand transportation, wave climate and marine ecological) and social (access, minimization of land requirements) perspective. The Department of Environment (DOE) under the Ministry of Foreign Affairs, Trade, Tourism, Environment, and Labor has adequate capacity to monitor the project with the PMU’s support. The IEE and EMP will be reformatted as required and submitted to the DOE as the basis of the application for development consent for the project. The contractor will prepare their construction EMP (CEMP), including dredging plan and COVID-19-speciifc health and safety plan, based on the IEE and EMP that will be included in the bid and contract documents. The PMU (with support from the CSC) will review and clear the CEMP. 35. The project will provide resources and support to ensure safeguards are effectively implemented. The CSC will include an environmental specialist to support PMU and ensure environmental safeguards are properly implemented and to monitor compliance of contractor with the approved CEMP during construction. The contractor will recruit an experienced environmental specialist, with expertise in marine ecosystems, to prepare the CEMP (including site-specific plans, drawings and construction methodology for temporary working areas/platforms) and to monitor implementation of the same.

36. In compliance with the Access to Information Policy 2018, the IEE, updated IEE and semi-annual monitoring reports will be disclosed on ADB’s website.

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37. Social safeguards. The construction of a small workboat harbor in Nui will not result in involuntary land acquisition nor physical or economic displacement. The Nui project’s main components will be built on reclaimed and foreshore land recognized as Crown Land within Tuvalu laws. During the construction phase, the project will seek to widen approximately 1 km of existing roads and create approximately 0.5 km of new road. The government will engage in temporary leases for privately owned native land to construct or widen these roads, as well as a temporary lease for a construction laydown area. Altogether there will be 13 lots that the government will lease the entire lot parcel, mainly for the construction laydown area, and 34 lots that will require only a small area of the lot to be leased, mainly for the access road. There will be impacts on privately owned trees within leased areas. Altogether an estimated 1.96 hectares will be leased for a period of approximately 3 years. 38. The government through the PMU, and supported by the design consultant, will carry out meaningful consultations with the landowners, asset owners, Nui community, and concerned community organizations including women’s groups during the lease agreement process. The PMU will pay attention to the needs of vulnerable groups, especially those below the poverty line, the elderly, and women, and their ability to participate in meaningful consultations required for the lease agreements process. Lease payments will be made yearly, with the first payment made up-front before construction commencement. The leases will be at the government scheduled rates. In line with Tuvalu law, the trees within the lease areas will be surveyed by the Department of Lands and Survey, and the compensation agreed with each of the owners of affected trees. Fees associated with the taxes, surveying and registering of the lease agreements will be paid for by the government. Leased land will be restored by the contractor at the completion of construction in agreement with the landowners, or in the case of the access roads, the government may continue to transfer to long-term leases if the landowners’ consent. Alternatives to the designs will be developed if the landowners do not provide their consent to the leases and/or agree to compensation for affected trees. The lease agreement process will be monitored and documented by a Third-Party Verifier, who will be a trusted person on the island that is not benefiting from the leases to be engaged as a volunteer. 39. There may be long term leases arranged for some minor associated facilities, including some landscaped areas, a short footpath and minor widening of a road corner. These will be confirmed during the detailed engineering design phase. There are no known land disputes for the affected lots. Further consultations and investigations will be conducted to clarify the ownership status of the existing road to be widened. The government will be responsible for securing the required budget to establish the lease arrangements and pay compensation for affected trees. 40. A due diligence report (DDR) has been prepared, and includes a policy framework, institutional arrangements and an implementation plan for the document to be updated and cleared by ADB before lease agreements are signed and payments made for the leases and affected trees. A compensation completion report, together with the independent report from the Third-Party Verifier, will be submitted to ADB and cleared before commencement of civil works. The DDR and IEE include details of a grievance redress mechanism (GRM) for the Nui project to be implemented by the Kaupule and PMU, with the support from the Project Supervision Contractor. The GRM incorporates local processes for resolving grievances regarding land matters. The PMU will also monitor all unanticipated social safeguards impacts on an ongoing basis and report to ADB on these matters within safeguard monitoring reports on a semi-annual basis. 41. Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement

25

(2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the Safeguard Policy Statement.

VIII. GENDER AND SOCIAL DIMENSIONS 42. The project will address challenges with accessing maritime transport and employment or income generating opportunities for women. Categorized as ‘effective gender mainstreaming’ (EGM), key actions in the gender plan: consultation workshops with women and men during design and implementation (including women only and others with minimum female participation quotas) to ensure women friendly design and management, harbor facilities designed to enhance women’s safety and economic opportunities as well as targets for women’s employment in construction (in semi-skilled or training roles). Gender actions for Nui have been incorporated into the overall project GAP. Please see below for more detail.

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Outputs Location Proposed Activities and Targets Main Responsibility (Mandate) Output 1. Small-scale harbors constructed in Nui, Niutao, and Nukulaelae, and boat ramps in Nanumaga and Niutao rehabilitated

(Additional financing 1: Niutao small scale harbor constructed; Additional financing 2: Nui small scale harbor constructed)

Small scale harbor in Nukulaelae; boat ramp rehabilitation in Nanumaga and Niutao

During design and implementation, all community and public consultations will have a target of at least 20% female participation.

PMU and the consultant (TOR)

All Ensure women-friendly design of facilities. For example, this includes the transit shed to have extra space for trading stall or the jetty to have a hand-rail, ramp or similar.

PMU, the consultant, and the contractor (contract provision)

All The contractor and the consultant are required to organize awareness training on HIV/AIDS and gender issues for all construction workers and nearby community members (with at least 20% women participation from each village).

PMU, the consultant, and the contractor (contract provision)

Small scale harbor in Nukulaelae; boat ramp rehabilitation in Nanumaga and Niutao

Ensure equal pay for equal work between female and male workers. PMU and the contractor (contract provision)

Small scale harbors constructed in Nui and Niutao

During design and implementation, all community consultations will have a target of at least 40% female participation. There will be women-only consultations.

All The PMU will employ men and women including from the island with at least 30% women

Government

All The contractor will employ men and women, including locals from the island, with at least 10% of employees women. These may include administrative, maintenance, security and supervision works.

Contractor and PMU (lead), GSDC and Kaupule


Provide separate toilets and sanitation facilities at construction camp and appropriately sized protective clothing and safety equipment

Contractor


Ensure application of core labor standards for all female and male workers in all operations including equal pay for equal work between male and female workers and zero tolerance for child labor. Payroll with names, sex, work done, working period, and wages received will be made available by the contractor for inspection.

Contractor CSC to inspect


All male and female civil works laborers and at least 30% surrounding community members have received trainings on (a) HIV/AIDS/STIs, (b) gender sensitivity awareness, (c) gender based violence and trafficking, and (d) diversity & inclusion in two phases: prior to construction and during construction12

GSDC as the lead and PMU oversight, Contractor, Tuvalu Family Health Association, and Department of Gender Affairs


Zero tolerance for sexual harassment and other forms of gender-based discrimination in the workplace implemented.

GSDC as the lead and PMU oversight, Contractor, Tuvalu Family Health Association, and Department of Gender Affairs

12 Nui target: All staff and 180 community members (total over course of project) for each training type.

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Outputs Location Proposed Activities and Targets Main Responsibility (Mandate) Small scale harbors constructed in Nui and Niutao

Equal compensation will be made for men and women for land leasing. As a part of this strategy it is essential that all landowning women and men have are provided access to all information on compensation and information on grievance processes.

Jointly clan heads Kaupule and GSDC (lead), Niutao Women’s Council and PMU


Removal of vegetation from the harbor site to a designated public space in Niutao for use by local women (especially coconuts and pandanus) for handicraft production and men for building houses and construction.

Jointly Kaupule and GSDC (lead), PMU, Women’s Handicraft group, Niutao Women’s Council, Women’s Group/s, Contractor


Participatory workshops held among the communities on (i) water safety of passengers and community and (ii) harbor basic use and maintenance of the facilities, with a minimum of 40% women. Workshop materials will be provided to the communities.

Jointly Kaupule and GSDC (lead), PMU, Women’s Handicraft group, Niutao Women’s Council, Contractor


Safety and domestic violence awareness posters and brochures for the noticeboard at the transit shed and distributed to schools and health clinic.

CSC (lead), PMU, and Kaupule


Priority seating reserved for pregnant women, elderly and the disabled in the passenger terminal.

Contractor (lead) Social Development Specialist, and PMU


Passenger terminal includes a multi-purpose room equipped with a first aid station for the sick/elderly/ pregnant women and first aid supplies.



Provision of life buoy for safety of transfer from harbor to workboat and workboat to ship (and vice versa) and lifting litter, especially for pregnant women, children, elderly, and disabled.



Appropriate safe lighting sites for the 24-hour solar lights at the harbor facility to ensure the safety of women.

Jointly contractor, Kaupule and Niutao Women’s Council Kaupule (lead) with support from GSDC and PMU to ensure the arrangement will be in place in time for the operation.


Training conducted for stevedores on lifting and safety procedures to ensure safe transfer for women, children, elderly, and disabled including transfer of their luggage.

CSC (lead), PMU, and Kaupule


Women-friendly design of facilities (e.g. handrail/ramp on jetty) for the elderly, children, and pregnant women, as well as those with limited mobility. Signs posted on jetty for safety warning and procedures.

Design Contractor Consultant (lead)/Construction Contractor Social Development Specialist, and PMUCSC (lead), PMU, and Kaupule


Canteen constructed inside the passenger terminal managed by women’s groups e.g. Niutao Women’s Council, Matapulapula Women's Group (Nui).

Contractor (during construction) and CSC Supervision, Niutao Women’s Council (during operation), support from Gender and Social Development Specialist,

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Outputs Location Proposed Activities and Targets Main Responsibility (Mandate) and PMU to facilitate the arrangements prior to turn-over


Build sale area for women to sell handicrafts at the passenger terminal, including implementation of chosen enterprise/s at the new wharf (food, drinks, handicrafts, etc.).

Contractor (during construction), GSDC and PMU

Small scale harbor constructed in Nui

The 10% female workforce quota will be in trainable, semi-skilled roles for which they qualify such as drivers, machinery operators, administration. If none qualify with minimum skills, qualifications, or experience the contractor will engage a minimum of 1 women over the course of the construction in a paid trainee or intern leading to an accredited qualification where possible. (e.g. First Aid, Health and Safety, Environment, Community Liaison, Administration, Machine Operation etc.).

Contractor and PMU (lead), GSDC

Nui Interviews to research barriers to women’s willingness and participation in the workforce and in non-traditional roles in Nui prior to project, during and at end of project.

CSC GSDC

Nui Using outcomes of island-specific research and gender mainstreaming principles, the CSC GSDC will undertake gender training (e.g. with workforce and/or community) and promote women’s participation in the workforce and non-traditional roles.

GSDC

Output 2: The capacity to operate and maintain harbors improved. Nui, Niutao, and Nukulaelae.

All At least one O&M training will be conducted for island communities including the Kaupule officer-in-charge and at least 20% participation of women representatives.


All If the community is tasked to carry out any O&M of project facilities as a result of institutional strengthening, at least 10% of O&M work would be carried out by women.

PMU and the community

All

At least 1 safety awareness on the use of the facilities conducted among women in the community prior to the facility handover.


Output 3: A transport sector master plan for future harbor development in the outer islands created, with a view to promote fisheries and tourism.

All During feasibility study, all community and public consultations will have a target of at least 20% female participation.


All The feasibility study will include assessment and designing for needs of local community particularly elderly, pregnant women, children, and those with disabilities.

The consultant (TOR)

All During master planning, all community and public consultations will have a target of at least 20% female participation.


GSDC = gender and social development specialist, CSC = construction supervision consultant, PMU = project management unit, TOR = terms of reference.

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43. Implementation and monitoring of the GAP will be supported by an international and national gender and social development specialist. ADB will provide a GAP monitoring template for quarterly progress reports on implementation of the GAP.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework

Impact the Project is Aligned with Safe and efficient domestic maritime transportation that helps increase climate resilience of community infrastructurea

Results Chain Performance Indicators with Targets and

Baselines

Data Sources and Reporting

Mechanisms Risks Outcome By 2025

Maritime transfer operations in Nanumaga, Nui, Niutao, and Nukulaelae improved, anchored on a transport master plan, with a view to promoting fisheries and tourism

a. Transfer efficiency, defined as transferred volume of passengers and cargo divided by the dwell time in Niutao and Nukulaelae improved by 20% (2013–2015 baseline: 1.59 cubic meters per hour on average for Nukulaelale) b. The total number of passengers travelling to and from Nui, Niutao, and Nukulaelae increased (Nui baseline: 625 passengers in 2018; Niutao baseline: 1,175 passengers in 2017; Nukulaelae baseline: 445 passengers in 2015)

a.–b. Annual report of the MCT MTET’s Marine and Port Department

A decrease in population may affect the number of passengers

Outputs Output 1

By 2025

1. Small-scale harbors constructed in Nui, Niutao, and Nukulaelae, and boat ramps in Nanumaga and Niutao rehabilitated

1a. Small-scale harbors in Nui, Niutao, and Nukulaelae constructed, including dredged channel and boat basin, trestle, boat ramp, and boat parking area (2016 baseline: 0) 1b. A transit shed, a passenger terminal friendly to women (e.g., priority seating for elderly and pregnant women), and a crane truck provided in Nui, Niutao, and Nukulaelae (2016 baseline: 0) 1c. Boat ramps in Nanumaga and Niutao improved (2016 baseline: 0) 1d. Design friendly to women incorporated in facilities, e.g., handrail on the jetty or a trading stall, multipurpose room with first aid facilities, life buoy provided to increase the safety of transfers, appropriate lighting and safety and security measures installed at the harbor facility (2016 baseline: 0) 1e. Canteen constructed inside the passenger terminal managed by women’s groups in Nui and Niutao (2018 baseline: 0)

1a.–d. Quarterly project progress report 1a.–e. Project design and quarterly project progress report

The limited number of government staff have insufficient experience in implementing large investment projects. Procurement capacity is insufficient. The lowest bid on the works contract is substantially higher than the cost estimate. The government’s financial management capacity is limited

Output 2 2. Capacity to operate and maintain harbors

2a. Operation and maintenance plan for maritime infrastructure prepared and training

High turnover of government staff

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Results Chain Performance Indicators with Targets and

Baselines

Data Sources and Reporting

Mechanisms Risks improved, involving the outer island communities, the MCT MTET, and other national government agencies

implemented for the outer island communities, the MCT’s MTET, and other national government agencies (2016 baseline: 0) 2b. At least one operation and maintenance training will be conducted for island communities, including the Kaupule (local government council) officer-in-charge and with at least 20% participation of female representatives (2016 baseline: 0)

2a.–b. Quarterly project progress report

who received training

Output 3 3. A transport sector master plan for future harbor development in the outer islands created, with a view to promoting fisheries and tourism

3a. A master plan for the transport sector with a view to promote fishery and tourism developed (2016 baseline: 0) 3b. Feasibility study for developing a small-scale harbor in Nanumaga, Nui and Niutao prepared (2016 baseline: 0) 3c. Prefeasibility study prepared for developing a harbor that can accommodate government ships in the outer islands (2016 baseline: 0) 3d. All community and public consultations will be participated in by at least 20% female representatives (2016 baseline: NA)

3a.–d. Quarterly project progress report

Stakeholders fail to reach a consensus for the direction or priority of development.

Key Activities with Milestones 1. Small-scale harbors constructed in Nui, Niutao, and Nukulaelae, and boat ramps in Nanumaga and Niutao

rehabilitated 1.1 Procurement of works in Nanumaga and Nukulaelae conducted during January–May 2017, under project design

advance (completed); procurement of works for Niutao harbor conducted during January–May 2020 (completion date change); and procurement of works for Nui harbor to be conducted during July–December 2020 (added)

1.2 Small-scale harbor constructed in Nukulaelae and boat ramps in Nanumaga and Niutao rehabilitated during June 2017–December 2020 (unchanged)

1.3 Niutao harbor and Nukulaelae passenger terminal constructed during March 2020–December 2022 (unchanged) 1.4 Small-scale harbor constructed in Nui during April 2021–October 2023 (added) 2. Capacity to operate and maintain harbors improved 2.1 Consultant recruitment for Nukulaelae and maritime transport plan conducted during October 2016–February

2017 (completed). 2.2 Consulting services for institutional strengthening engaged during June 2017–December 2020 (completed) 3. A transport sector master plan for future harbor development in the outer islands created 3.1 Consultants recruited during October 2016–February 2017 (completed) 3.2 Consultant services for preparing a transport sector master plan engaged during June 2017–December 2020

(completed) Inputs Asian Development Bank: $46.7 million ($20.0 million additional) Global Environment Facility: $0.5 million ($0.0 million additional) Government: $5.2 million ($2.2 million additional) MTET = Ministry of Transport, Energy and Tourism. a Defined by project. Source: Asian Development Bank.

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B. Monitoring

44. Project performance monitoring. Project performance will be monitored using the targets, indicators, assumptions, and risks in the design and monitoring framework. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the implementing agency’s quarterly progress reports and after each ADB review mission. These quarterly reports will provide information necessary to update ADB's project performance reporting system.13

45. Compliance monitoring. Compliance monitoring will be provided through regular quarterly progress reports and during regular ADB review missions. 46. Safeguards monitoring. Environmental and social safeguards issues, if any, including grievances received, breaches of the approved CEMP, safeguards non-compliance requiring corrective actions and unanticipated safeguards impacts which would trigger SPS will be monitored and reported in the quarterly progress report to be prepared by environmental officer, environmental specialist and social safeguards and gender specialist and supervised by the PMU. This information will also be part of the semi-annual safeguards monitoring report. Checklists for safeguards monitoring and suggested contents for the semi-annual safeguards monitoring report are in Attachments 3 and 4 respectively. The semi-annual safeguards monitoring reports will be disclosed. 47. Gender monitoring: ADB will provide a gender action plan (GAP) monitoring template and this should be used to report on progress against the GAP as part of quarterly progress reports. C. Evaluation

48. ADB will review the project every 6 months. Each review will cover institutional, administrative, organizational, technical, environmental, social, poverty reduction, resettlement, economic, financial, and other aspects affecting the performance of the project and its continuing viability. The government and ADB will jointly undertake a midterm review of the project within about 2 years of its start. The midterm review will focus on (i) project impact, (ii) implementation progress, (iii) the performance of consultants and contractors, (iv) the status of compliance with covenants in the grant agreement, and (v) the need for any midcourse changes in project scope or schedule to ensure full achievement of the intended impact. Within 6 months of physical completion of the project the implementing agency will submit a project completion report to ADB.

D. Reporting

49. The MOF will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed.

13 ADB's project performance reporting system is available at

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

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

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E. Stakeholder Communication Strategy

50. A Stakeholder Communications and Participation Plan (CPP) has been prepared in line with the requirements of the laws of Tuvalu, and ADB’s Access to Information Policy 2018 and Safeguards Policy Statement (SPS) 2009. It outlines meaningful consultation and information disclosure activities planned during the implementation of the project. For all communication, consultation and outreach activities, culturally appropriate information, education and communication (IEC) materials will be developed to ensure all stakeholders, including the poor, vulnerable and low-literacy groups, clearly understand key project components, benefits and impacts. During the detailed design phase, public disclosure of technical designs, environmental studies, social safeguards due diligence reports and related documents will be presented to various groups in workshops. They will also be made available at the Island Council (Kaupule) offices and at the PMU office in Funafuti and disclosed on the ADB website. A Stakeholder Reference Committee (SRC) will be formed through representatives of various stakeholder groups to ensure decision making is participatory and inclusive. The SRC will hold regular meetings with the contractor regarding progress and emerging issues. The table below details the overarching communications strategy for the project. The strategy will be implemented by the Project Management Unit (PMU), Construction Supervision Consultant (CSC) and the Construction Contractor, with activities funded by the PMU or within the scope of works of the CSC.

Stakeholder Group

Objective of their Participation Approach to

Participation (Depth)

Participation Methods

Why included Activity & Method Who is

Responsible Ministries and SoEs involved or affected

Responsible for key infrastructure and services that may be affected

Consultation (Low-Medium)

Design: Introduction & feedback workshops with iterations. Where site visits not permitted, Design Consultant will prepare materials and facilitate remote decision-making process where possible. Pre-Construction/Planning: Online communications and intermittent meetings for service and issue identification, drafting agreements and other planning tasks; Interviews regarding Health Policy, Gender Policy, Environmental and Social Concerns. Monitoring: Online/written consultation for input on progress and resolution of impacts or complaints.

PMU and Design Consultant/ CSC

Nui Kaupule Island local government and ultimate co-owner and caretaker of project Will be co-responsible for operations and maintenance (with MTET)

Partnership (Low) on items within sphere of influence Collaboration (High) on all other matters

Design: Introduction & design workshops with iterations, project siting options workshops and determination of preference. Where site visits not permitted, Design Consultant will prepare materials and some capacity building for facilitation and remote decision making process by Kaupule, supported by PMU and National Safeguard Specialist. Disclosure: Present findings of Safeguards documentation and final design and seek input for MPs. Where site visits not permitted, Design Consultant will prepare summary presentation for Kaupule to share with community, supported by PMU and National Safeguard Specialist. Land Lease process: As lease signatory, present in all consultations about lands. Construction Planning: For identification and finetuning of actions and mitigation strategies,

PMU and Design Consultant/ CSC / Contractor

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Stakeholder Group





Responsible interviews and FCD to provide inputs on barriers to women in non-traditional jobs, participatory workshops on ADB Gender Policy and women in non-traditional roles, information sessions about types of work to be available for local labor; Workshop to determine process of rotating staff to ensure benefit sharing Construction: Representation on Stakeholder Committee; Weekly/Fortnightly meetings; Safeguards Focus Groups; GRM Meetings with CLO. Monitoring: Online/written consultation for input on progress and impacts, Safeguard interviews/focus groups

Fale Kaupule Assembly of Elders, key leadership group of Island community, has influence

Collaboration (High)

Design: Introduction & design workshops with iterations Disclosure: Present findings of Safeguards documentation and final design and seek input for MPs Land Lease process: As lease signatory, present in all consultations about lands. Construction Planning Workshops: For identification and finetuning of actions and mitigation strategies, interviews and FCD re barriers to non-traditional employment, participatory workshops on ADB Gender Policy and women in non-traditional roles. Construction: Representation on Stakeholder Committee; Weekly/Fortnightly meetings; Safeguards Focus Groups; GRM Meetings with CLO. Monitoring: Online/written consultation for input on progress and impacts, Safeguard interviews/focus groups

PMU and CSC / Contractor

Women's Group

Beneficiaries of project, different needs to main population

Consultation (High)

Design: Introduction & design workshops with iterations for gender inclusive design. Disclosure: Present findings of Safeguards documentation and final design and seek input for MPs. Where site visits not permitted, Design Consultant will prepare materials and some capacity building for facilitation and remote decision-making process by Kaupule, supported by PMU and National Safeguard Specialist. Pre-Construction: Ongoing f2f meetings & consultation on construction procurement and mobilization processes. Land Lease process: Focus group consultations regarding tree-cutting/clearing, use of resources, focus group consultations regarding tree-cutting/clearing, use of resources, and other matters including equitable benefit sharing mechanisms for women. Construction Planning: Workshops re. gender specific impacts, interviews and FCD re barriers to non-traditional employment, on ADB Gender Policy and women in non-traditional roles and other


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Stakeholder Group





Responsible mitigations and management strategies. Construction: Representation on Stakeholder Committee; Safeguards & Gender FCDs, Regular GRM Meetings with CLO for input on appropriate resolutions. Monitoring: Online/written consultation for input on progress and impacts, Safeguard interviews/focus groups.

Affected Residents (including small business owners, fishers, boat users etc.) - largely the broader community as interested

Residents who will/may be directly impacted by construction impacts Project will affect whole Island community's access to inter-island transport and day-to-day impacts

Consultation (Medium)

Design: Introduction & design workshops with iterations Disclosure: Present findings of Safeguards documentation and final design and seek input for MPs through public meetings. Land Lease process: General information sharing during public meetings. Construction Planning Workshops: For identification and finetuning of management plan actions and mitigation strategies including on roads usage and alternative routes; construction and road safety workshops; election of Stakeholder Committee Representatives: workshop to consider and determine process of rotating staff to ensure benefit sharing across families/clans and resulting information sessions on job process in conjunction with Kaupule. Construction: FCD on Code of Conduct for Construction Contractor; Representation on Stakeholder Committee; Monthly Bi-monthly Safeguards Progress Public Meetings; HIV/AIDS/STI Prevention workshops for community. Monitoring: Through GRM


Affected Landowners

Project beneficiaries, lands will be directly and physically impacted


Design: Introduction & design workshops with iterations Disclosure: Present findings of Safeguards documentation and final design. Where site visits not permitted, Design Consultant will prepare materials and some capacity building for facilitation and remote decision-making process by Kaupule, supported by PMU and National Safeguard Specialist. Land Lease process: As lease signatory, present in all consultations about lands, determination of lands condition/rehabilitation requests/requirements following construction completion. Construction Planning Workshops: For identification and finetuning of actions and mitigation strategies specific to affected lands (construction camp), election of Stakeholder Committee Representatives. Construction: Representation on Stakeholder Committee; Monthly Progress presentations & Q&A. Monitoring: Through GRM

PMU and CSC

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Stakeholder Group





Responsible Vulnerable Subgroups (disabled, carers, aged/elderly, other)

Project beneficiaries with particular needs

Consultation (High)

Design: Introduction & design workshops with iterations for inclusive design of infrastructure and consultation plan. Disclosure: Present findings of Safeguards documentation and final design and seek input for MPs. Land Lease process: Focus group consultations regarding tree-cutting/clearing, use of resources, and other matters including equitable formal/informal benefit sharing mechanisms for vulnerable or disadvantaged groups. Pre-Construction Planning: Information on project progress and identification of challenges of proposed Contractor approaches for vulnerable subgroups. Construction: Representation on Stakeholder Committee; Regular Safeguards & Gender FCDs, Regular GRM Meetings with CLO for input on appropriate resolutions Monitoring: Regular Safeguard interviews/focus groups (dependent on numbers and sensitivity).

PMU and CSC

Other CSOs Represent needs of particular interests such as health (Tuvalu Red Cross)

Collaboration (Medium)

Consultation meetings on capabilities and requirements for fulfilment of training. HIV/AIDS/STI Prevention workshops: Service Provision by CSO. Sea safety and first aid training: Service provision by CSO

Contractor

Employees of Construction Contractor

Undertaking Construction, non-residents that will reside within community for duration of project


Construction: Representation on Stakeholder Committee; Fortnightly meetings with CLO; Safeguards Focus Groups. Monitoring: Safeguard interviews/focus groups, GRM.

PMU and CSC/ Contractor

X. ANTICORRUPTION POLICY

51. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy (1998, as amended to date) relating to the project. All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.14 52. To support these efforts, relevant provisions are included in the grant agreement and the bidding documents for the project.

XI. ACCOUNTABILITY MECHANISM

53. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an

14 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp

http://www.adb.org/integrity/unit.asp

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independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.15

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

54. All revisions/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

Date Changed

Section Changed Changes Made

1. 2. 3. 4. 5. 6.

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

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

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XIII. ATTACHMENTS

• Attachment 1: Consultant Delegation Matrix

• Attachment 2: Consultant's Terms of Reference

▪ Construction Supervision Consultant ▪ Program Manager ▪ Project Manager ▪ Project Accountant

• Attachment 3: Environment safeguards checklist and contents of monitoring report

• Attachment 4: Social safeguards checklist and contents of monitoring report and

checklist for Safeguard Supervision/Monitoring (Resettlement)

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Attachment 1: Consultant Selection Matrix

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Attachment 2: Consultant's Terms of Reference

Construction Supervision Consultant Introduction 1. ADB is assisting the government of Tuvalu (the government) to implement the Outer Island Maritime Infrastructure Project. The project will help Tuvalu overcome connectivity constraints among the capital and the outer island of Nui and promote economic and social development that is more inclusive and sustainable. The proposed project will scale up and extend the socioeconomic benefits of the current project by constructing a small workboat harbor in Nui.

2. The Ministry of Finance (MOF) is the EA for the project, while the IA is the Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and Disaster (MPWIELMD). The National Infrastructure Steering Committee, jointly chaired by the Ministers of MOF and MPWIELMD, will provide oversight to the overall project. The established Project Management Unit (PMU) under the MPWIELMD will provide support to the government in implementing the project.

3. Objectives

4. The general objective of these terms of references (TOR) is to provide construction supervision services for the project implementation in Tuvalu. The Construction Supervision Consultant (CSC) (the consultant) will: (i) assist the PMU in project management and construction supervision, (ii) concurrently carry out on-the-job training in project management and contract supervision to the PMU and involved staff from the EA/IA and support arrangements to maintain the project deliverables, and (iii) support due diligence activities and project performance monitoring. The consultant will work with the PMU for delivery of services under the contract.

5. This consulting service contract will follow a time-based contracting modality for both personnel services and out-of-pocket expenses.

Scope of Work 6. The consultant will help ensure that the project is implemented according to the agreed terms and conditions laid out in the grant agreement, the Project Administration Manual (PAM) and other ADB policies and procedures, and according to the construction contract between the government and the contractor. Therefore, the CSC will be responsible for the contractor’s adherence to the contract, and will support the PMU and EA/IA in ensuring that terms of the grant agreement are adhered to. The CSC will also assist the PMU and EA/IA in procurement activities (any contract variations during the execution of the project), contract administration, the supervision of works, public consultation, environmental and social due diligence, and other project management actions. The CSC will be largely based out of Tuvalu, with (i) a desirable high presence of the Port Engineer/Team Leader in Tuvalu, (ii) a full presence of the Resident Supervisor in Tuvalu for the duration of works on site, and (iii) an intermittent presence of the Resident Supervisor at the location of construction works off site (e.g. if prefabrication takes place elsewhere). The detailed tasks include the following:

(i) Implement the Project according to the terms and conditions specified in the grant agreement between the government and ADB and ensure that the specified

42

assurances are met. (ii) Provide engineering, supervisory and managerial services to PMU and EA/IA

including review of project implementation aspects (technical, safeguards, sequencing, schedules, preparation of necessary documentation) for successful monitoring of the Project.

(iii) Assist the government to procure any civil works, goods, and consulting services under the Project, as necessary, in accordance with ADB’s Procurement Policy (2017).

(iv) In parallel to assisting the government with contract supervision, provide on-the-job training to the staff of PMU and EA/IA and other agencies involved.

(v) Fulfil the responsibilities as the Engineer under the civil works contract, including the supervision of the civil works in the field to ensure the quality of works is in accordance with designs and specifications, and provide any oversight for other services necessary for implementing the civil works.16

(vi) Certify invoices, prepare and provide all supporting documentation necessary to prepare grant withdrawal applications and keep records of any disbursement under the Project. Prepare and regularly update the forecast disbursement schedules.

(vii) Administer all contracts of works, and any other related activities as provided for under the Project.

(viii) Ensure all project activities will follow the safeguard plans agreed. For environment, assure quality and monitor the implementation of the approved construction environmental management plan (CEMP).

(ix) Undertake all materials quality control inspections required off-site, including but not limited to pre-casting operations, should the selected contractor choose to manufacture these components off-site.

(x) Assist in ensuring that land lease agreements and any other economic compensations are in place prior to any civil works contracts being signed and manage social safeguards issues which may arise during implementation. If any conditions change, update the due diligence report or prepare a resettlement plan depending on the results of detailed engineering.

(xi) Ensure timely implementation and compliance with the GAP (xii) (GAP) of the project and other gender activities. (xiii) Undertake, prepare and coordinate trainings. (xiv) Lead coordination with stakeholders when necessary. (xv) Assist in ensuring that lease agreements are in place prior to any civil works and

manage social safeguards issues which may arise during implementation. If any conditions change, update the due diligence report or prepare a resettlement plan.

(xvi) As per the requirements identified in the IEE and EMP, organize prevention and awareness sessions on communicable diseases including STIs and HIV/AIDS in the project outer island communities in coordination with the Ministry of Health.

Key experts 7. The consultants are required to include, at a minimum, the following key experts, who will be evaluated based on the required qualifications provided below: 8. Port Engineer/Team Leader (international, minimum inputs: 7 months). The candidate shall possess a degree in civil engineering, transportation engineering or a related discipline and

16 Following FIDIC Conditions of Contract for Construction for Building and Engineering Works Designed by the

Employer, Multilateral Development Bank Harmonised Edition, June 2010.

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possess at least 15 years of experience in design, project management, and implementation of maritime projects, of which some should be in the region. Experience in developing countries, particularly in the Pacific region, and working with development agencies is preferred. The key tasks of the Port Engineer Team Leader will include, but shall not be limited to the following:

(i) Take overall responsibility for delivering the services in ensuring timely and effective delivery of the project, and in particular of the construction contract for the Niutao harbour.

(ii) Be responsible for day-today management of the consultant team in delivering their responsibilities under the contract.

(iii) Provide direct support to the MPWIELMD /PMU in delivery of the project and reporting of progress to the government and the ADB.

(iv) Monitor project progress and report progress and issues encountered, and proposals for their resolution to MPWIELMD/PMU.

(v) Take responsibility for preparation of monthly reports, review and finalisation of sector reports and preparation of the project completion report to PMU, the Government and ADB.

(vi) Engage with other third parties, including the detailed designers regarding any aspects of the work on site that requires their input.

9. The Port Engineer/Team Leader shall spend a substantial portion of the assigned time in Tuvalu. The remainder of the assigned time allocation shall be to provide remote support intermittently during the remainder of the period of engagement.

10. Structures Specialist (international, minimum inputs: 1 person-month). The candidate should have a degree in civil engineering or equivalent, and at least 10 years of experience in maritime structures. Applied technical knowledge related to construction and work experience in the transport sector, and particularly maritime infrastructure or other similar sector projects is desired. Experience in developing member countries will be desirable particularly in the Pacific region. Experience working on similar ADB funded projects is preferred. The key tasks of the Contracts Specialist would be as follows:

(i) As necessary evaluate requests for contract variations as a result of unforeseen field conditions or changes in project scope and facilitate resolution in accordance with contract provisions.

(ii) Support in the on site supervision of maritime structures. (iii) Assist in the preparation of monthly reports with contributions on project

implementation matters.

11. Resident Supervisor (international, minimum inputs: 8 person-months). The candidate shall possess a diploma or equivalent in civil or structural engineering. The candidate should have at least 10 years of experience in construction supervision with 5 years of supervision of maritime projects, preferably in remote communities the Pacific or similar regions. The candidate should have experience in mass concrete pours and working in an inter-tidal zone. The key tasks of the Resident Supervisor include, but shall not be limited to the following:

(i) Fulfil the role of the Resident Engineer or similar, as instructed by the Engineer, and carry out any delegated duties assigned by the Engineer, under the terms of the construction contract.

(ii) Carry out daily supervision and quality assurance activities of civil works and equipment installations.

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(iii) Assist the PMU in civil works contract management in terms of cost, time and quality control.

(iv) Assist the PMU and contractor in phasing civil works and installation activities to deliver the project in a timely fashion.

(v) Review and recommend for approval the contractor’s installation methodology and work plans.

(vi) Identify and propose solutions to mitigate or prevent impediments related to construction, equipment installation, quality of works, and other issues as they arise.

(vii) Carry out other supervision tasks as request by the PMU and consultants team leader.

(viii) Assist in the preparation of monthly reports with contributions on contract supervision and construction progress matters.

12. The Resident Supervisor shall be present on the island of Niutao for the entire duration of the construction period (currently expected at 7 months). The Consultant shall ensure alternative arrangements are in place during this time if the Resident Supervisor is “out of country” in order to ensure that adequate supervision is maintained at the site. The Resident supervisor shall provide intermittent support during the remainder of the engagement, particular during early project activities which may involve preparatory works of the Contractor off site (e.g. pre-casting operations).

13. Gender and Social Development Specialist (international input, 2 person-month, intermittent and national input, 6 person-months, intermittent). The international specialist will have a university degree preferably advanced studies and over 10 years of relevant experience in the field of sociology, anthropology, gender and development studies and related field. The national specialist will have a university degree and at least 5 years of relevant experience in related field. The specialists will be responsible for the task below. The national consultant will spend more time in providing support during GAP implementation, monitoring and reporting while the international consultant will be mostly in-charge of overall gender capacity building activities and identifying and mitigating any social risks which should be considered during implementation. The key tasks of the social development specialists would be as follows:

(i) Assist the MPWIELMD /PMU and support them in implementing the GAP and supervision of proposed gender activities including amend and/or develop GAP activities during implementation, if required.

(ii) Ensure all project stakeholders are aware of the GAP and the gender actions required.

(iii) Produce relevant instruction and awareness materials for raising understanding and awareness on gender and safety among target community, especially women and girls, and civil works contractor.

(iv) Provide support to stakeholders on gender trainings, awareness raising (e.g. reviewing content).

(v) Establish gender-disaggregated baseline data in the project area to develop socioeconomic monitoring indicators according to project design and implementation plans (including training and improvement activities) and assist in collecting data reflecting progress on GAP targets and indicators and assist in preparing GAP progress report for submission to ADB.

(vi) Assist in resolving any project related grievances or issues on land or social aspects particularly affecting vulnerable groups such as women that might arise during construction.

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(vii) Assist in the implementation of safeguards activities such as ensuring that lease agreements are in place prior to any civil works and manage social safeguards issues which may arise during implementation. In case of any unanticipated safeguards impacts and/or social risks and issues during construction, prepare necessary safeguards documents and/or mitigating measures in compliance with ADB requirements.

(viii) Assist in implementing stakeholder communication strategy including ensuring women’s participation during all meetings and consultations and identification of key issues affecting women’s participation and engagement in project activities and how to address issues.

(ix) Assist in the preparation of quarterly reports on GAP implementation progress and any issues concerning social safeguards for the semi-annual safeguards monitoring report.

14. Environmental specialists (international – 6 months; national – 18 months). The environmental specialists will be core members of the supervision consultant and support the MOI and PMU. The international specialist will have a degree in environmental science or planning or related field with at least 10 years of experience environmental assessment and management including supervising EMP requirements of construction contracts in maritime or related projects. Experience in developing countries and in the Pacific is essential. The national specialist will have a degree in environmental science or planning or related field and at least 5 years’ experience in environmental management during project implementation.

(i) Ensure that required environmental safeguards (including requirements under the country safeguard system (CSS) as well as the SPS) are implemented for the project.

(ii) Assist PAT in applying to for national environmental clearances and development consent for the project as required by the CSS.

(iii) Ensure that any conditions included in the development consent issued for the project are integrated into the bid and contract documents.

(iv) Provide induction and/or training on the environmental management aspects of the project to MOI, PMU and PAT staff and the contractor.

(v) Review, as required provide comments to strengthen, and advise the Resident Engineer when, the construction environmental management plan (CEMP) prepared by the contractor is satisfactory to be approved.

(vi) Establish the environmental management system (EMS) for the project. (vii) Assist, as required, the construction contractor to apply for permits and licenses as

required to comply with national laws and regulations (biosecurity and phyto-sanitary certificates, waste discharge permits, water management, permits or licenses for materials extraction etc) .

(viii) Monitor and report on the compliance of the construction contractor with the development consent conditions and approved CEMP and complete monitoring checklists that will be compiled into quarterly progress reports and semi-annual safeguards monitoring reports.

(ix) Prepare corrective actions requests, as required, for non-conformances, to be issued as instructions to the contractor by the Resident Engineer.

(x) Coordinate and work with the PMU, contractor and supervision consultant to implement the project’s communications and consultation plan.

(xi) Coordinate and work with the PMU, contractor and supervision consultant and other concerned stakeholders to implement the project’s grievance redress mechanism.

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(xii) Provide guidance, as required, to other PMU or project-related staff on the environmental safeguard requirements of the project.

(xiii) Recommend investigations and recommend corrective actions, as necessary.

15. Office Accounts and Administrative Assistant (national input, 36 person-months, full time). The national accounts and administrative assistance will have an accounting, administrative or equivalent qualification at diploma level or above, and preferably at university degree level. The candidate will have excellent written and oral skills in English and will have over 5 years of relevant experience in the fields of accounting and/or office administration, preferably including for projects or programmes funded from external bilateral or multi-lateral agencies. The key tasks of the office accounts and administrative assistant would be as follows:

(i) Carry out such administrative and coordination tasks as required for smooth and

timely delivery of the services. (ii) Liaise as necessary with government agencies and assist in the arranging of

meetings, exchange, processing and approval of documents and permits as necessary for carrying out the services.

(iii) Maintain project accounts in accordance with requirements of the PMU and of the ADB.

(iv) Carry out any other such duties as required by the consultant’s Team Leader.

Outputs 16. Following are the detailed description of reports to be produced. 17. Monthly Progress Reports. Monthly progress reports covering all aspects of construction management and supervision will be prepared and submitted to the PMU. Details to be reported in relation to project management include physical and financial progress of each component, updated estimate of overall project cost, updated implementation schedule, and the status of project fund claiming and disbursement. In relation to the civil works and construction supervision, the monthly progress reports cover physical progress, implementation status of safeguard aspects, inputs of personal and equipment resources, invoices processed, contract variations requested and processed, and payment status, among others. In addition to factual reporting, issues arising from project activities will be reported, along with discussion on the action taken and/or possible solutions. In the event that project activities are anticipated to be low, the Task Force and MPWIELMD in consultation with ADB may decide that a monthly progress report for the coming month is not necessary. In such case, the decision will be delivered to the CSC at least 2 weeks prior to the start of the month. 18. Semi-annual Safeguards Monitoring Reports. Environmental and Social safeguard monitoring will be also reported semi-annually and key safeguards issues included in monthly progress reports. 19. Project Completion Report. The CSC will prepare for ADB a Project Completion Report on completion of the construction project, which will summarize all project activities to the end of project implementation period and will evaluate project performance. The contents, at a minimum, will cover all aspects specified in ADB’s Guidelines for the Evaluation of Public Sector Operations.17

17 https://www.adb.org/documents/guidelines-preparing-performance-evaluation-reports-public-sector-operations

https://www.adb.org/documents/guidelines-preparing-performance-evaluation-reports-public-sector-operations

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20. Site Records. At the completion of the construction stage, the Consultant shall provide to the Employer a full detailed set of all site records maintained by the Resident supervisor. This shall include, as a minimum, all site reports, materials approvals, test records, photographs, instructions, variations, inspection certs, etc. The information shall be provided in paper and electronic (PDF) format. E. Implementation Arrangements 21. The expected commencement date of this assignment is on 1 March 2019 and the total engagement period is estimated for 15 months. The contract will be time-based. 22. The consultant will work under the guidance of the PMU and MPWIELMD, and in good coordination with ADB staff in charge, the Government’s Task Force, MPWIELMD ’s Project Director, outer island communities, and other stakeholders. For daily activities and contractual matters, the consultant will coordinate with the PMU.

23. The consultant shall provide any office space and any other necessary facilities and equipment necessary in Funafuti for the appropriate execution of the construction supervision activities. 24. Office Facilities for the resident supervisor on Niutao will be provided under the Construction Contract. 25. Procedure for the Review and Acceptance of Outputs. Each of the outputs will be reviewed by the government and ADB. Draft outputs shall be submitted to Project Director through the PMU in both hard and soft copies, and to ADB in soft copy. The CSC will incorporate the government’s comments in finalizing the documents.

26. ADB Guidelines. Outputs must follow ADB guidelines, policies and templates (refer to ADB website).

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Program Manager

Scope of Works:

The Program Manager will undertake key tasks and duties under both donor funded projects including:

• Lead the OIMI and MICRO Projects Program and manage the day to day activities of the Program Management Unit (PMU);

• Providing regular supports to Project Managers in delivering their roles and responsibilities;

• Provide effective reviews of all Project Reports, Invoices, Payments and advice MPWIELMD on findings;

• Provide support in organizing meetings, taking meeting records and facilitating approved MPWIELMD inputs in a timely manner;

• Provide support in contract administration of consultancy services; • Monitor and review project activities and consultant’s deliverables; • Provide support in coordination of the procurement of goods, works and services. This

includes: o Assist in drafting/finalizing Terms of Reference/Specifications as required for

activities; o Assist in monitoring of all MICRO and OIMIP contracts; o Assist in working through and advising the Task Force Members to obtain

necessary clearances / approvals from MPWIELMD and others as necessary; • Provide Support in the contract management of all activities financed under the Projects,

in liaison with MPWIELMD , including review of deliverables with the MPWIELMD and ensuring appropriate responses are received on time;

• Ensuring annual auditing of Projects Accounts is carried out in accordance with World Bank’s and ADB requirement

• Ensuring in obtaining necessary feedback and acceptance to deliverables to facilitate payment of invoices;

• Provide support in the provision of relevant information in the preparation of the Project Quarterly Reports for MICRO and OIMI Projects, in accordance with the requirements of the respective Project Legal Agreements.

• Provide oversight and coordination of the monitoring system of the projects; • Provide support to and participation in all WB and ADB missions; • Implement Projects communications initiatives and plans and release news through

Radio Tuvalu and other social media. • Responsible for development of project’s reports.; • Responsible in ensuring the highest performances of PMU staff is always maintained • Responsible for adding values that benefitting Tuvalu through the Designs and works of

Consultants; • Responsible for maintaining the highest standard of effective communication throughout

the life of the Program. • Carry out other related tasks as directed by Government.

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Project Manager

Scope of Works:

The Project Manager will assist the PMU Program Manager to implement and manage the investments under the OIMIP, especially in Niutao and Nui, in line with the ADB and Government requirements. The tasks of the Project Manager include the following:

• Assist in the day-to-day implementation of tasks under the OIMIP. • Produce regular project status reports. • Supervise all consultants and contractors. • Monitor the quality of the consultants and contractor deliverables and outputs. • Organizing meetings, taking meeting records and facilitating decision making in a timely

manner. • Review all deliverables such as the monthly progress reports. • Carry out field inspections to ensure that engineering designs are adequately

implemented. • Carry out contract management of all activities financed under the OIMIP, in liaison with

MPWIELMD , including review of deliverables with the MPWIELMD and Program Manager, ensuring appropriate responses are received on time.

• Assist in conduction of policy dialogue with Government and other stakeholders on project implementation issues.

• Assist the coordination of the monitoring system of the project. • At the direction of the Program Manager, support the implementation of the project’s

communications initiatives and plans. This will include writing of project articles for updating of relevant websites and stakeholders, as well as supporting other initiatives as these are approved (e.g. social media sites etc.).

• Assist any design changes during project implementation as necessary. • Coordinate the procurement of goods, works and services, including:

o Assist in drafting/finalizing terms of reference/specifications as required for activities

o Assist in monitoring of all contracts o Assist in working through and advising the Task Force Members to obtain

necessary clearances / approvals from MPWIELMD and others as necessary • Supporting the Program Manager and Project Accountant in ensuring that annual

auditing of the project accounts is carried out effectively. • Assist in obtaining necessary feedback and acceptance to deliverables to facilitate

payment of invoices. • Assist in the provision of relevant information in the preparation of the project quarterly

reports. • Liaise with the ADB on any issues related with the implementation of the project and

maintain close coordination in this activity with the Program Manager to avoid duplication of messages or confusion.

• Provide support to and participation in all WB and ADB missions; • Other activities as may reasonably be required to support effective project

implementation.

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Project Accountant

Scope of Works:

The Project Accountant will undertake key tasks and duties and is responsible to the Program Manager of the ADB Projects including:

• Lead coordination of day to day implementation of all account processing of ADB and WB Projects the OIMI and MICRO Projects.

• Produce regular updates of Projects Accounts to Program Manager, Project Director, Members of Task Force and MPWIELMD Senior Executives including Hon. Minister.

• Maintain administering the financial management system for the projects in accordance with the relevant ADB and WB guidelines concerning administration of disbursement, and arrangement of direct payments to contractors.

• Maintain an exclusive project account for each project and maintain it according to the Government accounting principles.

• Provide the necessary accounting services to ensure effective project administration. • Provide inputs to the monthly progress report. • Coordinate with the Auditor General Office and arrange annual auditing of each project

account, ensuring that the ADB as well as WB’s requirements of audit are met. • Review the consultant and the contractor’s progress claim and certify them for payment

in close coordination with each Project Manager and also with Program Manager. • Initiate timely disbursement of project funds in accordance with ADB and WB Loan

Disbursement Handbook (2015, as amended from time to time) • Manage the Government counterpart funds and record in-kind contribution. • Assist in donor negotiation on financial management matters, and attend meetings as

required. • Provide support to Government in all areas of implementation as required. • Carry out other related tasks as directed by Government and Program Manager. • Supporting the Program Manager in ensuring annual auditing of the project accounts is

carried out in accordance with World Bank’s and ADB requirement • Assist in obtaining necessary feedback and acceptance to deliverables to facilitate

payment of invoices; • Assist in the provision of relevant information in the preparation of the Project Quarterly

Reports for MICRO and OIMI Projects, in accordance with the requirements of the respective Project Legal Agreements and in close liaison with the Program Manager

• Assist in the oversight and coordination of the monitoring system of the project; • Assist in providing support to and participation in all WB and ADB missions; Assisting

the development of project reports as directed; • Other activities as may reasonably be required to support effective project

implementation.

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Attachment 3: Environment safeguards checklist and contents of monitoring report

Date:

Loan/Grant No.: Project Name:

Implementing Agency

1) Categorization

(Original) A B C FI

(additional financing, if any) A B C FI

(Please complete the following sections if the project has been categorized as A, B or FI)

2) Planning

IEE/EIA No. of IEE/EIA _________ EMP

No If no, actions?

EMP Finalizeded or Updated after Detailed Design No If no, actions?

CEMP submitted, reviewed and approved: No If no, actions?

(Attach a list of subprojects and status if necessary.)

3) Institutional Setup

No If no, actions?

If yes, Name: Since: /(month) (year)

Environmental Specialist/Consultant Mobilized: No If no, actions?

If yes, National Specialist's Name: Since: /(month) (year)

If yes, International Specialist's Name: Since: /

No If no, actions?


Grievance Redress Mechanism Established: No If no, why?

Allocation of Government Budget: No If no, actions?

If yes, amount$:

4) Monitoring and Reports

Internal Monitoring System Established: No If no, actions?

Compliance monitoring incorp. into Q Progress Reports: No If no, actions?

External Monitor Engaged (if needed): No If no, actions?


Monitoring Report Submitted to ADB: No If no, actions?

If Yes, provide information below

5) Field Review with Participation of Safeguard Specialist/Officer/Staff Consultant No If no, actions?


Type of mission:

IEE/EIA Disclosed and Posted on ADB Website: Yes

Yes

Approval Date: Closing Date: Cumulative Progress (%):

Yes

Mission Date (m/yr)

Participants (safeguard specialist/officer/staff consultants)

Report 2Report 1Baseline Report

Report 4Report 3

PARD Safeguards Implementation Checklist: Environment

PROJECT INFORMATION

Documents:

Project Team Leader(s):

Name of ADB Reviewer

PIU/PMU Environment Staff Assigned:

Yes

EARF

Submission Date (m/yr)

ADB Review Date (m/yr)

Web-posting Date (m/yr)

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Participation of Gov. Environment Agency/Division: Yes

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Overall safeguard rating (e-Operation):

S = Satisfactory; PS = Partly Satisfactory; US = Unsatisfactory

7) Status of Implementation of EMP Activities (Please provide a cross reference if it is already covered under Section 6 above)

Yes/No

8) Major Issues or Complaints (Cumulative)

*Add rows as needed.

Prepared by: Confirmed by: Confirmed by:

Team Leader: Safeguard Specialist/Officer:

Date: Date: Date:

To: Sector Director/Country Director

cc: Project Team Leader; PARD Safeguard Specialist

6) Compliance with Loan Covenants

Item # Describe status of compliace

List of key covenants in loan and project agreement

Covenant

Issue

Proposed Action(s)

*Note: Yes ; No; Not yet due

Final Resolution of Issue

Compliance rating*

Items

Final Resolution of Issue

Follow-up Issues/Actions

Issue

Proposed Action(s)

Description

Follow-up Issues/Actions

Describe Implementation Status

Item

1

2

IEE = initial environmental examination; EIA = environmental impact assessment; EMP = environmental management plan; FI = financial intermediary; MTR =

mid-term review; PCR = project completion review; PIU/PMU = project implementation/management unit; TL = team leader; EARF = environmental assessment

and review framework; SS = safeguard specialist

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Outline Contents of Environmental Semi-Annual Monitoring Report Heading/Section Contents Introduction Brief background on the project and subproject;

Institutional arrangements for project management and environmental management;

Monitoring Activities Who participated in the monitoring; Methodology for monitoring (whether checklists prepared etc); When the monitoring was undertaken and what period it covers; Summary of other monitoring undertaken in the period (i.e. form contractor’s monthly reports and if any survey/sample monitoring undertaken); Main activities – observations/inspections, consultations, interviews with contractor staff etc

Works in Progress Details of the works being undertaken, (with photographs); Include whether any environmental training/awareness has been provided to contractor staff in the period (what, by whom etc)

Monitoring Results and Actions Required

Whether works and measures comply with the approved EMP/CEMP; Should follow sequence of items identified in EMP/CEMP and verify that all mitigations measures noted are being implemented; Corrective actions cited (date to be resolved and person responsible on contractor team and verification by IA/PMU)

Summary and Conclusions Summary of main findings; Main issues identified and corrective actions noted; Can include summary table which can be updated each period to track completion of actions required

Attachments Monitoring checklist (based on items identified in the EMP/CEMP) refer annex 1 Additional photographs Additional information as required

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Attachment 4: Social safeguards checklist and contents of monitoring report Checklist for Safeguard Supervision/Monitoring (Resettlement)

Loan/Grant No.: Project Name:

Project Analyst:

1) Resettlement Categorization (Original) A B C FI (additional financing, if any) A B C FI

(Please complete the following sections if the project has been categorized as A, B or FI involving land acquisition/resettlement issues) 2) Resettlement Planning

RP Number of RPs_________ ESMS

RP Finalized or Updated after Detailed Design: No If no, actions? (Attach a list of subprojects and status if necessary.)

No If no, actions?

No If no, actions?

3) Institutional Setup for Resettlement No If no, actions?

If yes, Name: Since: / (month) (year)

Resettlement Specialist Consultant Mobilized: No If no, actions? If yes, Name: Since: /

(month) (year) Grievance Redress Mechanism Established: No If no, why?

Allocation of Government Budget: No If no, actions? If yes, amount$:

4) Resettlement Monitoring and Reports

Internal Monitoring System Established: No If no, actions?

External Monitor Engaged (if needed): No If no, actions? If yes, Name: Since: /

(month) (year) Monitoring Report Submitted to ADB: No If no, actions?


5) Resettlement Field Review with Participation of Safeguard Specialist/Officer/Staff Consultant No If no, actions?


Type of mission

Cumulative Progress (%):

Checklist for Safeguard Supervision: Involuntary Resettlement

PROJECT INFORMATION

Approval Date: Closing Date:

Mission Date (m/yr)

Project Team Leader(s):

Name of safeguard specialist/officer/staff consultants

Resettlement Planning Documents: RF

Yes

Final/Updated RP Disclosed and Posted on ADB Website: Yes

Compensation Rates Approved by the Government: Yes

PIU/PMU Resettlement Staff Assigned: Yes

Yes

Yes

Yes

Yes

Yes

Yes

Baseline Report Report 1 Report 2 Report 3 Report 4

Submission Date (m/yr) ADB Review Date (m/yr) Web-posting Date (m/yr) Name of ADB Reviewer

Yes

55

Suggested Contents of Resettlement Monitoring Report

Heading/Section Contents

Introduction Brief background on the project/subproject and progress status The project’s category and planning documents (original, updated or new plans) on resettlement impacts Institutional arrangements and budget allocation for resettlement/social management; Arrangement for the monitoring

Monitoring Activities Methodology for monitoring (whether checklists prepared etc.); What period the monitoring covers Main activities – site visits, consultations, survey etc.

Monitoring Results and Actions Required

Progress and performance in implementation of RPs and other programs (how they were implemented, what are the outputs, etc.) Results on consultations, disclosure and grievance redress (whether they have been effective, level of satisfaction of affected persons [AP] with various aspects of the resettlement plan [RP], public awareness of the compensation policy and entitlements will be assessed among APs.) Whether the implementation comply with the approved RPs (e.g. whether compensation rates were at replacement cost, full payment made to all APs sufficiently before land acquisition; prompt attention to unforeseen damages or losses, to ensure APs are fully compensated for losses) Results on outcome (whether APs were able to restore livelihoods and productive activities) Compliance on monitoring and disclosure (whether reports have been submitted, posted on website) Whether any issues and corrective measures identified to achieve the RP objective. If yes, actions with target dates and responsible agency/person) Follow-up item/plan for next report

Summary and Conclusions Summary of main findings; Main issues identified and corrective actions noted; A table on follow-up action which can be updated each period to track completion of actions required including progress of the follow-up of problems and issues identified in the previous report

Attachments Monitoring checklist (based on items identified in the RPs) Photographs Additional information as required