Download - Project Administration Manual - Asian Development Bank · Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative

Project Number: 38417 Grant Number: G0219 March 2013

Nepal: Community Irrigation Project

Project Administration Manual

Contents

ABBREVIATIONS IV

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 2

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

III. PROJECT MANAGEMENT ARRANGEMENTS 5

A. Project Implementation Organizations – Roles and Responsibilities 5 B. Key Persons Involved in Implementation 6 C. Project Organization Structure 8

IV. COSTS AND FINANCING 11

A. Detailed Cost Estimates by Expenditure Category 13 B. Allocation and Withdrawal of Grant Proceeds 14 C. Detailed Cost Estimates by Financier 15 D. Detailed Cost Estimates by Outputs/Components 16 E. Detailed Cost Estimates by Year 17 F. Contract and Disbursement S-curve 18 G. Fund Flow Diagram 19

V. FINANCIAL MANAGEMENT 21

A. Financial Management Assessment 21 B. Disbursement 21 C. Accounting 22 D. Auditing 22

VI. PROCUREMENT AND CONSULTING SERVICES 23

A. Advance Contracting and Retroactive Financing 23 B. Procurement of Goods, Works and Consulting Services 23 C. Procurement Plan 25 D. Consultant's Terms of Reference 25

VII. SAFEGUARDS 26

VIII. GENDER AND SOCIAL DIMENSIONS 26

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 27

A. Project Design and Monitoring Framework 28 B. Monitoring 32 C. Evaluation 34 D. Reporting 34 E. Stakeholder Communication Strategy 34

X. ANTICORRUPTION POLICY 35

XI. ACCOUNTABILITY MECHANISM 35

XII. RECORD OF PAM CHANGES 35

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Ministry of Local Development (MLD) through the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR), District Development Committees (DDCs) and the Rural Microfinance Development Center (RMDC) are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the recipient and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by DOLIDAR, DDCs and RMDC of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At Grant Negotiations the recipient and ADB shall agree to the PAM and ensure consistency with the Grant agreement. Such agreement shall be reflected in the minutes of the Grant Negotiations. In the event of any discrepancy or contradiction between the PAM and the Grant Agreement, the provisions of the Grant Agreement shall prevail.

After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

Abbreviations

ADB = Asian Development Bank AFS = audited financial statement C&P = consultation and participation CIP = Community Irrigation Project DADO = district agriculture development office DDC = district development committee DDF = District Development Fund DDR = due diligence report DICC = district implementation coordination committee DMF = design and monitoring framework DOA = Department of Agriculture DOI = Department of Irrigation DOLIDAR = Department of Local Infrastructure Development and Agricultural Roads DTO = district technical office EARF = environmental assessment and review framework EMP = environmental management plan FAC = Feasibility Approval Committee GAP = Gender Action Plan GDP = gross domestic product GON = Government of Nepal ICB = international competitive bidding IEE = initial environmental examination IP = indigenous peoples JV = joint venture LDO = local development officer MFI = microfinance institutions MLD = Ministry of Local Development NCB = national competitive bidding NGOs = nongovernment organizations PAM = project administration manual PCU = project coordinating unit PICC = Project Implementation Coordination Committee PSC = project steering committee QBS = quality-based selection QCBS = quality- and cost based selection RMDC = Rural Microfinance Development Center RRP = report and recommendation of the President to the Board SOE = statement of expenditure STW = shallow tube wells TOR = terms of reference VBFT = village-based field team WUA = water users association

I. PROJECT DESCRIPTION

A. Project Summary 1. The Community Irrigation Project (the project)1 will develop or improve small-scale irrigation systems in 12 districts in Nepal through a community-driven process targeted to the poor, women, and other disadvantaged groups. Small irrigation systems are defined as systems having less than 25 hectares of irrigation area in the hills and mountains and less than 200 hectares in the Terai plains. The participating districts were selected based on high poverty, food insecurity and irrigation potential, and include Kanchanpur, Kailali, Dang, Kapilvastu in the Terai plains, Doti, Salyan, Rukum, Rolpa, Pyuthan in the hills, and Bajhang, Jumla, Mugu in the mountains. As the first large-scale intervention in small irrigation development, the project will demonstrate participatory irrigation planning and management and build the capacity of all levels of the Government for small-scale irrigation development. Farmers will form or strengthen their water users associations (WUAs) to apply for the project support. The project will provide support to rehabilitate and build new surface water irrigation schemes and to develop groundwater irrigation through shallow tube wells (STW). It will also facilitate access to micro-finance support and provide extension services. For farmers installing STW without access to electrification, the project will provide connection to the electricity network. WUAs will in turn learn to manage water more efficiently and equitably, maintain their systems, and apply improved agricultural practices. B. Impact and Outcome

2. The expected impact of the project is to increase agricultural income of rural poor and socially-disadvantaged groups in Nepal. The project will contribute to Nepal's goal of increasing agriculture GDP per capita and the area under irrigation. 3. The outcome of the project is that poor, women, and other disadvantaged farmers in target communities intensify and diversify (toward higher value crops) agricultural practices. With efficient utilization, more reliable and increased availability of irrigation water, acquired irrigated agricultural skills, and access to required production inputs, crop yields are expected to increase by at least 15% in subprojects within five years of construction. The Project will cover an additional 17,000 ha (4,000 ha in hills and mountains, and 13,000 ha in Terai) of improved and new irrigated area. C. Outputs 4. To achieve the outcome, the project has three expected outputs: (i) WUAs efficiently manage improved irrigation infrastructure; (ii) Participating farmers apply improved agriculture practices and have access to micro-finance; and (iii) Government capacity to plan and coordinate small-scale irrigation projects is enhanced. 5. Improved Irrigation Infrastructure. The project will respond to requests of WUAs to improve or provide new small-scale irrigation infrastructure. These may include (i) the rehabilitation and extension of existing farmer-managed or new surface water irrigation systems, (ii) pond/tank systems with reticulated pipe conveyance and distribution systems, (iii) pumped (or “lift”) irrigation systems, and (iv) STWs. The project aims to improve water use efficiency and productivity within customary water withdrawal practice through improved conveyance and use

1 A project preparatory technical assistance grant of $700,000 was provided.

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of micro-irrigation application and water conservation technologies. The project will strengthen WUAs to represent all stakeholders within the command area and improve their ability to manage their irrigation systems and cope with socio-economic changes. WUAs will be assisted to prepare water management plans to ensure equitable, adequate, and efficient distribution of irrigation water. 6. Improved Agriculture Practices and Access to Micro-Finance. Support will be provided to improve farmers' access to inputs and markets, and enhanced production skills, in order to help farmers achieve their targets in cropping intensity and yields. The project will help facilitate access to micro-credit for agricultural inputs, irrigation equipment, and irrigation infrastructure operation and maintenance by enabling local micro-finance organizations to offer savings and credit services to the project subproject areas. Supplementary capacity development will be targeted toward disadvantaged groups to enable their effective participation and linkages to third party programs relevant for their needs. 7. Government Capacity Building. Although the executing agency is well-experienced in managing rural roads and other local infrastructure projects, and has strong oversight and working relationships with District Development Committees (DDCs) and their district technical offices (DTOs), both the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) and the DDCs will be managing small irrigation services for the first time. Capacity development will therefore be a major thrust of the project. The DTOs will acquire new and upgraded skills in small-scale irrigation design and project implementation, and DDCs and community-level leaders will learn how to effectively plan and manage subproject selection and implementation in a transparent manner and targeted to the poor, women, and disadvantaged.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities 2010 2011

Indicative Activities July Aug Sep Oct Nov Dec Jan Feb Mar

Inclusion of Project in Government Budget, with Highest Development Priority

EA, GON

Appointment of Project Coordinator EA

Grant Agreement Negotiated and PAM Agreed EA

Recruitment of Individual Procurement Consultant EA

Invitation for Expressions of Interest EA

Issuance of Consultant RFP EA

ADB Board Approval ADB

Grant Signing ADB, EA

Grant Effectiveness ADB

Consultant Contract Negotiations EA (May 2011)

Consultant Mobilization EA (July 2011)

Who's responsible

ADB = Asian Development Bank, EA = Executing Agency; GON = Government of Nepal

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B. Overall Project Implementation Plan

Tasks

1.1

1.1.1

1.1.2

1.1.3

1.1.4

1.1.5

1.1.6

1.1.7

1.1.8

1.1.9

1.1.10

1.1.11

1.1.12

1.2

1.3

1.4

2.1

2.2

2.3

2.4

2.5

Community Irrigation Project

Capacity Building of WUAs in construction supervision (Oct 2012 - Feb 2016)

Feasibility studies /detailed design, WUA agreement and tendering (Mar-Aug 2012)

Selection by villages and reconnaissance (Jan-Feb 2012)

Output 2. Participating farmers apply improved agriculture practices and have access to micro finance


Batch 4 Subprojects : January 2015- April 2016

Construction (Nov 2013 to mid-April 2014)

Selection by villages and reconnaissance ( Jan-Feb 2014)

Construction (Nov 2014 to mid- April 2015)

Feasibility studies /detailed design, WUA agreement and tendering (Mar- Aug 2014)

Batch 3 Subprojects : January 2014- April 2015



Establishment of Farmer Field Schools on each Subproject on cereal and high value crops

Provision of matching grants to WUAs who deposit their first annual non-recurrent maintenance fund contribution in their account at a local MFI

Training of Trainers (district level) for cereal crop seed selection; vegetable seedling production; nursery management; off season vegetable production; soil management; weed and pest control (2012 -2013)

Short duration courses and demonstrations on irrigated crop husbandry practices

Capacity Building of local MFIs to service farmers with input loans. January 2012- December 2015

Feasibility studies /detailed design, WUA agreement and tendering (Mar-April 2015)

Capacity Building of WUAs to maintain irrigation infrastructure and manage equitable water distribution and preparation of O&M and water management plans

Training and associated field demonstrations to farmers in micro irrigation application techniques

Feasibility studies /detailed design, WUA agreement and tendering (Mar-Aug 2013)

2014 2017

Batch 2 Subprojects : January 2013 -April 2014

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Output 1. WUAs efficiently manage improved irrigation infrastructure .

A. DMF

2012

Batch 1 Subprojects : January 2012 -April 2013


Irrigation Infrastructure Improvement

2016

4 71

2015

5

20112010

2

2013

3

4

Tasks

3.10

3.11

3.12

3.13

3.14

3.15

3.16

1

2

3

4

5 Recruitment of Project Implementation Consultants (Joint Venture) (by June 2011)

6

7

8

9

10 Monitoring & Evaluation data collection and reports(Nov 2011- Jul 2017)

5 6

Appointment of District Irrigation Engineers at DTOs (by mid September 2011)

Mobilization of PIC District Coordinators (November 2011)

Mobilization of PIC Technical Support Teams (November 2011)

Recruitment of Individual Procurement Consultant - advance action (Sep 2010 )

2010 2011

Appointment of Project Coordinator (by mid August 2010)

Training for District Agriculture Development Officers on Working in Partnership ( February 2012 and December 2013)

Mentoring of village leaders and ward citizen groups to nominate subprojects that meet selection criteria (January -February 2012 to 2015)

Mentoring and support- institutional, technical and agricultural - of WUAs (January 2012 to July 2017)

B. Management Activities

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2016 2017

1 2 3 4

2014 20152012 2013

Project information dissemination in targeted implementation area wards (annually - December 2011- 2014)

Output 3. Government capacity to plan and coordinate small-scale irrigation projects is enhanced

District Rapid Assessments for irrigation potential in areas (ilakas) categorized as disadvantaged (November 2011)

Mentoring of District Development Council to reach consensus on targeted project implementation areas (December 2011)

Orientation and refresher training for DTO and PIC engineers on appropriate small irrigation infrastructure design (January 2012 and December 2013)

Project Effectiveness (March 1, 2011)

Project Start (July 16, 2011)

Mobilization of PIC Village Based Field Teams (November 2011)

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

Project implementation organizations

Management Roles and Responsibilities

Executing agency : monitor and guide overall project planning, management and implementation activities

monitor and report on both physical and financial progresses, including maintaining financial accounts

Ministry of Local Development (MLD) through DOLIDAR

manage procurement, consulting / NGO services and grant disbursement

monitor project progress and evaluate project benefits and social and environmental impacts to meet safeguard requirements

arrange necessary trainings for DTOs, District Agriculture Development Office (DADOs) and beneficiaries in subproject areas

coordinate with project implementation DDCs provide policy guidance

Project Steering Committee (PSC) review project performance

Project Implementation

Coordination Committee (PICC)

review project progress and resolve implementation issues

DDC Feasibility Approval Committee

review and approve feasibility studies of subprojects

DDC overall responsibility for project implementation in

their respective districts, including safeguard compliance

coordinate with all relevant line agencies DTO review design, and verify quantities and cost of

subprojects check construction quality of subproject maintain project account at a district level take measurement and release payments to WUAs

or contractors provide necessary trainings for beneficiaries in

subproject areas Monitoring technical support teams, district

coordinators, and village-based field teams in subproject implementation

DADO oversee planning of agricultural extension program

in subproject areas, monitor implementation, and facilitate farm-to-market linkages

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Project implementation organizations

Management Roles and Responsibilities

provide capacity building trainings to farmers in coordination with DTO

District Implementation

Coordination Committee (DICC)

share implementation status with and coordinate among district stakeholders

Project Coordinating Unit (PCU) Management and Implementation Support

support PCU in overall project implementation, procurement and monitoring at the central level

Technical Support Team

support DTOs in planning, design, construction supervision of subprojects

support DTOs to provide necessary capacity development trainings

District Coordinator and Village Based Field Team

manage districts and communities in subproject areas in both infrastructure and agricultural programs from the subproject identification to post construction operation and maintenance support stages.

Rural Microfinance

Development Center (RMDC)

establish (as necessary), build capacity, and monitor micro-finance institutions and cooperatives to provide services to subproject areas

Monitoring of all micro-financing activities and expected impacts

Department of

Irrigation (DOI) development division

member of the Feasibility Approval Committee (FAC) for surface water subprojects

DOI groundwater

branch office member of the FAC for groundwater subprojects

B. Key Persons Involved in Implementation

Executing Agency DOLIDAR Officer's Name Prakash Thapa

Position Project Coordinator Telephone TBD Email address TBD

Office Address Jawalakhel, Lalitpur, Nepal

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ADB Agriculture, Natural Resources and Social Services Division, South Asia Department

Staff Name Takashi Matsuo Position Director Telephone No. +63-2-632-4444 Email address [email protected]

Mission Leader Staff Name Cindy Malvicini Position Sr. Water Resources Management

Specialist Telephone No. +63-2-632-4444 Email address [email protected]

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C. Project Organization Structure

Technical Design & Capacity Development

Project Coordination Unit (PCU)

Project Coordinator

District Development Committee

Local Development Officer

Village Based Field Teams

Irrigation Subprojects

Project Steering Committee

DOLIDAR

PCU Support Unit

District Technical Office

Irrigation and Other Infrastructure Section Head (District Irrigation Engineer)

District Coordinator

District Implementation Coordination Committee

Rural Microfinance Development Center

Existing Organizations (Public)

Consultants / NGOsfor CIP

Legend

Existing Organizations (Private, Semi-private,

NGO)

District Agriculture Development Office

Technical Support Team Nepal Electricity Authority

Ministry of Local Development

Project Implementation Coordination Committee

Feasibility Approval Committee

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1. Central Level

8. The arrangements and responsibilities for project management and implementation at the central level and decentralized level will be in accordance with the provision of Schedule 4 of the Grant Agreement. The executing agency for the Project will be MLD through DOLIDAR will be the central implementing agency for central-level activities. 9. Project Steering Committee (PSC): Within three months of the Effective Date, the Project Steering Committee (PSC) will be established chaired by Secretary, MLD. The members include directors general from DOLIDAR, Department of Agriculture (DOA), and DOI, joint secretary from MLD, and Deputy Director General from DOLIDAR. The Ministry of Finance and National Planning Commission will send representatives to Steering Committee meetings. The CIP Project Coordinator will serve as member secretary. The PSC will be responsible to (i) review and assess overall Project implementation, (ii) resolve policy issues, and (iii) facilitate inter-ministerial coordination. The PSC will meet at least once every year. 10. Project Implementation Coordination Committee (PICC). The PICC is comprised of the Director General, DOLIDAR (as chair); Deputy Director General (Other Infrastructure), DOLIDAR; Undersecretary (Planning), MLD; Senior Divisional Engineer (Planning), DOLIDAR; and CIP Project Coordinator (as secretary). It will meet regularly to review project progress and resolve any implementation issues. 11. Project Coordination Unit (PCU): Within one month of the Effective Date, DOLIDAR will have established and fully staffed a PCU. The PCU at all times during Project implementation will be headed by a full-time Project Coordinator of class two officer. The PCU will include at least the following full-time staff: two engineers,2 one accountant, one computer operator, and sufficient support staff. The PCU staff will be supported by one management and implementation technical support Joint Venture (JV) between an engineering firm(s) and NGO(s). The PCU Project Coordinator will report to the Secretary of the MLD through the Director General of DOLIDAR. 12. The PCU will coordinate, guide and monitor day-to-day Project implementation, including engineering, compliance with safeguard provisions including gender action plan, financial management, and procurement. Specific responsibilities of the PCU will include, but not be limited to: (i) detailed planning of Project implementation; (ii) guiding and monitoring DDCs/DTOs that participate in the Project; (iii) allocating and disbursing Project funds in accordance with mechanisms and processes established in the Recipient’s Local Body Financial Administration Regulations; (iv) liaising with other donor-funded projects in the rural infrastructure sector on day-to-day implementation matters; (v) preparing consolidated annual work plans; (vi) ensuring satisfactory implementation of the gender action plan, the environmental guidelines, the resettlement frameworks, and indigenous peoples framework and plans; (vii) ensuring timely compliance of agreed covenants; and (viii) preparing necessary progress reports as well as the Project completion report. 13. Rural Development Microfinance Development Center (RMDC). RMDC will be the Project implementing agency to facilitate and monitor micro-finance services in subproject areas. Specific responsibilities include: (i) facilitating the establishment of microfinance institutions (MFIs) and cooperatives which will provide microfinance services in all subproject

2 One of these engineers will be trained in procurement of civil works through national competitive bidding and will

serve as procurement specialist to advise and monitor civil works procurement done by DDCs.

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areas; (ii) implement a capacity development program for participating MFIs and cooperatives; and (iii) monitor the work of participating MFIs and cooperatives to ensure the project's expected targets for microfinance are met.

2. District Level

14. District Development Committees (DDC). The DDCs will be the Project implementing agencies at the district level. The Local Development Officer (LDO) will have overall responsibility for Project implementation in its respective district including coordination among all agencies involved in the project. Subproject costs for civil works and agricultural extension will be channeled through the DDC's District Development Fund (DDF) to the operating accounts of the various offices responsible for the project expenditures (see Fund Flow diagram). The DDCs will determine the sub-districts (named "ilakas") to receive Project benefits, using selection criteria provided by the Project. The detailed subproject implementation process is described in Annex 1 and the subproject selection criteria is in Annex 2. The beneficiary cost share scheme is in Annex 3. The Project's capacity development plan is in Annex 4. 15. District Technical Offices (DTO). The DTO of each respective DDC, headed by the DTO Chief, shall be responsible for technical and Project management matters. The Head of the Irrigation and Other Infrastructure Section of the DTO (called "District Irrigation Engineer") will serve as the responsible Government officer for day-to-day Project implementation in the district. By 15 September 2011, DOLIDAR will have posted a qualified District Irrigation Engineer who will head the Irrigation and Other Infrastructure Unit of the DTO. She or he will serve as the public engineer to (i) review subproject irrigation designs; (ii) verify quantities and cost; (iii) ensure construction quality; (iv) procure materials for subproject civil works (as necessary); and (v) release payments to WUAs and contractors. S/he will report regularly to the DTO Chief regarding the status of implementation progress. At least three of the District Irrigation Engineers will be female, to the extent possible. To ensure sustainability, MLD has agreed in principle to create a permanent position for an irrigation engineer for each of the 12 project districts and will submit the proposal to the concerned Government offices for further consideration and approval. In addition, each DTO will depute at least one subengineer and 1 assistant subengineer to work on CIP subprojects. 16. The DTO accounts officer will maintain Project accounts at the district level and will submit statements of expenditures to the PCU on a monthly basis. 17. District Agriculture Development Office (DADO). The DADO will oversee the planning of agricultural extension program in subproject areas, monitor implementation, and facilitate farm-to-market linkages for participating WUAs. Specific responsibilities include (i) oversee agricultural program planning in subproject areas performed by district NGOs engaged by the Project; (ii) serve on the Feasibility Appraisal Committee (FAC) to approve the subproject agricultural programs (in the context of the feasibility report); (iii) monitor the implementation of subproject agricultural programs from time to time, and report on findings to higher authorities within DOA; (iv) facilitate linkages between WUAs in subproject areas and local markets for seed and fertilizer supply, and collection and marketing; and (v) organize coordination meetings with all actors involved in the project agricultural services each trimester to share information, resolve problems and bottlenecks, and facilitate cooperation. 18. Feasibility Approval Committee (FAC). Each LDO will establish and chair a FAC to provide technical review and approve subprojects based on detailed feasibility reports. The DTO chief will be the FAC secretary. Other members of the FAC include the DADO chief, and the

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chief of the DOI irrigation development division or subdivision (for review of surface water schemes) or chief of the DOI groundwater branch office (for groundwater schemes). A quorum will consist of the DTO and at least one other office. 19. District Implementation Coordination Committee (DICC). Each LDO will establish and chair a DICC to coordinate among various stakeholders. The DICC will meet at least twice a year or more often if needed to share implementation status, and ensure good coordination and support for effective implementation of subprojects. The DICC members will include relevant stakeholders working in irrigation, agriculture, micro-finance, and poverty alleviation. These may include DADO, district representative of the National Federation of Irrigation Water Users Association Nepal, the district representative of Nepal Federation of Indigenous Nationalities, a representative of the district’s women development office, a representative from a participating microfinance institution (designated by RMDC) and a representative from the District Forest Office. The DTO will be the member secretary. This committee will also function as a grievance redress committee for beneficiaries and affected people.

IV. COSTS AND FINANCING

20. The project is estimated to cost $36.8 million which includes physical and price contingencies. The investment plan is summarized in Table 1.

Table 1: Project Investment Plan ($ million)

Item Amounta

A. Base Costb 1. Irrigation Infrastructure 27.7 2. Agriculture and Microfinance 3.4 3. Government Capacity Building 2.0 Subtotal (A) 33.1 B. Contingenciesc 3.7

Total (A+B) 36.8a Includes taxes and duties of $3.7 million, to be financed from Government resources. b In March 2010 prices. c Physical contingencies computed at 10% for civil works; and 5% for training and vehicles. Price contingencies

computed at 0.7 % for 2011, 0% for 2012, and 0.5% for 2012-2017 on foreign exchange costs and 6.5% for 2011, 5.5% for 2012 and 5.0% for 2013-2017 on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

Source: Staff estimates 21. The Government of Nepal has requested a grant of $26.4 million from ADB’s Special Funds resources to finance the Project. The Government will provide $.6.6 million to finance taxes related to consulting/NGO services and vehicles, project management costs, and 18% of the civil works under the irrigation infrastructure component. The beneficiaries will finance the installation of STWs3 and up to 10% percent of the civil works for the surface irrigation works. The ADB and the Government will finance 72% and 18% of the project investment cost, respectively. The beneficiaries will finance the remaining 10% of the overall project cost. The financing plan is summarized in Table 2.

3 The electrification of the STWs will be financed by ADB and the Government.

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Table 2: Financing Plan

Source Amount ($ million)

Share of Total (%)

Asian Development Bank 26.4 72 Beneficiaries 3.8 10 Government 6.6 18

Total 36.8 100 Source: Asian Development Bank staff estimate.

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A. Detailed Cost Estimates by Expenditure Category Nepal Community Irrigation Project % % TotalExpenditure Accounts Project Cost Summary (Local Million) (US$ Million) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

I. Investment Costs A. Civil Works

Civil Works A - Surface Schemes 843.9 280.8 1,124.7 11.56 3.85 15.41 25.00 47.0 Civil Works A - STW 133.8 160.6 294.4 1.83 2.20 4.03 55.00 12.0

Subtotal Civil Works 977.7 441.4 1,419.1 13.39 6.05 19.44 31.00 59.0 B. Civil Works - STW - Beneficiaries 98.9 33.0 131.8 1.35 0.45 1.81 25.00 5.0

C. O&M Contingency Fund 56.2 - 56.2 0.77 - 0.77 - 2.0

D. Vehicles 18.1 9.8 27.9 0.25 0.13 0.38 35.00 1.0 E. Training

Microfinance 37.9 0.6 38.5 0.52 0.01 0.53 2.00 2.0 Agriculture 136.8 - 136.8 1.87 - 1.87 - 6.0 Other Trainings 75.8 - 75.8 1.04 - 1.04 - 3.0

Subtotal Training 250.5 0.6 251.1 3.43 0.01 3.44 - 10.0 F. Consulting/ NGO Services

National Consultants 350.3 7.8 358.1 4.80 0.11 4.91 2.00 15.0 International Consultants 2.8 19.1 21.9 0.04 0.26 0.30 87.00 1.0 Off ice and Survey Equipment 3.1 5.7 8.8 0.04 0.08 0.12 65.00 - Off ice Rental 19.3 - 19.3 0.26 - 0.26 - 1.0

Subtotal Consulting/ NGO Services 375.5 32.6 408.1 5.14 0.45 5.59 7.99 16.9

G. Consulting Services - Unallocated 7.7 - 7.7 0.11 - 0.11 - - H. Project Management - Incremental Cost 110.3 - 110.3 1.51 - 1.51 - 5.0

Total BASELINE COSTS 1,894.9 517.3 2,412.3 25.96 7.09 33.04 21.00 100.0 Physical Contingencies 141.8 49.2 191.0 1.94 0.67 2.62 26.00 8.0 Price Contingencies 680.0 182.1 862.1 0.89 0.24 1.13 21.00 3.0

Total PROJECT COSTS 2,716.8 748.7 3,465.4 28.79 8.00 36.79 22.00 111.0

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B. Allocation and Withdrawal of Grant Proceeds

Allocation of Loan Proceeds Suggested AllocationAsian Development Bank of Grant Proceeds(US$ Million) Grant Disbursement

Amount %

A. Civil Works Civil Works - Surface Systems 11.52 81Civil Works - STW 3.33 80

Subtotal Civil Works 14.85 -B. O&M FUND 0.79 100

C. Vehicles 0.14 100 a

D. Training Microfinance training 0.54 100Agriculture training 1.94 100Other training 1.07 100

Subtotal Training 3.55 -

E. Consultant and NGO services 5.02 87Unallocated 2.05 -

Total 26.40 72 _________________________________NOTE: Loan amounts f inanced by Asian Development Banka Excluding taxes and duties

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C. Detailed Cost Estimates by Financier

Expenditure Accounts by Financiers Asian Development Local(US$ Million) Government Bank Beneficiaries Total For. (Excl. Duties &

Amount % Amount % Amount % Amount % Exch. Taxes) Taxes

I. Investment Costs

A. Civil Works Civil Works A - Surface Schemes 3.05 17.5 12.68 72.6 1.74 10.0 17.47 47.5 4.36 11.01 2.10 Civil Works A - STW 0.92 20.0 3.66 80.0 - - 4.58 12.4 2.50 1.53 0.55

Subtotal Civil Works 3.97 18.0 16.34 74.1 1.74 7.9 22.05 59.9 6.86 12.54 2.65

B. Civil Works - STW - Beneficiaries 0.00 - - - 2.05 100.0 2.05 5.6 0.51 1.54 -

C. O&M Contingency Fund - - 0.87 100.0 - - 0.87 2.4 - 0.87 -

D. Vehicles 0.27 65.0 0.14 35.0 - - 0.41 1.1 0.14 - 0.27

E. Training Microfinance - - 0.57 100.0 - - 0.57 1.6 0.01 0.56 - Agriculture - - 2.03 100.0 - - 2.03 5.5 - 2.03 - Other Trainings - - 1.11 100.0 - - 1.11 3.0 - 1.11 -

Subtotal Training - - 3.71 100.0 - - 3.71 10.1 0.01 3.70 -

F. Consulting/ NGO Services National Consultants 0.69 13.0 4.60 87.0 - - 5.29 14.4 0.12 4.48 0.69 International Consultants 0.04 13.0 0.28 87.0 - - 0.32 0.9 0.28 - 0.04 Off ice and Survey Equipment 0.02 17.0 0.11 83.0 - - 0.13 0.4 0.08 0.02 0.02 Off ice Rental 0.04 13.0 0.25 87.0 - - 0.29 0.8 - 0.25 0.04

Subtotal Consulting/ NGO Services 0.79 13.1 5.23 86.9 - - 6.02 16.4 0.48 4.76 0.79

G. Consulting Services - Unallocated 0.01 13.0 0.10 87.0 - - 0.11 0.3 - 0.10 0.01

H. Project Management - Incremental Cost 1.56 100.0 - - - - 1.56 4.3 - 1.56 -

Total PROJECT COSTS 6.60 17.9 26.40 71.7 3.80 10.3 36.79 100.0 8.00 25.08 3.71

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D. Detailed Cost Estimates by Outputs/Components

Expenditure Accounts by Components Government AgricultureTotals Including Contingencies (US$ Million) Irrigation Capacity and

Infrastrucrure Building Microfinance Total


Civil Works A - Surface Schemes 17.47 - - 17.47 Civil Works A - STW 4.58 - - 4.58

Subtotal Civil Works 22.05 - - 22.05 B. Civil Works - STW - Beneficiaries 2.05 - - 2.05 C. O&M Contingency Fund 0.87 - - 0.87 D. Vehicles 0.41 - - 0.41 E. Training

Microfinance - - 0.57 0.57 Agriculture - - 2.03 2.03 Other Trainings 0.01 1.09 - 1.11

Subtotal Training 0.01 1.09 2.60 3.71 F. Consulting/ NGO Services

National Consultants 4.51 - 0.78 5.29 International Consultants 0.32 - - 0.32 Office and Survey Equipment 0.13 - - 0.13 Office Rental 0.29 - - 0.29

Subtotal Consulting/ NGO Services 5.24 - 0.78 6.02 G. Consulting Services - Unallocated 0.11 - - 0.11 H. Project Management - Incremental Cost 0.34 0.88 0.34 1.56

Total PROJECT COSTS 31.09 1.98 3.72 36.79

Taxes 3.61 - 0.10 3.71 Foreign Exchange 7.99 - 0.01 8.00

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E. Detailed Cost Estimates by Year

Expenditure Accounts by Years Totals Including Contingencies (US$ Million) Totals Including Contingencies

2010 2011 2012 2013 2014 2015 2016 2017 Total


Civil Works A - Surface Schemes - 1.26 4.56 4.29 4.31 3.05 - - 17.47 Civil Works A - STW - - 1.14 1.14 1.15 1.15 - - 4.58

Subtotal Civil Works - 1.26 5.69 5.43 5.46 4.21 - - 22.05 B. Civil Works - STW - Beneficiaries - - 0.51 0.51 0.51 0.52 - - 2.05 C. O&M Contingency Fund - 0.06 0.23 0.21 0.22 0.15 - - 0.87 D. Vehicles - 0.41 - - - - - - 0.41 E. Training

Microfinance - 0.12 0.09 0.09 0.09 0.09 0.09 - 0.57 Agriculture - - 0.34 0.66 0.52 0.36 0.14 - 2.03 Other Trainings - 0.04 0.45 0.19 0.24 0.13 0.06 0.00 1.11

Subtotal Training - 0.16 0.88 0.94 0.86 0.58 0.29 0.00 3.71 F. Consulting/ NGO Services

National Consultants - 0.06 1.22 1.14 1.14 1.07 0.58 0.08 5.29 International Consultants - 0.03 0.24 0.05 - - - - 0.32 Off ice and Survey Equipment - 0.02 0.11 - - - - - 0.13 Off ice Rental - 0.01 0.05 0.05 0.05 0.05 0.05 0.01 0.29

Subtotal Consulting/ NGO Services - 0.12 1.62 1.24 1.19 1.12 0.63 0.09 6.02 G. Consulting Services - Unallocated - 0.01 0.02 0.02 0.03 0.02 0.01 - 0.11 H. Project Management - Incremental Cost - 0.08 0.27 0.28 0.28 0.28 0.28 0.10 1.56

Total PROJECT COSTS - 2.10 9.23 8.64 8.54 6.88 1.21 0.19 36.79

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F. Contract and Disbursement S-curve

Original Projection (US$ Million) Revised Projection (US$ Million) Year/ Quarter Contract Award Disbursement Contract Award Disbursement

2011 Q2 0.16 0.00 0.00 0.00 Q3 0.58 0.14 0.10 0.00 Q4 0.82 0.54 0.00 0.10 2012 Q1 1.71 0.84 0.04 0.00 Q2 1.73 1.75 4.25 0.04 Q3 1.70 1.73 0.41 0.47 Q4 1.33 1.69 0.14 0.32 2013 Q1 1.69 1.34 0.10 0.42 Q2 1.70 1.69 0.13 0.32 Q3 1.66 1.70 0.77 0.55 Q4 1.24 1.65 1.41 0.91 2014 Q1 1.68 1.25 1.24 1.19 Q2 1.66 1.67 3.42 1.30 Q3 1.68 1.67 2.06 1.97 Q4 1.23 1.67 3.48 2.32 2015 Q1 1.59 1.24 1.71 2.06 Q2 1.54 1.59 2.60 3.13 Q3 1.50 1.55 2.62 3.38 Q4 0.34 1.49 0.09 2.32 2016 Q1 0.31 0.35 0.85 2.14 Q2 0.29 0.30 0.07 1.42 Q3 0.17 0.30 0.77 0.82 Q4 0.05 0.17 0.02 0.94 2017 Q1 0.04 0.05 0.02 0.17 Q2 0.00 0.03 0.00 0.11 Total 26.40 26.40 26.40 26.40

0.00

5.00

10.00

15.00

20.00

25.00

30.00

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

2011 2012 2013 2014 2015 2016 2017

Original Projections vs Revised Projections Contract Awards and Disbursements

Original Projections of Contract Awards (US$ Million) Revised Projections of Contract Awards (US$ Million)

Original Projections of Disbursements (US$ Million) Revised Projections of Disbursements (US$ Million)

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G. Fund Flow Diagram

1. Subproject Implementation Through District Development Fund

ADB (1)

Project coordination unit (PCU )

(2) Imprest Account (USD) NRB

FCGO (ii)

MOF (A) (i)

MoLD (B)

DDC (DDF) (E) (v)

WUA (vii)

Replenishment

DoLIDAR (C)

Beneficiaries' Contribution

DTCO (iii)

GON Central Account (NRs) NRB (3)

DTO- operating account (F) (vi)

PCU (D) (iv)

Budget Authority (A - F) Fund flow (i - viii) Replenishment (1 - 2) Reimbursement (2 - 3) Reporting

Reporting

Fund Flow Withdrawal Application request

Eligible expenditure transfer from

Imprest accountfor reimbursement

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2. Microfinance Capacity Development Through RMDC

Note: There will be separate Imprest Account for RMDC to conduct capacity building activities for Micro Finance Institutions. There will be subsidiary grant agreement between MOF and RMDC and also a separate Project Agreement between ADB and RMDC.The imprest account will be operated by RMDC and withdrawal application will be sent directly by RMDC to ADB for replenishment. The external auditor will perform the final audit and audited financial statements will be sent to ADB no later than 9 months of the expiry of each fiscal year. PCO will reconcile the record with RMDC and will include the amount of grant disbursement in its audited project account. RMDC will conduct the trainings as necessary and will submit trimester progress report to ADB and send copy to PCO within two weeks of the expiry of each trimester. The costs of the trainings will be borne by ADB 100%

Rural Micro Finance Development Center (RMDC) (i)

(2) Imprest Account (NRs) NRB

Replenishment

Fund flow (1-3) Replenishment (1-2) Reporting

Withdrawal Application request

Eligible expenditure transfer from

Imprest account

Capacity building activities for MFIs (3)

Project Coordination

Unit

ADB (1) (ii)

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V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

22. During project preparation, a Financial Management Assessment was undertaken regarding the financial acts and regulations, accounting system, record keeping, financial reporting, internal control systems to avoid misuse of budget and safe guard of assets. It was found that the Local Bodies Financial Administration Regulation and the Procurement Act and Regulation are being used at the district and central level. The prevailing government rules and regulations provide for adequate internal control systems. Financial reporting is adequate and staff of DOLIDAR and the DDCs are familiar with the standard requirement of donor funded projects.

23. Although it indicates that the financial management capacity in DOLIDAR and the DDCs is generally adequate for the implementation of the Project, the assessment flags the problem of frequent transfer of trained accounting staff as per Civil Service Act and Regulation and vacancies at DCC level. To mitigate these problems, repeat training is required during project implementation for new accounting staff. Furthermore, vacant account staff positions will be filled by the Government before disbursement of Project funds into the respective DDFs. The Government will ensure that adequate accounting staff are working in all participating DDCs. The Government will finalize and disseminate to DDCs the Financial Management Manual for their use. A draft manual was prepared under the project preparatory technical assistance.

B. Disbursement

24. The Grant proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time),4 and detailed arrangements agreed upon between the Government and ADB. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),5 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to subprojects financed by ADB.

25. DOLIDAR will establish immediately after Grant effectiveness separate imprest account at the Nepal Rastra Bank. Funding for consulting services and project management will be channeled to the central PCU operating account. Funds for subproject expenditures (other than the beneficiary contributions) will be channeled to the DDF account. The PCU will also work with the project districts to prepare disbursement projections and prepare withdrawal applications; and send them to ADB in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Based on the withdrawal applications, ADB will fund the project imprest account on reimbursement basis. RMDC will establish a separate imprest account at the Nepal Rastra Bank. Disbursements to RMDC will also be in accordance with ADB's Loan Disbursement Handbook.

26. The statement of expenditures (SOE) procedures will be used to facilitate reimbursement and liquidation. The PCU will work with the project Districts to prepare budgetary allocation, and the Government will advance funds to the PCU operating account and the DDF imprest account will be established, managed, replenished and liquidated in accordance with

4 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf. 5 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf.

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ADB’s Loan Disbursement Handbook (2007, as amended from time to time). SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.6

27. The maximum ceiling of the imprest accounts will not at any time exceed the estimated ADB financed expenditures to be paid from the imprest accounts for the next 6 months or 10% of the respective grant amount, whichever will be lower. The request for initial advance to the imprest accounts should be accompanied by an Estimate of Expenditure Sheet7 setting out the estimated expenditures for the first 6 months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest accounts, the recipient will furnish to ADB (i) Statement of Account (Bank Statement) where the imprest account is maintained, and (ii) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against DOLIDAR’s records.

28. Before the submission of the first withdrawal application, the Government of Nepal (GON) should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the recipient, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. The Government of Nepal is to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing. C. Accounting

29. DOLIDAR will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow the Local Bodies Financial Administration Regulation, 2007. D. Auditing

30. DOLIDAR will cause the detailed consolidated project accounts to be audited in accordance with the Government's audit regulations by an auditor acceptable to ADB. ADB reserves the right to appoint independent auditors in a manner consistent with the Constitution of Nepal if the audits are substantially delayed. The audited accounts will be submitted in the English language to ADB by the executing agency by 15 April of the subsequent year. RMDC will cause its accounts to be audited separately by independent auditors acceptable to ADB. The annual audit report will include a separate audit opinion on the use of the imprest accounts and the SOE procedures. The Government and DOLIDAR have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. The EA will provide to ADB the audited financial statement, auditor’s opinion, and a proposed action plan for addressing any concerns raised by the auditor, if any.

6 Checklist for SOE procedures and formats are available at:

http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls

7 Available in Appendix 29 of the Loan Disbursement Handbook.

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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. For revenue generating projects only, ADB requires audited financial statements (AFS) for each executing and/or implementation agency associated with the project.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

31. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time) (ADB’s Procurement Guidelines)8 and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).9 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The Government has been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the Project.

32. Advance contracting. DOLIDAR may engage the services of an individual consultant/ procurement specialist for a total of 4 person-months (pm). The specialist will assist PCU, DOLIDAR in the preparation of the documentation required for the recruitment of the Consultant/NGO Joint Venture package that will provide project implementation services.

33. Retroactive financing. Retroactive financing in the amount of $12,000 may be incurred before Grant effectiveness, provided it is incurred within 12 months before the signing of the Grant agreement. B. Procurement of Goods, Works and Consulting Services

34. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines.

35. Civil Works. The majority of the civil works contracts that are defined as “simple civil works.” Many contracting works will be carried out by the registered WUA concerned after confirmation that the WUA has capacity to perform such works, and not to exceed the financial threshold of NRs 3.5 million. A similar approach is used in Community-Managed Irrigated Agriculture Sector Project (CMIASP, Loan 2102 –NEP (SF)) with a financial threshold of NRs 6 million. A review of the quality of civil works conducted by WUAs under CMIASP will be conducted in 2011, and consideration may be given to increasing the financial threshold if the quality of works is sufficient and project safeguards are successfully implemented. In all cases, complex civil works will be implemented by hiring contractor(s) by using the competitive procurement method i.e., NCB, Shopping; in compliance with the threshold limit indicated in the Procurement Plan. The criteria identified in Table 3 are those considered too complex to be managed by WUAs; other procurement methods will be used. The District Irrigation Engineer, with support from the field design engineer, will assess WUA capacity and work complexity.

8 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 9 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf

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Table 3: Civil Works too Complex for Community Procurement

Type of Structure Remarks Headworks: weirs and intake structures structures requiring excavation in soil formations for which

excavators and/or other equipment/ machinery are to be deployed

structures that have major RCC components

structures that have steel gates with mechanical hoisting devices

This includes intakes with pump stations

Canal Structures

Canal crossing structures/ bridges for vehicle traffic with RCC slabs to be casted in-situ

Aquaducts and cross-drainage structures with RCC to be casted in-situ (but not small prefabricated culverts that can be procured locally)

For remote subprojects with only a few structures, the scope of work may be insufficient to attract contractors; in such cases these works may still be included in a community contract.

Canal Excavation Excavation in hard soil formations for which excavators and/or

other equipment/ machinery are to be deployed

36. Engagement of WUAs under the project must comply with the procedures indicated in clause 44 of Public Procurement Act 2007 and clause 97 of the Public Procurement Regulations, 2007. Threshold limit for contract award to WUA will be NRs. 3,500,000 which may be adjusted for time to time with prior approval by ADB during project implementation.

37. The following measures will be undertaken in the project to mitigate risk of malfeasance in bidding of civil works contracts and services: (i) WUAs to establish a construction monitoring committee, with training provided by the JV; (ii) drop location for goods will be at construction site, with WUA construction monitoring committee to verify quantities at delivery; (iii) JV management to train all consultants and project staff on ADB’s anticorruption policy and procedures for social audit. The JV to monitor and ADB to provide them with direct hotline to report allegations to ADB in confidence; (iv) upon the recommendation of DOLIDAR, PPMO to black-list contractors and suppliers proven to be involved in malfeasance; (v) the Chief District Officer who has anticorruption authority to receive and act upon genuine complaints; and (vi) ADB to undertake post-facto review of contract awards for civil works and supply of materials on random basis; misprocured contracts not eligible for Grant financing. To ensure transparency in contract awards, DTOs will post in their offices all agreements signed with WUAs and contractors for construction of civil works, and DOLIDAR will publish on its website on a quarterly basis the list of contracts awarded with WUAs and contractors. The PCU Procurement Specialist will also undertake on a random basis regular prior and post-facto reviews of procurement actions by DDCs, report findings to ADB, and ensure compliance with any necessary remedial actions. The PCU, with assistance from the JV, will also undertake random spot checks of the performance of contractors, suppliers and WUAs, and provide semi-annual reports to ADB on its findings.

38. Goods. Goods may be procured through International Competitive Bidding (ICB), National Competitive Bidding (NCB), or Shopping as described in the Procurement Plan.

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39. Before the start of any procurement ADB and the Government will review the public procurement laws of the Government to ensure consistency with ADB’s Procurement Guidelines.

40. 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.

41. Consulting Services. All consultants and NGOs will be recruited according to ADB’s Guidelines on the Use of Consultants.10 The terms of reference for all consulting services are detailed in Section D.

42. An estimated 1081 person-months (12 international, 1,069 national) of professional consulting/NGO services are required to (i) support project management and implementation, and (ii) strengthen the institutional and capacity of DOLIDAR and offices of participating districts. The consulting/NGO services will be engaged in one package. The package will be a Joint Venture comprising at least one consulting firm and one NGO. In addition, two experts will be engaged by the EA as individual consultants. C. Procurement Plan

43. The Procurement Plan (Annex 5) will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. D. Consultant's Terms of Reference

44. The consulting services package will be required to support the EA in project management and implementation. It will be a JV association between at least one Engineering Firm and one NGO where all members are jointly and severally liable for any possible contract entered into with an EA. The Joint Venture will be engaged using the quality- and cost-based selection (QCBS) method. Draft terms of reference (TOR) for the JV is in Annex 6.

45. The JV includes experts and subprofessionals that will be needed throughout the project implementation period. These are budgeted under the “Consultant and NGO Services” category. Certain additional experts may be needed during project implementation to supplement the support to the PCU. They may be needed in the following fields of expertise: gender, social development (including resettlement and indigenous peoples), environment, information technology, hydrogeology, hydrology, and financial management. Thirty person-months has been estimated in the “consulting services - unallocated” separate budget category. In addition, at the district level, additional support may be needed for the technical support teams. Twenty person-months has been estimated in “consulting services - unallocated” for district-level support. The EA will engage such persons as individuals as and when required in accordance with ADB’s Guidelines on the Use of Consultants. 46. The Project also provides for the services of two experts to support Project start-up activities who will be recruited by the EA on an individual basis. These include a project management specialist (international) and a procurement specialist (national). The TOR for these consultants is attached in Annex 7.

10 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/

26

VII. SAFEGUARDS

47. The PCU will take the lead for finalizing checklists, conducting environmental screening of the subprojects, prepare Initial Environmental Examination (IEE) or environmental due diligence reports (DDR), implementation and monitoring of the environmental management plan and reporting. All these activities will be conducted following the environmental assessment and review framework (EARF) prepared for the Project. The cost for the Environmental Mitigation includes all costs associated with implementing relevant environmental management plan. The cost for environmental mitigation will be included in the project cost as a separate bill of quantity. 48. The Monitoring and Evaluation (M&E) specialist of the PCU will take the lead for implementation and monitoring of the resettlement framework (RF) and indigenous peoples framework (IPF). This includes responsibility for development of checklists which will be used in subproject screening, collection of socio-economic information about beneficiary households, capacity building of district level project staff in the implementation of RF due diligence, and social preparation activities to ensure the most vulnerable, including indigenous peoples, are able to meaningfully participate in project activities and realize its benefits.

VIII. GENDER AND SOCIAL DIMENSIONS

49. Gender Action Plan (GAP): Gender empowerment activities can be grouped into three areas, with associated responsibility. Input to training modules for both technical (irrigation, agricultural improvement) and social (effective participation, group formation, WUA officer roles) aspects of the project will be provided by the M&E Specialist to enhance gender empowerment outcomes. Implementation of targets for women's meaningful participation in training, groups and decision making, as well as social preparation assistance for women and marginalized groups will be the responsibility of the Village Based Field Teams (VBFT) under the guidance of the district coordinator for each district. RMDC, the micro finance implementing agency under the project, will be responsible for formation and capacity building of women's credit and savings groups. In addition DOLIDAR will hire three female irrigation engineers (of 12 new positions). The core labor standard of equal wage for equal work regardless of gender will be enforced for all the project paid positions and construction works. Gender targets will be monitored by the M&E specialist. This includes periodic specialized gender analysis. Provision for specialized high level input from a gender advisor has been made for assistance in design and analysis activities, as required by the project. 50. Consultation and Participation (C&P) Plan: This plan has been prepared to ensure local ownership of each CIP subproject, ensure inclusion of all types of user stakeholder groups in participation processes and benefit distribution, and to ensure dissemination of results and lessons learned to the wider community, including interested government, NGOs and civil society organizations. The socio-economic survey of each subproject by the VBFT will flag those households requiring support to enhance their meaningful participation in the activities of the project. These groups will receive targeted coaching or preparation by the VBFT. The PCU M&E Specialist will analyze each sub-project based on its socio-economic profile and suggest targets and methods for participation assistance. S/he will also provide training support to the field teams in this respect. Data on participation assistance to relatively disadvantaged groups will be collected for the M&E system. The processes and results of this project will be of interest not only to project stakeholders, but also other government and non-government organizations, as well as some civil society organizations. Many of these organizations have been consulted

27

and given inputs to the project design process. In order to ensure the project may learn from other relevant activities and vice versa, the M&E Specialist will invite such government organizations, NGOs and community-based organizations to periodic workshops to discuss project results, and in particular periodic specialized studies on such topics as gender, poverty impact or other case studies generated through the M&E process.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

51. The Design and Monitoring Framework (DMF) of the Project will be used as the benchmark for monitoring outcome, outputs, activities and milestones.

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A. Project Design and Monitoring Framework

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risksa

Impact Assumption Agriculture GDP

increased to NRs 797,563 million by 2017 (2009 baseline: NRs 366,744 million)

National and district statistics

Area under year round irrigation increased from current 41% to 64% in 2017

Ministry of Irrigation records

Agricultural income of rural poor and socially excluded groups is increased

Continued government priority and appropriation toward agricultural sector

Risks Economic, social

and governance reforms are slowed down

Disruption in the peace and reconciliation process

Outcome Assumption Crop yields increase by

at least 15% within five years of subproject construction for female and male farmers

Subproject feasibility reports for baseline data, with impact monitoring surveys by M&E specialist. Results reported annually in M&E Reports, and in Mid-term review report and PCR

Winter vegetable production increases by 8% for female and male farmers

Same as above

Poor, women, and other disadvantaged farmers in target communities11 intensify and diversify their agricultural practices toward higher value crops

Improved irrigation coverage of at least 17,000 ha

Same as above

Project institutions are committed to strengthening agricultural systems

Risks

Out-migration of labor from rural areas to cities and international employment markets may lead to an acute shortage of farm labor

Annual rice, wheat, maize, and vegetable production increases by at least 14,000 t, 1,700 t, 7,500 t, and 29,000 t

Same as above

Annual incomes of small and marginal farmers increase by 72-124% (early 2010 baseline: NRs 34,000)

Same as above

11 District, sub-district and subproject selection criteria have been designed to target a high proportion of poor and

disadvantaged farmers.

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Outputs Assumptions WUAs in subprojects

have at least one-third female and proportional representation of disadvantaged groups in membership and leadership

Subproject feasibility reports and M&E Reports

1. WUAs efficiently manage improved irrigation infrastructure

WUAs demonstrate their ability to plan, implement, and operate and maintain irrigation infrastructure

WUAs prepare and implement plans for equitable and efficient water distribution

At least 65% of WUAs continue to collect 2-5% of construction cost annually for major repairs

M&E Reports with annual in-depth analysis by gender, ethnicity, poverty

Trimester PPR Micro-finance survey

and reports by RMDC, reported in Trimester PPR

Government applies "no subsidy" policy for STW consistently across projects

Construction costs remain relatively stable

Risks

Politicians or others discourage farmers from collecting maintenance funds

Government offers other infrastructure improvement assistance to project beneficiaries and undermines the self-sufficiency objective of the Project.

Assumption 2. Participating

farmers apply improved agriculture practices and have access to micro-finance

75% of surveyed farmers achieve their targets in cropping intensity and yields (baseline reported in subproject feasibility reports)

At least 75% of female farmers join MFI groups, at least 50% of whom access loans and savings

Project survey, disaggregated by sex, ethnicity, poverty

Micro-finance survey and reports, reported in monitoring and evaluation Reports

Central agriculture institutions support Project aims Risk

Shortage of family farm labor due to out- migration affects agricultural productivity or ability of farmers to participate in programs

Assumption District and village

leaders select subprojects on schedule and in accordance with Project criteria

Trimester PPR 3. Government capacity to plan and coordinate small-scale irrigation projects is enhanced

Public engineers (at least 3 women) in 12 districts approve appropriate designs for small irrigation infrastructure and effectively supervise construction

Mid-term Review Report and PCR

Government staff trained through Project are retained

Risks

DDC elections will not be held and the all-party consensus mechanism becomes dysfunctional, leading to indecision

Interference by politicians and

30




District-level Government officials effectively coordinate subproject activities

Subproject communities have access to village-based institutional, technical and agricultural support for 2 years after scheme selection

80% of LDOs, DTO chiefs, and district irrigation engineers see benefits of participatory approach (with gender and disadvantaged group focus)

Minutes of Project Implementation Coordination Committee meetings

Minutes of Project Implementation Coordination Committee meetings

Project surveys, as reported in Mid-term Review Report and PCR

officials in subproject implementation

Activities with Milestones Inputs Output 1. WUAs efficiently manage improved irrigation infrastructure 1.1 Irrigation infrastructure improvement Batch 1 Subprojects 1.1.1 Selection by villages and reconnaissance

(January –February 2012) 1.1.2 Feasibility studies/detailed design and

subproject design approval (March 2012 to August 2012)

1.1.3 Construction by WUAs (November 2012 to mid -April 2013)

Batch 2 Subprojects 1.1.4 Selection by villages and reconnaissance



1.1.6 Construction by WUAs (November 2013 to mid April 2014)


(January – February 2014) 1.1.8 Feasibility studies/detailed design and





subproject design approval ( March 2015 to August 2015)

ADB: $26.4M Government $6.6M Beneficiaries: $3.8M

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1.2 Capacity building of WUAs to maintain

irrigation infrastructure and manage equitable water distribution and preparation of O&M and water management plans (February 2012 – July 2017)

1.3 Training support and associated field

demonstrations to farmers in micro-irrigation application techniques to optimize productivity of water ( March 2012 – July 2017)

Output 2. Participating farmers apply improved agriculture and micro-finance practices 2.1 Short-duration courses and associated field

demonstrations to impart irrigated crop husbandry skills to farmers (March 2013 – July 2017)

2.2.Establishment of Farmer Field Schools on each subproject operating for 1 year on production packages for cereal and high value crops (2012 – 2017)

2.3 Training of Trainers (district Level) for cereal crop seed selection; vegetable seedling production; nursery management; off season vegetable production; soil management; weed and pest control (2012- 2013)

2.4 Capacity building of local MFIs to service farmers with input loans (January 2012 – December 2015)

2.5 Provision of matching grants to WUAs who deposit within first year after subproject construction, annual collections of non-recurrent maintenance funds in accounts at local MFI. April 2013 – February 2017

Output 3: Government capacity to plan and coordinate small-scale irrigation projects is enhanced Project Implementation Capacity 3.1 Recruit an individual procurement consultant as

advance action (by September 2010) 3.2 Recruitment Joint Venture) by May 2011 3.3 Project starts (June, 2011) 3.4 Appointment of District Irrigation Engineers in

DTOs (by September 2011) 3.5 Mobilization of District Coordinators

(September 2011) 3.6 Mobilization of VBFTs (November 2011) 3.7 Mobilization of Technical Support Teams for

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engineering design, agronomy and hydro-geology (November 2011)

3.8 Project monitoring and evaluation data collection and reports- including social and environmental safeguards (November 2011 – July 2017)

Institutional Support 3.9 Orientation training for DTO and PCU

engineers on appropriate small irrigation infrastructure design. (December 2011)

3.10 Training for DADOs on (February 2012) 3.13 District rapid assessments for irrigation

potential in areas categorized as disadvantaged ( November 2011)

3.14 Mentoring of DDCs to reach consensus on targeted project implementation areas December 2011)

3.15 Project information dissemination in targeted implementation area wards (every December 2011 to 2014)

3.16 Mentoring of village leaders and ward citizen groups to nominate subprojects that meet selection criteria (January – February 2012 to 2015)

3.17 Mentoring and support – institutional, technical and agricultural -- of WUAs (January 2012 to July 2017)

DADO = District Agriculture Development Officer, DDC = District Development Committees, DOI = Department of Irrigation, DTO = district technical office, GDP = gross domestic product, LDO = Local Development Officer, M&E = monitoring and evaluation, MFI = microfinance institutions, O&M = operation and maintenance, PCR = Project Completion Report, PIC = Project Implementation Consultants, PPR = project progress report, RMDC = Rural Microfinance Development Center, STW = shallow tube wells, VBFT = Village Based Field Teams, WUA = water user associations. B. Monitoring

52. General project performance monitoring. The achievement of the project targets will be assessed following the design and monitoring framework. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported each trimester through DOLIDAR's trimester progress reports and after each ADB review mission. These trimester reports will provide information necessary to update ADB's project performance reporting system (PPMS). 53. PPMS monitoring. The PCU will establish within 1 year of Project start a PPMS system and the project field staff will be required to collect disaggregated baseline socio-economic and agricultural data in each subproject area. Socio-economic data will be collected at household level,12 and agricultural data on current and proposed cropping patterns and production yields for each section of the command area. These will be reported in subproject feasibility reports. Thereafter a baseline for each subproject will be established and social and gender related targets adjusted for each. The PCU's PPMS system will indicate procedures for monitoring field activities, including the preparation of indicators disaggregated by sex and ethnic/caste group 12 Including identification of male and female farmers in each household.

33

for assessment of performance. The project’s Monitoring and Evaluation (M&E) specialist will administer surveys and conduct monitoring assessments on a regular basis. A specialized M&E Report will be prepared and submitted to ADB annually, reporting on Project impacts on gender, indigenous peoples, and other disadvantaged group targets. 54. The targets and indicators in the GAP will also be monitored, including how beneficiaries will be involved in project monitoring and/or evaluation.

55. Gender and social dimensions monitoring: The M&E Specialist will take primary responsibility for monitoring the GAP and other social dimensions. The M&E specialist will design checklists and an initial short socio-economic data capture system in order to effectively screen and collect baseline data on the stakeholders of each sub-project. The M&E specialist will provide capacity building and technical backstopping to the district coordinator for carrying out GAP and C&P plan activities. The M&E specialist will analyze by gender for all monitoring reports, as well as undertake periodic specialized gender analysis of sub-projects.

56. Safeguards monitoring: Environmental safeguards will be monitored in accordance with the EARF. The EARF specifies that environmental DDRs will be prepared for all subprojects, and IEE reports will be prepared for those subprojects in which command areas are greater than 150 ha. IEEs have environmental management plan (EMP), and these will be monitored in accordance with the monitoring mechanism specified in the EMP. The Environment Desk of the DDCs will be responsible to oversee EMP monitoring. 57. Resettlement issues will be monitored in accordance with the RF. The VBFT for each subproject will identify requirements for new land, verify that land for small irrigation systems is being provided voluntarily by those who stand to gain directly, and verify that the subproject will cause no impoverishment or displacement of tenants. This resettlement due diligence will be documented in the subproject feasibility study report. Any subproject requiring non-voluntary land acquisition will be dropped. The M&E specialist will review and ensure quality of resettlement due diligence sections of feasibility reports before they are submitted to FAC for approval. 58. Issues affecting indigenous peoples will be monitored in accordance with the IPF. The M&E specialist will be responsible to monitor project activities and impacts disaggregated by sex and caste/ethnicity. She or he will also prepare periodic in-depth reports on subjects such as ethnicity, gender and poverty. See section on PPMS Monitoring above. 59. Micro-finance monitoring. RMDC will be responsible to oversee the Project's micro-finance activities and expects impacts. RMDC will report on status of establishment of participating MFIs and cooperatives in subproject areas and their services to Project beneficiaries. Implementation status information will be submitted by RMDC to the Project Coordinator for inclusion in the project's trimester progress reports. RMDC will report on targets of women and disadvantaged group participation in micro-finance activities (using surveys as necessary) and will report these to the M&E Specialist for inclusion in the Project's M&E Reports. RMDC will promote savings for maintenance among WUAs, and will monitor the WUA contributions to the non-recurrent maintenance fund. Status of WUA contributions, and recommendations for increasing WUA contributions, will be reported by RMDC and included in the project's trimester progress reports. 60. Compliance monitoring: Compliance with covenants will be monitored through ADB's regular Project review Missions. At the inception mission, ADB will discuss and confirm the

34

timetable for compliance with the grant covenants. During review missions, ADB will review the recipient's compliance with particular grant covenants and, where there is any noncompliance or delay, and agree with the Government on remedial measures. At the mid-term review mission, the covenants will be assessed to determine if they are still relevant or need to be changed, or waived due to changing circumstances.

C. Evaluation

61. A project inception mission will be fielded soon after the legal agreements for the Project are declared effective; thereafter, regular reviews will follow at least annually. As necessary, special grant administration missions during periods and a midterm review mission will be fielded, under which any changes in scope or implementation arrangement may be required to ensure achievement of project objectives. DOLIDAR and RMDC will monitor project implementation in accordance with the schedule and time-bound milestones, and keep ADB informed of any significant deviations that may result in the milestones not being met. The consultant JV will be required to provide DOLIDAR with a comprehensive mid-term report, and DOLIDAR will submit the mid-term review report to ADB 3 weeks in advance of the mid-term review mission. This will be used as a basis to thoroughly assess implementation progress and status toward meeting the expected outcome and impact, and agree on any necessary changes to Project scope or implementation arrangements. Within 6 months of physical completion of the Project, DOLIDAR will submit a project completion report to ADB. D. Reporting

62. DOLIDAR will provide ADB with (i) trimesterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for next 12 months; (iii) a comprehensive mid-term report 3 weeks before the mid-term review mission; and (iv) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency AFSs, together with the associated auditor's report, should be routinely reviewed. E. Stakeholder Communication Strategy

63. The project C&P plan sets out the methodology for participation and communication at district and sub-project level for all project activities including:

i. Selection of ilakas by district level stakeholders; ii. Selection of subprojects by Village Development Committee level stakeholders; iii. Decisions on the system design; iv. Decisions on the O&M system, level of financial contributions; v. Decisions on mode and management of construction; vi. Decisions on participation in the WUA; vii. Decisions on representation from disadvantaged subgroups to the WUA,

trainings; and viii. Meaningful participation in all meetings, groups and activities referred to above.

64. Since this is a community driven project, village-based field teams will be used as community mobilizers and facilitators to build capacity at the user level to design, implement

35

and raise awareness about project activities themselves. At the national level, the M&E specialist will be proactive in disseminating the results of quarterly and periodic specialized impact analyses to interested government and non-government organizations, as well as some civil society organizations.

X. ANTICORRUPTION POLICY

65. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.13 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/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 66. To support these efforts, a governance risk assessment was conducted as part of project preparation as per the Second Governance and Anticorruption Action Plan.15 The risks and specific mitigation measures the project will implement are included in the Project's Risk Assessment and Risk Management Plan. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with DOLIDAR, and key measures to prevent corruption have been included in the project design. These include procedures for social audit, enhanced oversight of civil works procurement processes, trainings in anticorruption at central, district, and local levels, and disclosure of procurement-related information including contract awards. See also the risk assessment and risk management plan.

XI. ACCOUNTABILITY MECHANISM

67. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.16

XII. RECORD OF PAM CHANGES

68. The PAM was prepared prior to Project approval and agreed during grant negotiations. Minor updates were made following the inception review mission in October 2012: (i) contract awards and disbursement projections were updated in Section IV-F, (ii) period of progress reports was changed from quarterly to every trimester in para 62, (iii) the fund flow diagram for subproject implementation through the DDF has been changed to funnel the agricultural budget into the DTO account, and (iv) updates to Annex 1 to reflect the current implementation arrangements. Minor updates were made following the 25 March 2013 review missions: (i) Subproject selection criteria – new condition has been added in PAM Annex 2, Section II.A: “[item] (v) None of the current or potential command area of a CIP subproject should be in a forest area;” and (ii) DICC composition–the District Forest Office, has been added as new member of DICC under para 19 of the PAM.

13 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 14 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp 15 GACAP II Guidelines available at: http://www.adb.org/Documents/Guidelines/GACAP-II-Guidelines.pdf. See also

Sourcebook: Diagnostics to Assist Preparation of Governance Risk Assessments: http://www.adb.org/documents/books/Diagnostics-to-Assist-Preparation-of-GRAs/default.asp.

16 For further information see: http://compliance.adb.org/.

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Annexes: 1. Subproject Selection and Implementation Procedure 2. Subproject Selection Criteria 3. Beneficiary Cost Share 4. Capacity Development Plan 5. Procurement Plan 6. Draft Outline TOR - Joint Venture 7. Draft Outline TOR – Procurement Specialist and Project Management Specialist

Annex 1 37

SUBPROJECT SELECTION AND IMPLEMENTATION PROCEDURE

1. Introduction. The subproject implementation process consists of (i) scheme identification, (ii) feasibility study and design, (iii) construction of infrastructure, and (iv) agricultural extension and water management. 2. Subproject Implementation Support. At the center of this process in each of the participating districts is the District Development Committee (DDC), supported by the District Technical Office (DTO). A Community Irrigation Project (CIP) Engineer has been assigned to each DTO participating in CIP. The Irrigation and Other Infrastructure Development Section of the DTO will be established in participating CIP (the project) districts. The DTO Chief and the DDC will be supported by the following Project Management and Implementation Support (PMIS) consultants: (i) a dedicated district coordinator, and (ii) two Village Based Field Teams (VBFTs). The VBFTs will serve as mentors for the water user associations (WUAs) and a continuing interface between the irrigation community and the DTO. Each VBFT will comprise 1 local social mobilizer, 1 agricultural extensionist and 2 assistant sub-engineers. Either the social mobilizer or the agricultural extensionist must be female. Each VBFT will be trained and supported in CIP subproject implementation procedures by the central-level PMIS team comprised of the Team Leader, Senior Irrigation Engineer, Benefit Monitoring and Evaluation Specialist, Hydro-geologist, and Senior Agriculture Specialist. A. Preparatory Works in Project Districts 3. The DDCs will need to first determine where the Project benefits will be directed within a district. The PMIS will assist the DDCs in their decision-making by providing information on surface and groundwater irrigation development potential. For each district, the PMIS will collate any available information on surface water irrigation development or rehabilitation potential such as irrigation inventories, previous demands for small-scale irrigation schemes, and water use master plans. 4. The PMIS will also collate data on prevalence and locations of poor and disadvantaged groups within the district. The greatest efficiency will be achieved and more Village Development Committees (VDCs) able to be supported with the project benefits if subprojects are implemented within a limited area so the same staff may manage the greatest number of subprojects at the same time. Each district has disadvantaged group mappings which highlight the areas where the poor and the socially excluded live. These data sets will be supplemented with Stunting and Income Poverty Incidence prevalence maps to highlight intra-district differences. 5. The data and maps on irrigation potential, suitability for groundwater development, and poverty will be presented to the DDC Council as background for choosing the participating subdistricts. B. Identification and Selection 6. Selection of Sub-Districts for Project Benefits. The district coordinators will assist DDCs to deliberate and select the four most poor and disadvantaged llaka or subdistricts based on the data analysis conducted above. The DDC Council (or an equivalent mechanism put in place) will meet and rank the identified four llaka according to poverty, which will determine the order of priority for the Project.

38 Annex 1

7. Analysis of Shallow Tube Well (STW) Development Potential in Terai Districts. The Hydro-geologist will also prepare maps on groundwater development potential (aquifer formation and depth, water level contour, yield potential, and groundwater balance), areas of high arsenic contamination, and the existing electrification grid. 8. Selection of Subprojects. Under the project, a "subproject" is an irrigation scheme proposed by an irrigation community (who will form a WUA, if it has not already done so), selected by the VDC, endorsed by the DDC, and determined feasible by the project staff.1 The Project will offer subproject benefits to the VDCs of the selected Ilaka. The VBFT will hold public meetings within the VDC to explain the project, its participatory approach, and subproject selection criteria. The VBFT will visit each of the VDC of the Ilaka to (i) disseminate information on the project and the subproject selection criteria, and (ii) invite ward citizen groups and irrigation communities to come with proposals for irrigation development to the scheduled VDC-level public the project planning meeting. The public meeting sessions on the project will culminate in the endorsement by the VDC of a list of proposed irrigation subprojects that the community expects to meet the project's selection criteria (see Project Administration Manual Annex 2). 9. Prefeasibility Reconnaissance. Once the long list of VDC-requested subprojects has been prepared, a reconnaissance will be carried out by the CIP team (CIP Engineer, VBFT, and district coordinator). The focus of the reconnaissance will be to screen the proposed subproject against the project's selection criteria. This includes a confirmation of the stated water source and land, composition of the community, and the genuineness and seriousness of the proposal. The chances of the proposal not being genuine will be low, considering the proposals have been deliberated in a public meeting in competition with others. Additionally, it will be necessary to assess the presence of an effective and functioning community organization, formal or informal, that will be responsible for the subproject as an indicator of sustainability. The absence of any major conflict within the community and any disputes relating to the water source with other communities will need to be confirmed. The willingness to contribute to the subproject in accordance with the Project's beneficiary cost share scheme, and to collect an annual contribution for structural replacement costs, in addition to their regular maintenance, will also be verified. The WUA of the selected subproject will then be asked to deposit NRs140/ha in the DTO account which will be refunded in case the subproject is not selected for any reason and which will be become the initial deposit in the contingency fund for major repairs and replacement costs to be established by the WUA when the subproject is approved.2 10. Endorsement of Subproject Selection. If the pre-feasibility reconnaissance indicates that any of the proposed subprojects do not meet the project's selection criteria, they will be dropped. The CIP Engineer will present the findings of the pre-feasibility reconnaissance to the DDC Infrastructure Subcommittee, who will then endorse the selection of subproject schemes for full feasibility assessment. 11. For STW subprojects for which the project will provide electricity connectivity, the DTO will seek a commitment from the Nepal Electricity Authority (NEA) that the selected STW clusters will be connected to the NEA grid.

1 CIP staff in this case means consultants and the District Irrigation Engineer. The Feasibility Approval Committee

will approve feasibility assessment and detailed design reports. 2 Such fund will not be established for STW subprojects as the Project will only invest in electrification works which

are to be integrated in the electricity grid of the Nepal Electricity Authority.

Annex 1 39

C. Feasibility, Detailed Design, and WUA Agreement 12. Feasibility. Upon receiving proof of the deposit of a refundable processing fee in the DTO account by the WUA, and endorsement of the subproject selection by the DDC, the consultant survey team and CIP Engineer will conduct a feasibility assessment to determine the appropriate least cost irrigation design within the project's per hectare budgetary ceiling, which is also a threshold of economic viability. Preparation of the feasibility and detailed designs will be carried out over a 4-month period, and will be initiated during the dry season and culminate during the monsoon. A WUA committee will be established at the beginning of this stage, if it does not already exist, or be reconstituted to include 33% women members and proportional representation of social groups, at all sections of the command area. 13. The feasibility stage will commence with a joint walk-through survey of the current and proposed system and consult intensively with the WUA regarding their proposed infrastructure improvements and agricultural enhancement aims. The VBFT, under the guidance of the survey team, will collect baseline socio-economic and agricultural data. Farmers will prioritize the structures to be rehabilitated, in consultation with the design engineer. Due diligence will be exercised to verify and document that land required for the subproject is given voluntarily and to identify whether any volunteers of land have lost more than 5% of their land, in which case livelihood restitution measures will have to be specified by the WUA. A feasibility assessment report and subproject implementation plan will be produced which includes the proposed infrastructure design, disaggregated socio-economic data, current and proposed cropping patterns and proposed agricultural enhancement activities, proposed social empowerment activities, microfinance activities, results of resettlement due diligence (if required), and a cost estimate. To ensure that the Project will have a wide coverage of poor irrigation communities, a least-cost design approach will be adopted. The infrastructure improvement plan for STW schemes would simply include the location of the STWs, feasible options for STW development, and plans for connectivity to the electrical grid, if any. 14. For surface water schemes, the District Irrigation Engineer will consult with the WUA regarding its proposals to perform construction works, and assess the capacity of the WUA to perform all or part of the construction based on the complexity of the works. This assessment will be included in the feasibility assessment report. 15. For simple surface water schemes and STW schemes, the feasibility assessment report may already include design drawings and bill of quantities. In this case, no other detailed design will be required. 16. Planning. Agricultural activities will be conducted throughout the subproject implementation cycle. At the feasibility stage, the VBFT (supported by the Irrigation Agronomist/PMIS and the District Agriculture Office and its Agricultural Service Centers) will assess the present situation and determine farmer expectations. They will also compare proposed cropping patterns with food security requirements and market potential. The result will be a calculation of crop water requirements, and adjustments to proposed cropping patterns and yield expectations as necessary. The Irrigation Agronomist/VBFT will summarize the findings and proposed requirements for agricultural support in the feasibility assessment report. This will be reviewed by the District Agriculture Officer when the feasibility report is submitted to the Feasibility Approval (FAC).3

3 The agricultural plans of the subprojects will be reflected in the district agricultural plan and monitored through the

district annual progress report.

40 Annex 1

17. WUA Confirmation. The survey team/DC/VBFT will present the findings of the feasibility assessment to the WUA during a full WUA assembly, and confirm the proposed infrastructure improvement plan. The WUA will verify its commitment to provide its beneficiary contribution according to the the project beneficiary cost share scheme. WUAs not formally registered will register under the Water Resources Act in the District. 18. Subproject Approval. The feasibility report will undergo quality assurance by the Senior Irrigation Engineer, M&E Specialist, and Senior Agriculture Specialist, followed by the CIP Engineer. The CIP Engineer will present the report to the FAC4 for approval. If the subproject is not approved, the commitment money will be refunded to the WUA. 19. Detailed Design. The design engineer of survey team will conduct a detailed irrigation design survey of the approved subproject, and prepare design drawings and the bill of quantities. Quality assurance will also be conducted the Senior Irrigation Engineer. If after conducting detailed design the cost estimate has been increased, the subproject would be re-submitted to and approved by the FAC. Otherwise, the DTO Chief will approve the detailed design. 20. WUA Agreement. The CIP Engineer will facilitate agreement with the WUA for construction. She or he will divide the cost estimate and bill of quantities into works that will be performed by the WUA (both through voluntary contribution and payment for services), materials that will be procured or collected by both the WUA and/or DTO, and works to be performed by a private contractor through national competitive bidding (NCB), if any. The DTO will procure materials and prepare tender documents and manage the bidding process, where necessary. 21. Contracting for Civil Works. Where the WUA undertakes the works, a Memorandum of Agreement between the DTO and WUA will specify the scope, starting date, date of completion, payment terms, and progress and quality review procedures and the responsibilities of the WUA and the DTO, including review, inspection, auditing, and payment procedures. 22. Where the civil works will be performed by a private contractor, the DTO will manage the tender and award through NCB. NCB contract package will include all the subprojects NCB work of the district in one package. The DTO may also procure subproject construction materials through shopping. 23. For STW subprojects for which the project will provide electricity connectivity, the DTO will arrange for the detailed design of the electrification works to and within the cluster and award contracts through NCB or shopping for their installation. Upon completion, the DTO will request the NEA to connect the cluster to the grid. D. Construction 24. Construction Monitoring. The WUA will form a special committee to monitor the construction works. If the WUA is executing the construction, there will be a construction management committee responsible for executing the works with a separate monitoring

4 The FAC is comprised of the Local Development Officer (as chair), District Technical Office Chief (as secretary),

District Agricultural Development Office Chief, and the Irrigation Development Division Chief (for surface water schemes) or Groundwater Branch Office Chief (for groundwater schemes).

Annex 1 41

subcommittee of persons not directly engaged in construction. The VBFT will provide training in construction monitoring and supervision. This includes skill development in maintaining records and support documents, quality controls aspects for cement, gravel, sand; properties of reinforced concrete and curing, and specifics related to gabion works. 25. Any materials procured by the DTO will be delivered by the supplier to the subproject site and inspected by the WUA construction monitoring committee upon delivery. 26. Construction. The CIP Engineer will be responsible to supervise construction and certify stages and expenditures. For construction works performed by WUAs themselves, the VBFT will provide consistent technical assistance to the WUA. On completion of a work stage the VBFT will assist the WUA to prepare a running bill for submission to the DTO. The quality and quantity in the running bill will be verified by the CIP Engineer and payment will be released offsetting the previous advance. A new advance will be released for the next work stage, and the cycle will repeat until the completion of works. 27. Public Audit. The WUA will present its accounts and details of the works accomplished in a transparent manner at a WUA General Assembly facilitated by the VBFT. A clear statement of all receipts, all expenses, and savings will be made publicly. The participants will be able to review books of accounts, measurement books, invoices for material purchases, labour used, and details of contributions made by individual beneficiaries. 28. Completion. Joint inspection by the WUA and the DTO of the completed works will be a condition for the payment of the final bill. Payment will be released on certification of satisfactory completion. This will only be issued after any identified defects and shortcomings have been rectified. 29. Agricultural Extension. Once construction starts, Irrigation Agronomists and Senior Agricultural Specialists will look at the specific budget for the batch and work with PCU to ensure that the budget is allocated to the DDC on time, for implementation E. Operation and Maintenance (O&M) and Water Management 30. O&M Planning. For surface water schemes, the WUA, assisted by the CIP Irrigation Engineer, VBFT, and PMIS, will develop rules and regulations for O&M. The O&M plan will comprise operational aspects (corresponding to flow levels in different cropping seasons), a maintenance plan, and resources required and their mobilization. In the case of surface irrigation systems, the O&M plan will also specify the establishment and use of a contingency fund to finance major repairs and replacement works. It is envisaged that the amount to be deposited in the fund will be at least equal to the value of all externally procured materials such as cement, steel and gabion wire mesh. 31. Water Management. The objectives of water management are to (i) equitably and adequately distribute water, (ii) increase water use efficiency, (iii) improve access to water to the tail areas, and (iv) help the WUA to frame rules and regulations in a participatory manner for water allocation and distribution. The VBFTs will assist WUAs in applying more efficient on-farm water management. Where appropriate, demonstrations in micro-irrigation application technologies (through manual flexible hoses, drip, or sprinklers) will be provided in subproject areas, and the project will facilitate the procurement and installation of micro-irrigation equipment, as requested by households within the subproject command area.

42 Annex 1

F. Agricultural Enhancement 32. Agricultural Support. Appropriate agricultural extension activities will be conducted in each subproject area based on the needs of the WUA and the potential for crop diversification towards higher value crops. Extension activities will be managed and delivered in subproject areas by the VBFT and Irrigation Agronomist/PMIS, with engagement of Department of Agriculture staff as resource persons and experts for training events. Women and disadvantaged groups will be formed to address their specific agricultural needs. Training of trainers programs will be provided in such topics as input supply, crop variety and seed selection, soil preparation and fertility management, and on-farm water management. Other specific training programs may be conducted in crop husbandry (including pest and disease management), seed production and multiplication, and marketing.

Annex 2 43

SUBPROJECT SELECTION CRITERIA

I. POVERTY, WATER MANAGEMENT AND OTHER CRITERIA APPLICABLE FOR ALL SUBPROJECTS

A. Poverty criteria

1. Hill and mountain subprojects

i. More than 60% of the households (HHs) own less than 0.5 ha inside the command area; HHs owning more than 2.5 ha do not own more than 25% of the land within the command area

ii. HHs owning more than 5 ha within the cluster do not own more than 25% of the land within command area

2. Terai subprojects

i. More than 60% of the HHs own less than 1.0 ha inside the command area; HHs owning more than 5.0 ha do not own more than 25% of the land within the command area

ii. HHs owning more than 5 ha within the cluster do not own more than 25% of the land within command area

B. Water resources criteria

i. Subprojects to be located in river basins or sub-basins with sufficient water resources for further irrigation development.

ii. Subprojects should not affect the water rights of downstream users and downstream eco systems; subprojects that have the potential to cause disputes about water rights will not be selected.

C. Irrigation management criteria

i. Consensus among the beneficiary HHs to distribute the water proportionally based on land ownership within the command area. For pond schemes in water scarce areas, distribution among the beneficiary HHs would be on an equal basis.

ii. Consensus among the beneficiary HHs to have at least 33% women representation and proportional representation from disadvantaged groups in the water user association (WUA) executive body and committees.

D. Other criteria

i. Beneficiary HHs deposit Nr 140/ha in the account of the District Technical Office (DTO) when submitting an application (to be transferred to the WUA account to be opened for the contingency fund once the subproject is completed or returned if the subproject is not selected).

ii. Commitment of the beneficiary HHs to contribute in labor, cash, or kind according to the Project's beneficiary cost share arrangements, and to collect an

44 Annex 2

annual contribution (in addition to regular maintenance) for structural replacement costs to be deposited into the WUA’s contingency fund.

iii. The subproject should not encroach on habitats of endangered indigenous peoples, historical and cultural sites, or protected areas. Any land needed for irrigation improvement will be voluntarily acquired.

iv. No schemes will have significant environmental impacts.1

II. TECHNICAL FEASIBILITY CONDITIONS - SURFACE WATER SUBPROJECTS A. Screening2

i. For hill and mountain subprojects - Command area between 10 ha and 25 ha; subprojects with less than 10 ha may only be considered when there are more than 25 beneficiary HHs.

ii. For Terai subprojects – Command area or cluster of command area between 40 and 200 ha.

iii. Evidence of the presence of a WUA or an informal committee representing subgroups of the irrigation community.

iv. Subproject area should not be located downhill of unstable slopes.3 v. None of the current or potential command area of a CIP subproject should be in

a forest area

B. Feasibility Assessment

1. All subprojects i. Dependable irrigation supply to meet the water requirements of the

proposed cropping pattern and intensity

2. Hill and mountain subprojects i. Subprojects with open conveyance system:

a. Potential to increase the irrigated area by at least 15% and increase the overall cropping intensity of at least 10% resulting from an increase in winter and summer crops.

b. In case of lift schemes: electric pump(s) with maximum lift of 40 m and next to Nepal Electricity Authority (NEA) distribution grid.

c. Subproject cost up to $1,000/ha.4

ii. Subprojects with water storage and pipe conveyance system:

1 Impacts that are of high magnitude, mostly irreversible, of long duration, and impact area is considerably beyond

the subproject area. 2 These conditions will be assessed at the pre-feasibility stage by Project engineers. 3 An unstable slope is defined as a slope with history of landslide and a major landslide and erosion area that

requires detailed investigation for stabilizing. 4 All subproject cost ceilings in this document may be revised during project implementation annually based on

review of changes in the prices of outputs or inputs. Area is based on net command area after improvement under CIP. The additional cost to transport construction materials due to the subproject’s remoteness in mountain districts can be excluded from the subproject cost.

Annex 2 45

a. Designed for increase in high-value winter and summer crops, in particular vegetables, and high-value crops occupying at least 25% in total of the command area during the course of the year.

b. Minimum water storage for 12 hour design flow. c. Subproject cost up to $1,500/ha5

3. Terai subprojects

In case of lift schemes: electric pump(s) with maximum lift of 40 m and next to NEA distribution grid.

i. Subprojects for rehabilitation of existing systems:

a. Potential to increase the irrigated area by at least 15% and increase the overall cropping intensity of at least 10 % resulting from an increase in winter and summer crops.

b. Subproject cost up to $1,000/ha.

ii. Subprojects for new irrigation development a. Potential to convert the command area from rainfed to irrigated

agriculture accompanied by an increase in the overall cropping intensity of at least 10%.

b. Subproject cost up to $1,500/ha.

III. TECHNICAL FEASIBILITY CONDITIONS – GROUNDWATER SUBPROJECTS

A. Screening i. A contiguous area (“cluster”) of at least 40 ha/ cluster ii. Presence of an informal group representing all stakeholders within the planned

cluster area iii. Cluster area not receiving surface irrigation water iv. Cluster within about 1 km of NEA 11 kVA grid or roughly estimated to cost up to

$1500/ha v. Cluster located in area with favorable aquifer conditions and low risk of arsenic

contamination B. Feasibility Assessment6

i. Command area of each tubewell: at least 4 ha ii. Minimum potential well yield of 10 l/sec iii. Subproject cost of up to $1500/ha (with electrification) and up to $700/ha (without

electrification)

5 The additional cost to transport construction materials due to the subproject’s remoteness in mountain districts can

be excluded from the subproject cost. 6 Commencement of feasibility assessment will be subject to confirmation from the concerned NEA office

that the electricity grid has sufficient capacity to electrify the proposed cluster and that the cluster will be connected upon its completion.

46 Annex 3

BENEFICIARY COST SHARE

S.N. Types of Schemes Beneficiary Contribution

1. Surface Irrigation Canal Section

Diversion Structure, Main Canal, Branch Canals ( at least 7% of total cost in Labor, Cash or Kind) Micro-irrigation field application equipment including in- field hose pipes, if any (100%)

2. Surface Water pond/Pipes System

Diversion Structure, Distribution Tank with main and lateral pipes and riser outlets (at least 7% of total cost in Labor, Cash or Kind) If micro-irrigation field application equipment is needed to convey water to fields, the cost of in-field hose pipes would be included as beneficiary contribution (toward the minimum 7%). Otherwise, farmer contribution for field application equipment is 100%.

3. Shallow Tube well cluster schemes

Drilling well with pipes

(100%)

Flexible hose pipes

(100%)

Pump set with motor and internal wiring

(100%)

Transmission line from Grids

(0%)

Annex 4 47

CAPACITY DEVELOPMENT PLAN

A. Introduction

1. The Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is implementing an institutional strengthening action plan through assistance of the Asian Development Bank (ADB) and the World Bank. The Community Irrigation Project (the project) capacity development plan is in support of the action plan and will build capacity of (i) local bodies to transparently target project benefits to disadvantaged groups according to sub project selection criteria; (ii) water user associations (WUAs) and individual irrigation farmers to sustainably maintain their irrigation systems and adopt improved irrigated agronomy practices; and (iii) district engineers and agriculture managers to develop small irrigation and sustain infrastructure and agricultural productivity. In the process, the capacity of the executing agency will be built to participate in small irrigation development at the national level and to implement time bound decentralized public development programs in small irrigation. 2. The project implementation arrangements and process have a pronounced mentoring perspective on all levels. In addition the project will provide (i) agriculture trainings and associated demonstrations, (ii) trainings for district engineers and agriculture staff, (iii) WUA and social development trainings, and (iv) training for participating microfinance institutions. Project orientation and planning workshops will also be conducted. Follow-up activities (such as clarifying specific issues, answering questions, solving problems showing up during implementation, and assessment of the quality of the training as perceived by the beneficiaries) will be an integral part of any training provided. B. Agriculture Trainings and Associated Demonstrations

3. Training will be provided on demand, (i.e. targeting the specific problems the beneficiaries face) and will have to be provided timely, (i.e. when farmers encounter problems and need the advice). All training shall be practical (i.e. in the field), including demonstrations and farmer-led experimentation, or visits to other relevant schemes or farmers. 4. Short-duration farmer field training. Groups of 20-25 farmers within a subproject scheme are trained in specific subjects. Demand for training (subjects and number of farmers interested) is discussed upon selection of the subproject, and a respective training plan is elaborated. Trainings are conducted in the field and may include demonstrations, experimentation, and visits to relevant farmers or sites. Trainings during the "implementation phase" (during construction of the irrigation infrastructure) will normally be of the short-duration type. Short-duration farmer field training will usually be carried out as two half-day trainings (since -particularly women- farmers generally cannot devote an entire day to training), whereby flexibility should allow accommodating shorter (half-day or dinner cum training) or longer (up to two days) trainings as well. Short-duration trainings will be complemented by follow-up through the Field Teams and/or longer-term training activities such as Farmer Field Schools. 5. Topics for short-duration trainings may include: (i) Production and use of organic fertilizers; (ii) Community-based seed production; (iii) On-farm water management (e.g. micro irrigation); (iv) Variety and seed selection; (v) Planting time and planting arrangements (including intercropping etc.); (vi) Vegetable nursery management; (vii) Crop rotations for soil fertility and pest/disease management; (viii) Record keeping; (ix) Negotiation and bargaining skills; (x) Quality standards and food safety, grading and packing, safe transport; and (xi) Value adding at community level.

48 Annex 4

6. Longer-duration training throughout crop growing cycle. Farmer Field Schools (FFS) are particularly suited for capacity building in crop-specific husbandry practices, e.g. for newly introduced crops such as vegetables. FFS take place over the entire growing cycle of a specific crop whereby a group of farmers regularly meets (together with a facilitator) and learns from observations in the field where usually two ways of cropping are compared. FFS don't necessarily have to be restricted to one aspect such as Integrated Pest Management (IPM) but can rather embrace whole-crop management (including e.g. on-farm water management) in order to increase efficiency. FFS are particularly suited when new crops are introduced in farming systems, or for crops where farmers regularly face problems. The FFS approach forms part of the agricultural extension strategy under Nepal's national development plan for 2003-2007 (Ministry of Agriculture and Cooperatives 2007). Longer-duration training has not necessarily to be in the strict form of FFS but may be implemented as a continuous training/follow-up over a growing period. 7. Training of trainers (ToT). Since the project Field Teams will generally not consist of agricultural specialists with higher education, training for Field Team members will be required for sound support to farmers. ToTs will be carried out at district level (either at district headquarters or in a particular scheme), covering the specific training topics farmers' groups in the different schemes within the district have ranked highest in priority. Thus, the number of ToTs will usually be somewhat higher than the trainings carried out in a specific scheme, and will include at least one training on social mobilization and facilitation approaches and tools. Since Field Team members will often have to travel considerable distances to the location where a ToT takes place, ToTs will generally last for 3 to 5 days. Resource persons for ToTs may include the project Irrigation Agronomists and/or external experts [from government organizations (GOs) such as District Agriculture Development Office (DADOs), research, NGOs or other projects] as required/appropriate. Adapted training material/handouts will be provided for Field Team members as well as for farmers. 8. Although the project support will primarily target selected subproject schemes, extension and agricultural support activities should aim at reaching as many farmers as possible. Decentralized extension approaches through NGOs and/or leader farmers (farmer-to-farmer extension) have proven successful in expanding the reach of the resource-poor governmental extension system). Realizing that no single agency is able to offer the whole range of services required by farmers, the Nepal Agricultural Extension Strategy 2007 foresees that public sector extension services will work hand in hand with the private sector, NGOs and community-based organizations (CBOs). The the project will therefore invite selected staff of NGOs and/or GOs (e.g. DADOs) and experienced leader farmers to the ToTs of Field Teams in view of making the project ToTs more effective by reaching beyond its target schemes. C. WUA Development Trainings

9. Long term mentoring by Village Based Field Team: WUAs and irrigation communities will need support (i) to transform existing functioning community organization, for compatible interaction with public programs, into formal WUA entities that are genuine and do not violate the functionality of the informal process; (ii) to institute, over and above the regular labor contributions for the operation and maintenance (O&M), an annual water user charge which is allowed to accumulate as savings in a local micro finance institution for future infrastructure rehabilitation; (iii) during civil works execution technical guidance on work scheduling and submission of running bills after completion of stages of construction to the Public Engineer.

Annex 4 49

10. Management Training: In addition to the long term mentoring by Village Based Field Teams (VBFT), during feasibility detailed design, construction and post construction the WUAs will be provided management trainings through the National Federation of Irrigation Water Users Association, Nepal (NFIWUAN). NIFIWUAN is providing similar training for other projects. 11. A two-day training module will be used by NFIWUAN to include (i) drafting of the constitution, registration, and record keeping; (ii) internal resource mobilization and fund raising; and (iii) share system development, dispute resolution and the public auditing process. Training will be organized at respective project district headquarters in four batches, corresponding to the sub project construction batches. Three members from each WUA, of whom at least one will be a woman, will participate. Office holding members of respective NFIWUAN district chapters, and VBFTs will also participate. 12. Construction skills training in gabion tying and masonry and other techniques to handle concrete, if feasible, will be imparted to WUA members. These skills will not only contribute to the sustainability of the irrigation infrastructure of sub projects but also enhance the employability and income generation potential of the trainees. D. Supplementary Training Support for Disadvantaged Groups

13. The project targets primarily marginal and small farmers (<1ha in Terai and 0.5ha in the hills) who will form at least 60% of all beneficiaries. Proportions of socially excluded groups will be higher than the averages for each concerned project district. The poor primary target group faces considerable obstacles to participation and benefit in the form of resource poverty, remoteness, social exclusion, domination by large and medium farmers, lack of education, exposure and access to services and markets, and consequently low absorption capacities regarding new development opportunities. Most of these obstacles count in equal measure for women. To make their participation effective and beneficial, the target group requires extra capacity building prior to participation in trainings, WUAs and decision making processes. For more equitable benefit distribution, the poorest groups will require technologies and trainings tailored to their constraints to maximize benefits to levels comparable to the less poor in the system. For them the project will supplement its training and capacity building with: (i) coaching for effective participation; and (ii) linkages to third party programs that may be relevant to their needs. E. District Engineers and Agriculture Staff Training

14. District Irrigation Engineers to be posted under the project in the Irrigation and other Infrastructure section of the district technical office (DTO) and field design engineers from the Technical Support Team will receive training and refresher courses in small irrigation infrastructure design and O&M at a local training institution. In terms of irrigation design, the courses will focus on proven least-cost design solutions and will also include low-cost micro-irrigation techniques. 15. District Agriculture Development Officers (DADOs) are increasingly finding the need to build partnerships with the private sector, non government organizations, and related projects to further the agriculture development goals of their respective districts and meet the needs of farmers. The project offers DADOs of participating are will participate in a specially designed management course at a local training institution on “Working in Partnership for Agriculture Development”.

50 Annex 4

F. Microfinance Support Training

16. The project will support capacity enhancement of Microfinance Institutions (MFIs), where competent MFIs are not currently active in its selected project areas. Focus will be on local cooperatives. The training will be conducted through Rural Microfinance Development Center (RMDC) implementation partners for provision of micro finance to the project’s beneficiary farmers. Recently RMDC has initiated promotional activities for the expansion of microfinance program in hills and remote areas. Need assessment will be done before finalizing any training. The selection criteria and management of training will be performed by RMDC so that after training participating MFIs within project districts become eligible for loans from RMDC. 17. Training Plan: The capacity building of MFI will start with the selection of MFIs in the project districts. The second step will be sending some of the Board members of the identified MFIs to successful MFIs for observation and learning. RMDC will then arrange an interaction program for those Board members with RMDC in order to make them familiar with the microfinance principles and satisfy their operational issues experienced during their visit to MFIs. Back home from the interaction, they will discuss with their other fellow members of the Board and decide whether to start microfinance or not. When they agree to start microfinance in their institution, RMDC will support them to prepare a business plan and submit a loan application to RMDC along with other necessary documents. After submission of loan application to RMDC, at least 2 staffs (1 manager and a loan officer) of the MFI will be sent to the successful MFIs for 3 to 6 months for on the job training. They complete the training and come back to the office with samples of necessary forms, formats and documents and kick off the microfinance operation. Every new MFI will pass through this process. When they start microfinance, other trainings like microfinance management, accounts, financial management, business planning, supervision and monitoring etc. to the Board of Directors, branch managers and loan officers will be provided separately. In addition to the above trainings, onsite consultancy and counseling services to the weak MFIs will be provided as per their requirements. The established MFI operating in the project area will be provided with other trainings as per their needs. Workshops of Board members will be organized every year to enhance their capacity. Besides, budget and program review workshops will also be arranged annually for the chief executives of the MFIs. Social mobilization, leadership and skill development training and workshops to the ultimate beneficiaries will be organized regularly by MFIs with support from RMDC. G. Strengthening Targeted Poverty Planning and Transparent Scheme Selection

Capacity

18. Project orientation and planning workshops will be held in participating districts. An information dissemination plan on the project objectives, approach, process, selection criteria and scope will be developed and require materials designed and produced for dissemination to potential beneficiaries. District stakeholders meetings will serve as a start-up and planning meetings. Project teams will visit each ward in the selected target areas and disseminate information and announce the schedule of subproject selection meetings at the Village Development Committee (VDC). VDC level workshops/ planning meetings will be conducted with representation from wards and citizens groups to arrive at shortlists for prefeasibility reconnaissance.

Annex 4 51

H. DOLIDAR Capacity Building for Small Irrigation Development 19. Skill up-gradation training for all DTO sub engineers and assistant sub engineers in the participating districts will be conducted under the project to enhance capacity in rural infrastructure quality monitoring and assurance and engineering risk mitigation for natural disaster. These trainings will be offered in the district headquarters. 20. Capacity development of DOLIDAR and District engineers. The project will arrange for and finance a professional training course in small irrigation systems in a nearby country. Project funds will also support advanced training for select DOLIDAR and DTO engineers involved in irrigation projects who exhibit exceptional performance.

52 Annex 5

PROCUREMENT PLAN

Project Name: Community Irrigation Project Grant Number: Grant Amount: $ 26.40 million Executing Agency: Ministry of Local Development

through the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR), Government of Nepal

Date of first Procurement Plan: Date of this Procurement Plan: 29 August 2010

A. Process Thresholds, Review, and 18-Month Procurement Plan

1. Project Procurement Thresholds

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

Procurement of Goods and Works Method Threshold International Competitive Bidding for Works More than $1,000,000 International Competitive Bidding for Goods More than $500,000 National Competitive Bidding for Works Equivalent to $1,000,000 or less National Competitive Bidding for Goods Equivalent to $500,000 or less Shopping for Works Equivalent to $100,000 or less Shopping for Goods Equivalent to $30,000 or less Community Participation Equivalent to Rs 3,500,000

2. ADB Prior or Post Review

2. Except as ADB may otherwise agree, the following prior or post-review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement of Goods and Works Procurement Method Prior or Post Comments International Competitive Bidding Works Prior International Competitive Bidding Goods Prior National Competitive Bidding Works Prior/Post Prior for the first review in

each district, post for all subsequent reviews

National Competitive Bidding Goods Prior/Post Prior if it exceeds $100,000, post if it is less than $100,000

Shopping for Works Post Shopping for Goods Post

Recruitment of Consulting Firms Quality and Cost-Based Selection Prior Quality-Based Selection Prior Other selection methods: Consultants’ Qualification Selection (CQS), Least Cost Selection (LCS), Fixed Budget (FB) and Single Source Selection (SSS)

Prior

Recruitment of Individual Consultants Individual Consultants Selection Prior

ADB = Asian Development Bank, PAI = Project Administration Instructions.

3. Goods and Works Contracts Estimated to Cost More than $1 Million

3. Not applicable under the Project

Annex 5 53

4. Consulting Services Contracts Estimated to Cost More than $100,000

4. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months. The total contract value includes both the ADB and Government share of financing.

General

Description Contract Value Recruitment

Method Advertisement

Date (quarter/year)

International or National

Assignment

Comments

$5.69 million

QCBS Q4/2010 National Joint Venture with engineering firm(s) and

NGO(s)

Project Management

and Implementation

Consultant $317,000 ICS Q4/2010 International

5. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000

5. The following table groups smaller-value goods, works, and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months. The total contract value includes both the ADB and Government share of financing.

General

Description Value of Contracts

(cumulative ) Number of Contracts

Procurement / Recruitment

Method

Comments

Community contracts to WUAs

Multiple CP through WUAs

Small-scale Civil Works

Multiple NCB/Shopping

Materials for Civil Works

$4.0 million


The value of contracts represents roughly the cost of civil works for

the first of four batches of subprojects

Procurement of Office Equipment

$40,000 Multiple NCB/Shopping Goods contract for RMDC training

program Procurement of Office Supply

$2,000 Multiple NCB/Shopping Financed by the Government

Vehicle (7 4WD) $340,000

1 NCB

Motorcycle - 30 $76,000

Multiple

NCB/shopping

Procurement Specialist

$10,000 1 ICS

CP = community procurement, ICS= Individual consultant selection, NCB = National Competitive Bidding, QCBS = quality and cost-based selection, WUA = water users association, RMDC = Rural Microfinance Development Center. 6. The first draft English language version of the NCB documents should be submitted for ADB review and approval regardless of the estimated contract amount. ADB-approved procurement documents should be used as a model for all procurement financed by ADB for the project, and need not be subjected to further review unless specified in the procurement plan, or required under special arrangements.

54 Annex 5

B. Indicative List of Package Required under the Project

7. The following table provides an indicative list of all procurement (goods, works, and consulting services) over the life of the project. Contracts financed by the recipient and others should also be indicated, with an appropriate notation in the Comments section.

General

Description Estimated Value

(cumulative) Estimated Number of Contracts

Procurement Method

Domestic Preference Applicable

Comments

Goods and Supplies Vehicles $340,000 1 NCB Motorcycles $76,000 Multiple NCB/Shopping Procurement of Office Equipment

$40,000 Multiple NCB/Shopping

Procurement of Office Supply


Procurement of Office Equipment


Works Civil Works Contract to WUAs

Multiple CP Excludes works that will be done by the

WUAs as beneficiary contribution

Civil Works contracts


Materials for Civil Works

$20.3 million


Consulting Services Joint Venture for Project Management and Implementation

$ 5.69 million

1

QCBS

Procurement Specialist

$10,000 1 ICS National assignment

Project Management Specialist

$ 317,000 1 ICS International assignment

CP = community procurement, ICS = individual consultant selection, NCB= national competitive bidding, QCBS = quality and cost-based selection, WUA = water users association. C. National Competitive Bidding (NCB Annex)

8. National competitive bidding (NCB) shall be in accordance with that described as "by inviting bids and a national level" as set forth in "The Public Procurement Act, 2007" (PPA) and "The Public Procurement Regulations, 2007" (PPR) and subject to the following:

i. The first NCB document for both goods and works procurement shall be

reviewed and approved by ADB prior to issue. These will be used for all NCB procurement under the project. The document shall include qualification and evaluation criteria and ADB's right to audit and inspect in accordance with para 1.14 of ADB's Procurement Guidelines. No other criteria other than that described in the bidding document may be used to determine the lowest evaluated responsive bidder and no form of domestic preference may be employed. A positive assessment of a bidder's qualifications to perform a contract will be a pre-requisite to an award.

Annex 5 55

ii. All qualified ADB member bidders and ADB member produced goods, services and works shall be eligible. Registration and licensing shall be permitted only as a condition of contract award and not participation in bidding. No award may be withdrawn for failure to obtain tax registration; license or fulfill any similar requirement without ADB's prior concurrence. No bidder will be held ineligible based on provision 63 of the PPA without ADB prior concurrence.

iii. Invitations to bid shall be advertised in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of twenty-eight (28) days for the preparation and submission of bids. Invitations for bids for contracts estimated at $500,000 or more for goods and $1,000,000 or more for civil works shall be advertised on ADB’s website. No restriction will be placed on the sale of bidding documents.

iv. The approved Standing List of a Procuring Entity prepared in accordance with the law shall only be accepted to supplement an advertised open pre-qualification exercise for the specific contract provided that those on the standing list meet the qualification criteria.

v. Bids shall be opened at a single location immediately after the deadline for submission. Multiple locations for submission and opening are not acceptable.

vi. Government-owned enterprises in Nepal shall be eligible to participate only if they meet the conditions of para 1.8 (c) of the Procurement Guidelines.

vii. Extension of bid validity of more than 4 weeks beyond the original validity shall not be allowed without the prior concurrence of ADB.

viii. Cancellation of bidding and re-bidding shall not be carried out without the prior concurrence of ADB.

ix. Percentage variations from rates fixed by a district rate fixation committee shall not be used for the purpose of evaluating bids.

9. In the event of a conflict between these provisions and the law, these provisions shall

prevail.

56 Annex 6

DRAFT OUTLINE TERMS OF REFERENCE FOR CONSULTANT/ NGO SERVICES –

PROJECT MANAGEMENT AND IMPLEMENTATION SUPPORT FOR DOLIDAR’S PROJECT COORDINATION UNIT

I. INTRODUCTION 1. The Community Irrigation Project (the project) will develop or improve small-scale irrigation systems in twelve districts in Nepal through a community-driven process targeted to the poor, women, and other disadvantaged groups. Small irrigation systems are defined as systems having less than 25 hectares of irrigation area in the hills and mountains and less than 200 hectares in the Terai plains. The participating districts were selected based on high poverty, food insecurity and irrigation potential, and include Kanchanpur, Kailali, Dang, Kapilvastu in the Terai plains, Doti, Salyan, Rukum, Rolpa, Pyuthan in the hills, and Bajhang, Jumla, Mugu in the mountains. 2. Ministry of Local Development (MLD) through Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is the Executing Agency for the the project. District Development Committees (DDCs) and the Rural Microfinance Development Center (RMDC) will be the implementing agencies and Water Users Associations (WUAs) implementation partners. DOLIDAR will have overall responsibility for: (i) project management and implementation; (ii) reporting on both physical and financial progress; (iii) compliance with environmental and social safeguard requirements; and (vi) oversight of subproject implementation by DDCs. DOLIDAR will establish a Project Coordination Unit (PCU) headed by a Project Coordinator and comprising staff in the fields of engineering, procurement and accounting.

3. The Joint Venture package (JV) of an engineering firm(s) and NGO(s) will assist DOLIDAR and the DDCs in project management and implementation. The scope of services to be provided includes (i) project management and implementation support to the PCU, and (ii) assistance in the identification and screening of potential subprojects, (iii) strengthening water user associations (WUAs); (iv) undertaking feasibility assessments of screened subprojects using a comprehensive participatory approach, (v) preparing detailed designs and bill of quantities (BOQs), (vi) support to Water Users Associations (WUAs) in undertaking subproject irrigation works and supervising construction, and (vii) developing and implementing agricultural extension programs and linkages to other agricultural support programs. The PCU will also be supported during project start-up by two individual consultants – a procurement specialist (national) and project management specialist (international). 4. The terms of reference have been written envisaging a meaningful relationship between a technical firm and an NGO in order to combine the best of technical good practice and grass-roots community-driven development experience. Therefore the JV will be evaluated in terms of how it proposes to effectively combine such expertise. Certain positions are designated to be fielded from the NGO and others from the firm to ensure that the JV demonstrates a balance between the NGO and firm. Quality- and cost-based selection method will be used, with full technical proposals submitted for evaluation. 5. The JV will provide a team of experts over a period of 5.5 years starting in June 2011. The JV will provide a total of 161 person-months of national consulting/NGO services (Table A6.1). It is envisaged that central-level professionals will commence services in July 2011 and district-level professionals in October 2011 and village-based field teams in November 2011.

Annex 6 57

Table A6.1: Summary of JV Services

Expertise Person-months (national)

Professional Services from the NGO: - Monitoring & Evaluation Specialist 40- Senior Agriculture Specialist 22- District Coordinator (12) 666- Irrigation Agronomists (2) 116

Professional Services from the Firm: - Team Leader 61- Senior Irrigation Engineer 38- Field Design Engineers (6) 138

Total Professional Services 1081 Subprofessional Services from the NGO:

- Social Mobilizers (12-24) 628- Agriculture Extensionists (12-24) 628

Subprofessional Services from the Firm: - Subengineers (12) 264- Assistant subengineers (24) 612

Total Subprofessional Services 2132

1. Organization and Reporting 6. The JV will report directly to the Project Coordinator of DOLIDAR’s PCU and will closely liaise with the DDC officials and other concerned district-level officials and other stakeholders. 7. The JV will establish an office in Kathmandu and in each of the 12 districts.

8. The JV shall prepare reports in English and in Nepali language and provide five copies plus one electronic copy, each in a format and manner acceptable to DOLIDAR.1 Reports will be prepared initially in draft, and finalized within two weeks following receipt of DOLIDAR’s comments; these would generally be provided within one week of receipt of the draft report. The reporting requirements of the project may be more intensive towards the end of each financial year. 9. Inception Report. An Inception Report will be submitted within two months after commencement of services. It will contain a detailed program implementation plan for the different project activities. The report will flag any issues which the JV team has identified or anticipated which require an early intervention by DOLIDAR. The report will also include a description and example of the standardized forms, charts and tables that will constitute the trimester and annual progress reports (see below).

1 All records, data, and reports prepared shall be submitted in hard copy as needed, and in soft copy.

58 Annex 6

10. Trimester and Annual Progress Reports.2 Progress reports will summarize progress made over the covered period for each of the project’s activities. These reports should flag any major issues that have arisen during the period, indicating the means to resolve them in a timely fashion to ensure the successful conduct of the JV services and the implementation of the Project. Issues that have not been successfully resolved or pending issues will be highlighted for the attention of senior management. To simplify the timely preparation of these reports standardized forms, charts and tables will be utilized. 11. Mid-Term Review Report. The mid-term review will provide a comprehensive assessment of project achievements at mid-term (early 2014) against the original project outcome and output targets. The report will report on all aspects of project implementation progress and identify the major constraints in achieving the original targets and suggest ways to overcome these. 12. Completion Report. The coverage and contents of the report will be an input to the Project Completion Report that DOLIDAR will submit to ADB upon project completion. The report will also detail the tasks performed by the JV, and include recommendations for future projects. 13. Monthly Progress Report. Monthly Progress Reports will highlight significant achievements and major implementation issues with suggestions for addressing these. 14. Other Reports and Documentation. In addition to the above regular reports, the JV will assist DOLIDAR’s PCU in providing the following reports as needed under the assignment:

i. a Capacity/Training Needs Assessment and a Capacity Building/Training Plan (within four months after commencement of services);

ii. status reports required by DOLIDAR and ADB; iii. yearly Monitoring and Evaluation Reports; iv. draft responses to comments/clarification from the ADB; and v. material (written, audiovisual) on project results achieved to be used as public

relation material to disseminate through different media and reach out to communities, NGOs and other stakeholders; and

vi. other reports that may be required by DOLIDAR during project implementation.

2. Professionals (National) Team Leader / Project Management Specialist (1 position; 61 person-months in total) Duty Station : Kathmandu with frequent visits to project districts Responsible to

: Project Coordinator, PCU

Main Duties : (i) Responsible for overall management and delivery of the JV services to meet the requirements of the Project;

(ii) Direct, coordinate and monitor the JV team under the overall guidance of the PCU Project Coordinator; ensure that a consistent approach is adopted in accordance with the agreed implementation arrangements;

(iii) Assist the PCU to coordinate the project’s district-level activities with the DDCs;

(iv) Assist the PCU in the day-to-day project management by developing

2 Trimester reports will reflect the periods 16 July to 15 November, 16 November to 15 March, and 16 March to 15

July.

Annex 6 59

Team Leader / Project Management Specialist (1 position; 61 person-months in total) implementation approaches, procedures, and guidelines for key Project activities;

(v) Conduct orientation workshops for officials involved in the project’s implementation and organize review workshops during project implementation to discuss work plans and progress and identify problems;

(vi) Assist the PCU in preparing the detailed project implementation schedules, and work plans;

(vii) Plan and coordinate the various training and capacity building programs to be implemented under the Project;

(viii) Act as the Secretary of the CC; prepare necessary briefing and issues papers in preparation of the monthly CC meetings and prepare the minutes of the MC meetings.

Qualifications and Experience

: (i) An MSc degree in engineering or agriculture and a minimum of 10 years experience in leading teams of multidisciplinary experts;

(ii) Experience as expert and/or team leader for externally funded projects in Nepal or other countries in the Region;

(iii) Experience in irrigation, agriculture or rural development projects in Nepal;

(iv) Experience in working with/for an NGOs would be an advantage: (v) Fluent in written and spoken English, and an ability to write clear

concise reports; good communication skills; (vi) Excellent computer skills are essential.

Monitoring & Evaluation (M&E) Specialist (1 position; 40 person-months spread over the contract period) Duty Station : Part-time Kathmandu; part-time in district offices with frequent visits to

subproject sites Responsible to : Team Leader/ Project Management Specialist Main Duties : (i) Review M&E procedures and systems from previous donor-funded

projects to ascertain the strengths and weaknesses of those systems; (ii) Develop an appropriate M&E strategy and plan, including input,

progress, output and impact indicators and prepare and operationalize a computerized (internet-based) M&E system for use by the district- and village-based teams in reporting progress to the PCU;

(iii) Develop an appropriate mechanism and procedures for use by the JV team for the M&E of all field activities and preparation of indicators disaggregated by sex and ethnic/caste group for assessment of performance;

(iv) With involvement of other concerned JV specialist and through the district teams, collect the necessary data for baseline, midterm, and final impact evaluation;

(v) Assess the quality and completeness of data being gathered, and meet with stakeholders, including water users associations (WUAs), to discuss the purpose of M&E and how the community, WUAs and farmers can benefit by helping to collect and report this information;

(vi) Together with the other JV specialists, develop a survey tool to collect on a quarterly basis data to measure ongoing project benefits and

60 Annex 6

Monitoring & Evaluation (M&E) Specialist (1 position; 40 person-months spread over the contract period)

impacts for each subproject;3 and (vii) Prepare annual in-depth project M&E report discussing impacts from

gender, ethnicity and poverty reduction perspectives, utilizing qualitative instruments and case studies. The reports will include feedback from project beneficiaries and highlight successes and lessons learned.

(viii) Take the lead on the gender, social inclusion, consultation, resettlement, indigenous people and other social safeguards elements of the project;

(ix) Develop short step-wise field staff implementation guidelines and checklists for the district teams for the implementation of the Consultation and Participation Plan, Gender Action Plan, Resettlement Framework, and Indigenous People Framework;

(x) Coordinate and support the mobilization of JV team through orientation, training workshops, and information material production for social mobilization, the Gender Action Plan, Resettlement Framework, Indigenous People Framework, and Consultation and Participation Plan:

(xi) Assist and monitor the project VDC/Ilaka selection and planning process, propose amendments if necessary, and support the district and village-based teams through backstopping; and

(xii) monitor the subproject selection, design and implementation process and support the district- and village-based teams through backstopping and monitoring.

Qualifications and experience

: (i) A Master’s degree in social sciences with a minimum experience of 5 years experience in M&E programs related to externally funded projects;

(ii) Comprehensive knowledge of database systems; excellent computer skills are essential;

(iii) Experience in developing field implementation guidelines, and in implementing consultation and participation, gender, resettlement, and indigenous peoples plans; and

(iv) Proficient in written and spoken English, and an ability to write clear concise reports.

Senior Irrigation Engineer / Training Specialist (1 position; 38 person-months over the contract period) Duty Station : Part-time Kathmandu; part-time in district offices with frequent visits to

subproject sites Responsible to : Team Leader/ Project Management Specialist; coordinates with the

District Irrigation Engineers Main Duties : (i) At central level, liaise with other government and non-government

agencies involved in irrigation in the Project area;

3 All project data should be disaggregated by sex and ethnic/caste group, as well as area and land holding, and

length of time under the project. All data needs to be analyzed along these lines in M&E reports, including gender of farmers, not simply gender of the household head. Therefore initial baseline collection needs to identify whether a household contains female farmers, male farmers, or both, and track project impacts accordingly.

Annex 6 61

Senior Irrigation Engineer / Training Specialist (1 position; 38 person-months over the contract period)

(ii) During the Project’s inception phase, prepare simple, standardized, well-structured, uniform procedures and template-driven report formats for subproject identification, survey, feasibility assessment, and detailed design/cost estimate preparation. For subproject identification and preparation, recent technology should be used: GIS-aided data collection and survey, GIS mapping, use of DGPS equipment for detailed surveys, digital topography maps from the survey department, and recent satellite imagery and recent digital elevation models, if available;

(iii) Supervise the preparation of a GIS-based database for infrastructure development in subprojects

(iv) Coordinate with the PCU and the District Irrigation Engineers on the project’s engineering aspects; provide technical information and data as required;

(v) Coordinate the project’s engineering activities in all project districts; ensure that the JV team and other stakeholders are kept fully informed on procedures and progress;

(vi) Review subproject feasibility reports prepared by the JV team prior to submission to the Feasibility Approval Committee;

(vii) Oversee and guide the JV team regarding the project’s engineering aspects so that satisfactory design and construction standards are met.

(viii) Provide technical advice to the JV team and review designs and costs to ensure maximum cost-effectiveness for all works.

(ix) Work with the District Irrigation Engineers to establish at district level appropriate databases for small-scale irrigation development during the early phase of the Project;

(x) Conduct a Capacity/ Training Needs Assessment and develop proposals for capacity building and training for DOLIDAR and DDC staff in engineering aspects;

(xi) Assist the PCU in organizing on-the-job training and arranging formal training for officials staff involved in the Project’s irrigation development and other concerned stakeholders

(xii) Conduct on-the-job training for District Irrigation Engineers. Qualifications and experience

: (i) A MSc degree in civil irrigation/water resources engineering; a relevant post-graduate qualification in training would be an additional asset;

(ii) A minimum of 5 years experience working in irrigation development including substantial experience both in planning, designing and implementing small-scale irrigation schemes;

(iii) Proven experience of participatory approaches and training is essential;

(iv) Excellent GIS skills; (v) Excellent computer skills; autoCAD skills would be an asset; and. (vi) Fluency in written and spoken English, and an ability to write clear

concise reports, is required. Senior Agriculture Specialist (1 position; 22 months over total contract period) Duty Station : Part-time Kathmandu; part-time in district offices with frequent visits to

62 Annex 6

Senior Agriculture Specialist (1 position; 22 months over total contract period) subproject sites

Responsible to : Team Leader/ Project Management Specialist; coordinates with the District Agriculture Development Officers (DADO)

Main Duties : (i) At central level, liaise with other government and non-government agencies involved in agriculture development in the Project districts;

(ii) Coordinate with the PCU and the DADO’s on the project’s agriculture development aspects; provide technical information and data as required;

(iii) Coordinate the project’s agriculture activities in all project districts; ensure that the JV team and other stakeholders are kept fully informed on procedures and progress;

(iv) Review subproject feasibility reports prepared by the JV team prior to submission to the Feasibility Approval Committee;

(v) Oversee and guide the agronomists and village-based field teams regarding the project’s agriculture aspects;

(vi) Assess the possibilities of linkages between the Project’s agricultural activities with other agriculture support programs in the project districts and facilitate such linkages during project implementation;

(vii) Assess the potential for crop diversification towards high value crops in the project areas; establish linkages with the relevant players in the value chain to support crop diversification in project subprojects;

(viii) Assess the feasibility of promoting in-field micro-irrigation for high-value crops in project subprojects and establish linkages between WUAs and suppliers of micro-irrigation equipment;

(ix) Work with the DADOs to establish appropriate databases for the CIP subprojects during the early phase of the project: Organize and conduct training of the Village-based Field Teams, District field staff and MFIs operating in the subdistricts;

(x) Monitor and evaluate all aspects of the project’s agriculture development activities through regular field visits to the project’s districts and subprojects.

Qualifications and experience

: (i) A MSc degree in Agriculture (Agricultural Economics, Agronomy, or related subject) with a minimum of 5 years of experience in irrigated agricultural development projects, preferably projects with a focus on women and disadvantaged groups;

(ii) Experience in field-level program implementation and in conducting training of trainers;

(iii) Experience in participatory approaches is essential; and (iv) Fluency in written and spoken English, and an ability to write clear

concise reports. District Coordinator (12 positions; 666 person-months in total) Duty Station : In one of six districts to be covered by the JV; frequent travel within the

district Responsible to/ operationally guided by

: The Team Leader; coordinates closely with the Chief of the DTO, the District Irrigation Engineer and the DADO; receives subject-matter related guidance from the central-level specialists

Main Duties : (i) Responsible for overall management of the Project’s district and subproject activities;

(i) Mentor local bodies for poverty-targeted area and scheme selection;

Annex 6 63

District Coordinator (12 positions; 666 person-months in total) (ii) Ensure quality of the social mobilization process and participatory

approach for feasibility assessments, design and implementation; (iii) Ensure WUAs are provided adequate support by the VBFTs during

construction activities; (iv) Coordinate the delivery of irrigated agriculture capacity building and

support to irrigation communities; (v) Liaise with MFIs to facilitate access to microfinance products for the

projects WUAs; (vi) Establish and strengthen linkages with related organizations at

district level; and (vii) Ensure the timely provision of data and information as requested by

the PCU; and (viii) Coordinate field visits by the central-level specialists


: Master's degree in social sciences or agriculture, with 5 years professional experience. Experience in irrigation projects preferred.

Field Design Engineer (6 positions; to oversee production of 300 subproject design reports. In addition, 138 person-months for other activities during construction and post-construction) Duty Station : Assigned to two districts; frequent travel within the district Responsible to/ operationally guided by

: The Senior Irrigation Engineer; coordinates closely with the District Irrigation Engineer and the DADO

Main Duties : (i) For each district and subproject, the field design engineers will work with subengineers and assistant subengineers to produce feasibility and detailed design reports for subprojects, to be remunerated on an output basis. For the field design engineer, this involves:

1. Assisting in the rapid assessment of irrigation potential in the poorer VDCs in each district through the assessment of water resources and potential command areas;

2. Taking the lead in the screening visits to potential irrigation schemes to make preliminary assessments of scheme feasibility; providing a brief summary of each schemes visited and make prefeasibility recommendations;

3. Taking the lead in subproject feasibility assessments; preparing comprehensive subproject feasibility reports; submitting the draft reports to the Senior Irrigation Engineer for review; submitting the reports to the DDC’s Feasibility Approval Committee after review by the Senior Irrigation Engineer;

4. Overseeing site surveys of screened irrigation schemes, ensuring that farmers are involved and consulted throughout. Preparing detailed designs, costs and bill of quantities (BoQs). Ensuring that farmers understand the final designs and endorse them;

(ii) Monitor scheme construction regularly, adapting designs if required, and ensuring that the quality of materials and workmanship is

64 Annex 6

Field Design Engineer (6 positions; to oversee production of 300 subproject design reports. In addition, 138 person-months for other activities during construction and post-construction)

satisfactory; report to the District Irrigation Engineer issues that need her/his attention;

(iii) Provide support to WUAs for O&M activities such as the development of seasonal water management plans, maintenance plans and further improvements to the distribution systems; and

(iv) Monitor and evaluate all aspects of irrigation activities through regular field visits.


: (i) A bachelor's degree in irrigation or civil engineering and a minimum of 3 years experience in the preparation of feasibility studies, surveying, design and construction of irrigation projects;

(ii) Experience in participatory approaches, community construction and maintenance of irrigation schemes would be an advantage;

(iii) Ability to prepare comprehensive reports; (iv) Experience in use of GPS/DGPS-based survey procedures,

GPS/DGPS data processing, GPS-based mapping, use of digital topographical maps, satellite imagery, DEMs, and remote sensing information is required; and

(v) AutoCAD skills would be an asset. Irrigation Agronomist (2 positions; 116 person-months over the contract period) Duty Station : Assigned to three districts; frequent travel within the district Responsible to/ operationally guided by

: The Senior Agriculture Specialist; coordinates closely with the DADO and the District Irrigation Engineer.

Main Duties : (i) Guide and supervise agricultural support activities in the field including field demonstrations, farmer field schools, etc;

(ii) play key role in reconnaissance, feasibility assessments (cropping patterns, water requirements) and planning of agricultural support activities for individual schemes and at district level;

(iii) liaise with NGOs with ongoing agriculture programs and MFIs operating in the districts;

(iv) Liaise with other stakeholders at district level for input supplies, the agriculture value chain, etc

(v) resource person for trainings (mainly ToTs); (vi) facilitate linkages of farmers with traders, market centers and other

value chain actors; (vii) undertake analyses and evaluation of monitoring results.


: (i) A Bachelor’s degree in Agriculture (Agricultural Economics, Agronomy, or related subject) with a minimum of 3 years of field experience in irrigated agricultural development projects, preferably projects with a focus on women and disadvantaged groups;

(ii) Preferably female; (iii) Experience in field-level program implementation and in conducting

training to field-based staff and farmers (familiar with training modules for ToTs);

(iv) Experience in participatory approaches is essential.

Annex 6 65

3. Subprofessionals (National) 15. In addition to the specialists mentioned above, the JV will field village-based field teams (VBFTs) in each district comprised of social mobilizers, agricultural extensionists, field subengineers, and assistant subengineers. The District Coordinators will coordinate the activities of these teams in consultation with the District Engineer and the DADO. The members of VBFTs will be recruited from the district where they will work. The JV will provide pre-fielding and on-the-job-training and guidance to all consultants. 16. The JV field subengineers, assistant subengineers will assist in undertaking engineering surveys, and preparing the feasibility assessments and detailed designs. They will also conduct environmental due diligence as part of subproject preparation. The engineering teams will also be responsible for construction supervision, and assisting WUAs to prepare operation/maintenance and water management plans, including the use of improved field-based application techniques. The subengineers will have at least 5 years general work experience, with at least 3 years in irrigation projects. They will have a diploma in civil engineering (CTEVT-recognized and or equivalent), and have autocad training and good computer skills. The assistant subengineers will have at least 3 years general work experience, and have completed a CTEVT-recognized A.S.E. course. Experience in the use of GPS/DGPS equipment, GPS data processing, and GIS mapping would be an asset for both the subengineers and assistant subengineers. 17. The social mobilizers will perform all social development functions in the subproject areas, under the guidance of the district coordinators and M&E specialist, including constituting WUAs, mentoring and training WUA leaders, collecting socio-economic data, and preparing resettlement and indigenous peoples documents. The social mobilizers will have at least 3 years relevant work experience and an intermediate-level education. 18. The agricultural extensionists will collect data on current and planned agricultural activities, prepare site-specific agricultural development plans for inclusion on subproject feasibility reports, and implement the approved agricultural development plans. They will have at least 3 years agriculture experience and have completed either an intermediate science course in agriculture or a CTEVT-certified agriculture extension course.

4. Counterpart Facilities

19. DOLIDAR will provide 6 vehicles for use by the JV. The contract of the JV will include a provision for the procurement of computers and office equipment for use by the JV team.

5. Cost Estimate

20. The cost is estimated at $5,690,000. See Table A6.2 for the breakdown. The field engineering personnel will be responsible for preparing the feasibility and detailed design reports, drawings, bills of quantities, and cost estimates. The payment for this subproject preparation will be output-based, e.g., the JV will be paid for each subproject design report prepared. JV services for site supervision and other construction and post-construction activities will be compensated on a time basis. It is anticipated that there will be approximately 200 surface water schemes and 100 shallow tube well schemes in the 12 districts.

Table A6.2: Breakdown of the Cost

66 Annex 6

Items Cost ($’000) Specialist Services 1,743 Subprofessional Services 772 Engineering Surveys and Designs 1,092 Travel cost and per diems 757 Support costa 1,009 Computers and office equipment 128 Miscellaneous expenses 189 Total 5,690

a Office rental and utilities, communications, stationary and supplies, and vehicle running costs.

Annex 7 67

DRAFT OUTLINE TERMS OF REFERENCE

A. PROCUREMENT SPECIALIST

1. The Community Irrigation Project (the project) requires a Procurement Specialist with experience of carrying out procurement under the Asian Development Bank (ADB) Procurement Guidelines and Guidelines on the Use of Consultants. The Procurement Specialist should have a university degree with at least 5 years experience in the field of procurement, particularly of consulting services and national competitive bidding of civil works. Using standard ADB documents and working in consultation with ADB, the Procurement Specialist will be required to assist in the preparation of the following: 2. For Consulting Services Recruitment:

i. Assist DOLIDAR Project Coordination Unit (PCU) in short-listing and evaluation of proposals for the Joint Venture package for the project management and implementation support.

ii. Assist DOLIDAR PCU in short-listing and evaluation of candidates for the Project Management Specialist (international).

3. For Procurement of Civil Works:

i. Prepare simple and clear guidelines and associated templates for district

technical offices (DTOs) in using community contracting, shopping, and national competitive bidding (NCB) for civil works on CIP subprojects.

ii. Prepare the Standard Bidding Document for NCB, taking into consideration the experience of other rural infrastructure projects.

iii. Train the DTOs on the correct tender procedures and assure that the correct procedures are followed through supervision visits in DTO offices.

iv. Train the DOLIDAR engineer from the PCU to serve as procurement specialist for the project, who will: a. Review all individual tender documents prepared by DTOs prior to the

publication of the invitations to tender. b. Assist the DTOs in tender opening and tender evaluation. c. Assist the DTOs in preparing the contract documents.

Duty Station: Kathmandu Duration of Assignment: 4 person-months, intermittently, before project start and during the first year of implementation. B. PROJECT MANAGEMENT SPECIALIST Qualifications 4. The Community Irrigation Project (the project) requires a Project Management Specialist (international) with extensive experience in project management for rural development projects with decentralized implementation through a large number of subprojects. Background and experience in irrigation management is preferred. The Project Management Specialist should

68 Annex 7

have an advanced degree in agriculture or engineering with at least 10 years experience in the managing and leading development projects in developing countries. Experience in Nepal is preferred. Main Duties 5. The Project Management Specialist will report to the Project Coordinator and support DOLIDAR’s Project Coordination Unit (PCU) during the start-up phase of the project by establishing, testing, and refining project management systems, including (i) a detailed implementation plan and corresponding consulting staffing schedule; (ii) trimesterly and annual report templates (for submission to ADB) and procedures; (iii) detailed integrated procedures for subproject implementation; (iv) internet-based management information system, (v) a capacity development and training plan for Project staff and consultants, and (vi) financial management procedures and templates. S/he will use the procedures, templates, and handbooks from other similar projects in Nepal, and the outputs of the CIP project preparatory technical assistance, and refine them for the project. Any procedures and templates should be simple and straight-forward for ease in use. All reports and analytical work should adhere to ADB and other international standards.

6. The specialist will guide the Monitoring and Evaluation (M&E) Specialist in developing the project’s M&E system for collection of socio-economic information and monitoring of subproject benefits, and the Senior Irrigation Engineer in preparing the GIS database for infrastructure development.

7. The specialist will guide the preparation of the templates and plans for collection of socio-economic data and production of the annual in-depth project M&E report.

8. The specialist will establish systems and ensure that the project adopts standards of compliance in environmental, social, and resettlement activities, as defined in the project documents and accepted international practices.

9. The specialist will assist the Project Coordinator during the start-up phase of the Project to effectively coordinate and manage the services of the three consulting joint venture teams, and manage the Project overall.

Duty Station: Kathmandu (with trips to project districts) Duration of Assignment: 12 person-months, intermittently, during the first 2 years of project implementation.

Download - Project Administration Manual - Asian Development Bank · Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative

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