Project Number: 49329-006 Loan Number: LXXXXAugust 2019

People’s Republic of Bangladesh: Second City

Region Development Project

Project Administration Manual

ABBREVIATIONS

ADB - Asian Development Bank CRDP - City Region Development Project DDR - due diligence report DMF - design and monitoring framework EARF - environmental assessment and review framework EMP - environmental management plan GAP - gender action plan GRC - grievance redress committee GRM - grievance redress mechanism ICB - international competitive bidding IEE - initial environmental examination KCC - Khulna city corporation LGD - Local Government Division LGED - Local Government Engineering Department MOF - Ministry of Finance NCB - national competitive bidding NRS - national resettlement specialists O&M - operation and maintenance PAM - project administration manual PDS - preparation, design, and supervision PFS - project financial statements PIU - project implementation unit PMCU - project management and coordination unit PPMS project performance monitoring system QBS - quality based selection QCBS - quality- and cost-based selection QPR - quarterly progress report SEMP - site-specific environmental management plan SOE - statement of expenditures SPS - Safeguard Policy Statement SWEC - south-west economic corridor SWM - solid waste management TOR - terms of reference

CONTENTS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 4

A. Project Readiness Activities 4 B. Overall Project Implementation Plan 5

III. PROJECT MANAGEMENT ARRANGEMENTS 7

A. Project Implementation Organizations: Roles and Responsibilities 7 B. Key Persons Involved in Implementation 11 C. Project Organization Structure 12 D. Subproject Selection and Approval Process 13

IV. COSTS AND FINANCING 13

A. Cost Estimates Preparation and Revisions 14 B. Key Assumptions 14 C. Detailed Cost Estimates by Expenditure Category 15 D. Allocation and Withdrawal of Loan Proceeds 16 E. Detailed Cost Estimates by Financier 17 F. Detailed Cost Estimates by Output 18 G. Detailed Cost Estimates by Year 19 H. Contract and Disbursement S-Curve 20 I. Fund Flow Diagram 22

V. FINANCIAL MANAGEMENT 23

A. Financial Management Assessment 23 B. Disbursement 32 C. Accounting 34 D. Auditing and Public Disclosure 34

VI. PROCUREMENT AND CONSULTING SERVICES 35

A. Advance Contracting and Retroactive Financing 35 B. Procurement of Goods, Works, and Consulting Services 35 C. Procurement Plan 36 D. Consultant's Terms of Reference 37

VII. SAFEGUARDS 38

VIII. GENDER AND SOCIAL DIMENSIONS 46

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 49

A. Project Design and Monitoring Framework 49 B. Monitoring 51 C. Evaluation 52 D. Reporting 52 E. Stakeholder Communication Strategy 53

X. ANTICORRUPTION POLICY 54

XI. ACCOUNTABILITY MECHANISM 54

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 54

APPENDIXES 1. Subproject Selection Criteria 2. Project Climate Risk and Financing Calculation 3. Procurement Plan 4. Outline Terms of Reference 5. Grievance Redress Mechanism 6. Outlines and Checklists for Social Safeguard Documents 7. Sample Semi-Annual Environmental Monitoring Report Template 8. Sample Outline for Semi-Annual Social Safeguards Monitoring 9. Outline for Quarterly Progress Report 10. Schedule of Consultations

Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and

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

2. The executing and implementing agencies are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

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

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

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

I. PROJECT DESCRIPTION 1. The Second City Region Development Project (the project) will support development in the city regions of Dhaka and Khulna by building on infrastructure and capacity building initiatives implemented during the first City Region Development Project (CRDP) funded by the Asian Development Bank (ADB). 1 The project will finance crucial infrastructure in urban and peri-urban areas needed to stimulate growth and improve livability in Dhaka and Khulna, two densely populated and rapidly growing city regions in Bangladesh. The project will also continue strengthening project development capacity, sustainable service delivery, and community awareness.2 2. Urbanization. Bangladesh is urbanizing rapidly, particular in large cities such as Dhaka and Khulna, exacerbating challenges in a country that has one of the highest population densities in the world. In 2018, about 61 million people, or 37% of the total population of 164 million, lived in urban areas. Since 2015 the average annual urban population growth is 3.17%, faster than the annual national population growth of 1.37%. The country’s urban population is expected to reach 74 million by 2025, or 42% of the total population, with Dhaka becoming the world’s fourth largest urban agglomerations.3 Urbanization raises economic productivity through agglomeration advantages, but places severe strains on the environment and urban infrastructure and services. More needs to be done urgently, especially in the large city regions, for sustaining growth while safeguarding environmental standards and making cities more livable in line with ADB’s Strategy 2030.4 3. City region development. A “city region” is an agglomeration of a large city (city corporation), surrounding pourashavas (secondary towns) and adjacent peri-urban areas (urban centers in upazilas [subdistricts]) with close economic and social links.5 City region development can improve livability by decongestion of a core city and promotion of economic growth through planning, institutional development, and infrastructure investments that transcend restrictive administrative jurisdictions. Therefore, closer coordination among fragmented institutions in city regions and increased mobility within urban agglomerations are critical. Investments to improve city regions’ resilience to climate and disaster triggered by earthquakes, floods, droughts, and cyclones are also essential. The city region approach complements ADB’s other urban development initiatives in Bangladesh, including support for (i) pourashavas through urban governance and infrastructure improvement projects, (ii) resilience to climate and natural hazards in vulnerable coastal towns, and (iii) large city-specific water supply and sanitation projects in Dhaka and Khulna.6

1 ADB. Bangladesh: City Region Development Project. 2 Project preparation was supported by (i) a project preparatory technical assistance financed on a grant basis by

ADB’s Technical Assistance Special Fund (TASF-V) and the Netherlands Trust Fund under the ADB administered Water Financing Partnership Facility; and (ii) a project design advance loan of $5 million for preparation, design, and supervision consultancy services; both approved on 15 December 2016. The Cities Development Initiative for Asia provided pre-feasibility support for Khulna and Gazipur (2015–2017).

3 United Nations. 2018. World Statistics Pocketbook. New York; and United Nations. World Urbanization Prospects 2018 Database (accessed 14 June 2019).

4 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila.

5 K. Choe and A. Laquian. 2008. City Cluster Development: Toward an Urban-Led Development Strategy for Asia. Manila: ADB.

6 ADB supported urban projects in Bangladesh include (i) ADB. Bangladesh: Urban Public and Environmental Health Sector Development Program; (ii) ADB. Bangladesh: Khulna Water Supply Project; (iii) ADB. Bangladesh: Greater Dhaka Sustainable Urban Transport Project; (iv) ADB. Bangladesh: Dhaka Environmentally Sustainable Water Supply Project; (v) ADB. Bangladesh: Dhaka Water Supply Network Improvement; (vi) ADB. Bangladesh: Coastal

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4. Past support and lessons. The first project improved Dhaka and Khulna city regions by (i) upgrading roads, bridges, and bus terminals to reduce travel time and enhancing road safety; (ii) improving storm drains to reduce flooding; (iii) upgrading the water supply; (iv) improving sanitation access through public toilets; and (v) improving solid waste management. The first project also financed the preparation of the Dhaka Structure Plan, 2016–2035,7 a framework for infrastructure development and interagency coordination, and supported project municipalities in improving governance and service delivery.8 Overall, the first project facilitated logistics, easier access to employment opportunities and social service facilities, and the reduction of water logging and incidences of waterborne diseases.9 Notwithstanding progress made under earlier support from ADB and other development partners support, key implementation issues under the first project that need attention, include interagency coordination for decision making, a significant infrastructure gap, start-up delays in detailed design preparation, and timely implementation of project activities of diverse nature. The project builds on lessons and past gains in community awareness, institutional capacity, and coordination among municipalities,10 while continuing to develop much needed infrastructure throughout the Dhaka and Khulna city regions. 5. Value addition. Investments will be in multiple municipalities based on priorities defined in the regional development plans of the two city regions. For the Dhaka city region, investments are for the first time being selected based on the Dhaka Structure Plan to improve connectivity and linkage of peri-urban areas within the city region. For the Khulna city region, the preparation of comprehensive drainage master plans and related critical infrastructure investments, as well as a detailed solid waste management concept for Khulna city corporation (KCC) will improve climate and disaster resilience and overall livability.11 To reduce start-up delays in additional future projects, support for preparation of detailed engineering designs for investments involving the latest technologies and smart applications, including integrated real-time data platforms and sensors, advanced building materials, and geotechnical engineering, will be provided. By improving institutional capacity and community awareness, the project will strengthen municipal governance, institutional coordination, and sustainable service delivery. 6. Sector strategies and policies. The project is aligned with the objectives and priorities of the urban sector strategy defined in the government’s 7th Five-Year Plan;12 the Local Government (Pourashava) Act, 2009; and the Coastal Development Strategy, 2006. The project is consistent with ADB’s country partnership strategy, 2016–2020 for Bangladesh13 and is aligned with ADB’s Strategy 2030 operational priorities, including (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) tackling climate change, building climate change resilience, and enhancing environmental sustainability; (iv) making cities more livable; and (v) strengthening governance and institutional capacity (footnote 4). The project

Towns Environmental Infrastructure Project; and (vii) ADB. Bangladesh: Third Urban Governance and Infrastructure Improvement (Sector) Project—Additional Financing.

7 Government of Bangladesh, Rajdhani Unnayan Kartripakkha (Capital Development Authority). 2015. Dhaka Structure Plan 2016-2035.

8 Capacity development covered (i) citizen awareness and participation, (ii) urban planning, (iii) gender equality and social inclusion, (iv) local resource mobilization, (v) financial management and accountability, (vi) administrative transparency, and (vii) keeping essential services functional.

9 Government of Bangladesh, Ministry of Planning, Independent Monitoring and Evaluation Department. 2016. In-Depth Monitoring of “City Region Development Project. Dhaka.

10 ADB. 2012. Strengthening Regional Planning and Governance in Bangladesh. Consultant’s report. Manila. 11 These will comprise a multi-hazard approach to reduce flood vulnerability, pollution of surface and ground water, and

nuisance and health risks; and to improve sanitation practices and aesthetics. 12 Government of Bangladesh, Planning Commission. 2015. 7th Five Year Plan, FY2016–FY2020: Accelerating

Growth, Empowering Citizens. Dhaka . 13 ADB. 2016. Country Partnership Strategy: Bangladesh, 2016–2020. Manila.

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is also aligned with Sustainable Development Goal 11 on sustainable cities and communities and Sustainable Development Goals 13 on climate action. 7. Sector lending modality. Sector lending modality is proposed, and the project meets the sector lending policy as (i) it has a large number of subprojects, (ii) the government has sector development strategies and policies to meet the priority development needs of the sector and has the requisite institutional capacity to implement the project, and (iii) the policies applicable to the sector are appropriate as they address the current sector needs. All subprojects will be selected in accordance with the selection criteria in Appendix 1. Due diligence has been conducted on candidate subprojects. 8. The project is aligned with the following impact: growth potential enhanced and living environment in urban and peri-urban areas improved (footnote 12). The project will have the following outcome: mobility, flood resilience, and solid waste management in project areas of Dhaka and Khulna city regions improved. 9. Output 1: Urban infrastructure in the project areas in the Dhaka and Khulna city regions improved and made climate-resilient. The project will support (i) the rehabilitation of 300 kilometers (km) of urban roads in the Dhaka city region in line with the recommendations of the Dhaka Structure Plan; (ii) the rehabilitation of 120 km of drains in the Dhaka city region; (iii) the rehabilitation of 30 km of drains in the Khulna city region; and (iv) the construction and operation of one composting plant including transfer stations, biogas production facility and sanitary facilities in KCC. 10. Output 2: Institutional capacity and community awareness strengthened. The project will support the (i) identification of additional priority urban investments of at least $100 million and the preparation of detailed engineering designs; (ii) preparation or update of drainage master plans for 14 project pourashavas; (iii) preparation and endorsement of operation and maintenance (O&M) plans including annual budget allocation for all subprojects by all project pourashavas and city corporations; (iv) preparation and submission of an inclusive integrated solid waste management plan for KCC; (v) capacity development of 50 staff (including 30% women) of project pourashavas and city corporations to increase knowledge on integrated urban planning, sustainable service delivery, and O&M of urban infrastructure; and (vi) conduct of awareness campaigns on reducing, reusing, and recycling solid waste for at least 200,000 people (at least 50% women) in KCC.

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II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 1: Project Readiness

Indicative Activities

2017 2018 2019

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

Advance contracting actions

LGED and

PMCU

1. PDS Consultants mobilized

LGED and PMCU

2.

Issue civil works bid documents in the amount of at least 30% of ADB loan amount

LGED and PMCU

3.

Award civil work contracts of at least 30% of ADB loan amount

LGED and PMCU

4. Publish EOI for ICCD consultants

LGED and PMCU

5. Award contract for ICCD consultants

LGED and PMCU

Establish project implementation arrangements

LGED and PMCU

ADB Board approval ADB

Loan signing ADB and ERD

Government legal opinion provided ERD

Loan effectiveness

ADB and

ERD ADB = Asian Development Bank; EOI = expression of interest; ERD = Economic Relations Division; ICCD = institutional and community capacity development; LGED = Local Government Engineering Department; PDS = preparation, design, and supervision; PMCU = project management and coordination unit; Q = quarter. Source: ADB estimates.

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B. Overall Project Implementation Plan

Table 2: Project Implementation Plan 2018 2019 2020 2021 2022 2023 2024

Activity Q1 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 Q3 Q4

A. Design and Monitoring Framework

Output 1: Urban infrastructure in the project areas in the Dhaka and Khulna city regions improved and made climate-resilient

Urban Roads

1.1 Award civil works contracts for 13 urban roads subprojects in the Dhaka city region (Q2 2019)

1.2 Award all civil work contracts for drainage subprojects in the Dhaka and Khulna city regions (Q3 2020)

1.3 Award civil works contracts for all remaining urban roads projects in the Dhaka city region (Q2 2021)

1.4 Award civil work contract for composting plant and associated facilities in KCC (Q4 2021)

1.5 Complete all physical works (Q4 2023)

Output 2: Institutional capacity and community awareness strengthened

2.1 Launch integrated solid waste management awareness campaign in KCC (Q4 2019)

2.2 Prepare or update drainage master plans (Q1 2020)

2.3 Select additional priority urban investments for project preparation (Q4 2021)

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2018 2019 2020 2021 2022 2023 2024

Activity Q1 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 Q3 Q4

2.4 Prepare detailed feasibility study and engineering design for integrated solid waste management facilities in KCC (Q2 2021)

2.5 Prepare O&M plans for all subprojects (Q4 2021)

2.6 Prepare detailed engineering designs for selected additional priority investments (Q1 2023)

2.7 Deliver and evaluate training programs and awareness-raising campaigns (Q1 2024)

B. Management Activities

Recruit all consultants under the project, ensure adequate staff and diverse workforce in the PMCU and PIUs, and implement a project performance management system

Implement gender action plan

KCC = Khulna city corporation, O&M = operation and maintenance, PIU = project implementation unit; PMCU = project management and coordination unit, Q = quarter. Source: Asian Development Bank estimates.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 3: Project Implementation Roles and Responsibilities Project Implementation Organizations Management Roles and Responsibilities

Executing agency LGED

(i) Oversees overall project implementation and administration; (ii) coordinates with ADB, stakeholders, and other agencies at central

level for smooth project implementation; (iii) approves subproject proposals against subproject selection criteria; (iv) administers loan disbursements; (v) ensures compliance with project covenants, including safeguard

measures; and (vi) establishes and strengthens PMCU and ensures its adequate

staffing.

Implementing agencies LGED district offices,a city corporations, and pourashavas

(i) Implement subprojects, including procurement and supervision of works;

(ii) ensure compliance with covenants, including safeguard measures; and

(iii) participate in capacity development programs conducted under the project.

PMCU (i) Project Director (1) (ii) Deputy Project Director (2), one

being the gender focal and one being the social development focal

(iii) Senior Assistant Engineer (2) (iv) Project Monitoring and

Evaluation Officer (1) (v) Urban Planner (1) (vi) Social Safeguard Officer (1) (vii) Environment Safeguard Officer

(1) (viii) Sub-Assistant Engineer (2) (ix) Accounts Officer (1) (x) Date Entry Operator (2) (xi) Support staff (7)

Project management and administration (i) Responsible for overall project management, implementation and

monitoring; (ii) responsible for signing of Memorandum of Understanding with each

implementing agency, setting out the roles and responsibilities of the all parties;

(iii) liaise with implementing agencies and PIUs; (iv) liaise with ADB, maintains project documents, and submits timely

reports to ADB by consolidating inputs from PIUs, and submits quarterly project progress reports to ADB in agreed format;

(v) monitors and ensures the compliance of covenants; (vi) undertakes budgeting and financial planning and management; (vii) opens and maintains advance account in US$ and a project account

(sub-advance account) in local currency for ADB loan; (viii) assists each PIU in opening subproject accounts; (ix) ensures auditing of loan proceeds and maintenance of all accounts; (x) submits external auditor report to ADB; (xi) consolidates accounts and submits withdrawal applications to ADB

for reimbursement; (xii) ensures adequate counterpart funds; (xiii) establishes, maintains and updates the project performance

monitoring system; (xiv) prepares project completion report; and (xv) assists in knowledge management and sharing, and disclosure of

information generated by the project. Procurement of Goods, Works, and Services (i) Procures goods for PMCU and multiple PIUs; (ii) assists PIUs in preparation of bidding documents; (iii) provides PIUs with evaluation report templates; (iv) reviews evaluation reports and process for further approval; (v) sends draft bidding documents and evaluation reports to ADB for

review and approval (if prior review is required);

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Project Implementation Organizations Management Roles and Responsibilities

(vi) supports PIUs in advertisement of all procurement packages; (vii) recruits consulting services and manages their contracts; (viii) prepares updated procurement plan (18-month timeframe) and

submits to ADB for review and approval; (ix) provides support and guidance to PIUs during procurement and

contract management process; and (x) submits annual contract award and disbursement projections by

December of each year to ADB. Technical Oversight and Support (i) Provides technical support and overall guidance to PIUs; (ii) assists project steering committee in approval of subproject

proposals against subproject selection criteria; (iii) conducts reviews and approves detailed engineering designs and

cost estimates; (iv) approves any variation during execution of work contracts; (v) carries out periodic quality control of civil work contracts; and (vi) supports and monitors PIUs in implementing subprojects. Safeguards Compliance (details in Section VII) (i) Overall responsibility for safeguards by monitoring and ensuring

compliance with ADB’s Safeguards Policy Statement (2009), and government requirements;

(ii) prepares and submits initial environmental examination reports and resettlement plans;

(iii) coordinates for obtaining the right of way clearances; (iv) ensures integration of environmental and social safeguards,

including land acquisition and gender aspects, as required in all documents, particularly in bidding documents and contracts;

(v) prepares and submits to ADB semi-annual environmental and social safeguards monitoring reports;

(vi) ensures grievance redressal mechanisms are established and functioning in all PIUs;

(vii) addresses grievances related to the project; and (viii) provides capacity support to PIUs on safeguards issues.

Institutional and Community Capacity Development (i) Approves and coordinates training and capacity building program; (ii) oversees public relations and knowledge management; and (iii) oversees implementation of GAP.

PIUs In LGED district offices, city corporations, and pourashavas

(i) Mayor, PIU Head (for city corporations and pourashavas)

(ii) CEO or Secretary (for city corporations and pourashavas)

(iii) Chief Engineer (for city corporations) or Executive or Assistant Engineer (1)

(iv) Social Safeguards and Gender Focal (1)

Project Management and Administration (i) Manages day-to-day project implementation; (ii) liaises with PMCU on project implementation; (iii) opens and maintains one subproject account for ADB loan and one

subproject account for government funds each (LGED district offices will only open and maintain a subproject account for ADB loan);

(iv) makes payments to contractors; (v) submits contractor invoices and supporting documents for payment

by PMCU; (vi) submits quarterly reports to PMCU in agreed format and as required

by PMCU; and (vii) maintains subproject and contract-level accounting.

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Project Implementation Organizations Management Roles and Responsibilities

(v) Environment Safeguards Focal (1)

(vi) Sub-Assistant Engineer (at least 1)

(vii) Work Assistant (1)

(viii) Accounts Assistant (1)

(ix) Date Entry Operator (1)

Procurement of Goods and Works (i) Prepare bidding documents for works with consultant support and

submit to PMCU for review and approval; (ii) advertise NCB packages using e-procurement; (iii) establish bid opening and evaluation committees for civil works

contracts; (iv) evaluate bids and submit evaluation reports to PMCU; and (v) sign and manage all NCB civil works contracts (with support from

PMCU). Technical Support (i) Supervise contractors and ensure quality of works; (ii) work closely with consultants; (iii) facilitate collection of data for detailed engineering designs; and (iv) prepare progress report on each contract and include in quarterly

reports to PMCU. Safeguards Compliance (details in Section VII) (i) Implement and monitor safeguards compliance (Resettlement

Plans, EMPs) including consultations and disclosure; (ii) prepare Resettlement Plans or DDRs, IEEs, and EMPs in

accordance with Resettlement Framework and EARF and government regulations and submit to PMCU for approval;

(iii) obtain right of way clearances; and (iv) prepare quarterly safeguard monitoring reports and submit to

PMCU. Institutional and Community Capacity Development (i) Propose and participate in training and capacity building programs; (ii) ensure public outreach; and (iii) implement GAP.

Urban Management Support Unit, LGED

(i) Provides capacity building support and trainings for implementing agencies and PIU staff; and

(ii) ensures coordination among different projects related to capacity building activities.

Project Implementation Committee Chair: Chief Engineer, LGED Members: From LGED:

(i) Chief Engineer

(ii) Concerned Executive Engineer

(iii) Project Director (Second CRDP) Representatives of the:

(i) Planning Wing, LGD

(ii) Development Wing, LGD

(iii) NEC-ECNEC and Coordination Wing of the Planning Division

(iv) Concerned Wing/Sector Division of the Planning Commission

(v) Programming Division of Planning Commission

(vi) Concerned Sector of IMED

(vii) Finance Division

(i) Meets as and when required; and (ii) Provides guidance to PMCU and PIUs for smooth project

implementation and resolves implementation issues.

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Project Implementation Organizations Management Roles and Responsibilities

(viii) Economic Relations Division

(ix) concerned City Corporation/Pourashava

Project Steering Committee Chair: Secretary, LGD under MLGRDC Members: From LGD: (i) Joint Chief (Planning Wing) (ii) Joint Secretary (Development) (iii) Deputy Chief (iv) Senior Assistant Chief or Assistant

Chief (Planning) From LGED: (i) Chief Engineer (ii) Project Director (Second CRDP) (iii) Representative from Planning Unit Representatives of the: (i) NEC-ECNEC and Coordination

Wing of the Planning Division (ii) concerned Wing/Sector -Division

of the Planning Commission (iii) Programming Division of Planning

Commission (iv) Concerned Sector of IMED (v) Finance Division (vi) Economic Relations Division

(i) Meets at least once a year or more frequently if necessary; (ii) provides strategic guidance and policy level support to the project; (iii) ensures smooth project implementation and resolves critical

implementation issues; (iv) ensures compliance with project covenants as agreed with ADB;

and (v) facilitates inter-agency and inter-ministerial coordination.

ADB (i) Conducts field review, midterm review, and project completion review missions to assess project implementation progress and compliance of project covenants;

(ii) reviews PMCU submissions for procurement of goods, civil works and services, provides comments and no objection on such; and

(iii) checks statement of expenditure and disburses the loan funds as per Loan Agreement.

ADB = Asian Development Bank, CEO = chief executive officer. CRDP = City Region Development Project, DDR = due diligence report, EARF = environmental assessment review framework, EMP = environmental management plan, GAP = gender action plan, IEE = initial environmental examination, IMED = Implementation, Monitoring, and Evaluation Division, LGD = Local Government Division, LGED = Local Government Engineering Department, MLGRDC = Ministry of Local Government, Rural Development and Cooperatives, NCB = national competitive bidding, NEC-ECNEC = National Economic Council–Executive Committee of National Economic Council, PIU = project implementing unit, PMCU = project management and coordination unit. a LGED District Offices will be the implementing agencies for subprojects in non-municipal urban centers. Sources: ADB and LGED.

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B. Key Persons Involved in Implementation

Executing Agency LGED

Md. Hamidul Hoque Project Director Second City Region Development Project Telephone: +88 017 11404652 Email address: pd.crdp2@gmail.com Office Address: LGED Bhaban (Level 12) Agargaon Shere-Bangla Nagar, Dhaka 1207, Bangladesh

Asian Development Bank Urban Development and Water Division South Asia Department

Norio Saito Director Telephone: +63 2 632 4444 Facsimile: +63 2 636 6256 Email address: nsaito@adb.org

Mission Leader Alexandra Vogl Senior Urban Development Specialist, SAUW Telephone: +63 2 632 4582 Email address: avogl@adb.org Office Address: Asian Development Bank, 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines

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C. Project Organization Structure

11. The following chart shows the organizational structure of the project implementation.

Figure 1: Project Organizational Structure

LGD = Local Government Division, LGED = Local Government Engineering Department. Source: Asian Development Bank, LGED.

Ministry of Local Government, Rural Development and Cooperatives, Local Government Division

Local Government Engineering Department

Urban Management Support Unit

Consultants

• Preparation, design, and supervision consultants

• Institutional and community capacity development consultants

• Individual consultants

Project Steering Committee (Chair: Secretary, LGD)

Project Management and Coordination Unit

Project Implementation Unit in City Corporations

Project Implementation Unit in Pourashavas

Project Implementation Unit in LGED District Office

(for urban centers in upazilas)

Project Implementation Committee (Chair: Chief Engineer)

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D. Subproject Selection and Approval Process

12. The Local Government Engineering Department (LGED) will review proposals from city corporations, pourashavas, and urban centers within the geographical coverage area regarding compliance with the selection criteria and approve priority subprojects for feasibility study preparation. The LGED shall ensure, that there is no overlap of activities between subprojects and projects funded by other development partners. 13. Selection of additional subproject as well as replacement of any subproject will be submitted by the project management and coordination unit (PMCU) to ADB for no objection before appropriation of funds under the project.

IV. COSTS AND FINANCING

14. The project is estimated to cost $223 million. The government has requested (i) a regular loan of €66.83 million ($75 million);14 and (ii) a concessional loan of $75 million, both from ADB’s ordinary capital resources to help finance the project. The regular loan will have a 25-year term, including a grace period of 5 years; an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility; a commitment charge of 0.15% per year; and such other terms and conditions set forth in the loan agreement. Based on the straight-line method, the average maturity is 15.25 years, and the maturity premium payable to ADB is 0.10% per year.15 The concessional loan will have a 25-year term, including a grace period of 5 years; an interest rate of 2.00% per year during the grace period and thereafter, and such other terms and conditions set forth in the loan agreement. The summary cost estimates for the project is in Table 4.

Table 4: Summary Cost Estimates ($ million)

Item Amounta

A. Base Costb 1. Urban infrastructure in the project areas in the Dhaka and Khulna city regions

improved and made climate-resilient 163.64

2. Institutional capacity and community capacities strengthened 24.55 Subtotal (A) 188.19 B. Contingenciesc 21.48 C. Financial Charges During Implementationd 13.33

Total (A+B+C) 223.00 a Includes taxes and duties of $26.97 million to be financed from government resources by cash contribution. Such

amount does not represent an excessive share of the project cost b In mid-2019 prices based on a $1.00 = Tk83.80 exchange rate. c Physical contingencies are computed at 6.0% for civil works, equipment, and goods. Price contingencies are

computed at 1.5%-1.6% on foreign exchange costs and 5.5%-5.8% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

d Includes interest and commitment charges. Interest during construction for a regular ordinary capital resources (OCR) loan has been computed at the 5-year fixed swap London interbank offered rate (LIBOR) plus a spread of 0.50% and a maturity premium of 0.10%. Commitment charges for a regular OCR loan are 0.15% per year to be charged on the undisbursed loan amount. Interest during construction for a concessional OCR loan has been computed at 2.00% per year.

Source: Asian Development Bank estimates.

14 €0.891027 = $1.00 as of 10 July 2019. 15 The maturity-based premium is based on loan terms and the government’s choice of repayment option and dates.

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15. The ADB loans will finance the expenditures in relation to civil works, equipment and goods, consulting services and capacity building, incremental recurrent costs, and contingencies. The government will provide $73 million equivalent to cover (i) taxes and duties; (ii) resettlement and land acquisition; (iii) financial charges during implementation; (iv) part of civil works; (v) part of incremental recurrent costs;16 and (vi) part of contingencies. The government will provide the loan and grant proceeds and counterpart funds to the executing and implementing agencies as grant. The summary financing plan for the project is in Table 5.

Table 5: Summary Financing Plan

Amount ($ million)

Share of Total (%) Source

Asian Development Bank Ordinary capital resources (regular loan) 75.00 33.6 Ordinary capital resources (concessional loan) 75.00 33.6

Government of Bangladesh 73.00 32.8

Total 223.00 100.0 Source: Asian Development Bank estimates. 16. Climate change adaptation is estimated to cost $48.2 million, of which ADB will finance 76.8%.17 Project climate risk and financing calculation is in Appendix 2. A. Cost Estimates Preparation and Revisions

17. The cost estimates have been prepared based on the detailed feasibility study prepared by LGED in consultation with the ADB project preparatory technical assistance team. The cost estimate model was prepared using Microsoft Excel and is available. The cost estimates will be updated during project implementation. B. Key Assumptions

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

(i) Exchange rate: Tk83.8 = $1.0 (as of April 2019). (ii) Price contingencies based on expected cumulative inflation over the

implementation period are as follows:

Table 6: Escalation Rates for Price Contingency Calculation Item 2019 2020 2021 2022 2023 2024 Annual average

Foreign rate of price inflation 1.5% 3.0% 4.6% 6.2% 7.8% 9.4% 1.6%

Domestic rate of price inflation 5.5% 11.3% 17.1% 22.9% 28.7% 34.5% 5.8% Source: Asian Development Bank estimates.

(iii) In-kind contributions cannot be easily measured and have not been quantified.

16 This includes regular and contractual staff salary, minor costs associated with environmental management plan,

resettlement plan, and gender action plan implementation, travel, office equipment, office and vehicles’ rental, communication charge, transportation and insurance costs, among others.

17 The project has potential to contribute to climate change mitigation as it includes the preparation of a detailed solid waste management feasibility study and construction of a composting plant. Corresponding climate mitigation finance contribution will be determined during project implementation.

15

C. Detailed Cost Estimates by Expenditure Category

Table 7: Detailed Cost Estimates by Expenditure Category

Item

Tk million $ million % of Total Base Cost

Foreign Exchange

Local Currency

Total Cost

Foreign Exchange

Local Currency

Total Cost

A. Investment Costs

1. Civil works 1,381.76 10,633.55 12,015.31 16.50 126.97 143.47 76.2 (a) Dhaka city region roads (GCC, Savar, Rupganj) 833.10 6,411.27 7,244.38 9.95 76.55 86.50 46.0 (b) Dhaka city region roads (Araihazar) 199.37 1,534.26 1,733.63 2.38 18.32 20.70 11.0 (c) Khulna solid waste management 73.80 567.95 641.75 0.88 6.78 7.66 4.1 (d) Drainage improvement in pourashavas 273.59 2,105.44 2,379.02 3.27 25.14 28.41 15.1 (e) Tree plantation 0.00 16.54 16.54 0.00 0.20 0.20 0.1 2. Equipment & goods 97.99 754.09 852.07 1.17 9.00 10.17 5.4 3. Resettlement & Land acquisition 0.00 837.50 837.50 0.00 10.00 10.00 5.3 4. Consulting services 177.99 1,369.71 1,547.70 2.13 16.35 18.48 9.8 (a) PDS-1 consultant (firm under PDA) 56.54 435.08 491.61 0.68 5.19 5.87 3.1 (b) PDS-2 consultant (firm) 65.97 507.71 573.69 0.79 6.06 6.85 3.6 (c) ICCD consultant (firm) 28.80 221.62 250.41 0.34 2.65 2.99 1.6 (d) Individual consultants 26.68 205.31 231.99 0.32 2.45 2.77 1.5

Subtotal (A) 3,215.58 12,037.01 15,252.59 38.39 143.73 182.12 96.8 B. Recurrent Costs

1. Salaries 0.00 291.73 291.73 0.00 3.48 3.48 1.9 2. Incremental administrative costs 0.00 216.75 216.75 0.00 2.59 2.59 1.4

Subtotal (B) 0.00 508.48 508.48 0.00 6.07 6.07 3.2 Total Base Cost 3,215.58 12,545.48 15,761.06 38.39 149.80 188.19 100.0 C. Contingencies

1. Physical contingencies 162.76 609.28 772.04 1.94 7.27 9.22 4.9 2. Price contingencies 84.59 942.19 1,026.78 1.01 11.25 12.26 6.5

Subtotal (C) 247.35 1,551.47 1,798.82 2.95 18.52 21.48 11.4 D. Financing Charges

1. Interest during implementation 1,091.88 0.00 1,091.88 13.04 0.00 13.04 6.9 2. Commitment charges 24.49 0.00 24.49 0.29 0.00 0.29 0.2

Subtotal (D) 1,116.37 0.00 1,116.37 13.33 0.00 13.33 7.1 Total Project Cost (A+B+C+D) 4,579.30 14,096.95 18,676.25 54.68 168.32 223.00 118.5

GCC = Gazipur city corporation, ICCD = institutional and community capacity development, PDA = project design advance, PDS = preparation, design, and supervision, Tk = Bangladesh taka. Notes: 1. Numbers may not sum precisely because of rounding.

2. The costs of the actual audits of the program are minor and will be borne by the government. 3. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A4 and B2.

ADB will not finance land acquisition cost. Source: Asian Development Bank estimates.

16

D. Allocation and Withdrawal of Loan Proceeds

Table 8: Allocation and Withdrawal of Loan Proceeds for Ordinary Capital Resources Regular Loan

No Item

Total Amount Allocated for ADB

Financing (€) Basis for Withdrawal

from the Loan Account

1. Civil works (Dhaka city region roads -

GCC, Savar, Rupganj)

59,394,000 77.1% of total expenditure

claimed

2. Unallocated 7,433,000

TOTAL 66,827,000

ADB = Asian Development Bank, GCC = Gazipur city corporation. Source: ADB estimates.

Table 9: Allocation and Withdrawal of Loan Proceeds for Ordinary Capital Resources

Concessional Loan

No. Item

Total Amount Allocated for ADB

Financing ($) Basis for Withdrawal from

the Loan Account 1. Civil works (Dhaka city region roads -

Araihazar, Khulna solid waste management, drainage improvement in pourashavas)

43,747,000 77.1% of total expenditure

claimed

2. Equipment & Goods 8,139,000 80.0% of total expenditure claimed

3. Consulting services (PDS-1 consultant - firm under PDA)

4,400,000 75.0% of total expenditure

claimed

4. Consulting services (PDS-2 consultant – firm, ICCD consultant – firm, individual consultants)

8,827,000 70.0% of total expenditure

claimed

5. Recurrent costs (Incremental administrative costs)

2,277,000 88.0% of total expenditure

claimed

6. Unallocated 7,610,000

TOTAL 75,000,000

ADB = Asian Development Bank, ICCD = institutional and community capacity development, PDA = project design advance, PDS = preparation, design, and supervision. Source: ADB estimates.

17

E. Detailed Cost Estimates by Financier

Table 10: Detailed Cost Estimates by Financier ($ million)

Item

ADB Regular OCR

ADB Concessional OCR

Government Total Costs

$ € % $ % Tax Non-Tax Total %

$ A. Investment Costs

1. Civil works 66.66 59.39 46.5 43.75 30.5 19.37 13.69 33.06 23.0 143.47 (a) Dhaka city region roads (GCC, Savar, Rupganj) 66.66 59.39 77.1 - 0.0 11.68 8.16 19.84 22.9 86.50 (b) Dhaka city region roads (Araihazar) - - 0.0 15.95 77.1 2.79 1.95 4.75 22.9 20.70 (c) Khulna solid waste management - - 0.0 5.90 77.1 1.03 0.72 1.76 22.9 7.66 (d) Drainage improvement in pourashavas - - 0.0 21.89 77.1 3.83 2.68 6.52 22.9 28.41 (e) Tree plantation - - 0.0 - 0.0 0.03 0.17 0.20 100.0 0.20 2. Equipment & Goods - - 0.0 8.14 80.0 2.03 - 2.03 20.0 10.17 3. Resettlement & Land Acquisition - - 0.0 - 0.0 - 10.00 10.00 100.0 10.00 4. Consulting services - - 0.0 13.23 71.6 5.25 - 5.25 28.4 18.48 (a) PDS-1 consultant (firm under PDA) - - 0.0 4.40 75.0 1.47 - 1.47 25.0 5.87 (b) PDS-2 consultant (firm) - - 0.0 4.80 70.0 2.06 - 2.06 30.0 6.85 (c) ICCD consultant (firm) - - 0.0 2.09 70.0 0.90 - 0.90 30.0 2.99 (d) Individual consultants - - 0.0 1.94 70.0 0.83 - 0.83 30.0 2.77

Subtotal (A) 66.66 59.39 36.6 65.11 35.8 26.66 23.69 50.35 27.6 182.12 B. Recurrent Costs

1. Salaries - - 0.0 - 0.0 - 3.48 3.48 100.0 3.48 2. Incremental administrative costs - - 0.0 2.28 88.0 0.31 - 0.31 12.0 2.59

Subtotal (B) - - 0.0 2.28 37.5 0.31 3.48 3.79 62.5 6.07 Total Base Cost 66.66 59.39 35.4 67.39 35.8 26.97 27.18 54.14 28.8 188.19 C. Contingencies

1. Physical contingencies 4.00 3.56 43.4 3.11 33.8 - 2.11 2.11 22.8 9.22 2. Price contingencies 4.34 3.87 35.4 4.50 36.7 - 3.42 3.42 27.9 12.26

Subtotal (C) 8.34 7.43 38.8 7.61 35.4 - 5.53 5.53 25.7 21.48 D. Financing Charges

1. Interest during implementation - - 0.0 - 0.0 - 13.04 13.04 100.0 13.04 2. Commitment charges - - 0.0 - 0.0 - 0.29 0.29 100.0 0.29

Subtotal (D) - - 0.0 - 0.0 - 13.33 13.33 100.0 13.33 Total Project Cost (A+B+C+D) 75.00 66.83 33.6 75.00 33.6 26.97 46.03 73.00 32.7 223.00

ADB = Asian Development Bank, GCC = Gazipur city corporation, ICCD = institutional and community capacity development, OCR = ordinary capital resources, PDA = project design advance, PDS = preparation, design, and supervision. Notes: 1. Numbers may not sum precisely because of rounding. 2. The costs of the actual audits of the program are minor and will be borne by the government.

3. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A4 and B2. ADB will not finance land acquisition cost.

Source: ADB estimates.

18

F. Detailed Cost Estimates by Output

Table 11: Detailed Cost Estimates by Output

Item

Total Costs

Output 1 (Urban Infrastructure

Improved)

Output 2 (Institutional capacity

strengthened) $ million $ million % $ million %

A. Investment Costs 1. Civil works 143.47 143.47 100.0 - 0.0 (a) Dhaka city region roads (GCC, Savar, Rupganj) 86.50 86.50 100.0 - 0.0 (b) Dhaka city region roads (Araihazar) 20.70 20.70 100.0 - 0.0 (c) Khulna solid waste management 7.66 7.66 100.0 - 0.0 (d) Drainage improvement in pourashavas 28.41 28.41 100.0 - 0.0 (e) Tree plantation 0.20 0.20 100.0 - 0.0

2. Equipment & Goods 10.17 10.17 100.0 - 0.0 3. Resettlement & Land Acquisition 10.00 10.00 100.0 - 0.0 4. Consulting services 18.48 - 0.0 18.48 100.0 (a) PDS-1 consultant (firm under PDA) 5.87 - 0.0 5.87 100.0 (b) PDS-2 consultant (firm) 6.85 - 0.0 6.85 100.0 (c) ICCD consultant (firm) 2.99 - 0.0 2.99 100.0 (d) Individual consultants 2.77 - 0.0 2.77 100.0

Subtotal (A) 182.12 163.64 89.9 18.48 10.1 B. Recurrent Costs

1. Salaries 3.48 - 0.0 3.48 100.0 2. Incremental administrative costs 2.59 - 0.0 2.59 100.0

Subtotal (B) 6.07 - 0.0 6.07 100.0 Total Base Cost 188.19 163.64 87.0 24.55 13.0 C. Contingencies

1. Physical contingencies 9.22 9.22 100.0 - 0.0 2. Price contingencies 12.26 10.66 87.0 1.60 13.0

Subtotal (C) 21.48 19.88 92.6 1.60 7.4 D. Financial Charges During Implementation

1. Interest during implementation 13.04 11.34 87.0 1.70 13.0 2. Commitment charges 0.29 0.25 87.0 0.04 13.0

Subtotal (D) 13.33 11.59 87.0 1.74 13.0 Total Project Cost (A+B+C+D) 223.00 195.11 87.5 27.89 12.5

GCC = Gazipur city corporation, ICCD = institutional and community capacity development, PDA = project design advance, PDS = preparation, design, and supervision. Notes: 1. Numbers may not sum precisely because of rounding. 2. The costs of the actual audits of the program are minor and will be borne by the government.

3. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A4 and B2. ADB will not finance land acquisition cost.

Source: Asian Development Bank estimates.

19

G. Detailed Cost Estimates by Year

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

Items Total Costs 2019 2020 2021 2022 2023 2024

A. Investment Costs 1. Civil works 143.47 17.78 30.78 35.49 31.46 23.07 4.89 (a) Dhaka city region roads (GCC, Savar, Rupganj) 86.50 12.98 21.63 21.63 17.30 10.38 2.60 (b) Dhaka city region roads (Araihazar) 20.70 3.11 5.18 5.18 4.14 2.69 0.41 (c) Khulna solid waste management 7.66 - - 1.53 2.84 2.84 0.46 (d) Drainage improvement in pourashavas 28.41 1.70 3.98 7.10 7.10 7.10 1.42 (e) Tree plantation 0.20 - - 0.06 0.08 0.06 - 2. Equipment & Goods 10.17 0.20 6.82 3.15 - - - 3. Resettlement & Land Acquisition 10.00 2.50 2.80 2.70 2.00 - - 4. Consulting services 18.48 3.07 5.16 3.42 3.30 3.27 0.25 (a) PDS-1 consultant (firm under PDA) 5.87 2.94 2.94 - - - - (b) PDS-2 consultant (firm) 6.85 - 0.96 1.92 1.92 1.92 0.14 (c) ICCD consultant (firm) 2.99 - 0.63 0.84 0.72 0.75 0.06 (d) Individual consultants 2.77 0.14 0.64 0.66 0.66 0.61 0.06

Subtotal (A) 182.12 23.56 45.55 44.77 36.76 26.34 5.14 B. Recurrent Costs

1. Salaries 3.48 0.52 0.70 0.70 0.70 0.70 0.17 2. Incremental administrative costs 2.59 0.39 0.52 0.52 0.52 0.52 0.13

Subtotal (B) 6.07 0.91 1.21 1.21 1.21 1.21 0.30 Total Base Cost 188.19 24.47 46.77 45.98 37.97 27.56 5.44 C. Contingencies

1. Physical contingencies 9.22 1.08 2.26 2.32 1.89 1.38 0.29 2. Price contingencies 12.26 0.63 2.19 2.94 3.10 2.75 0.65

Subtotal (C) 21.48 1.71 4.45 5.26 4.99 4.13 0.94 D. Financial Charges During Implementation

1. Interest during implementation 13.04 0.25 0.97 1.90 2.75 3.42 3.75 2. Commitment charges 0.29 0.11 0.08 0.06 0.03 0.01 0.00

Subtotal (D) 13.33 0.35 1.05 1.96 2.78 3.43 3.75 Total Project Cost (A+B+C+D) 223.00 26.53 52.26 53.20 45.74 35.12 10.14

% Total Project Cost 100.0% 11.9% 23.4% 23.9% 20.5% 15.7% 4.5% GCC = Gazipur City Corporation, ICCD = Institutional and community capacity development, PDA = project design advance, PDS = preparation, design, and supervision. Notes: 1. Numbers may not sum precisely because of rounding.

2. The costs of the actual audits of the program are minor and will be borne by the government. 3. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A4 and B2. ADB

will not finance land acquisition cost. Source: Asian Development Bank estimates.

20

H. Contract and Disbursement S-Curve

Table 13: Contract Awards and Disbursement for Regular Ordinary Capital Resources ($ million)

Year Contract Awards Disbursements

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

2019 - - - 61.7 61.7 - - 7.4 3.7 11.1

2020 3.8 2.3 2.6 4.6 13.3 4.6 6.7 3.7 3.8 18.8

2021 - - - - - 5.2 6.0 3.8 3.8 18.8

2022 - - - - - 3.8 3.8 3.7 3.7 15.0

2023 - - - - - 3.0 3.0 1.5 1.5 9.0

2024 - - - - - 1.2 1.1 - - 2.3

Total 3.8 2.3 2.6 66.3 75.0 17.8 20.6 20.1 16.5 75.0

Figure 2: S-Curve for Regular Ordinary Capital Resources

21

Table 14: Contract Awards and Disbursement for Concessional Ordinary Capital Resources

($ million)

Year Contract Awards Disbursements

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

2019 - - 5.0 7.0 12.0 - - 4.4 2.7 7.1

2020 22.0 22.4 7.8 10.7 62.9 5.4 6.8 2.9 3.4 18.5

2021 0.1 - - - 0.1 3.7 5.7 4.7 3.6 17.7

2022 - - - - - 4.0 4.3 3.3 3.6 15.2

2023 - - - - - 3.9 4.1 2.9 3.0 13.9

2024 - - - - - 1.3 1.3 - - 2.6

Total 22.1 22.4 12.8 17.7 75.0 18.3 22.2 18.2 16.3 75.0

Figure 3: S-Curve for Concessional Ordinary Capital Resources

22

I. Fund Flow Diagram

Figure 4: Fund Flow

Reporting or Requesting Withdrawal Applications Transfer of Funds

ADB = Asian Development Bank, IA = implementing agency, LGED = Local Government and Engineering Department, MOF = Ministry of Finance, PIU = project implementation unit, PMCU = project management coordination unit. Source: ADB.

23

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

19. The financial management assessment (FMA) was conducted for the proposed Second City Region Development Project in accordance with the guidelines on the Financial Management and Analysis of Projects (2005), Financial Due Diligence - A Methodology Note (2009), and Financial Management Technical Guidance Note (2015) of the ADB.18The FMA considered the financial management capacity of the executing agency, the LGED under the Ministry of Local Government, Rural Development and Cooperatives, and of the implementing agencies, the 16 municipalities in Dhaka and Khulna city regions.19 20. The LGED has considerable experience in implementing development projects, including the first CRDP funded by ADB.20 The LGED and its PMCU have been implementing the first CRDP at a satisfactory level in terms of getting project funds in a timely manner, including the government’s counterpart funds, efficient project management with adequate staff, timely submission of annual audited financial statements to ADB, and disbursements to contractors and consultants without delays. All 16 project municipalities also have experience in implementing ADB-funded projects21 and 14 out of 16 project municipalities have been implementing the first CRDP along with LGED. 21. The LGED will be responsible for overall management, supervision, and execution of the project through its PMCU. The PMCU will be responsible for the project management, including but not limited to: (i) preparing an overall project implementation plan and detailed work program; (ii) providing overall monitoring and guidance on project implementation; (iii) selection of subprojects in line with the agreed selection criteria; (iv) budgeting and financial planning and management; (v) providing technical support and overall guidance to implementing agencies; (vi) preparing periodic project progress and project completion reports; (vii) procuring goods, consulting services, and part of works including payments; and (viii) ensuring full compliance with ADB’s resettlement, environmental, and other safeguard policies. 22. The project implementation units (PIUs) to be established under the project municipalities will support PMCU in the implementation of the project. Each PIU will be managing the day-to-day project management including but not limited to: (i) liaising with PMCU on project implementation, (ii) procuring works including making payments to contractors, (iii) supervising and providing technical support to contractors, (iv) preparing progress reports for each contract, (v) obtaining right-of-way clearances, and (vi) participating in training and capacity building programs. 23. The major risk factors identified during the assessment that need to be addressed include:

18 (i) ADB. 2005. Financial Management and Analysis of Projects. Manila; (ii) ADB. 2009. Financial Due Diligence—A

Methodology Note. Manila; and (iii) ADB. 2015. Financial Management Technical Guidance Note. Manila. 19 Include 2 city corporations (Gazipur and Khulna) and 14 pourashavas (Chalna Dhamrai, Kaliakoir, Kanchon, Jessore,

Jhikargacha, Manikganj, Mongla, Narsingdi, Nowapara, Savar, Singair, Sonargaon, and Tarabo). 20 Includes: (i) ADB. Bangladesh: City Region Development Project; (ii) ADB. Bangladesh: Additional Financing: Third

Urban Governance and Infrastructure Improvement (Sector) Project; (iii) ADB. Bangladesh: Second Urban Governance and Infrastructure Improvement (Sector) Project; (iv) ADB. Bangladesh: Urban Public and Environmental Health Sector Development Program; (v) World Bank. 2014. Municipal Governance and Services Project.

21 Includes: (i) ADB. Bangladesh: Secondary Towns Integrated Flood Protection (Phase 2); and (ii) ADB. Bangladesh: Second Urban Governance and Infrastructure Improvement (Sector) Project.

24

(i) delays in setting up dedicated PIUs in the project municipalities may hamper the timely implementation of the project;

(ii) inadequate accounts staff in the project municipalities and insufficient knowledge on ADB procedures of newly assigned staff in PMCU and PIUs, may cause delays in day-to-day financial management;

(iii) weak internal audit system of the project municipalities may result in backlogs in preparation of project financial statements; and

(iv) non-compliance with the agreed accounting and fund-flow procedures may hamper the effective implementation of the project.

24. It is concluded that the overall pre-mitigation financial management risk of LGED and project municipalities is moderate. Considering sufficient experience handling ADB-funded projects of LGED, PMCU, and project pourashavas as well as project implementation arrangement established by LGED, the advance fund limit was set to the advance equivalent to 6 months forecast, and the Statement of Expenditures (SOE) single payment ceiling was set to $100,000 and below. The government, LGED, and project municipalities have agreed to implement an action plan as key measures to address the deficiencies. The financial management action plan is provided Table 15.

Table 15: Financial Management Action Plan

Area Current

Scenario Risk

Mitigation Measure

Suggested Responsibility Target Date

PIUs establishment

PIUs will be created once the government approves the project.

Delays in setting up dedicated PIUs may hamper the timely implementation of the project.

Commitment of the government to ensure the timely setting up of PIUs with qualified staff.

LGED, project

municipalities

Before loan signing

Staffing Accounts staff in project municipalities are inadequate.

Inadequate accounting staff may result in delays in preparing financial reports and annual budget.

Strengthening the accounts section of project municipalities by engaging qualified staff.

LGED, project

municipalities

Before loan effectiveness

Staff of PMCU and PIUs will be transferred every three years.

New staff without sufficient knowledge of ADB procedures may cause delays in the day-to-day financial management.

Extending full training and preparing a financial procedures manual with the help of the ICCD consultants. Ensuring one-month handover period for new accounts staff.

LGED, project

municipalities

Before loan signing

25

Area Current

Scenario Risk

Mitigation Measure

Suggested Responsibility Target Date

Internal audit Internal audit system of the project municipalities is weak.

This will result in backlogs in preparation of project financial statements.

Strengthening the internal audit system with qualified staff to support the audit committees or through outsourcing to professional audit firms.

Project municipalities

Before loan effectiveness

Accounting procedures and funds flow

Non-compliance with the agreed accounting and fund-flow procedures were found in the previous projects.

This may hamper the effective implementation of the project.

Government’s timely allocation of its counterpart funds to LGED along with LGED’s adherence to agreed accounting and fund flow procedures.

LGED, project

municipalities

Before loan effectiveness

ADB = Asian Development Bank, ICCD = institutional and community capacity development, LGED = Local Government Engineering Department, PIU = project implementation unit, PMCU = project management coordination unit.

25. The FMA has considered two types of risks: (i) inherent risks, i.e. risks outside the direct control of executing agency and implementing agencies; and (ii) control risks, i.e. risks concerning the internal functioning and control of executing agency and implementing agencies. The key risks have been identified and presented in Table 16.

Table 16: Financial Management Inherent and Control Risk Assessment

Risk Risk Assessment Risk-Mitigation Measures

A. Inherent Risk

1. Country–Specific Risks (Bangladesh)

MODERATE

• Although Bangladesh has recently made positive progress in developing PFM systems, some areas, including arrear payments, public access to key fiscal information, procurement, and internal audit, still need to be improved.

Measures by the government to improve the weak PFM areas identified in PEFA 2016 should be undertaken. Policy dialogues need to be continued closely between ADB and the government through CPS and COBP.

2. Entity-Specific Risks (LGED)

LOW

• LGED will be the executing agency and its PMCU will use the accounting system and procedures prescribed by the government.

• The system followed for earlier and ongoing ADB funded projects will be used for the project.

Not applicable

26

Risk Risk Assessment Risk-Mitigation Measures

3. Project-Specific Risks

SUBSTANTIAL

• Delays in establishing fully staffed PIUs may hamper the timely implementation of the project.

Timely establishment of PIUs needs to be committed by the government.

Overall Inherent Risk

SUBSTANTIAL Although country- and project-specific risks exist as substantial, these risks can be mitigated through cordial efforts of the government with support of ADB. The timely establishment of PIUs with qualified staff particularly needs to be committed by the government.

B. Control Risks – LGED (Executing Agency) and its PMCU

1. Executing Agency LOW

• LGED will be responsible for the overall implementation of the project.

• LGED has implemented a number of projects funded by ADB, World Bank, and JICA, including the first CRDP funded by ADB.

Not Applicable

2. Funds Flow SUBSTANTIAL

• Like the first CRDP, the government will allocate ADB loans and its counterpart funds to PMCU using the established budgetary mechanism.

• It was observed in the projects that the expenditures to be spent by the government counterpart funds were covered by ADB’s advance funds.

Firm commitment from the MOF for the timely release of counterpart part fund needs to be ensured. Direct payment mechanism for major foreign component payments for contractors and suppliers for ADB share is required. LGED needs to assure that ADB fund will be separately administered and maintained from counterpart fund.

3. Staffing LOW (LGED)

• The finance and accounts sections of LGED is adequately staffed with competent and experienced personnel.

SUBSTANTIAL (PMCU)

• PMCU established for the first CRDP will continue to implement the project.

• All accounts staff in PMCU will be transferred every three years.

Not Applicable Extending full training and capacity building support, with the support of Financial Management expert to be provided under ICCD, are required for the newly assigned staff of PMCU. A mandatory one-month handover period needs to be committed by LGED.

4. Accounting Policies and Procedures

SUBSTANTIAL

• LGED and its PMCU follow established policies and procedures defined by the

A financial procedures manual (detailing the necessary financial tasks and processes to be

27

Risk Risk Assessment Risk-Mitigation Measures

government using cash-based accounting system.

• Procedure violations in utilizing ADB funds were observed in the previous projects (e.g. using ADB’s advance funds for government counterpart expenditure and excess payment to contractors without proper justifications).

• And, recent audit reports of the first CRDP revealed that the annual financial statements needs to be improved by including a summary statement of expenditures, statement of imprest account and significant accounting policies and notes.

undertaken by accounts staff) need to be developed during the first year of project implementation. Financial Management expert to be provided under ICCD is required to support project implementation, and monitor fund flow arrangements and other financial management procedures.

5. Internal Audit LOW

• Internal audits of LGED and project accounts are conducted on sport or annual basis by internal audit cell of LGED.

• Internal audits of LGED and project accounts have been done up to FY2017.

Not Applicable

6. External Audit (entity)

LOW

• External audit of LGED is conducted annually by C&AG staff, with clear and adequate assignment.

• External audits of LGED have been done up to FY2017 without delays and issues.

Not Applicable

7. External Audit (project)

LOW

• Project accounts of PMCU will be audited by FAPAD. Audit report will comprise of (a) Auditor’s Report; (b) Financial Statements; (c) Management Letter; (d) Audit opinion on Special Account Statement; and (e) Audit Opinion on SOE.

• External audit of the project accounts for the first CRDP has been done up to FY2017 without delay.

Not Applicable

8. Reporting and Monitoring

MODERATE

• Comprehensive monthly, quarterly, yearly Financial Management reporting systems are in place and followed for the first CRDP.

• Routine reports are produced from the Accounting System. Others are prepared on spreadsheets with figures extracted from the accounting system.

• LGED follows UFMS developed for the purpose of generation of accounting and management information reports

• APFS need to be improved with additional information, as revealed by the recent report on the first CRDP.

PMCU needs to ensure timely submission of APFS and other reports with all required financial documents with the support of Financial Management expert to be recruited under ICCD.

9. Information Systems

MODERATE

28

Risk Risk Assessment Risk-Mitigation Measures

• An automated financial information system is in place.

• Information generated from the current system will be used for preparing the required reports of the project.

• The accounts staff using the information system may not have sufficient knowledge on ADB procedures.

Additional training to accounts staff with support of PMCU and ADB is required.

Overall Control Risk

MODERATE Some financial management risks are recognized, but most are not substantial. Qualified and experienced Financial Management experts will provide training on ADB procedures and capacity development to the staff of LGED and PMCU. In addition, timely allocation of its counterpart funds to LGED along with LGED’s adherence to agreed accounting and fund flow procedures needs to be committed by the government.

C. Control Risks – Khulna city corporation (Implementing Agency) and its PIU

1. Implementing Agency

LOW

• PIU to be established in KCC will be responsible for implementing the works components under the project.

• KCC has implemented several donor-assisted projects including the first CRDP funded by ADB.

Not Applicable

2. Funds Flow LOW

• The government will allocate ADB loans and its counterpart funds to PIU through PMCU using the established budgetary mechanism.

• Funds flow for the project will be same as for the first CRDP funded by ADB.

Not Applicable

3. Staffing SUBSTANTIAL (KCC)

• Accounting system is adequate and in place. However, the accounts section of KCC will require one or two additional accounts staff in assistant accountant level to implement the project, as the present staff is overloaded with on-going works.

SUBSTANTIAL (PIU)

• PIU will be created once the government approves the project.

• All accounts staff to be assigned in PIU will be transferred every three years.

Strengthening the accounts section of KCC needs to be done by engaging qualified staff. Extending full training and capacity building support are required for the newly assigned staff of PIUs.

4. Accounting Policies and Procedures

MODERATE

• KCC follows established policies and procedures defined by the government, with cash-based accounting system.

• Recent audit report of CRDP revealed that the annual financial statements could be improved by including a summary statement of expenditures, statement of imprest account and significant accounting policies and notes.

A financial procedures manual (detailing the necessary financial tasks and processes to be undertaken by accounts staff) needs to be developed.

5. Internal Audit SUBSTANTIAL (KCC)

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Risk Risk Assessment Risk-Mitigation Measures

• Dedicated audit officials for entity and funded projects are not available.

• Internal audits for project accounts is not available.

Strengthening the internal audit system with qualified staff or outsourcing to professional audit firms is required to support the audit committees.

6. External Audit (entity)

LOW

• KCC is audited by the C&AG according to the Auditing Standards of the government.

• External audits of KCC has been done up to FY2017.

Not Applicable

7. External Audit (project)

LOW

• Project financial statements prepared by the PIU will be audited by FAPAD of C&AG.

• External audit of the project accounts for the first CRDP has been done up to FY2017.

Not Applicable

8. Reporting and Monitoring

MODERATE

• The existing system functioning at satisfactory level will be followed for the project.

• Existing APFS need to be improved with additional information, as revealed by the recent CRDP report.

PMCU needs to ensure timely submission of APFS and other reports with all required financial documents with the support of Financial Management experts under ICCD.

9. Information Systems MODERATE

• Information generated from the current system will be used for preparing the required reports of the project.

• The accounts staff may not have sufficient knowledge on ADB procedures.

Additional training on ADB procedures needs to be provided to accounts staff.

Overall Control Risk

MODERATE Some financial management risks are recognized but not all of them are substantial. However, there are some substantial risks in the areas of staffing and internal audit which need to be addressed. The KCC needs to ensure timely recruitment of qualified accounts staff and strengthening the internal audit system with qualified staff or outsourcing to professional audit firms.

D. Control Risks – Savar Pourashava (Implementing Agency) and its PIU

1. Implementing Agency

LOW

• PIU established in Savar pourashava will be responsible for implementing the works components under the project.

• Savar pourashava had implemented subprojects under the first CRDP financed by ADB and some other projects financed by BMDF fund.

Not Applicable

2. Funds Flow LOW

• The government will allocate ADB loans and its counterpart funds to PIU through PMCU using the established budgetary mechanism.

• Funds flow for the project will be same as for the first CRDP funded by ADB.

Not Applicable

3. Staffing MODERATE (Savar Pourashava)

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Risk Risk Assessment Risk-Mitigation Measures

• Savar pourashava has adequately staffed with competent and experienced personnel in their accounts section.

SUBSTANTIAL (PIU)

• PIU will be created once the government approves the project.

• All accounts staff to be assigned will be transferred every three years.

Extending full training and capacity building support are required for the newly assigned staff of accounts section in both Savar pourashava and PIU.

4. Accounting Policies and Procedures

MODERATE

• Savar pourashava follows established policies and procedures defined by the government.

• Recent audit report of CRDP revealed that the annual financial statements could be improved by including a summary statement of expenditures, statement of imprest account and significant accounting policies and notes

A financial procedures manual (detailing the necessary financial tasks and processes to be undertaken by accounts staff) needs to be developed.

5. Internal Audit SUBSTANTIAL

• There is no internal audit unit in Savar pourashava. And, it is conducted on a yearly basis by its internal audit committee following the established process.

• The existing internal audit committee members may not have sufficient knowledge on ADB procedures.

Internal audit system needs to be arranged to support the existing internal audit committee. Training on ADB procedures is required for the existing internal audit committee members.

6. External Audit (entity)

SUBSTANTIAL

• Savar pourashava is audited by the C&AG according to the Auditing Standards of the government.

• External audit for Savar pourashava is completed only up to FY2012 due to shortage of audit staff in revenue audit directorate of C&AG, annual audits of several municipalities were delayed and Savar pourashava is among them.

Immediate steps by SP and LGED is required to complete the audit backlogs.

7. External Audit (project)

LOW

• The FAPAD of C&AG will conduct the external audit of the project.

• External audit of the project accounts for the first CRDP has been done up to FY2017.

Not Applicable

8. Reporting and Monitoring

MODERATE

• The existing system functioning at satisfactory level will be followed for the project.

• Existing APFS need to be improved with additional information, as revealed by the recent first CRDP report

PMCU needs to ensure timely submission of APFS and other reports with all required financial documents with the support of Financial Management experts in the ICCD.

9. Information Systems MODERATE

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Risk Risk Assessment Risk-Mitigation Measures

• An automated financial information system is in place.

• Use of manual accounting parallel to the software and preparation of reports from software outputs have caused delays.

Additional training on UFMS software use and ADB procedures are required.

Overall Control Risk

MODERATE Although some financial management risks are recognized, but not all of them are substantial. However, risks on staffing of PIU, internal audit, and external audit need to be addressed through timely recruitment of qualified accounts staff of PIU, providing training to the existing internal audit committee, and coordination with G&AG to complete the audit backlogs.

E. Control Risks – Sonargaon Pourashava (Implementing Agency) and its PIU

1. Implementing Agencies

LOW

• PIU to be established in Sonargaon pourashava will be responsible for implementing the works components under the project

• Sonargaon pourashava had implemented subprojects under CRDP I financed by ADB.

Not Applicable

2. Funds Flow LOW

• The government will allocate ADB loans and its counterpart funds to PIU through PMCU using the established budgetary mechanism.

• Funds flow for the project will be same as for the first CRDP funded by ADB.

Not Applicable

3. Staffing SUBSTANTIAL (Sonargaon pourashava)

• Sonargaon pourashava requires additional accounting staff with competent and experienced personnel to implement the project.

SUBSTANTIAL (PIU)

• PIU will be created once the government approves the project.

• All accounts staff to be assigned will be transferred every three years.

Strengthen accounts section with additional staff is required. Extending full training and capacity building support are required for the newly assigned staff of PIU.

4. Accounting Policies and Procedures

MODERATE

• Sonargaon pourashava follows established policies and procedures defined by the government.

• Recent audit reports of the first CRDP revealed that the annual financial statements could be improved by including a summary statement of expenditures, statement of imprest account and significant accounting policies and notes.

A financial procedures manual (detailing the necessary financial tasks and processes to be undertaken by accounts staff) needs to be developed.

5. Internal Audit SUBSTANTIAL

• There is no internal audit unit in Sonargaon pourashava. It is conducted on a yearly basis by its internal audit committee following the established process.

Internal audit system needs to be arranged to support the existing internal audit committee.

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Risk Risk Assessment Risk-Mitigation Measures

• The existing internal audit committee members may not have sufficient knowledge on ADB procedures.

Training on ADB procedures to existing internal audit committee members is required.

6. External Audit (entity)

LOW

• Sonargaon pourashava is audited by the C&AG according to the Auditing Standards of the government.

• Audit for Sonargaon pourashava is completed up to FY2017 without delays.

Not Applicable

7. External Audit (project)

LOW

• The FAPAD of C&AG will conduct the external audit of the project.

• External audit of the project accounts for the first CRDP has been done up to FY2017.

Not Applicable

8. Reporting and Monitoring

MODERATE

• The existing system functioning at satisfactory level will be followed for the project.

• Existing APFS need to be improved with additional information, as revealed by the recent CRDP report

PIU needs to ensure timely submission of APFS and other reports with all required financial documents with the support of Financial Management expert under ICCD.

9. Information Systems MODERATE

• An automated financial information system is in place.

• Use of manual accounting parallel to the software and preparation of reports from software outputs may cause delays.

Additional training on UFMS software use and ADB procedures are required.

Overall Control Risk

MODERATE Some financial management risks are recognized but not all of them are substantial. Substantial risks are found in the areas of staffing and internal audit. The Sonargaon Pourashava needs to ensure timely recruitment of qualified accounts staff and providing training to the existing internal audit committee on the ADB procedures.

ADB = Asian Development Bank, APFS = audited project financial statement, BMDF = Bangladesh Municipal Development Fund, C&AG = Controller and Auditor General, COBP = country operations business plan, CPS = country

partnership strategy, CRDP = City Region Development Project, FAPAD = Foreign Aided Project Audit Directorate, FY = fiscal year, ICCD = Institutional and Community and Capacity Development, JICA = Japan International Cooperation Agency, KCC = Khulna city corporation, LGED = Local Government Engineering Department, MOF = Ministry of Finance, PEFA = Public Expenditure and Financial Accountability, PFM = Public Financial Management, PIU = project implementation unit, PMCU = project management and coordination unit, SOE = Statement of Expenditures, UFMS = Unified Financial Management System.

B. Disbursement

1. Disbursement Arrangements for ADB Funds

26. The loan proceeds will be disbursed in accordance with the ADB’s Loan Disbursement Handbook (2017, as amended from time to time), and detailed arrangements agreed upon between the government and the ADB. The PMCU will be responsible for: (i) preparing annual contract awards and disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing and sending withdrawal applications to the ADB. Online training for project staff on disbursement policies and

33

procedures is available.22 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.

27. Advance fund procedure. An advance account should be established and maintained by the PMCU for the ADB loan. The PMCU is responsible for the liquidation and replenishment of the advance fund. The currency of the advance account is the US dollar. The advance account is to be used exclusively for the ADB’s share of eligible expenditures. The PMCU, who established the advance account in its name, is accountable and responsible for proper use of advances to the advance account. 28. The total outstanding advance to the advance account should not exceed the estimate of ADB’s share of expenditures to be paid through the advance account for the forthcoming 6 months. The PMCU as authorized by the Economic Relations Division of the Ministry of Finance, may request for initial and additional advances to the advance account based on an Estimate of Expenditure Sheet23 setting out the estimated expenditures to be financed through the account for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by the PMCU in accordance with the ADB’s Loan Disbursement Handbook (2017, as amended from time to time) when liquidating or replenishing the advance account. 29. Statement of expenditures procedure.24 The statement of expenditures (SOE) procedure will be adopted for liquidation and reimbursement of eligible expenditures not exceeding $100,000 per individual payment. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review mission, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB. 30. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is stipulated in the Loan Disbursement Handbook (2017, as amended from time to time).25 Individual payments below such amount should be paid (i) by the executing and/or implementing agency and subsequently claimed to ADB through reimbursement; or (ii) through the advance fund procedure, unless otherwise accepted by ADB. The Borrower should ensure sufficient category and contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursement system is encouraged for submission of withdrawal applications to ADB.

2. Disbursement Arrangements for Counterpart Fund

31. The PMCU will submit to ADB, annual contract awards and disbursement projections before the start of each calendar year using the ADB’s standard format. The PMCU is responsible for (i) requesting budgetary allocations for counterpart funds for both PMCU and PIUs, (ii) collecting supporting documents for the project, and (iii) preparing and sending withdrawal

22 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning. 23 ADB. 2017. Loan Disbursement Handbook. 10B. Manila. 24 The SOE forms are available in Appendix 9B and 9C of ADB’s Loan Disbursement Handbook (2017, as amended

from time to time). 25 The minimum value per withdrawal application is $200,000 equivalent or 1% of the ADB loan amount, whichever is

lower.

34

applications to ADB. 32. The PMCU, in consultation with LGED, will prepare the annual budget based on the policy of the medium-term expenditure framework of the government. For reimbursing eligible project expenditure to the government, the reimbursement procedure will be followed. For the project, the MOF will allocate counterpart funds to PMCU and PIUs through budgetary allocation. C. Accounting

33. The PMCU and PIUs will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following International Public Sector Accounting Standard for cash-based accounting. The government ensures that the accounts are recorded against project activities and disbursement categories with using a chart of accounts of 13 digits to identify the transactions and its record. The PMCU will prepare consolidated project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices. The project financial statements shall include a statement of receipts and payments with accompanying notes and schedules. The project financial statements shall also include all expenditure incurred under the loan portion as well as the government portion of the project. These shall be prepared to ensure maximum alignment to the government’s Financial Procedures, Act and Rules. The project financial statements shall include all sources of funds for the project including ADB loan and government’s counterpart funds. D. Auditing and Public Disclosure

34. The PMCU and PIUs will cause the detailed consolidated project financial statements to be audited with International Standards on Auditing or International Standards for Supreme Audit Institutions and with the government's audit regulations, by an independent auditor acceptable to ADB. As the constitutionally mandated supreme audit institution, it is expected that the Office of Comptroller and Auditor General shall conduct the audit. The project financial statements will be submitted in English language to ADB no later than 6 months from the end of the fiscal year by PMCU.

35. The audit report for the project financial statements will include a management letter, auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the loan were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable). 36. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

37. The government and LGED have been made aware of the ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.26 ADB reserves the right to require a change in the auditor (in a manner

26 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months,

35

consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. 38. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by the ADB’s Access to Information Policy.27 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on the ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

39. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Guidelines (2015, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, executing and implementing agencies have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. 40. Advance contracting. Advance contracting may be entered for (i) civil works, (ii) equipment and materials, and (iii) recruitment of consultants. Advance contracting that may be concluded in advance include (i) pre-qualification (if applicable) of contractors, preparation of procurement documents, procurement, bid evaluation and award for civil works packages; (ii) preparation of procurement documents to procure materials and equipment, procurement and bid evaluation, and award; and (iii) recruitment of consultants. 41. Retroactive financing. Retroactive financing refers to ADB’s financing of project expenditures incurred and paid for by the borrower prior to the effectiveness of the loan agreement but not earlier than 12 months prior to the signing of the loan agreement. Except as otherwise agreed with ADB, the expenditures incurred for civil works, equipment and materials, and consulting services that are eligible for advance contracting, and project management and implementation expenses of PMCU and PIUs will be eligible for retroactive financing of up to 20% of the ADB loan amount. B. Procurement of Goods, Works, and Consulting Services

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

requests for new contract awards and disbursement such as new replenishment of advanced accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed;

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

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

27 ADB’s Access to Information Policy: https://www.adb.org/documents/access-information-policy.

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Procurement Guidelines (2015, as amended from time to time). 43. International competitive bidding (ICB) procedures will be used for any civil works contract estimated to cost $15 million or above, and any goods contract valued at $2 million or above. Domestic preference may apply to ICB packages for goods. National competitive bidding (NCB) procedures will be used for any civil works contract estimated to cost less than $15 million and any goods contract estimated to cost less than $2 million. Shopping will be used for procurement of works and goods worth less than $100,000. 44. Goods and civil works procured using NCB will follow national procedures acceptable to ADB. The electronic-Government Procurement System (e-GP) will be used for procurement of goods and works under NCB.28

ADB has reviewed the e-GP system for consistency with the ADB’s Procurement Guidelines (2015, as amended from time to time). Any ICB packages (works and goods) and any NCB package above $3 million (works and goods) is subject to ADB’s prior review. All other packages will be post review, unless the executing or implementing agencies request prior review due to special reasons. The possibility of applying Post Review (Sampling) is to be assessed. If deemed feasible and additional measures identified in the assessment (if any) implemented, Post Review (Sampling) may be applied to relevant packages. 45. 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. 46. All consultants and nongovernment organizations if appropriate will be recruited according to ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).29 The terms of reference for all consulting services are detailed in Section D.

47. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants (2013 as amended from time to time). An estimated 194 person-months of international and 1,356 person-months of national consulting services are required to (i) facilitate preparation, design, and supervision; (ii) strengthen institutional and community capacity; (iii) support project management, monitoring and evaluation; and (iv) facilitate gender development. One consultant team for preparation, design and supervision has been recruited under the Project Design Advance and two more teams of consultants will be recruited through firms using the quality- and cost-based method of selection with a quality-cost ratio of 90:10 to ensure engagement of highly qualified and experienced team of consultants. A pool of individual consultants will also be engaged to support PCMU, LGED, and city corporations and pourashavas included under the project.

C. Procurement Plan

48. The procurement plan (Appendix 3) is prepared in accordance with ADB’s template and using country-specific NCB annex (Section C). The procurement plan indicates threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines. The procurement plan provides: (i) a list of goods, works, and consulting services contract packages that will be processed over the next 18 months with milestone dates for activities; (ii) the proposed methods for procurement of such contracts that are permitted under the loan agreement; and (iii) the related ADB review procedures. The

28 Under advanced contracting e-GP will only be used after approval of the Development Project Proposal by the

government. 29 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/.

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procurement packages in the procurement plan will be updated by the PMCU for approval by ADB. The procurement plan will be updated at least annually, and more frequently if necessary. ADB will review each updated procurement plan prior to its publication. D. Consultant's Terms of Reference

49. Outline terms of reference for the consultants are available in Appendix 4.30

30 Terms of reference guidelines are available at https://www.adb.org/sites/default/files/institutional-document/31340/csom.pdf (paras 65–72).

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VII. SAFEGUARDS

50. Environment Safeguards. The project is classified as category B for environmental safeguards per ADB Safeguard Policy Statement (SPS), 2009. Initial environmental examination (IEE) was conducted for three sample subprojects comprising roads, drainage, and solid waste management small works. Results of the IEEs demonstrate proposed subprojects are unlikely to have any diverse, irreversible and unprecedented significant impacts. Most of the potential impacts are due to construction in developed areas and are temporary in nature and can be mitigated with simple and proven mitigation measures. No category A type of works per ADB SPS, 2009 are anticipated. Per environmental assessment and review framework (EARF) and subproject selection criteria (Appendix 1) no subprojects classified as category A per ADB SPS, 2009 will be considered for implementation under the project. 51. Environmental Assessment for Subprojects. An EARF has been developed in accordance with ADB SPS, 2009 and Government of Bangladesh environmental laws and regulations to guide subproject selection, screening and categorization, environmental assessment, and preparation and implementation of safeguard plans of subprojects and to facilitate compliance with the requirements specified in ADB SPS, 2009.31 The EARF (i) describes the proposed subprojects including safeguards criteria that are to be used in selecting subprojects and/or components; (ii) explains the general anticipated environmental impacts of the subprojects; (iii) specifies the requirements in subproject screening and categorization, assessment, and planning; (iv) arrangements for meaningful consultation with affected person and other stakeholders and information disclosure requirements; (v) PMCU capacity to implement national laws and ADB’s requirements and needs for capacity building; (vi) specifies implementation procedures and institutional arrangements; (vii) specifies monitoring and reporting requirements; and (viii) describes the respective responsibilities of PMCU, PIUs, and ADB in relation to the preparation, implementation, and progress review of environment safeguards compliance of the project. The EARF will be reviewed regularly and, if necessary, updated during implementation when (i) new types of unanticipated impacts are identified requiring review of applicability and relevance, and/or (ii) when there is any change in legal and regulatory framework. None of the provisions of EARF will be relaxed or lowered in the subsequent revisions and updates. The most important compliance requirements are:

(i) compliance with the exclusion and subproject selection criteria; (ii) meeting meaningful consultation and disclosure requirements; (iii) ADB approval of IEE prior to invitation of bids; and (iv) obtaining all necessary regulatory clearances and approvals prior to award of

contract. 52. Initial Environmental Examinations and Environmental Management Plans. The IEEs which include the environmental management plans (EMPs) will be prepared for each subproject in accordance with ADB SPS, 2009 and EARF. The IEEs will also include environmental compliance audit of existing facilities that will be rehabilitated or expanded under

31 The EARF is prepared based on (i) ADB’s SPS, 2009; and (ii) national environmental acts, rules, regulations, and

standards. All environmental assessment is required to follow the procedures outlined in this EARF. Any component included in the project shall comply with Government of Bangladesh environmental requirements and ADB’s SPS, 2009. The EARF ensures that all subprojects under the project, throughout the entirety of their project cycle, will not deteriorate or interfere with the ecological sensitivity of a subproject area, but rather improve environmental quality.

39

the project and due diligence of associated facilities as defined in ADB SPS, 2009.32 The IEEs will form part of the bid and contract document. No works can commence until final IEEs33 are approved by ADB, and if required, will be further updated for ADB’s review during the implementation. In the event of unanticipated impact and/or any design change and/or non-compliance during project implementation, the IEE will be updated to include (i) assessment of the unanticipated impact and corresponding mitigation measures, and/or (ii) information on the design change and assessment of associated environmental impacts, if any, and/or (iii) corrective actions, associated cost and schedule; respectively. All IEEs will be disclosed on ADB and executing and implementing agencies websites. 53. Environmental Audit of Existing Facilities. For subprojects involving facilities that already exist or are under construction or proposed, environmental compliance audit will be conducted. The environmental audit will include on-site assessment to identify past or present environmental concerns, whether actions were in accordance with ADB’s safeguard principles and requirements for executing and implementing agencies and identify and plan appropriate measures to address outstanding compliance issues. A corrective action plan in the IEEs will be agreed on by ADB and PMCU. The plan will define the necessary remedial actions, the budget for such actions, and the timeframe for resolution of non-compliance. The environmental audit report (including the corrective action plan, if any) will be made available to the public in accordance with the information disclosure requirements of ADB SPS, 2009. If a subproject involves an upgrade or expansion of existing facilities that has potential impacts on the environment, the requirements for environmental assessments and planning specified in the EARF will apply in addition to compliance audit. 54. Solid waste management subproject. Prior to undertaking small infrastructure works under the solid waste management (SWM) subproject in Khulna city corporation, PMCU, with support from internal and external experts, shall prepare a comprehensive SWM plan following applicable internationally recognized best practices, acceptable to ADB, such as ADB’s Practical Guide on Integrated Solid Waste Management for Local Governments and World Bank’s Environmental, Health and Safety Guidelines on Waste Management Facilities. Suggested activities that may be undertaken by PMCU is in Appendix 7 of the EARF. Therefore, the design and construction of a proposed composting plant shall not be undertaken simultaneous with the comprehensive SWM planning; unless a separate SWM expert is hired for the composting plant component. The engagement of a separate SWM expert shall ensure that the composting plant is designed and constructed in accordance with the comprehensive SWM plan that is yet to be developed. As such, the SWM expert shall be closely coordinating with the comprehensive SWM planning team.

32 ADB SPS, 2009 defines associated facilities as not funded as part of the project (funding may be provided separately

by the borrower/client or by third parties), and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project.

33 The final IEEs will include site-specific EMPs (SEMP) and monitoring program to be implemented by subproject contractors.

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Figure 5: Environmental Safeguard Implementation Arrangement

Legend: Coordination Supervision Reporting ADB = Asian Development Bank, EHS = environmental, health and safety, PDS = preparation, design, and supervision, PIU = project implementation unit, PMCU = project management coordination unit. Source: ADB.

55. Project Management Coordination Unit. The LGED will be the executing agency responsible for overall guidance of the project and implementation of urban roads, drainage and solid waste management subprojects. The PMCU, headed by a Project Director will be responsible for planning, management, coordination, supervision and progress monitoring of the project. The PMCU has the responsibility of fulfilling environmental requirements of the government and conducting required level of environmental assessment per ADB SPS, 2009. To ensure effective implementation of the environmental aspects, one LGED personnel will be assigned as full-time environmental safeguards officer for PMCU. The environmental safeguards officer will primarily be responsible for the compliance to the statutory and legal requirements, including overall supervision of the implementation of the environmental management provisions in the IEEs and/or EMPs for the subprojects. The preparation, design and supervision (PDS) consultants will assist the PMCU in this regard. Summary of responsibilities of the environmental safeguards officer are:

(i) review and confirm existing IEEs and EMPs are updated based on detailed designs, that new IEEs and/or EMPs prepared by PIUs with support from PDS consultants comply with ADB SPS, 2009, EARF, and government rules; and recommend for approval to PMCU;

Local Government Engineering Department

PDS Consultant Environment Specialist

(Consultant)

PMCU Environment Officer

ADB

Contractors (EHS Supervisors or

equivalent)

PIU Environment Focal

41

(ii) approve subproject environmental category, which shall be concurred to by ADB; (iii) ensure that EMPs are included in bidding documents and civil works contracts; (iv) provide oversight on environmental management aspects of subprojects and

ensure EMPs are implemented by PIUs and contractors; (v) establish a system to monitor environmental safeguards of the project including

monitoring the indicators set out in the monitoring plan of the EMP; (vi) facilitate and confirm overall compliance with all government rules and regulations

regarding site and environmental clearances as well as any other environmental requirements as relevant;

(vii) supervise and provide guidance to the PIUs to properly carry out the environmental monitoring and assessments as per the EARF;

(viii) review, monitor and evaluate effectiveness with which the EMPs are implemented, and recommend necessary corrective actions to be taken;

(ix) consolidate monthly environmental monitoring reports from PIUs and submit semi-annual monitoring reports to ADB;

(x) ensure timely disclosure of final IEEs/EMPs in project locations and in a form accessible to the public;

(xi) assist with ongoing meaningful consultation and assist in setting up of grievance redress mechanism (GRM) in respect environment concerns;

(xii) address any grievances brought about through the GRM in a timely manner per the IEEs (Appendix 5);

(xiii) undertake regular review of safeguards-related loan covenants, and the compliance during program implementation; and

(xiv) organize periodic capacity building and training programs on safeguards for project stakeholders, PMCU, and PIUs.

56. Project Implementation Units. The PIUs will be responsible for the day-to-day activities of project implementation in the field and will have direct supervision to all contractors at subproject sites. Each PIU will appoint at least one environment staff responsible for day-to-day monitoring of the project progress and implementation of the environmental provisions in the EMP and the environment staff will ensure compliance with government and ADB requirements on environmental safeguards. The PIU will prepare progress reports on all aspects concerning environmental assessment, management, monitoring, and report to the PMCU. The environmental officer of the PIUs will receive support from (i) the PMCU environmental officer, and (ii) PDS consultant environmental specialist. Responsibilities of the PIUs are the following:

(i) prepare new IEEs and EMPs in accordance with the EARF and government rules; (ii) include EMPs in bidding documents and civil works contracts; (iii) comply with all government rules and regulations; (iv) take necessary action for obtaining right of way clearances; (v) oversee implementation of EMPs including environmental monitoring by

contractors; (vi) take corrective actions when necessary to ensure no environmental impacts; (vii) submit quarterly environmental monitoring reports to PMCU; (viii) assist with ongoing meaningful consultation and assist in setting up of GRM in

respect to environment concerns; and (ix) address any grievances brought about through the GRM in a timely manner as per

the IEEs. 57. Preparation, Design and Supervision Consultant. The PDS consultant teams will be engaged to support PMCU and PIUs in the implementation of the project and will have an environment consultant team composed of two national environmental specialists (for duration of

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implementation). These personnel will provide technical support to the PMCU and PIUs including implementation of the environmental requirements, according to ADB SPS, 2009, and assist in monitoring impacts and mitigation measures associated with subprojects. The PDS environmental safeguards specialists will support environmental management functions including updating subproject IEEs with respect to EMPs, assist in preparing IEEs, and assist in monitoring impacts and mitigation measures associated with subprojects. PDS environment consultant will provide needed training and capacity building support to the PMCU and PIUs. 58. Civil works contracts and contractors. The IEEs and EMPs are to be included in bidding and contract documents and verified by the PIUs. The contractor will be required to designate a full-time environment, health and safety supervisor (or equivalent) to ensure implementation of EMP during civil works. Contractors are to carry out all environmental mitigation and monitoring measures outlined in their contract. The contractor will be required to submit to PIU, for review and approval, a site-specific environmental management plan (SEMP) including (i) proposed sites and/or locations for construction work camps, storage areas, hauling roads, lay down areas, disposal areas for solid and hazardous wastes; (ii) specific mitigation measures following the approved EMP; (iii) monitoring program per EMP; and (iv) budget for SEMP implementation. No works can commence unless EMP is approved by PIU. The contractor will be required to undertake day to day monitoring if EMP implementation and submit reports to the PIU on a quarterly basis. 59. A copy of the EMP and approved SEMP will be kept on site during the construction and O&M period always. Non-compliance with, or any deviation from, the conditions set out in the EMP/SEMP constitutes a failure in compliance and will require corrective actions. The EARF and IEEs specify responsibilities in EMP implementation during design, construction and O&M phases. 60. The PMCU and PIUs will ensure that bidding and contract documents include specific provisions requiring contractors to comply with: (i) all applicable labor laws and core labor standards on (a) prohibition of child labor as defined in national legislation for construction and maintenance activities; (b) equal pay for equal work of equal value regardless of gender, ethnicity, or caste; and (c) elimination of forced labor; and with (ii) the requirement to disseminate information on sexually transmitted diseases, including HIV/AIDS, to employees and local communities surrounding the project sites. 61. Social Safeguards. The project is classified as category B for involuntary resettlement and as category C for Indigenous Peoples as per ADB’s SPS, 2009. One draft resettlement plan and three draft social safeguard due diligence reports (DDRs) are prepared for the sample subprojects, in accordance with ADB SPS, 2009 and government policies. The draft documents will be finalized and submitted to ADB for review, approval, and disclosure following the completion of final detailed design. A resettlement framework was prepared to guide future resettlement planning for subprojects to be defined after Board approval. Appendix 6 includes an outline and checklist for involuntary resettlement due diligence report preparation, and an outline of a resettlement plan, which need to be followed in the preparation of these documents. Costs related to land acquisition and resettlement/rehabilitation will be borne by the government. Subprojects that will cause significant involuntary resettlement impacts will not be considered under the project. The following are institutional roles and responsibilities to ensure Resettlement Plans are implemented during design and construction stages: 62. The PMCU will ensure compliance with assurances, including safeguards and preparing and submitting reports, resettlement plan monitoring updates. To ensure effective implementation

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of the land acquisition and resettlement aspects, one full time PMCU social safeguard officer will be recruited, who will be primarily responsible for compliance with legal requirements of the Government and the loan covenants pertaining to social safeguards, and for overseeing PIU preparation of the Resettlement Plan for subprojects. The PMCU will review monthly reports submitted by PIUs and will consolidate them into semi-annual reports to ADB. PMCU will advise PIUs on corrective actions to be taken when necessary based on close monitoring and results of grievance redress process. Roles and responsibilities of the social safeguards officer include:

(i) Ensure subprojects conform to the agreed subproject selection criteria for the project;

(ii) review and finalize subproject involuntary resettlement category; (iii) oversee preparation of resettlement plans, DDRs, confirm existing resettlement

plans, DDRs are updated based on detailed designs, and that new subproject resettlement plans, DDRs are prepared in accordance with the resettlement framework prepared for the project;

(iv) coordinate and ensure issuance of public notice by the Deputy Commissioner for acquiring a land or property for the subproject along with project information and details as well as the project cut-off date;

(v) ensure that resettlement plans, and DDRs are included in the bidding documents and civil works contracts;

(vi) provide oversight on social safeguard management aspects of subprojects and ensure that PIU and contractors implement resettlement plans, and the impact avoidance measures outlined in the resettlement framework, EMP, resettlement plans, and/or DDR;

(vii) facilitate and ensure compliance with all government rules and regulations regarding no objection certificates, third party certificates for negotiated settlement or donation, land ownership, and transfer details for each site, as relevant;

(viii) supervise and guide the PIUs to properly carry out the social safeguard monitoring; (ix) review, monitor, and evaluate the effectiveness with which the resettlement plans

and provisions of DDRs are implemented, and recommend corrective actions to be taken as necessary;

(x) consolidate monthly social safeguard and gender monitoring reports from PIUs and submit semi-annual social safeguard monitoring reports to ADB;

(xi) ensure timely disclosure of final resettlement plans, DDRs in locations and form accessible to the public and affected persons;

(xii) address any grievances brought about through the GRM promptly; (xiii) oversee the assessment of training needs of affected persons and vulnerable

persons by PIUs and/or PDS consultants, coordinate training activities and convergence with the livelihood programs of the government;

(xiv) identify training needs and coordinate training activities for the PIUs, contractors for capacity building to implement the resettlement plans, impact avoidance measures in DDRs, and GRM;

(xv) coordinate database management for social safeguards implementation and monitoring; and

(xvi) coordinate public awareness campaigns by the PIUs including resettlement provisions with the help of print and electronic media.

63. The PIUs will be responsible for carrying out the detailed design of the subprojects and updating resettlement plans and/or DDRs for the sample subprojects and prepare new resettlement plans and/or DDRs for future subprojects under the sector approach. The PIU will ensure compliance with safeguards requirements of the Government and ADB. The PIU will be responsible for day-to-day monitoring of the project progress, including the implementation of the

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resettlement provisions in the project. Each PIU will prepare monitoring reports on all aspects concerning resettlement planning and implementation of the land acquisition and resettlement issues and report to the PMCU monthly. Roles and responsibilities of the social safeguards and gender officer in each PIU include:

(i) engage in ongoing meaningful consultations with stakeholders and affected persons particularly through consultation and participation;

(ii) update the resettlement plans upon the completion of detailed design and submit to PMCU for onward submission to ADB for review, approval and disclosure;

(iii) prepare resettlement plans or DDRs for new subprojects, as needed, with support from the social safeguards specialist of PDS consultants;

(iv) translate and disclose the final resettlement plans and/or DDRs into proper language and forms that are accessible to the affected communities and people;

(v) ensure provision of timely compensation payment and resettlement assistance to the affected persons before displacement and/or impact occurs in sections ready for construction;

(vi) identify independent third party in case of any negotiated settlement and/or land donation and ensure third party certifications as required for each subproject are obtained;

(vii) inform PMCU and ADB of any unanticipated impacts identified during project implementation, prepare the required corrective action plan and implement it;

(viii) undertake meaningful and continuous consultations with affected persons; (ix) ensure implementation of project GRM and all grievances are properly addressed

in a timely manner; (x) conduct regular monitoring and site visits for safeguard compliance of all

subprojects during civil works activities; (xi) implement activities assigned to PIUs in the gender action plan (GAP); (xii) monitor the work of contractors on resettlement and GAP activities; (xiii) submit quarterly social safeguards and GAP monitoring reports to PMCU; and (xiv) maintain safeguard database, GRM records, key gender results and good

practices. 64. The PDS consultants will have two national resettlement specialists (NRS). They will be responsible for updating and/or finalizing the Resettlement Plans of sample subprojects in accordance with the resettlement framework and based on the detailed engineering design. These specialists will also prepare new resettlement plans for future subprojects under the sector approach consistent with the resettlement framework. This will be done in close coordination with PIU resettlement support staff and PMCU resettlement officers. The NRS will assist in the overall supervision of the subprojects and ensure all plans are implemented in a smooth and timely manner in accordance with the provisions of the Resettlement Plan. They will also prepare and implement training and capacity development programs for resettlement planning for the PIU and PMCU safeguards staff. They will also closely work with the PMCU and PIUs to ensure displaced persons are compensated before displacement occurs, including ongoing rehabilitation measures. The NRS will be responsible for the following tasks:

(i) update existing resettlement plans for sample sub-projects during detailed design stage in accordance with resettlement framework;

(ii) prepare a new resettlement plan in accordance with resettlement framework for future subprojects with detailed census surveys of affected persons using existing resettlement plans as a guide for developing new resettlement plans;

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(iii) establish dialogue with the affected communities and ensure that their concerns and suggestions are incorporated and implemented in the project;

(iv) submit all draft resettlement plans to ADB for review and clearance before contract award;

(v) work closely with the PMCU and PIU resettlement officer to implement the resettlement plans (for resettlement plan implementation, the consultant will be specifically responsible for implementation of proposed compensation, rehabilitation, and income restoration measures, consultations with affected persons during rehabilitation activities, and assisting in grievance redress);

(vi) coordinate valuation of land by the valuation committees with close consultation with affected persons at Local Land Registry Office level to finalize the compensation packages;

(vii) guide PIU resettlement officers in providing ID cards to affected persons; (viii) ensure smooth provision of entitlements under each resettlement plan to

affected persons; (ix) provide required training (in-house and on-the-job) to the enumerators and

surveyors to carry out the census survey and work closely with the PMCU and/or PIU resettlement officer to involve them in the project planning from the initial period;

(x) ensure compliance with all Government rules and regulations and ensure the resettlement plan follows ADB’s SPS, 2009;

(xi) lead community consultation during design phase of components and as part of the preparation of the resettlement plan;

(xii) coordinate monitoring of resettlement plan implementation including reporting;

(xiii) prepare resettlement training programs and workshops for the staff of the PIU and contractors and in accordance to the capacity building program;

(xiv) prepare monthly resettlement monitoring reports in collaboration with PIU social officer and submit to PMCU;

(xv) facilitate in responding to any public grievances and keep the record of all the grievance; and

(xvi) assist in any other task assigned by the Team Leader and/or Deputy Team Leader in relevance to effective project implementation.

65. Capacity Building. The PDS consultants’ safeguards experts (environmental and social) will be responsible for training the (i) PMCU’s safeguards officers (environmental and social); and (ii) PIUs’ engineers, environmental and social safeguards focal persons. Training modules will need to cover safeguards awareness and management in accordance with both ADB and government requirements as specified below:

(i) Environmental Safeguards (a) sensitization on ADB’s policies and guidelines on environment including

consultation, GRM and accountability mechanism; (b) introduction to environment and environmental considerations in roads,

drainage and solid waste management subprojects; (c) review of IEEs and integration into the project detailed design; (d) improved coordination within nodal departments; and

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(e) monitoring and reporting system. The contractors will be required to conduct environmental awareness and orientation of workers prior to deployment to work sites.

(ii) Social Safeguards

(a) sensitization on ADB’s policies on involuntary resettlement and indigenous peoples;

(b) introduction to social safeguard assessment and document requirements; (c) consultation and participations requirements; (d) project GRM and ADB’s Accountability Mechanism; and (e) monitoring and reporting system.

66. Prohibited investment activities. Pursuant to ADB’s SPS, 2009, ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the ADB SPS, 2009.34

VIII. GENDER AND SOCIAL DIMENSIONS

67. The project is categorized as effective gender mainstreaming (EGM) and the project components are designed to reducing gender disparities in accessing urban transport, solid waste management, and water supply and sanitation. Opportunities for women’s active involvement and benefits in all project activities have been maximized, based on long-term collaborative practices between LGED and city corporations and pourashavas included in the project. The details of the gender aspects of the project are described in the GAP, which includes component-specific action areas, and a range of evidence-based gender targets and indicators, which build on the good practice and lessons learnt in the design and implementation of the earlier project, especially as this pertains to promoting initiatives targeting destitute women through employment generation and skills development in construction and maintenance. The project will use technical and mechanized construction techniques and is expected to employ at least 20% women as unskilled and semi-skilled workers. Women of different age, economic status and profession will be included in the awareness raising programs and will be employed in the collection and energy conversion process related to solid waste management. Women staff and female community facilitators will be recruited and trained to collect sex-disaggregated database from construction sites, as input to the development of a geospatial database able to track and monitor progress in GAP implementation. At least 30% of the female staff of project municipalities and LGED will receive capacity development training. Timely and effective implementation of the GAP will be monitored by the PMCU, with a full-time social development expert responsible for GAP implementation and periodical reporting to be included in the quarterly progress report (QPR) to be submitted to the ADB. Resources, including consultant services, are allocated for GAP implementation and monitoring.

34 ADB. https://www.adb.org/documents/safeguard-policy-statement.

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Table 17: Gender Action Plan Activities Indicators and Targets Responsibility Timeframe

Output 1: Urban infrastructure in the project areas in the Dhaka and Khulna city regions improved and made climate-resilient

1. Integrate the needs of elderly, women, children, and physically challenged persons and climate resilient features in the designs of the roads.

1. Roads have adequate design features that meet the needs of elderly, women, children, and physically challenged people, including walkways, green spaces beside roads, safe crossings, speed bumps on village roads, and road safety signs for children and pedestrians. [Target: at least 30% of project roads]

PMCU, PIUs, contractors

Year 1 onward

2. Ensure that project-affected women receive fair compensation according to the resettlement framework.

2. All affected women receive fair compensation, preferably into bank accounts in their name or joint accounts in both spouses’ names.

PMCU, PIUs, SSS

Year 1 onward

3. Ensure women’s engagement in the construction with equal pay for work of equal value.

3. Unskilled women employed in unskilled labor in construction works. [Target: at least 20%]

PMCU, PIUs, contractors, SSS

Year 1 onward

4. Ensure compliance with national CLS in construction, especially gender-relevant CLS.a

4. Gender-relevant national CLS clauses included in all bidding documents.

5. Contractors are trained on gender-related CLS clauses. [Target: at least one training per year]

PMCU, PIUs, contractors

Year 1 onward

5. Ensure gender-inclusive associated facilities to be included in the design of the composting plant in KCC.

6. A composting plant with gender-inclusive associated facilities, like sex-segregated wash-blocks and women’s breastfeeding and resting rooms, constructed in the KCC.

PMCU, KCC (PIU), contractors

Year 3 onward

Output 2: Institutional capacity and community awareness strengthened

6. All PMCU and PIUs staff receive training on gender responsive and climate resilient planning, budgeting, resettlement issue, CLSs, the effective implementation of the GAP, and regular sex-disaggregated reporting.

7. All relevant staff including engineers, urban planners, and social safeguards personnel at the PMCU and PIUs receive training. [Target: at least one training per year]

PMCU, PIUs Year 2 onward

7. Train project staff on a range of urban sector related areas.

8. 50 staff of project pourashavas and city corporations, including 15 women, are trained on integrated urban planning, sustainable service delivery, and the operation and maintenance of urban infrastructure. [Target: at least two training per year]

PMCU, PIUs Year 2 onward

8. Ensure women’s engagement in preparation of the solid waste management plan and feasibility study.

9. A detailed feasibility study is prepared for gender inclusive integrated solid waste management facilities in the KCC.

PMCU, KCC (PIU), consultants

Year 2 onward

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Activities Indicators and Targets Responsibility Timeframe

9. Awareness campaigns are conducted on reducing, reusing, and recycling solid waste in the KCC.

10. At least 200,000 people in the KCC, at least 50% of them women, attended awareness campaigns on reducing, reusing, and recycling solid waste.

PMCU, KCC (PIU), consultants

Year 2 onward

10. Women will be employed in the PMCU and PIUs.

11. Women are recruited as support, administrative, and technical staff in PMCU and PIUs. [Target: 20% women]

PMCU, PIUs Year 1 onward

11. GAP monitoring and reporting is budgeted to include: (i) quarterly progress reports; (ii) annual assessment workshop on

GAP implementation status; and (iii) printed materials.

12. Community facilitators, at least 30% of them local women, are employed to cover all project intervention areas.

13. Training is provided for community facilitators on designated deliverables under their terms of reference.

14. GAP progress reports are submitted quarterly with sex-disaggregated data.

15. Resources are allocated for workshops on GAP implementation status.

16. Community facilitators are recruited and trained to collect sex-disaggregated information from construction sites and input data into a geo-spatial database.

PMCU, PIUs, consultants

Year 1 onward

CLS = core labor standard, GAP = gender action plan, KCC = Khulna city corporation, PIU = project implementation unit, PMCU = project management and coordination unit, SSS = social safeguard specialist. a Equal wage for work of equal value, separate toilet facilities and access to water, promotion of women’s occupational safety, protection from sexual harassment, prohibition against discrimination, and prohibition of child labor.

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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework

68. The project design and monitoring framework (DMF) is shown below. Impact the Project is Aligned with Growth potential enhanced and living environment in urban and peri-urban areas improved (7th Five

Year Plan)a

Results Chain Performance Indicators with Targets

and Baselines

Data Sources and Reporting

Mechanisms Risks

Outcome By 2025: Mobility, flood resilience, and solid waste management in the project areas of Dhaka and Khulna city regions improved

a. Travel time on project roads reduced by an average of 30% (2018 baseline: 8.5 km per hour)b

a–d. Quarterly progress reports, semi-annual project-specific monitoring and evaluation reports, Bangladesh Water Development Board data and reports

Change in political leadership in project municipalities could slow down business processes and delay approval and budget allocation for the solid waste management plan

b. Flood inundation period in project areas reduced by 30% during average monsoon (2018 baseline: 7 days in the Dhaka city region and 14 days in the Khulna city region)

c. 2,500 hectares of land protected from flooding during average monsoon (2018 baseline: 0) (RFI A)

d. Solid waste management action plan for Khulna city region approved and implementation budget allocated by KCC (2018 baseline: not applicable)

Outputs By 2024 1. Urban infrastructure in the project areas in the Dhaka and Khulna city regions improved and made climate-resilient

1a. 300 km of urban roads in the Dhaka city region rehabilitated with climate resilient features (2018 baseline: 0) (RFI B)

1a–d. Quarterly progress reports, semi-annual project-specific monitoring and evaluation reports by PMCU and LGED

Climate change and extreme events will undermine timely completion of civil works 1b. 120 km of drains in the Dhaka

city region rehabilitated (2018 baseline: 0)

1c. 30 km of drains in the Khulna city region rehabilitated (2018 baseline: 0)

1d. 1 composting plant with associated gender-responsive facilities constructed and operational in KCC (2018 baseline: not applicable)

2. Institutional capacity and community

2a. Additional priority urban investments of at least $100 million identified and detailed engineering

2a-d: Quarterly progress reports, semi-annual

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Results Chain Performance Indicators with Targets

and Baselines

Data Sources and Reporting

Mechanisms Risks

awareness strengthened

design reports prepared by LGED (2018 baseline: 0)

project-specific monitoring and evaluation reports, and copy of plans prepared 2e. Training reports, pre- and post-assessments 2f: Sample surveys by PMCU and LGED

2b. Drainage master plans for 14 pourashavas prepared or updated (2018 baseline: 7 plans available)

2c. O&M plans including annual budget allocation, for all subprojects prepared and endorsed by all project pourashavas and city corporations (2018 baseline: not applicable)

2d. Inclusive integrated solid waste management plan for KCC prepared and submitted to KCC (2018 baseline: not applicable)

2e. 50 staff (30% women) of project pourashavas and city corporations report increased knowledge on integrated urban planning, sustainable service delivery, and O&M of urban infrastructure (2018 baseline: 0)

2f Awareness campaigns on reducing, reusing, and recycling solid waste in KCC reach at least 200,000 people (at least 50% women) (2018 baseline: 0)

Key Activities with Milestones 1. Urban infrastructure in the project areas in the Dhaka and Khulna city regions improved and

made climate-resilient 1.1 Award civil works contracts for 13 urban roads subprojects in Dhaka city region (Q2 2019) 1.2 Award all civil work contracts for drainage subprojects in Dhaka and Khulna city regions (Q3 2020) 1.3 Award civil works contracts for all remaining urban road projects in the Dhaka city region (Q2 2021) 1.4 Award civil work contract for composting plant and associated facilities in KCC (Q4 2021) 1.5 Complete all physical works (Q4 2023) 2. Institutional capacity and community awareness strengthened 2.1 Launch integrated solid waste management awareness campaign in KCC (Q4 2019) 2.2 Prepare or update drainage master plans (Q1 2020) 2.3 Select additional priority urban investments for project preparation (Q4 2021) 2.4 Prepare detailed feasibility study and engineering design for integrated solid waste management

facilities in KCC (Q2 2021) 2.5 Prepare O&M plans for all subprojects (Q4 2021) 2.6 Prepare detailed engineering designs for selected additional priority investments (Q1 2023) 2.7 Deliver and evaluate training programs and awareness-raising campaigns (Q1 2024) Project Management Activities Recruit all consultants under the project, ensure adequate staff complements and diverse workforce in the PMCU and PIUs, and implement a project performance management system

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Inputs Asian Development Bank OCR: $75 million (regular loan) OCR: $75 million (concessional loan) Government: $73 million

Assumptions for Partner Financing Not Applicable KCC = Khulna city corporation, km = kilometer, LGED = Local Government Engineering Department, O&M = operation and maintenance, OCR = ordinary capital resources, PIU = project implementation unit, PMCU = project management coordination unit, Q = quarter, RFI = results framework indicator. a Government of Bangladesh. 2015. 7th Five Year Plan, FY2016–FY2020: Accelerating Growth, Empowering

Citizens. Dhaka. b ADB. 2018. Preparing the City Region Investment Program. Consultant’s report. Manila. (TA 9283-BAN). Contribution to the ADB Results Framework RFI A: Land improved through irrigation, drainage, and/or flood management. Target: 2,500 ha RFI B: Roads built or upgraded. Target: 300 km Source: Asian Development Bank.

B. Monitoring

69. Project performance monitoring. Within 6 months of loan effectiveness, PMCU and PIUs with support of consultants will establish a project performance monitoring system (PPMS) in line with the targets, indicators, assumptions and risks described in the DMF. The baseline data corresponding to indicators and targets set out in the DMF will be gathered during the detailed design stage within 12 months of loan effectiveness, including disaggregated data by income levels and sex as required. After the initial baseline survey, the PIUs with support of PMCU and consultants will conduct annual survey and quarterly monitoring of indicators and submit the results in quarterly reports to PMCU throughout project implementation. PMCU consolidates the results and submits the quarterly progress report to ADB. The QPR (outline in Appendix 9) will include these indicators and provide information necessary to update ADB's project performance reporting system. 70. Monitoring of Selection Criteria. Performance criteria, including tax collection and citizen participation, will be monitored by PMCU and reported to the project steering committee and in the QPR. Selection of additional subproject as well as replacement of any subproject will be submitted by PMCU to ADB for no objection before appropriation of funds under the project.

71. Compliance monitoring. Status of compliance with loan covenants including that related to policy, legal, financial, economic, environmental, and others, will be monitored and reported by PIUs to PMCU through the QPRs, which will be consolidated and submitted to ADB by PMCU. PMCU on behalf of LGED and PIUs will monitor and ensure compliance with loan covenants and assurances. All non-compliance issues, if any, will be updated in the QPRs together with remedial actions. Project steering committee and ADB review missions will also monitor the status of compliance with loan covenants and raise the noncompliance issues with the Economic Relations Division and the Ministry of Local Government, Rural Development, and Cooperatives and agree on remedial actions. 72. Safeguards monitoring. The PMCU will submit separate semi-annual environmental and social safeguards monitoring reports to ADB, which will be reviewed and disclosed on ADB’s and project’s websites. The status of safeguard implementation, issues, and corrective actions including associated cost and schedule are to be clearly reported to ADB. The status of safeguards implementation will also be discussed at each ADB review mission and with necessary issues and agreed actions recorded in aide memoires. The outline of the semi-annual

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environmental monitoring report is in Appendix 7 and the outline of the semi-annual social safeguards monitoring report is in Appendix 8. ADB will also carry out annual environmental and/or social (including gender) reviews of the project. 73. Gender and social dimensions monitoring. The progress of GAP implementation will be closely reviewed and monitored by PIUs and PMCU and incorporated in the QPRs. Sex disaggregated database will be developed, and data regularly updated during implementation. The evaluation of GAP implementation will be carried out as part of benefit monitoring. Core labor standards, including equal wage for women and men for work of equal value, will be closely monitored. PMCU will ensure GAP issues are reflected in monitoring and evaluation formats and reports. The PIUs and PMCU with the support of PDS consultants and an individual gender consultant PMCU will ensure PIUs are oriented and trained adequately on GAP to produce accountability.35 C. Evaluation

74. The project will be regularly evaluated based on the PPMS indicators. For all indicators, data sources and reporting mechanisms outlined in the DMF will be basis for evaluation including project-specific monitoring and evaluation surveys to be submitted in a consolidated report from PIUs. The PPMS will aim to detect any deficiency and discrepancy between the plan and the execution of the project to ensure that timely corrections can be made to adjust the design of the project. The monitoring team will evaluate the causes of any deficiency and discrepancy between the plan and the execution of the PPMS, propose corrective measures, and seek policy guidance from the Project Steering Committees, if still unresolved. 75. The LGED and ADB will jointly review the project at least twice a year. This includes (i) the performance of the PMCU, PIUs, consultants, and contractors; (ii) physical progress of the project, effectiveness of safeguards, and implementation of the GAP and core labor standards; (iii) compliance with loan covenants; and (iv) assessment of operational sustainability in technical and financial terms. In addition to the regular loan reviews, the government and ADB will undertake a comprehensive midterm review in the third year of project implementation to identify problems and constraints encountered and suggest measures to address them. Specific items to be reviewed will include (i) appropriateness of scope, design, contract packaging, implementation arrangements, and schedule of activities; (ii) review of institutional, administrative, organizational, technical, and financial aspects of the project based on the assumptions and risks included in the DMF; (iii) assessment of implementation progress against project indicators; (iv) governance improvement and capacity development of PIUs for ensuring sustainability; (v) compliance with safeguard measures; (vi) extent to which the GAP is being implemented; (vii) lessons learned, good practices, and corrective actions; and (viii) changes recommended. Within 6 months of physical completion of the project, LGED will submit a project completion report to ADB. D. Reporting

76. The LGED will provide ADB with (i) QPRs (outline in Appendix 9) 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

35 ADB. 2012. Handbook on Poverty and Social Analysis: A Working Document; ADB. 2012. Strengthening Participation

for Development Results: An Asian Development Bank Guide to Participation; and ADB. 2008. CSO Sourcebook: A Staff Guide to Cooperation with Civil Society Organizations.

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implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed. 77. The PIU will provide PMCU with the QPRs, including (i) utilization of fund; (ii) progress of procurement and contract awards; (iii) physical progress measured by output and outcome indicators in accordance with the DMF; (iv) progress on GAP implementation; (v) compliance with covenants, including safeguard measures; and (vi) key implementation issues and solutions. The PIUs will also provide environmental and social safeguards monitoring reports to PMCU on quarterly basis. Updates on the schedule of consultations (Appendix 10) will be included in the monitoring reports. 78. The PMCU will provide ADB with the following reports, consolidating activities of all subprojects:

(i) QPRs in a format consistent with ADB's project performance reporting system and including (a) utilization of fund, (b) progress of procurement and contract awards, (c) physical progress measured by output and outcome indicators in accordance with the DMF, (d) progress on GAP implementation, (e) compliance with covenants, and (f) key implementation issues and solutions (QPR for social safeguards will follow the outline in Appendix 8);

(ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months;

(iii) semi-annual environmental and social safeguards monitoring reports, consolidating the safeguards monitoring reports submitted by the PIUs; and

(iv) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

79. The PMCU will prepare a stakeholder communication strategy and submit to ADB for review by the end of the first quarter after loan effectiveness. The strategy will follow ADB’s Public Communications Policy 2011. The PMCU will ensure that all communication is in language understood by the specific audience. The stakeholder communication strategy will be based on a stakeholder analysis and will incorporate the following components:

(i) Compilation of stakeholder communication activities undertaken so far, including gender-disaggregated data on participants, minutes of meetings and photographs;

(ii) role of the PMCU and PIUs in coordinating and communicating with government or institutional stakeholders;

(iii) public communication plan for disseminating project related information (a) to the public, particularly those who may be impacted by the proposed projects; (b) to communities facing loss of common property resources; and (c) to vulnerable groups, particularly regarding the project’s social inclusion policy and how to avail benefits under the project;

(iv) public awareness, preparation and participation plan for residents of Khulna as a preparatory activity during design of the solid waste management project;

54

(v) disclosure of social safeguards and environment monitoring reports and any updated resettlement plans and IEEs in the ADB and PMCU websites and to affected persons and local non-government organizations and/or community-based organizations, in local language; and

(vi) other communication arrangements at the local community level including through notice boards, newspapers, local radio stations and cable television, etc.

X. ANTICORRUPTION POLICY

80. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.36 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of LGED and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.37 81. To support these efforts, relevant provisions are included in the loan agreement and the bidding documents for the project. All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and implementing agencies and all project contractors, suppliers, consultants and other service providers. The government, LGED and implementing agencies are advised of ADB’s Anticorruption Policy.

XI. ACCOUNTABILITY MECHANISM

82. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should try in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.38

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

83. All revisions and/or updates during implementation should be retained in this section to provide a chronological history of changes to implemented arrangements recorded in the PAM, including revision to contract awards and disbursement s-curves.

36 ADB. 1998. Anticorruption Policy. 37 Anticorruption and Integrity. 38 Accountability Mechanism.

Appendix 1 55

APPENDIX 1: SUBPROJECT SELECTION CRITERIA A. Geographical Eligibility 1. Subprojects located in the following areas shall be eligible:

(i) Dhaka city region (a) Gazipur city corporation; (b) Pourshavas: Savar, Dhamrai, Manikganj, Narsingdi, Kanchon, Kaliakoir,

Singair, Sonargaon, and Tarabo; and (c) Urban centers in the following Upazilas: Bandar, Dhamrai, Gazipur Sadar,

Kaliakoir, Kaliganj, Keraniganj, Narayanganj Sadar, Rupganj, Savar, Sonargaon, and Sreepur Araihazar.

(ii) Khulna city region

(a) Khulna city corporation; (b) Pourashavas: Chalna, Jessore, Jhikargacha, Mongla, and Nowapara; and (c) Urban centers in the following Upazila: Batiaghata, Bagherpara, Bagerhat,

Chitalmari, Chowgacha Dacope, Dighalia, Dumuria, Fakirhat, Jhikargacha, Kachua, Keshapbur, Koyra, Mollahat, Mongla, Monirampur, Morrelganj, Paikgacha, Phultala, Rampal, Rupsa, Sarsha, Sharankhola, and Terokhada.

B. Eligible Subprojects 2. Subprojects eligible for investment include the following:1

(i) Urban Transport. (a) Extension and rehabilitation of roads, sidewalks, junctions, bridges, river ports, and terminals; (b) procurement and installation of energy-efficient and solar-powered street lights; and (c) procurement of construction, maintenance, traffic management, and road-safety equipment.

(ii) Drainage. (a) Extension and rehabilitation of drains and canals; (b) dredging and re-excavation of drains, canals and rivers; (c) facilities for regulation and control; and (d) procurement of equipment for maintenance.

(iii) Solid Waste Management. (a) Procurement of collection, storage and disposal equipment for solid waste management; and (b) facilities and equipment to process and dispose solid wastes.

(iv) Community Mobilization and Awareness Campaign. Activities for community mobilization and awareness campaign, which are associated with eligible physical works.

(v) Surveys and Studies. Feasibility studies, master plans, and other preparatory studies and surveys including detailed engineering designs for the eligible subsectors listed in (i) to (iv).

C. General Selection Criteria 3. All subprojects should meet the following general criteria:

(i) The subproject contributes to improvement of urban environment and stimulation of local economic activities.

1 Potential safeguard category A subprojects will be excluded from implementation under the project.

56 Appendix 1

(ii) The subproject is consistent with Dhaka Structure Plan or Khulna Development Authority Plan and contributes to coherent regional development. Subproject shared by multiple municipalities will be given priority.

(iii) The design of the subproject will ensure adopting the least-cost approach, both in respect of capital, as well as operations and maintenance (O&M) costs, keeping in view achievement of the pertinent objective(s) and without compromising on quality.

(iv) The subproject avoids and minimizes (limits) involuntary resettlement. It does not: (a) result in labor retrenchment or encourage child labor; or (b) directly or indirectly contribute to the spread of HIV/AIDS, human trafficking, or the displacement of girls and women.

(v) The subproject avoids any impacts to indigenous peoples’ communities. (vi) The subproject will be prepared in accordance with the safeguard requirements of

the Asian Development Bank (ADB), including the environmental assessment and review framework and the resettlement framework. Implementation of any Category A subproject with diverse, irreversible or unprecedented significant impacts to environment, resettlement, and indigenous peoples will be excluded.

(vii) An economic internal rate of return (EIRR) is calculated for the subproject in accordance with ADB guidelines.2 The subproject will need to register an EIRR at least 9% with economic benefits quantified based on reliable data.

(viii) A subproject appraisal report is prepared based on the feasibility study, including technical, economic, financial, environmental, and social assessment. Technical assessment confirms that the design is the least-cost alternative in achieving its objectives. Financial assessments confirmed sufficient tariff revenues or other funding sources to cover O&M costs and debt services, if any.

(ix) Responsibility for O&M of assets and facilities created is clearly defined and an O&M plan, with adequate budget provision, is prepared. If O&M of the facilities and services are outsourced, a clear plan needs to be drawn.

(x) The cost of subproject is at least $3 million for city corporations, $2 million for pourashavas, and $1 million for urban centers. Innovative pilot subprojects in the eligible subsectors may be considered even below the threshold. The subproject does not have any funding source(s) other than the project.

(xi) The proposals for subproject feasibility study have been approved by the Local Government Engineering Department (LGED).

(xii) PIU is established and adequately staffed. Memorandum of Understanding has been signed among LGED, implementing agency, and other entities concerned for implementation and operation of the subproject.

D. Governance Performance Criteria 4. City corporations and pourashavas acting as implementing agency shall comply the

following governance performance criteria before selection of any subproject: (i) Pourashava:

(a) keeping regular meeting of the citizen committees (Town Level Coordination Committee and Ward Coordination Committee) in accordance with Pourashava Act (2009) with minimum 30% representation of women and the poor;

2 ADB. 1998. Guidelines for the Economic Analysis of Water Supply Projects; and ADB. 2017. Guidelines for the

Economic Analysis of Projects.

Appendix 1 57

(b) computerized accounting and tax record system introduced and kept functional;

(c) regular assessment of holding tax done in 5-year intervals and holding tax collection efficiency3 of at least 65% in the most recent closed fiscal year before procurement for first subproject can begin. Commitment to increase collection efficiency by at least 5% annually for future fiscal years (85% collection efficiency by the last fiscal year of the implementation period);4 and

(d) ensuring recruitment of a full-time urban planner (for class A pourashavas). (ii) City corporation

(a) computerized accounting and tax record system introduced and kept functional;

(b) regular assessment of holding tax done at 5 years’ intervals and holding tax collection efficiency at least 65% in the most recent closed fiscal year before procurement for first subproject can begin. Commitment to increase collection efficiency by at least 5% annually (up to 85% collection efficiency during project implementation period) for future fiscal years;5 and

(c) key officials in urban planning section recruited. E. Sector Specific Criteria 5. Subprojects shall comply with the following sector specific criteria:

(i) Urban Transport (a) A basic traffic survey has been carried out, and the subproject is designed

in line with the survey results and projected future traffic. Prioritization criteria for urban road subprojects shall consist of (i) connectivity to other key roads, (ii) number of households served, (iii) travel time saved, and (iv) existing road condition.

(b) The subproject is expected to have direct impacts to stimulate local economic activities.

(c) The subproject is designed in a consistent manner with existing government strategies and plans.

(ii) Drainage

(a) Drainage subprojects should be supported by a comprehensive drainage master plan (if present). Should such plan be unavailable, such would need to be prepared under the project. In any case drainage schemes proposed will need to be ascertained in respect of their need, appropriateness, and their compatibility with the overall drainage network and presence of well-defined outfall.

(b) Priority shall be given to (i) primary drains, followed by secondary drains; (ii) drains located in commercial areas, followed by residential areas; and (iii) drains that involve rehabilitation.

(c) The subproject is accompanied with awareness campaign to avoid dumping of wastes into drains. The subprojects are preferably implemented

3 Collection efficiency is defined as the collection during the reporting period as a percentage of outstanding arrears

from previous period plus amount accrued during the reporting period 4 The pourashava is required to prepare a timebound action plan to achieve the 85% collection efficiency target. 5 The city corporation is required to prepare a timebound action plan to achieve the 85% collection efficiency target.

58 Appendix 1

in parallel with a solid waste management project, supported by the project or other funding sources.

(iii) Solid Waste Management (a) The implementing agency has formally committed to introduce user charge

for collection of solid wastes. Simultaneously, an ‘ability to pay’ survey establishes that such charges are pragmatic and affordable;

(b) Solid waste management facilities are designed consistent with the Environmental Rules of the government, ADB Safeguard Policy Statement, 2009 and World Bank’s Environmental Health and Safety Guidelines on Waste Management Facilities.

(c) In case of composting plant, a study needs to be conducted to establish sustainability and marketability of the relevant products.

(d) In accordance with the national reduce, reuse, and recycle strategy, waste will be segregated at source as appropriate and practical, and collected separately, so that recycling will be achieved optimally, and landfilling of organic waste be minimized to avoid methane gas generation and extend the service life of landfills.

(e) The subproject is accompanied with awareness campaign for reduce, reuse, and recycle.

F. Key Design Considerations for Infrastructure 6. Salient design considerations of the project build upon the current design practices in

Bangladesh including those of the projects implemented and under implementation in an urban setting.

Appendix 2 59

APPENDIX 2: PROJECT CLIMATE RISK AND FINANCING CALCULATION

Project component

Link to Climate Risks Identified in the Project Climate Risk Assessment and Management Reporting

Total Costa

Qualifying Costs

Total

Non-Qualifying

Costs ADB

Funding Counterpart

Funding

Output 1: Urban infrastructure in the project areas in the Dhaka and Khulna city regions improved and made climate-resilient (civil works, equipment, consultancy services)

Climate risks for subprojects vary from medium to high and risk topics include (i) increased temperature, (ii) increased intensity of precipitation and storm events, and (iii) sea level rise. Given the increased frequency and intensity of rainfall and flood events, engineering designs have incorporated mechanisms to inherently respond to climate risk impacts.

To safeguard subproject structures against identified climate risks, engineering measures will include (i) roads to be at minimum 600 millimeter higher than highest flood levels, (ii) heat resilient materials for bitumen carpeting of roads, (iii) reinforced cement concrete roads for water logged areas with temporary inundation, (iv) permeable pavement such as uni-block road to infiltrate storm water and reduce surface run-off, (v) roadside drainage and cross drainage for increased rainfall amount and intensity, (vi) adequate compaction for earth work, (vii) slopes to be protected by concrete block with geotextile protection underneath, (viii) slope turfing by suitable grasses, (ix) road side tree plantation, (x) additional free-board allowance to design parameters for drain depth, (xi) re-excavation/dredging of congested natural drainage systems and outlets, (xii) green or concrete block slope protection of channels, and (xiii) landscaping for absorbing excess water run-off.

Additional adaptation measures incorporated in project design may include among others (i) consideration of materials with high temperature resistance; (ii) adequate compaction for earth work; (iii) drain heights with increased water retention holes at the bottom and additional freeboard; (iv) integrated urban flood management system to be designed with enhanced capacity of drainage, and compartmentalization of drainage network; (v) establishment or enlargement of retention ponds, lakes or other water reservoirs for storm water retainment; and (vi) sufficient open space with plantations allowing rain water to percolate to the ground and replenish ground water.

(a) Dhaka city region roads (Gazipur city corporation, Savar, Rupganj) 86.5 20.0 6.1 26.1 60.4

(b) Dhaka city region roads (Araihazar) 20.7 4.8 1.4 6.2 14.5

(c) Khulna solid waste management 7.7 2.5 0.7 3.2 4.5

60 Appendix 2

Project component

Link to Climate Risks Identified in the Project Climate Risk Assessment and Management Reporting

Total Costa

Qualifying Costs

Total

Non-Qualifying

Costs ADB

Funding Counterpart

Funding

(d) Drainage 28.4 7.1 2.1 9.2 19.2

(e) Project design and supervision consultants (first team) consider climate and disaster risks in detailed engineering design

5.9 0.6 0.2 0.8 5.1

Subtotal 1 149.2 35.0 10.5 45.5 103.7

Output 2: Institutional capacity and community awareness strengthened (consultancy services)

This component includes preparation of (i) detailed engineering design including climate resilient principles for future priority urban investments; (ii) preparation of drainage master plans; (iii) preparation of operation and maintenance plans for infrastructure provided under the project; (iv) training of project staff to incorporate climate change resilience approaches and procedures when undertaking safeguards due diligence; and (v) capacity building on climate change risks, vulnerabilities, mitigation and adaption options will be provided, as necessary during project implementation. Regular operation and maintenance activities and equipment inspections will be carried out for all subprojects to help mitigate damage and ensure continuous operations as well as fast recovery after disaster events.

(a) Project design and supervision consultants (second team) consider climate and disaster risks in detailed engineering design for future investments and support preparation or update of drainage master plans in 14 pourashavas.

6.9 0.7 0.3 1.0 5.9

(b) Institutional and community capacity development support training and awareness campaigns.

3.0 0.3 0.1 0.4 2.6

(c) Individual consultants provide specific climate related inputs to detailed engineering designs and support training activities.

2.8 0.2 0.1 0.3 2.5

Subtotal 2 12.7 1.2 0.5 1.7 11.0

Physical contingencies Subtotal 3 7.7 0.8 0.2 1.0 6.7

TOTAL Subtotal 1+2+3 169.6 37.0 11.2 48.2 121.4

ADB = Asian Development Bank. a Only applicable base costs and physical contingencies have been considered in the calculation.

Appendix 3 61

APPENDIX 3: PROCUREMENT PLAN

Basic Data Project Name: Second City Region Development Project

Project Number: P49329-006 Approval Number:

Country: BANGLADESH Executing Agency: Local Government Engineering Department (LGED)

Project Procurement Classification: B Implementing Agency: LGED; city corporations; pourashavas Procurement Risk: Moderate

Project Financing Amount: $223 million ADB Financing: $150 million

Project Closing Date: 31 December 2024

Date of First Procurement Plan: 24 May 2018 Date of this Procurement Plan: 10 July 2019

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

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

Procurement of Goods and Works Method Threshold Comments

International Competitive Bidding for Goods

US$ 2,000,000 and Above

National Competitive Bidding for Goods Between US$ 100,000 and US$ 1,999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Goods Up to US$ 99,999 International Competitive Bidding for Works US$ 15,000,000 and Above National Competitive Bidding for Works Between US$ 100,000 and US$

14,999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Works Up to US$ 99,999

Consulting Services

Method Comments

Quality and Cost Based Selection (QCBS) Quality-Cost Ratio 90:10, ADB’s prior review

Single Source Selection for Individual Consultant ADB’s prior review

62 Appendix 3

2. Goods and Works Contracts Estimated to Cost $1 Million or More The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

Araihazar/ LGED/ W-01

Improvement of roads (Binairchar to Kamrangir Char; Fakirbari to Kamrangirchar; Bagbari to Nowagoan; and Mukundi to Araihazar)

2,880,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: reviewed as first eGP Bidding Documents

Araihazar/ LGED/ W-02

Improvement of roads (Govt. Safar Ali College to Araihazar Upazilla Parishad; RHD Araihazar bazar-Araihazar Purinda; Laskardi to Langardi Bazar; Kalibari Bazar to Panchrukhy; Duptara to BuntimPullah)

4,940,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Araihazar/ LGED/ W-03

Improvement of roads (Araihazar to Purinda bazar; Nowdha –Charigram; Noapara –Abdullahpurvia Bailakandi)

3,690,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Araihazar/ LGED/ W-04

Improvement of roads (Gopaldi GC to Mollarchar RHD; and Uchitpura GC to Gopaldi GC)

4,180,000.00

NCB Prior 1S1E Q2 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N

Appendix 3 63

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Araihazar/ LGED/ W-05

Improvement of roads (Uzangobindirmorh to Fausha; Kalibari Dewanpara to Bashtala Ghat link to Manehar Madrasha; Kalibari to Monohordi; Duptara RHD to Panchrukhi)

2,200,000.00

NCB Post 1S1E Q2 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Chalna/ W-01

Drainage Improvement of Chalna Pourashava

1,930,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Dhamrai/ W-01

Drainage Improvement of Dhamrai Pourashava.

1,970,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

GCC/W-01 Improvement of road (ShahidNiamat road, Aambagh Municipal road, IUT to Icharkandiand Signboard to Kamarjuri road)

9,200,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works

64 Appendix 3

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

e-GP: Yes e-GP Type: e-Bidding

GCC/W-02 Improvement of road (Jarunroad, East Enayetpur road and Bhabanipur to Mother Textile road)

4,520,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

GCC/W-03 Improvement of road (Gachha road, and Shah Alam-bari road)

3,360,000.00

NCB Prior 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Jessore/ W-01

Drainage improvement of Jessore Pourashava including improvement of Central Bus Terminal of Jessore

2,550,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Jhikorgacha/W-01

Drainage Improvement of Jhikorgacha Pourashava.

1,910,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Appendix 3 65

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

Kaliakoir/ W-01

Drainage Improvement of Kaliakoir Pourashava.

1,900,000.00

NCB Post 1S1E Q1 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Kanchon/ W-01

Drainage Improvement of Kanchon Pourashava.

1,720,000.00

NCB Post 1S1E Q1 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

LGED/ Goods/G-06

Procurement of batch type Asphalt plant including Generator, bitumen reservoir etc.

1,970,000.00

ICB Prior 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Goods e-GP: No

LGED/ Goods/G-07

Equipment for PIUs, incl 9 Road Rollers; 6 soil compactors; 6-wheel loader; 9 dump trucks

3,760,000.00

ICB Prior 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Goods e-GP: No Comments: Road roller: min. 10 tons; soil compactor min. 8 tons; wheel loader min. 15 tons; dump truck min. 5 tons

66 Appendix 3

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

Manikganj/ W-01

Drainage Improvement of Manikganj Pourashava.

2,530,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Mongla/ W-01

Drainage Improvement of Mongla Port Pourashava

2,170,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Narsingdi/ W-01

Drainage Improvement of Narsingdi Pourashava

2,510,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Nowapara/ W-01

Drainage improvement of Nowapara Pourashava

2,610,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Rupganj/ LGED/W-01

Improvement of roads (Rupshi GC-Kanchan GC)

15,020,000.00

NCB Prior 1S1E Q1 / 2019 Prequalification of Bidders: N

Appendix 3 67

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes Comments: NCB as estimated value is close to NCB threshold, no critical work is involved, and package type is similar nature of NCB road works packages.

Rupganj/ LGED/W-02

Improvement of roads (Kanchan GC-Sorankhali bazar Chanpara RHD; Kanchan GC – Atlapur Bazar – Danga RHD Road; and Sornokhali Bazar – Bolabo UP)

6,910,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Rupganj/ LGED/W-03

Improvement of roads (Rupshi-Kanchon GC to Dogarkhal; Tarabo GC – Rupshi Bazar; Borpa RHD – Mohajampur UP road and Murapara GC-Mohishvita - RHD road)

4,790,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Savar/ LGED/W-01

Improvement of road (Jahangir Nagar-Bhasani Hall-Daskhin Sinduria; Kaliakoir-Chakula; and Dhaka Aricha HighwaySavar UP road)

4,620,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes

68 Appendix 3

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

e-GP Type: e-Bidding

Savar/ LGED/W-02

Improvement of road (Nayarhat GC-Savar GC, Dairy Farm Gate - Pathalia UP and other roads)

8,210,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Savar/LGED/W-03

Improvement of road (Kornapara-Nama Genda road, Shadhapur-Bongaon UP road. Shadhapur-Goperbari Razashon Bridge road)

5,930,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Savar/ LGED/W-04

Improvement of road (Balivadra GC-Dhamshona UP-Simulia UP; and Nabinagar-Kaliakoir RHD)

3,510,000.00

NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Savar/ LGED/W-10

Construction of 120.00m Bridge at Ch.1825m on Boliarpur Bazar – Bangaon UP – Chakulia Bazar Road

2,150,000.00

NCB Post 1S1E Q1 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Savar/ Pou/W-01

Improvement of roads in Savar

3,890,000.00

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

Appendix 3 69

Package Number

General Description

Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

Pourashava

Domestic Preference Applicable: N Advance Contracting: Y Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Singair/W-01 Drainage Improvement of Singair Pourashava.

2,060,000.00

NCB Post 1S1E Q1 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Sonargaon/W-01

Drainage Improvement of Sonargaon Pourashava

2,120,000.00

NCB Post 1S1E Q1 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

Tarabo/ W-01

Drainage Improvement of Tarabo Pourashava

2,440,000.00

NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding

70 Appendix 3

3. Consulting Services Contracts Estimated to Cost $100,000 or More The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Package Number General Description

Estimated Value

Recruitment Method

Review (Prior/ Post)

Advertisement Date

(quarter/year) Type of

Proposal Comments LGED/S-02 Second Preparation,

Design and Supervision (PDS-2) Consultant: Firm

6,850,000.00 QCBS Prior Q2 / 2019 FTP

Assignment: International Quality-Cost Ratio: 90:10 Advance Contracting: Y e-GP: No

LGED/S-03 Institutional Capacity and Community Development (ICCD) Consultants: Firm

2,990,000.00 QCBS Prior Q2 / 2019 FTP

Assignment: National Quality-Cost Ratio: 90:10 Advance Contracting: Y e-GP: No

LGED/ S-04a

Institutional Capacity Development Specialist International Individual Consultant

400,000.00 ICS Prior Q3 / 2019

Assignment: International Expertise: institution capacity development Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 12PM (Intermittent); Service period: Q1/2020 –Q2/2024

Appendix 3 71

Package Number General Description

Estimated Value

Recruitment Method

Review (Prior/ Post)

Advertisement Date

(quarter/year) Type of

Proposal Comments LGED/ S-04b

Integrated Urban Drainage Specialist International Individual Consultant

400,000.00 ICS Prior Q3 / 2019

Assignment: International Expertise: urban drainage Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 12PM (Intermittent); Service period: Q1/2020 –Q2/2024

LGED /S-04c

Integrated Urban Transport Specialist International Individual Consultant

400,000.00 ICS Prior Q3 / 2019

Assignment: International Expertise: urban transport Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 12PM (Intermittent); Service period: Q1/2020 –Q2/2024

LGED/ S-04d

Solid Waste Management Specialist International Individual Consultant

400,000.00 ICS Prior Q3 / 2019

Assignment: International Expertise: waste management Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 12PM (Intermittent); Service period: Q1/2020 –Q2/2024

72 Appendix 3

Package Number General Description

Estimated Value

Recruitment Method

Review (Prior/ Post)

Advertisement Date

(quarter/year) Type of

Proposal Comments LGED/ S-04e

Urban Planner International Individual Consultant

400,000.00 ICS Prior Q3 / 2019

Assignment: International Expertise: urban planning Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 12PM (Intermittent); Service period: Q1/2020 –Q2/2024

LGED/ S-05a

Municipal Governance Specialist: National Individual Consultant

100,000.00 ICS Prior Q3 / 2019

Assignment: National Expertise: municipal governance Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 12PM (Intermittent); Service period: Q1/2020 –Q2/2024

Appendix 3 73

Package Number General Description

Estimated Value

Recruitment Method

Review (Prior/ Post)

Advertisement Date

(quarter/year) Type of

Proposal Comments LGED/ S-05b

Monitoring & Evaluation Specialist National Individual Consultant

290,000.00 ICS Prior Q3 / 2019

Assignment: National Expertise: monitoring and evaluation Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 50PM (Intermittent); Service period: Q1/2020 –Q2/2024, estimated value: $70,000.00

LGED/ S-05c

Social Safeguard Specialist National Individual Consultant

140,000.00 ICS Prior Q3 / 2019

Assignment: National Expertise: social safeguards Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 24PM (Intermittent); Service period: Q1/2020 –Q2/2024

74 Appendix 3

Package Number General Description

Estimated Value

Recruitment Method

Review (Prior/ Post)

Advertisement Date

(quarter/year) Type of

Proposal Comments LGED/ S-05d

Environment Safeguard Specialist National Individual Consultant

140,000.00 ICS Prior Q3 / 2019

Assignment: National Expertise: environmental safeguards Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 24PM (Intermittent); Service period: Q1/2020 –Q2/2024

LGED/ S-05e

Gender Specialist National Individual Consultant

140,000.00 ICS Prior Q3 / 2019

Assignment: National Expertise: gender Advance Contracting: N e-GP: No Comments: Competitive recruitment process through ICS; Total Input: 24PM (Intermittent); Service period: Q1/2020 –Q2/2024

Appendix 3 75

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

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

Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

CRDP/ LGED/ G-04

Office eqpt, acc & other necessary items for PMCU, PIUs & other project offices - 20 computers, 20 photocopiers, 20 MM/ AV eqpt incl laptops, 20 VC eqpt

390,000.00 4 SHOPPING Post Q1 / 2020 Advanced Contracting: N

CRDP/ LGED/ Goods/ G-01

Procurement of pick up trucks of PMCU, PIUs, and other project offices, 10 nos.

600,000.00 1 ICB Prior 1S1E Q1 / 2020 Prequalification of Bidders: N Domestic Preference Applicable: N Advanced Contracting: N Bidding Document: Goods

CRDP/ LGED/ Goods/ G-02

Procurement of Motor bike for PMCU, PIUs, and other project offices, 25 nos.

80,000.00 1 SHOPPING Post Q1 / 2020 Advanced Contracting: N

CRDP/ LGED/ Goods/ G-03

Procurement of office stationery, office furniture, other necessary items and expenses for regular operation & maintenance for PMCU, PIUs

180,000.00 4 SHOPPING Post Q1 / 2020 Advanced Contracting: N Comments: in multiple contracts over the project period

76 Appendix 3

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

Goods and Works

Package Number General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure Comments

Araihazar/ LGED/W-06

Improvement of roads (BoroBinarchar RHD to Pakundia Bridge; Probhakardi RHD to Farida Bazar; Bialapara GC to EidBardi RHD; Monohordi to Laskardi Bazar Road; and Fausha Bazar to Tilchandi Bazar)

2,810,000.00 1 NCB Prior 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

KCC/G-01 Procurement of garbage trucks for SWM including setting up small transfer stations

100,000.00 1 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods e-GP: No Comments: Q4/2020

KCC/G-02 Procurement of two compartment Rickshaws (428 nos.) under SWMP, for Khulna CC

30,000.00 1 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods e-GP: No Comments: Q1/2021

Appendix 3 77

Goods and Works

Package Number General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure Comments

KCC/G-03 Procurement of Uniforms for SWM workers (856 sets) under SWM for KCC

10,000.00 1 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods e-GP: No Comments: Q1/2021

KCC/G-04 Procurement of various equipment for SWM of KCC

80,000.00 4 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods e-GP: No Comments: Q1/2021

Lot 1: 1 unit lathe, 2 units hydraulic jack wheeled, 4 units mechanic work tables

10,400.00

Lot 2: 1 unit mobile lift rated 1000kg; 4 sets combination wrenches 7mm-24mm; 1 no. shredder

7,700.00

Lot 3: 1 set turning, sieving, bagging machine, quality control equipment; 1 set shovel, gloves, buckets etc; 2 units aerator

11,250.00

Lot 4: 2 units weighbridge (20 ton capacity) including installation with civil works; misc items

50,650.00

KCC/W-01 Construction of Composting Plant and associated facilities in KCC including approach road at KUET

7,660,000.00 1 NCB Prior 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

78 Appendix 3

Goods and Works

Package Number General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure Comments

LGED/ GOODS/G-05

Procurement of municipal equipment including accessories for distribution to KCC and other selected urban areas - multiple Lots of contract, such as: a) Excavator (wheel type) - 4 nos. b) Bulldozer (Chain type) - 2 nos. c) Compactor dozer - 2 nos.

2,980,000.00 8 ICB Prior 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods e-GP: No Comments: Q4/2020

Lot 1: Excavator (2 no.)

340,000.00

Lot 2: Bulldozer (2 no.)

340,000.00

Lot 3: Compactor dozer (2 no.)

424,000.00

Lot 4: 12m3 compactor truck (2 no.)

435,600.00

Lot 5: 10.5m3 compactor unit (2 no.)

394,000.00

Lot 6: Hook lift trucks (1 no.)

208,700.00

Lot 7: 20m3 container (1 no.)

334,000.00

Lot 8: Dump truck with Vacuum tanker (2 no.), Tipper truck (2 no.), Backhoe wheel loader with multiple attachments (1 no.), Garbage collection trucks (4 no.)

503,700.00

Rupganj/ LGED/W-04

Improvement of roads (Rupganj Deboi – Beldi bazar – Kaligonj road; and Porshi GC – Murapara GC via Rupganj road)

2,950,000.00 1 NCB Prior 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

Appendix 3 79

Goods and Works

Package Number General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure Comments

Savar/ LGED/W-05

Improvement of road (Bangobandhu road at RHD Miabarimorh to Baliarpur; and Sadullahpur Bazar to Chakulia Bazar)

4,240,000.00 1 NCB Prior 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

Savar/ LGED/W-06

Improvement of road (Dhaka Aricha RHD at 22 Mile – Shimulia GC via Nolam, Zirani Bazar-Shimulia GC road)

2,200,000.00 1 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

Savar/ LGED/W-07

Improvement of road (Sataish Kandi at Turag river bank to Zirabo via Toyebpur-Yearpur)

1,100,000.00 1 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

80 Appendix 3

Goods and Works

Package Number General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure Comments

Savar/ LGED/W-08

Construction of 125.00m Bridge at Ch.4700m on Zirani Bazar to Shimulia GC road)

1,870,000.00 1 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

Savar/ LGED/W-09

Construction of 150.00m Bridge at Ch.00m on Saitsh Kandi at Turag River bank to Zirabo via Toyebpur–Yearpur

2,030,000.00 1 NCB Post 1S1E Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Small Works e-GP: Yes e-GP Type: e-Bidding Comments: Q4/2020

Completed Contracts

Goods and Works

Package Number

General Description

Estimated Value

Contract Value

Procurement Method

Advertisement Date

(quarter/ year)

Date of ADB

Approval of

Contract Award

Date of Completion

Comments

Consulting Services

General Description Estimated

Value (cumulative)

Estimated Number of Contracts

Recruitment Method

Comments

Appendix 3 81

C. Non-ADB Financing The following table lists goods, works and consulting services contracts over the life of the project, financed by Non-ADB sources.

Goods and Works

General Description Estimated Value

(cumulative) Estimated Number

of Contracts Procurement

Method Comments

Tree plantation on Gazipur road (GCC/W-04) 0.01 Shopping Q4/2020

Tree plantation on Savar Roads

(Savar/LGED/W-11)

0.03 Shopping Q4/2020

Tree plantation on Savar Pourashava Roads

(Savar/Pou/W-02)

0.03 Shopping Q4/2020

Tree plantation on Rupganj Upazilla roads

(Rupganj/LGED/W-05)

0.04 Shopping Q4/2020

Tree plantation on Araihazar Upazilla

(Araihazar/LGED/W-07)

0.09 Shopping Q3/2020

National Competitive Bidding

A. Regulation and Reference Documents 1. The procedures to be followed for national competitive bidding shall be those set forth for the National Open Tendering Method in The Public Procurement Rules, 2008 (as updated and pursuant to The Public Procurement Act, 2006 issued by the Government of Bangladesh) with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines. B. Procurement Procedures

1. Eligibility

2. The eligibility of bidders shall be as defined under section I of the Procurement Guidelines; accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in section I of the Guidelines, as amended from time to time.

2. Advertising 3. The posting of NCB specific notices for contracts valued at less than $1 million on ADB’s website is not required but is highly recommended.

3. Location of Bid Submission

4. Submission of bids to ‘primary’ and ‘secondary’ locations, or ‘multiple droppings’ of bids, shall not be required or allowed. Advertisements and bidding documents shall specify only one location for delivery of bids.

82 Appendix 3

4. Bid Price as Percentage of Estimate 5. Bids shall not be invited based on percentage above or below the estimated cost, and contract award shall be based on the lowest evaluated bid price of responsive bid from eligible and qualified bidder.

5. Lottery 6. A lottery system shall not be used to determine a successful bidder, including for resolving deadlocks.

6. Rejection of All Bids and Rebidding

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

C. Bidding Documents

7. Anti-Corruption

8. Definitions of corrupt, fraudulent, collusive and coercive practices shall reflect the latest ADB Board-approved Anti-Corruption Policy definitions of these terms and related additional provisions (such as conflict of interest, etc.).

8. Qualification Requirements 9. Qualification criteria and specific requirements must be explicitly stated in the bidding documents and applied consistently during bid evaluation.

9. Rejection of Bids 10. A bid shall not be rejected claiming its bid price is not within a percentage range above or below the contract estimate.

10. ADB Policy Clauses

11. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB. 12. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question. 13. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive,

Appendix 3 83

coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract.

84 Appendix 4

APPENDIX 4: OUTLINE TERMS OF REFERENCE A. Preparation, Design and Supervision Consultant under Project Design Advance 1. The preparation, design and supervision (PDS) consultant will need to identify subprojects and prepare the Project Feasibility Study including preliminary designs, detail design and bidding documents in accordance with subproject selection criteria agreed between the Government of Bangladesh and Asian Development Bank (ADB). The main objective of the PDS Consultancy services is to ensure that all procurement of civil works and goods under the proposed project are undertaken in an economical and efficient manner, consistent with widely accepted engineering standards and practices for such works, and to the satisfaction of the government and ADB. The international consultants working under this PDS Consultancy Contract should ensure that on-the-job training is provided and expertise on engineering and project management is transferred to associated counterpart officials. The project design advance (PDA) is designed to facilitate total project readiness and minimize start-up delays in ADB projects by providing quick-disbursing resources for project formulation. The PDA supports advanced consultant mobilization prior to loan signing. 2. Specific objectives of the preparatory PDA are to:

(i) conduct physical surveys; (ii) identify and prioritize subprojects; (iii) undertake feasibility studies, (including technical, economic and financial, legal,

social and environmental aspects), engineering design and cost estimates for any remaining subprojects under Second CRDP and for additional future investment projects of about $100 million;

(iv) undertake detailed engineering designs, including specifications, drawings, and detailed cost estimates;

(v) prepare bidding documents and assist in conducting the bidding and prepare bid evaluation reports;

(vi) undertake social and environmental safeguards analysis based on detailed designs and preparation of necessary safeguard documentation for the ensuing project;

(vii) supervise and monitor construction and perform contract management; (viii) address the potential climate and disaster risks in the subproject design; and (ix) assist the PMCU to prepare all project reports .

3. In general, the scope of consultancy services will include, but not limited to the following:

(i) identification of potential subprojects following subproject selection criteria, detailed design; environmental, socio-economic, geographic, and geodetic surveys at sites; preparation of the technical specifications for the procurement of goods and works contracts for any remaining subprojects under Second CRDP and for additional future investment projects of about $100 million;

(ii) finalization of procurement packages, and preparation of bid documents and bid evaluation reports in compliance with ADB’s Procurement Guidelines and relevant rules of the government;

(iii) construction supervision and monitoring of subproject implementation including contract management;

(iv) Maintenance of a project performance monitoring system in line with the targets, indicators, assumptions, and risks described in the Design Monitoring Framework of the project.

Appendix 4 85

4. The PDS Consultant will be engaged under the Project Management and Coordination Unit (PMCU) for a total period of four years. The consulting team will be comprised of a team of 68 person-months of international and 432 person-months of national consultants. The team will be headed by an international Team Leader supported by both international and national Deputy Team Leaders and other experts. The office space for the consultants will be located in the Local Government Engineering Department (LGED) headquarters building in Dhaka for the project consultants. 5. Expected Deliverables and/or Outputs of detailed PDS Team:

(i) report on feasibility study including preliminary engineering design, cost estimate of each subproject;

(ii) list of prioritized subproject; (iii) physical survey of each subproject; (iv) technical assessment of each subproject; (v) detailed engineering design including specification, drawing and detailed cost

estimate of each subproject; (vi) modified detailed design including specification, drawing and detailed cost

estimate of required subproject if situation demand; (vii) bidding document of all subproject; (viii) financial, social and environmental safeguard reports; and (ix) approved development project proposal for investment project.

6. The personnel requirement (person-months) for the scope of works described above has been indicatively estimated (which does not include support and supervising staffs for field work and other activities such as field survey, data collection, documentation etc.) as follows:

SL. No. Position of Professional Number

Person-months

International National Total

A International Consultants

1 Senior Municipal Engineer/Team Leader 1 15 0 15

2 Regional Planner 1 24 0 24

3 Transport (Traffic Management/Traffic Modeling) Planning Specialist

1 6 0 6

4 Drainage and Storm Water Management Specialist 1 5 0 5

5 Water Supply and Sanitation Engineer 1 8 0 8

6 Solid Waste Management Specialist 1 5 0 5

7 Environment/Climate Change Specialist 1 5 0 5

Subtotal (A): 7 68 0 68

B National Consultants

1 Project Management Expert/Deputy Team Leader 1 0 30 30

2 Urban Development Specialist 1 0 24 24

3 Municipal Engineer 3 0 90 90

86 Appendix 4

SL. No. Position of Professional Number

Person-months

International National Total

4 Structural Engineer 1 0 30 30

5 Transport Engineer (Design) 1 0 24 24

6 Transport Planner 1 0 9 9

7 Drainage Engineer (Design) 2 0 54 54

8 Hydrologist 1 0 24 24

9 Water Supply Engineer (Design) 1 0 24 24

10 Sanitation Engineer (Design) 1 0 24 24

11 GIS Specialist 1 0 18 18

12 Environmental Specialist 1 0 9 9

13 Social Safeguard Specialist 1 0 9 9

14 Economic/Financial Specialist 1 0 12 12

15 Community Development Specialist 1 0 24 24

16 Electrical/ Mechanical Engineer 1 0 18 18

17 Climate Change Specialist 1 0 9 9

Sub Total (B): 20 0 432 432

Total (A+B) 27 68 432 500

7. In addition to professional inputs shown above, approximately 700 person-months of support and supervising staffs such as Field Engineers/Junior Architects/AutoCAD/Estimator for field work and other activities are anticipated to be required.

Appendix 4 87

B. Second Preparation, Design and Supervision Consultant (Firm) 8. The second preparation, design and supervision consultant (PDS-2) will continue the services of PDS-1 to complete engineering design, cost estimates and bidding documents and construction supervision, administration of Second City Region Development Project (the project) contracts. They will also conduct the feasibility study, prepare the detailed design, cost estimates and bidding documents for future investment projects of about $100 million. 9. Specific objectives of the PDS-2 consultant are:

(i) to conduct surveys; (ii) to identify and prioritize subprojects; (iii) to undertake feasibility studies (including technical, economic and financial, legal,

social and environmental aspects), engineering design and cost estimates for any remaining subprojects under the project and for additional future investment projects;

(iv) to prepare bidding documents and assist in conducting the bidding and prepare bid evaluation reports;

(v) to undertake social and environmental safeguards analysis based on detailed designs and preparation of necessary safeguard documentation for the ensuing project;

(vi) construction supervision, monitoring and contract management; (vii) to address the potential climate and disaster risks in the subproject design; and (viii) to assist the PMCU to prepare all project reports.

10. In general, the scope of consultancy services will include, but not limited to the following:

(i) identification of potential subprojects following subproject selection criteria, detailed design, environmental, socio-economic, geographic, and geodetic surveys at sites, preparation of the technical specifications for the procurement of goods and works contracts for any remaining subprojects under the project and for future investment projects;

(ii) finalize procurement packages, prepare of bid documents, and bid evaluation reports in compliance with ADB’s Procurement Guidelines and relevant rules of the government;

(iii) construction supervision and monitoring of subproject implementation including contract management; and

(iv) maintain the project performance monitoring system in line with the targets, indicators, assumptions, and risks described in the Design Monitoring Framework of the project.

11. The PDS-2 will be engaged under the PMCU for a total period of four years. The consulting team will be comprised of a team of 60 person-months of international and 532 person-months of national consultants. The team will be headed by an international Team Leader supported by Deputy Team Leaders and other experts. The office space for the consultants will be in the LGED headquarters building in Dhaka for the project consultants. 12. Expected Deliverables and/or Outputs of detailed PDS-2 Consultant:

(i) prioritized sub-project and prepare the subproject appraisal reports based on necessary survey and feasibility study

(ii) Detailed Project Report (technical assessment, detailed design, drawing, specifications, cost estimates, bill of quantities) each sub project;

(iii) bidding document of all sub-projects;

88 Appendix 4

(iv) economic, financial, gender social and environmental safeguard reports; and (v) Inclusion of climate and disaster risks consideration in subproject designs based

on climate risk and vulnerability assessments

13. Indicative staffing requirement. The personnel requirement (person months) for the scope of works described above has been indicatively estimated (which does not include support and supervising staffs for field work and other activities such as field survey, data collection, documentation, etc.) as follows:

SL. No. Position of Professional Number

Person-months

International National Total

A Key Experts (International)

1 Senior Municipal Engineer / Team Leader 1 24 0 24

2 Urban Planner 1 12 0 12

3 Transport (Traffic Management/ Traffic Modelling) Planning Specialist

1 6

0 6

4 Solid Waste Management Specialist 1 12 0 12

5 Climate Change Specialist 1 6 0 6

Sub Total (A): 5 60 0 60

B Key Experts (National)

1 Project Management Expert/Deputy Team Leader 1 0 36 36

2 Urban Development Specialist 1 0 18 18

3 Municipal Engineer 3 0 90 90

4 Structural Engineer 2 0 60 60

5 Transport Engineer (Design) 1 0 18 18

6 Drainage Engineer (Design) 2 0 60 60

7 Hydrologist 1 0 9 9

8 Solid Waste Management Specialist 1 0 24 24

9 GIS Specialist 1 0 18 18

10 Environmental Specialist 2 0 40 40

11 Social Safeguard Specialist 2 0 40 40

12 Economic Specialist 1 0 10 10

13 Financial Specialist 1 0 10 10

14 Community Development Specialist 1 0 30 30

15 Gender Specialist 1 0 18 18

16 Procurement Specialist 1 0 24 24

17 Electrical Engineer 1 0 9 9

Appendix 4 89

SL. No. Position of Professional Number

Person-months

International National Total

18 Mechanical Engineer 1 0 9 9

19 Climate Change Specialist 1 0 9 9

Sub Total (B): 25 0 532 532

Total (A+B) 30 60 532 592

14. In addition to professional inputs shown above, approximately 850 person-months of support and supervising staffs such as Field Engineers, Junior Architects, Junior Environment Expert, Junior Social Safeguard Expert, CAD Operators, Estimator, Surveyor, etc. for field work and other activities are anticipated to be required. C. Institutional and Community Capacity Development Consultants 15. The proposed project will enhance growth potential and improve investment environment of the target city regions through an integrated approach. The investment project will provide key urban infrastructures, focusing on urban connectivity and economic development along the South West Economic Corridor. It will provide urban municipal infrastructure with key investments in urban road, drainage and solid waste management, as well as logistic centers to improve the urban investment environment and foster economic growth. The Investment Project will strengthen local governance and capacity for sustainable service delivery and urban planning. The project will be financed by ADB and Government of Bangladesh.

16. The LGED will be the executing agency and will be responsible for the execution of the proposed investment Project. A PMCU will be established at LGED. Subprojects will be implemented by implementing agencies (IAs). The IAs are: Gazipur city corporation (GCC), Khulna city corporation (KCC), pourashavas and LGED district offices. Project implementation unit (PIU) will be established in each implementing agency. The institutional capacity and community development (ICCD) Consultant will be directly engaged with the PMCU under LGED to implement the institutional capacity development of LGED and PIUs and community awareness program in PIUs covered under the project.

17. Separate groups of consultants will assist the PMCU and PIUs, including preparation, design, and supervision (PDS-1) under PDA Consultant, Preparation, Design, and Supervision (PDS-2) consultant and individual consultants under PCMU for specific tasks. International and National Individual Consultants under PMCU will compile good practices of urban and regional planning, integrated urban drainage, integrated urban transport, solid waste management, institutional capacity development and explore areas of further application in LGED and PIUs. Based on the finding, training program will be developed and provided under the ICCD Consultant. The ICCD Consultant will include nongovernment organizations as sub-consultant to ensure community awareness program in PIUs.

18. There will be the facilitators to support city corporation and pourashavas to enhance urban planning and strengthening performance setting and monitoring system: facilitator (community mobilization), facilitator (tax and accounting), and facilitator (urban planning).

19. The specific objectives of the ICCD consultant are to: (i) enable the institutions to provide technical and management support to the project;

90 Appendix 4

(ii) provide proactive involvement in the development, planning and implementation of future investment projects;

(iii) ensure that all projects and programs are developed to ensure that the completed projects/interventions are sustainable, have the support of local governments and most importantly local communities, are environmentally and socially supportive and have minimal impacts, and are in accordance with government and project requirements;

(iv) provide continuous detailed support to all PIUs in the detailed implementation requirements for components of the project;

(v) assist LGED and PIUs to develop a sustainable operation mechanism and Operations & Maintenance plan for the project interventions of the project;

(vi) provide assistance to Urban Management Support Unit in adopting training for improved and effective use of computerized systems, including additional users’ training, and supporting pourashavas’ adoption of the Uniform Financial Management and Accounting Manual; and

(vii) provide awareness campaigns to local people for sustainable solid waste management in PIUs.

20. Scope of work and expected deliverables. In general, the consultancy services will include, but not limited to, the following:

(i) review of all existing personnel resources: their qualifications, experience, capabilities present work responsibilities and their constraints;

(ii) review of institutional functions, roles and responsibilities; (iii) understanding of linkages to other relevant and associate institutions; (iv) review of present organogram and its characteristics and main constraints; (v) identifications of key functions related to the project and the institutions

responsibilities; (vi) identify the mechanism of how LGED can assist the City Corporations and

Pourashavas to develop future development projects and operation and maintenance mechanisms for interventions and urban services;

(vii) outline of specific roles and responsibilities of each institution in connection with future investment project preparations;

(viii) asses the requirement of software support and outline of training needs for each institution;

(ix) assess the existing financial management systems (accounting and tax revenue management), their built-in functions and capabilities of City Corporation and Pourashava;

(x) evaluate capacity and competence of existing staff of City Corporation and Pourashava in effectively using the computerized financial management systems;

(xi) review the existing approach to operation and maintenance (O&M) planning of City Corporation and Pourashava;

(xii) develop and undertake on-the-job training to support the development of the O&M Plan which will establish monitoring parameters, inspection and maintenance procedures and frequency/schedules and budget of O&M;

(xiii) implementation of comprehensive training and capacity building program; and (xiv) identify the key stakeholders including individuals, public, private institutions,

nongovernment organizations/ community-based organizations, etc. currently active in the solid waste management area and describe the specific roles and responsibilities that each of these parties play in these areas and progress made so far.

Appendix 4 91

21. The ICCD Consultant will be engaged under the PMCU for a total period of four years. The consulting team will be comprised of a team of 264 person-months of national consultants. The team will be headed by a Team Leader supported by other experts. The office space for the consultants will be in the LGED headquarters building in Dhaka for the project consultants. 22. Expected Deliverables and/or Outputs of detailed ICCD Consultant:

(i) Report on the status of present structure, present workloads, capabilities and constraints of LGED (Planning, Design and geographic information system [GIS] unit) and PIUs;

(ii) An outline of capacity improvements to ensure the planning, design and implementation of future investment project;

(iii) A training program to ensure active support in the planning, design and implementation of future investment project;

(iv) Comprehensive training and capacity building program; (v) Report of results of training and capacity building program; (vi) Project completion report on institutional capacity development program; (vii) Outline of the awareness campaign program in PIUs; (viii) Development of the project website; (ix) Design and production of visibility material (information leaflets etc.); and (x) Project completion report on awareness campaign program.

23. Indicative staffing requirement. The personnel requirement (person months) for the scope of works described above have been indicatively estimated as follows:

SL. No. Position of Professional Number

Person-months

International National Total

National

1 Institutional Capacity Development Specialist/ Team Leader

1 0 24 24

2 Urban Planner 1 0 18 18

3 Architect 1 0 18 18

4 Transport Planner 1 0 18 18

5 Senior Structural Engineer 1 0 24 24

6 Senior Bridge Engineer 1 0 24 24

7 Drainage Engineer 1 0 24 24

8 Financial Management Specialist 1 0 24 24

92 Appendix 4

SL. No. Position of Professional Number

Person-months

International National Total

9 Training Specialist 1 0 36 36

10 Senior GIS Specialist 1 0 18 18

11 Database Management Specialist 1 0 18 18

12 ICT Specialist 1 0 18 18

Total: 12 0 264 264

24. In addition to professional inputs shown above, approximately 750 person-months of support and supervising staffs such as (i) Junior Structural Engineers, (ii) Junior Architects, (iii) Junior Urban Planner, (iv) Junior GIS Specialist, (v) Junior GIS Analyst, (vi) Junior Statistician, (vii) Junior Database Manager, (viii) Hardware Engineer, (ix) CAD operator, (x) Data analyst , (xi)Data Collectors and Enumerators, (xi) Surveyors, (xii) Facilitators, etc. for field work and other activities are anticipated to be required for facilitation of the ICCD consultancy services. D. Individual Consultants

25. The specific objectives of the individual consultants are to: (i) provide technical and management support to PMCU for smooth implementation

of the project; (ii) provide proactive involvement in the development, planning and implementation

of future investment projects; (iii) provide good practices of urban and regional planning, integrated urban drainage,

integrated urban transport, solid waste management, institutional capacity development and explore areas of further application in LGED and PIUs;

(iv) provide continuous detailed support to PMCU and PIUs in the detailed implementation requirements for components of the project;

(v) assist ICCD Consultant to develop a sustainable operation mechanism and O&M plan for the project interventions of the project;

(vi) assist ICCD Consultant to implement institutional capacity development and community awareness program of the project;

(vii) assist PMCU and PIUs in developing and implementing an environmental and social safeguard and Gender programme including training program for the PMCU/PIU staff, contractors, and national consultants involved in project implementation;

(viii) assist PMCU and PIUs to ensure compliance with all Government rules and regulations and ensure the safeguard compliance with ADB’s SPS, 2009;

(ix) assist PMCU and PIUs to establish and implement an effective monitoring and evaluation mechanism for each subproject; and

(x) assist PMCU in consolidating reports from PIUs and the project Consultant (PDS-1 and/or PDS-2 and ICCD) and prepare Quarterly Progress Reports, Semi-Annual

Appendix 4 93

Safeguard Monitoring Reports (Environment and Social), Annual Report to be submitted by PMCU to ADB.

26. In general, the consultancy services of Individual Consultants will include, but not limited to the following:

(i) identification of good practices of urban and regional planning, integrated urban drainage, integrated urban transport, solid waste management, institutional capacity development and explore areas of further application in LGED and PIUs;

(ii) identifications of key functions related to second CRDP and the institutions responsibilities;

(iii) facilitate in developing and undertaking on-the-job training to support the development of the O&M plan of the PIUs;

(iv) facilitate in Implementation of comprehensive training and capacity building program;

(v) support to PMCU and PIUs in the detailed implementation requirements for components of the project; and

(vi) identify procedures and/or measures proven successful in pourashavas, city corporations with high collection-efficiency and assess their applicability in pourashavas and city corporations with low-collection efficiency and then formulate appropriate measures for the improvement of collection efficiency; identify appropriate measures necessary to sustain the high collection efficiency in successful pourashavas.

27. Indicative individual consultant requirement. The personnel requirement (person months) for the scope of works described above have been indicatively estimated as follows:

SL. No. Position of Professional Number

Person-months

International National Total

International

1 Institutional Capacity Development Specialist 1 12 0 12

2 Integrated Urban Drainage Management Specialist 1 12 0 12

3 Integrated Urban Transport Specialist 1 12 0 12

4 Solid Waste Management Specialist 1 12 0 12

5 Urban Planner 1 12 0 12

Subtotal: International 5 60 0 60

National

1 Municipal Governance Specialist 1 0 12 12

94 Appendix 4

SL. No. Position of Professional Number

Person-months

International National Total

2 Monitoring & Evaluation Specialist 1 0 50 50

3 Social Safeguard Specialist 1 0 24 24

4 Environment Safeguard Specialist 1 0 24 24

5 Gender Specialist 1 0 24 24

Subtotal: National 5 0 134 134

Total 10 60 134 194

Appendix 5 95

APPENDIX 5 GRIEVANCE REDRESS MECHANISM

A. Grievance Redress Mechanism Process and Outline

1. Second City Region Development Project (CRDP) will adopt the grievance redress mechanism (GRM) outline of the first CRDP (or “CRDP”). The GRM shall be set up to register grievances of the people regarding technical, social and environmental aspects. Also, the GRM welcomes all kinds of technical and safeguards-related queries, comments, suggestions and complaints from anyone. The process will be designed to be transparent, gender responsive, culturally appropriate and commensurate to the risks and adverse impacts of the project, as well as readily accessible to all segments of the affected people. The project GRM will not supersede any legal government grievance procedures. 2. Affected people are to be informed about the mechanism through information caravan and orientation in the community to be conducted by the project officers and staff, printing of pamphlets and brochures, media and public outlets. To ensure wider coverage, complaints or grievances can be reported through but not limited to letters, e-mails, text messages, verbal narration from walk-in complainants, phone calls, fax, online grievance registration form (in local dialects) through the project website, installation of a grievance intake box at the project area and other mode of filing that the affected people have access to. For those affected people who cannot read and write, a community leader/volunteer will be identified in every project area. The community leader/volunteer will serve as the focal person who will assist the affected people in filing the complaints. This participatory process shall ensure that all views of the people are adequately reviewed and suitably incorporated in the design and implementation process. The GRM will be implemented in three levels. See Figure 1 for the outline. 3. First Level. The first level and most accessible and immediate venue for the fastest resolve of grievances is the project implementation unit (PIU), chiefly through the Environment and/or Social Safeguard Officers and Project Manager (or equivalent), with assistance from the Environmental and Social Safeguard Specialists of the Preparation, Design and Supervision (PDS) consultants. The contact phone number will be posted in the project areas and at project management and coordination unit (PMCU) and PIU websites and notice boards. Grievances will be resolved through continuous interactions with affected persons and the PIU will answer queries and resolve grievances regarding various issues including environmental management plan (EMP) implementation, land acquisition, structures acquisition, livelihood impacts, entitlements, and assistance. Corrective measures will be undertaken at the field-level itself within five days and feedback provided to the complainant on actions taken for resolution. All grievances will be documented with full information of the person and issue. A sample grievance form that may be used is in Part B below. The suggested format for record-keeping of grievance is in Part C below. 4. Second Level. Should the grievance remain unresolved, the PIU Project Manager (or equivalent), will activate the second level of the GRM by referring the issue (with written documentation) to the local Grievance Redress Committee (GRC) of the pourashava or city corporation, who will, based on review of the grievances, address them in consultation with the Safeguards Focal of the PIU and PMCU, and affected persons. A hearing will be called, if necessary, where the affected person can present his/her concern/issues. The process will promote conflict resolution through mediation. The PIU Project Manager will be responsible for processing and placing all papers before the GRC, recording decisions, issuing minutes of the meetings, providing feedback to complainants and taking follow up actions so that formal orders are issued and decisions are carried out. The local GRC will consist of the following persons: (i) Chief Executive Officer or Secretary of the Pourashava or City Corporation (GRC Chair),

96 Appendix 5

(ii) representative of the mayor of the Pourashava or City Corporation, (iii) representative of the affected persons, (iv) official of the land registry department, (v) official of the DOE divisional office, (vi) urban planner of the Pourashava or City Corporation, and (vii) environmental and/or social safeguard focal of the PIU. The local GRC shall meet weekly, unless the Head of the PIU informs that there are no grievances to address, or they shall meet as needed as per the severity of the grievance. The local GRC will suggest corrective measures at the field level and assign responsibilities for implementing its decisions. 5. The functions of the local GRC are as follows: (i) provide support to affected persons on problems arising from land acquisition (temporary or permanent), asset acquisition and eligibility for entitlements, compensation and assistance, and other environmental or social safeguard issues unresolved at the first level of GRM; (ii) record grievances of affected persons, categorize and prioritize them and provide solutions within 10 days from receipt of grievance from the first level; and (iii) report to the aggrieved parties about developments regarding their grievances and decisions of the GRC. 6. Third Level. Should the grievance remain unresolved, the PIU Head will activate the third level of the GRM by informing the PMCU Project Director who will, based on review of the local GRC minutes and consultation with the local GRC Chair, activate the PMCU level GRC. This committee shall comprise the following representatives: (i) Project Director, PMCU; (ii) Deputy Project Director, PMCU; (iii) Environmental/Resettlement Safeguards Officer of the PMCU; (iv) representative from Land Ministry; (v) representative from DOE; (vi) representative of the affected persons; and (vii) Environmental and/or Social Safeguards Focal of the PIU. The Project Director will sign off on all grievances received by the PMCU. 7. The GRC at the PMCU level shall meet based on the receipt of grievances, and the meeting shall be convened, and grievance redressed within 15 days of receipt of the grievance by the PMCU. The Environmental and/or Social Safeguards Officer of the PMCU will be responsible for processing and placing all papers before the PMCU GRC, recording decisions, issuing minutes of the meetings and taking follow up action to see that formal orders are issued, and the decisions carried out, and final decision conveyed to the complainant.

Appendix 5 97

Figure A5.1: Project Grievance Redress Mechanism1

Not Redressed Not Redressed GRC = Grievance Redress Committee; ICCDC = institutional capacity and community development consultants, LGED = Local Government Engineering Department; PDS = preparation, design and supervision; PIU = project implementation unit; PMCU = project management coordination unit.

8. The GRM notwithstanding, an aggrieved person shall have access to the country’s legal system at any stage. This can run parallel to accessing the GRM and is not dependent on the negative outcome of the GRM. 9. If the established GRM is not in a position to resolve the issue, the affected persons can also use the ADB Accountability Mechanism through directly contacting (in writing) the Complaint Receiving Officer at ADB headquarters. The complaint can be submitted in any of the official languages of ADB’s Developing Member Countries. The ADB Accountability Mechanism information will be included in the Project Information Document to be distributed to the affected communities, as part of the project GRM.

1 Outline adopted from GRM of CRDP and revised to conform with new arrangements and nomenclatures of Second

CRDP.

Affected Person

First Level Grievance

First Level: Contractor, PIU Project Manager (or equivalent), PIU focal on environment/social safeguard and PIU safeguard assistants (to be assessed by ICCDC)

Grievance Redressed

5 days

Assistance of local community as required

Second Level Grievance

LGED District Level: Local GRC supported by PIU focal on environment/social safeguards and ICCDC

Grievance Redressed

10 days

Third Level Grievance

PMCU Level GRC Supported by PMCU and PDS consultants Environment/Social Safeguard Officers/ Specialists

Grievance Redressed

15 days

98 Appendix 5

B. Sample Grievance Registration Form

(To be available in Bangla and Other Local Language, if any)

The _____________________________________Project welcomes complaints, suggestions, queries and comments regarding project implementation. We encourage persons with grievance to provide their name and contact information to enable us to get in touch with you for clarification and feedback. Should you choose to include your personal details but want that information to remain confidential, please inform us by writing/typing *(CONFIDENTIAL)* above your name. Thank you.

Date Place of registration

Contact Information/Personal Details

Name Gender Male

Female

Age

Home Address

Village / Town

District

Phone no.

E-mail

Complaint/Suggestion/Comment/Question Please provide the details (who, what, where and how) of your grievance below: If included as attachment/note/letter, please tick here:

How do you want us to reach you for feedback or update on your comment/grievance?

FOR OFFICIAL USE ONLY

Registered by: (Name of Official registering grievance)

Mode of Communication:

Note/Letter

E-mail

Verbal/Telephonic

Reviewed by: (Names/Positions of Official(s) reviewing grievance)

Action Taken:

Whether Action Taken Disclosed:

Yes

No

Means of Disclosure:

Appendix 5 99

C. Suggested Format for Record Keeping of Grievances

S. No.

Date of receipt of grievance

Name and contact

details of complainant

Description of

complaint Nature of complaint

Decisions taken

Response given to

complainant and date

Whether closed

100 Appendix 6

APPENDIX 6: OUTLINES AND CHECKLISTS FOR SOCIAL SAFEGUARD DOCUMENTS

OUTLINE OF DUE DILIGENCE REPORT (DDR) FOR INVOLUNTARY RESETTLEMENT IMPACTS

Following requirements of the Asian Development Bank (ADB) Safeguard Policy Statement (2009) and the Operations Manual section on safeguard policy (OM F1, 2013), ADB assumes the responsibility for conducting due diligence and for reviewing, monitoring, and supervising projects throughout the ADB’s project cycle in conformity with the principles and requirements embodied in the SPS. To ensure appropriate categorization of involuntary resettlement (IR) safeguards during project preparation, careful screening activities are recommended to be done by the project team (or consultants) and the result is reported to ADB. This report is important as the supporting document, as well as for the baseline information/data, for a project to be categorized as C (“no impacts”) on involuntary resettlement and for projects involving facilities and/or business activities that already exist or are under construction before ADB's involvement. The comprehensiveness of the report is commensurate with the complexity of the proposed project activities. An IR due diligence report (DDR) may include the following elements: A. Executive summary This section provides a concise statement of project scope and activities, key findings and proposed safeguards categorization and summary recommended actions, if any. B. Background of the Report and Project Description This section provides a general description of the activity, including:

1. Background/context of the due diligence report which includes the information on the proposed project and its components,

2. Information on the scope of the due diligence activity and requirements C. Legal and Policy Background This section provides information on country regulations and laws related to land acquisition and involuntary resettlements relevant to the project activities. ADB SPS (2009) is also included as another policy reference of the assessment. D. Methodology This section describes the methodology used in conducting the due diligence activities for involuntary resettlement impacts. This includes schedule of the assessment activities, consultation meetings with projects affected communities and institutions involved. The involuntary resettlement due diligence checklist as prepared by ADB can be used to conduct the assessment. E. Findings This section describes the results of the assessment. This includes:

Appendix 6 101

1. Detailed account of possible involuntary resettlement impacts due to the proposed project activities (each component/ sub project). The assessment of impacts should include permanent and temporary impacts for both land and non-land assets (i.e., immobile assets, crops/trees, income, access to land or resources, etc.)

2. A chronology of past land acquisition and resettlement activities, if any. This includes assessment of adequacy of the previous land acquisition and resettlement activity against ADB policy on involuntary resettlement and whether there are pending issues related to the past activities. For any negotiated land acquisition or land donation conducted in anticipation of ADB funding, third independent party validation report must be prepared and attached to the DDR.

3. Other social issues observed during the field visits (i.e., opposition/resentment from the communities in the project sites, social conflicts, etc.) that could affect the implementation of the project.

F. Recommendations This section describes the summary findings of the assessment and recommendation for the appropriate involuntary resettlement categorization of the project. A time-bound action plan for preparing the required resettlement plan and/or corrective action plan (CAP), if any, maybe proposed. Appendixes

1. Completed involuntary resettlement screening checklist with signatures from the responsible agencies/institutions

2. Pictures and Google Earth maps depicting the project sites and major alignments 3. List of existing assets observed/recorded during the assessment 4. Copy of land/assets ownership records for all proposed sites (owned by

government or by private owner – proposed for donation or negotiated settlement) 5. Copy of No objection certificates for use of government land 6. Socio-economic profile and photographs of land donors/land sellers, if applicable

(to assess vulnerability status, significance of impact etc.) 7. Copy of minutes of stakeholder consultation meetings including issues discussed

and consensus reached, with signature sheets of attendees and photographs of consultation

8. Copy of independent third-party validation report for any land donation or negotiated settlement

9. Copy of land transfer record in case of negotiated settlement/land donation 10. Copy of the formal establishment of project GRC (if already established)

102 Appendix 6

This outline is part of the Safeguard Requirements 2. A resettlement plan is required for all projects with involuntary resettlement impacts. Its level of detail and comprehensiveness is commensurate with the significance of potential involuntary resettlement impacts and risks. The substantive aspects of the outline will guide the preparation of the resettlement plans, although not necessarily in the order shown.

A. Executive Summary

This section provides a concise statement of project scope, key survey findings, entitlements and recommended actions.

B. Project Description

This section provides a general description of the project, discusses project components that result in land acquisition, involuntary resettlement, or both and identify the project area. It also describes the alternatives considered to avoid or minimize resettlement. Include a table with quantified data and provide a rationale for the final decision.

C. Scope of Land Acquisition and Resettlement

This section: (i) discusses the project’s potential impacts, and includes maps of the areas or zone

of impact of project components or activities; (ii) describes the scope of land acquisition (provide maps) and explains why it is

necessary for the main investment project;

OUTLINE OF A RESETTLEMENT PLAN

(iii) summarizes the key effects in terms of assets acquired and displaced persons; and

(i) define, identify, and enumerate the people and communities to be affected;

(iii) discuss the project’s impacts on the poor, indigenous and/or ethnic minorities, and other vulnerable groups; and

(iv) identify gender and resettlement impacts, and the socioeconomic situation, impacts, needs, and priorities of women.

E. Information Disclosure, Consultation, and Participation

This section:

(i) identifies project stakeholders, especially primary stakeholders;

(ii) describes the consultation and participation mechanisms to be used during the different stages of the project cycle;

(iv) provides details of any common property resources that will be acquired.

D. Socioeconomic Information and Profile

This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including:

(ii) describe the likely impacts of land and asset acquisition on the people and communities affected taking social, cultural, and economic parameters into account;

Appendix 6 103

2

(iii) describes the activities undertaken to disseminate project and resettlement information during project design and preparation for engaging stakeholders;

(iv) summarizes the results of consultations with affected persons (including host communities), and discusses how concerns raised and recommendations made were addressed in the resettlement plan;

(v) confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and

(vi) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during project implementation.

F. Grievance Redress Mechanisms

This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive.

G. Legal Framework

(iii) outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods; and set out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided; and

(iv) describes the land acquisition process and prepare a schedule for meeting key procedural requirements.

H. Entitlements, Assistance and Benefits

This section:

(i) defines displaced persons’ entitlements and eligibility, and describes all resettlement assistance measures (includes an entitlement matrix);

(iii) outlines opportunities for affected persons to derive appropriate development benefits from the project.

I. Relocation of Housing and Settlements

This section: (i) describes options for relocating housing and other structures, including replacement

housing, replacement cash compensation, and/or self-selection (ensure that gender concerns and support to vulnerable groups are identified);

(ii) describes alternative relocation sites considered; community consultations conducted; and justification for selected sites, including details about location, environmental assessment of sites, and development needs;

(ii) specifies all assistance to vulnerable groups, including women, and other special groups; and

(iii) provides timetables for site preparation and transfer;

This section:

(i) describes national and local laws and regulations that apply to the project and identify gaps between local laws and ADB's policy requirements; and discuss how any gaps will be addressed;

(ii) describes the legal and policy commitments from the executing agency for all types of displaced persons;

104 Appendix 6

Annex

(iv) describes the legal arrangements to regularize tenure and transfer titles to resettled persons;

(v) outlines measures to assist displaced persons with their transfer and establishment at new sites;

(vi) describes plans to provide civic infrastructure; and (vii) explains how integration with host populations will be carried out.

J. Income Restoration and Rehabilitation

(v) explains gender considerations; and (vi) describes training programs.

K. Resettlement Budget and Financing Plan

(iii) includes a justification for all assumptions made in calculating compensation rates and other cost estimates (considering both physical and cost contingencies), plus replacement costs; and

(iv) includes information about the source of funding for the resettlement plan budget.

L. Institutional Arrangements

This section: (i) describes institutional arrangement responsibilities and mechanisms for carrying

out the measures of the resettlement plan; (ii) includes institutional capacity building program, including technical assistance, if

required;

(ii) describes income restoration programs, including multiple options for restoring all types of livelihoods (examples include project benefit sharing, revenue sharing arrangements, joint stock for equity contributions such as land, discuss sustainability and safety nets);

(iii) outlines measures to provide social safety net through social insurance and/or project special funds;

(ii) describes the flow of funds (the annual resettlement budget should show the budget-scheduled expenditure for key items);

(i) provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation;

(iii) describes role of nongovernment organizations, if involved, and organizations of affected persons in resettlement planning and management; and

(iv) describes how women’s groups will be involved in resettlement planning and management.

This section:

This section:

(i) identifies livelihood risks and prepare disaggregated tables based on demographic data and livelihood sources;

(iv) describes special measures to support vulnerable groups;

Appendix 6 105

This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.

54 Annex

M. Implementation Schedule

This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects of resettlement activities synchronized with the project schedule of civil works construction, and provide land acquisition process and timeline.

N. Monitoring and Reporting

106 Appendix 7

APPENDIX 7:SAMPLE SEMI-ANNUAL ENVIRONMENTAL MONITORING REPORT TEMPLATE

I. INTRODUCTION

• Overall project description and objectives

• Environmental category as per ADB Safeguard Policy Statement, 2009

• Environmental category of each subproject as per national laws and regulations

(i) Project Safeguards Team

Name Designation/Office Email Address Contact Number Roles

1. PMU

2. PIUs

3. Consultants

• Overall project and sub-project progress and status

• Description of subprojects (package-wise) and status of implementation (preliminary, detailed design, on-going construction, completed, and/or O&M stage)

Package Number

Components/List of Works

Contract Status (specify if under

bidding or contract awarded)

Status of Implementation (Preliminary Design/Detailed

Design/On-going

Construction/Completed/O&M)a

If On-going Construction

%Physical Progress

Expected Completion

Date

a If on-going construction, include %physical progress and expected date of completion.

Appendix 7 107

II. COMPLIANCE STATUS WITH NATIONAL/ STATE/ LOCAL STATUTORY ENVIRONMENTAL REQUIREMENTS1

Package

No. Subproject

Name Statutory

Environmental Requirementsa

Status of Complianceb

Validity if

obtained

Action Required

Specific Conditions that

will require environmental monitoring as

per Environment Clearance,

Consent/Permit to Establishc

a Specify (environmental clearance? permit/consent to establish? forest clearance? etc.) b Specify if obtained, submitted and awaiting approval, application not yet submitted c Example: Environmental clearance requires ambient air quality monitoring, forest clearance/tree-cutting permit

requires 2 trees for every tree, etc.

III. COMPLIANCE STATUS WITH ENVIRONMENTAL LOAN COVENANTS

No. (List schedule and paragraph

number of Loan Agreement)

Covenant Status of Compliance Action Required

IV. COMPLIANCE STATUS WITH THE ENVIRONMENTAL MANAGEMENT PLAN (REFER

TO EMP TABLES IN APPROVED IEE/S)

(ii) Confirm if IEE/s require contractors to submit site-specific EMP/construction EMPs. If not, describe the methodology of monitoring each package under implementation.

Package-wise IEE Documentation Status

Package Number

Final IEE based on Detailed Design Site-specific EMP (or

Construction EMP)

approved by Project

Director? (Yes/No)

Remarks

Not yet due (detailed

design not yet

completed)

Submitted to ADB (Provide

Date of Submission)

Disclosed on project

website (Provide

Link)

Final IEE provided to Contractor/s

(Yes/No)

1 All statutory clearance/s, no-objection certificates, permit/s, etc. should be obtained prior to award of contract/s.

Attach as appendix all clearance obtained during the reporting period. If already reported, specify in the “remarks” column.

108 Appendix 7

(iii) For each package, provide name/s and contact details of contractor/s’ nodal person/s for environmental safeguards.

Package-wise Contractor/s’ Nodal Persons for Environmental Safeguards

Package Name Contractor Nodal Person Email Address Contact Number

(iv) With reference to approved EMP/site-specific EMP/construction EMP, complete the table

below

Summary of Environmental Monitoring Activities (for the Reporting Period)2

Impacts (List from

IEE)

Mitigation Measures (List from

IEE)

Parameters Monitored (As

a minimum those

identified in the IEE should be monitored)

Method of Monitoring

Location of

Monitoring

Date of Monitoring Conducted

Name of Person

Who Conducted

the Monitoring

Design Phase

Pre-Construction Phase

Construction Phase

Operational Phase

2 Attach laboratory results and sampling map/locations.

Appendix 7 109

Overall Compliance with CEMP/ EMP

No. Sub-Project Name

EMP/ CEMP Part of

Contract Documents

(Y/N)

CEMP/ EMP Being

Implemented (Y/N)

Status of Implementation

(Excellent/ Satisfactory/ Partially Satisfactory/ Below Satisfactory)

Action Proposed and

Additional Measures Required

V. APPROACH AND METHODOLOGY FOR ENVIRONMENTAL MONITORING OF THE

PROJECT

• Briefly describe the approach and methodology used for environmental monitoring of each sub-project.

VI. MONITORING OF ENVIRONMENTAL IMPACTS ON PROJECT SURROUNDINGS

(AMBIENT AIR, WATER QUALITY AND NOISE LEVELS)

• Discuss the general condition of surroundings at the project site, with consideration of the following, whichever are applicable:

o Confirm if any dust was noted to escape the site boundaries and identify dust

suppression techniques followed for site/s. o Identify if muddy water is escaping site boundaries or if muddy tracks are seen on

adjacent roads. o Identify type of erosion and sediment control measures installed on site/s,

condition of erosion and sediment control measures including if these are intact following heavy rain;

o Identify designated areas for concrete works, chemical storage, construction materials, and refueling. Attach photographs of each area in the Appendix.

o Confirm spill kits on site and site procedure for handling emergencies. o Identify any chemical stored on site and provide information on storage condition.

Attach photograph. o Describe management of stockpiles (construction materials, excavated soils,

spoils, etc.). Provide photographs. o Describe management of solid and liquid wastes on-site (quantity generated,

transport, storage and disposal). Provide photographs. o Provide information on barricades, signages, and on-site boards. Provide

photographs in the Appendix. o Indicate if there are any activities being under taken out of working hours and how

that is being managed.

• Briefly discuss the basis for environmental parameters monitoring.

• Indicate type of environmental parameters to be monitored and identify the location.

• Indicate the method of monitoring and equipment used.

• Provide monitoring results and an analysis of results in relation to baseline data and statutory requirements.

110 Appendix 7

As a minimum the results should be presented as per the tables below. Air Quality Results

Site No. Date of Testing Site Location

Parameters (Government Standards)

PM10 µg/m3

SO2 µg/m3

NO2 µg/m3

Site No. Date of Testing Site Location

Parameters (Monitoring Results)

PM10 µg/m3

SO2 µg/m3

NO2 µg/m3

Water Quality Results

Site No. Date of Sampling Site Location

Parameters (Government Standards) pH Conductivi

ty µS/cm BOD mg/L

TSS mg/L

TN mg/L

TP mg/L

Site No. Date of Sampling Site Location

Parameters (Monitoring Results) pH Conductivi

ty µS/cm BOD mg/L

TSS mg/L

TN mg/L

TP mg/L

Noise Quality Results

Site No. Date of Testing Site Location LAeq (dBA) (Government Standard)

Day Time Night Time

Site No. Date of Testing Site Location LAeq (dBA) (Monitoring Results)

Day Time Night Time

Appendix 7 111

VII. GRIEVANCE REDRESS MECHANISM

• Provide information on establishment of grievance redress mechanism and capacity of grievance redress committee to address project-related issues/complaints. Include as appendix Notification of the GRM (town-wise if applicable).

VIII. COMPLAINTS RECEIVED DURING THE REPORTING PERIOD

• Provide information on number, nature, and resolution of complaints received during reporting period. Attach records as per GRM in the approved IEE. Identify safeguards team member/s involved in the GRM process. Attach minutes of meetings (ensure English translation is provided).

IX. SUMMARY OF KEY ISSUES AND REMEDIAL ACTIONS

• Summary of follow up time-bound actions to be taken within a set timeframe. X. APPENDIXES

• Photos

• Summary of consultations

• Copies of environmental clearances and permits

• Sample of environmental site inspection report

• all supporting documents including signed monthly environmental site inspection reports prepared by consultants and/or contractors

• Others

112 Appendix 7

SAMPLE ENVIRONMENTAL SITE INSPECTION REPORT Project Name Contract Number

NAME: _____________________________________________ DATE: __________________________ TITLE: _____________________________________________ DMA: ___________________________ LOCATION: _________________________________________ GROUP: ________________________ WEATHER CONDITION: ____________________________________________________________________________________ INITIAL SITE CONDITION: _____________________________________________________________ CONCLUDING SITE CONDITION: Satisfactory ______ Unsatisfactory ______ Incident ______ Resolved _______ Unresolved ______ INCIDENT: Nature of incident: ____________________________________________________________________________________ Intervention Steps: ____________________________________________________________________________________ Incident Issues

Project

Activity Stage

Survey

Design

Implementation

Pre-Commissioning

Guarantee Period

Inspection

Emissions Waste Minimization

Air Quality Reuse and Recycling

Noise pollution Dust and Litter Control

Hazardous Substances Trees and Vegetation

Site Restored to Original Condition Yes No Signature _______________________________________ Sign off _______________________________ ________________________________ Name Name Position Position

Resolution

Appendix 8 113

APPENDIX 8: SAMPLE OUTLINE FOR SEMI-ANNUAL SOCIAL SAFEGUARDS MONITORING 1. Following requirements of the Asian Development Bank (ADB) Safeguard Policy Statement (SPS), 2009 and the Operations Manual section on safeguard policy (OM F1), borrowers are required to establish and maintain procedures to monitor the status of implementation of safeguard plans and ensure progress is made toward the desired outcomes. For the project, which is categorized as B for Involuntary Resettlement and as C for Indigenous Peoples impacts, the PMCU will submit semi-annual monitoring reports to ADB. The level of detail and comprehensiveness of a monitoring report is commensurate with the complexity and significance of social safeguards impacts and with the status of project implementation phase. 2. This outline can be used for the social semi-annual safeguards monitoring progress report and resettlement plan completion report to start the civil works in the impacted areas. A social safeguard monitoring progress report may include the following elements:

A. Executive Summary 3. This section provides a concise statement of project scope and impacts, key findings and recommended actions. B. Background of the Report and Project Description 4. This section provides a general description of the project, including:

(i) Background of the monitoring report which includes the information on the project, project components, safeguards categorizations and general scope of the social safeguards impacts;

(ii) Information on the implementation progress of the project activities, scope of monitoring report and requirements, reporting period, including frequency of submission and changes in project scope and adjusted safeguard measures, if applicable; and

(iii) Summary table of identified impacts and the mitigation actions.

C. Scope of Impacts 5. This section outlines the detail of:

(i) Scale and scope of the project’s safeguards impacts; (ii) Vulnerability status of the affected people/communities; and (iii) Entitlement matrix and other rehabilitation measures, as applicable, as described in

the approved final resettlement plan(s). D. Compensation and Rehabilitation47 6. This section describes the process and progress of the implementation of the safeguards plan and other required activities as determined in the plan. This includes:

(i) Payment of the affected assets compensation, allowances, loss of incomes, etc. to the affected persons;

(ii) Provision of other types of entitlement as described in the matrix and implementation of livelihood rehabilitation activities as determined in the plan; and

47 Depending on the status of the final detailed design during the submission of the report, this activity might not yet

have started. In such a case, provide the information on the expected date the activity to be conducted instead.

114 Appendix 8

(iii) Quantitative as well as qualitative results of the monitoring parameters, as agreed in the plan, should be provided.

E. Public participation and consultation 7. This section describes public participation and consultation activities during the project implementation. This includes final consultations with affected persons during resettlement plan finalization after the completion of detailed design; the numbers of activities conducted; issues raised during consultations and responses provided by the project team, etc. F. Grievance Redress Mechanism 8. This section describes the implementation of project grievance redress mechanism (GRM) as design in the approved resettlement plan This includes evaluations of its effectiveness, procedures, complaints receive, timeliness to resolve issues/complaints and resources provided to solve the complaints. G. Institutional Arrangement 9. This section describes the actual implementation, or any adjustment made to the institutional arrangement for managing the social safeguards issues in the projects. This includes the establishment of safeguards unit/team and appointment of staff in the executing agency/implementing agency; implementation of the GRM and its committee; and supervision and coordination between institutions involved in the management and monitoring of safeguards issues etc. H. Monitoring Results—Findings 10. This section describes the summary and key findings of the monitoring activities. The results are compared against previously established benchmarks and compliance status (e.g., adequacy of involuntary resettlement compensation rates and timeliness of payments, adequacy and timeliness of involuntary resettlement rehabilitation measures including serviced housing sites, house reconstruction, livelihood support measures, and training; budget for implementing EMP, resettlement plan, timeliness and adequacy of capacity building, etc.). It also compares against the objectives of safeguards or desired outcomes documented (e.g., involuntary resettlement impacts avoided or minimized; livelihood restored or enhanced; livelihood systems and cultural uniqueness fully respected; environmental impacts avoided or minimized, etc.). If noncompliance or any major gaps identified, include the recommendation of corrective action plan. I. Compliance Status

11. This section will summarize the compliance status of the project activities with the loan covenants, ADB SPS, 2009 on safeguard requirements, SR 2 and SR 3, and the approved final resettlement plan(s) and indigenous peoples plan(s). J. Follow up Actions, Recommendation and Disclosure 12. This section describes recommendations and further actions or items to focus on for the remaining monitoring period. It also includes lesson learned for improvement for future safeguards

Appendix 8 115

monitoring activities. Disclosure dates of the monitoring report to the affected communities should also be included. A time-bound summary table for required actions should be included. Appendix 1

i. List of Affected Persons and Entitlements ii. Summary of Resettlement Plan with entitlement matrix

Appendix 2

i. Copies of Affected Persons’ certification of payment (signed by the affected persons) ii. Summary of minutes of meetings during public consultations iii. Summary of complaints received and solution status

116 Appendix 9

APPENDIX 9: OUTLINE FOR QUARTERLY PROGRESS REPORT

A. Introduction and Basic Data (i) ADB loan number, project title, borrower, executing agency, implementing

agencies; (ii) total estimated project cost and financing plan; (iii) status of project financing including availability of counterpart funds; (iv) dates of approval, signing, and effectiveness of ADB loan; (v) original and revised (if applicable) ADB loan closing date and elapsed loan period

based on original and revised (if applicable) loan closing dates; and (vi) date of last ADB review mission.

B. Utilization of Funds

(i) cumulative contract awards financed by the ADB loan; (ii) counterpart funds (commitment of funds to date), and comparison with timebound

projections (targets); (iii) cumulative disbursements from the ADB loan and counterpart funds; (iv) (expenditure to date), and comparison with time-bound projections (targets); and (v) re-estimated costs to completion, need for reallocation within ADB loan categories,

and whether an overall project cost overrun is likely. C. Project Purpose

(i) an assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements;

(ii) an assessment of changes to the key assumptions and risks that affect attainment of the development objectives; and

(iii) other project development, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives.

D. Implementation Progress

(i) the borrower's compliance with loan covenants and the reasons for any noncompliance or delay in compliance the borrower's compliance with loan covenants and the reasons for any noncompliance or delay in compliance

(ii) assessment of project implementation arrangements such as establishment, staffing, and funding of the PMCU or PIUs;

(iii) information relating to other aspects of the executing agency’s internal operations that may impact on the implementation arrangements or project progress;

(iv) progress or achievements in implementation since the last progress report following the DMF and the project performance monitoring system;

(v) assessment of the progress of each project component, such as (a) recruitment of consultants and their performance; (b) procurement of goods and works (from preparation of detailed designs and bidding documents to contract awards); and (c) the performance of suppliers, manufacturers, and contractors for goods and works contracts;

(vi) assessment of progress in implementing the overall project to date in comparison with the original implementation schedule—quantifiable and monitorable targets (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the

Appendix 9 117

relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets);

(vii) monitoring of the timebound action plans by project municipalities (city corporations and pourashavas) to achieve the 85% collection efficiency target; and

(viii) follow up on risk assessment and risk management plan and audit opinions/ recommendations.

E. Major Project Issues and Problems Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).

Appendix 10 118

APPENDIX 10: SCHEDULE OF CONSULTATIONS

Activity Target Stakeholders

Responsible Unit/Persons

Time Frame Progress

PRE-PROJECT PHASE

Project orientation workshops for LGED staff, policy makers and other aligned agencies

Government officials, policy

makers and staff consisting

of representatives

from LGED and all relevant

agencies

PMCU supported by

PDSC

Year 1

Project orientation workshop for elected representatives from concerned city corporations and pourashavas

Elected representatives

PMCU supported by

PDSC

Year 1

At least 15 community consultations and 12 Focused Group Discussions (FGD) with at least 2 consultations and 1 FGD per subproject

Community members and

representatives

PMCU and PIU supported

by PDSC

Year 1 or within 1 year of

subproject identification

IMPLEMENTATION PHASE

Contractor and loan consultation workshops (twice a year)

Contractors and loan

consultants

PMCU supported by

PDSC

Year 1-5

Quarterly consultation with Grievance Redressal Committee (GRC) members at project sites

GRC members PMCU and PIU supported

by PDSC

Year 1-5

Consultations with affected persons on resettlement, entitlement, compensation issues, special protection measures for vulnerable; and with beneficiaries on anticipated project benefits, responsibilities and user charges if any proposed.

Affected persons and beneficiaries,

including females

PMCU and PIU supported

by PDSC

Throughout implementation

stage

POST IMPLEMENTATION PHASE

Participatory review meetings with various stakeholders

All stakeholders

PMCU supported by

PDSC

Once every month for six

months