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Project Administration Manual
Project Number: 41626 Loan and Grant Number: LXXXX, TAXXXX September 2010
India: Bihar Power System Improvement Project
Contents ABBREVIATIONS
I. PROJECT DESCRIPTION 1
II. IMPLEMENTATION PLANS 2A. Project Readiness Activities 2B. Overall Project Implementation Plan 3
III. PROJECT MANAGEMENT ARRANGEMENTS 3A. Project Implementation Organizations – Roles and Responsibilities 3B. Key Persons Involved in Implementation 4C. Project Organization Structure 4
IV. COSTS AND FINANCING 7A. Detailed Cost Estimates by Expenditure Category 7B. Allocation and Withdrawal of Loan Proceeds 8C. Detailed Cost Estimates by Financier 9D. Detailed Cost Estimates by Outputs/Components 10E. Detailed Cost Estimates by Year 11F. Contract and Disbursement S-curve 12G. Fund Flow Diagram 12
V. FINANCIAL MANAGEMENT 13A. Financial Management Assessment 13B. Disbursement 13C. Accounting 14D. Auditing 15
VI. PROCUREMENT AND CONSULTING SERVICES 16A. Advance Contracting and Retroactive Financing 16B. Procurement of Goods, Works and Consulting Services 16C. Procurement Plan 18D. Consultant's Terms of Reference 22
VII. SAFEGUARDS 22
VIII. GENDER AND SOCIAL DIMENSIONS 23
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 24
A. Project Design and Monitoring Framework 24B. Monitoring 27C. Evaluation 27D. Reporting 27E. Stakeholder Communication Strategy 28
X. ANTICORRUPTION POLICY 29
XI. ACCOUNTABILITY MECHANISM 29
XII. RECORD OF PAM CHANGES 30
Project Administration Manual Purpose and Process
The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The executing agency is wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by the executing agency of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At Loan Negotiations the borrower and ADB have agreed to the PAM and ensured consistency with the Loan agreement and Project Agreement. Such agreement is reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement and Project Agreement, the provisions of the Loan Agreement and/or Project Agreement shall prevail.
After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.
Abbreviations
ADB = Asian Development Bank ADF = Asian Development Fund AFS = audited financial statements BSEB = Bihar State Electricity Board CQS = consultant qualification selection DMF = design and monitoring framework EA = executing agency EIA = environmental impact assessment EMP = environmental management plan ESMS = environmental and social management system FAD = Finance & Accounting Department GACAP = governance and anticorruption action plan GDP = gross domestic product IARS = Imprest Account Reconciliation Statement ICB = international competitive bidding IEE = initial environmental examination IPP = indigenous people plan IPPF = indigenous people planning framework LAR = land acquisition and resettlement LIBOR = London interbank offered rate NCB = national competitive bidding NGOs = nongovernment organizations PAI = project administration instructions PAM = project administration manual PMU = project management unit QBS = quality based selection QCBS = quality- and cost based selection R&M = renovation and modernization RP = resettlement plan RRP = report and recommendation of the President to the Board SBD = standard bidding documents SGIA = second generation imprest accounts SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy TA = technical assistance TOR = terms of reference
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I. PROJECT DESCRIPTION
1. The Bihar Power System Improvement Project (the Project) will upgrade the electrical system, increase reliability and quality of supply, and address energy efficiency through physical electricity infrastructure investments in the state of Bihar, India, coupled with a capacity development component. Project investments include installation of new, as well as renovation and modernization (R&M) of existing transmission substations, installation of new, and reinforcement of existing transmission lines, and the strengthening of distribution systems in 7 identified towns in Bihar, to reduce system bottlenecks to allow increased power supply, increase system reliability, and to reduce technical and commercial power system losses. 2. Impact and Outcome. The Project's impact is a more sustainable state power sector providing better services to end users. The outcome is improved and expanded T&D capacity, increased T&D system efficiency, and enhanced quality and reliability of service in Bihar. Specifically, the investment components will focus on 7 districts within 4 of the 16 distribution circles in Bihar.1 3. Outputs. The Project's outputs include transmission and distribution system components, and a capacity development component. Transmission component outputs include (i) transmission expansion via 1 new 220/132 kV grid substation at Pusauli, (ii) 2 new 132/33 kV substations at Dhanha and Gangwara, respectively, (iii) erection of additional 132 kV bays at six existing substations, (iv) erection of additional 220 kV bays at the Dehri substation, (v) erection of new 33 kV bays - 10 numbers each at Gangwara and Dhanha (both at GSS end and remote end), and (vi) approximately 368 km of new transmission lines (consisting of 33, 132 and 220 kV lines). The Distribution component outputs include the following to be implemented in 7 towns within Bihar (footnote 7): (i) construction of new 33/11 kV substations together with R&M of existing 33/11 kV substations, (ii) construction of new 33 kV, 11 kV and low tension (LT) lines together with R&M of existing lines, (iii) installation of new distribution transformers together with capacity augmentation and R&M of existing transformers, and (iv) installation and/or replacement of consumer metering equipments. The capacity development component has been designed to assist the executing agency, Bihar State Electricity Board (BSEB), with project implementation support and construction supervision as this is their first loan with a multilateral development institution and though their procedures are thorough, as a new executing agency, familiarity with ADB guidelines and implementation processes is required for BSEB. This component also includes training in high voltage distribution systems (HVDS) and will fund feasibility studies related to a small pilot HVDS project, as well as other training programs on financial management and corporate and managerial planning.2
1 7 towns within 4 distribution circles are Bihar Sharif (located in Nalanda distribution circle), Motihari and Bettiah
(located in Motihari distribution circle), Samastipur and Begusarai (located in Samastipur distribution circle), and Ara and Buxar (located in Bhojpur distribution circle).
2 Further details on the capacity development component are in Appendix 1. In addition, the technical assistance (provided coincidental to the loan) provides implementation support consultants.
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II. IMPLEMENTATION PLANS
4. The Project implementation will be completed in 60 months, i.e., by 31 December 2015 and the loan closing will be 30 June 2016. The implementation plan is shown in Figure 1.
A. Project Readiness Activities
Months
Indicative Activities
1 2 3 4 5 6 7 Who responsible
Advance contracting actions X BSEB
Retroactive financing actions X BSEB and ADB
Establish project implementation arrangements X BSEB
ADB Board approval X ADB
Loan signing X ADB and DEA
Government legal opinion provided X DEA
Government budget inclusion X GOB
ADB = Asian Development Bank; BSEB = Bihar State Electricity Board; DEA = Department of Economic Affairs, Ministry of Finance, Government of India; GOB = Government of Bihar.
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B. Overall Project Implementation Plan
Sub Project Name4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
IFB
CA
IFB
CA
IFB
CA
IFB
CA
IFB
CA
IFB
CA
IFB
CA
IFB
CA
IFB = Invitatin for BidsCA = Contract Award
Package - H (GSS Package Pushauli & Bay
Extension Dehri)
Package - J ( 220 KV Line)
Package - I (132 & 33 KV Line)
Package - C Samastipur Circle (Samastipur &
Begusarai)Package - D Bhojpur Circle (Ara & Buxar)Package - G (GSS
Package Gangwara & Dhanha)
Preparation of Bid documents
2010 2011
Preparation of Bid documents
Preparation of Bid documents
Preparation of Bid documents
Preparation of Bid documents
Implementation Schedule
Preparation of Bid documents
Preparation of Bid documents
Preparation of Bid documents
2014 20152012 2013
Package - A Nalanda Circle (Biharshariff)
Package - B Motihari Circle (Motihari & Bettiah)
Implementation of Project
Implementation of Project
Implementation of Project
Implementation of Project
Implementation of Project
Implementation of Project
Implementation of Project
Implementation of Project
Sub-Component
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Training Programs Prepare Needs Prepare Implementation of Training ProgramsAssessment Programs
HVDS Prepare and conduct DPR Preparation of Pilot Projectstraining
HVDS = High Voltage Distribution SystemsNote: Equipment Purchases expected to be intermittent and subject to needs assessment mentioned above.
2015Implementation Schedule - Capacity Development Component
20142011 2012 2013
III. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations – Roles and Responsibilities
Project implementation
organizations Management Roles and Responsibilities
Executing Agency
• Bihar State Electricity Board
Overall responsibility for execution of the Investment Program and subprojects.
Project Management Unit Responsibility for the day-to-day coordination,
implementation, and administration of the investment components and capacity development component.
PMU headed by an Executive Engineer, ADB Cell Asian Development Bank Will undertake regular project reviews and facilitate
in project implementation
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B. Key Persons Involved in Implementation
Executing Agency Bihar State Electricity Board Officer's Name: Mr. G.K.S. Parmar
Position: EEE, ADB Cell, Head, PMU Telephone: (91) 612-2504084 Email address: [email protected]
Office Address: Vidyut Bhawan-II, Bailey Road, Patna-800 021 Bihar, India
ADB
South Asia Energy Division Staff Name: Yongping Zhai Position: Director, SAEN Telephone No.: (63-2) 632-5976 Email address: [email protected]
Mission Leader Staff Name: Andrew Jeffries Position: Senior Energy Specialist Telephone No.: (63-2) 632-5147 Email address: [email protected]
C. Project Organization Structure
5. BSEB will be the Executing Agency with overall responsibility for execution of the Project. BSEB has already appointed a project management unit with a lead manager and representatives responsible for transmission implementation, distribution implementation, procurement, information technology and human resources, finance and accounts, social safeguards and environment.
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Government of India
Government of Bihar (Department of Energy)
Bihar State Electricity Board
(BSEB)
Central Level
State Level
Executing Agency
(EA)
Project Management Unit (PMU)
- Transmission Implementation - Distribution Implementation - Procurement - Finance/Accounts - Social Safeguards - Environment
Project Level
Ministry of PowerMinistry of Finance (Department of
Economic Affairs)
Asian Development
Bank (ADB)
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6. Project Management Unit (PMU). The ADB Project Management Unit (PMU) Structure is as follows:
1. Mr. A.P Dwivedi, Chief Engineer, BSEB, In-charge ADB Cell, 2. Mr. G.K. S. Parmar, EEE, Nodal Officer, BSEB 3. Mr. J.P. Singh, EEE, Transmission BSEB 4. Ms. Smita Sinha, Land Acquisition Officer, BSEB 5. Mr. P. Mallik, AEE, Procurement, BSEB 6. Mr. R.S. Thakur, JEE, Contracts, BSEB 7. Mr. Rajiv Ranjan Singh, Dy. Director of Accounts, BSEB
Support Staff 8. Mr. Rajiv Ranjan Sinha, JAC, BSEB 9. Ms. Deepshikha, JAC, BSEB 10. Mr. Manish Kumar, CC, BSEB
7. BSEB will ensure that the PMU staff assigned to the Project shall be retained in their positions to the extent feasible, towards efficient implementation of the Project.
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IV. COSTS AND FINANCING
8. The total project cost of the Bihar Power System Improvement Project is estimated $153.9 million including contingencies and financing charges. ADB will finance $132.2 million, comprising and OCR loan. The investment and financing plan is summarized in Table 1.
A. Detailed Cost Estimates by Expenditure Category
Item USD MillionTotal % of Cost Base Cost
A. Investment Costs (Contract Packages) a
1. Civil works and erection 19.5 17%2. Equipment 87.2 76%3. Consultants
a. Project management, design and supervision 0.4 0%b. Capacity Development 1.0 1% Subtotal (A) 108.2 95%
B. Other Investment Costs 1. Land 0.6 1%2. Enviromental and social mitigation 1.5 1%3. Project management and construction supervision b 4.0 4%
Subtotal (B) 6.1 5%
Total Base Cost 114.3 100%
C. Contingencies1. Physical c 5.9 5%2. Price d 18.2 16%
Subtotal (C) 24.1 21%
D. Financing Charges During Implementation1. Interest during implementation e 15.2 13%2. Commitment charges 0.4 0%3. Front-end fees 0.0 0%
Subtotal (D) 15.6 14%
Total Project Cost (A+B+C+D) 153.9 135%a In mid 2010 prices.b Internal BSEB cost allocation capitalized to project account.c Computed at 5% of base costs.d Computed using ADB's forecasts of international and domestic inflation.e Interest during implementation has been been computed at the 5-year forward London interbank offered rate plus a spread of 0.3%.Source: Asian Development Bank estimates.
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B. Allocation and Withdrawal of Loan Proceeds
CATEGORY ADB FINANCING BASIS Total Amount Allocated for
ADB Financing Number Item [$]
Category
Percentage of ADB Financing from the Loan Account
1 Works 19,500,000 100 percent of total expenditure claimed 2 Equipment 87,200,000 100 percent of total expenditure claimed
3 Consulting Services
3A
Project Implementation Support
400,000 100 percent of total expenditure claimed
3B
Capacity / Institutional Building
300,000 100 percent of total expenditure claimed
4 Institutional Development and Strengthening
700,000 100 percent of total expenditure claimed
5 Unallocated 24,100,000 Total 132,200,000
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C. Detailed Cost Estimates by Financier
CostAmount % of Cost Amount % of Cost
Category Category
A. Investment Costs (Contract Packages) 1. Civil works and erection 19.5 19.5 100% 0.0 0%2. Equipment 87.2 87.2 100% 0.0 0%3. Consultants
a. Project management, construction supervision 0.4 0.4 100% 0.0 0%b. Capacity Development 0.3 0.3 100% 0.0 0% Subtotal (A) 107.5 107.5 100% 0.0 0%
B. Other Investment Costs1. Land 0.6 0.0 0% 0.6 100%2. Enviromental and social mitigation 1.5 0.0 0% 1.5 100%3. Other Capacity Development (Training) 0.7 0.7 100% 0.0 0%4. Overhead - Project management / supervision 4.0 0.0 0% 4.0 100%
Subtotal (B) 6.8 0.7 10% 6.1 90%
Total Base Cost 114.3 108.2 95% 6.1 5%
C. Contingencies1. Physical 5.9 5.9 100% 0.0 0%2. Price 18.2 18.2 100% 0.0 0%
Subtotal (C) 24.1 24.1 100% 0.0 0%
D. Financing Charges During Implementation1. Interest during implementation 15.2 0.0 0% 15.2 100%2. Commitment charges 0.4 0.0 0% 0.4 100%3. Front-end fees 0.0 0.0 0% 0.0 0%
Subtotal (D) 15.6 0.0 0% 15.6 100%
Total Project Cost (A+B+C+D) 153.9 132.2 85.9% 21.7 14%Source: Asian Development Bank estimates.
USD millionADB Government of Bihar
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D. Detailed Cost Estimates by Outputs/Components
($ million) Transmission Component Distribution Component Capacity Development
Item % of Cost % of Cost % of CostTotal Cost Amount Category Amount Category Amount Category
A. Investment Costs (Contract Packages) a
1. Civil works and erection 19.5 12.3 62.9% 7.2 37.1% 0.0 0.0%2. Equipment 87.2 47.7 54.7% 39.1 44.8% 0.5 0.6%3. Consultants
a. Project management, design and supervision 0.4 0.0 0.0% 0.0 0.0% 0.4 100.0%b. Capacity Development 1.0 0.0 0.0% 0.0 0.0% 1.0 100.0% Subtotal (A) 108.2 60.0 55.4% 46.3 42.8% 1.9 1.8%
B. Other Investment Costs 1. Land 0.6 0.6 100.0% 0.0 0.0% 0.0 0.0%2. Enviromental and social mitigation 1.5 1.5 100.0% 0.0 0.0% 0.0 0.0%3. Project management and construction supervision b 4.0 2.0 50.0% 2.0 50.0% 0.0 0.0%
Subtotal (B) 6.1 4.1 67.1% 2.0 32.9% 0.0 0.0%
Total Base Cost 114.3 64.1 56.1% 48.3 42.3% 1.9 1.7%
C. Contingencies1. Physical c 5.9 3.0 51.5% 2.8 47.7% 0.0 0.8%2. Price d 18.2 9.3 51.4% 8.6 47.4% 0.2 1.3%
Subtotal (C) 24.1 12.4 51.4% 11.4 47.4% 0.3 1.2%
D. Financing Charges During Implementation1. Interest during implementation e 15.2 9.4 61.7% 5.6 37.1% 0.2 1.2%2. Commitment charges 0.4 0.2 50.0% 0.2 48.7% 0.0 1.2%3. Front-end fees 0.0 0.0 0.0% 0.0 0.0% 0.0 0.0%
Subtotal (D) 15.6 9.6 61.4% 5.8 37.4% 0.2 1.2%
Total Project Cost (A+B+C+D) 153.9 86.0 55.9% 65.5 42.6% 2.4 1.6%
a In mid 2010 prices.b Internal BSEB cost allocation capitalized to project account.c Computed at 5% of base costs.d Computed using ADB's forecasts of international and domestic inflation.e Interest during implementation has been been computed at the 5-year forward London interbank offered rate plus a spread of 0.3%.Source: Asian Development Bank estimates.
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E. Detailed Cost Estimates by Year
($ million)Item
Total Cost Year 1 Year 2 Year 3 Year 4 Year 5
A. Investment Costs (Contract Packages) a
1. Civil works and erection 19.51 1.95 3.90 5.85 5.85 1.952. Equipment 87.24 8.72 17.45 26.17 26.17 8.723. Consultants
a. Project management, design and supervision 0.44 0.04 0.09 0.13 0.13 0.04b. Capacity Development 0.99 0.10 0.20 0.30 0.30 0.10 Subtotal (A) 108.18 10.82 21.64 32.45 32.45 10.82
B. Other Investment Costs 1. Land 0.62 0.31 0.31 0.00 0.00 0.002. Enviromental and social mitigation 1.46 1.46 0.00 0.00 0.00 0.003. Project management and construction supervision b 4.00 0.40 0.80 1.20 1.20 0.40
Subtotal (B) 6.08 2.17 1.11 1.20 1.20 0.40
Total Base Cost 114.26 12.99 22.75 33.65 33.65 11.22
C. Contingencies1. Physical c 5.90 0.00 0.00 0.00 4.42 1.472. Price d 18.16 0.00 0.00 0.00 13.62 4.54
Subtotal (C) 24.06 0.00 0.00 0.00 18.04 6.01D. Financing Charges During Implementation
1. Interest during implementation e 15.22 1.52 3.04 4.57 4.57 1.522. Commitment charges 0.39 0.04 0.08 0.12 0.12 0.043. Front-end fees 0.00 0.00 0.00 0.00 0.00 0.00
Subtotal (D) 15.61 1.56 3.12 4.68 4.68 1.56
Total Project Cost (A+B+C+D) 153.93 14.55 25.87 38.34 56.38 18.79
% of Total Project Costs 100.0% 9.5% 16.8% 24.9% 36.6% 12.2%a In mid 2010 prices.b Internal BSEB cost allocation capitalized to project account.c Computed at 5% of base costs.d Computed using ADB's forecasts of international and domestic inflation.e Interest during implementation has been been computed at the 5-year forward London interbank offered rate plus a spread of 0.3%.Source: Asian Development Bank estimates.
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F. Contract and Disbursement S-curve
Cumulative Contract Awards & Loan Disbursements
0
20
40
60
80
100
120
140
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
$ M
M
Contract Awards Loan Disbursements
G. Fund Flow Diagram
Payment ClaimBihar State Electricity
Board (BSEB)(Executing Agency)
Asian Development Bank
Suppliers
Supplier’s Bank
(Commitment Procedure)(Direct Payment Procedure)
Document Flow
Withdrawal application
(Reimbursement and/or Imprest
Account Procedures)
(Reimbursement and/or Imprest
Account Procedures)
Payment ClaimBihar State Electricity
Board (BSEB)(Executing Agency)
Asian Development Bank
Suppliers
Supplier’s Bank
(Commitment Procedure)(Direct Payment Procedure)
Document Flow
Withdrawal application
(Reimbursement and/or Imprest
Account Procedures)
(Reimbursement and/or Imprest
Account Procedures)
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V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
9. The present financial management of BSEB was reviewed using ADB's financial management assessment questionnaire and field interviews. The financial management arrangements and countermeasures proposed by BSEB are considered appropriate for proper project financial management, reporting, and implementation of the program. 10. A financial management assessment of BSEB was carried out using ADB’s financial management assessment questionnaire to review the capacity of the existing BSEB to manage financial aspects. The responses by BSEB to the questionnaire has revealed that BSEB has currently satisfactory polices and procedures for accounting, budgeting and auditing activities while there are several areas to be further strengthened. In addition, uncertainty exists in terms of the unbundling process. The process for procurement of goods and spares is robust and is carried out in direct supervision of senior officers. There are process to ensure no conflict of interest or fraud during the procurement of goods and spares. 11. The existing organization structure of Finance & Accounting Department (FAD), in charge of financial management, is adequate and all the officers are well qualified although staff shortage is observed. There is a segregation of duties between different personnel regarding (i) authorization to execute a transaction, (ii) recording of the transaction, and (iii) custody of assets involved in the transaction. 12. BSEB has designed and managed its projects on its own with limited external consultants. The regional level officers are responsible for the implementation of the project, while the monitoring of the project is carried out at the Corporate Center. The regional level officers submit a quarterly progress report to facilitate the monitoring of the physical progress of the project. All the payments and procurement for all the projects are carried out by the finance department and the Central Purchase Committee at the corporate center. 13. Key Risks and mitigating measures. Key risks include financial management risks, including the slow nature of financial reporting due to lack of computerization. This will be mitigated through the strengthening internal control systems supported with modern computer-based financial management system to facilitate efficiency and accountability. This will be addressed through the capacity development component.
B. Disbursement
14. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time),3 and detailed arrangements agreed upon between the Government and ADB. 15. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),4 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at
3 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf4 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
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Appendix 5 of the SPS. 16. Disbursement of loan funds under the Project will be mainly for the supply of materials, construction civil works, and for consulting services and small equipment purchases under the capacity development component. ADB's commitment and direct payment procedures for supply of materials and reimbursement procedures for civil works will be utilized. ADB’s statement of expenditures will be used to reimburse eligible expenditures, which will be applicable to individual payments of $100,000 or less. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.5
17. For imprest fund procedures applicable to consulting services and small equipment purchases under the capacity development component, separate imprest accounts should be established and maintained by funding source. The aggregate of the initial amount to be deposited and maintained thereafter at any point of time, into the imprest accounts shall not exceed the lower of (i) the estimated expenditure to be financed from the imprest accounts for the subsequent 6 months of Project implementation, or (ii) the equivalent of 10% of the Loan amount. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet6 setting out the estimated expenditures for the first six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the borrower will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the EA’s records.7
18. 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 borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. The borrower is to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.
C. Accounting
19. The executing agency will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles and practices or those prescribed by the Government's accounting laws and regulations.
5 Checklist for SOE procedures and formats are available at:
http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdfhttp://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xlshttp://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xlshttp://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xlshttp://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls
6 Available in Appendix 29 of the Loan Disbursement Handbook. 7 Follow the format provided in Appendix 30 of the Loan Disbursement Handbook.
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D. Auditing
20. The executing agency will cause the detailed consolidated project accounts to be audited in accordance with International Standards on Auditing and/or in accordance with the Government's audit regulations by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within 6 months of the end of the fiscal year by the executing agency. The annual audit report will include a separate audit opinion on the use of the imprest accounts, SGIA, and the SOE procedures as applicable. The Government and the executing agency have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. ADB reserves the right to review the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. For revenue generating projects only, ADB requires audited financial statements (AFS) for each executing and/or implementation agency associated with the project.
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VI. PROCUREMENT AND CONSULTING SERVICES
A. Advance Contracting and Retroactive Financing
21. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time) (ADB’s Procurement Guidelines)8 and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).9 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower and executing agency have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the Project. 22. Advance contracting. In order to expedite project implementation, the Government of Bihar has requested approval for advance contracting actions for the procurement of goods and works. The steps to be concluded in advance include preparation of bidding documents, bidding and bid evaluation for both procurement of goods and civil work portions, and for the recruitment of consultants. 23. Retroactive financing. Except as otherwise agreed with ADB, the expenditures incurred for equipment, civil works, and consulting services will be eligible for retroactive financing, provided that these are incurred before the effectiveness of the related loan agreement, but not earlier than 12 months preceding the signing of the related loan agreement, and as long as they do not exceed an amount of 20% of the individual loan.
B. Procurement of Goods, Works and Consulting Services
24. An assessment of the EA’s procurement capacity was conducted including the completion of the procurement capacity questionnaire. EA has good experience in terms of local procurement for Government (India). The procurement process for the local consulting services is handled by the Procurement Unit, BSEB in accordance with its internal procedures, which appears to be acceptable to ADB in transparency and accountability. A Consultant Selection Committee is convened by Head, Procurement Unit to evaluate proposals from consultants to provide recommendation for final decision of the Board. Review of process control and oversight is satisfactory for local procurement of goods and services; for instance, bidding documents, advertisement of an invitation for bids, evaluation reports, and notice of award, and award of contracts are decided by the Board of Directors in accordance with their internal transparent procedures. BSEB keeps the project records and files for 10 years, including procurement documents, i.e. signed original contracts and evaluation reports, which are kept for reference and inspection, if necessary. It is considered that an established and well functioning system is in place for record keeping and audit. Since this is the first ADB loan in the energy sector in Bihar, and this is a new EA which has limited experience in international procurement, it has been assessed that consultant support is warranted to assist in procurement matters. Consulting services are being provided under an existing TA and an additional procurement specialist will be hired under the piggy-back TA to assist the PMU. 25. All procurement of goods and works will be undertaken in accordance with ADB’s
8 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf9 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf
17
Procurement Guidelines. International Competitive Bidding (ICB) procedures will be followed for the procurement of material packages.
26. International competitive bidding procedures will be used for supply and civil works contracts10 estimated to cost $10 million or more, and supply contracts valued at $1,000,000 or higher. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000.11 27. 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. 28. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants.12 The terms of reference for all consulting services are detailed in Section D. 29. Consultant support is warranted for project implementation support. Adequate national consulting firm capacity exists within India to conduct this work. Furthermore, hiring national consultants will ensure loan funds required for consulting services are minimized. Individual Consultants/or a consulting firm (Construction Management and Supervision Consultant) will be recruited to provide consulting services for BSEB for project supervision and construction planning and management to ensure the most efficient, timely and economical implementation of each project component. Terms of Reference (TORs) are included in Appendix 1. An estimated 58 person-months (58 national) of consulting services are required under the loan.13 If a firm is to be hired, the firm will be engaged using the quality- and cost-based selection (QCBS) method and simplified technical proposal. Individual experts may also be recruited based on bio-data submitted in response to specific terms of reference for assignment.
10 Including erection and testing. 11 The BSEB website (www.bseb.bih.ni.in) will contain links regarding procurement and other project related matters. 12 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/ 13 This excludes the estimated 34 person-months of consulting services to be funded via the accompanying technical
assistance.
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C. Procurement Plan
Basic Data Project Name: Bihar Power System Improvement Project Country: INDIA Executing Agency: Bihar State Electricity Board Loan Amount: $ 132.2 million Loan (Grant) Number: 41626 Date of First Procurement Plan : 20 June 2010 Date of this Procurement Plan: 16 September
2010
I. Process Thresholds, Review and 18-Month Procurement Plan
1. Project Procurement Thresholds
30. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.
Procurement of Goods and Works Method Threshold International Competitive Bidding (ICB) for Works $10,000,000 and more International Competitive Bidding for Goods $1,000,000 and more National Competitive Bidding (NCB) for Works* Less than $10,000,000 National Competitive Bidding for Goods* Less than $1,000,000 Shopping for Works Less than $100,000 Shopping for Goods Less than $100,000
Recruitment of Consultants
Threshold National Consulting Firms Less than $600,000
*While currently the Project does not include NCB for Works or Goods, this mode is included here in case it is required during implementation. In which case, eligibility of the same will be subject to compliance with ADB’s requirements as reflected in paragraph 4 of Schedule 4 to the Loan Agreement."
2. ADB Prior or Post Review
31. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project. Procurement Method
Prior or Post Comments
Procurement of Goods and Works ICB Works Prior ICB Goods Prior NCB Works Post NCB Goods Post Shopping for Works Post Shopping for Goods Post Recruitment of Consulting Firms
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Procurement Method
Prior or Post Comments
Quality- and Cost-Based Selection (QCBS) Prior Quality-Based Selection (QBS) Prior Other selection methods: Consultants Qualifications (CQS), Least-Cost Selection (LCS), Fixed Budget (FBS)
Prior
Recruitment of Individual Consultants Individual Consultants Prior
3. Goods and Works Contracts Estimated to Cost More Than $1 Million
32. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description
Contract Value
($million) Procurement
Method Prequalification of Bidders (y/n)
Advertisement Date
(quarter/year) CommentsReconstruction and Modernization of Distribution System
Package A-for Bihar Sharif Town of Nalanda Electricity Supply Circle
8.6
ICB(Turnkey)
No
Fourth Quarter
2010
Financed by ADB
Package B-for Motihari and Bettiah Towns of Motihari Electricity Supply Circle
7.1
ICB(Turnkey)
No
Fourth Quarter
2010
Financed by ADB
Package C-for Samastipur and Begusarai Towns of Samastipur Electricity Supply Circle
12.3
ICB(Turnkey)
No
Fourth Quarter
2010
Financed by ADB
Package D-for Ara and Buxar Towns of Bhojpur Electricity Supply Circle
11.0
ICB(Turnkey)
No
Fourth Quarter
2010
Financed by ADB
Transmission Works
Package G- Construction of new 132 kV Sub stations Dhanha & Gangwara and erection of additional 132 kV bays at the existing sub stations, Bettiah, Sasaram, Mohania, Dinara, Lakhisarai, Seikpura
9.3
ICB(Turnkey)
No
Fourth Quarter 2010
Financed by ADB
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Package H- Construction of new 220 kV Sub stations, Pusauli and erection of additional 220 kV bays at existing Sub station
13.0
ICB(Turnkey)
No
Fourth Quarter
2010
Financed by ADB
Package I- Construction of 132 kV Lines (202 km) and 33 kV Lines ( 40 kms) from 132 kV Sub stations
12.2
ICB(Turnkey)
No
Fourth Quarter 2010
Financed by ADB
Package J- Construction of 220 Kv Lines (86 kms)
9.3
ICB(Turnkey)
No
Fourth Quarter
2010
Financed by ADB
4. Consulting Services Contracts Estimated to Cost More Than $100,000
33. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description
Contract Value
Recruitment Method1
Advertisement Date
(quarter/year)
International or National Assignment Comments
Construction Supervision
$409,000 QCBS or Individual
4th Qtr. 2011 National
HVDS Services $302,000 QCBS or Individual
1st Qtr. 2011 National
Other Training $280,000 QCBS or Individual
1st Qtr. 2011 National
1 When QCBS is utilized, the quality: cost ratio will be 80:20.
5. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000
34. The following table groups smaller-value goods, works and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description
Value of Contracts
(cumulative) Number of Contracts
Procurement / Recruitment
Method Comments MRT Lab Testing
Equipment & other misc. equipment
$400,000 four Shoppinga
Computers and IT Equipment
$30,000 two Shoppinga
a Individual contracts to be less than $100,000 each.
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II. Indicative List of Packages Required Under the Project 35. The following table provides an indicative list of all procurement (goods, works and consulting services) over the life of the project. Contracts financed by the Borrower and others should also be indicated, with an appropriate notation in the comments section.
General Description
Estimated Value
(cumulative) Rs mln $ mln
Estimated Number of Contracts
Procurement Method
Domestic Preference Applicable Comments
Reconstruction and Modernization of Distribution System
Package A-for Bihar Sharif Town of Nalanda Electricity Supply Circle
56.5 12.3
1
ICB
Yes
Package B-for Motihari and Bettiah Towns of Motihari Electricity Supply Circle
46.2 10.1
1
ICB
Yes
Package C-for Samastipur and Begusarai Towns of Samastipur Electricity Supply Circle
80.3 17.5
1
ICB
Yes
Package D-for Ara and Buxar Towns of Bhojpur Electricity Supply Circle
72.3 15.7
1
ICB
Yes
Transmission Works Package G- Construction of new 132 kV Substations at Dhanha & Gangwara. Erection of additional 132 kV bays at the existing substations, Bettiah, Sasaram, Mohania, Dinara, Lakhisarai, Seikpura
61.15 13.3
1
ICB
Yes
Package H- Construction of new 220 kV Sub stations, Pusauli and erection of additional 220 kV bays at existing Sub station
85.29 18.5
1
ICB
Yes
Package I- Construction of 132 kV Lines (202 km) and 33 kV Lines ( 40 kms) from 132 kV Sub stations
80.00 17.4
1
ICB
Yes
Package J- Construction of 220 Kv Lines (86 kms)
61.28 13.3
1
ICB
Yes
Capacity Development Related Equipment Packages
19.78 0.43
TBD
Shopping
Yes
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General Description
Estimated Value
(cumulative)
Estimated Number
of Contracts
Recruitment Method
Type of Proposal Comments
Consulting Services $990,300 TBDa QCBS or
Individual TBD
a If firms are recruited, up to 3 contracts are expected. If Individuals are recruited, up to 10 contracts are expected.
D. Consultant's Terms of Reference
36. Individual consulting services are to be provided and funded by the technical assistance grant to assist the PMU in implementation activities.14 In addition, construction supervision consultants are included in the capacity development component of the loan, with indicative terms of reference shown in Appendix 1.
VII. SAFEGUARDS
37. The EA, BSEB, is responsible to undertake the Project in accordance with the initial environment examination (IEE) and implement the environmental management plan (EMP), and the resettlement plan (RP). Land acquisition will be required for the construction of the 3 transmission substations. These require total acquisition of 25.9 acres of land, of which about 10.2 acres are privately owned, affecting 48 households. The construction of transmission lines will not require any permanent land acquisition however impact on crop and livelihood sources will be mitigated as per the resettlement plan, which has a budget of 31.636 million rupees (about $681,802) to accomplish compensation and income restoration activities. Consultant services will be provided via the technical assistance grant to assist BSEB with these requirements (reference Appendix 1). 38. The Bihar State Electricity Board (BSEB) Project Management Unit (PMU) will be responsible to coordinate and implement the entire social, environment and resettlement activities including the implementation of the RP efficiently. The PMU would have a dedicated resettlement officer for the same. Further, to assist the resettlement officer in carrying out his/her responsibilities effectively, a local NGO would be hired if required. The main scope of work of the NGO would be to closely work with the affected persons and communities so as to effectively implement the resettlement plan. 39. Safeguards monitoring: To monitor all activities enumerated in the environment, resettlement actions plans and report the same, a two tier monitoring system would be operationalized. This would include both internal and external monitoring. The first tier will be internal monitoring, would be the responsibility of the RO as per the agreed and approved resettlement plan. The reports of the internal monitoring would be prepared semi-annually and submitted to BSEB and ADB for review and approval.
14 Details are available as a linked document to the RRP.
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40. At the second tier, an external expert, would be engaged by the BSEB in consultation with ADB, to monitor the progress of the implementation of the resettlement plan. The external expert/qualified NGO would monitor the same using the specific indicators developed in line with the resettlement objectives and activities and verify the claims of the internal monitoring reports. The external expert/qualified NGO would prepare the report of monitoring annually and submit the same to BSEB and ADB for review and approval. 41. Monitoring reports prepared both internally and by the external expert/qualified NGO would be disclosed in a timely manner, in an accessible place and in a form and language(s) understandable to affected persons and other stakeholders as well as up loaded on the BSEB and ADB websites.15
VIII. GENDER AND SOCIAL DIMENSIONS
42. There are no significant impacts on gender (either positive or negative) associated with this project. However, regarding gender issues, a measure taken is that the loan agreements include a standard assurance related to core labor standards for contractors, including gender equal pay for equal work, an awareness program on HIV and sexually transmitted diseases and human trafficking. This is also specified in the summary poverty reduction and social strategy (SPRSS) report which is a linked document to the RRP.
15 Progress reports on land acquisition and external monitoring reports shall be submitted semiannually.
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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND
COMMUNICATION
A. Project Design and Monitoring Framework
Design Summary Performance Targets and Indicators with Baselines
Data Sources and Reporting Mechanisms
Assumptions and Risks
Impact Assumptions Increase of in-state electricity sales to all consumer categories to match growing demand relative to baseline of 5,324.64 GWh a by 2018.
BSEB (or successor power sector utilities’) annual reports. (Also found in BERC tariff orders.)
A more sustainable state power sector providing better services to end users
Government of Bihar remains committed to power sector reforms and institutional improvement. Political and socio-economic conditions in Bihar remain stable
Outcome Assumptions Transmission system in Bihar will be able to handle an additional 270 MW b of additional peak demand in the 4 distribution circles covered by the project by end 2015. Distribution system in Bihar will be capable of transmitting an additional 472,579 MWh c to consumers annually due to distribution capacity enhancement in the 4 distribution circles covered by the project by end 2015.
BSEB (or successor power sector utilities’) annual reports. (Also found in BERC tariff orders.) (Secondary source: Construction Supervision consultant reports)
Technical and commercial electrical energy losses reduced by at least 3% from current level, by 2016 in the 4 distribution circles covered by the project.
BSEB (or successor power sector utilities’) annual reports. (Also found in BERC tariff orders, and Central Electricity Authority Annual Electricity Review.)
Improved and expanded transmission and distribution (T&D) capacity, increased T&D system efficiency, and enhanced quality and reliability of service in Bihar.
Operation and maintenance of the installations are carried out according to standard requirements.
Risks Capacity constraints within BSEB cause delays
Outputs Assumptions New Transmission Substations: • 1 new 220/132 kV Grid
substation at Pusauli. • 2 new 132/33 kV substations (at Dhaha and Gangwara)
BSEB (or successor power sector utilities’) annual reports. (Secondary sources: construction supervision consultant reports, loan review missions.)
1. Transmission expansion: a. Expansion of transmission substation capacity
Transmission Substation Upgrades – Bay extensions: • 2 new 220 kV bays at
existing substations
Counterpart funds for timely project implementation are made available. Timely approval of contract awards by BSEB. Timely land acquisition for transmission substation sites. Risks Increase in prices of raw
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Design Summary Performance Targets and Indicators with Baselines
Data Sources and Reporting Mechanisms
Assumptions and Risks
• 6 new 132 kV bays at existing substations
Transmission Lines: Construction of 220 kV lines (approx. 86 km) • Dehri - Pusauli (new) DCDS
line • LILO of Double Circuit
Sasaram - Ara line at Pusauli (New)
BSEB (or successor power sector utilities’) annual reports. (Secondary sources: construction supervision consultant reports, loan review missions.)
Construction of 132 kV lines (approx. 202 km) • LILO of Darbhanga -
Pandaul line at Gangwara • Pusauli (New) - Sasaram
DCSS line • Pusauli (New) - Bhabhua
DCSS line • Pusauli (New) - Dinara
DCSS line • Lakhisarai - Seikhpura
DCSS line • Bettiah - Dhanha DCSS line
b. Construction of new transmission lines.
Construction of 33 kV lines (approx. 40 km) • New line from 132 kV
substation Dhanha • New line from 132 kV
substation Gangwara
materials exceed contingency and inflation forecasts. Construction delays due to poor contractor performance.
Assumptions Distribution Substations: • 4 new 33/11 kV substations
(at Bettiah, Samistapur, Begusarai & Ara)
• R&M of 12 existing 33/11 kV Substations (Motihari, Bettiah, Begusarai, 3 at Bihar Sharif, 2 at Samistapur, 2 at Ara and 2 at Buxar)
BSEB (or successor power sector utilities’) annual reports. (Secondary sources: construction supervision consultant reports, loan review missions.)
2. Distribution rehabilitation and expansion: a. Increased distribution system capacity in the 7 towns in Bihar (via installation and R&M of distribution substations and distribution transformers) b. Increased distribution line capacity (via re-conductoring of over-loaded 33 kV and 11 kV lines and installation new lines)
Distribution Lines • New 33kV lines: 98 km • New 11kV lines: 85 km • New LT lines: 165 km • R&M of 33kV lines: 76 km • R&M of 11kV lines: 478 km • R&M of LT lines: 478 km Distribution Transformers • Installation of 604 new transformers (within the 7 identified towns)
BSEB (or successor power sector utilities’) annual reports. (Secondary sources: construction supervision consultant reports, loan review missions.)
Counterpart funds for timely project implementation are made available. Timely approval of contract awards by BSEB. Risks Increase in prices of raw materials exceed contingency and inflation forecasts. Construction delays due to poor contractor performance.
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Design Summary Performance Targets and Indicators with Baselines
Data Sources and Reporting Mechanisms
Assumptions and Risks
c. Increased consumer metering.
• R&M of 916 existing distribution transformers (within the 7 identified towns)
Consumer Metering • Installation of static meters
- Single Phase: 100,913 - DT: 1804 - CT Operated: 288 - HT Consumers: 47 - Computerized billing and consumer indexing (7 lots)
(same sources as above)
3. Non-Physical Investments a. Project implementation support b. Institutional and/or capacity development of BSEB
• Implementation consultant contracts processed, consultants hired and mobilized.
• Capacity building activities completed
Quarterly project progress reports, loan review missions, consultant reports.
Assumptions Timely consultant hiring process Executing agency staff assumes ownership of the capacity development programs
Activities with Milestones Inputs
Loan
ADB: $132.2 milliond
Government $21.7 million
1.0 Transmission & Distribution Investments: 1.1 Completion of detailed project reports: May 2010 1.2 Completion of environment and social safeguards work: August 2010 1.3 Commencement of procurement activities: issuance of bidding documents: January 2011. 1.4 Contract awards: July 2011. 1.5 Commencement of Land acquisition for substations: June 2010. 1.6 Commencement of construction: October 2011. 1.7 Completion of works: December 2015. 2.0 Capacity Development: 2.1 Commencement of consultant selection process: December 2010 2.2 Consultant hiring: March 2011 (April 2011 for firms) 2.3 Consultant mobilization: April 2011 2.4 Completion of services: December 2015
Technical Assistance Grant
ADB: $300,000e
ADB = Asian Development Bank; BERC = Bihar Electricity Regulatory Commission; BSEB = Bihar State Electricity Board; CT = current transformer; DCDS = double circuit double strung; DCSS = double circuit single strung; DT = distribution transformer; GOB = Government of Bihar; GWh = gigawatt hours; HT = high tension (e.g. high voltage); km = kilometer; kV = kilo volt; LILO = line in-line out; LT = low tension (e.g. low voltage); MW = megawatt; MWh =
egawatt hours; R&M = renovation and modernization; Rs. = Indian Rupees; T&D = transmission and distribution. m a Baseline GWh sold in FY2008 actual data from the BSEB audited accounts. b Accomplished by additional 500 MVA of substation capacity provided by the Project x 0.9 power factor, and
adjusted by 60% to account for systemic considerations of the Bihar grid. c Calculated benefits from distribution substation capacity additions and renovation and modernization of existing
distribution substation capacity resulting from the project’s distribution component investments. d This loan amount includes funds for an input of 58 person-months of consulting services. e This technical assistance includes funds for an input of 34 person-months of consulting services. Source: Asian Development Bank estimates.
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B. Monitoring
43. A loan inception mission will ensure that all administrative matters pertaining to each subproject are properly in place and working relationships are established between concerned ADB staff and BSEB staff. Details relating to project performance monitoring, report requirements, accounting system, compliance with loan covenants, disbursement procedures and withdrawal applications will be clarified at this time. 44. Project performance monitoring. The quarterly progress reports to be prepared by BSEB and submitted to ADB within 30 days of the end of each quarter will include information on implementation progress, contracting and disbursement figures, as well as compliance matters. These quarterly reports will provide information necessary to update ADB's project performance reporting system.16 Progress on project outputs will be reported, as well as progress on the performance target indicators as listed in the DMF. Third party reports such as tariff orders, utility company annual reports, and other government reports covering the energy sector can also provide information on progress of certain performance target indicators as listed in the DMF. 45. Compliance monitoring: The quarterly reports will cover compliance matters related to loan covenants. Review missions will review and discuss compliance matters with the EA, including any adjustments to the compliance reporting process or for corrective actions, if required. 46. Safeguards monitoring: The quarterly reports will also include sections on the monitoring of environment and social safeguards matters.
C. Evaluation
47. ADB will field regular review missions every 6 months to review the status of contract awards, disbursements, physical progress, and implementation of the environmental management plans and resettlement plans. Within 6 months of physical completion of the Project the executing agency will submit a project completion report to ADB.17
D. Reporting
48. The executing agency will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency AFSs, together with the associated auditor's report, should be adequately reviewed.
16 ADB's project performance reporting system is available at:
http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool17 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-
Sector-Landscape.rar
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E. Stakeholder Communication Strategy
49. Consultation will be carried out during all stages of the project. At the project preparation stage, the BSEB with TA consultants have carried out consultations with the key stakeholders at the three Grid substations sites and nearby villages which falls in the corridor of transmission line. 50. Consultations were carried out with affected households, vulnerable displaced persons and panchayat members of the village. These consultations and disclosure activities would also be carried out during project implementation. 51. Once the Resettlement Plan would be endorsed by BSEB and approved by ADB, the summary of the same including the Entitlement matrix, and grievance redress mechanisms would be disclosed to all the relevant stakeholders in a timely manner, in an accessible place and in a form and language(s) understandable to them. Additionally the reports of the information disclosure workshop would be uploaded on the websites of the BSEB and ADB. 52. Prior to the implementation of the RP, regular consultation would be held with all the stakeholders to detail out a RP implementation strategy. These would be facilitated by the SEU assisted by the local NGO. It would be imperative for BSEB member/s to participate in each of these consultations. 53. The Stakeholder Communications Strategy is described in the following table.
Table: Stakeholder Communication Strategy
Project information to be communicated
Means of Communication
Responsibility Audience Frequency
Report and Recommendation of the President (RRP) with linked documents
ADB website ADB ADB, GOI, GOB, Development Partners, Civil Society, Individuals
Once
Project information while planning/ designing
Discussions and stakeholder consultations
ADB/BSEB Project stakeholders and beneficiaries
Regular intervals during planning and design
Status of implementation during construction
Reports BSEB/ Contractors/ Consultants
ADB, GOI, GOB, Development Partners, Civil Society, Individuals
Every quarter
Project Performance Reports and Project Information Documents
ADB website ADB ADB, GOI, GOB, Development Partners, Civil Society, Individuals
Every quarter
Project completion report
ADB website ADB ADB, GOI, GOB, Development Partners, Civil Society, Individuals
Once
ADB = Asian Development Bank; BSEB = Bihar State Electricity Board; GOB = Government of Bihar; GOI = Government of India.
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X. ANTICORRUPTION POLICY
54. The Government, the State, and the EA are advised of ADB’s Anticorruption Policy (1998, as amended to date). Consistent with its commitment to good governance, accountability and transparency, implementation of the Project shall adhere to ADB’s Anticorruption Policy. ADB reserves the right to review and examine, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. In this regard, investigation of Government officials, if any, would be requested by ADB to be undertaken by the Government. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the Loan Regulations and the bidding documents. In particular, all contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA and all contractors, suppliers, consultants, and other service providers as they relate to the Project.
XI. ACCOUNTABILITY MECHANISM
55. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.18
18 For further information see: http://compliance.adb.org/.
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XII. RECORD OF PAM CHANGES
56. All revisions/updates during course of implementation should retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.
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Appendix 1
Capacity Development Component
A. Introduction 1. The capacity development component of the loan will provide construction supervision, training in high voltage distribution systems (HVDS), fund feasibility report preparation for a small pilot HVDS system, as well as other training to be designed by the institutional specialist and human resources cum management training specialist to be provided as part of the concurrent technical assistance. The cost estimates for this component are shown below.
Capacity Development Component Budget U.S. $Construction Supervision 408,386 HVDS 301,961 Training Costs a 700,000 Equipment Costs (MRT Labs) 400,000 IT Infrastructure costs for divisions 30,000 Contingency 59,653 Total 1,900,000 a Includes $280,000 of consultant costsSource: Asian Development Bank staff estimates
B. Construction Management and Supervision Consultants
OUTLINE TERMS OF REFERENCE (INDICATIVE)
2. The proposed Bihar Power System Improvement Project (the Project) has investment components related with transmission systems, sub-station, distribution and capacity building. Individual Consultants/or a consulting firm (Construction Management and Supervision Consultant) will be recruited provide consulting services for BSEB for project supervision and construction planning and management to ensure the most efficient, timely and economical implementation of each project component. The plan should take into account the engineering technology required, the resources and costs involved, and the critical time frame for the completion of each project. 3. The team composition of the national experts along with their estimated person months (intermittent during 3 year period) is shown in the table below:
Consultants Team Composition
A. Consultants No. of Experts Total P-M
1. Team Leader/Power Engineer 1 National 6 2. Transmission Engineer 1 National 9 3. Distribution Engineer – 2 Divisions 1 National 12 4. Distribution Engineer – 2 Divisions 1 National 12
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Total 4 National 39
4. If a consulting firm is recruited, it will done using the quality and cost based selection method. The proposal will be full technical proposal.
I. Scope of Works 5. The primary responsibilities of the Construction Management and Supervision Consultants is to advise and assist the EA/PMU in management of sub-projects, providing technical support, administration and implementation of the Loan financed projects. The Terms of Reference for the Consultants are provided herein:
a. Team Leader (6 person-months) 6. The Team Leader/Power Engineer must be primarily a qualified power engineer having wide experience in examining structural designs of super structures (towers) and buildings and their foundations. He should preferable have working knowledge of computer aided software for checking and design calculations. He should have minimum 15 years of experience in design and construction of large construction work and at least 5 years of experience in transmission line related projects. Apart from above, he should have at least 5 years experience in externally aided projects of similar nature in managing and monitoring. He should also have substantial work experience in similar geographical, climatic and cultural conditions as that of EA’s state. 7. The Team Leader will undertake the following:
(i) Overall responsibility of supervising his team of construction supervision consultants, coordinating and communicating with PMU and preparing regular project reports. (ii) Project Management: Procedures- review the project management procedures of the EA for the implementation of the projects and, as appropriate recommend changes and or new procedures in keeping with ADB and modern international practice. (iii) Contract Management: Assist and work hand in hand with the PMU in management of the contracts for civil works, plant and equipment. Advice on quality control programs, checking of design details of the structures and civil construction (submitted by contractors) and speedily advising on acceptability of such designs and suggesting corrective measures to be undertaken. (iv) Design Checking and Clarification: Checking for transmission line tower, structures, civil buildings, foundations related to transmission lines and substations subprojects as well provide guidance on distribution lines. Provide recommendation for approval of all civil, structural designs and drawings pertaining to transmission lines and substations; and distribution lines and substations and PMU. (v) Project Scheduling and Monitoring: Review project schedules submitted by the contractors, analyze progress and suggest corrective measures at management level.
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(vi) Monitoring and Reporting, Project Disbursement: Quarterly updating and comparative reporting on overall project disbursement and advising PMU/ADB on rescheduling of budget against subprojects. vii. Coordination, Supervision and reporting of the work by the three experts (listed below) to PMU and ADB. Coordinate with other TA funded consultants as well as other Loan funded consultants and activities such as equipment (MRT labs etc.)
b. Transmission Engineer (9 person-months) 8. The Transmission Engineer will have at least a Bachelor’s degree in Electrical Engineering with wide exposure in high voltage transmission and transformation system and having 10 years of working experience in execution of transmission and transformation projects in developing countries. Experience in India is a basic requirement and experience of other Asian countries may be added preference. 9. The Transmission Engineer will undertake the following: (i) Assist Team Leader/PMU, as a sub-team leader for transmission subprojects, in
monitoring, supervising, coordinating overall activities; (ii) Assist PMU in supervising the construction of the project transmission networks in
transmission divisions and provide guidance to the contractors so as to conform to the specifications;
(iii) Identify any problem during project implementation, propose remedial actions and
promptly report any outstanding issues to PMU;
(iv) Conduct site visit and identify technical problems and advice remedial technical solutions;
(v) Advice PMU on any contractual or technical disputes that may arise between contractor and EA during the implementation phase;
(vi) Preparing overall disbursement plan, monitoring cost and project accounts; (vii) Undertake project monitoring and evaluation during the project implementation; and, (viii) Provide input on the field of responsibility to required monthly, quarterly progress
reports and other reports as may be required.
c. Distribution Engineer 1 - 2 Divisions (12 person-months) 10. The Distribution Engineer will have at least a Bachelor’s degree and preferably 10 years of experience working in distribution power projects. He should also have substantial working experience in similar geographical, climatic and cultural conditions of the EA’s state. 11. The Distribution Engineer will undertake the following for distribution network expansion and rehabilitation in 2 Divisions in coordination with the Team Leader:
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(i) Assist Team Leader/PMU, as a sub-team leader for distribution subprojects, in
monitoring, supervising, coordinating overall activities; (ii) Assist PMU in supervising the construction of the project distribution networks in 2
Divisions and provide guidance to the contractors so as to conform to the specifications; (iii) Identify any problem during project implementation, propose remedial actions and
promptly report any outstanding issues to PMU;
(iv) Conduct site visit, verify required voltage, distribution area, number of connection, capacity of the system, identify technical problems of current distribution network, advice remedial technical solutions and appropriate measures;
(v) Advice PMU on any contractual or technical disputes that may arise between contractor and EA during the implementation phase;
(vi) Preparing overall disbursement plan, monitoring cost and project accounts; (vii) Undertake project monitoring and evaluation during the project implementation; and, (viii) Provide input on the field of responsibility to required monthly, quarterly progress
reports and other reports as may be required; d. Distribution Engineer 2 (12 person-months) 12. The Distribution Engineer will have at least a Bachelor’s degree and preferably 10 years of experience working in distribution power projects. He should also have substantial working experience in similar geographical, climatic and cultural conditions of the EA’s state. 13. The Distribution Engineer 2 will undertake the following for distribution network expansion and rehabilitation in 2 Divisions in consultation with the Team Leader: (i) Assist Team Leader/PMU, as a sub-team leader for distribution subprojects, in
monitoring, supervising, coordinating overall activities; (ii) Assist PMU in supervising the construction of the project distribution networks in 2
Divisions and provide guidance to the contractors so as to conform to the specifications; (iii) Identify any problem during project implementation, propose remedial actions and
promptly report any outstanding issues to PMU;
(iv) Conduct site visit, verify required voltage, distribution area, number of connection, capacity of the system, identify technical problems of current distribution network, advice remedial technical solutions and appropriate measures;
(v) Advice PMU on any contractual or technical disputes that may arise between
contractor and EA during the implementation phase; (vi) Preparing overall disbursement plan, monitoring cost and project accounts;
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(vii) Undertake project monitoring and evaluation during the project implementation; and, (viii) Provide input on the field of responsibility to required monthly, quarterly progress
reports and other reports as may be required.
II. Outputs 14. The Consultant will prepare monthly, quarterly progress reports based on field data and preparation of progress reports in a format and detail acceptable to BSEB/PMU and the ADB. 15. The Consultant will maintain records documenting decisions made at meetings, progress on project implementation, financial records and changes to the contract plans. The consultant will assist PMU/ADB in preparing a project completion report and monitoring and evaluation reports as required. 16. All documents and reports would be made available on electronic format to PMU/ADB. 17. All reports will be in the English language. C. High Voltage Distribution System Training and Detailed Project Report Preparation. 18. Detailed TORs are to be provided by the HR Management cum Training specialist under the concurrent technical assistance. Training is expected to include a site visit to existing HVDS systems in operation elsewhere in India. This subcomponent will also include preparation of a detailed project report (DPR) for a pilot HVDS project to be located in a suitable location to be determined by BSEB in consultation with the HVDS consultant. The DPR will include cost estimates and all relevant analysis suitable for obtaining future funding for this pilot project. D. Equipment Purchases (indicative) 19. Equipment expected to be purchased to assist BSEB in its operations will be finalized and agreed upon between BSEB and ADB. It is expected to include meter relay testing (MRT) lab equipment and additional equipment as listed below. In addition, computer equipment for BSEB’s offices is also planned, based on a needs assessment to be conducted under the concurrent technical assistance.
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MRT (Supply Sub-stations): Quantity1. Digital Multi Meter 2 2. Clamp Meter 2 3. Phase Sequence Meter 1 4. Thermo Vision Camera 1 5. 5 kV Megger 1 6. 1 kV Megger 1 7. Earth Resistance Tester 1 8. BDV Test Kit 1 9. Primary Injection Set 1 10. Transformer Ratio Meter 1 11. Primary Injection Set 1 12. Transformer Ratio Meter 1 Grid Sub Station equipment: Quantity1. 5 kV Megger 1 2. 1 kV Megger 1 3. Thermovision Camera 1 4. Thermovision Camera 1 5. Winding Resistance Meter 1 6. BreakerTime Interval Meter 1 7. BDV Test Kit 1 8. Digital Multi Meter 2 9. Clamp Meter 2 10. Phase Sequence Tester 1 11. Primary Injection Set for CT Testing 1 12. Secondary Injection Set for relay Testing 1 13. Earth Resistance Tester 1 E. Additional Training 20. The concurrent technical assistance provides for an institutional specialist who will be responsible for working with BSEB to conduct the intermediate and longer term needs assessment in institutional capacity in regards to commercial, financial and regulatory activities, and in corporate and managerial planning. Outputs include a training plan and terms of reference for training consultants. BSEB and ADB will then discuss and make revisions, as required, and agree on the plan. Furthermore, the TA provides for a human resource management cut training specialist who will be responsible for working with BSEB within the PMU to facilitate the implementation of the capacity development component under the ADB loan, including the consultant recruitment process for the loan funded capacity development activities and the training plan listed above.