Project Administration Manual

Transcription

1 Project Administration Manual Project Number: Loan: {LXXXX} 10 September 2013 Socialist Republic of Viet Nam: Secondary Cities Development Project

2 Contents ABBREVIATIONS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 5 A. Project Readiness Activities 5 B. Overall Project Implementation Plan 6 III. PROJECT MANAGEMENT ARRANGEMENTS 7 A. Project Implementation Organizations Roles and Responsibilities 9 B. Key Persons Involved in Implementation 11 C. Project Organization Structure 15 IV. COSTS AND FINANCING 16 A. Detailed Cost Estimates by Expenditure Category 18 B. Allocation and Withdrawal of Loan Proceeds 19 C. Detailed Cost Estimates by Financier 20 D. Detailed Cost Estimates by Outputs 22 E. Detailed Cost Estimates by Year 23 F. Contract and Disbursement S-curve G. Fund Flow Diagram 25 V. FINANCIAL MANAGEMENT 26 A. Financial Management Assessment 26 B. Disbursement 26 C. Accounting 27 D. Auditing and Public Disclosure 28 VI. PROCUREMENT AND CONSULTING SERVICES 30 A. Advance Contracting 30 B. Procurement of Goods, Works and Consulting Services 30 C. Procurement Plan 31 D. Consultant s Terms of Reference 38 VII. SAFEGUARDS 48 VIII. GENDER AND SOCIAL DIMENSIONS 53 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 57 A. Project Design and Monitoring Framework 57 B. Monitoring 60 C. Evaluation 61 D. Reporting 62 E. Stakeholder Communication Strategy 62 X. ANTICORRUPTION POLICY 72 XI. ACCOUNTABILITY MECHANISM 73 XII. RECORD OF PAM CHANGES 74 III i

3 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 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. 2. The provincial people s committees of Quang Nam, Dak Lak, and Ha Tinh; and the Quang Nam PCI.QNa, Buon Ma Thuot city people s committee, and Ha Tinh CPC city people s committee are 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 provincial people s committees of Quang Nam, Dak Lak, and Ha Tinh; and the Quang Nam PCI.QNa, Buon Ma Thuot city people s committee, and Ha Tinh CPC city people s committee 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. ii

4 Abbreviations ADB = Asian Development Bank ADF = Asian Development Fund CPC = city people s committee CV = curriculum vitae DAKURENCO = Dak Lak urban environmental company DMS = detailed measurement survey DOC = Department of Construction DOF = Department of Finance DONRE = Department of Natural Resources and Environment DPI = Department of Investment DRRM = disaster risk reduction and management EA = executing agency EMP = environmental management plan GAP = gender action plan IA = implementing agency ICB = international competitive bidding IEC = information, education and communication IEE = initial environmental examination MOC = Ministry of Construction NCB = national competitive bidding O&M = operation and maintenance PAM = project administration manual PCI.QNa = Projects Construction Investment Management Authority PIU PMU = = project implementation unit project management unit PMIS = project management and implemenation support PPC = provincial people s committee PSC = project steering committee QBS = quality based selection QCBS = quality-and-cost based selection RRP = report and recommendation of the President to the Board SBD = standard bidding documents SCS = stakeholder communication strategy SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy SWM = solid waste management WU = women s union iii

5 I. PROJECT DESCRIPTION 1. The Urban Context. A fast growing urban sector is driving Viet Nam s economic growth. The country s sustained economic expansion in the last decades has been accompanied by a significant decline in the share of agriculture and a steady increase in the share of urban economic activities. The industry and service sectors comprising the urban economy now account for nearly 80% of total gross domestic product. The urban population has grown at the rate of 3.4% annually for the period , reaching some 31.7% of the total population in 2011, with a forecast of 34.5% by However, the growth of the urban population is concentrated in the primary conurbations of Ho Chi Minh City, Ha Noi, and increasingly Da Nang, where there is an expanding professional middle class. These cities are becoming highly congested and exhibiting signs of growing social and environmental problems including perennial flooding and natural disasters caused by climate change. There has been a significant reduction in urban poverty, but there is also evidence to suggest that income inequality is increasing. This indicates that the poverty gap between the richest and poorest is worsening making it difficult for urban residents, particularly the poor and other vulnerable groups, to access basic services and socioeconomic as well as environmental protection through climate change resilient infrastructure. 2. Secondary Cities. The secondary cities are being developed to address economic disparities that constrain urban development and social stability and more importantly, to deflect rural migration away from the larger cities. The provincial and urban socioeconomic plans and urban master plans of these cities have laid the policy foundation to achieve these objectives. However, trends show that growth of new business activities in many secondary cities is slowing down apart from some notable exceptions, while investments in new housing construction are also lagging. If the trends persist, the social and economic disparities between the secondary cities and the larger cities will continue to widen. An unwanted consequence of this is the pull and push factor that drives rural migrants into the larger cities. This defeats national policies and directives that encourage broad-based growth and balanced regional development throughout the country. 3. Urban Development Issues. Growth in the secondary cities is hampered by weak and inadequate infrastructure which constrains: (i) economic growth and the potential for new urban development and employment opportunities and (ii) social and environmental protection in key sectors, including flood protection and disaster management. In this context, there is an urgent need for greater investment in climate resilience planning, and better and more sustainable urban infrastructure. Investment in secondary cities is often typified by deficient strategic and local transport infrastructure, obsolete water supply systems, high water losses, poor drainage, poor flood protection, and unsustainable liquid and solid waste collection systems. Collectively, these act as a deterrent to domestic and foreign investments which are vital to stimulating socioeconomic growth and development. With Viet Nam s long coastline of more than 3,000 kilometers, at least 20 secondary cities are also at risk from climate change. These coastal and near-coastal low-lying cities are particularly vulnerable to sea level rise related hazards, including: (i) total submersion, (ii) flooding, (iii) soil erosion, and (iv) salinization of ground and surface water. Affected secondary cities can prepare for climate change induced natural disasters through more systematic investments in properly designed seawalls and dykes, water supply improvements, and drainage and sanitation. 4. The Project Cities. The selected project cities of Tam Ky (Quang Nam Province), Buon Ma Thuot (Dak Lak Province), and Ha Tinh (Ha Tinh Province) have revised, or are revising their urban plans, and preparing for expansion to medium-sized cities. The economy of these 1

6 cities indicates significant medium and long-term potential for newly emerging industries and services. The Project aims to address urban issues, climate resilience and promote balanced regional development. At the same time, in Tam Ky and Ha Tinh, the project will prioritize the completion and upgrading of flood protection and drainage works commenced but not completed under the previously funded ADB Central Region Urban Environmental Improvement Project and ensure that the needs for climate resilience are met. Targeted infrastructure investments, in line with government policy, have been selected to assist this process. 5. Tam Ky belongs to the chain of coastal cities linking northern, central, and southern Viet Nam. It sits alongside both the strategic NH1 road corridor and the Ha Noi-Ho Chi Minh rail corridor. It has its own domestic air terminal at Chu Lai. Improving strategic infrastructure planning, through the National Coastal Road under construction and the planned North-South Expressway will significantly shorten travel time to Da Nang and other regional and provincial cities and improve the attraction of the Chu Lai Special Economic Zone for investment. It will also potentially attract investment in the tourism sector and promote connectivity to the Da Nang/Hoi An coastal tourism corridor. As such, Tam Ky as a provincial capital has good potential for economic growth and urban development and is poised to reach its target of achieve Class II status in the medium term. 6. However, Tam Ky suffers from typhoons and heavy rains, which often cause severe floods, damaging homes, business and infrastructure facilities and the environment. A prerequisite therefore to the city s sustained development will be to ensure its competitiveness as a regional economic growth center through climate resilient basic services and infrastructure. The city will benefit from addressing climate change issues by providing sustainable flood protection through dyke upgrading and improved disaster management by construction and upgrading of strategic urban road for evacuation. 7. Buon Ma Thuot is the capital of Dak Lak Province in the Central Highlands Region of Viet Nam. It is already a Class I city and has good potential for sustainable economic growth and development emphasizing its role as a regional administrative and education center and the commercial hub for the coffee sector and other business agriculture. It is also the transport and economic hub in the region, with regional links to Ho Chi Minh City, Da Nang, and into Lao PDR/Cambodia. To maximize economic growth and social development will require continued investments in large scale strategic infrastructure, including better regional road links and strategic by-pass routes for the city. It will also require priority investment in urban road infrastructure, which will directly benefit the economic development and expansion of the city and relieve increasing levels of traffic congestion. At the same time, economic growth and social development will respond well to the Buon Ma Thuot s green city credentials, through more sustainable environmental practice. Better solid waste treatment using 3R principles and sustainable landfill operations will reflect this theme. 8. Ha Tinh is also one of a chain of coastal corridor cities linking north-central-south Viet Nam. The city is strategically important in supporting links to the Viet Nam-Lao PDR-Cambodia triangle. The province includes a number of strategic growth poles, including the Vung Anh Economic Zone, the Son Duong Deep Water Port and the Cao Treo Economic Zone. To this extent Ha Tinh, as the administrative capital and agricultural business hub of the province has the potential to move from its class III city status to class II at least in the medium term. In a similar way to Tam Ky the city suffers from typhoons and heavy rains, which often cause severe floods damaging homes, business, infrastructure facilities, and the general environment of the city. Therefore, base conditions for better economic growth will focus on ensuring Ha Tinh becomes a more attractive place to invest in comparison with its competitors; and developing 2

7 socioeconomic infrastructure in accordance with the master plan. This will benefit from investments: (i) to address climate change issues by providing more sustainable flood protection and drainage facilities by upgrading and rehabilitating regulating basins along with environment improvements, landscaping and recreation facilities; and (ii) by upgrading road links for access to drainage channels. 9. Support Related Policies and Strategies. The project is in conformity with the government s policy context, including: (i) the overarching policies contained in the Socio- Economic Development Strategy and the Socio-Economic Development Plan , and (ii) the sector policies contained in the relevant orientation plans and other recent policy advice and guidelines on climate change. In particular the Orientation Master Plan for Urban Development 2020, confirms government intention to develop model cities and divert rural migration away from the large cities through the development of the secondary cities and strengthening urban-rural linkages. The project enhances the policies and sector priorities contained in the ADB Country Partnership Strategy ( ), 1 which promotes comprehensive socioeconomic development in urban areas, fostering balanced growth and social stability. Other ADB priorities in terms of climate change considerations, social inclusion, and stakeholder participation are identified by ADB Viet Nam urban sector assessment, strategy and road map Lessons Learned. Based on the experience gained from completed ADB-financed urban sector development projects, 3 the relevant lessons adopted for the Project include: (i) alignment of the project preparation and implementation schedule with the government s approval procedures, (ii) selecting qualified project management consultants familiar with local rules and regulations, (iii) minimizing the number of procurement packages for effective contract management and ensuring competitiveness among qualified contractors, (iv) allocating sufficient amount of funds to contingencies due to high price escalation and possible design changes, (v) selecting a lead coordinating implementing agency with adequate capacity in the PMU, and (vi) advance action for land acquisition and resettlement to facilitate project implementation to optimize time taken for consultation and agreement with affected households. The project design responds to these lessons with a schedule that has sufficient preparation time, a limited number of procurement packages, and adequate project management support and commitment from the three cities. 11. Impact and Outcome. The expected impact of the project is improved urban environment and climate resilient infrastructure in Buon Ma Thuot in the central highland region and in the coastal cities of Ha Tinh and Tam Ky. The expected outcome of the project is increased coverage of resilient urban infrastructure and climate change adaptation in the participating cities. 12. Outputs. The project will deliver the following outputs in the three selected secondary cities. 1 CPS emphasizes environmental improvement in selected secondary cities, particularly those along transport and economic corridors, as well as coastal cities that need to prepare for possible early impacts of climate change. 2 ADB. Forthcoming. Viet Nam: Urban Sector Assessment, Strategy, and Road Map. Manila. 3 ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Socialist Republic of Viet Nam for the Comprehensive Socioeconomic Urban Development Project in Viet Tri, Hung Yen, and Dong Dang Project. Manila; ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Socialist Republic of Viet Nam for the Than Hoa City Comprehensive Socioeconomic Development Project. Manila; and ADB Completion Report: Central Region Urban Environmental Improvement Project in Viet Nam. Manila. 3

8 Output 1: New and improved urban infrastructure and climate change adaptation, including Strengthened flood management and drainage in Tam Ky and Ha Tinh. The project will provide social and economic protection through better flood protection for residents and businesses in the existing built-up area of Tam Ky and Ha Tinh. In Tam Ky this will include completion of previously uncompleted flood dykes and improving existing dykes to meet government s climate resilience standards. In Ha Tinh this includes the completion and extension of previously uncompleted drainage works, construction of a new storm water regulating basin and new recreation provision for the new regulating basin and for Bon Son lake an existing regulating basin. Improved solid waste management in Buon Ma Thuot. The project will result in better levels of sustainability and greater cost-effectiveness in solid waste management, through a new engineered landfill and recycling facility, restoration of the existing dumpsite and an information, education and communication (IEC) campaign in pilot project areas within the city. Strategic roads and related urban environment improvements in all three cities. The project will provide priority urban road infrastructure in all three cities, opening up opportunities for new development, providing strategic internal road links that promote connectivity, links to the external strategic highway network and neighboring countries and specifically helping to relieve anticipated traffic congestion in Buon Ma Thuot as the city continues to grow. Output 2: Increased community awareness for sustainable environmental management through IEC. The project will focus on increased community awareness for sustainable environment management. Gender-sensitive IEC materials on solid waste management and disaster risk reduction and management will be developed. The project will raise community awareness and train residents of Buon Ma Thout especially in the area of waste segregation, the 3R 4 approach of solid waste management (SWM) and household composting through a training program. The IEC on waste segregation will be rolled out to the entire city of Buon Ma Thout based on pilot experiences. Output 3: Improved competencies in integrated urban development, environmental planning, climate change adaptation, and project management. Knowledge and skills of professional staff in the implementation units will be strengthened in the competency areas integrated urban development, environment planning and climate change adaptation. Project management support and capacity development program will be provided to the executing agencies and implementing agencies. Consulting services will be engaged for capacity building in these areas. A joint package for international consulting services will be provided for project support, capacity building, and fiduciary activities including: technical, financial, SWM operations, procurement, environmental and social support and training as described in output 3. This will also include national consulting services for contract management and construction supervision for each city. Financial audit and monitoring of social and environmental safeguards will be provided under separate services. 4 The 3R approach of solid waste management focuses on reduction, reuse, and recycling of resources. 4

9 II. IMPLEMENTATION PLANS Indicative Activities Advance contracting actions Consultant Selection a. -Detailed Design -Project Imp. Support Finalize project implementation arrangements Land Acquisition Activities ADB Board approval Loan signing A. Project Readiness Activities Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Who responsible PMUs PMUs PMUs PMUs ADB, PPCs PMUs ADB ADB, SBV Government SBV legal opinion provided Government SBV budget inclusion Loan ADB, PPC effectiveness ADB = Asian Development Bank, PMUs = Project Management Units, PPCs = Provincial People s Committee, SBV = State Bank of Viet Nam. Source: Asian Development Bank. 5

10 B. Overall Project Implementation Plan Key Milestones Loan Effective Midterm Review Project Close Project Component Project Start-Up 1. Recruit Design Consultants A. Flood Protection & Drainage and Urban Roads (Tam Ky, Buon Ma Thuot & Ha Tinh) 1. Detailed engineering design 2. Bidding and award 3. Construction 4. Land acquisition/resettlement B. Urban Roads (All 3 Cities) 1. Detailed engineering design 2. Bidding and award 3. Construction 4. Land acquisition/resettlement C. Solid Waste Management (Buon Ma Thuot City) 1. Detailed engineering design 2. Bidding and award 3. Landfill development Hoa Phu 4. Procure landfill equipment 5. Closure of Cu Eabur 6. Land acquisition/resettlement D. Project Management, Implementation and Institutional Strengthening (All 3 Cities) 1. Detailed engineering design 2. Auditor appointment 3. Bidding and award 4. Construction 5. Land acquisition/resettlement 6. EMP updates Note: Defects Liability Periods for Civil Works Contracts Intermittent Inputs of Various Consultancies 6

11 III. PROJECT MANAGEMENT ARRANGEMENTS 13. The provincial people s committees (PPCs) of Dak Lak, Ha Tinh, and Quang Nam are the executing agencies (EAs). The city people s committees (CPCs) of Buon Ma Thuot and Ha Tinh, and the Projects Construction Investment Management Authority (PCI.QNa) of Tam Ky are the implementing agencies (IAs) or project owners. 14. Project management. The implementation arrangements follow the government s decentralization policy for ODA- funded projects and are based on previous ADB projects. 5 The PMUs for Ha Tinh and Tam Ky (PCI.QNa) have experience in implementing previous ADB projects. The provincial people s committee (PPC) of Quang Nam, Dak Lak, and Ha Tinh provinces will be the executing agencies. The Quang Nam PPC, as lead executing agency, will coordinate and liaise with national line agencies and ADB during project implementation. The lead executing agency will consult the Dak Lak and Ha Tinh PPCs for all decisions related to procurement of international consultants for project management and implementation support. The city people s committees (CPCs) of Buon Ma Thuot, Ha Tinh, and Tam Ky, which is the Projects Construction Investment Management Authority Quang Nam (PCI.QNa), are the implementing agencies or project owners. The PMUs of Tam Ky (PCI.QNa), Ha Tinh, Buon Ma Thuot, and the Dak Lak Urban Environmental Company (DAKURENCO) are the project implementation units. Each PMU will include multidisciplinary skills and implement its subprojects. 6 The PCI.QNa is nominated as the coordinating PMU in consensus with the other PMU directors, executing agencies, and the Ministry of Planning and Investment. It will liaise with the other PMUs to harmonize project implementation. The PMUs for Ha Tinh and Tam Ky (PCI.QNa) have experience implementing previous ADB projects (footnote 16). Each PPC will provide oversight and decisions on the appointment of national consultants for its PMU. This arrangement was effectively demonstrated during the project preparation phase with PCI.QNa as lead. 15. Project steering committees (PSCs) are already operating in each city and are headed by the PPC Vice Chairman, and include representatives of provincial and city government agencies. The PSCs will continue to coordinate the implementation of the project in each city and provide policy guidance. The PSCs will be chaired by the PPC Vice Chairman and will include representatives from the following organizations: (i) Department of Construction, (ii) Department of Planning and Investment (DPI), (iii) Department of Finance (DOF), (iv) Department of Natural Resources and Environment (DONRE), (v) Provincial and/or City Women s Union (WU), (vi) Chairman or Vice Chairman of the concerned project City, and (vii) other agencies or entities that may be recommended by the PPC, for instance in Buon Ma Thuot, Dak Lak urban environmental company (DAKURENCO). The PSCs will continue to assist the PPCs by: (i) monitoring project implementation, (ii) making decisions related to project implementation within the power of the local authorities, (iii) approving project documents related to, for example, procurement plans, and bidding and contract documents, and (iv) coordinating the relevant agencies of the provinces and the project management unit (PMU) in the project implementation process. PMUs have been established within the existing institutional structures in each city and will manage the implementation of the project. There will be one PMU for each of the cities. To meet this requirement, the Buon Ma Thuot City PMU will take up 5 Government of Viet Nam Decree No. 131/2006/ND-CP on Project Management and Utilization of ODA. Ha Noi (effective 6 June 2013), this decree was replaced by Government of Viet Nam Decree No. 38/2013/ND-CP on Management and Utilization of ODA and Concessional Loans. Ha Noi. 6 Multidisciplinary skills include technical due diligence, safeguards, procurement, finance, economics, gender, and social development. 7

12 the lead role in the project and will liaise and coordinate closely on subproject implementation with DAKURENCO on the solid waste management and road subprojects it will implement. 16. The functions of the PMUs will include: (i) monitoring and coordinating all project activities in the participating cities; (ii) supervising the consultants responsible for design and preparation of tender documents, construction supervision, and other activities; (iii) preparing bid plans, work plans, and annual budget plans; (iv) managing the prequalification of contractors, bid evaluations, bid awarding and contract signing; (v) undertaking site compensation and clearance; (vi) supervising work plans and ensuring quality control of work carried out by contractors and consultants; (vii) supervising and monitoring project-related resettlement and environmental activities; and (viii) preparing periodic project progress and annual reports for submission to the PPCs. 17. The structure and resources of the PMUs will reflect the needs of the subprojects in each city and will be built around the existing professional and administrative and technical support staff. Their staff will be supplemented wherever required. To this extent, the PMUs will include and/or be able to draw on the following disciplines: (i) municipal engineers drainage and flood protection; (ii) civil engineers roads/highways and structures; (iii) solid waste management specialist (Buon Ma Thuot); (iv) environment professional(s); (v) resettlement specialist; (vi) social development/gender professional(s); (vii) urban planner/landscape architect; and (viii) procurement/ contracts/construction professional(s). There will also be a need for a range of other administrative and technical support staff, including: financial management, accounting, administration, and translation and bid evaluation staff. Quality control will be critical, such that the required key professionals nominated by each of the PMUs and curriculum vitae (CV) will be submitted to ADB for approval prior to their appointment to the PMUs. When a CV is not acceptable to ADB, then the PMU will be requested to submit additional CVs for evaluation until a qualified candidate deemed suitable is agreed between ADB and the PMU concerned. 18. Quang Nam PPC has been selected to act as lead/coordinator between the project cities and the concerned central government agencies for project implementation. For an efficient and cost effective coordination among the PMUs, a small project coordination unit will be established to be responsible for the following: (i) monitoring overall project implementation progress and (ii) making decisions on issues such as the scope of investment, project policies, and procedures. The project coordination unit will be staffed by dedicated members of the lead PMU and if necessary, additional staff will be appointed. To distribute the coordination workload and encourage good working relationships, the PMUs may choose to share some identified common responsibilities. 19. Where it is necessary for the PPCs/PMUs from all three cities to discuss issues of common interest and to resolve problems, informal joint meetings will held through a project coordination committee (see section C for the project organization structure). 8

13 20. Further details are discussed below. A. Project Implementation Organizations Roles and Responsibilities Project implementation Organization Quang Nam PPC Dak Lak PPC Ha Tinh PPC Management Roles and Responsibilities Executing Agencies All Oversee project activities in each city Sign the project agreement Approve rolling plans/program for implementation Ensure compliance with loan covenants Submit disbursement projections and ensure counterpart fund allocation Approve procurement plans Ensure that project implementation complies with ADBs safeguard policy and provisions in the EMPs and RPs Will follow ADB guidelines and procedures for recruitment including auditors. Quang Nam PMU Buon Ma Thuot PMU Ha Tinh PMU Quang Nam PPC Coordination and liaison with line agencies and other agencies as appropriate on common policy, regulatory context, implementation procedures and financial issues Project Management Units All Undertake day to day management of the project activities Prepare detailed designs and procurement documents, bid evaluation and contract awards and pass on to the Project Implementing Agencies on CPC level for final approval. Prepare the consultants for project management, capacity building and awareness building Update the resettlement plans and submit to ADB for clearance prior to implementation Update EMPs and validate costs in the project cost table Monitor implementation of resettlement plans and submit monitoring reports to the EAs and ADB Award civil works and equipment contracts Supervise civil works contractors Ensure environmental protection and mitigation measures (in the EMPs) are incorporated in detailed designs and contract awards Ensure implementation of the EMPs and submit regular monitoring reports through the IAs to the EAs Submit regular (quarterly and annual) project reports to ADB Submit resettlement plans to the ADB for agreement prior to implementation Implement GAP, Poverty Reduction and Social Strategy, Stakeholder Participation Plan and WU capacity building program. Coordinating PMU Coordinate and liaise with line agencies and other agencies as appropriate on common policy, regulatory context, implementation procedures and financial issues Prepare and consolidate project financial statements and arrange for the audit with support of the PMIS consultants. Day to day coordination and liaison between the three PMUs and 9

14 Project implementation Organization Quang Nam PCI.QNa Buon Ma Thuot CPC Ha Tinh CPC ADB Management Roles and Responsibilities communications to the Project Steering Committees 7 and other relevant agencies. Project Implementing Agencies Coordinate and monitor projects activities of the PMUs Approve detailed designs and procurement documents, bid evaluation, and contract awards. Approve the consultants for project management, capacity development and awareness building Obtain necessary environmental approvals from the respective departments of natural resources and environment prior to awarding civil works contracts Oversee and support the PMUs on the management and reporting for EMPs Undertake quality control inspections of the project facilities and completion Manage project facilities handover O/M related agencies Funding Agency Review and approve procurement and disbursement requests. Conduct six monthly reviews to assess: (i) overall project implementation; (ii) land acquisition and resettlement; (iii) environmental management; (iv) project expenditure, disbursements and counterpart funding, (v) procurement and contract awards; (vi) compliance with loan covenants; (vii) achievement of project outputs and outcomes Update the project performance review reports in conjunction with the EAs Ensure compliance of financial audits and recommendations Post project documents requiring public disclosure on ADB web-site (i.e., ADB safeguards compliance) Conduct mid-term project review to: (i) assess need to restructure for reformulate the project; (ii) update the project DMF; (iii) assess need to the project completion deadline. 7 Project steering committees (PSCs) are already operating in each city and are headed by the PPC Vice Chairman, and include representatives of provincial and city government agencies. 10

15 B. Key Persons Involved in Implementation Executing Agency/Project Organization Government of Viet Nam PPC Dak Lak Province Dak Lak PPC Mr. Y Dham Enuol Vice Chairman 08 Mai Hac De, Buon Ma Thuot city, Dak Lak province Tel: ubdaklak@gmail.com Buon Ma Thuot CPC Mr. Tran Vinh Canh Chairman 01 Ly Nam De, Buon Ma Thuot city, Dak Lak provincetel: canhsxd@gmail.com Dakurenco Ltd, Co. Mr. Truong Cong Thai Director 01 Dao Duy Tu, Buon Ma Thuot city, Dak Lak province Tel: vipsmubmt@dng.vnn.vn PPC Ha Tinh Province PPC Quang Nam Province ADB Southeast Asia Urban Development and Water Division Executing Agency: Ha Tinh PPC Mr. Tran Minh Ky, Vice Chairman Address: No. 19, Nguyen Tat Thanh Street, Ha Tinh City Phone: (84.39) ; Fax: (84.39) PMU: Mr. Nguyen Cong Nguyen, Director Address: No 9, Nguyen Cong Tru, Ha Tinh City Phone: (84.39) ; Fax: (84.39) Hatinhcrueip@gmail.com Executing Agency: Quang Nam PPC Mr. Dinh Van Thu, Vice Chairman Address: 70 Hung Vuong, Tam Ky Town, Quang Nam Province PMU: Mr. Hoang Xuan Viet, Director Address: 70 Hung Vuong, Tam Ky Town, Quang Nam Province Phone: , Cell: , Fax: cttamky@yahoo.com Staff Name Amy Leung Position Director Telephone No (632) address aleung@adb.org Mission Leader Staff Name Sonia Chand Sandhu Position Principal Environment Specialist Telephone No (632) address ssandhu@adb.org 11

16 Key Position Director PMU Municipal Engineer Civil Engineer Solid Waste Management Professional Environment Professional Roles and Responsibilities Coordination and liaison with central government agencies, PPC, wards and communes and other stakeholders; Management of the PMU staff and the Consultants. Oversight of contract management, construction, works, monitoring and operations and maintenance; Oversight and monitoring of safeguard compliance and grievance redress mechanism; Ensuring design and implementation of the sub-projects in a timely manner and to a high quality; Advising on relevant government policies and guidelines relevant to the design and implementation of the subprojects; Providing overall support to the consultant selection process; and Establishing the consultant services office and facilities. Coordination and liaison with consultant team counterparts; Coordination with engineering consultants on all aspects of construction, works, monitoring and operations and maintenance; Ensuring design and implementation of the subprojects in a timely manner and to a high quality; Providing technical inputs to the design and implementation of the drainage and flood protection subcomponents in Tam Ky and Ha Tinh; Advising on relevant government policies and guidelines relevant to the design and implementation of the drainage and flood protection subcomponents; Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities; and Attending training seminars and workshops as part of the capacity building program. Coordination and liaison with counterparts in the consultants team; Coordination with the other consultants on all aspects of construction, works, monitoring and operations and maintenance; Ensuring design and implementation of the subprojects in a timely manner and to a high quality; Providing oversight and monitoring safeguard compliance and grievance redress mechanism; Providing technical inputs to the design and implementation of the strategic roads subcomponents in all three cities; Advising on relevant government policies and guidelines relevant to the design and implementation of the strategic roads subcomponents; Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities; and Attending training seminars and workshops as part of the capacity building program. Coordination and liaison with counterparts in the consultants team; Providing selected technical inputs to the design and implementation of the SWM subcomponents in Buon Ma Thuot; Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities; Coordination with the solid waste and environment consultants in stakeholder consultation and awareness raising and application to the SWM subcomponent; Advising on relevant government policies and guidelines relevant to the design and implementation of the SWM subcomponent; and Attending training seminars and workshops as part of the capacity building program. Coordination and liaison with counterparts in the consultants team; Coordination with the environment consultants on the implementation of the EMP and the application of environment safeguards in all three cities; Coordination on the updates of the EMP and all environmental safeguard compliance; 12

17 Key Position Resettlement Professional Social Development and Gender Specialist Architect/Landscape Architect/Urban Planner Procurement Professional Roles and Responsibilities Assisting the environment consultants in the design and conduct of environmental monitoring, including water quality testing and air pollution; Advising on relevant government policies and guidelines relevant to the environment sector; Coordination and liaison with key stakeholders, including government agencies, private sector companies and project affected communities; and Attending training seminars and workshops as part of the capacity building program. Coordination and liaison with consultant team counterparts and the Centers for Land Fund Development; Coordination with the resettlement and safeguards consultants on the design and implementation of the resettlement plans and the application of resettlement safeguards in all three cities; Assisting the resettlement and safeguards consultants in coordination and liaison with key stakeholders, including the project affected communities; Assisting in resettlement plan implementation and monitoring; Advising on relevant government policies and guidelines relevant to the environment sector; Attending training seminars and workshops as part of the capacity building program; and Coordination and liaison with consultant team counterparts and the Women s Unions. Coordination with the social, gender and livelihood consultants on the design and implementation of the social development initiatives and in particular the Gender Action Plan (GAP); Assisting the social, gender and livelihood consultants in coordination and liaison with key stakeholders, including the project affected communities. Assisting the social, gender and livelihood consultants in working closely with the Women s Union on environmental awareness and employment generation initiatives proposed in all three cities; Advising on relevant government policies and guidelines relevant to the social development and gender sectors; and Attending training seminars and workshops as part of the capacity building program. Coordination and liaison with counterparts in the consultants team; Coordination with the other consultants on all aspects of the environmental upgrading of Bong Son Lake in Ha Tinh, with particular reference to master planning, landscape design community tree planting and recreation and open space uses; Ensuring design and implementation of the subcomponent in a timely manner and to a high quality; Advising on relevant government policies and guidelines relevant to the upgrading of Bong Son Lake and its recreational after use; Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities; Coordination and liaison with project affected communities to optimize community participation and ownership of large scale tree planting; and Attending training seminars and workshops as part of the capacity building program. Coordination and liaison with counterparts in the consultants team;. Coordination with the technical and financial and monitoring specialists on all the financial, procurement aspects of the project in all three cities; Assisting in the implementation and operation of the procurement plan and systems, including the provision of consulting services and for the procurement of goods and works contracts; Participating in the process of preparing bid documentation, bid procedures, consultant and/or company selection, contract execution and monitoring; 13

18 Key Position Finance and Accounting Professional Roles and Responsibilities Advising on relevant government policies and guidelines relevant to procurement; and Attending training seminars and workshops as part of the capacity building program. Coordination and liaison with counterparts in the consultants team; Coordination with the financial and administration specialists on all the financial, accounting and auditing aspects of the project in all three cities; Assisting in the implementation and operation of the financial management systems and for financial accounting, reporting and loan disbursements, financial projections and budgeting; Advising on government policies and guidelines relevant to the project s financial management and accounting; and Attending training seminars and workshops for capacity development. 14

19 C. Project Organization Structure Asian Development Bank (ADB) Government of Viet Nam (MPI-MOF-SBV) Dak Lak PPC Quang Nam PPC Lead (EA) Coordinator Ha Tinh PPC Executing Agencies (EAs) Buon Ma Thuot CPC Coordination Quang Nam PCI QNa Lead Coordinator Committee Ha Tinh CPC Implementing Agencies (IAs) Buon Ma Thuot City PMU DAKURENCO Quang Nam PCI QNa Ha Tinh PMU Project Implementing Units (PIUs) Project Implementation Consulting Services (International + National) Project Support, Capacity Building and Fiduciary Activities Buon Ma Thuot Subproject - Mai Thi Luu Urban Road Buon Ma Thuot Subprojects - Solid waste management - Tran Quy Cap Urban Road Tam Ky All Subprojects Ha Thinh All Subprojects CPC = city people s committee, DAKURENCO = Dak Lak Urban Environmental Company, MOF = Ministry of Finance, MPI = Ministry of Planning and Investment, PCI.QNa = Projects Construction Investment Management Authority, PMU = project management unit, PPC = provincial people s committee, SBV = State Bank of Viet Nam. Source: Asian Development Bank. 15

20 IV. COSTS AND FINANCING 21. The project is estimated to cost $ million, including taxes, duties, and physical and price contingencies (Summary Project Investment Plan). 22. The Asian Development Fund (ADF) facility will fund civil works for the following expenditure items: (i) solid waste management, (ii) flood management and storm drainage improvement, (iii) urban roads improvement, and (iv) environmental improvements. In addition, the ADF loan will fund (i) consulting services, (ii) equipment, (iii) taxes and duties for Quang Nam (Tam Ky City), (iv) incremental administration, (v) contingencies, (vi) interest during construction, and (vii) bank charges, transportation and insurance costs 8. Counterpart funding from the Government of Viet Nam (from the Provinces of Dak Lak, Ha Tinh, and Quang Nam) will fund the following expenditure items: (i) incremental administration including design and supervision consultants, (ii) land acquisition and resettlement, and (iii) duties and taxes which will be provided by the PPCs, except for Quang Nam (Tam Ky City) which will be financed by ADB. Summary Project Investment Plan ($ million) Item Amount a A. Base Cost b 1. New and improved urban infrastructure and climate change adaptation a. Solid Waste Management Improvement b. Flood Management and Storm Drainage Improvement c. Strategic Roads and Related Urban Environment Improvements Improved community awareness for sustainable environmental management through IEC Improved competencies in integrated urban development, environmental planning, climate change adaptation, and project management 0.95 Subtotal (A) B. Contingencies c C. Financing Charges During Implementation d 4.47 Total (A+B+C) a b c d Includes taxes and duties of $6.99 million, $2.49 million to be financed from ADB loan and $4.5 million will be funded by government resources. In January 2013 prices. Physical contingencies computed at 10% for civil works, equipment, and design and supervision. Price contingencies computed at 3.88% on foreign exchange costs and 27.62% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. Includes interest and commitment charges. Interest during construction for ADB loan has been computed at 2% per annum which is the offered rate for Group B (ADF blend). Source: Asian Development Bank estimates. 23. The government has requested a loan in various currencies equivalent to SDR62,690,000 ($95.0 million equivalent) from ADB s Special Funds resources to help finance the project. The loan will have a 25-year term, including a grace period of 5 years, an interest rate of 2.0% per annum during the grace period and thereafter, and such other terms and conditions set forth in the draft loan and project agreements. The loan will fund civil works for the following expenditure items (i) SWM, (ii) flood management and storm drainage improvement, (iii) urban roads, and (iv) environmental improvements. The loan will also fund (i) consulting services; (ii) equipment; (iii) taxes and duties for Quang Nam (Tam Ky City); 8 The ADB loan will finance (i) the taxes and duties of Tam Ky as requested, as it is within reasonable country thresholds, does not represent an excessive share of the project investment, the taxes and duties apply only to ADB-financed expenditures and is material and relevant to the Project s success; and (ii) incremental administration (excluding salaries), bank charges, transportation, and insurance costs to facilitate project implementation. 16

21 (iv) incremental administration; (v) contingencies; (vi) interest during construction; and (vii) bank charges, transportation, and insurance costs. 9 The government will grant the loan proceeds to Dak Lak, Ha Tinh, and Quang Nam provincial governments. Counterpart funding of $26.71 million from the government (comprised of $9.79 million from Dak Lak, $10.45 million from Ha Tinh, and $6.47 million from Quang Nam provinces) will fund (i) incremental administration, including detailed engineering design and supervision of consultants; (ii) land acquisition and resettlement; and (iii) duties and taxes provided by the provinces, except for Quang Nam. The Financing Plan is summarized below. Summary Financing Plan ($ million) Share of Total (%) Source Amount Asian Development Bank (Asian Development Fund) Government of Viet Nam Total Source: Asian Development Bank estimates. 9 The ADB loan will finance (i) taxes and duties of Tam Ky as requested, as these are within reasonable country thresholds, do not represent an excessive share of the project investment, and apply only to ADB-financed expenditures that are material and relevant to the project s success; and (ii) incremental administration (excluding salaries), bank charges, transportation, and insurance costs to facilitate project implementation. 17

22 A. Detailed Cost Estimates by Expenditure Category Expenditure Account I. Investment Cost a A. Civil Works 1. Ha Tinh 2. Buon Ma Thuot 3. Tam Ky $ million Total Cost % of Total Project Costs Subtotal %% B. Equipment 1. Buon Ma Thuot %% Subtotal % C. Land Acquisition and Resettlement 1. Land Acquisition and resettlement support in Ha Tinh % 2. Land Acquisition and resettlement support in Buon Ma Thuot % 3. Land Acquisition and resettlement support in Tam Ky % Subtotal % D. Consulting Services and Project Management 1. Consulting services % 2. Incremental administration b % Subtotal % Total Baseline Costs c % II. Contingencies d A. Physical contingencies % B. Price contingencies % Subtotal % Total Project Costs % Interest during construction e % Grand Total % a Includes taxes and duties of $6.99 million, $2.49 million to be financed from ADB loan (for Tam Ky City), and $4.5 million will be funded by government resources. b Includes project management & implementation support for PMUs, 1 vehicle per city, provision for financial audits, office equipment (computers, printers, etc.), meetings and workshops, and communications and reports, travel expenses. c In January 2013 prices. d Physical contingencies computed at 10% for civil works, equipment, and design and supervision. Price contingencies computed at 3.88% on foreign exchange costs and 27.62% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. $2.00 million of the counterpart contingencies include land acquisition and resettlement costs under the Buon Ma Thuot subproject costs. In addition, $2.60 million of the counterpart contingencies include contingencies for land acquisition and resettlement estimated in the resettlement plans including income restoration program. e Includes interest and commitment charges. Interest during construction for the ADB loan has been computed at 2% per annum which is the offered rate for Group B (ADF blend). Sources: Consultants estimates and ADB forecast for foreign and local escalation costs for price and physical contingencies. 20% 16% 21% 18