Khulna Sewerage System Development Project (RRP BAN 49329-007)

Project Number: 49329-007 Loan Numbers: LXXXX September 2020

People’s Republic of Bangladesh: Khulna Sewerage System Development Project

Project Administration Manual

ABBREVIATIONS

ADB – Asian Development Bank AEFS – audited entity financial statements APFS – audited project financial statement CPD – client portal for disbursements DMF – design and monitoring framework DMS – detailed measurement survey EMP – environmental management plan FMA – financial management assessment FSM – fecal sludge management GAP GRC

– –

gender action plan grievance redress committee

GRM – grievance redress mechanism IADC – institutional development, awareness creation, and design

consultants IEE – initial environmental examination KCC – Khulna City Corporation km2 – square kilometer KSSDP – Khulna Sewerage System Development Project KWASA – Khulna Water Supply and Sewerage Authority LIBOR – London interbank offered rate m3 – cubic meter NCB – national competitive bidding O&M – operation and maintenance OCB – open competitive bidding OCR – ordinary capital resources PAM – project administration manual PMSC – project management and supervision consultant PMU – project management unit PPMS – project performance management system PMU – project management unit PPP – public-private partnership QPR – quarterly progress report SEMP – site-specific environmental management plan SEMR – semi-annual environmental monitoring reports SIU – social implementation unit SOE – statement of expenditure SPS – Safeguard Policy Statement SSO – Social Safeguard Officer SSMR – semi-annual social safeguards monitoring reports STP – sewage treatment plant WASH – water, sanitation, and hygiene

CONTENTS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 4 A. Project Readiness Activities 4 B. Overall Project Implementation Plan 5

III. PROJECT MANAGEMENT ARRANGEMENTS 7 A. Project Implementation Organizations: Roles and Responsibilities 7 B. Key Persons Involved in Implementation 9 C. Project Organization Structure 10

IV. COSTS AND FINANCING 11 A. Cost Estimates Preparation and Revisions 12 B. Key Assumptions 12 C. Detailed Cost Estimates by Expenditure Category 13 D. Allocation and Withdrawal of Loan Proceeds 14 E. Detailed Cost Estimates by Financier 15 F. Detailed Cost Estimates by Outputs 16 G. Detailed Cost Estimates by Year 17 H. Contract and Disbursement S-Curve 18 I. Fund Flow Diagram 20

V. FINANCIAL MANAGEMENT ASSESSMENT 21 A. Financial Management Assessment 21 B. Disbursement arrangements for ADB funds 25 C. Disbursement Arrangements for Counterpart Funds 26 D. Financial Management Capacity Building of PMU and Resources 26 E. Accounting and Financial Reporting 27 F. Auditing and Public Disclosure 28 G. Loan Closure 30

VI. PROCUREMENT AND CONSULTING SERVICES 30 A. Advance Contracting and Retroactive Financing 30 B. Procurement of Goods, Works, and Consulting Services 31 C. Procurement Plan 31 D. Consultant's Terms of Reference 32

VII. SAFEGUARDS 32 A. Environmental Safeguards 32 B. Social Safeguards 35 C. Safeguards Capacity Development 41

VIII. GENDER AND SOCIAL DIMENSIONS 42

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 42 A. Project Design and Monitoring Framework 42 B. Monitoring 43 C. Evaluation 44 D. Reporting 44 E. Stakeholder Communication Strategy 44

X. ANTICORRUPTION POLICY 45

XI. ACCOUNTABILITY MECHANISM 45

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 45 APPENDIXES

1. Design and Monitoring Framework 2. Indicative Project Financial Statements 3. Outline for Quarterly Progress Report 4. Indicative Audit Opinion 5. Procurement Plan 6. Outline Terms of Reference 7. Grievance Redress Mechanism 8. Quarterly Progress Report Checklist for Environmental Safeguards 9. Quarterly Progress Report Checklist for Social Safeguards 10. Semi-Annual Environmental Monitoring Report Outline 11. Semi-Annual Social Safeguards Monitoring Report Outline

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 the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

The Khulna Water Supply and Sewerage Authority (KWASA) is wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by KWASA of its obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

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

I. PROJECT DESCRIPTION

1. The Khulna Sewerage System Development Project (KSSDP or the project) will establish a sustainable and inclusive sewerage system in Khulna, the third largest city in Bangladesh, to contribute to planned urbanization for growth and equity under the Perspective Plan of Bangladesh 2010–2021: Making Vision 2021 a Reality.1 The project will focus on creating sewer network, sewage treatment plants (STPs), and fecal sludge management (FSM) facilities, covering commercial and densely populated residential areas. The project will also build the capacity of the Khulna Water Supply and Sewerage Authority (KWASA) in planning, implementation, and operation and maintenance (O&M) of sewerage system. 2. Bangladesh’s urbanization. Rapid urbanization featured prominently during the last decade in Bangladesh, exacerbating challenges in a country that has one of the highest population densities in the world. 2 The average annual urban population growth has been recorded at 3.17% since 2015, faster than the average annual national population growth of 1.37%. In 2018, about 61 million people, or 37% of the total population of 164 million, lived in urban areas.3 Urbanization raises economic productivity through agglomeration advantages, but places severe strains on the environment and basic urban services. Particularly, as the piped sewer network availability is limited only to the capital city of Dhaka serving 18% of its residents,4 vast quantities of sewage are currently being discharged into rivers, canals, and groundwater resources without treatment causing environmental pollution and potential public health hazard. 3. Sewerage sector problems in Khulna. Khulna has a population of around 1.5 million and is expected to receive a boost in its industrial and commercial activities due to improved connectivity with the capital city of Dhaka once the Padma Multipurpose Bridge is completed.5 With its high population and high population density (average of 6,877 people per square kilometer [km2] compared to the national average of 1,240 people per km2), Khulna’s residents have been experiencing persistent urban service limitations, particularly in sewage management. There is no centralized sewerage system in Khulna and sewerage tariff is not in place. Most households depend on on-site sanitation systems such as pit latrines or septic tanks and there is no systematic approach for sustainable collection, transportation, treatment, and disposal of fecal sludge from on-site systems (fecal sludge management [FSM]).6 As a result, sewage and fecal sludge enter groundwater or surface drains causing clogging and serious environmental problems including contamination of rivers near Khulna. About 0.5 million people living in low-income communities (LICs) are the most vulnerable to the impacts of poor sanitation services. Moreover, women’s work burdens are often exacerbated due to lack of access to sewage management, given that they are primarily responsible for household sanitation. Two institutions are currently involved in providing sanitation services (i) the Khulna City Corporation (KCC) is responsible for FSM;7 and (ii) the Khulna Water Supply and Sewerage Authority (KWASA) is in charge of the

1 Government of Bangladesh, Ministry of Planning. 2012. Perspective Plan of Bangladesh 2010–2021: Making Vision

2021 a Reality. Dhaka. 2 The population density of Bangladesh was the ninth highest in the world in 2018. Source: The World Bank Group.

2020. Population density) people per square kilometer [km2] of land area) database. https://data.worldbank.org/indicator/EN.POP.DNST (accessed 15 July 2020).

3 United Nations. 2018. World Urbanization Prospects: The 2018 Revision. New York. 4 World Bank. 2016. Bangladesh: Improving Water Supply and Sanitation. Washington D.C. 5 It is a multipurpose road-rail bridge across the Padma River to link the south-west of the country to northern and

eastern regions. When completed, it will be the longest bridge in Bangladesh with 6.15 km of main bridge length. 6 64% of Khulna’s population use septic tanks (average volume: 16.6 m3) and the remaining 36% use pit latrines

(average volume: 2.0 m3). Most septic tanks are not connected to soak pits and discharge directly in open drains. Only one FSM system is operational in the northern part of Khulna and covers only 2% of its population.

7 Government of Bangladesh. 2015. Institutional and Regulatory Framework for FSM for City Corporation. Dhaka.

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development, construction, and operation of the sewerage system.8 Interagency coordination is not in place as there are currently no sewerage systems under the responsibility of KWASA. 4. Sewerage problems exacerbated by climate change and increasing disaster risk. Bangladesh is one of the countries that is most vulnerable to natural hydro-meteorological hazards.9 Monsoon flooding, tropical cyclones, and droughts are the major natural hazards facing the country, and these are likely to be more intense and frequent due to climate change.10 Khulna is located in the coastal belt of Bangladesh and part of the Ganges-Brahmaputra Delta, which is known for its vulnerability to sea level rise and floods. Most areas in Khulna are prone to fluvial and coastal flooding and water quality in its nearby rivers is affected by salinity intrusion, posing high disaster risks to its residents. Urban infrastructure and services need to be urgently improved to respond to current threats and adapt to future climate change impacts. Particularly, a sustainable sewerage system is critical to (i) mitigate water quality deterioration; and (ii) decongest the existing drainage system from the discharge of uncontained septic tanks.11 5. ADB’s engagement in Khulna’s water supply and sewerage systems. A five-year business plan of KWASA was prepared in 2011 and 2016 with the support of the Asian Development Bank (ADB). The business plan focused on (i) switching water source from ground to surface water; (ii) introducing sewerage systems; and (iii) expanding water supply systems. The Khulna Water Supply Project cofinanced by ADB and the Japan International Cooperation Agency,12 which switched water source from ground to surface water, was implemented in 2011–2019 based on the recommendations of KWASA’s business plan. The project increased the water supply to 113 liters per capita per day with 875,000 beneficiaries through the establishment of 65 district metering areas and construction of a water treatment plant with the capacity of 110,000 cubic meters (m3) per day. This improved level of water supply has enhanced the quantum of sewage generated in Khulna, making urgent intervention in sewerage sector imperative. KWASA prepared its Wastewater Management Master Plan with the support of ADB to establish a sustainable and comprehensive sewerage system in Khulna by 2035. The master plan recommends for a phased intervention to address challenges in sewage management, recognizing that 100% of piped network coverage may not be realistic given the technical, socioeconomic, and financial constraints. Further institutional support is required to strengthen KWASA’s capacity for planning, implementation, and O&M of sewerage system and explore possible reuse of wastewater. 6. Lessons learned. The project will be ADB’s first intervention in the sewerage sector of Bangladesh. ADB will bring its extensive experience and lessons from implementing infrastructure development, institutional capacity building, and reforms in sewerage sector in other South Asian countries and elsewhere.13 The key lessons learned from sewerage system development projects

8 KWASA was established in 2008 as an independent organization responsible for water supply and sewage

management in Khulna city, under the Water Supply and Sewerage Act 1996. 9 Cyclones and floods led to nearly 520,000 natural disaster-related deaths recorded for the last 40 years. Particularly,

Cyclone Sidr (2007) cost an estimated $1.7 billion in damages and losses. https://www.gfdrr.org/en/bangladesh 10 Government of Bangladesh, Ministry of Environment and Forests. 2009. Bangladesh Climate Change Strategy and

Action Plan 2009. Dhaka. 11 A drainage system of 1,200 km length is operational in Khulna but often clogged by the current sewerage system. 12 ADB. 2011. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical

Assistance Grant People’s Republic of Bangladesh: Khulna Water Supply Project. Manila. 13 Relevant projects include: (i) ADB. 2013. Report and Recommendation of the President to the Board of Directors:

Proposed Loan and Grant and Administration of Loan and Grant Nepal: Kathmandu Valley Wastewater Management Project. Manila; and (ii) ADB. 2018. Report and Recommendation of the President to the Board of Directors: Proposed Multitranche Financing Facility, Technical Assistance Grant, and Administration of Grant India: Tamil Nadu Urban Flagship Investment Program. Manila.

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and the completed water supply project in Khulna funded by ADB indicate that (i) upfront capacity development on ADB’s policies and procedures accelerates project start-up; (ii) close coordination with relevant government departments and local municipalities facilitates approval process; and (iii) integrating water supply or sewerage systems with available interventions results in improved health benefits. 7. The project is aligned with the following impact: basic needs of the people ensured in a sustainable manner without damaging the environment. The project will have the following outcome: project areas in Khulna city gained access to sustainable sewerage services.14 8. Output 1: Climate resilient centralized and organized sewerage system for Khulna city established. The project will develop a new sewerage system in Khulna, covering commercial and densely populated residential areas with about 880,000 population by 2028. The project will establish a centralized sewerage system consisting of 269 km of sewer network, eight pumping stations, two sewage treatment plants (STPs) (52,000 m3 per day and 28,000 m3 per day), and approximately 27,000 property level sewer connections. A fecal sludge treatment plant of 160 m3 per day capacity will be included in one of the STPs for co-treatment, to provide fecal sludge treatment service for around 30,000 households in LICs of central and southern part of the city where a piped sewer network is not feasible.15 ADB will finance the O&M of the sewer network and pumping stations (for 2 years from commissioning date), and the STPs (for 3 years from commissioning date) by qualified contractors to ensure professional operation in the initial years, and transfer O&M skills to KWASA. The project will have an immediate positive impact on the city’s environment, enhance its climate and disaster resilience by increasing sewage treatment capacity, provide sanitation solutions for residents in LICs, and open the door to the possibility of forging future partnership with private sector. 9. Output 2: Institutional capacity of KWASA in sewerage service delivery, and community awareness on safe sanitation improved. The physical investments will be complemented by targeted institutional reforms, capacity building, and sustainability enhancement, which will build on ongoing reforms of KWASA. To ensure sustained delivery of sewage management services, the project will implement skills development programs on sewerage system using facility-specific O&M manual, strengthen asset management by installing a supervisory control and data acquisition (SCADA) system, formulate a sewerage tariff policy to ensure that O&M costs are adequately financed by user charges, and strengthen the project management capacity of KWASA to support monitoring of contractor performance and safeguard standards. To address future needs for water supply and sewage management services, the project will support the preparation of potential projects and identify opportunities for public-private partnerships (PPPs).16 To improve city-wide sanitation and hygiene, the project will develop a sustainable and inclusive sanitation plan and conduct public awareness campaigns on the benefits of sewerage service that will be conducted jointly by KCC and KWASA. The project will also support enhancing women’s decision-making capacity and reducing gender inequality through the implementation of the gender action plan (GAP), focusing on women’s effective participation in the planning and implementation of sewerage system.

14 The design and monitoring framework is in Appendix 1. 15 KCC will collect and transport fecal sludge from property septic tanks to the treatment plant inside the areas of STPs

for co-treatment of fecal sludge. The Bill & Melinda Gates Foundation is currently providing technical support to KCC to improve the city’s on-site sanitation service delivery.

16 Government of Bangladesh, Local Government Division. 2011. Sector Development Plan. Dhaka. The government encourages utilities to consider PPP to gain experience for subsequent wider application.

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II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 1: Project Readiness Activities

Indicative Activities

2020 Responsible Agency Apr May Jun Jul Aug Sep Oct Nov Dec

Advance contracting actions KWASA

(i) Recruitment of project management and supervision consultants (notice to EOI)

X KWASA

(ii) Procurement of sewer network 1 (issuing bid)

X KWASA

(iii) Procurement of sewer network 2 (issuing bid)

X KWASA

(iv) Procurement of sewage treatment plants (issuing bid)

X KWASA

Retroactive financing actions KWASA

ADB fact-finding X ADB

Loan negotiations X ADB and ERD

Establish project implementation arrangements

X LGD and KWASA

ADB Board approval X ADB

Government budget inclusion

X LGD

Loan signing X ADB and ERD

Government legal opinion provided

X

ERD

Loan effectiveness X ADB and ERD ADB = Asian Development Bank, EOI = expression of interest, ERD = Economic Relations Division, KWASA = Khulna Water Supply and Sewerage Authority, LGD = Local Government Division. Source: Asian Development Bank.

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B. Overall Project Implementation Plan

Table 2: Project Implementation Plan 2020 2021 2022 2023 2024 2025 2026 2027 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A. DMF

Output 1: Climate resilient centralized and organized sewerage system for Khulna city established 1.1 Preparation of detailed project reports and

safeguard documents

1.2 Procurement process for civil works contracts and contract awards

1.3 Construction of sewage treatment plants and sewer networks

1.4 Operation and maintenance of sewage treatment plants and sewer networks

1.5 Monitor service delivery parameters

Output 2: Institutional capacity of KWASA in sewerage service delivery, and community awareness on safe sanitation improved 2.1 Development and conduct of training and skills

development programs on sewerage system and project management for KWASA

2.2 Development facility-specific O&M manual for sewerage system

2.3 Development and operation SCADA system for sewerage system

2.4 Development of Sanitation plan with sex-disaggregated targets

2.5 Formulation of new sewerage tariff policy 2.6 Preparation of at least 2 project proposals

using PPP modality

2.7 Preparation of detailed engineering designs and bidding documents for future investment projects

2.8 Conduct of training programs for KWASA staff including all relevant female

2.9 Conduct of sanitation and hygiene awareness campaign including at least 30% women

B. Management Activities Procurement

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2020 2021 2022 2023 2024 2025 2026 2027 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Award civil works contract for sewer network 1 X

Award civil works contract for sewer network 2 X

Award civil works contract for STPs X

Procurement of goods X X

Recruitment of Consultant Project management and supervision consultants X

Institutional development, awareness, and design consultants X

Safeguard activities

Update EMP

Execute and monitor EMP

Update resettlement plan package-wise, prior to contract awards

Gender action plan key activities

Annual and/or midterm review X X X X X X X

Project completion report X DMF = design and monitoring framework, GAP = Gender Action Plan, O&M = operation and maintenance, PMU = project management unit, PPP = public-private partnership, SCADA = supervisory control and data acquisition, STP = sewage treatment plant, Q = quarter. Source: Asian Development Bank.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 3: Project Implementation Roles and Responsibilities Project Implementation Organizations

Management Roles and Responsibilities

Sponsoring Ministry: LGD Executing Agency: KWASA

(i) LGD will oversee project activities of KWASA; (ii) oversees overall project implementation and administration; (iii) coordinates with ADB, stakeholders, and other agencies at

central level for smooth project implementation; (iv) administers loan disbursements; (v) ensures compliance with project covenants, including safeguard

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

staffing during the entire period of project implementation; (vii) supervises PMU through Project Director; (viii) provides office space to PMU; and (ix) takes full responsibility for O&M of project facilities.

Project Steering Committee Chair: Secretary, LGD under MLGRDC Members: (i) Director General, LGD (ii) Deputy Chief, LGD (iii) Senior Assistant Chief,

LGD (iv) Joint Chief, Physical

Infrastructure Division, Planning Commission

(v) Representative from Programming division, Planning Commission

(vi) Representative of NEC-ECNEC & Coordination Wing of the Planning Division

(vii) Representative of ERD (viii) Director, Department of

Environment (ix) Representative from KCC (x) Director, IMED (xi) Representative of Ministry

of Finance (xii) Managing Director,

KWASA, (xiii) Deputy Managing Director,

KWASA (xiv) Project Director, KWASA

(i) meets at least once in every three months; (ii) provides guidelines or formulates policies required for smooth

project implementation, such as institutional strengthening; (iii) reviews the recommendation of PIC for addressing issues during

project implementation and takes necessary decisions; and (iv) discusses and reviews any other matters related to project

implementation.

Project Implementation Committee Chair: Managing Director, KWASA Members: From KWASA:

(i) meets at least once in every three months; (ii) monitors progress of project implementation and provides

necessary assistance or suggestions for smooth project implementation;

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(i) Deputy Managing Director (ii) Project Director (iii) Assistant Chief From LGD: (iv) Deputy Secretary (WS) (v) Deputy Chief From IMED: (vi) Director Representatives of the: (vii) Physical Infrastructure

Division, Planning Commission

(viii) KCC (ix) KDA (x) Department of

Environment (xi) NEC-ECNEC and

Coordination Wing of Planning Division

(xii) ERD

(iii) prepares recommendations to PSC for addressing issues during project implementation, including on remedial actions when any indication of delay is identified; and

(iv) makes necessary decisions to resolve implementation issues.

PMU, KWASA (i) Project Director (1) (ii) Deputy Project Director (1) (iii) Executive Engineer (1) (iv) Accounts officer (1) (v) Assistant Engineer (5) (vi) Social Safeguard Officer

(1) (vii) Environmental Safeguard

officer (1) (viii) Sub-Assistant Engineer (8) (ix) Computer operator (2) (x) Driver (6) (xi) Office Assistant (2) * in addition, KWASA will provide junior safeguard staff.

(i) Responsible for the project implementation to ensure timely completion of the project;

(ii) monitors and ensures the compliance of project covenants; (iii) ensures project activities comply with the government laws and

regulations, particularly on environment; (iv) updates and implements the procurement plan and implements

the procurement in accordance with the plan; (v) serves as point of contact with ADB on project related matters,

maintains project documents, and prepares and submits reports (QPRs and PCR);

(vi) assists ADB during project review missions; (vii) engages the community for public awareness activities; (viii) consolidates accounts and submits withdrawal applications to

ADB; (ix) undertakes budgeting and financial planning and management; (x) opens and manages a project account (sub-advance account); (xi) submits all audited project accounts and financial statements on

the project within 6 months of the end of each fiscal year; (xii) establishes, maintains, and updates the project performance

monitoring; (xiii) supports consultants in all surveys, data collection exercises,

studies, and other agreed activities; and (xiv) ensures smooth and efficient O&M.

ADB (i) monitors overall project and subproject performance; (ii) communicates with KWASA on project implementation; (iii) conducts field review, midterm review, and project completion

review missions to assess project implementation progress and compliance of project covenants;

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

(v) approves and monitors safeguards documents and implementation compliance;

(vi) checks statement of expenditure and disburses the loan funds as per Loan Agreement; and

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(vii) conduct capacity building program on project implementation components, ADB policies, procurement, project management, safeguards and other compliance requirements.

ADB = Asian Development Bank, ERD = Economic Relations Division, IMED = Implementation Monitoring and Evaluation Division, KCC = Khulna City Corporation, KDA = Khulna Development Authority, KWASA = Khulna Water Supply and Sewerage Authority, LGD = Local Government Division, MLGRDC = Ministry of Local Government, Rural Development and Cooperatives, NEC-ECNEC = National Economic Council–Executive Committee of National Economic Council, O&M = operation and maintenance, PCR = project completion report, PIC = Project Implementation Committee, PMU = project management unit, PSC = project steering committee, QPR = quarterly progress report, WS = water supply. Sources: ADB and KWASA B. Key Persons Involved in Implementation

Executing Agency KWASA Md. Abdullah P.Eng

Managing Director Tel: +88 041 762996 Email: mdkwasa@yahoo.com

7 Roosevelt Jettyghat Road, Joragate, Khalispur, Khulna, Bangladesh

Asian Development Bank

Urban Development and Water Division South Asia Department

Mr. Norio Saito Director Tel: +632 632 6923 E mail: nsaito@adb.org 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

Mission Leader Mr. Jaemin Nam Urban Development Specialist Tel: +632 8632 1739 E mail: jnam@adb.org 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

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C. Project Organization Structure

Figure 1: Project Organizational Structure

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IV. COSTS AND FINANCING

10. The project is estimated to cost $275 million. The government has requested (i) a regular loan of $50 million; and (ii) a concessional loan of $110 million, both from ADB’s ordinary capital resources to help finance the project. The regular loan will have a 25-year term, including a grace period of 5 years; an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility; a commitment charge of 0.15% per year; and such other terms and conditions set forth in the loan and project agreements. Based on the straight-line method, the average maturity is 15.25 years, and the maturity premium payable to ADB is 0.10% per year.17 The concessional loan will have a 25-year term, including a grace period of 5 years; an interest rate of 2.00% per year during the grace period and thereafter, and such other terms and conditions set forth in the loan and project agreements. The summary cost estimates for the project is in Table 4.

Table 4: Summary Cost Estimates ($ million)

Item Amounta A. Base Costb

1. Climate-resilient centralized and organized sewerage system established 239.1 2. Institutional capacity of KWASA in sewerage services, and community

awareness on sanitation improved 8.0

Subtotal (A) 247.1 B. Contingenciesc 23.5 C. Financing Charges During Implementationd 4.4 Total (A+B+C) 275.0 KWASA = Khulna Water Supply and Sewerage Authority a Includes taxes and duties of $85.1 million to be financed from government resources by cash contribution. b In mid-2020 prices as of 1 June 2020; Exchange rate of $1 = Tk.84.9 is used. c Physical contingencies computed at 2.0% for base costs. Price contingencies computed at 1.5%-1.6% on foreign

exchange costs and 5.5%-5.6% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

d Includes interest and commitment charges. Interest during construction for the ordinary capital resources (OCR) loan has been computed at the 5-year United States dollar fixed swap rate plus a spread of 0.5% and a maturity premium of 0.1%. Commitment charges for the OCR loan are 0.15% per year to be charged on the undisbursed loan amount. Interest during construction for the concessional OCR loan has been computed at 2.0% per annum.

Source: Asian Development Bank. 11. The ADB loans will finance the expenditures in relation to civil works and O&M, equipment and goods, consultants, interest during implementation, and contingencies. The government will provide $115 million equivalent to cover (i) taxes and duties, (ii) incremental recurrent costs,18 (iii) commitment charges, and (iv) part of civil works and O&M, equipment and goods, and contingencies. The government will provide the ADB loans and counterpart funds to KWASA as a mix of loan and grant. The government has provided ADB with (i) reasons for its decision to borrow under ADB’s LIBOR-based lending facility based on the terms and conditions, and (ii) an undertaking that the choice was its own decision and not made based on any communication or advice from ADB. The summary financing plan for the project is in Table 5.

17 The maturity-based premium is based on loan terms and the government’s choice of repayment option and dates. 18 PMU operation costs are included in the incremental recurrent costs.

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Table 5: Summary Financing Plan

Source Amount ($ million)

Share of Total (%)

Asian Development Bank Ordinary capital resources (regular loan) 50.0 18.2 Ordinary capital resources (concessional loan) 110.0 40.0

Government 115.0 41.8 Total 275.0 100.0

Source: Asian Development Bank estimates. 12. Climate mitigation is estimated to cost $20.0 million, and climate adaptation is estimated to cost $25.4 million, including 10% of physical and price contingencies and 14.5% of taxes.19 ADB will finance 57.5% of mitigation costs and 60.6% of adaptation costs. A. Cost Estimates Preparation and Revisions

13. The cost estimates have been prepared based on the detailed project reports prepared by KWASA in consultation with the ADB project team. The cost estimate model was prepared using Microsoft Excel and is available. The cost estimates will be updated during project implementation. B. Key Assumptions

14. The following key assumptions underpin the cost estimates and financing plan: (i) Exchange rate: Tk84.9 = $1.0 (as of 1 June 2020) (ii) Price contingencies based on expected cumulative inflation over the

implementation period are as follows:

Table 6: Escalation Rates for Price Contingency Calculation

Item 2020 2021 2022 2023 2024 2025 2026 2027 Annual average

Foreign rate of price inflation 1.5% 3.1% 4.7% 6.3% 7.9% 9.5% 11.1% 12.7% 1.6% Domestic rate of price inflation 5.6% 11.1% 16.6% 22.1% 27.6% 33.1% 38.6% 44.1% 5.5% Source: Asian Development Bank estimates.

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

19 Adaptation measures are: part of household sewer connections and sewage treatment plants costs; awareness

generation and capacity building activities; GIS data mapping and interception; and diversion and treatment of wastewater discharge. Mitigation measures are: efficient equipment; solar power generation; and use of no-dig technology for installation of sewer pipes.

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C. Detailed Cost Estimates by Expenditure Category

Table 7: Detailed Cost Estimates by Expenditure Category

Item

Tk million $ million Foreign

Exchange Local

Currency Total Cost

Foreign Exchange

Local Currency

Total Cost

% of Total Base Cost

A. Investment costs 1. Civil works and O&M 5,874.7 13,386.6 19,261.2 69.2 157.7 226.9 91.8% (a) Sewer network 4,342.6 9,895.4 14,238.0 51.2 116.6 167.7 67.9% (b) Sewage treatment plants 1,532.1 3,491.2 5,023.3 18.0 41.1 59.2 23.9%

2. Equipment and goods 60.4 137.5 197.9 0.7 1.6 2.3 0.9% 3. Consultants 398.5 908.0 1,306.5 4.7 10.7 15.4 6.2%

(a) Project management 213.1 485.6 698.7 2.5 5.7 8.2 3.3% (b) Capacity development 185.4 422.4 607.8 2.2 5.0 7.2 2.9%

Subtotal (A) 6,333.5 14,432.1 20,765.6 74.6 170.0 244.6 99.0% B. Recurrent costs

1. Incremental administrative costs - 212.2 212.2 - 2.5 2.5 1.0% Subtotal (B) - 212.2 212.2 - 2.5 2.5 1.0% Total Base Cost 6,333.5 14,644.3 20,977.8 74.6 172.5 247.1 100.0% C. Contingencies

1. Physical contingencies 81.9 337.6 419.6 1.0 4.0 4.9 2.0% 2. Price contingencies 1,103.3 467.8 1,571.2 13.0 5.5 18.5 7.5%

Subtotal (C) 1,185.3 805.4 1,990.7 14.0 9.5 23.5 9.5% D. Financing charges

1. Interest during implementation 353.9 - 353.9 4.2 - 4.2 1.7% 2. Commitment charges 22.3 - 22.3 0.3 - 0.3 0.1%

Subtotal (D) 376.2 - 376.2 4.4 - 4.4 1.8% Total Project Cost (A+B+C+D) 7,895.0 15,449.8 23,344.7 93.0 182.0 275.0 111.3%

O&M = operation and maintenance, Tk = Bangladesh taka. Notes: 1. Numbers may not sum precisely because of rounding.

2. The costs of the actual audits of the project are minor and will be borne by the government. 3. Climate mitigation ($20.0 million) and adaptation costs ($25.4 million) are embedded in A1 and A3. 4. Land acquisition costs ($16.1 million) and resettlement costs ($0.43 million) have been included in a separate project approved by the government in

2018. 5. PMU operation costs are included in B1. 6. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A3 and B1. ADB will not finance land acquisition cost.

Source: Asian Development Bank estimates.

14

D. Allocation and Withdrawal of Loan Proceeds

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

No Item Total Amount Allocated for ADB Financing ($)

Basis for Withdrawal from the Loan Account

1. Civil works and O&M (sewage treatment plants) 37,468,000 88.2% of total expenditure

claimed*

2. Equipment and goods 1,981,000 97.1% of total expenditure claimed*

3. Consultants (project management) 5,254,000 100.0% of total expenditure

claimed*

4. Interest during implementation 826,000 100.0% of amount due

5. Unallocated 4,471,000

TOTAL 50,000,000

* Exclusive of taxes and duties imposed within the territory of the Borrower. ADB = Asian Development Bank, O&M = operation and maintenance. Source: ADB estimates.

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

Resources Concessional Loan No

Item Total Amount Allocated for ADB Financing ($)

Basis for Withdrawal from the Loan Account

1. Civil works and O&M (sewer network) 93,566,000 88.9% of total expenditure

claimed*

2. Consultants (capacity development) 4,577,000 100.0% of total expenditure

claimed*

3. Interest during implementation 3,343,000 100.0% of amount due

4. Unallocated 8,514,000

TOTAL 110,000,000 * Exclusive of taxes and duties imposed within the territory of the Borrower. ADB = Asian Development Bank, O&M = operation and maintenance. Source: Asian Development Bank estimates.

15

E. Detailed Cost Estimates by Financier

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

Item

ADB Regular OCR

ADB Concessional OCR Government Total

Costs

$ % $ % Tax Non-Tax Total % $

A. Investment costs 1. Civil works and O&M 37.5 16.5% 93.6 41.2% 79.2 16.6 95.9 42.2% 226.9 (a) Sewer network - 0.0% 93.6 55.8% 62.5 11.6 74.2 44.2% 167.7 (b) Sewage treatment plants 37.5 63.3% - 0.0% 16.7 5.0 21.7 36.7% 59.2

2. Equipment and goods 2.0 85.0% - 0.0% 0.3 0.1 0.3 15.0% 2.3 3. Consultants 5.3 34.1% 4.6 29.7% 5.6 - 5.6 36.1% 15.4

(a) Project management 5.3 63.8% - 0.0% 3.0 - 3.0 36.2% 8.2 (b) Capacity development - 0.0% 4.6 63.9% 2.6 - 2.6 36.1% 7.2

Subtotal (A) 44.7 18.3% 98.1 40.1% 85.1 16.7 101.8 41.6% 244.6 B. Recurrent costs

1. Incremental administrative costs - 0.0% - 0.0% - 2.5 2.5 100.0% 2.5 Subtotal (B) - 0.0% - 0.0% - 2.5 2.5 100.0% 2.5 Total Base Cost 44.7 18.1% 98.1 39.7% 85.1 19.2 104.3 42.2% 247.1 C. Contingencies

1. Physical contingencies 0.9 18.1% 2.0 39.7% - 2.1 2.1 42.2% 4.9 2. Price contingencies 3.6 19.3% 6.6 35.4% - 8.4 8.4 45.3% 18.5

Subtotal (C) 4.5 19.1% 8.5 36.3% - 10.5 10.5 44.6% 23.5 D. Financing charges

1. Interest during implementation 0.8 19.8% 3.3 80.2% - - - 0.0% 4.2 2. Commitment charges - 0.0% - 0.0% - 0.3 0.3 100.0% 0.3

Subtotal (D) 0.8 18.6% 3.3 75.4% - 0.3 0.3 5.9% 4.4 Total Project Cost (A+B+C+D) 50.0 18.2% 110.0 40.0% 85.1 29.9 115.0 41.8% 275.0

ADB = Asian Development Bank, O&M = operation and maintenance, OCR = ordinary capital resources. Notes: 1. Numbers may not sum precisely because of rounding.

2. The costs of the actual audits of the project are minor and will be borne by the government. 3. Climate mitigation ($20.0 million) and adaptation costs ($25.4 million) are embedded in A1 and A3. 4. Land acquisition costs ($16.1 million) and resettlement costs ($0.43 million) have been included in a separate project approved by the government in

2018. 5. PMU operation costs are included in B1. 6. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A3 and B1. ADB will not finance land acquisition cost.

Source: Asian Development Bank estimates.

16

F. Detailed Cost Estimates by Outputs

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

Item

Total Costs

Output 1 (sewerage system established)

Output 2 (institutional capacity strengthened)

$ % $ % A. Investment Costs 1. Civil works and O&M 226.9 226.9 100.0% - 0.0% (a) Sewer network 167.7 167.7 100.0% - 0.0% (b) Sewage treatment plants 59.2 59.2 100.0% - 0.0%

2. Equipment and goods 2.3 1.5 63.1% 0.9 36.9% 3. Consultants 15.4 8.2 53.5% 7.2 46.5%

(a) Project management 8.2 8.2 100.0% - 0.0% (b) Capacity development 7.2 0.0% 7.2 100.0%

Subtotal (A) 244.6 236.6 96.7% 8.0 3.3% B. Recurrent Costs 1. Incremental administrative costs 2.5 2.5 100.0% - 0.0%

Subtotal (B) 2.5 2.5 100.0% - 0.0% Total Base Cost 247.1 239.1 96.8% 8.0 3.2% C. Contingencies 1. Physical contingencies 4.9 4.8 97.1% 0.1 2.9% 2. Price contingencies 18.5 17.9 96.8% 0.6 3.2%

Subtotal (C) 23.5 22.7 96.8% 0.7 3.2% D. Financial Charges During Implementation 1. Interest during implementation 4.2 3.9 92.9% 0.3 7.1% 2. Commitment charges 0.3 0.2 92.9% 0.0 7.1%

Subtotal (D) 4.4 4.1 92.9% 0.3 7.1% Total Project Cost (A+B+C+D) 275.0 265.9 96.7% 9.1 3.3%

O&M = operation and maintenance. Notes: 1. Numbers may not sum precisely because of rounding.

2. The costs of the actual audits of the project are minor and will be borne by the government. 3. Climate mitigation ($20.0 million) and adaptation costs ($25.4 million) are embedded in A1 and A3. 4. Land acquisition costs ($16.1 million) and resettlement costs ($0.43 million) have been included in a separate project approved by the government in

2018. 5. PMU operation costs are included in B1. 6. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A3 and B1. ADB will not finance land acquisition cost.

Source: Asian Development Bank estimates.

17

G. Detailed Cost Estimates by Year

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

Items Total Costs 2021 2022 2023 2024 2025 2026 2027

A. Investment Costs 1. Civil works and O&M 226.9 23.8 37.9 95.0 67.6 1.1 1.1 0.3 (a) Sewer network 167.7 17.9 27.9 70.8 49.6 0.8 0.8 - (b) Sewage treatment plants 59.2 5.9 10.1 24.3 18.0 0.3 0.3 0.3

2. Equipment and goods 2.3 0.4 0.5 - 1.5 - - - 3. Consultants 15.4 1.2 1.7 3.2 4.0 3.1 1.9 0.4

(a) Project management 8.2 1.2 1.7 2.5 2.5 0.4 - - (b) Capacity development 7.2 - - 0.7 1.5 2.6 1.9 0.4

Subtotal (A) 244.6 25.3 40.1 98.2 73.1 4.2 3.0 0.7 B. Recurrent Costs

1. Incremental administrative costs 2.5 0.2 0.4 0.4 0.4 0.4 0.4 0.4 Subtotal (B) 2.5 0.2 0.4 0.4 0.4 0.4 0.4 0.4 Total Base Cost 247.1 25.6 40.5 98.6 73.5 4.5 3.3 1.1 C. Contingencies

1. Physical contingencies 4.9 0.5 0.8 2.0 1.5 0.1 0.1 0.0 2. Price contingencies 18.5 1.9 3.0 7.4 5.5 0.3 0.2 0.1

Subtotal (C) 23.5 2.4 3.8 9.4 7.0 0.4 0.3 0.1 D. Financial Charges During Implementation

1. Interest during implementation 4.2 0.1 0.5 1.3 2.2 - - - 2. Commitment charges 0.3 0.1 0.1 0.1 0.0 0.0 0.0 0.0

Subtotal (D) 4.4 0.2 0.6 1.3 2.3 0.0 0.0 0.0 Total Project Cost (A+B+C+D) 275.0 28.2 45.0 109.3 82.7 5.0 3.6 1.2

% Total Project Cost 100.0% 10.3% 16.3% 39.7% 30.1% 1.8% 1.3% 0.4% O&M = operation and maintenance. Notes: 1. Numbers may not sum precisely because of rounding.

2. The costs of the actual audits of the project are minor and will be borne by the government. 3. Climate mitigation ($20.0 million) and adaptation costs ($25.4 million) are embedded in A1 and A3. 4. Land acquisition costs ($16.1 million) and resettlement costs ($0.43 million) have been included in a separate project approved by the government in

2018. 5. PMU operation costs are included in B1. 6. Environmental monitoring and implementation of resettlement plan, gender action plan, and public communication costs are absorbed in A3 and B1. ADB will not finance land acquisition cost.

Source: Asian Development Bank estimates.

18

H. Contract and Disbursement S-Curve

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

Year Contract Awards Disbursements

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 2021 5.8 0.9 41.2 47.9 0.6 3.8 0.4 4.8

2022 1.4 1.7 2.3 3.3 8.7 2023 3.3 4.7 5.4 5.5 18.9 2024 1.3 1.3 7.4 7.7 0.5 0.6 16.2

2025 0.3 0.1 0.1 0.1 0.6 2026 0.1 0.1 0.1 0.1 0.4 2027 0.1 0.1 0.1 0.1 0.4

Total 7.1 0.9 41.2 49.2 12.6 15.0 12.3 10.1 50.0 Q = quarter. Source: Asian Development Bank.

Figure 2: S-Curve for Regular Ordinary Capital Resources

-

30.00

60.00

2021 2022 2023 2024 2025 2026 2027

$ M

illio

ns

Contract Award Disbursement

19

Table 14: Contract Awards and Disbursement for Concessional Ordinary Capital Resources ($ million)

Year Contract Awards Disbursements

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 2021 101.6 101.6 3.4 3.8 3.6 10.8 2022 1.8 3.6 5.2 6.7 17.3

2023 5.0 5.0 8.1 10.5 12.1 13.7 44.4 2024 15.0 11.9 4.8 1.3 33.0 2025 0.5 0.6 0.6 0.6 2.3

2026 0.6 0.6 0.3 0.3 1.8 2027 0.2 0.2 0.4 Total 101.6 5.0 106.7 26.2 30.8 26.8 26.2 110.0

Q = quarter. Source: Asian Development Bank.

Figure 3: S-Curve for Regular Ordinary Capital Resources

-

30.0

60.0

90.0

120.0

2021 2022 2023 2024 2025 2026 2027

$ M

illio

ns

Contract Award Disbursement

20

I. Fund Flow Diagram

Figure 4: Fund Flow

ADB

KWASA (PMU)

MOF Treasury account

Contractors, Supplier, Service Providers, etc.

WAs submitted to ADB (Advances, replenishments, liquidations, direct payments,

reimbursements,) Invoices, etcPayments in

BDT

Advances/replenishments to the Advance Account

Transfer Authorization

from AA to Sub AA by MoF

(finance division)

GoB counterpart

funds (Budget allocation)

Direct payments by ADB in foreign currency

KWASA Advance Account ($) in

Bangladesh Bank

KWASA Sub Advance

Account (BDT) in a

Commercial Bank

KWASA Project

Account (BDT) in a

Commercial Bank

Requests for Budget

releases & transfers -

through LGD/MoLGRDC

Flow of Funds =

Flow of documents =

Reimbursement to MoF or KWASA project account as

applicable

ADB = Asian Development Bank, BDT = Bangladesh Taka, KWASA = Khulna Water Supply and Sewerage Authority, LGD = Local Government Division, MLGRDC = Ministry of Local Government, Rural Development and Co-operatives, MOF = Ministry of Finance, PMU = project management unit. Source: Asian Development Bank.

21

V. FINANCIAL MANAGEMENT ASSESSMENT

A. Financial Management Assessment

15. The financial management assessment (FMA) was conducted in March–May 2020, in accordance with ADB’s Guidelines.20 FMA considered the financial management capacity of KWASA including funds-flow arrangements, governance, staffing, budgeting, accounting and financial reporting systems, internal control procedures, financial information systems, and internal and external auditing arrangements. The purpose of FMA is to ensure that adequate financial management arrangements are in place for the project. 16. The results of FMA found that KWASA has experience in implementing ADB-assisted water supply project and has adequate financial management capacity to: (i) provide reliable annual financial statements and audit reports in a timely manner; (ii) safeguard the financial assets; and (iii) manage the advance account and the statement of expenditure (SOE) procedure up to a threshold of $100,000 under ADB’s disbursement procedures. However, FMA concluded that the financial management risk is substantial, because of the following risks: (i) the accounts officer has not been appointed in project management unit (PMU) as there is no PMU established yet; (ii) there is no designated internal auditor in KWASA; and (iii) the entity financial statements are not audited annually. 17. The identified risks will be mitigated through the following actions: (i) appointing an experienced accounts officer full time to PMU; (ii) providing training on ADB’s financial reporting, audit requirements, and disbursement procedures and systems; (iii) improving the quality and comprehensiveness of annual and quarterly financial reporting; (iv) assigning an officer as a focal to develop an internal audit function in KWASA; and (v) ensuring the KWASA’s entity financial statements are audited annually by an independent auditor in accordance with International Standards on Auditing. Furthermore, external financial management experts will be engaged as part of project consultants to further strengthen the financial management capacity of PMU and develop KWASA’s financial management systems. Moreover, as per ADB requirements, the project will maintain separate books of account in accordance with accounting standards acceptable to ADB and the detailed project financial statement will be audited annually by an independent auditor acceptable to ADB in accordance with auditing standards acceptable to ADB. The key financial management risks and mitigation actions identified are shown in Table 15.

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

Management Plan Risk Description

Risk Assessment Mitigation Measures or Risk Management Plan

Inherent Risk 1. Country

Specific Substantial

Partly weak PFM systems and financial management capacity.

Not applicable for this project.

2. Entity-specific

Substantial KWASA has past experience in implementing ADB-assisted water supply project. However, there is scope for improving the entity level financial management arrangements (e.g. there is no internal audit function and KWASA’s entity financial statements are not audited annually).

To improve the financial manage arrangements at the entity level, KWASA will: (i) assign an officer as a focal to develop an internal audit function in KWASA, (ii) ensure its entity financial statements are audited annually in accordance with ISA by independent auditor appointed by the KWASA board, and (iii) engage a financial management expert as part of project consultants to

20 ADB. 2015. Financial Due Diligence: A Methodology Note. Manila.

22

support KWASA to strengthen its financial management systems and internal controls.

3. Project specific

Moderate The amount of ADB financing is significantly larger than in the previous project.

Risk mitigation actions are listed below.

Overall Inherent Risk

Substantial

Project Risk 1. Implementing

entity Moderate

KWASA has experience in implementing an ADB-financed project through PMU. A new PMU will be established for the project but there may be delays in establishing and staffing the PMU.

PMU to be established and fully staffed by loan signing.

2. Funds flow Moderate KWASA has experience in ADB’s disbursement procedures including the use of an advance account and SOE. The established flow of funds arrangements has been working well in the past. The government’s counterpart financing may not be released on time which may cause delays in project implementation.

- Firm commitment from the government for the timely release of counterpart funds.

- Direct Payment mechanism is to be used for major foreign currency payments for contractors and suppliers for ADB share.

- SOE threshold set at $100,000 per individual payment.

3. Staffing Substantial Vacant accounts officer position in PMU, moderately high workload, and lack of experience with ADB’s systems and procedures among new staff.

- The account officer position in PMU to be filled by loan signing.

- Financial management experts to be engaged to support PMU and develop KWASA’s systems.

- Continuous training to be provided in ADB’s financial reporting and audit requirements as well as disbursement procedures and systems.

4. Accounting policies and Procedures

Substantial Some internal control weaknesses were identified as part of the entity and project audits. There is scope for improving reconciliation practices and variance analysis as part of the project implementation.

- KWASA and PMU to monitor the aging of the audit observations and follow up on the implementation of the audit recommendations.

- Undertake: (i) monthly reconciliations of project accounts and ADB disbursement records and (ii) quarterly variance analysis of budgeted vs actual expenditures.

- Conclusions of the reconciliation and variance analysis to be reported as part of QPRs.

5. Internal Audit Substantial No designated internal audit officer in place.

- Assign an officer as a focal to develop an internal audit function in KWASA.

- Strengthen the KWASA’s internal audit function with support of project consultants: (e.g. (i) development of an internal audit TOR, and (ii) a monitoring system for KWASA’s management to track the status and aging of past audit observations, etc.)

23

6. External Audit

Substantial

Entity level: The entity financial statements are not audited annually.

Project level: FAPAD may not provide an audit opinion on the use of funds. Auditor may not issue a separate opinion of the financial ratios. Long outstanding and recurring audit observations.

- The KWASA entity financial statements must be audited annually in accordance with ISA by an independent auditor appointed by the Board of KWASA

- The project will liaise with FAPAD to ensure the project is part of FAPAD’s annual audit plan and that ADB’s audit requirements are strictly followed.

- PMU to ensure a separate audit opinion on the financial ratios as computed by KWASA is provided annually.

- The audit observations to be resolved in a timely manner. The status of audit observations to be included in QPRs.

7. Reporting and Monitoring

Substantial At the project level, there is scope for improving the quarterly financial reporting as well as the quality of the project financial statements. .

- Comprehensive financial information to be included in the QPRs in a format agreed with ADB within 45 days after the end of each quarter.

- The PFS to be improved by including the following: (i) a statement of budgeted vs actual expenditures, (ii) a withdrawal application wise reconciliation and (iii) comprehensive disclosure of used accounting policies, and financial reporting framework in the notes.

- Computations of the entity level financial ratios as defined in the legal agreements to be provided by KWASA on a timely manner.

8. Information Systems

Moderate The existing information systems to be supplemented with the use of ADB’s disbursement systems to ensure the project financial reports are complete and accurate.

- Use of ADB client portal for disbursement to submit and track withdrawal applications to ensure timely availability of funds.

- Use of LFIS to reconcile ADB disbursement records with project records on a quarterly basis to ensure all withdrawal applications have been correctly reflected in the PFS.

Overall Project Risk

Substantial

Overall Financial Management Risk

Substantial

ADB = Asian Development Bank, FAPAD = Foreign Aided Projects Audit Directorate, ISA = International Standards on Auditing, KWASA = Khulna Water Supply and Sewerage Authority, LFIS = Loan Financial Information Services, PFM = public financial management, PFS = Project Financial Statements, PMU = project management unit, QPR = Quarterly Progress Report, SOE = Statement of Expenditure, TOR = Terms of Reference. Source: Asian Development Bank. 18. In order to mitigate the identified financial management risks, KWASA has agreed to implement a financial management action plan. The agreed financial management action plan is provided in the Table 16.

24

Table 16: Financial Management Action Plan Area Agreed Action Responsibility Target date

Staffing Establishing PMU and appoint an experienced accounts officer full time to PMU. Engage financial management experts to support PMU in meeting ADB’s financial management requirements as part of PMSC. Engage a financial management expert as part of IADC to support the development of KWASA’s accounting and financial management systems as well as internal controls.

KWASA By Loan signing. Throughout project implementation and in accordance with the agreed procurement plan.

Financial management capacity building

Training provided on ADB’s financial management requirements and disbursement procedures and systems (LFIS, CPD)

KWASA and ADB

By inception and continuous throughout the project implementation.

Internal audit Assign an officer as a focal to develop an internal audit function in KWASA Strengthen the KWASA’s internal audit function through IADC: (e.g. (i) development of an internal audit TOR, (ii) establishment of a monitoring system for KWASA’s management to track the status and aging of past audit observations, etc.)

KWASA Within the first year of project implementation Throughout project implementation based on the approved procurement plan.

External audit - entity level

Ensure the entity financial statements are audited by an independent auditor appointed by the Board of KWASA in accordance with ISA.

KWASA Annually starting from 2021

External audit - Project level

Ensure the project is included in the audit plan of the FAPAD; Cause project financial statements to be audited separately by FAPAD in accordance with ADB’s audit requirements and submit the APFS and management letter to ABD. Ensure a separate audit opinion on the financial ratios as computed by KWASA is provided annually by the KWASA’s as part of the KWASA entity audit.

KWASA Within 2 months after loan effectiveness. Annually throughout the project implementation.

Financial reporting

Include comprehensive financial information as agreed with ADB in the quarterly progress reports to be submitted to ADB. Prepare PFS in a format agreed with ADB (including statement of budget vs actual, withdrawal application-wise reconciliation and comprehensive notes disclosures)

KWASA Within 45 days after each quarter. Within 2 months after loan effectiveness.

Information systems

Use of ADB disbursement systems (CPD and LFIS) to reconcile project accounts and ADB disbursement records on a

KWASA Quarterly from loan first disbursement

25

quarterly basis. Detailed reconciliation by withdrawal application to be included in the QPRs and the APFS submitted to ADB.

throughout project implementation.

ADB = Asian Development Bank, APFS = audited project financial statements, CPD = Client Portal for Disbursements, FAPAD = Foreign-Aided Projects Audit Directorate, IADC = institutional development, awareness creation, and design consultant, KWASA = Khulna Water Supply and Sewerage Authority, LFIS = Loan Financial Information Services, PFS = Project Financial Statements, PMSC = project management and supervision consultant, PMU = project management unit, QPR = Quarterly Progress Report, TOR = Terms of Reference Source: Asian Development Bank. B. Disbursement arrangements for ADB funds

19. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time),21 and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.22 PMU staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. 20. ADB’s disbursement procedures (direct payment, reimbursement, commitment, and/or advance fund procedure) will be used for withdrawal of project funds.

(i) Direct payment procedures will be used for foreign currency payments to contractors, suppliers and consultants;

(ii) Reimbursement will be used for any eligible payments pre-financed by the government, including all expenditures financed under retroactive financing;

(iii) Advance fund (liquidation or replenishment) procedures will be mainly utilized for payments to suppliers, contractors when government pre-financing is not feasible; and

(iv) Under the commitment procedure, ADB, at the borrower's request, provides an irrevocable undertaking to reimburse a commercial bank for payments made or to be made to a supplier against a letter of credit financed from the loan account.

21. Advance fund procedure. A separate advance account is to be established and maintained by KWASA with the Bangladesh Bank for the ADB loans. The currency of the advance account is the United States dollar. In addition, a sub-account in Bangladesh Taka will be established in a commercial bank and maintained by KWASA. The advance account and the sub-account are to be used exclusively for ADB’s share of eligible expenditures. KWASA is accountable and responsible for proper use of advances to the advance account including advances to any sub-account. 22. The total outstanding advance to the advance account should not exceed the estimate of ADB’s share of expenditures to be paid through the advance account for the forthcoming 6 months. KWASA may request for initial and additional advances to the advance account based on an estimate of expenditure sheet23 setting out the estimated expenditures to be financed through the accounts for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by the Ministry of Finance in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time) when liquidating or replenishing the advance account.

21 ADB. 2017. Loan Disbursement Handbook. Manila. 22 Disbursement eLearning: http://wpqr4.adb.org/disbursement_elearning. 23 Estimate of expenditure sheet is available in Appendix 8A of ADB’s Loan Disbursement Handbook (2017, as

amended from time to time).

26

23. Statement of expenditure procedure. 24 The SOE procedure may be used for reimbursement of eligible expenditures or liquidation of advances to the advance account. The ceiling of the SOE procedure is equivalent to $100,000 per individual expenditure paid by KWASA. Supporting documents and records for the expenditures claimed under SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation for individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB. 24. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the persons 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 stipulated in the ADB’s Loan Disbursement Handbook (2017, as amended from time to time). Individual payments should be paid (i) by KWASA and subsequently claimed to ADB through reimbursement, or (ii) through the advance fund procedure, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements (CPD) system25 is mandatory for submission of withdrawal applications to ADB. C. Disbursement Arrangements for Counterpart Funds 25. The government counterpart funds will be sufficiently allocated in the budget annually. Disbursement for counterpart funds will be carried out in accordance with guidelines and practices of the government. KWASA will be responsible for preparing the budget and requesting budgetary allocations for counterpart funds to the Ministry of Finance. KWASA ensure that counterpart funding is reflected annually in the approved budget and the annual capital expenditure budget of KWASA. D. Financial Management Capacity Building of PMU and Resources 26. In order to ensure sufficient knowledge in ADB’s financial management requirements, including procedures and related systems, KWASA will ensure that each PMU accounts staff assigned to the project undertakes the following actions within the first three months working with the project:

(i) Become aware of the ADB and national anticorruption policy and whistle blowing mechanisms;

(ii) Master loan agreement including the loan covenants and the relevant sections of project administration manual (PAM), as well as the ADB loan disbursement handbook; and

(iii) Obtain user/reader rights (as required) to ADBs systems including: CPD and the Loans and Grants Information Service.

27. In addition, PMU should on a yearly basis liaise with ADB to take advantage of other financial management resources26 and training events organized by ADB, especially in the first two years of project implementation.

24 SOE forms are available in Appendix 7B and 7D of ADB’s Loan Disbursement Handbook 2017 (2017, as

amended from time to time). 25 The CPD facilitates online submission of withdrawal applications to ADB, resulting in faster disbursement. The

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

26 ADB e-learning courses include: ADB Disbursement eLearning course and Cash Basis IPSAS for ADB Project Financial Reporting.

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E. Accounting and Financial Reporting 28. KWASA will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following the government’s financial regulations. The financial statements will include at least the following:

(i) Statement of cash receipts and payments; showing the funds received by each funding source (ADB loans, counterpart funds, etc.) and expenditures incurred by expenditure category for the current year, prior year and cumulative from inception to date;

(ii) Statement of budget vs actual expenditures; any significant variance must be sufficiently explained in the notes;

(iii) Statement of Advance account reconciliation for each advance account; (iv) Statement of disbursement with a breakdown for each funding source; and (v) Detailed notes to the financial statements including significant accounting

policies.

29. The notes of the financial statements must provide a detailed breakdown of at least the following:

(i) Funds received from the government during the current year, previous year and cumulative to date; and

(ii) A list of withdrawal application submitted to and the amounts paid by ADB as follows: (i) financing source, (ii) withdrawal application number, (iii) amount claimed and currency, (iv) period when expenditures were incurred, (v) date submitted, (vi) disbursement method, (vii) the amount disbursed by ADB, and (viii) the exchange rate as applicable.

30. The expenditure categories and outputs used in the financial reports will be aligned with the structure outlined in the PAM. Indicative format of the project financial statements are included in the PAM as Appendix 2. 31. The expenditure categories and outputs used in the financial reports will be aligned with the structure outlined in PAM. Moreover, to allow for timely and efficient monitoring, KWASA through its PMU, will ensure that comprehensive financial information is included in the quarterly progress reports to be submitted to ADB within 45 days after the end of the quarter. 32. The summary information will include at least the following:

(i) Cumulative contract awards financed by the ADB loan, and counterpart funds (commitment of funds to date), and comparison with time-bound projections (targets – for ADB financing compare the actual contract awards with the contract award curve included in the PAM). Any significant variances between planned and actual contract awards are to be explained;

(ii) Cumulative disbursements from the ADB loans, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets – for the ADB financing compare the actual disbursement with the disbursement projections as per the S-curve included in PAM). Any significant variances between planned and actual disbursements are to be explained;

(iii) Reconciliation of project records and ADB disbursement records (LFIS/GFIS) for the financial year to date and cumulative from project inception to end of the reporting period. Any discrepancies and outline follow-up actions required are to be explained;

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(iv) Variance analysis including budget vs actual expenditures and physical vs financial progress, with significant deviations explained;

(v) Summary of the status of financial covenants (if any) as outlined in the loan and project agreement;

(vi) Summary of the status of financial management in the project including: (a) any problems in the existing financial management arrangements and/or flow of funds; and (b) any significant changes occurred during the reporting period (e.g. financial management staff turnover, implementation of new financial systems, emerging financial management-related risks, etc.);

(vii) Summary of the status of the (a) financial management action plan outlined in PAM, (b) recommendations and actions raised by ADB as part of the audited project financial statement (APFS) review (if any), and (c) financial management-related recommendations agreed during ADB review missions (if any); and

(viii) Summary of the status of past audit observations (resolved/ pending). 33. The following detailed schedules will be attached to the quarterly progress reports as annexes:

(i) Statement of Cash Receipts and Payments by Category; (ii) Physical vs Financial progress report by output; (iii) List of signed contracts; (iv) Detailed reconciliation (by withdrawal application) of project records and ADB

disbursement records (LFIS/GILFIS) for the fiscal year to date and cumulative; (v) Status of external audit observations (resolved/ pending); and (vi) Status of financial management action plan (complied/ongoing).

34. Indicative format of the quarterly progress report is included in the PAM as Appendix 3. 35. Variance analysis. As part of the variance analysis, KWASA through its PMU will examine the differences between budgeted vs. actual expenditures as well as financial vs. physical progress. The variance analysis will pay particular attention to:

(i) significant deviations from the budgeted engineer’s estimates; (ii) Significant deviations between financial and physical progress; (iii) Significant delays on (planned vs. reported) physical and/or financial progress;

and (iv) Inconsistent and/or delayed progress reporting.

36. Any significant variances, delays or deviations etc. shall be promptly followed-up on and explained in the financial reports. 37. Periodic Reconciliations. To ensure the correctness and completeness of the project’s books of accounts and financial reports, KWASA through its PMU shall conduct:

(i) Monthly reconciliations of the advance account, and its subaccount; and, (ii) Quarterly reconciliation of the project book of accounts, and ADB’s

disbursement data available in LFIS.

38. Any discrepancies and/or reconciliation items will be followed up on to ensure these are resolved in a prompt manner and that there are no misstatements in the financial reports. The differences between amounts claimed and the amounts disbursed will be disclosed and explained in the WA register to be included in the financial reports. F. Auditing and Public Disclosure

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39. KWASA will cause the detailed project financial statements to be audited in accordance with International Standards on Auditing by an independent auditor acceptable to ADB.27 The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by KWASA. KWASA through its PMU will ensure that total amount in APFS will reconcile with amounts disbursed by ADB during the respective fiscal year.

40. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; and (ii) whether the proceeds of the loan were used only for the purpose of the project. The management letter will include from the second year onwards, a follow-up on previous years audit observations. In case the auditor does not issue a management letter, the auditor must issue a written confirmation that no internal control issues were identified as part of the audit. 41. Moreover, the audited entity financial statements (AEFS) of KWASA, together with the auditor’s report, will be submitted in English to ADB within 1 month after their approval by the KWASA Board of Directors. KWASA shall prepare the computations demonstrating compliance with the financial ratios as defined in the legal agreements every year, as part of its entity financial reporting. The statutory auditors will provide an additional opinion on achievement of the financial ratios under ISAE 3000 (as applicable in Bangladesh). Indicative audit opinion on financial ratios including computations are provided in Appendix 4). 42. Compliance with financial reporting and auditing requirements will be monitored by ADB’s review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

43. The government and KWASA have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.28 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. 44. Public disclosure of APFS, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Access to Information Policy 2018.29 After the review, ADB will disclose APFS and the opinion of the auditors on the project financial statements no

27 It is expected that the project financial statement will be audited by Foreign Aided Projects Audit Directorate

(FAPAD) under the Comptroller and Auditor General of Bangladesh. 28 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

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

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

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

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later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and AEFS will not be disclosed. G. Loan Closure 45. In order to close the ADB loan account in a timely manner and to comply with ADBs requirements, KWASA will ensure that the following measures are undertaken:

(i) All ADB-financed expenditures are incurred before or by the loan closing date; (ii) All withdrawal applications including liquidations of the advance account are

submitted to ADB preferably by the loan closing date but in no case later the end of the winding up period; that is, within four months after the end of the loan closing date;

(iii) Any unutilized advances are refunded to ADB within two months after the end of the winding up period;

(iv) The final project financial statements (PFS) are prepared in a timely manner. The final PFS is to include a reconciliation of the project account and the ADB disbursement records for the fiscal year and cumulatively from inception. Any differences must be disclosed and explained;

(v) All past external audit observations have been duly addressed; (vi) The final project financial statements are audited by independent auditors as

agreed with ADB and APFS and the management letter are submitted to ADB as soon as possible after the loan closing date. The Final APFS must include all expenditures incurred up to the loan closing date as well as up to the final withdrawal application; and

(vii) All projects financial records are filed in an orderly manner, backed up electronically and stored in a secure location for a for at least 1 year following receipt by ADB of the final APFS or 2 years after the loan closing date, whichever is later.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

46. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Guidelines (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower and KWASA have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. In all such cases of advance contracting and retroactive financing, the project will need to ensure that any land acquisition and resettlement work and actions undertaken for such activities is assessed and compliance to the SPS ensured. 47. Advance contracting. Advance contracting may be entered for (i) civil works and O&M, (ii) equipment and goods, and (iii) recruitment of consultants. Advance contracting that may be concluded in advance include (i) pre-qualification (if applicable) of contractors, preparation of procurement documents, procurement, and bid evaluation and award for civil works packages; (ii) preparation of procurement documents to procure equipment and goods, procurement and bid evaluation, and award; and (iii) recruitment of consultants. 48. Retroactive financing. Retroactive financing refers to ADB’s financing of project expenditures incurred and paid for by the borrower prior to the effectiveness of the loan agreement but not earlier than 12 months prior to the signing of the loan agreement. Except as otherwise agreed with ADB, the expenditures incurred for civil works and O&M, equipment

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and goods, and recruitment of consultants that are eligible for advance contracting, and project management and implementation expenses of PMU will be eligible for retroactive financing of up to 20% of the ADB loan amount.

B. Procurement of Goods, Works, and Consulting Services

49. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Policy (2017, as amended from time to time); and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). 50. Open competitive bidding (OCB)-International advertisement will be used for civil works contracts estimated to cost $15 million or above, and goods contracts valued at $1 million or above. OCB-National advertisement procedures will be used for civil works contracts estimated to cost less than $15 million, and goods contracts valued at less than $1 million. Request for quotation may be used for contracts for procurement of works and goods worth less than $100,000. 51. Before the start of any procurement, ADB and the government will review the public procurement laws of the government to ensure consistency with ADB’s Procurement Policy (2017, as amended from time to time). All procurement of works and goods under national competitive bidding (OCB-National Advertisement) using any type of standard procurement document agreed upon shall be subject to prior review by ADB. 52. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and guidelines on OCB-National Advertisement is presented in Appendix 5. 53. All consultants will be recruited according to ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).30 An estimated 185 person-months of international and 840 person-months of national consulting services are required to (i) facilitate preparation and supervision; (ii) strengthen institutional and community capacity; (iii) support project management, monitoring, and evaluation; and (iv) facilitate gender and development. Two consultants’ teams will be recruited through firms using the quality- and cost-based method of selection with a quality-cost ratio of 90:10 to ensure engagement of highly qualified and experienced team of consultants. The terms of reference for all consulting services are detailed in Section D.

C. Procurement Plan

54. The procurement plan (Appendix 5) is prepared in accordance with ADB’s template. The procurement plan indicates threshold and review procedures, goods, works, and consulting service contract packages and guidelines on OCB-National Advertisement. The procurement plan provides: (i) list of goods, works, and consulting services contract packages that will be processed over the next 18 months with milestone dates for activities; (ii) the proposed methods for procurement of such contracts that are permitted under the loan agreement; and (iii) the related ADB review procedures. The procurement packages in the procurement plan will be updated by KWASA or PMU for approval by ADB. The procurement plan will be updated at least annually, and more frequently if necessary. ADB will review each updated procurement plan prior to its publication.

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

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

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D. Consultant's Terms of Reference

55. Outline terms of reference for the consultants are available in Appendix 6.31

VII. SAFEGUARDS

A. Environmental Safeguards

56. Screening and Categorization. The project is classified as Category B for environment per ADB Safeguard Policy Statement (SPS) 2009. The project is composed of three packages, which all together form the complete infrastructure for sewage collection, conveyance, and treatment in Khulna city. An initial environmental examination (IEE) report was prepared for the project in accordance with ADB SPS requirements and relevant government laws, rules, and regulations. Three distinct environmental management plan (EMPs) corresponding to the three packages were also prepared and included as part of draft IEE. Based on draft IEE, no significant adverse impacts are envisioned under the project. All project locations are located outside sensitive areas and any impacts during construction and O&M can be avoided and/or mitigated through measures identified in the EMPs. Per government’s Environmental Conservation Act, 1995 and Environmental Conservation Rules, 1997, the project is classified under “Red” category. Therefore, an environmental impact assessment based on approved terms of reference by the Department of Environment (DOE) will be prepared by KWASA for the issuance of environmental clearance certificate (ECC). The ECC will be obtained from the DOE prior to award of civil works contracts. A capacity building program is included under the project to strengthen overall capacity of KWASA through PMU. While KWASA has demonstrated good capacity from the previous water supply project, project consultants will support PMU in enhancing its capacity to manage environmental impacts during project implementation. Grievances will be handled following the project grievance redress mechanism as stated in Appendix 7. PMU will also prepare a semiannual environmental monitoring report (SEMR) for ADB review and disclosure. 57. Final IEE and EMPs. PMU will re-assess the environmental impacts and mitigation measures of the project once final detailed designs of STPs are prepared and finalize the draft IEE and EMPs accordingly. No contracts for the STPs shall be awarded until IEE is finalized as final IEE with EMPs will form part of the bidding and contract documents. All statutory clearances and no objections will be obtained prior to start of construction activities. In the event of unanticipated impact, including a design change, during project implementation, IEE will be updated to include corrective actions, updated mitigation measures, associated costs, and schedule. The updated IEE with EMPs will be provided to and acknowledged by the contractors and disclosed on ADB and PMU websites. 58. Environmental Audit of Existing Facilities. If the project involves facilities that already exist or are under construction or proposed, environmental compliance audit will be conducted. The environmental audit will include on-site assessment to identify past or present environmental concerns, whether actions were taken in accordance with ADB’s safeguard principles and requirements and identify and plan appropriate measures to address outstanding compliance issues. A corrective action plan will be agreed on by ADB and PMU. The plan will define the necessary remedial actions, the budget for such actions, and the timeframe for resolution of non-compliance. An environmental audit report (including the corrective action plan, if any) will be made available to the public in accordance with the information disclosure requirements of ADB SPS.

31 Terms of reference: http://www.adb.org/Documents/Manuals/Consulting-Services-Operations-

Manual/CSOM.pdf?bcsi_scan_D4A612CF62FE9576=AORY9a8Nho2ezS9Xss/ligEAAAANNiAA&bcsi_scan_filename=CSOM.pdf (paras 65–72).

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59. Environmental Safeguards Institutional Arrangements. Figure 5 depicts the institutional arrangement for environmental safeguards.

Figure 5: Environmental Safeguards Implementation Arrangement

ADB = Asian Development Bank, EHS = environmental, health and safety, IADC = institutional development, awareness creation and design consultants, KWASA = Khulna Water Supply and Sewerage Authority, PMSC = project management and supervision consultant, PMU = project management unit. 60. Project Management Unit. An environmental safeguards officer will be assigned in PMU to ensure efficient overall implementation of environmental safeguards. The environmental safeguards officer will be supported by environment specialist consultants through project management and supervision consultant (PMSC) and institutional development, awareness creation and design consultants (IADC), and capacity development and training. The responsibilities of the environmental safeguards officer are to:

(i) review and confirm draft IEE including EMPs are finalized based on detailed designs of STPs;

(ii) update the final IEE including EMPs if changes in detailed design of any package occur during implementation phase;

(iii) ensure that EMPs are included in bidding documents and civil works contracts; (iv) provide oversight on environmental management aspects of subprojects and

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

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

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

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

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

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

(x) address any grievances brought about through the grievance redress mechanism (GRM) in a timely manner as per the IEEs (GRM is in Appendix 7);

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

(xii) organize periodic capacity building and training programs on safeguards for project stakeholders, PMU, and contractors.

61. PMSC and IADC. The PMSC team (Q12021–Q12025) and IADC team (Q32023–Q32027) will have their respective Environment Specialist Consultants who will assist PMU in the review and updating of all necessary environmental safeguard documentation as required by ADB SPS and national laws, regulations, policies and guidelines applicable to the project. Specific tasks of the PMSC/IADC Environment Specialist Consultants are to assist PMU in:

(i) finalizing the IEE including EMPs based on final detailed design of the STP package and in accordance with ADB SPS and national laws, regulations, policies and guidelines;

(ii) updating the final IEE including EMPs if changes in detailed design of any package occur during implementation phase;

(iii) conduct of due diligence of associated facilities and/or audit of existing facilities, if any, during the detailed design phase, as defined in ADB SPS;

(iv) conduct of meaningful consultations and ensure issues/concerns/suggestions raised are incorporated in the design and updated/final IEE report;

(v) ensuring relevant provisions from the updated/final IEE report and EMPs are incorporated in the bid and contract documents;

(vi) establishing GRM and ensure members of the grievance committee have the necessary capacity to resolve project-related issues/concerns;

(vii) conduct of safeguards capacity building, together with the social safeguard experts, to ensure PMU has the capacity to implement, monitor, and report on implementation of EMPs, resettlement plans and indigenous peoples plans (if any);

(viii) day to day monitoring of implementation of EMPs at all works sites, including all potential safeguard issues identified in the safeguard documentation mentioned above; and

(ix) monitoring any unanticipated environmental risks or impacts that may arise during construction, implementation or operation of the project that were not considered in the IEE report and EMPs. Prepare corrective action plans and ensure that these are implemented by the contractor and reported accordingly in environmental monitoring reports to ADB.

62. Civil Works Contracts and Contractors. The IEE with EMPs is to be included in bidding and contract documents and verified by PMU. The contractor will be required to designate an environment, health and safety supervisor to ensure implementation of EMP during civil works. Contractors are to carry out all environmental mitigation and monitoring measures outlined in their contract. The contractor will be required to submit to PMU, for review and approval, a site-specific environmental management plan (SEMP) including (i) proposed sites/locations for construction work camps, storage areas, hauling roads, lay down areas, disposal areas for solid and hazardous wastes; (ii) specific mitigation measures following the approved EMP; (iii) monitoring program as per EMP; and (iv) budget for SEMP implementation. No works can commence prior to approval of SEMP. 63. A copy of the EMP/approved SEMP will be kept on-site during the construction period at all times. Non-compliance with, or any deviation from, the conditions set out in the EMP/SEMP constitutes a failure in compliance and will require corrective actions. 64. PMU will ensure that bidding and contract documents include specific provisions requiring contractors to comply with: (i) all applicable labor laws and core labor standards on (a) prohibition of child labor as defined in national legislation for construction and maintenance

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activities; (b) equal pay for equal work of equal value regardless of sex, ethnicity, or caste; and (c) elimination of forced labor; and with (ii) the requirement to disseminate information on sexually transmitted diseases, including HIV/AIDS, to employees and local communities surrounding the project sites. B. Social Safeguards

65. Screening and Categorization. The project is classified as category B for involuntary resettlement and category C for indigenous peoples as per ADB SPS (2009). KWASA has prepared a draft resettlement plan in line with the SPS. It is assessed that the project will cause involuntary land acquisition and resettlement impacts including (i) permanent loss of private land for titleholders, (ii) physical displacement due to loss of structures linked with involuntary land acquisition, (iii) loss of trees and crops, (iv) permanent loss of income for non-titleholders using private land, and (v) temporary loss of income for non-titleholders using government land. The District Population Handbook of Khulna, Census 2011 by Bangladesh Bureau of Statistics does not report any presence of indigenous population in the Khulna city area. No population or population group in the project impact zone qualifies as indigenous peoples as per SPS. 66. The draft resettlement plan for the project assesses involuntary resettlement impacts that are deemed not significant. The construction of proposed 2 STPs and 8 sewage pumping stations will require 36.03 acres (3,602.62 decimals) of land. Process of land acquisition has already been initiated by KWASA for 10 land plots. Out of these 10 land plots, 8 plots belong to private owners measuring 35.53 acres (3,553.2 decimals) out of which 34 acres (3,400 decimals) land will be required for construction of two STPs. Apart from these, 2 plots belonging to the government measuring about 0.5 acres (49.42 decimals) will be utilized for construction of 2 sewage pumping stations. There are no additional land requirements beyond the proposed lands as routing of sewerage lines and construction of manhole pumping stations has been proposed through public right-of-way. The project will cause physical displacement of 24 affected families (108 persons) due to loss of residential structures on land proposed for acquisition. Two commercial structures will also be affected due to land acquisition, impacting two business owners (9 family members). In addition, three sharecroppers on the affected private land and three employees of the affected businesses (with 27 family members) face permanent loss of livelihood. Temporary economic impacts based on transect walks and survey of sample stretches are assessed in the draft resettlement plan and will be confirmed in the updated resettlement plan. The draft resettlement plan will form part of the bid and contract documents. The draft resettlement plan will be updated package-wise, based on detailed measurement surveys, census and socioeconomic surveys of permanently affected persons, as well as surveys of temporarily affected businesses on government owned sites and along pipe alignments, and submitted to ADB for review and disclosure prior to contract award. KWASA, with the support of project consultants, will implement the resettlement plan and will prepare quarterly progress report checklists on social safeguards and detailed semiannual social safeguard monitoring reports for ADB’s review and disclosure. 67. Resettlement Plans and Due Diligence Reports. The project has been divided into three packages; a draft resettlement plan has been prepared for the project (covering all the three packages) in accordance with ADB SPS and government laws. Upon ADB’s clearance, KWASA and ADB will disclose the resettlement plan on their respective websites. PMU will ensure that the plan is implemented; and ensure that physically or economically affected persons are compensated prior to displacement in components ready for construction. 68. The draft resettlement plan will be updated/revised per contract package, based on detailed design, detailed measurement survey and census survey and will be submitted to ADB for review and disclosure, prior to contract awards. PMU shall provide justification should the findings of the updated/revised resettlement plan indicate lesser impact than the draft

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resettlement plan. PMU will submit to ADB the draft resettlement plan prior to invitation of bids and will ensure the social safeguards document is included in the bid and contract documents. Any provisions such as impact avoidance and mitigation measures to be included in the EMP will be conveyed to the environmental safeguards team. In the event of unanticipated impact due to site/design change during project implementation or in the event of any non-compliance, resettlement plan will be updated to include corrective actions, associated costs and schedule. A copy of the summary resettlement plan including entitlement matrix will be disclosed to affected persons. The summary of the resettlement plan will be translated to Bengali and will be disclosed and discussed with affected persons and beneficiaries, including those who are unable to read, in Bangla, their local dialect. 69. Safeguards Institutional Arrangement. Figure 6 depicts the institutional arrangement for social safeguards.

Figure 6: Social Safeguards Implementation Arrangement

ADB = Asian Development Bank, IADC = institutional development, awareness creation and design consultants, KWASA = Khulna Water Supply and Sewerage Authority, PMSC = project management and supervision consultant, PMU = project management unit, SIU = Social Implementation Unit

Table 17: Institutional Roles and Responsibilities Activity Responsible Agency A. Project Initiation Stage and Institutional Setup

• Formation of PMU Local Government Division • Selection & finalization of project sites PMU • Disclosure of proposed land acquisition and project details by

issuing Public Notice Deputy Commissioner / PMU

• Meetings at community/household level with affected persons PMU • Capacity Building training PMU/ PMSC/IADC

B. Resettlement Plan Preparation and Updating Stage • Census of APs and socioeconomic survey PMU / PMSC • Survey on unit prices for computing replacement costs Joint Verification Committee/

PMU • Screening of vulnerable affected persons PMSC • Calculation of compensation and entitlements Deputy Commissioner/Property

Valuation Advisory Committee • Prepare/update of project resettlement plan PMU/ PMSC

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• Consultations on resettlement plan and entitlements with the affected persons PMU/ PMSC

• Incorporate comments and suggestions to resettlement plan PMU/ PMSC • Finalize resettlement plan and submit to ADB. All draft

resettlement plan must be submitted to ADB for clearance prior to award of contracts.

PMU/ ADB

• ADB website disclosure ADB C. Resettlement Plan Implementation Stage

• Issuance of identification Cards to affected persons PMU • Detailed Schedule for compensation payment PMU/ PMSC • Distribution of Relocation Notices to affected persons PMU • Award of Cheques for Land Compensation Deputy Commissioner • Award of Cheques for other Compensation and Assistance/

Rehabilitation PMU

• Confirm with ADB in writing when payment to affected persons has been completed. Permission to contractor to begin works once compensation to affected persons is confirmed.

PMU

• Income Restoration Program and Training PMU/ PMSC/IADC • Demolishing/ Relocation of Affected Structures/Assets Deputy Commissioner /PMU • Grievances Redressal PMU/GRC • Internal monitoring PMU/ PMSC/IADC • If resettlement plan implementation found satisfactory, Notice

to proceed for Civil works is issued PMU

ADB = Asian Development Bank, IADC = institutional development, awareness creation and design consultants, GRC = grievance redress committee, PMSC = project management and supervision consultant, PMU = project management unit. 70. Project Management Unit. PMU will establish a Social Implementation Unit (SIU) consisting of Social Safeguard Officer (SSO) and two support staff at the PMU level, who will oversee and monitor resettlement plan implementation process in close liaison with the Project Director (PD) and Deputy Project Director. Social Safeguards Specialists will be engaged by KWASA under PMSC and IADC, who along with Social Safeguard Officer (at PMU level) will carry out the range of activities including resettlement plan implementation and monitoring. In case of any negotiated settlement for land (if applicable) or voluntary donation, PMU will ensure certification by a third party. 71. SIU of PMU will have overall responsibility of project implementation in compliance with SPS 2009, country legislations, and the project-specific Entitlement Matrix, policies relating to GRM as agreed between KWASA and ADB. SIU will undertake all safeguard activities – studies, verification, monitoring, reporting, consultation, disclosure, corrective actions, if any, and including review and approval of all documents prior to disclosure and submission to ADB. 72. The roles and responsibilities of the Project Director at PMU related to involuntary resettlement are as follows:

(i) Call and chair regular coordination meetings among PMU, PMSC, IADC Contractors;

(ii) Coordinate the implementation of resettlement and rehabilitation activities with the support of social safeguards officer at PMU;

(iii) Ensure conducting resettlement training program for KWASA staff including field level employees, consultants, contractors and partner agencies/entities for capacity building;

(iv) Monitor monthly progress of resettlement plan implementation;

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(v) Facilitate obtaining of statutory clearances and obtaining no objection certificates from government agencies and/or other entities, if required;

(vi) Guide staff of KWASA, PMSC, IADC and contractor on policy related issues during implementation;

(vii) Liaise with district administration for land acquisition, transfers, ensuring land availability (as and when required);

(viii) Synchronize compensation payment activity and handover of encumbrance-free land to the contractor; and

(ix) Ensure timely release of funds for land acquisition and resettlement and rehabilitation activities.

73. Key tasks and responsibilities of the social safeguard officer (SSO) at PMU are as follows:

(i) Coordinate necessary arrangement to ensure Resettlement Plan finalization and implementation activities, e.g. appointing GRC and Property Valuation Advisory Committee members, facilitating detailed measurement, census and socioeconomic surveys, etc.;

(ii) Submit updated Resettlement Plan to ADB for review, clearance, and disclosure before Resettlement Plan implementation;

(iii) Ensure meaningful consultations and stakeholder participations during Resettlement Plan updating and its implementation;

(iv) Perform the overall responsibility of planning, management, monitoring, and implementation of the resettlement plan;

(v) Ensure implementation of all activities related to livelihood restoration and relocation;

(vi) Ensure availability of necessary budget for complying with all necessary activities;

(vii) Synchronize compensation payment activity and handover of encumbrance-free land to the contractor;

(viii) Develop socio-economic census survey, inventory of loss tools along with the Social Safeguard Specialists of PMSC/IADC;

(ix) Develop training modules on social safeguards and internal monitoring systems with PMSC/IADC;

(x) Monitor the effectiveness of entitlement packages including livelihood restoration and relocation, and payment modality;

(xi) Prepare sections of monthly and quarterly progress reports pertaining to social safeguards, and detailed semi-annual social safeguards monitoring reports (SSMR); prepare corrective action plans in the event of any non-compliance observed during monitoring;

(xii) Oversee day-to-day implementation of resettlement plans by contractors, including compliance with all government rules and regulations; take necessary action for obtaining rights of way clearances;

(xiii) Liaise with district administration for land acquisition, transfers, ensuring land availability;

(xiv) Provide oversight on social safeguard management aspects of packages and facilitate and follow up to ensure that delays in land acquisition are addressed;

(xv) Ensure timely disclosure of entitlements to affected persons at locations and form that is accessible to the public and easily understood by them;

(xvi) Ensure effective implementation of GRM at all levels and duly communicate the details of GRM to the affected persons and other stakeholders; and

(xvii) Ensure encumbrance free site handover to Contractors, and that all compensation payments to the affected persons are completed before handing over of site.

39

74. Two support staff will be hired by PMU to assist the SSO in resettlement plan implementation. The support staff will be based in Khulna city. PMU will also utilize the community mobilizers hired under IADC for effective implementation of resettlement plan, including support to affected persons to receive cash compensation under law, assist the SSO in consultations and disclosure of entitlements and GRM to affected persons and monitoring of compensation disbursement, relocation activities, livelihood restoration as well as grievance redress mechanism. Post resettlement plan implementation, they will assist in conduct of connection campaigns in different localities including collection of connection applications and supporting documents and ensuring 100% coverage of poor and vulnerable households under project benefits. Minimum qualification for the post should bachelor’s degree in sociology, social work or similar filed and at least 5 years of experience in resettlement and rehabilitation work in any ADB-funded or similar lender supported Government of Bangladesh (GOB) projects. The broad terms of reference for the post of Community Mobilizers are mentioned below, and are not limited to: General Tasks:

(i) Assist in organizing workshops, focus group discussions and community consultation during design and implementation phase for safeguard issues;

(ii) Carry out all relevant activities pertinent to implementation of resettlement plan like identification of affected families through census and socio-economic survey;

(iii) Prepare and distribute identity cards among the project affected families, resettlement plan disclosure meeting with the affected persons;

(iv) Disburse compensation among the identified affected persons as per resettlement plan;

(v) Prepare public notices, disclosing the proposed package details, proposed entitlements if any and mitigation measures if required;

(vi) Organize meetings as stated in the resettlement plan at community and household levels with affected persons and draw up minutes of such meetings;

(vii) Disclose the GRM of the project to the affected persons and also facilitate the entire process to register, mitigate/redress grievances raised due to construction work;

(viii) Generate awareness about livelihood restoration activities among the affected persons;

(ix) Organize periodical meetings with all SSO, PMSC/IADC, reviewing progress and decide upon further plan of action;

(x) Assist to ensure payments of compensation to affected persons in section ready for construction prior to civil works;

(xi) Assist in preparing social monitoring reports, corrective action plans and semi-annual reports; and

(xii) Report and document field level activities and any other work as and when assigned by the project authority.

Sewerage House Connection: (i) Supervise household surveys (for sewerage connection) in the project

coverage area and prepare list of eligible households with necessary details as deemed fit by the authority;

(ii) Generate awareness among the customers regarding the project objectives, benefits of house connection, procedure of getting house connections, project grievance redress mechanism etc. through ward / locality level connection campaigns;

(iii) Conduct public consultation program for information dissemination; (iv) Work closely with PMU, PMSC and/or IADC to facilitate the house connection

process and redressal of public grievances and also to identify issues related to sewerage house connection;

40

(v) Identify vulnerable households (women headed, elderly headed, disabled, below poverty line, etc.) and assist them to appeal to the competent authority for assistance to ensure 100% coverage of poor and vulnerable households under project benefits;

(vi) Support SSO with data and information for monthly, quarterly, SMPRs; (vii) Documentation and preparation of case studies, consultation reports etc.; and (viii) Any other tasks as assigned by the authority.

75. Social Safeguards Specialists of Project Consultants (PMSC and/or IADC). The PMSC and/or IADC will assist SIU of PMU to achieve compliance with the involuntary resettlement and indigenous peoples’ safeguards requirements in accordance with ADB SPS 2009 and government policies, as per the agreed Entitlement Matrix for the Project, and ensuring that the contractors design, construct and operate the project facilities in compliance with the same. Detailed terms of reference of the PMSC and IADC social safeguards teams are in Appendix 6. Summary of key tasks of the PMSC/IADC given below, is not limited to the following:

(i) Establish a system to monitor social safeguards outcomes of the project; including the functioning of GRM, and prepare indicators for monitoring important parameters of safeguards;

(ii) Take proactive actions to anticipate the social safeguards aspects of the project to avoid delays in implementation;

(iii) Support PMU to prepare/update resettlement plan and quarterly and semi-annual social safeguard monitoring reports (SSMR) that will be appraised during project implementation;

(iv) Support PMU in ensuring that the social safeguard activities are carried out in accordance with the agreed plans and frameworks;

(v) Ensure that the relevant measures specified in the resettlement plan will be incorporated in bidding documents and approved by ADB prior to issuance of invitation for bidding and monitor their compliance on behalf of PMU;

(vi) Ensure monitoring of social safeguards plans and address unanticipated impacts, if any; and

(vii) Provide training programs to PMU/PMSC/IADC staff and contractors involved in the project implementation for strengthening their capacity in managing and monitoring social safeguards.

76. Project Contractor. The Contractor will have a dedicated Social Supervisor, who will hold a bachelor’s degree in social science and would have at least 5 years of experience in resettlement planning and implementation, as well as gender action plan implementation, preferably in multi-lateral aided projects. The tasks of the Contractor’s Social Supervisor will be to:

(i) Work in close coordination with the PMSC/IADC, design engineers and social safeguards personnel to finalize detailed design keeping the safeguard principles adopted for the project in view;

(ii) Ensure that all design-related measures (e.g. special considerations for the vulnerable related to facility locations or design, mitigation measures for affected persons etc.) are integrated into project designs before approval;

(iii) Conduct joint walk-through with PMU, design engineers and social safeguards personnel from PMSC/IADC at sites/sections ready for implementation; identify the need for detailed measurement survey (DMS), and conduct DMS to arrive at the final inventory of loss;

(iv) Ensure strict adherence to ADB and government policy on social safeguards and the agreed entitlement matrix during implementation;

(v) Review the IEE and Resettlement Plan including the entitlement matrix and Rapid Environmental Assessment checklist, category and the EMP, and

41

conduct site visits to understand the environmental and social sensitivity of the project sites;

(vi) Assist with grievance redress and ensure recording, reporting and follow-up for resolution of all grievances received;

(vii) Understand the regulatory compliance requirements related to labor welfare, social, safety, environment etc.,

(viii) Assist PMU in disclosing relevant information on safeguards (eligibility, entitlements, compensation, cut-off date, processes, timelines, GRM etc.) to beneficiaries and affected persons including the vulnerable; and

(ix) Assist PMU to facilitate the house connection process and redressal of public grievances and also to identify issues related to sewerage house connection.

77. The above arrangement will ensure that:

(i) Social safeguard issues are addressed; (ii) Resettlement principles are followed in all resettlement issues; (iii) Approved resettlement plan is implemented; (iv) Implementation of resettlement plan is monitored; (v) Periodic monitoring reports are prepared in time and submitted to PD, PMU for

onward transmission to ADB upon approval; and (vi) Database on resettlement monitoring and due diligence is updated and

maintained. 78. Independent Monitor. 32 ADB will provide a social safeguards specialist cum independent monitoring consultant, whose main task will be to support SPS compliance monitoring and reporting. As an independent monitor, the specialist (consultant) will be required to confirm/verify the information presented in the SSMR based on field level verification studies and consultations, compliance with loan covenants on social safeguards, assess the resettlement process and timing, adequacy of institutional arrangements for resettlement planning and implementation, affected persons’ status before and after displacement, and verify compliance with social safeguards related loan covenants. The specialist will also be responsible to (i) assess whether resettlement objectives, particularly restoration or enhancement of livelihoods and living standards of the displaced persons are being met and the compensation and measures proposed for people facing economic impacts are adequate for livelihood restoration; (ii) suggest any corrective actions as required; and (iii) review the project impacts on vulnerable affected persons and assess the effectiveness of the mitigative actions taken for vulnerable affected persons. C. Safeguards Capacity Development

79. The PMSC/IADC safeguards specialists (environmental and social) together with ADB’s social safeguards cum independent monitoring consultant will be responsible for training the (i) PMU safeguards officers (environmental and social); and (ii) KWASA engineers and social development officers. Training modules will need to cover safeguards awareness and management in accordance with both ADB and government requirements as specified below:

(i) Environmental Safeguards

(a) sensitization on ADB’s policies and guidelines on environment; (b) introduction to environment and environmental considerations in water

supply and wastewater projects; (c) review of IEEs and integration into the project detailed design;

32 Budget for the social safeguards specialist cum independent monitor will be provided by ADB under a TRTA

(9781-REG). The independent monitoring consultant will have intermittent inputs spread over the period 2021-2024.

42

(d) improved coordination within KWASA organization; and (e) monitoring and reporting system. The contractors will be required to

conduct environmental awareness and orientation of workers prior to deployment to work sites.

(ii) Social Safeguards

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

(b) introduction to social safeguards assessment and document requirements;

(c) consultation and participations requirements; (d) project GRM and ADB’s Accountability Mechanism; and (e) monitoring and reporting system.

80. Prohibited investment activities. Pursuant to ADB SPS (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of SPS (2009).

VIII. GENDER AND SOCIAL DIMENSIONS

81. The project is categorized as effective gender mainstreaming (EGM) and the project components are designed to reduce gender disparities in accessing sewerage system and its operation and maintenance. Opportunities for women’s active involvement and benefits in all project activities have been maximized. The details of the gender aspects of the project are described in the gender action plan (GAP), which includes component specific action areas and a range of evidence-based gender targets and indicators. The project will ensure improved sanitation access to 100% population including the poor and poor women-headed households in the project area. GAP will contribute to enhance women’s decision-making capacity and reduce gender inequality by ensuring women’s effective participation through 30% representation in consultation on project construction work, sewerage connection & facilities, planning, implementation, monitoring and awareness raising program. All bidding documents will incorporate provisions for core labor standards (occupational health and safety, water supply, separate sanitation facilities, segregated shelter and facilities in the project sites) and equal pay. PMU will ensure 20% women employment opportunities for unskilled and semi-skilled laborers in construction work (civil work) with equal pay with men for work of equal value. Poor and vulnerable households will be given preference for getting access to sewerage connection free of cost. At least 20% women staff will be recruited in project entities. Awareness campaigns on water, sanitation, and hygiene (WASH) and the sewage management service conducted in the project area will specifically target participation of women and girls. Women will participate in training programs supported by the project. Timely and effective implementation of the GAP will be monitored by the PMU, with two social and gender development consultants under PMSC and IADC, responsible for GAP implementation and periodical reporting to be included in the quarterly progress report (QPR) to be submitted to ADB. Resources, including consultant services, are allocated for GAP implementation and monitoring.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework

82. The design and monitoring framework (DMF) of the project is in Appendix 1.

43

B. Monitoring

83. Project Performance Monitoring. Within 6 months of loan effectiveness, PMU will establish a project performance management system (PPMS) using the targets, indicators, assumptions, and risks in DMF. The PPMS will take into account the important monitoring parameters in addition to those included in the DMF. The baseline data corresponding to indicators and targets set out in DMF and PPMS will be gathered during detailed design stage, within 6 months of commencement of design work, disaggregated by income levels and sex. Disaggregated baseline data for output and outcome indicators gathered will be updated and reported quarterly through the quarterly progress reports and after each ADB review mission. These quarterly reports will provide information necessary to update ADB's project performance reporting system. Results of a comprehensive completion survey will be included in the project completion report.33

84. Compliance Monitoring. PMU will monitor the compliance of loan covenants—policy, legal, financial, economic, environmental, social safeguards and others and ensure the compliance. All non-compliance issues, if any, will be updated in quarterly progress reports together with remedial actions. The inter-ministerial project steering committee and ADB review missions will also monitor the status of compliance with loan covenants and raise the noncompliance issues with the government and agrees on remedial actions. 85. Safeguards monitoring. Status of implementation of the environmental safeguard documents (IEE, EMP), and social safeguards document (resettlement plan) will be discussed at each ADB review mission apart from being integrated into (QPRs). PMU will use checklists for safeguards reporting in QPRs. QPR Checklist for environmental safeguards is in Appendix 8 and QPR Checklist for social safeguards in in Appendix 9. PMU will submit separate semi-annual environmental monitoring reports (SEMRs) and social safeguards monitoring reports (SSMR) in the standard templates as advised by ADB which will be disclosed on ADB’s website. The SEMRs/SSMRs will be prepared by the PMU environment and social safeguards officers, with inputs from the PMSC/IADC consultants. The IADC field level support staff (community mobilizers) will provide field level monitoring and other data on monthly basis. PMSC/IADC will collate all progress monitoring related information and submit to PMU/central PMSC for preparation of QPRs and SEMRs/SSMRs. The status of safeguards implementation, issues, and corrective actions are to be clearly reported to ADB in these reports. The monitoring reports (SEMRs / SSMRs) shall be submitted to ADB within one month after the reporting period and disclosed on ADB and project websites. The outline of the SEMR is in Appendix 10 and the outline of the SSMR is in Appendix 11. ADB will carry out annual environmental and/or social (including gender) reviews of the project. ADB will also provide the services of a social safeguards specialist cum independent monitor to ensure stringent monitoring as well as to support and advise the PMU during project implementation. The independent monitor will be required to submit field evidence-based semi-annual reports to PMU and ADB, which will include recommendations to ensure SPS compliance. 86. Gender and social dimensions monitoring. Timely and effective implementation of GAP will be monitored by PMU, with two social and gender development consultants under PMSC and ICDC, responsible for GAP implementation and periodical reporting to be included in QPRs to be submitted to ADB. Resources, including consultant services, are allocated for GAP implementation and monitoring. Core labor standards, including equal wage for women and men for work of equal value, will be closely monitored. PMU will ensure GAP issues are

33 ADB's project performance reporting system is available at http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool.

44

reflected in monitoring and evaluation formats and reports.34 C. Evaluation

87. KWASA and ADB will jointly review the project at least twice a year. This includes (i) the performance of PMU, consultants, and contractors; (ii) physical progress of the project, effectiveness of safeguards, and implementation of GAP and core labor standards; (iii) compliance with loan covenants; and (iv) assessment of operational sustainability in technical and financial terms. In addition to the regular loan reviews, the government and ADB will undertake a comprehensive midterm review in the third year of project implementation to identify problems and constraints encountered and suggest measures to address them. Specific items to be reviewed will include (i) appropriateness of scope, design, contract packaging, implementation arrangements, and schedule of activities; (ii) review of institutional, administrative, organizational, technical, and financial aspects of the project based on the assumptions and risks included in the DMF; (iii) assessment of implementation progress against project indicators; (iv) governance improvement and capacity development of PMU for ensuring sustainability; (v) compliance with safeguard measures; (vi) extent to which the GAP is being implemented; (vii) lessons learned, good practices, and corrective actions; and (viii) changes recommended. Within 6 months of physical completion of the project, KWASA will submit a project completion report to ADB.35

D. Reporting

88. KWASA will provide ADB with (i) QPRs (outline in Appendix 3) in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

89. PMU will prepare a stakeholder communication strategy and submit to ADB for review by the end of the first quarter after loan effectiveness. The strategy will follow ADB’s Access to Information Policy 2018. PMU will ensure that all communication is in language understood by the specific audience. The stakeholder communication strategy will be based on a stakeholder analysis and will incorporate the following components:

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

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

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

34 ADB's Handbook on Social Analysis: A Working Document, is available at:

http://www.adb.org/Documents/Handbooks/social-analysis/default.asp, Staff Guide to Consultation and Participation: http://www.adb.org/participation/toolkit-staff-guide.asp, and, CSO Sourcebook: A Staff Guide to Cooperation with Civil Society Organizations: http://www.adb.org/Documents/Books/CSO-Staff-Guide/default.asp

35 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public- Sector-Landscape.rar

45

(iv) Behaviour change communication plan including WASH, to generate awareness on sanitation, health and hygiene, as well as awareness related to COVID-19 pandemic and other infectious diseases;

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

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

X. ANTICORRUPTION POLICY

90. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.36 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.37 91. To support these efforts, relevant provisions are included in the loan agreements and the bidding documents for the project. All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and implementing agencies and all project contractors, suppliers, consultants, and other service providers. The government, KWASA, and PMU are advised of ADB’s Anticorruption Policy.

XI. ACCOUNTABILITY MECHANISM

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

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

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

36 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 37 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp 38 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

46 Appendix 1

DESIGN AND MONITORING FRAMEWORK Impact the Project is Aligned with Basic needs of the people ensured in a sustainable manner without damaging the environment (Perspective Plan of Bangladesh 2010–2021: Making Vision 2021 a Reality)a

Results Chain Performance Indicators with Targets and

Baselines

Data Sources and Reporting Mechanisms Risks

Outcome By 2028: Project areas in Khulna city gained access to sustainable sewerage services

a. Service coverage of sewage collection and treatment through the centralized sewerage system reached 50% of households (about 120,000 households) in the urban area of Khulna city (2019 baseline: Not applicable) (OPs 3.2, 4.1) b. Service coverage of fecal sludge treatment in fecal sludge treatment plant increased to 15% of households (about 30,000 households) in the urban area of Khulna city (2019 baseline: 2% or about 4,000 households) (OPs 3.2, 4.1) c. 100% of KWASA’s O&M costs financed by user charges (2019 baseline: 0) (OP 4.2)

a.–c. KWASA annual reports and customers database

Lower-than-projected financial resources limit KCC’s capacity to collect and transport fecal sludge, resulting in lower operational efficiency of fecal sludge treatment plant.

Outputs By 2027: 1. Climate-resilient centralized and organized sewerage system for Khulna city established

1a. Two STPs with combined capacity of 80,000 m3/day, partly run by 1.3-megawatt solar power system, with climate-resilientb and gender-responsive featuresc and compliant with national effluent standards commissioned (2019 baseline: 0) (OPs 3.2.5, 4.1.2, 6.2.1)

1b. 269-kilometer sewer network with climate-resilient featuresd constructed and connected to 27,000 properties,e including free sewer connections to 100% of poor and vulnerable householdsf (2019 baseline: 0) (OPs 4.1, 3.2.5, 4.1.2)

1c. Five sewage pumping stations and three manhole pumping stations commissioned (2019 baseline: 0) (OPs 3.2.5, 4.1.2) 1d. Fecal sludge treatment plant with 160 m3/day capacity commissioned (2019 baseline: 0) (OPs 3.2.5, 4.1.2)

1a.–d. Quarterly project progress reports, and KWASA project completion report

Extreme weather conditions could delay completion of civil works.

2. Institutional capacity of KWASA in sewerage service delivery, and community awareness on safe sanitation improved

By 2027: 2a. Training and skills development programs on sewerage system and project management for KWASA developed (2019 baseline: 0) 2b. Facility-specific O&M manual with gender-responsive featuresg developed by contractors and adopted by KWASA (2019 baseline: Not applicable)

2a.–d, f.–g. Quarterly project progress reports, KWASA project completion report, and

Appendix 1 47

Results Chain Performance Indicators with Targets and

Baselines

Data Sources and Reporting Mechanisms Risks

2c. SCADA system for sewerage system commissioned (2019 baseline: Not applicable) (OP 4.1.2) 2d. Sanitation plan with sex-disaggregated targets completed and submitted to KWASA and KCC for adoption (2019 baseline: Not applicable) (OP 4.3.2) 2e. New sewerage tariff formulated and adopted by KWASA Board (2019 baseline: Not applicable) (OPs 4.2, 4.2.2) 2f. At least 2 project proposals using PPP modality (1 for water supply and 1 for sewerage services for Khulna) prepared and submitted to KWASA (2019 baseline: 0) 2g. Detailed engineering designs and bidding documents for future investment projects completed and submitted to KWASA (2019 baseline: 0) (OP 3.2.5) 2h. At least 70% KWASA staff (including all female staff) reported knowledge of O&M of sewerage system and safeguards implementation, including occupational health and safety issues (2019 baseline:0) (OP 2.3.2) 2i. At least 70% of residents (including at least 30% women) in 7 sewerage districts reported knowledge of the benefits of safe sanitation services (2019 baseline:0) (OP 2.3.2)

copy of plans/manual developed 2e. Notification of approved tariff policy 2h.–i. Pre- and post-training assessment (through data collected from questionnaire)

Activities with Milestones 1. Climate-resilient centralized and organized sewerage system for Khulna city established 1.1 Preparation of detailed project reports and safeguard documents (ongoing until December 2020) 1.2 Procurement process for civil works contracts and contract awards (April 2020–September 2021) 1.3 Construction of STPs and sewer networks (April 2021–December 2024) 1.4 O&M of STPs (January 2025–December 2027) 1.5 Monitoring of service delivery parameters (January 2025–December 2027) 2. Institutional capacity of KWASA in sewerage service delivery, and community awareness on

safe sanitation improved 2.1 Implementation of project management capacity development programs for KWASA (April 2021–

March 2023) 2.2 Development of the training plan on public health, environmental management, sanitation, and

sewage management for KWASA (July 2021–June 2022) 2.3 Conducting training programs for KWASA staff, including all female staff (July 2022–June 2023) 2.4 Development of facility-specific O&M manual for sewerage system (July 2023–December 2024) 2.5 Development of new sewerage tariff (July 2023–June 2024) 2.6 Development and operation of SCADA system for sewerage system (January 2024–December

2027)

48 Appendix 1

Activities with Milestones 2.7 Development of sustainable and inclusive sanitation plan (January 2024–December 2024) 2.8 Conducting sanitation and hygiene-awareness campaign (January 2025–December 2027) 2.9 Preparation of detailed designs and bid documents for ensuing projects (January 2025–June 2026) 2.10 Development of PPP modality for water supply and sewerage services in Khulna (July 2025–June

2026) Project Management Activities Project management unit established and strengthened (Q4 2020) Project steering committee and formed (Q4 2020) Project management and supervision consultants mobilized (Q1 20201) Institutional development, awareness-creation, and design consultants mobilized (Q3 2023) Project progress report prepared and submitted (Q1 2021 and onwards) Inputs Asian Development Bank Ordinary capital resources: $50 million loan Concessional ordinary capital resources: $110 million loan Government: $115 million Assumptions for Partner Financing Not applicable KCC = Khulna City Corporation, KWASA = Khulna Water Supply and Sewerage Authority, m3 = cubic meter, O&M = operation and maintenance, OP = operational priority, PPP = public-private partnership, SCADA = supervisory control and data acquisition, STP = sewage treatment plant. a Government of Bangladesh, Ministry of Planning. 2012. Perspective Plan of Bangladesh 2010–2021: Making Vision

2021 a Reality. Dhaka. b STPs will absorb fluctuation of pollutant loading and generate good quality sludge that can be used as manure.

Operating STPs using solar-powered generator will reduce dependence on fossil-fuel-generated electricity. c Gender-responsive features include provisions for separate toilets and designated rest areas for women workers. d Trenchless installation of gravity sewer pipe will address climate mitigation by reducing vehicular traffic disruption. e Each property in the project area has an average of five to six households, most of which use septic tanks located

on ground floor of each property. Existing internal connections at each property connect households with septic tanks. The sewer network developed under the project will be connected to existing internal connections.

f Sewer network will be connected to all poor and vulnerable households, if and where feasible. g Gender-responsive features include provisions for disabled persons, pregnant women, and transgender in public and

community toilets, provision of menstrual hygiene management, and separate unit and entry for men and women. Contribution to Strategy 2030 Operational Priorities OP 2.3.2 Measures on gender equality supported in implementation. Target: 2 (trainings for KWASA female staff, and

for women in project area) OP 3.2 People with strengthened climate and disaster resilience (number). Target: 150,000 households (equivalent

to 0.88 million people) OP 3.2.5 New and existing infrastructure assets made climate- and disaster-resilient (number). Target: 1 sewerage

system OP 4.1 People benefitting from improved services in urban areas (number). Target: 150,000 households (equivalent

to 0.88 million people) OP 4.1.2 Urban infrastructure assets established or improved (number). Target: 1 sewerage system OP 4.2 Entities with improved urban planning and financial sustainability (number). Target: 1 (KWASA) OP 4.2.2 Measures to improve financial sustainability supported in implementation (number). Target: 1 sewerage

system OP 4.3.2 Urban climate and disaster resilience capacity development initiatives implemented (number). Target:

Trainings targeting 70% of KWASA OP 6.2.1 Service delivery standards adopted and/or supported in implementation by government and/or private entities

(number). Target: Compliance of 2 STPs with national effluent standards In addition to the OP indicators tagged in the DMF, this operation will contribute results for: OP 1.2 Jobs generated (number). Target: TBD (jobs generated during construction phase to be determined during

mobilization) Source: Asian Development Bank.

Appendix 2 49

INDICATIVE PROJECT FINANCIAL STATEMENTS

1. Statement of Receipts and Payments for the year ended DD/MM/YYYY

Notes Current year Previous year Cumulative (from inception to the end of

current year)

Cash receipts

Cash Receipts/Payments controlled by the

entity Direct/third party payments

Cash Receipts/Payments controlled by the

entity Direct/ third party payments

Cash Receipts/Payments controlled by the

entity Direct/ third party payments

ADB loan (loan number) 3.1

GoB 3.2

etc..

Total receipts

Payments 4 Expenditure category 1 4.1 Expenditure category 2 4.2 Expenditure category 3 4.3 Expenditure category 4 etc..

Total payments

Cash balance at the beginning of the year 6 .1

Cash balance at the end of the year 6.2

Project Director: [Signature] Accounts officer or equivalent: [signature]

50 Appendix 2

2. Statement of Budget vs. Actual for the year ended DD/MM/YYYY

Notes** For the current year ended 20xx For the Prior year ended 20xx Cumulative (from inception to the end of current year)

Expenditure Categories* Budgeted Actual Variance Budgeted Actual Variance Project Budgeted as per the PAM Actual Variance

Expenditure category 1 5.1

Expenditure category 2 5.2

Expenditure category 3 5.3

Expenditure category 4

Etc.

Total Payments

Total Project Cost

*expenditure categories as outlined in the PAM **any significant variances are to be explained in the notes Project Director: [Signature] Accounts officer or equivalent: [signature

Appendix 2 51

3. Statement of Disbursement By Financing Source for the year ended DD/MM/YYYY

Statement of Disbursement Note Current Year Prior Year Cumulative Project to Date

7.1 ADB loan - Funds claimed during the year

Reimbursement

Imprest Fund Direct Payment Subtotal

Expenditure incurred not yet claimed 7.2

Subtotal

*list of WAs/claims submitted to be disclosed in the notes Project Director: [Signature] Accounts officer or equivalent: [signature

52 Appendix 2

4. Statement of Imprest/Advance account for the year/period ended DD/MM/YYYY (for each

advance account separately) Account details: XXXX

Notes Current Year Prior Year Balance brought forward from previous period

Add: Advance1 Replenishment received during the year/period1

Interest Earned Subtotal (A) Deduct: Payments made during the year/period

Replenishment /Liquidation1 Expenditure yet to be claimed Amount refunded during the year/period

Closing Balance (B) As per bank statement (copy attached)

Project Director: [Signature] Accounts officer or equivalent: [signature

Appendix 2 53

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED [YEAR END DATE]

1.Project Information 1.1 Key highlights: Project title Funded by: Management: Executing Agency Implementing agencies Start Date: Closing date: Project Duration: Funding Sources/modality/amount

1.2 Impact and Outcome

2. Summary of Significant Accounting policies. 2.1 Basis of preparation 2.2. Cash Basis of accounting 2.3. Recognition of Receipts and payments 2.4. Third party payments 2.5. Presentation currency 2.6 Foreign Currency Translation 2.7. Changes in Accounting policies 2.8 Reporting period 2.9 Comparatives

3. Funds received 3.1 Funds received from ADB /List of WAs by financing source

3.2 provide a breakdown of Funds received from the Government 3.3. funds received from Other sources etc..

4. Payments List of Payments from the advance account/subadvance account with a breakdown by category List of third-party payments/direct payments with a breakdown by category.

5. Variances List and explain any significant variances between budget and actual expenditures. 6. Opening and closing balances List details of the opening balances List details of the closing balances

54 Appendix 2

7. Disbursements/Withdrawal Applications 7.1 Include detailed list of WAs claimed from ADB with the following breakdown : i) funding source (ADB loan), ii)) WA number, iii) time period in which expenditures were incurred iv) the amount claimed and currency, v) date submitted, vi) disbursement method, vii) the amount disbursed by ADB, vii) used exchange rate and viii) explanation of any difference between the amount claimed from ADB and the amount disbursed by ADB. 7.2 Provide a breakdown of expenditures incurred but not yet claimed from ADB including the eligible portion for ADB financing.

8. Special notes for the FY Disclose a break down Interest Expenses/ Financial Charges incurred as part of the project for the current year, past year and cumulatively.

Appendix 3 55

OUTLINE FOR QUATERLY PROGRESS REPORT

General Instructions The quarterly progress reports (QPRs) should follow the format outlined below and are to be submitted to ADB within 45 days after each quarter. In case of delays or incomplete information, ADB will submit a reminder to the executing agency/implementing agency. Repeated delays or incomplete information may have a negative impact on the project performance ratings and may be discussed during review missions and TPRMs. Section A. Introduction and Basic Data i. ADB loan number, project title, borrower, executing agency, implementing agency(ies) ii. Total estimated project cost and financing plan; iii. Status of project financing including availability of counterpart funds; iv. Dates of approval, signing, and effectiveness of ADB loans; v. Original and revised (if applicable) ADB loan closing date and elapsed loan period based

on original and revised (if applicable) loan closing dates; and vi. Date of last ADB review mission.

Section B. Utilization of Funds (ADB Loan, and Counterpart Funds) i. Cumulative contract awards financed by the ADB loan, and counterpart funds

(commitment of funds to date), and comparison with time-bound projections (targets targets – for ADB financing compare the actual contract awards with the contract award curve included in the PAM). Include an analysis of significant variances between planned and actual contract awards;

ii. Cumulative disbursements from the ADB loan, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets – for the ADB financing compare the actual disbursement with the disbursement projections as per the S-curve included in the PAM ), Include an analysis of significant variances between planned and actual disbursements;

iii. Re-estimated costs to completion, need for reallocation within ADB loan categories, and whether an overall project cost overrun is likely; and

iv. Reconciliation of project records and ADB disbursement records (LFIS/GFIS) for the reporting period and cumulative from project inception to end of the reporting period. Explain reasons for discrepancies and outline follow-up actions required (if any). Attach a detailed reconciliation by withdrawal application as per Appendix 3.

Section C. Project Purpose i. Status of project scope/implementation arrangements compared with those in the Report

and Recommendation of the President (RRP), and whether major changes have occurred or will need to be made;

ii. An assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements; and

iii. An assessment of changes to the key assumptions and risks that affect attainment of the development objectives.

Section D. Implementation Progress i. Provide a brief summary assessment of progress or achievements in implementation since

the last progress report;

56 Appendix 3

ii. Assessment of the progress of each project component, such as (a) recruitment of consultants and their performance,(b) procurement of goods and works (from preparation of detailed design and bidding documents to contract awards); and (c) the performance of suppliers, manufacturers, and contractors for goods and works contracts;

iii. Assessment of progress in implementing the overall project to date in comparison with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules. Include an analysis of significant variances between physical and financial progress; and,

iv. An assessment of outcome/output achievements versus targets – based on project performance monitoring system (PPMS) developed from design and monitoring framework of the project.

Section E. Major Project Issues and Problems Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds). Section F. Compliance with Safeguards and Covenants i. Review the borrower's compliance with policy loan covenants, and, where relevant,

provide any reasons for any noncompliance or delay in compliance; ii. Provide a summary assessment of compliance with resettlement and environmental

safeguards; and, iii. Summarize the status of financial covenants (if any) as outlined in the loan and project

agreement. If any financial ratios required as part of the financial covenants, then these should be calculated and disclosed using the latest entity level financial statements or reports that are available. Also outline any actions being undertaken as part of ensuring the specified financial ratios are achieved/maintained.

Section G. Financial Management i. Summarize the status of Financial management in the project including: a) any problems

in the existing financial management arrangements and /or flow of funds and b) any significant changes occurred during the reporting period (e.g. financial management staff turnover, implementation of new financial systems, emerging financial management related risks etc..);

ii. Summarize the status of: a) the financial management action plan outlined in the PAM, b) recommendations and actions raised by ADB as part of the APFS/AEFS review (if any) and c) financial management related recommendations agreed during ADB review missions (if any); and

iii. Summarize the status of Status of past audit observations (resolved/ pending) Appendixes Attach the following appendixes to the when submitting it to ADB: 1. Summary Loan Covenant Review 2. Summary Gender Action Plan Progress (separate format available) 3. Statement of Cash Receipts and Payments by Category 4. Detailed reconciliation (by Withdrawal application) of project records and ADB

disbursement records (LFIS/GILFIS) for the fiscal year to date and cumulative 5. List of signed contracts 6. Status of past audit observations (resolved/ pending)

Appendix 3 57

7. Status of financial management action plan (complied/ongoing) 8. Status of financial management related actions agreed during ADB review missions (if

any).

58 Appendix 3

Quarterly Progress Report Appendixes

Statement of Cash Receipts and Payments by Category

Reporting Period (Quarterly/Semi-annually) Year to date Cumulative

Hard commitments (contracts signed not

paid) In the currency of the financial statements

Cash receipts

ADB Advance/Replenishments Q Q* Q^ ADB Direct Payments P P* P^ ADB Reimbursement/Retroactive Financing U U* U^ Government S S* S^ Total T=Q+P+S+U T*=Q*+P*+S*+U* T^=Q^+P^+S^+U^ Payments* Civil works A A* A^ A** Consultancy services B B* B^ B** Project administration C C* C^ C** Maintenance D D* D^ D** Total expenditures E=A+B+C+D E*=A*+B*+C*+D* E^=A^+B^+C^+D^ E**=A**+B**+C**+D** Opening cash balance H H* H^ Closing cash balance K=H+T-E K*=H*+T*-E* K^=H^+T^-E^

*expenditure categories as outlined in the PAM.

Appendix 3 59

Detailed Reconciliation (by Withdrawal Application) of Project Records and ADB Disbursement Records (LFIS/GILFIS)

for the Fiscal Year to Date and Cumulative

WA Details

Per project records/APFS (Amount recorded in the project Financial

statements as reimbursement, direct payment, etc..)

Per ABD disbursement records LFIS/GFIS

(actual Paid)

Withdrawal application

No (WA)

Disbursement method

(reimbursement, direct payment,

etc..)

Time period covered in

the WA Date

In local currency (as recorded in

project records/ financial

statements) exchange

rate

USD equivalent

(A) Value date In USD

(B) Difference

(A-B)

Reason for difference (i.e. timing

forex. Pending rejected)

1 1-31.3.2020 2 3 etc.. Total

60 Appendix 3

List of Signed Contracts

Contract Information

Description* Contract

Description Contract

Start Contract

End Supplier/Contractor

Name Contract

No. Total

Contract Value

Total Contract Amount Invoiced to date

Total Disbursed

on Contract

Total Undisbursed

Amount

1. Civil works

2: Equipment/ supplies

3. Consulting services

Total

*Classified a per expenditure categories outlined in the PAM.

Appendix 3 61

Status of External Audit Observations – Cumulative from Inception to End of Reporting Period

Recommendation/ Audit Observation

External Audit Recommendation

Date of the Recommendation

Planned Actions to Address the

Recommendation Responsibility

Current Status of the Planned

Action (pending /resolved)

Remarks

Status of Financial Management Action Plan

Key Risk Risk Mitigating Activity Timeline Responsible

Entity Current status

(implemented/Pending) Remarks

(including an action plan in case of noncompliance)

62 Appendix 3

Status of financial management related actions agreed during ADB review missions

Date of the review mission Agreed actions Timeline Responsible

Entity Current status

(implemented/Pending) Remarks

Appendix 4 63

INDICATIVE AUDIT OPINION ON FINANCIAL RATIOS

[Auditors letterhead]

Independent auditor’s report To, The executive director (or equivalent) Name of the Entity We have audited the accompanying KWASA’s statements of Cash Operating Ratio, as on DD/MM/YYYY prepared in accordance with International Standards on auditing (ISA) and examined KWASAS's compliance with the financial covenants requirements contained in the Asian Development Bank (ADB) loan No. XXXX (name of the project) for the year ended DD/MM/YYYY Management is responsible for the preparation and calculation of the above mention statements. Our responsibility is to express and opinion on the accompanying statements. We conducted our audit in accordance with International Standards on auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the statements are free from material misstatements, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable Assurance Is a high-level assurance but it is not a guarantee that and audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of this statement. In our opinion, • the statements of cash operating ratio (calculated as its operating expenses excluding depreciation divided by its total revenue) as of DD/MM/YYYY of [INSERT NAME OF THE ENTITY] gives a true and fair view in all material aspects; and, • KWASA complied, in all material respects with the financial covenants of the ADB loan NO.XXXX (name of the project) for the year ended DD/MM/YYYY. Signature of the auditor Printed name of the auditor Location Name of the entity Additional statement as required under schedule 5, para XX of the loan agreement of the ADB loan/grant number for the fiscal year ended… Calculation of operating ratio Particulars Amounts operating expenses …. ….. Total revenue … ….

64 Appendix 4

Ratio (Calculated as its operating expenses excluding depreciation divided by its total revenue) Notes: Signature of the Chief finance officer or equivalent Date Signature of the Managing Director or equivalent Date

Appendix 5 65

PROCUREMENT PLAN

Basic Data Project Name: Khulna Sewerage System Development Project Project Number: 49329-007 Approval Number: Country: Bangladesh Executing

Agency: Khulna Water Supply and Sewerage Authority

Project Procurement Risk: Moderate Implementing Agency: Khulna Water Supply and Sewerage Authority

Project Financing Amount: US$ 275,000,000 ADB Financing: US$ 160,000,000 Cofinancing (ADB Administered): Non-ADB Financing: US$ 115,000,000

Project Closing Date: 30 June 2028

Date of First Procurement Plan: 28 February 2020

Date of this Procurement Plan: 24 August 2020

Procurement Plan Duration (in months): 18 Advance Contracting: Yes

e-GP: No

A. Methods, Review and Procurement Plan Except as the Asian Development Bank (ADB) may otherwise agree, the following methods shall apply to procurement of goods, works, and consulting services.

Procurement of Goods and Works Method Comments

Open Competitive Bidding (OCB) for Goods Each type of procurement shall be prior reviewed Request for Quotation for Goods First contract of each type of procurement shall be

prior reviewed Open Competitive Bidding (OCB) for Works Each type of procurement shall be prior reviewed Request for Quotation for Works First contract of each type of procurement shall be

prior reviewed

Consulting Services Method Comments

Quality- and Cost-Based Selection for Consulting Firm

Open Competitive Bidding, 90:10, FTP, prior review

Competitive for Individual Consultant ICS B. Lists of Active Procurement Packages (Contracts)

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

Goods and Works

Package Number

General Description

Estimated Value

(excluding CD-VAT, in

US$)

Procurement

Method

Review

Bidding Procedur

e

Advertisement

Date (quarter/year)

Comments

KWASA/KSSDP/SN-1

Construction of Sewer Network including

60,399,000.00

OCB Prior 1S2E Q2/2020 Advertising: International No. Of

66 Appendix 5

Goods and Works

Package Number

General Description

Estimated Value

(excluding CD-VAT, in

US$)

Procurement

Method

Review

Bidding Procedur

e

Advertisement

Date (quarter/year)

Comments

pumping station, service connection and house connection (Group-1)

Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: Yes Bidding Document: Large Works High Risk Contract: No Comments: O&M 2 years, ADB will finance O&M until project completion period

KWASA/KSSDP/SN-2

Construction of Sewer Network including pumping station, service connection and house connection (Group-2)

75,905,500.00

OCB Prior 1S2E Q2/2020 Advertising: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: Yes Bidding Document: Large Works

Appendix 5 67

Goods and Works

Package Number

General Description

Estimated Value

(excluding CD-VAT, in

US$)

Procurement

Method

Review

Bidding Procedur

e

Advertisement

Date (quarter/year)

Comments

High Risk Contract: No Comments: O&M 2 years, ADB will finance O&M until project completion period

KWASA/KSSDP/STP

Construction of Two Sewerage Treatment Plant including fecal sludge treatment plant

58,574,000.00

OCB Prior 1S2E Q4/2020 Advertising: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: Yes Bidding Document: Large Works High Risk Contract: No Comments: O&M of 3 years. ADB will finance O&M until project completion period

Consulting Services

Package Number

General Description

Estimated Value

(in US$) Selection Method

Review

Type of Proposal

Advertisement

Date (quarter/year)

Comments

68 Appendix 5

KWASA/KSSDP/CS-1

International consultant for Project Management and Supervision

8,504,671.00 QCBS Prior FTP

Q2/2020 Non-Consulting Services: No Type: Firm Assignment: International Quality-Cost Ratio: 90:10 Advance Contracting: Yes

C. List of Indicative Packages (Contracts) Required Under the Project The following table lists goods, works, non-consulting and consulting services contracts for which procurement activity is expected to commence beyond the procurement plan duration and over the life of the project (i.e., those expected beyond the current procurement plan duration).

Goods 1 Package Number

General Descriptio

n

Estimated Value

(in US$)

Procurement

Method

Review

Bidding Procedur

e Comments

KWASA/KSSDP/GD-1

Supply of Jeep (4WD, 5 door, Min 2500 cc)-1 No;

433,196.00 OCB Prior 1S1E Advertising Type: National No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Bidding Document: Goods

KWASA/KSSDP/GD-2

Supply of 10 nos. Motorcycles

23,529.00 Shopping Post N/A Advertising Type: National No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Bidding Document: RFQ for Goods

KWASA/KSSDP/GD-3

Supply of Sewer Cleaning Equipment

1,058,824.00 OCB Prior 1S1E Advertising Type: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference

1 No works contracts are under this table.

Appendix 5 69

Applicable: No Bidding Document: Goods

KWASA/KSSDP/GD-4

Supply of Different Types of Equipment, Furnitures & Fixtures, Computer & Accessories, Computer Software

403,647.06 OCB Prior 1S1E Advertising Type: National No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Bidding Document: Goods

KWASA/KSSDP/GD-5

Supply of Laboratory equipment

411,765.00 OCB Prior 1S1E Advertising Type: National No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Bidding Document: Goods

Consulting Services

Package Number

General Description

Estimated Value (in

US$) Selection Method Review Type of

Proposal Comments

KWASA/KSSDP/CS-2

International consultant for Institutional development, Awareness and Design

7,380,035.00 QCBS Prior FTP Non-Consulting Services: No Type: Firm Advertising: International Quality-Cost Ratio: 90:10

70 Appendix 6

OUTLINE TERMS OF REFERENCE A. Project Management and Supervision Consultant 1. The main objective of this consultancy services is to support KWASA to implement sewerage system development project for improving sewerage and sanitation service with necessary interventions envisaged to be implemented at Khulna city and Batiaghata Upazila. The services will include construction supervision, technical guidance having gone through the all related documents, correction or addition, if it is deemed necessary during implementation considering the field situation, support to bidding process for supply packages and implementation, monitoring of safeguard requirements as per ADB safeguard policy and other safeguards requirements followed in the intervention areas, and preparation of reports & documents as required. 2. The specific objectives of the consultancy services are to support KWASA in the following:

(i) To supervise the construction of infrastructures and Installation of electromechanical equipment under all the subprojects;

(ii) To monitor the progress of construction work and guide the contractor to complete the work as per schedule;

(iii) To ensure the ADB’s safeguard compliance; (iv) To go through the design, drawing and estimate of all the components and

subcomponents of sewerage system (sewer network, treatment plant, pumping station & others) and to correct the documents, in consultation with KWASA, if requires during implementation;

(v) To prepare the bidding document (for remaining package, such as, sewer cleaning equipment, laboratory equipment, office equipment and operational vehicles etc.); and

(vi) To support KWASA to conduct the bidding procedure and award of contract in accordance with the PPR 2008 and ADB’s Policy and Regulation, 2017 and as amended time to time, and in resolving contract related issues during implementation.

3. The engagement period of the consultancy services is 48 months. Locations are in Khulna city and Batiaghata Upazila. 4. Main activities of the consultants are described below. The description may not be exhaustive, and the activities shall not necessarily be limited to those described. Activity 1: Mobilization and Inception Report

(i) The Team Leader will initially mobilize with key members of the project team to set up of project office including furnishing and then will mobilize further manpower, equipment and peripherals;

(ii) The Consultants will, after initial interactions with the KWASA and KCC, go through the all the project documents to have the clear understanding of the project to define the milestone steps in work plan. Under this task, the consultant is required to do the following; • To go through existing documents related to the project components and

government’s Development Project Proposal; • Preliminary Field visits;

Appendix 6 71

• Prepare approach and methodology in line with the existing field conditions; • Prepare action plan for carrying out the tasks; and • Draft inception report

Activity 2: Construction Supervision/implementation of contract package

(i) The consultants will assist KWASA in construction supervision/implementation of all contract packages as per the signed contracts and other contract documentations, which will lead to the successful, smooth and timely implementation of the contract packages. The Consultant will ensure quality of work as per the contract document, Government and ADB’s procedure. The consultant will also certify the work done for payment.

Activity 3: Safeguards requirement and Gender Action Plan implementation and reporting

(i) Environment • Update/Finalize the Initial Environmental Examination (IEE) report including

environmental management plans (EMPs) based on final detailed design of the project and in accordance with ADB SPS and national laws, regulations, policies and guidelines;

• Conduct due diligence of associated facilities and/or audit of existing facilities, if any, during the detailed design phase, as defined in ADB SPS;

• Assist KWASA in the conduct of meaningful consultations and ensure issues/concerns/suggestions raised are incorporated in the design and updated/final IEE report;

• Ensure relevant provisions from the updated/final IEE report and EMPs are incorporated in the bid and contract documents;

• Assist KWASA to establish grievance redressal mechanism and ensure members of the grievance committee have the necessary capacity to resolve project-related issues/concerns;

• Together with the social safeguards experts, conduct safeguards capacity building to ensure KWASA has the capacity to implement, monitor, and report on implementation of EMPs, resettlement plans and indigenous peoples plans (if any);

• Assist KWASA on a day to day basis in monitoring implementation of EMPs at all work sites, including all potential safeguard issues identified in the safeguard documentation mentioned above and other monitoring activities such as fish biodiversity in the Rupsha river, etc.; and

• Monitor any unanticipated environmental risks or impacts that arise during construction, implementation or operation of the project. that were not considered in the IEE report and EMPs. Prepare corrective action plans and ensure that these are implemented by the contractor and reported accordingly in environmental monitoring reports to ADB.

(ii) Involuntary Resettlement and Indigenous People Plan • Update Resettlement Plans, including due diligence reports (DDR) and

Indigenous Peoples Plans (IPP), if any, as required for implementation of the packages and in accordance with ADB SPS;

• Ensure all conditions in the RPs are implemented and/or complied with prior to execution of works in any of the packages;

72 Appendix 6

• Assist KWASA in the implementation of the grievance redress mechanism (GRM);

• Assist KWASA in the conduct of meaningful consultations and ensure that resettlement issues raised are considered in the updating of resettlement plans;

• Together with the environmental safeguards experts, conduct safeguards capacity building to ensure KWASA has the capacity to implement, monitor, and report on implementation of EMPs, resettlement plans and indigenous peoples plans (if any); and

• Undertake all other tasks as may be required in order to ensure social safeguard issues encountered during the implementation phase are resolved consistent with the requirements of ADB SPS.

(iii) Gender • Prepare, monitor and report on Gender Action Plan (GAP); • Provide support to KWASA in achieving indicators and compliance to GAP

as per ADB requirement; and • Assist KWASA in implementing GAP.

Activity 4: Procurement Support

(i) The consultant will support KWASA for procurement activities including preparation of bidding documents (for supply packages), conduct bidding, contract award and contract management for the implementation of the contract packages. The consultant will also assist KWASA as regard to contract related issue during implementation. • The consultants will prepare of all necessary procurement documents in

compliance with ADB’s Procurement Guidelines for all contract packages mentioned above and for also other consultancy service (Institutional Development), if requires;

• The Consultant will update procurement plan, and implementation plan as and when necessary;

• The Consultant will support KWASA in procurement process as per the ADB Policy and Regulation, 2017 as amended time to time, and PPR 2008; and

• The consultant will support contractors in developing required manual for O&M of sewerage system and necessary reports including PCR (construction part and activities covered by the service period).

Activity 5: Detail going through the Engineering Design

(i) The Consultant will support contractors to conduct survey/investigation related to all the major infrastructure sub-components, such as, sewer network, sewerage pumping stations, sewerage treatment plant, household sewer connection, if requires, during implementation;

(ii) The consultant will go through the design criteria for all the components, and propose its correction, if it is deemed necessary;

(iii) The consultant will go through the engineering design of sewer network including hydraulic model, engineering design of sewerage treatment plants also engineering design of other sub-components; will make correction in consultation with KWASA, if it requires during implementation;

Appendix 6 73

(iv) The Consultant will go through the engineering drawing, technical specification, bill of quantities (BOQs) for all sub-component of the sewerage system, and will make correction in consultation with KWASA, if it requires during implementation. The consultant will prepare the engineering design, drawing, technical specification, bill of quantities (BOQs), estimate for the supply packages;

(v) The Consultant will consider climate change and disaster impact in the proposed urban infrastructure design so that the infrastructures become climate and disaster resilient with multi-hazard approach; and

(vi) Update GIS database incorporating all the existing and in-built facilities. 5. A total of 569 person months including 95 person-months of the international key experts, 474 person-months for the key national experts would be required. The estimated staffing and expertise person-months requirements are summarized below.

SL. No. Position of Professional Number Man Month A International Consultants

A1 Sewage Treatment Plant Specialist/Team Leader 1 36 A2 Co-treatment Plant Specialist 1 9 A3 Process Specialist 1 20 A4 Sewer Network Specialist 1 30 Sub Total (A) 4 95

B National Consultants B1 Deputy Team Leader/Sewer Network Specialist 1 48 B2 Sewer Network Specialist 1 36 B3 Sewage Treatment Plant Specialist 1 30 B4 Procurement Specialist 1 30 B5 Electrical Engineering Specialist 1 30 B6 Mechanical Engineering Specialist 1 30 B7 Environmental Safeguards Specialist 1 24 B8 Social Safeguards Specialist 1 24 B9 Gender Specialist 1 24

B10 GIS Specialist /Analyst 1 42 B11 Structural Design Specialist 1 24 B12 Financial Management Specialist 1 6 B13 Supervising Engineer in Civil 1 42 B14 Supervising Engineer in Mechanical 1 42 B15 Supervising Engineer in Electrical 1 42

Sub Total (B) 15 474 Total (A+B) 19 569

6. The educational qualification and experience required for each position and terms of reference of each position of the Project Team of the PMSC are as follows.

SL. No. and Position Qualification Requirement Summary TOR

A. International Consultants (A1) Sewage Treatment Plant Specialist/Team Leader

The expert will be a civil engineering graduate with masters in sanitation/ environmental/engineering and relevant disciplines with working experience of more than 20 years. She/he will have about 10 years of international experience in the field of

As team leader; a. Prepare an appropriate implementation

plan for the project; b. Construction supervision of all facilities

including procurement of goods, installation of equipment, testing and

74 Appendix 6

SL. No. and Position Qualification Requirement Summary TOR

design and supervision of sewerage projects, preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and/or in developing countries. She/he will have working experience as team leader in minimum 1 similar Project. Work experiences in the project funded by international development partner including ADB would be preferable. She/he should have good communication skills, be familiar with participatory approaches to project design and implementation and be able to assist in the capacity building and training program

commissioning. Go through the design, drawing and specification;

c. Go through and assess existing studies, documents, and other information available relevant to the sewage management;

d. Support KWASA to coordinate with KCC, ADB and other stakeholders and develop coordination mechanism following government’s rules and regulations to ensure full wastewater management coverage of the sewerage districts through sewerage system and/or FSM as appropriate;

e. Provide support in updating procurement plan along with contract packaging for goods and works;

f. Prepare high quality report, and documentation, as acceptable to KWASA and ADB;

g. Go through the engineering design and specification for all contract packages and, if requires, make necessary correction during implementation in consultation with KWASA. Prepare bidding documents for supply packages including design, specification, cost estimate and assist KWASA in bidding process including bid evaluation and contract award;

h. Supervise other engineers and other staffs; and

i. Prepare the Project Completion Report (construction part and activities covered by the service period).

As Sewage Treatment Specialist: a. Supervise the construction works of

sewage treatment plants to ensure its quality for achieving the desired service level;

b. To go through the documents related to sewerage components;

c. To go through the detailed design of sewage treatment plant and other subcomponents considering climate resilience aspect in design, and make necessary correction during implementation, in consultation with KWASA, if it is deemed necessary;

d. Support in updating resettlement, environmental; and all safeguard documentations;

e. Testing materials to assess their tolerant as per standards tests

Appendix 6 75

SL. No. and Position Qualification Requirement Summary TOR

applicable especially for the construction works of sewerage treatment plant;

f. Check and certify contractor’s payment certificates. Also check periodically quantities in BOQ and actual works performed; and

g. Guide and support to the contractor for preparation of O&M manual for the sewerage system.

(A2) Co-treatment Plant Specialist

The expert will be a Graduate in civil engineering with masters in sanitation/environmental/public health engineering disciplines with 20 years’ experience. She/he will have 10 years international experience in design/supervision of relevant wastewater treatment plant process and infrastructure, preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and/or elsewhere in developing countries. Work experiences in the project funded by international development partner including ADB would be preferable. She/he should have good communication skills, be familiar with participatory approaches to project design and implementation and be able to assist in the capacity building and training program.

a. Supervise the construction of wetland and sewage treatment plant to ensure its quality for achieving the desired service level;

b. Support team leader to prepare different reports as required by KWASA;

c. Support to defining O&M of sewerage system and support to contractor to prepare the manual on sewerage treatment plant;

d. Conduct/Review the wastewater characterization and analysis it;

e. Support to make necessary correction or adjustment, (if requires) on the design of wetland and sewage treatment plants including relevant works, climate resilience aspect in design; and

f. Go through and support to make correction of the design the co-treatment facility (comprising sewage and sludge) during implementation, in consultation with KWASA, if it deems necessary.

(A3) Process Specialist

The expert will be a Master’s degree in civil/sanitation/environmental/ chemical engineering or related field with 15 years of working experience in the process design/supervision of STP/FSM preferably with at least 5 years working experience in similar field in Bangladesh and/or elsewhere in the developing countries. Work experiences in the project funded by Development Partner including ADB would be preferable. She/he should have good communication skills, project implementation and be able to assist in the capacity building and training program.

a. Supervise during construction of sewage treatment plant (STP) to confirm the design to ensure its performance at desired level;

b. Support to prepare O& M manual and required documents; and

c. Support Team leader along with Co-treatment plant specialist to correct or adjust the design of STP, engineering drawing, including co-treatment facility (comprising sewage and sludge) as required.

(A4) Sewer Network Specialist

The expert will be a Master’s degree in sanitation, public health engineering, civil engineering or relevant with 20 years’ experience in

a. Supervise the construction works of sewer network and pumping stations to confirm the design to ensure its performance at desired level;

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SL. No. and Position Qualification Requirement Summary TOR

designing, construction supervision of sewerage network preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and/or elsewhere in developing countries. She/he should have good communication skills and be able to assist in the capacity building and training program. Experience of working with ADB or other Development Partner funded projects will be advantageous.

b. Testing materials to assess their tolerant as per standards tests applicable especially for the construction works of sewer network and pumping stations;

c. To go through the sewer network design including pumping stations considering hydraulic model, and make correction in consultation with KWASA, if requires during implementation;

d. Conduct survey and investigation, as per requirements;

e. To consider the climate resilience aspect in sewer network;

f. To go through the specification, and correct it, if there is found any error or omission during implementation, and support to GIS mapping;

g. Check and certify the contractor’s payment certificate; and

h. Support to contractor in preparing the O&M manuals

B. National Consultants (B1) Deputy Team Leader/Sewer network specialist

Graduate in civil engineering or similar / relevant discipline with a minimum of 20 years’ relevant working experience, including at least 5 years’ experience in design/supervision of similar project. Post-graduate/master’s degree in sanitation/water supply or relevant is preferable. Experience of working with ADB or other development partner funded projects will be advantageous. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Supervise the construction works of sewer network and pumping stations to confirm the design to ensure its performance at desired level;

b. Supervise the construction of civil, mechanical and electrical works of all the subcomponents to ensure its desired level.

c. Testing materials to assess their tolerant as per standards tests applicable especially for the construction works of sewer network and pumping stations;

d. Along with the international sewer network specialist, to go through the engineering design of all the component of sewer networks system incorporating climate resilience aspect;

e. Conduct survey and investigation sewerage system such as sewer network, transmission main, etc., as per requirement;

f. Along with the international sewer network specialist, make correction of bill of quantities, drawings and design in consultation with KWASA, if requires during implementation.

g. Check and certify the contractor’s payment certificate; and

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h. Support to contractors to prepare the O&M manual and support other required documents including PCR.

(B2) Sewer Network Specialist

Graduate in civil engineering or similar/relevant discipline with a minimum of 15 years’ working experience water supply and sanitation projects, including at least 10 years’ experience in design/supervision of pipe network. Post-graduate/master’s degree in sanitation/water supply or relevant and working with ADB or other Development Partner funded projects will be advantageous. She/he should have good communication skills.

a. Supervise the construction of sewer network and pumping station as per drawing & design;

b. Support to team leader and deputy team leader to check periodically quantities in BOQ and actual works performed;

c. Support to contractors to prepare of the O&M manuals;

d. Review climate resilience aspect in sewer network;

e. Along with the international sewer network specialist and deputy team leader, go through sewer network including pumping stations, if requires, support to make correction; and

f. Assist contractors in conducting survey and investigation, as per requirement.

(B3) Sewage Treatment Plant Specialist

Graduate in civil engineering or similar/relevant discipline with a minimum of 15 years’ working experience water supply and sanitation project, including at least 10 years’ experience in design/supervision of water and wastewater/sewerage treatment plant. Post-graduate/masteral degree in sanitation/water supply and/or relevant is preferable. Experience of working with ADB or other Development Partner funded projects will be advantageous. She/he should have good communication skills.

a. Supervise the construction of sewage treatment plant to ensure its quality for achieving the desired service level;

b. Support to team leader and deputy team leader to check quantities in BOQ and actual works performed;

c. Support to team leader and deputy team leader to prepare different reports as required by KWASA;

d. Along with the team leader, go through the engineering design of all component of sewerage treatment plant incorporating climate resilience aspect;

e. Support to update the design the co-treatment facility (comprising sewage and sludge) as required;

f. Along with the international team leader, go through sewerage treatment plant drawing & design, if requires, support to make correction; and

g. Support to contractor in defining O&M of sewerage system and prepare manual on sewage system; and

h. Check and certify the contractor’s payment certificate.

(B4) Procurement Specialist

Graduate in Civil Engineering, similar/relevant discipline with at least 15 years of relevant experience, preparation of procurement plan and procurement documents of development partner including ADB, with significant experience in procurement services in urban infrastructure or related projects

a. Update procurement plan of the project agreed upon between the ADB and Government of Bangladesh, (including procurement thresholds and procurement methods) and approval requirements (prior or post) in connection with procurement of goods and works under the project, and advise KWASA accordingly;

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SL. No. and Position Qualification Requirement Summary TOR

(water supply/ sewerage system). Experience of working with ADB or other Development Partner funded projects will be advantageous. She/he should have good communication skills.

b. Keep liaison with other team members, in the procurement of equipment and vehicles including preparation of specification and bid documents;

c. Prepare/update bidding documents for procurement of goods and works for required contract packages following ADB Procurement Guidelines and Public Procurement Rules, 2008 of Government of Bangladesh as applicable;

d. Review bill of quantities, cost estimates, specifications and bid documents for required contract packages;

e. Assist KWASA in bidding process including bid evaluation contract award, and in resolving contract related issues during implementation; and

f. Provide timely and constructive assistance in dealing with any obstacles to procurement activities.

(B5) Electrical Engineering Specialist

Graduate degree in Electrical Engineering or relevant with working experience about 15 years in designing of relevant electrical components of such infrastructure (STP/water treatment plants, etc.). She/he will be experienced in designing of electrical component in treatment plants. Work experiences in the project funded by Development Partner including ADB would be preferable. She/he should have good communication skills, and be able to assist in the capacity building and training program

a. Supervise the implementation work at milestone stages;

b. Support to team leader and deputy team leader to check periodically related quantities in BOQ and actual works performed;

c. To go through all electrical drawing & design works that includes under sewerage system (if required);

d. Support and Collect relevant data, information related to electrical design of components;

e. Correct design of sub-station, as required for sewerage system (if required); and

f. Check and certify the contractor’s payment certificate.

(B6) Mechanical Specialist

Graduate in Mechanical Engineering, similar / relevant discipline with at least 15 years of relevant working experience mechanical design, with significant experience in water/sewage treatment plants or related projects. Experience of working with ADB or other Development Partner funded projects will be advantageous. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Supervise the implementation work at milestone stages;

b. To go through and correct (if required) the mechanical/ electro-mechanical design works that includes under pumping stations and sewage treatment plants;

c. Support and collect relevant data and information related to mechanical design of schemes included in the above;

d. Check and certify the contractor’s payment certificate.

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e. Supervise implementation work at milestone stages; and

f. Support to team leader and deputy team leader to check periodically related quantities in BOQ and actual works performed.

(B7) Environmental Safeguards Specialist

Graduate in civil engineering, environmental engineering, similar/relevant discipline with at least 15 years of relevant working experience in environmental field including at least 10 years’ experience in sewerage or urban or relevant project. Experience of working with ADB or other Development Partner funded projects will be advantageous

a. Assist in updating the IEE report and EMPs for any change in scope, design, location, or unanticipated impacts that are not reported in the draft IEE report;

b. Interact with the sector specialists and integrate environmentally sound practices into the detailed design of project components;

c. Ensure updated IEE report and EMPs are included in contract documents;

d. Ensure compliance of the project with all relevant national environmental laws, rules and regulations;

e. Assist in environmental training programs and workshops for the staff of KWASA and contractors and in accordance to the Capacity Building Program;

f. Prepare activity plans as identified in IEE report (e.g. site management plans, waste management plans, sludge management and disposal plans, occupational safety plans, etc.);

g. Review contractors’ site-specific EMPs (SEMPs) to ensure consistency with the IEE/EMP. Review any changes in the contractors’ design and support KWASA in ensuring environmental assessment, impacts avoidance and mitigation measures are reflected in the SEMPs and updated IEE report;

h. Monitor the implementation of the SEMP by the contractors;

i. Assist in providing occupational health and safety training for contractors’ personnel before commencement of civil works for all sub-projects;

j. Assist KWASA environmental officer in preparing environmental monitoring and implementation progress reports to ADB;

k. Establish dialogue with the affected communities and ensure that the environmental concerns and suggestions are incorporated and implemented in the project;

l. Facilitate in responding to any public grievances; and

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SL. No. and Position Qualification Requirement Summary TOR

m. Assist in any other related tasks assigned by or Team Leader for effective project implementation.

(B8) Social Safeguards Specialist:

The Social Safeguards Specialist will be a Graduate in social sciences/community mobilization or equivalent with at least 15 years of experience. She/he should have experience in designing relevant customer interaction programs for water supply and sanitation service delivery. Work experience in the project funded by Development Partner including ADB safeguards experience is preferable

a. Review and update resettlement plans and/or DDRs based on final detailed designs and in accordance with ADB SPS;

b. Undertake necessary census and/or socioeconomic surveys and data collection, conduct meaningful consultations with project-affected people for finalizing the social safeguard documents;

c. Assist KWASA in preparing the project's item-wise detailed budget and total cost estimates of implementing the RPs, consistent with the requirements of ADB SPS;

d. Coordinate all tasks related to resolution of involuntary resettlement issues and ensure that the project comply with requirements of ADB SPS and Government of Bangladesh;

e. Submit all final resettlement plans to ADB for review and clearance before contract award;

f. Prepare/update project information documents for disclosure to stakeholders and affected people;

g. Hold consultation during preparation/ updating of the social safeguard documents and ensure that comments/ issues raised are communicated to KWASA, and measures to address such issues/ concerns are addressed early on in the project design;

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

i. Coordinate valuation of land by the valuation committees with close consultation with affected persons at Local Land Registry Office level to finalize the compensation packages;

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j. Guide KWASA resettlement officer in providing identification cards to affected persons;

k. Ensure all compensations are paid in accordance with the entitlements in the approved final resettlement plans;

l. Facilitate in responding to any public grievances and keep the record of all grievances;

m. Assist KWASA in preparing social safeguards monitoring reports; and

n. Assist in any other related tasks assigned by the Team Leader/Deputy Team Leader to ensure effective project implementation.

(B 9) Gender Specialist

The Gender Specialist will be a Graduate in social sciences/community mobilization or equivalent with at least 15 years of experience. She/he should have experience in designing in Gender Action Plan and other gender related activities. Work experience in the project funded by Development Partner including ADB safeguards experience is preferable

a. Ensure that both women and girl children are focused on in project initiatives;

b. Ensure that a gender sensitive approach is integrated in all field level planning, implementation and monitoring activities;

c. Prepare and update the Gender Action plan for the Project;

d. Develop monitoring and evaluation tools for the subprojects under the project including establishing measurable gender related targets and indicators for subprojects; and

e. Monitor and prepare the report on gender issues.

(B10) GIS Specialist

Graduate in engineering, urban planning and/or geography or similar/relevant discipline with at least 15 years of relevant working experience in designing and operating GIS systems in the urban water/sanitation or related sector. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Prepare/update GIS based maps required for sub-components of the sewerage system;

b. Assist the consultant team in preparing and analyzing the GIS database and maps;

c. Provide GIS material for presentation purposes;

d. Develop and deliver on the job training to KWASA staff; and

e. Assist in any other task assigned by the supervising consultants as per requirement.

(B11) Structural Design Specialist

Graduate degree in civil/structural engineering with at least 15 years’ experience in designing sewerage/water supply or other infrastructure or relevant projects. She/he will be experienced in designing of water/wastewater treatment plant structures. Work experiences in the project funded by Development Partner including ADB

a. Supervise the construction works at milestone stages;

b. To go through the design criteria and propose for correction, if it deems require;

c. Make correction in structural design of civil construction works of sewerage system, if requires.; and

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SL. No. and Position Qualification Requirement Summary TOR

would be preferable. She/he should have good communication skills and be able to assist in the capacity building and training program

d. To go through the specification and bill of quantities; propose for correction, if requires.

(B12) Financial Management Specialist

Graduate degree in Financial Management/Business administration or related field with at least 15 years’ professional experience in relevant field. She/he will have experience in design and development of accounting and budgeting systems for public enterprises. Work experiences in the project funded by Development Partner including ADB would be preferable. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Establish a sound accounting practice and systems to manage resources available at the investment program;

b. Develop budgetary control process, design budget procedures and budget formats; and

c. Guide to conduct disbursement of fund following ADB’s loan handbook, 2017 as amended from time to time.

(B13) Supervision Engineer (Civil)

Graduate degree in civil/structural engineering with at least 12 years’ experience in supervising water supply/sewerage or other urban infrastructure or relevant projects. Work experiences in the project funded by Development Partner including ADB would be preferable. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Supervise the construction and assist KWASA to ensure quality of works;

b. Supervise and guide the contractor regarding contractor’s preparation, to ensure that these conform to the agreed contract documents;

c. Examine and provide guidance on the contractor’s working methods including examining occupational health and safety procedures;

d. Assess the adequacy of materials, equipment and labour provided by the contractors, the contractor’s methods of work, and rate of progress and recommend appropriate action to expedite progress;

e. Supervise the civil work and guide on the contractor’s plans defining the location of the different construction equipment and its capability;

f. Ensure field instructions to the contractor, and examine and quality control the work to ensure that these are carried out according to the contract documents; and

g. Assist KWASA to take the measurements of work done and certify the quantity.

(B14) Supervision Engineer (Mechanical)

Graduate degree in mechanical engineering with at least 12 years’ experience in electrical works supervising water supply/sewerage or other urban infrastructure or relevant projects. Work experiences in the project funded by Development Partner including ADB would be

a. Supervise the mechanical work and guide on the contractor’s plans defining the location of the different mechanical equipment and its capability;

b. To go the specification of mechanical equipment and assist KWASA to ensure quality of works;

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preferable. She/he should have good communication skills, and be able

c. Supervise and guide the contractor regarding contractor’s preparation, to ensure that these conform to the agreed contract documents;

d. Regarding mechanical works, examine and provide guidance on the contractor’s work methods including examining occupational health and safety procedures;

e. Monitor the rate of progress and recommend appropriate action to expedite progress;

f. Ensure field instructions to the contractor, and examine and control the work to ensure that these are carried out according to the contract documents; and

g. Assist KWASA to take the measurements of work done and certify the quantity.

(B15) Supervision Engineer (Electrical)

Graduate degree in electrical engineering with at least 12 years’ experience in electrical works supervising water supply/sewerage or other urban infrastructure or relevant projects. Work experiences in the project funded by Development Partner including ADB would be preferable. She/he should have good communication skills, and be able to assist in the capacity building and training program

a. To go through the specification of electrical equipment and assist KWASA to ensure quality of works;

b. Supervise and guide the contractor regarding contractor’s preparation, to ensure that these conform to the agreed contract documents;

c. Regarding electrical works, examine and provide guidance on the contractor’s work methods including examining occupational health and safety procedures;

d. Monitor the rate of progress and recommend appropriate action to expedite progress;

e. Ensure field instructions to the contractor, and examine and control the work to ensure that these are carried out according to the contract documents; and

f. Assist KWASA to take the measurements of work done and certify the quantity.

ADB = Asian Development Bank, BOQ = bill of quantities, DDR = due diligence report, EMP = environmental management plan, GIS = geographic information system, IEE = initial environmental examination, KWASA = Khulna Water Sewerage System Authority, SEMP = site-specific environmental management plan, SPS = Safeguards Policy Statement, TOR = terms of reference 7. In addition to professional inputs shown above, support from Non-Key Expert staffs such as Junior Engineer, Surveyors, CAD Operators, Office Manager, Accountant and Office Assistant is anticipated to be required as given in the below.

84 Appendix 6

SL. Title of Expert Require Qualification

No. of Expert

(National) Total Person-

Month 01 Junior Supervision

Engineer (Civil, Mechanical and Electrical)

• Bachelor of Science in Engineering in relevant subject with 5 years’ experience

03 108

01 Surveyors • Bachelor of Science in civil engineering with 2 years’ experience or Diploma in Civil Engineering with 5 years of professional experience

01 18

02 CAD Operator • Diploma in civil Engineering • 5 years as CAD technician

02 84

03 Office Manager • Bachelor’s degree in any discipline • 5 years as project office management

01 48

04 Accountant • Bachelor’s degree in accounting or related subject

• 6 years of professional experience In accounting under engineering consulting/construction firm

01 42

05 Office Assistant • SSC pass 02 96 Total 10 396

CAD = computer-aided design, SCC = Staff Selection Commission 8. The list of deliverables, which the Consultant is expected to producing and corresponding time schedule is outlined in the table below.

Sl. Deliverable Month of Delivery Summary of Contents No. of Copies (i) Inception

Report Within 30 days of mobilization.

Initial findings, detailed approach and methodology, detailed work plan.

5 hard copies and soft copy

(ii) Monthly Report

Every month Describe briefly and concisely all activities and progress for the previous month by the 7th day of each month. Problems encountered or anticipated will be clearly stated, together with actions to be taken or recommendations on remedial measures for correction. Also indicates the work to be performed during the coming month.

5 hard Copies and soft copy

(iii) Quarterly Report

Every quarter Comparative statement of target vs. achievement, examination of major problems and issues, achievement of development objectives and recommended actions including updated design as required.

5 hard copies and soft copy

(iv) Semi-Annual Safeguard Monitoring Reports (environment and social)

Every 6 months from the date of commencement of service.

Based on the template provided in the IEE (for environment) and resettlement plan (for social).

2 hard copies and soft copy.

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Sl. Deliverable Month of Delivery Summary of Contents No. of Copies (v) Bid

documents

Within 8 months Bid documents (4 nos. supply packages)

15 hard copies for each and soft copy

(vi) Draft Final Report

Within 45 months Comprehensive analysis of work done, physical and financial progress of all contracts, operational aspects, qualitative aspects, financial analysis,

10 hard copies and soft copy

(vii) Final Report Within 47 months Incorporating comments from KWASA and ADB

15 hard copies and soft copy

(viii) Project completion report (construction and activities covered by the service period)

Within 48 months Performance of completed works, safeguards management, lesson learnt, recommendation etc.

5 hard copies and soft copy

ADB = Asian Development Bank, IEE = initial environmental examination, KWASA = Khulna Water Supply and Sewerage Authority.

B. Institutional Development, Awareness creation and Design Consultant 9. The main objective of this consultancy services is to support KWASA to make the sewerage system financially sustainable complying safeguard requirements and design the new schemes to enhance the water supply and sewerage service. The services will necessarily include but not limited to institutional development, inclusive sanitation plan, capacity building, and awareness creation among the beneficiaries and design the next phase of the project. 10. The specific objectives of the consultancy services are to support KWASA in the following:

(i) Development of sustainable and inclusive sanitation plan; (ii) Development and implementation of appropriate accounting and financial

management system for sewerage service in Khulna city; (iii) Identification and establishment of sound practices in monitoring and evaluation

system for development / investment programs linking with expected results; (iv) Establishment of realistic / practicable performance standard for adequate

customer service with regard to expectations; (v) Expansion and institutionalization of sustainable service provision to low income

consumers; (vi) Preparing and implementing mass communications and public awareness

strategies; (vii) Support KWASA management in operations, institutional reform and capacity

building; (viii) Exploration of the possibility of public-private partnership (PPP) in water supply

and sewerage system; (ix) Operationalization of a supervisory control and data acquisition (SCADA) system

for sewerage system; (x) Cooperation with other teams of consultants as required for specific tasks; (xi) Institutionalization of the safeguard (environmental, social, gender) requirements

in KWASA through capacity building; (xii) Improvement of the information technology; (xiii) Assessment of the potentiality of existing water sources (surface water and

groundwater), the other feasible sources conducting the study, preparation of the

86 Appendix 6

water supply project defining each component with detail design, specification detail estimate and the investment cost of the project;

(xiv) Assessment of the demand of sewerage service, determination of the potential area for the centralized sewerage system and preparation of the scheme for sewerage project defining each component with detail design, specification detail estimate and the investment cost of the project;

(xv) Prepare the HRD plan and conduct training programs for KWASA staff; and (xvi) Review and update the O&M manual for sewerage system and train the

designated staff. 11. The engagement period of the consultancy services is 48 months. Locations are in Khulna city and nearby Upazila. 12. Main activities of the consultants are described below. The description may not be exhaustive, and the activities shall not necessarily be limited to those described. Activity 1: Mobilization and Inception Report

(i) The Team Leader will initially mobilize with key members of the project team to set up of project office including furnishing and then will mobilize further manpower, equipment and peripherals.

(ii) The Consultants will, after initial interactions with the KWASA and City Corporation, review all reports/ data available to identify the data gap and will finally draw and present component-wise action plan for collection of all such data/information. Under this task, the consultant is required to do the following: • Review the institutional strength of KWASA • Review the financial status and existing accounting system in KWASA • Review existing feasibility study and other documents related water supply

and sewerage system • Preliminary Field visit • Review approach and methodology in line with the existing field conditions • Prepare action plan for taking up the tasks • Draft inception report

Activity 2: Intuitional strength and capacity building

(i) The Consultant will review the institutional capacity of KWASA. (ii) The consultant will propose institutional reform of KWASA defining roles and

responsibilities to ensure the efficient management of Khulna Sewerage system. (iii) The consultant will explore the possibility of public-private-partnership assessing

market potentiality and discussing with the key stakeholders. They will also provide strategic plan in this regard.

(iv) The Consultant will define the programs for capacity building of KWASA and identify the training programs on technical, financial and safeguard requirements on priority basis.

(v) The consultant will develop the sustainable and inclusive sanitation plan specifying the further intervention to be required.

(vi) The Consultant will develop training module and conduct the training programs. Activity 3: Financial Management and Accounting System

Appendix 6 87

(i) Assist KWASA in development and implementation of appropriate accounting and

financial management system commensurate with, GOB regulations and development partners’ requirements; Review the previous works to modernize the accounting system and proposed further actions.

(ii) Assist KWASA management, board, government authorities and customers in reviewing the level and structure of tariff propose.

(iii) Develop the tariff structure through financial, economic analysis and consultation with stakeholder.

(iv) Assist in implementing tariff schedules for different customer classes including cross subsidy mechanisms between different customer classes.

(v) Support KWASA with financial reporting, accounting practices and financial controls.

Activity 4: Public Campaign regarding awareness creation

(i) Develop and implement strategy, including mass communication campaign, regarding sewerage system and establish the system in KWASA.

(ii) Support to institutionalize the stakeholder consultation process; and support for customer complaints system and citizens report.

(iii) Initiate seminars and workshops to raise level of public awareness and widen information regarding the project and activities of KWASA.

(iv) Prepare and mobilize communities to take action that respond to their immediate and long-term needs.

Activity 5: Preparation of new phase of water supply and sewerage system

(i) Review the feasibility study and existing water supply and sewerage systems. And, Define the different component of water supply system and sewerage system.

(ii) Carry out the further survey/study/investigation as per requirement as regard to water supply and sewerage system.

(iii) Prepare water supply project with detail design, specification, cost estimate of each components (treatment plant, transmission line, distribution network, replacement of production well), and investment cost.

(iv) Prepare sewerage project with detail design, specification, cost estimate of each components (sewerage treatment plant, sewer network, pumping station), and investment cost.

13. A total of 456 person months including 90 person-months of the international key experts, 366 person-months for the key national experts would be required. The estimated staffing and expertise person-months requirements are summarized below.

SL. No. Position of Professional Number Man Month A International

A1 Institutional/ Capacity Building Specialist/ Team Leader 1 18 A2 Finance, Accounting and Tariff Advisor 1 9 A3 PPP Specialist 1 9 A4 Social Safeguards Specialist 1 9 A5 Environmental Safeguards Specialist 1 9 A6 Sewerage Treatment plant Specialist 1 9 A7 Sewer Network Specialist 1 9

88 Appendix 6

SL. No. Position of Professional Number Man Month A8 Water Supply Network Specialist 1 9 A9 Water Supply Specialist 1 9

Sub Total (A) 9 90 B National Consultants

B1 Utility Management Specialist/Deputy Team Leader 1 36 B2 Utility Finance and Accounting Specialist 1 12 B3 Community development organizer 1 30 B4 Human Resource Specialist 1 12 B5 PPP Specialist 1 12 B6 Sewerage treatment Specialist 1 18 B7 Sewerage network specialist 1 18 B8 Water Supply Network Specialist 1 18 B9 Water Treatment Plant specialist 1 18 B10 Hydrologist 1 6 B11 Structural Design Specialist 1 24 B12 Electrical Engineering Specialist 1 12 B13 Mechanical Engineering Specialist 1 12 B14 Environmental Safeguards Specialist 1 30 B15 Social Development and Gender Specialist 1 30 B16 Social Safeguards Expert 1 30 B17 IT Specialist 1 24 B18 GIS Specialist/Analyst 1 24

Sub Total (B) 18 366 Total (A+B) 456

14. The educational qualification and experience required for each position and terms of reference of each position of the Project Team of the IDADC are as follows.

SL. No. and Position Qualification Requirement Summary TOR

B. International Consultants (A1) Institutional/ Capacity Building Specialist/Team Leader

The expert should have at minimum master’s degree in business administration, public management, civil engineering or other relevant discipline with working experience of more than 20 years. She/he will have about 10 year’s international experience in the field of in utility management, organizational development and/or institutional reforms. Substantial experience of working as management in urban water utility, preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and or elsewhere in developing countries. S/He will have working experience as Team Leader in minimum 2 projects

As team leader; a. Lead the Team and is responsible in all aspects

of institutional capacity development program for KWASA under the project and managing day to day co-ordination and liaison with other relevant team members / counterpart officials and PD or designated representative as required.

b. Review and assess existing studies, documents and other information available relevant to the sewage management;

c. Support KWASA to coordinate with KCC, ADB and other stakeholders and develop coordination mechanism following government’s rules and regulations to ensure wastewater management coverage of the sewerage districts through sewerage system.

As Institutional/ Capacity Building Specialist: d. Review the institutional capacity of KWASA; e. Prepare the outline on institutional reform to be

required for management of sewerage system; f. Prepare the program and carry out the activities

of capacity building;

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among which at least 1 assignments of similar Project. Work experiences in the project funded by international development partner including ADB would be preferable. She/he should have good communication skills, be familiar with participatory approaches to project design and implementation and be able to assist in the capacity building and training program

g. Guide to define tariff structure for sewerage system;

h. Provide support establishment of an efficient and robust financial management, accounting and internal control system;

i. Develop the public communication mechanism to aware the targeted users and reflect their needs in sewerage service management.

j. Develop the appropriate service delivery mechanism;

k. Support to develop strategic public-private- partnership plan exploring its potentiality;

l. Develop the sustainable and inclusive sanitation plan;

m. Provide support for the design of projects for new phase on water supply and sewerage system; and

n. Support to carry out the exposure visit in abroad to learn about the management of water supply and sewerage services.

(A2) Finance, Accounting and Tariff Advisor

The expert will be a chartered accountant or have master’s degree in Financial Management or other relevant discipline. He/she should have at least 15 years of relevant international experiences in financial management of the public utilities, preferably in water/sanitation sector. He/she should have good communication skills, be familiar with participatory approaches of capacity building and training programs, preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and or elsewhere in developing countries. Work experiences in the project funded by international development partner including ADB would be preferable.

a. Advise KWASA in development and implementation of appropriate accounting and financial management system as well as automation of financial reporting to the extent possible;

b. Develop the tariff structure considering the impact on income of household and willingness to pay;

c. Support to prepare capacity building program and to carry out the training program;

d. Support KWASA with financial reporting, accounting practices and financial controls of the project accounts;

e. Support KWASA in improving its internal control framework including the development of the following: i) a proposal to engage an internal auditor including draft Internal audit TORs, as well as ii) a monitoring system for KWASA’s management to track the status and aging of past audit observations;

f. Assist KWASA management to conduct the audit of project accounts and KWASA’s financial statement Supervise; and

g. Support to team leader to prepare different reports as required by KWASA.

(A3) PPP Specialist

The expert will be a postgraduate in Economics, Business Administration or relevant with specialization with at least 15 years working experience in establishing PPP programs and financially closed PPP Projects in various sectors, and 07 years proven work experience. He/ She should be

a. Review of all relevant laws, statutes, regulations, and design the respective roles and responsibilities of KWASA and other stakeholders in existing operation and management of water supply and sanitation services;

b. Explore the possibility of PPP through market analysis and consultation with potential stakeholders;

c. Develop PPP strategic plan for KWASA;

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experienced in advising on infrastructure projects in one of more infrastructure sectors and, in particular, infrastructure projects involving the private sector preferably in similar position in Bangladesh and or elsewhere in developing countries. Experience of working with ADB or other donor funded projects will be advantageous.

d. Improve the management and operational efficiency through private sector participation/outsourcing or community management; and

e. Design a service delivery mechanism and institutional structures and arrangements including tariff structure to make the KWASA as income generating organization.

(A4) Social Safeguard Specialist

The expert will have a post-graduate degree in social science , or related discipline with at least 15 years of experience, of which preferably 10 years involved in design and implementation of sewerage and sanitation projects, and will have a preferably 5 years proven work experience and skill in similar position in developing countries. He/she should have good communication skills, be familiar with participatory approaches to project design and implementation and be able to assist in the capacity building and training programs. Experience of working with ADB or other donor funded projects will be advantageous.

a. Assist KWASA in meeting requirements of ADB SPS, occupational health and safety, and core labor standards;

b. Lead the preparation of social safeguard documents and the training modules on social safeguards in accordance with ADB's Safeguard Policy Statement (SPS, 2009) and the country's legal requirements;

c. Guide and supervise the work undertaken by the national social safeguard expert;

d. Conduct at least one training workshop (including classroom and field training in Khulna) per year on social safeguards policy, surveys, report preparation, monitoring and reporting, for staff of all project entities (PMU, KWASA, consultants, contractors etc.), including training of (national) trainers;

e. Assess any new government policies, capacities and the legal framework for involuntary resettlement to address any gaps with ADB's SPS;

f. Ensure all safeguard documents and monitoring reports are prepared in meaningful consultation with project affected persons and communities and the consultations documented as part of the safeguard documents;

g. Guide the national social safeguard expert in designing census and/or socioeconomic surveys, satisfaction surveys and data collection and meaningful consultations with project-affected people for drafting the social safeguard documents;

h. Respond to and revise all documents as per comments received from ADB and project (government) counterparts;

i. Guide the national social safeguards expert in preparation of corrective action plans, in the event of any non-compliance;

j. Assist PMU in settling up monitoring systems for social safeguards; and

k. The international social safeguard specialist is accountable for the quality of the final social

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safeguard documents and monitoring reports submitted to ADB. The specialist is also responsible for the quality of training on social safeguards imparted to project entities.

(A5) Environment Specialist

The expert will have a post-graduate degree in civil/environmental engineering, climate science, or related degree with at least 15 years of experience, of which preferably 10 years involved in design and implementation of sewerage and sanitation projects, and will have a preferably 5 years proven work experience and skill in similar position in developing countries. He/she should have good communication skills, be familiar with participatory approaches to project design and implementation and be able to assist in the capacity building and training programs. Experience of working with ADB or other donor funded projects will be advantageous

a. Assist KWASA in meeting requirements of ADB SPS and government on environment, occupational health and safety, and core labor standards;

b. Assist the team leader in incorporating environmental safeguards requirements into project for new phase;

c. Assist KWASA in updating the IEE report for any change in scope, design, location, or unanticipated impacts that are not reported in the draft IEE report;

d. Assist KWASA in continuing stakeholders’ engagement, meaningful consultations, information disclosure and addressing complaints/grievances;

e. Work with Environment safeguard officer of KWASA and institutionalize the safeguard requirement into KWASA by capacity building.

f. Develop public awareness program and materials to support wider understanding of the project, potential impacts and measures to ensure impacts are avoided, mitigated, if any, are compensated;

g. Assist KWASA in preparing environmental monitoring reports;

h. Provide and organize trainings/ workshops/seminars on environmental safeguards, occupational health and safety, and labor standards;

i. Assist KWASA in review of contractor’s health and safety program and in monitoring its implementation;

j. Supervise the national environmental specialist; k. Support to prepare safeguard requirement for new

projects; and l. Undertake any other responsibilities assigned by

the Team Leader/Deputy Team Leader and PD, including other tasks related to environmental safeguards, occupational health and safety, and core labor standards

(A6) Sewerage Treatment Specialist

The expert will be a post-graduate in sanitation, Environmental Engineering, Public health engineering, Civil Engineering or relevant with 15 years’ experience in designing, construction, and supervision of sewerage network preferably with at least 5 years proven work experience and skill in similar position in Bangladesh

a. Design and process of sewerage treatment plant of 2nd phase

b. Conduct survey and investigation, as per requirement;

c. Review climate resilience aspect in sewerage treatment plant;

d. Develop the design criteria and design report; e. Define the best feasible treatment option with

justification; f. Define feasible area and population to be

covered;

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and or elsewhere in developing countries. She/He should have good communication skills and be able to assist in the capacity building and training program. Experience of working with ADB or other donor funded projects will be advantageous.

g. Detail design the sewerage treatment plant and prepare drawing, specification and estimate of this component; and

h. Assist in preparing sustainable and inclusive sanitation plan.

(A7) Sewer Network Specialist

The expert will be a post-graduate in sanitation, environmental engineering, public health engineering, civil engineering or relevant with 15 years’ experience in designing, construction, and supervision of sewerage network preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and/or elsewhere in developing countries. She/He should have good communication skills and be able to assist in the capacity building and training program. Experience of working with ADB or other donor funded projects will be advantageous.

a. Design the sewer network of 2nd phase; b. Conduct survey and investigation, as per

requirement; c. Review climate resilience aspect in sewer

network; d. Develop the design criteria and design report; e. Define feasible area and population to be

covered; f. Detail design the sewerage network and prepare

drawing, specification and estimate of this component; and

g. Assist in preparing sustainable and inclusive sanitation plan.

(A8) Water Supply Network Specialist

The expert will be a post-graduate in sanitation, environmental engineering, public health engineering, civil engineering or relevant with 15 years’ experience in designing, construction supervision of water supply network preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and or elsewhere in developing countries. S/He should have good communication skills and be able to assist in the capacity building and training program. Experience of working with ADB or other donor funded projects will be advantageous

a. Review the design of existing water supply network, transmission main, and distribution system;

b. Conduct survey and investigation, as per requirement;

c. Review climate resilience aspect in water supply network;

d. Define the feasible are to be covered and population coverage;

e. Assist to define the water source; f. Develop the design criteria and design report; and g. Design the water supply network & transmission

main for 2nd phase and prepare drawing, specification and estimate of this component.

(A9) Water Supply Specialist

The expert will be a post-graduate in sanitation, Environmental Engineering, Public health engineering, Civil Engineering or relevant with 15 years’ experience in designing, construction supervision of water supply project including

a. Review the existing water supply system; b. Review the potentiality of source of water (surface

water and groundwater); c. Explore the potentiality of existing and nearby

surface water source and optimizing the groundwater source;

d. Conduct survey and investigation, as per requirement;

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water treatment plant preferably with at least 5 years proven work experience and skill in similar position in Bangladesh and or elsewhere in developing countries. S/He should have good communication skills and be able to assist in the capacity building and training program. Experience of working with ADB or other donor funded projects will be advantageous.

e. Review climate resilience aspect in water supply system;

f. Develop the design criteria and design report; Define the best feasible option of water treatment process; and

g. Design the water treatment plant and prepare drawing, specification and estimate.

B. National Consultants (B1) Utility Management Specialist/Deputy Team Leader

Minimum Master’s degree in business administration, public management, civil engineering or other relevant discipline. He /she must have minimum 15 years of working experience in utility management, organizational development / institutional reform, substantial experience of working as management in urban water utility would be essential. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Assist TL in managing the consultant team in all aspects of institutional capacity development program for KWASA under the project and managing day to day co-ordination and liaison with other team members / counterpart officials of KWASA;

b. Provide advice to KWASA management in relation to operation, management and procedure of financial system;

c. Develop the public communication mechanism to aware the targeted users and reflect their needs in sewerage service management;

d. Develop the appropriate service delivery mechanism;

e. Provide support for the design the projects of new phase;

f. Support to prepare sustainable and inclusive sanitation plan and also strategic plan for PPP; and

g. Support to optimize the SCADA system. (B2) Utility Finance and Accounting Specialist

Chartered accountant or have master’s degree in Financial Management or other relevant discipline. He/she should have at least 15 years of relevant experiences in financial management of public utilities, preferably in water sector. Experience of working with ADB or other donor funded projects will be advantageous. She/he should have good communication skills.

a. Assist KWASA in development and implementation of appropriate accounting and financial management system;

b. Support to develop the tariff structure considering the impact on income of household and willingness to pay;

c. Support to improve the financial system and to establish the appropriate accounting system

d. Support to prepare capacity building programs and to carry out the training program;

e. Support KWASA with financial reporting, accounting practices and financial controls of the project accounts; and

f. Assist KWASA management to conduct the audit of project accounts and KWASA’s financial statement.

(B3) Community Development Organizer

The expert will be a Graduate in Social Science with at least 7 years of experience in implementation of awareness building activities with

The Community Development Organizer will prepare detailed plans to implement the gender sensitive public awareness campaign on water, sanitation and hygiene and the sewage management system of the project. He/she will also

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orientation on social gender development. He/she should have skill on developing and use of social communication tools and techniques and supervision of field activities.

monitor and supervise the Community Mobilizers activities. He/she will implement the project activities with guidance of Social Development and Gender Specialist (SDGS) for GAP related tasks and the Social Safeguards team members for resettlement related tasks. The scope of work of the Community Development Organizer will include but will not be limited to the following: a. Assist Social Development and Gender Specialist

to develop gender sensitive public awareness communication materials;

b. Support implementation of awareness campaign activities in the project area;

c. Manage day-to-day work at the field level; d. Assist Community Mobilizers in preparing and

executing their day-to-day program; e. Compilation of the progress, achievements, and

challenges and submit to the Social Development and Gender Specialist in a timely manner;

f. Assist to organize livelihoods training for all affected persons including poor and vulnerable Aps;

g. Assist to organize public consultations, meetings and orientation on project activities; preparation of ID cards for affected persons, disclosure of RP(s), announcement of cut-off date etc.

h. Coordinate field monitoring by community mobilizers for early identification of unanticipated impacts and grievances, if any

i. Ensue women participation in the consultations sessions as required to achieve GAP;

j. Liaison with Community Mobilizers, SDGS, PMSC, PMU and other stakeholders;

k. Assist the SDGS for selection and collection of case studies on the impact of the project’s intervention in individual and community level; and

l. Any other activities as necessary (B4) Human Resource Specialist

Master’s degree in Public/Business Administration, Social Science or relevant discipline. He/she should have at least 15 years of relevant experience in human resource management. Experience in public utilities, preferably in water supply sector, is essential. He/she should have good communication skills, be familiar with participatory approaches of capacity building and training programs.

a. Support KWASA management to establish good practices in human resource management;

b. Assist in the preparation and implementation of human resource development / training strategy;

c. Conduct training needs assessment, prepare capacity development / training programs and implement those programs phase by phase with support from other team members;

d. Facilitate workshops to familiarize KWASA management and staffs with GIS/MIS as management tools and train appropriate KWASA staffs to manage and operate the GIS/MIS tools effectively;

e. Support the development and implementation of Human Resource Management (HRM) policies and process including as follows:

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- Organizational structures and staffing plans - Preparation of job descriptions and employment contracts, - Development of competitive recruitment and compensation strategies including performance-based remuneration; - Transition plan for the planned organizational changes during the business plan implementation period;

f. Support to carry out training needs assessment and training module development for KWASA coordinating with other team members

(B5) PPP Specialist

Post-graduate in Economics, Business Administration or relevant discipline with specialization with at least 10 years working experience in establishing PPP programs and financially closed PPP Projects in various sectors, and 05 years in relevant field. Experience of working with ADB or other donor funded projects will be advantageous.

a. Review relevant laws, regulations and good practices;

b. Assist to explore the possibility of PPP through market analysis and consultation with potential stakeholder;

c. Assist to develop PPP strategic plan for KWASA; d. Assist to improve the management and

operational efficiency through private sector participation/ outsourcing or community management; and

e. Assist to design a service delivery mechanism and institutional structures and arrangements including tariff structure to make the KWASA as income generating organization.

(B6) Sewerage Treatment Specialist

Graduate in civil engineering, environmental engineering or similar/relevant discipline with a minimum of 15 years working experience water supply and sanitation project, including at least 10 years’ experience in design/supervision of water and wastewater treatment plant. Experience of working with ADB or other donor funded projects will be advantageous. She/he should have good communication skills.

a. Assist to conduct survey and investigation, as per requirement;

b. Assist to develop the design criteria and design report;

c. Assist to define the best feasible treatment option with justification;

d. Assist to detail design the sewerage treatment plant and prepare drawing, specification and estimate of this component; and

e. Assist to formulate sustainable and inclusive sanitation plan.

(B7) Sewer Network Specialist

Graduate in civil engineering, environmental engineering or similar/relevant discipline with a minimum of 15 years working experience water supply and sanitation project, including at least 10 years’ experience in design/supervision of pipe network. Experience of working with ADB or other donor funded projects will be advantageous. She/he should have good communication skills.

a. Assist to conduct survey and investigation, as per requirement;

b. Assist to develop the design criteria and design report;

c. Assist to define feasible area and population to be covered;

d. Assist to prepare detail design the sewerage network and prepare drawing, specification and estimate of this component; and

e. Assist to formulate sustainable and inclusive sanitation plan.

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(B8) Water Supply Network Specialist

Graduate in civil engineering, environmental engineering or similar/relevant discipline with a minimum of 15 years working experience water supply and sanitation project, including at least 10years’ experience in design/supervision of water supply network. Experience of working with ADB or other donor funded projects will be advantageous. She/he should have good communication skills.

a. Support to review transmission main, distribution network of the existing system;

b. Assist in Conducting survey and investigation, as per requirement;

c. Review climate resilience aspect in sewer network;

d. Support to design the water supply transmission mains and distribution network. Prepare the specification and estimate for this component; and

e. Support to prepare water supply project for new phase

(B9) Water Treatment Plant Specialist

Graduate in civil engineering, environmental engineering or similar/relevant discipline with a minimum of 15 years working experience water supply and sanitation project, including at least 10 years’ experience in design/supervision of water treatment plant. Experience of working with ADB or other donor funded projects will be advantageous. She/he should have good communication skills.

a. Support to review the design of treatment plant including relevant works of the existing system;

b. Assist in carrying out the survey and investigation as per requirement;

c. Review climate resilience aspect in design; d. Support to design the water treatment plant and

prepare drawing, specification and estimate of this component;

e. Support to TL to prepare different reports as required by KWASA; and

f. Support to prepare water supply project for new phase.

(B10) Hydrologist

Graduate in Civil Engineering, water resource engineering or relevant discipline with at least 12 years of relevant working experience in hydrological study, including at least 5 years’ experience in hydrological study of water supply or relevant project. Post-graduate degree in Hydrology or relevant is preferable. Experience of working with ADB or other donor funded projects will be advantageous.

a. Review and update the feasibility study of water supply project;

b. Support to collect and analyze the data to define the hydrological setting of the existing nearby potential surface water source to confirm the sustainable water source;

c. Support to design of intake, collection, treatment plant; and

d. Assist in planning and design a of water supply scheme.

(B11) Structural Design Specialist

Graduate degree in Civil / Structural Engineering with at least 15 years’ experience in designing sewerage/ water supply or other infrastructure or relevant projects. S/He will be experienced in designing of water treatment plant structures. Work experiences in the project funded by international donor including ADB would be preferable.

a. Prepare the design criteria; b. Collect relevant data, information related to

structural design of treatment plant, reservoir and other component scheme schemes;

c. Prepare the detail structural design of civil construction works of all the sub-component of water supply system and sewerage system; and

d. Support to prepare the drawing, specification and estimate of the scheme.

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She/he should have good communication skills and be able to assist in the capacity building and training program.

(B12) Electrical Engineering Specialist

Graduate degree in Electrical Engineering or relevant with working experience about 15 years in designing of relevant electrical components of such infrastructure (reservoir/water treatment plants, etc.). S/He will be experienced in designing of electrical component in treatment plants. Work experiences in the project funded by international donor including ADB would be preferable. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Design all electric works that includes under water supply system and sewerage system for the new phase;

b. Collect relevant data, information related to electrical design of schemes;

c. Design of sub-station, as required for water supply system sewerage system;

d. Assist in the preparing the drawing, specification and estimate of all electrical items; and

e. Assist in to optimize SCADA system.

(B13) Mechanical Engineering Specialist

Graduate in Mechanical Engineering, similar / relevant discipline with at least 15 years of relevant working experience mechanical design, with significant experience in reservoir, water treatment plants or component related projects. Experience of working with ADB or other donor funded projects will be advantageous. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Design all the mechanical/electro-mechanical design works related to water supply and sewerage project for new phase;

b. Collect and review relevant data, information related to mechanical design of schemes included above; and

c. Assist in preparing drawings, specification and estimate for all mechanical/electro-mechanical component for water supply and sewerage project.

(B14) Environmental Safeguards Specialist

Master’s in Civil Engineering, environmental engineering, similar/ relevant discipline with at least 12 years of relevant working experience environmental field including at least 15 years’ experience in water supply or urban or relevant project. Experience of working with ADB or other donor funded projects will be advantageous.

a. Update environmental safeguard documents including EMF for running project in accordance with ADB’s SPS and the country’s legal requirements;

b. Assess government policies, experiences, institutions, and the legal framework for environmental assessment to address any gaps with ADB’s SPS;

c. Prepare categorization forms for environment; d. Prepare the environmental impact assessment

and/or initial environmental examinations, appropriate for each subproject in accordance with ADB SPS, 2009;

e. Prepare all safeguard documents in meaningful consultation with project affected persons and communities as part of the safeguard documentation;

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f. Assist the KWASA in complying with ADB's disclosure requirements as per the SPS;

g. Support to prepare safeguard requirement for new sewerage and water supply projects; and

h. Support to institutionalization the safeguard requirement in KWASA.

(B15) Social Development and Gender Specialist

The Social Development and Gender Specialist will be a Master’s in social sciences/ relevant discipline with at least 10 years of professional experience. He/she should have experience in the project funded by Development Partner including ADB policies and Frameworks for Gender and Development. He/she should have experience on monitoring and supervision of project activities.

The expert will prepare detailed plans to implement GAP for the incorporation of gender aspects in all pertinent parts of the project. He/She will work with PMU as well as PMSC and be responsible for strengthening the capacity of the PMU and supporting overall implementation and monitoring of the social development aspects and GAP. He/She will collaborate with other consultants and field staff of social safeguard activities. The scope of work of the Specialist will include but will not be limited to the following: a. Support the implementation of GAP of the

Project; b. Prepare GAP quarterly report and submit to PMU

through TL with a copy to PMSC; c. Ensure that both women, girl and children are

focused on in project initiatives; d. Assess the training needs of the PMU, KWASA

staff and the Community Mobilizers on gender sensitization including GAP implementation, monitoring and reporting and organize/facilitate trainings/workshops accordingly;

e. Monitor and supervise Senior Community Organizer and Community Organizer’s activities and participate in community consultation/orientation programs as per requirement;

f. Develop method and tools for mainstreaming gender equality, including collection of sex-disaggregated socio-economic data and produce gender analysis-based report regularly. Prepare/revise training materials, as necessary to train staff;

g. Prepare and implement gender sensitive behavior change and communication plan;

h. Design and implementation of public awareness campaign on WASH including awareness on COVID 19 and other infectious diseases and the sewerage system of the project;

i. Prepare livelihood training module as required; j. Ensure that all APs including poor and vulnerable

have received livelihoods training as per resettlement plan;

k. Assist other consultants and PMU social Safeguard Officer to implement the project activity;

l. Coordinate and communicate with PMU, PMSC and other stakeholders of the project;

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m. Prepare case studies on the impact of the project’s intervention in individual and community level;

n. Contribute to preparing the project completion report; and

o. Any other activities as necessary. (B16) Social Safeguards Expert

The Social Safeguards Expert will have a Post-graduate degree in Social Science with at least 10 years of experience in preparation and implementation of resettlement plans. Experience in at least 2 externally aided projects is preferred.

The expert will be responsible for updating and implementation of RP(s) for the project, under the overall guidance of the international social safeguard’s specialist and TL. He/She will work with PMU as well as PMSC and be responsible for strengthening the capacity of the PMU and supporting overall implementation and monitoring of RPs. He/She will collaborate with other consultants and guide field staff on social safeguard activities. The scope of work of the Specialist will include but will not be limited to the following: a. Update RP(s) to reflect site/design changes if

any, during implementation; b. Guide field staff (community mobilizers) and

contractor’s social supervisor to conduct surveys, collect all information and conduct site-specific consultations for preparing/updating resettlement plans;

c. Assist PMU in coordination with different departments for permits, consents, NOCs, etc.

d. Assist PMU in third party certification in the event of any negotiated settlement or land donation.

e. Support the implementation and disclosure of resettlement plans – on project website and to affected persons;

f. Prepare quarterly progress report sections and QPR checklists for social safeguards and semi-annual social monitoring reports and submit to PMU through team leader with a copy to PMSC;

g. Assess the training needs of PMU, KWASA staff and the Community Mobilizers on ADB policy including RP implementation, monitoring and reporting, prepare/revise training materials, as necessary to train staff; and organize/facilitate trainings/workshops accordingly;

h. Coordinate Sr. Community Mobilizer and Community Mobilisers’ activities related to social safeguards and participate in consultations and meetings as required;

i. Assist PMU in grievance redress and ensure timely feedback is provided to complainants.

j. Provide inputs for preparation of livelihood training module as required;

k. Ensure that all affected persons including poor and vulnerable affected persons have received livelihoods training as per resettlement plan;

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l. Assist other consultants and PMU social Safeguard Officer in project implementation;

m. Coordination and communication with PMU, PMSC and other stakeholders of the project;

n. Guide field staff in supporting PMU to announce cut-off dates, and disclose resettlement plans to affected persons and implement resettlement plans;

o. Monitor (based on regular field visits and consultations) and document the impact of resettlement plan implementation on affected persons;

p. Contribute to preparing PCR; and q. Support to prepare safeguard requirements for

new sewerage and water supply projects. (B17) IT Specialist

Graduate in engineering/ information technology or similar/relevant discipline with at least 15 years of relevant working experience in developing technology, good communication skills, and be able to assist in the capacity building and training program.

a. Review the existing information technology system of KWASA;

b. Upgrade system with updated technology; c. Upgrade the website of KWASA; design dedicated

portal for KSSDP; d. Prepare training manual and provide training to

KWASA staff; and e. Support to prepare safeguard requirement for new

projects. (18) GIS Specialist/ Analyst

Graduate in engineering, urban planning and/or geography or similar/relevant discipline with at least 15 years’ experience in designing and operating GIS systems in urban water/ sanitation or related sector. She/he should have good communication skills and be able to assist in the capacity building and training program.

a. Prepare GIS based maps required for sub-component of the sewerage system;

b. Assist the consultant team in preparing and analyzing the GIS database and maps;

c. Provide GIS material for presentation purposes; d. Develop and deliver on the job training to KWASA

staff; and e. Assist in any other task assigned by the

supervising consultants as per requirement

ADB = Asian Development Bank, COVID-19 = coronavirus disease, GIS = geographic information system, KSSDP = Khulna Sewerage System Development Project, KWASA = Khulna Sewerage System Development Project, PCR = project completion report, PMSC = project management and supervision consultant, PMU = project management unit, QPR = quarterly progress report, TOR = terms of reference 15. In addition to professional inputs shown above, support from Non-Key Expert staffs such as Junior Engineer, Surveyors, CAD Operators, Office Manager, Accountant and Office Assistant is anticipated to be required as given in the below.

SL. Title of Expert Require Qualification No. of Expert

(National) Total Person-

Month 01 Surveyors

(Technical-1) B.Sc. in civil engineering with 2 years’ experience or Diploma in Civil Engineering with 5 years of professional experience

01 20

02 Surveyors (Technical-2)

B.Sc. in civil engineering with 2 years’ experience or Diploma in Civil

01 20

Appendix 6 101

Engineering with 5 years of professional experience

03 Community Mobilizer

The expert will be a Graduate in Social Science/Relevant discipline with at least 5 years of experience in implementation of awareness building activities with orientation on social and gender development. The expert will prepare detailed plans and implement the gender sensitive public awareness campaign on water, sanitation and hygiene and the sewage management system of the project. He / She will report to the Community Development Organizer to implement the project activities. He/She will work under the guidance of Sr. Community Mobilizer for awareness building activities and of the Social Safeguards team for resettlement related work.

05 180

04 CAD Operator Diploma in civil engineering with 8 years of professional experience and 5 years as CAD technician

02 54

05 Office Manager Bachelor’s degree in any discipline with 8 years of professional experience and 5 years as construction supervision project management

01 48

06 Accountant Bachelor’s degree in accounting or related subject with 8 years of professional experience and accounting under engineering consulting/construction firm

01 48

07 Computer operator

Bachelor’s degree in related subject with 5 years of professional experience and computer operation

01 48

08 Office assistant SSC pass. 02 96 Total 14 514

CAD = computer-aided design, SSC = Staff Selection Commission 16. The list of deliverables, which the Consultant is expected to producing and corresponding time schedule is outlined in the table below.

Sl. Deliverable Month of Delivery Summary of Contents No. of Copies (i) Inception

report Within 30 days of mobilization.

Initial findings, detailed approach and methodology, detailed work plan.

5 Copies

(ii) Monthly report Every month Describe briefly and concisely all activities and progress for the previous month by the 07th day of each month. Problems encountered or anticipated will be clearly stated, together with actions to be taken or recommendations on remedial measures for correction. Also indicates the work to be performed during the coming month.

5 Copies

102 Appendix 6

Sl. Deliverable Month of Delivery Summary of Contents No. of Copies (iii) Quarterly

report Every quarter Comparative statement of target vs.

achievement, examination of major problems and issues, achievement of development objectives and recommended actions.

5 Copies

(iv) O&M manual Within 18 months Description of O&M procedure highlighting the key issues.

30 copies

(v) Water supply scheme for the next phase.

Within 32 months Design criteria, detail design, technical specification, cost estimate, Water supply project having outline design and specification and investment cost.

5 copies

(vi) Sewerage scheme for next phase

Within 35 months Design criteria, detail design, technical specification, cost estimate, Water supply project having design and specification and investment cost.

5 copies

(vii) Report on institutional development

Within 40 months Institutional reform/outline, capacity building, public communication/ awareness mechanism, strategic plan on PPP, and inclusive sanitation plan.

5 Copies

(viii) Report on financial management/accounting system

Within 36 months Financial management and accounting system

5 Copies for each package

(ix) Draft final report

Within 45 months Comprehensive analysis of task done as per TOR.

10 Copies

O&M = operations and maintenance, PPP = public-private partnership, TOR = terms of reference

Appendix 7 103

GRIEVANCE REDRESS MECHANISM

A. Common Grievance Redress Mechanism (GRM)

1. A common grievance redress mechanism (GRM) will be put in place to receive, evaluate, and facilitate the resolution of social, environmental or any other project related grievances. The GRM will aim to provide a time-bound and transparent mechanism to voice and resolve social and environmental concerns linked to the project. The GRM described below has been developed in consultation with stakeholders. Public awareness campaign will be conducted to ensure that awareness on the project and its grievance redress procedures is generated and shared with affected persons and other stakeholders. The campaign will ensure that the poor, vulnerable and others are made aware of.

2. The GRM provides an accessible, inclusive, gender-sensitive and culturally appropriate platform for receiving and facilitating resolution of affected persons' grievances related to the project. The multi-tier GRM for the project is outlined below, each tier having time-bound schedules and with responsible persons identified to address grievances and seek appropriate persons’ advice at each stage, as required. Public awareness campaigns will ensure that awareness on grievance redress procedures is generated through the campaign. The Environmental and Social Safeguard Officer of the project management unit (PMU) will have the overall responsibility for timely grievance redress on environmental and social safeguards issues.

3. Who can complain: A complaint may be registered by stakeholders who may be, “directly, indirectly, materially, and adversely” affected by the project. Any other representative can register a complaint on behalf of the affected person/s or any stakeholder by, provided that he or she identifies the affected person/sand includes evidence of the authority to act on their behalf. 4. What the Grievance/Complain should contain: Any concerns pertaining to safeguard compliance - environment, involuntary resettlement, and indigenous people, design related issues, compensation, service delivery or any other issues or concerns related to the project. The complaint must contain name, date, address/contact details of the complainant, location of the problem area, along with the problem. Sample grievance registration form is included in the initial environmental examination report and resettlement plan of the project.

5. Where and How to file a Complaint: The contractor’s site office will be the primary point for receiving and lodging any complaint. Apart from that, Grievances/ suggestions from affected persons can be dropped into suggestion boxes or conveyed through phone or e-mails. Affected Persons or any complainant will also be able to register grievances on social, environmental or other related issues, personally to the Grievance Redress Committee (GRC). The Social Safeguard Officer (SSO) and designated official will be able to correctly interpret/record verbal grievances of non-literate persons and those received over telephone. The concerned Executive Engineers/ contractor’s site engineer, Environment Health and Safety (EHS) Officer or any designated person from the Contractor’s side will monitor these grievance register books and if possible take necessary actions to redress minor complaints with intimation to the complainant as well as to the SSO at PMU. The time period to resolve any grievances at different level of GRC has been discussed below.

6. Documentation: Documentation of the complaints is important and must contain name of the complainant, date of receipt of the complaint, address/contact details of the person, location of the problem area, and how the problem was resolved. SSO at PMU with the support of Social

104 Appendix 7

Safeguard Specialist, PMSC will have the overall responsibility for timely grievance redress, and for registration of grievances, related disclosure, and communication with the aggrieved party. All the documents made available to the public at the community level (at ward offices) and will include information on the contact number, address and contact person for registering grievances, and will be disseminated throughout the project area by the PMU with the support of project consultants.

7. Grievance/Problem Redress through Participatory Process: Efforts must be made by the PMU to resolve problems and conflicts amicably through participatory process with the community and relevant local government. In case of grievances that are immediate and urgent in the perception of the complainant, the Contractor and supervision/field support personnel from the project consultants (PMSC/IADC) will provide the most easily accessible or first level of contact for the quick resolution of grievances. Contact phone numbers and names of the concerned staff and contractors will be posted at all construction sites at visible locations.

8. Grievance Redressal Committee: In pursuance of Asian Development Bank (ADB) Guideline, an independent GRC has to be established under KWASA to address the grievance of persons affected due to implementation of sub- projects under ADB-assisted projects. The composition of the GRC is provided in Table A7.1 below:

Table A7.1: Composition of Grievance Redressal Cell

Level 1: Site level GRC Level 2: Central GRC Level 3: Apex GRC • Social Safeguard Officer,

EHS Officer and Social Supervisor of Contractor

• Contractor’s site engineer • Site Engineer, KWASA • CMA, PMU

• Deputy Managing Director, KWASA – Convener

• Project Director, KWASA – Member

• Executive Engineer, KWASA – Member

• Assistant Engineer, KWASA – Member

• Project Director, KWASA – Convener

• Respective Ward Councilor, Khulna City Corporation – Member

• Representative from Affected Persons –Member

• Respective Union Paraisad Chairman/Councilor- Member

• Assistant Engineer, KWASA PMU = project management unit, WASA = Water Supply and Sewerage Authority

9. Grievance Redress Process and Timeframe:

(i) 1st level grievance: In case of grievances that are immediate and urgent in the

perception of the complainant, he/she can first register their complaint with the Contractor’s Site Engineer. Complaints and grievances will be heard by the SSO, EHS Officer/social supervisor of Contractor or CMA, PMU. The grievance will need to be resolved within 14 days from the date of receipt of the complaint. If the grievance cannot be addressed at level 1 then it should be escalated to second level. The affected person can approach the GRC.

(ii) 2nd level grievance: All grievances that cannot be redressed at first level within 14

days will be brought to the notice of Deputy Managing Director, Khulna WASA who is also the convener of the 2nd level GRC by the SSO. The 2nd level GRC comprising of Project Director, Executive Engineer, KWASA will try to resolve the complaints/ grievances raised by the complainant, facilitated by the SSO within a time period of 21 days from the date of receipt of the complaint at the 2nd level. If

Appendix 7 105

the grievance cannot be addressed at 2nd level, then it should be escalated to third level. affected person or the complainant can approach the 2nd tier directly also.

(iii) 3rd level grievance: All the grievances that cannot be not addressed at 2ndlevel within in 21 days of receipt will be brought to the notice of the Apex Grievance Redressal Committee (GRC). The Apex GRC will meet twice a month (based on grievances launched with the Apex GRC) and determine the merit of each grievances brought to the committee. The GRC will resolve the grievance within 14 days of receiving the complaint at the 3rd level. The Social Safeguard Officer will communicate all decisions taken by the GRC to the complainant.

10. The process of the GRM is given in Figure A7.1.

Figure A7.1: Grievance Redressal Mechanism

11. In case of any inter-departmental or inter-jurisdictional coordination required for resolution of specific grievances, the PMU will refer the matter directly to the Deputy Managing Director, Khulna WASA for inter-departmental coordination and resolution. The project GRM notwithstanding, an aggrieved person shall have access to the country's legal system at any stage and accessing the country's legal system can run parallel to accessing the GRM and is not dependent on the negative outcome of the GRM. 12. Periodic community meetings with affected communities to understand their concerns and help them through the process of grievance redress (including translation from local

1st Level Grievanc

e

Affected Person

2nd Level Grievanc

e

3rd Level Grievanc

e

Level 1: Site level GRC Social Safeguard Officer of PMU, Social supervisor of Contractor, Contractor’s site engineer; Site Engineer, KWASA, CMA, PMU

Level 2: Central GRC Deputy Managing Director, Khulna WASA Project Director, Khulna WASA, Executive Engineer, Khulna WASA; Assistant Engineer, Khulna WASA

Level 3: Apex GRC Project Director, Khulna WASA, Respective Ward Councilor, Khulna City Corporation, Representative from Affected Persons –Member, Respective Union Paraisad Chairman/ Councilor, Assistant Engineer

NO

NO

Court of Law

NO

Grievance Redressed &

Record Keeping

Yes Within 14

Days

Grievance Redressed &

Record Keeping

Yes Within 21

Days

Grievance Redressed &

Record Keeping

Yes Within 14 Days

106 Appendix 7

dialect/language, recording and registering grievances of non-literate affected persons and explaining the process of grievance redress) will be conducted if required. The above Grievance Redress Process will be discussed with the different stakeholders during stakeholder consultation meetings. These meetings will be held with affected persons and community members (beneficiaries) and the concerned Municipal Ward Councilors where civil works are proposed. The process and timelines for grievance redress and contact details of the persons responsible for grievance redress will be shared in the stakeholder meetings. Action taken in respect of all complaints will be communicated to the complainant by letter, over phone or e-mail or WhatsApp as the case may be.

13. Consultation Arrangements for GRM: This will include group meetings and discussions with affected persons, to be announced in advance and conducted at the time of day agreed on with affected persons and conducted to address general/common grievances; and if required with the SSO of PMU and Social Safeguard Specialist of PMSC for one-to-one consultations. Non-literate affected persons/ vulnerable affected persons will be assisted to understand the grievance redress process. At the site office the of contractor, EHS or Safeguard personnel and/ or CMA, PMU will assist the non-literate affected persons to register complaints and with follow-up actions at different stages in the process. 14. Documentation and Record keeping: The contractor will maintain grievance registers at each work site. All GRC documents will be maintained by PMU. Record of all complaints received, and action taken will be maintained at both at the field level and the PMU. This information will be available for review and verification by supervision consultants and ADB or any third party. KWASA office will act as secretariat to the GRC. All the grievance records will be updated regularly and easily accessible on-site. 15. Information dissemination methods of the GRM: GRC procedures and operational rules will be publicized widely through community meeting and pamphlets in Bengali so that the affected persons are aware of their rights and obligation, and procedures of grievance redress. 16. Grievances received, and responses provided will be documented and reported back to the affected persons. The number of grievances recorded and resolved, and the outcomes will be displayed/disclosed in the Central Complaint Cell at KWASA and web. The phone number where grievances are to be recorded will be prominently displayed at the construction sites.

17. Leaflet containing information of the project along with grievance redress, the address and contact numbers where the affected persons can go and register their complaints have been distributed to the affected persons. 18. Costs: All costs involved in resolving the complaints (meetings, consultations, communication and reporting/information dissemination) will be borne by the PMU. 19. ADB Accountability Mechanism: If the established GRM is not in a position to resolve the issue, the affected person may use the ADB Accountability Mechanism through directly contacting (in writing) the Complaint Receiving Officer (CRO) at ADB headquarters. Before submitting a complaint to the Accountability Mechanism, it is recommended that affected people make a good faith effort to resolve their problems by working with the concerned ADB operations department (in this case, the Bangladesh Resident Mission). Only after doing that, and if they are still dissatisfied, they could approach the Accountability Mechanism. The ADB Accountability Mechanism information will be included in the project-relevant information to be distributed to the affected communities, as part of the project GRM.

Appendix 8 107

QUATERLY PROGRESS REPORT CHECKLIST FOR ENVIRONMENTAL SAFEGUARDS 1

Activity Yes / No Remarks (If Answer Is No)

A. For subproject packages under bidding 1. IEEs cleared by ADB? 2. IEEs/EMPs included in the bidding documents? 3. Are there changes in the scope of work of the cleared IEEs?

4. Core labor standards and environment, health and safety (EHS) incorporated in Section 8 (or appropriate section) of the bid documents?

5. BOQ line item includes EMP requirements? 6. IEE disclosed in form and language understood by

stakeholders and affected persons (APs)?

For subproject packages with contracts awarded (no works yet)

1. All statutory clearances/permits obtained? 2. Each contractor appointed EHS and/or safety officer? 3. Baseline regarding condition of roads, agricultural land and

other infrastructure prior to start of transportation of materials and construction has been recorded?

4. Contractor has established tie-ups with local hospitals/clinics for emergencies onsite?

5. For DBO packages, detailed design completed and updated IEE submitted to ADB?

6. For civil works packages, site-specific EMP submitted to ADB?

For subproject packages with contracts awarded and works on-going 1. Contractors have appointed EHS and/or safety officer onsite

per subproject package?

2. For sewer network packages, contractors have appointed traffic management staff onsite per subproject package?

3. Site-specific EMP posted on site? 4. Contractors’ records of accidents / incidents submitted to

PMU on a monthly basis?

5. Contractors provided PMU with a notification/incident report of any accident(s) within 24 hours of its occurrence?

6. Reports of complaints/grievances reported monthly to PMU?

7. Records of information disclosure/consultations submitted by Contractors to PMU monthly?

8. Records of site inspection by Contractors submitted to PMU monthly?

1 This checklist should provide the Project’s general compliance to environment safeguards during the reporting period.

The indicators are aligned with project loan agreement, PAM, IEEs and ADB’s Sustainable Development Safeguards Division Safeguards project performance rating. The detailed environmental safeguards compliance status should be provided in the semi-annual environmental monitoring report.

108 Appendix 9

QUATERLY PROGRESS REPORT CHECKLIST FOR SOCIAL SAFEGUARDS 1

Activity Yes / No Remarks (If Answer Is No)

A. For subproject packages under bidding 1. RPs/DDRs/IPPs cleared by ADB? 2. RPs/DDRs/IPPs included in the bidding

documents?

3. RP includes cut-off-date? 4. Are there changes in the scope of work of the

cleared RPs/DDRs/IPPs?

5. ID cards prepared for APs and distributed? 6. Are specific actions identified in RP/IPP, if any,

that are required of the contractor for impact avoidance or mitigation, incorporated in bid documents?

7. BOQ line item includes any requirements specified in RP/DDR/IPP?

8. RP/IPP disclosed in form and language understood by stakeholders and affected persons (APs)?

9. Consultations with stakeholders and affected persons/IP held?

10. Is the GRM in place and GRC constituted? For subproject packages with contracts awarded (no works yet)

1. All NOCs/land transfers obtained? 2. Agreement of sale/transfer and third-party

certificate obtained for negotiated settlement/voluntary donation?

3. All compensation paid in full? 4. Detailed measurement survey conducted jointly

by contractor, project consultant and PMU/PIU?

5. All community concerns and grievances related to specific sites mitigated through consultations or agreed actions?

6. All common property resources (CPR, including small shrines, trees of worship etc.) identified and plan for continued access prepared?

7. Each contractor designated social safeguards and grievance registration officer?

8. For DBO packages, detailed design completed and updated RP/DDR/IPP submitted to ADB?

9. For DBO packages, serial no. 1-7 accomplished? For subproject packages with contracts awarded and works on-going

1. Contractors have appointed social safeguards and grievance registration officer per subproject package?

2. Site-specific signages with date of start and end of construction and contact number for

1 This checklist should provide the Project’s general compliance to social safeguards during the reporting period. The

indicators are aligned with project loan agreement, PAM, RPs and ADB’s Sustainable Development Safeguards Division Safeguards project performance rating. The detailed social safeguards compliance status should be provided in the semi-annual social monitoring report.

Appendix 9 109

Activity Yes / No Remarks (If Answer Is No)

grievances and safety instructions for general public posted onsite?

3. Grievance registration register available at each work site?

4. Site fencing/protection works etc. undertaken before start of physical construction work?

5. Contractors provided PMU/PIU with a notification/incident report of any grievance or unanticipated impact within 24 hours?

6. Reports of complaints/grievances reported monthly to PMU?

7. Records of information disclosure/consultations submitted by PIUs to PMU monthly?

8. Records of site inspection by PIU and DSC submitted to PMU monthly?

9. Records of site inspection by PMC submitted to PMU monthly?

110 Appendix 10

SEMI-ANNUAL ENVIRONMENTAL MONITORING REPORT OUTLINE I. Introduction

• Overall project description and objectives

• Environmental category as per ADB Safeguard Policy Statement, 2009

II. Project Safeguards Team • Identify the role/s of Safeguards Team including schedule of on-site verification of reports

submitted by consultants and contractors.

Name Designation/Office Email Address Contact Number 1. PMU 2. PIUs 3. Consultants

III. Overall project and subproject/package progress and status • Indicate (i) status of design – preliminary design or final design, (ii) status of implementation -

under bidding, contract awarded but no works yet, contract awarded with works, civil works completed, or O&M

Package Number

Components/List of Works

Type of Contract (specify if DBO, DB or civil

works)

Status of Implementation (specify if Preliminary

Design, Detailed Design, On-going Construction,

Completed Works, or O&M phase)1

Contract Status (specify if under bidding

or contract

awarded)

If On-going Construction

%Physical Progress

Expected Completion

Date

• For package with awarded contract, provide name/s and contact details of contractor/s’

nodal person/s for environmental safeguards.

Package-wise Contractor/s’ Nodal Persons for Environmental Safeguards Package Name IEE Cleared by

ADB (provide date)

Contractor HSE Nodal Person

Email Address Contact Number

1 If on-going construction, include %physical progress and expected date of completion

Appendix 10 111

IV. Status of IEE per Subproject/Package

• Provide status of updated/final IEE2 per package.

Package-wise Implementation Status Package Number

Final IEE based on Detailed Design Site-specific EMP (or Construction EMP)

approved by Project Director?3 (Yes/No)

Remarks Not yet

due (detailed

design not yet

completed)

Submitted to ADB (provide date of

submission)

Disclosed on

project website (provide

link)

Final IEE provided to Contractor/s

(Yes/No)

V. Compliance status with National/State/Local statutory environmental requirements4

Package No.

Statutory Environmental Requirements5

Status of Compliance

(Specify if obtained, submitted and

awaiting approval, application not yet

submitted )

Validity Date(s)

(if already obtained)

Action Required

Specific Conditions that

will require environmental

monitoring6

VI. Compliance status with environmental loan covenants

Schedule No. and Item (see Project Loan Agreement and list

provisions relevant to environmental

safeguards, core labor standards and

occupational health and safety)

Covenant Status of Compliance Action Required

VII. Compliance status with the environmental management plan (refer to EMP tables in

approved IEE/s) • Confirm in IEE/s if contractors are required to submit site-specific EMP

(SEMP)/construction EMPs (CEMP). If not, describe the methodology of monitoring each package under implementation.

2 IEE prepared based on preliminary design and cleared by ADB with condition that updated/Final IEE based on

detailed design will be submitted. 3 Works will not be allowed until SEMP/CEMP is approved by project implementation unit or project management unit. 4 All statutory clearance/s, no-objection certificates, permit/s, etc. should be obtained prior to award of contract/s. Attach

as appendix all clearance obtained during the reporting period. If already reported, specify in the “remarks” column. 5 Specify statutory requirements: environmental clearance? Permit/consent to establish? Forest clearance?

Workers/Labor permit, etc. 6 Example: Environmental Clearance requires ambient air quality monitoring, Forest Clearance/Tree-cutting Permit

requires 2 trees for every tree, etc.

112 Appendix 10

• Provide over-all compliance of the contractors with SEMP/CEMP. This should be

supported by contractors’ monthly monitoring reports to PIU(s) and/or verification reports of PIU(s) or project consultants. Include as appendix supporting documents such as signed monthly environmental site inspection reports prepared by consultants and/or contractors.

Overall Compliance with Site-Specific Environmental Management Plan/Construction Environmental Management Plan

Package No. Status of SEMP/CEMP Implementation (Excellent/ Satisfactory/ Partially Satisfactory/ Below

Satisfactory)

Action Proposed and Additional Measures Required

• Provide description based on site observations and records:

o Confirm if any dust was noted to escape the site boundaries and identify dust suppression techniques followed for site/s.

o Identify muddy water was escaping site boundaries or muddy tracks were seen on adjacent roads.

o Identify type of erosion and sediment control measures installed on site/s, condition of erosion and sediment control measures including if these were intact following heavy rain;

o Identify designated areas for concrete works, chemical storage, construction materials, and refueling. Attach photographs of each area.

o Confirm spill kits on site and site procedure for handling emergencies. o Identify any chemical stored on site and provide information on storage condition.

Attach photograph. o Describe management of stockpiles in each work site (construction materials,

excavated soils, spoils, etc.). Provide photographs. o Describe management of solid and liquid wastes on-site (quantity generated,

transport, storage and disposal). Provide photographs. o Provide information on barricades, signages, and on-site boards. Provide

photographs. o Provide information on workers labor camp(s). Provide photographs. o Provide information on work-related accidents and incidents. Describe actions

implemented. o Provide information on if there are any activities being undertaken out of working hours

and how that is being managed.

• Provide list of trainings on environmental safeguards, core labor standards, and OSH conducted during the reporting period. Include ADB-organized workshop, trainings, seminars, etc.)

Trainings, Workshops and Seminars Conducted

Date Topic Conducted by No. of Participants

(Total)

No. of Participants

(Female)

Remarks

Appendix 10 113

• Provide the monitoring results as per the parameters outlined in the approved EMP (or

site-specific EMP/construction EMP when applicable).

Summary of Environmental Monitoring Activities (for the Reporting Period)7 Impacts (List from

SEMP/CEMP)

Mitigation Measures (List from

SEMP/CEMP)

Parameters Monitored (As identified in the SEMP/CEMP)

Method of Monitoring

(Visual, Actual

Sampling, etc.)

Location of Monitoring

(Provide GPS Coordinates)8

Date of Monitoring Conducted

Person Who

Conducted the

Monitoring

Design Phase Pre-Construction Phase Construction Phase Operational Phase

VIII. Monitoring of environmental IMPACTS on PROJECT SURROUNDINGS • Confirm records of pre-work condition of roads, agricultural land or other infrastructure prior

to starting to transport materials and construction.

Package No. Status of Pre-Work Conditions

(Recorded / Not Recorded)

Baseline Environmental Conditions (air, water,

noise) Documented (Yes / No)

Action Proposed and Additional Measures

Required

• Provide information on monitoring activities conducted during reporting period. If not

conducted, provide justification. Compare results with baseline and internationally recognized standards.9

Air Quality Monitoring Results

Site No. Date of Testing Site Location (Provide GPS Coordinates)10

Parameters (as required by statutory clearances or as mentioned in the IEE)

Remarks

7 Attach Laboratory Results and Sampling Map/Locations 8 If GPS coordinate is not available, provide landmark(s) and/or chainage. 9 ADB Safeguard Policy Statement (SPS) Appendix 1, para 33: During the design, construction, and operation of the

project the borrower/client will apply pollution prevention and control technologies and practices consistent with international good practice, as reflected in internationally recognized standards such as the World Bank Group’s Environment, Health and Safety Guidelines. These standards contain performance levels and measures that are normally acceptable and applicable to projects. When host country regulations differ from these levels and measures, the borrower/client will achieve whichever is more stringent. If less stringent levels or measures are appropriate in view of specific project circumstances, the borrower/client will provide full and detailed justification for any proposed alternatives that are consistent with the requirements presented in the SPS.

10 If GPS coordinate is not available, provide landmark(s) and/or chainage.

114 Appendix 10

PM10 µg/m3

SO2 µg/m3

NO2 µg/m3

Water Quality Monitoring Results

Site No.

Date of Sampling

Site Location

Parameters (as required by statutory clearances or as mentioned in the IEE)

Remarks

pH Conductivity µS/cm

BOD mg/L

TSS mg/L

TN mg/L

TP mg/L

Noise Quality Monitoring Results

Site No. Date of Testing

Site Location

LAeq (dBA) (as required by statutory clearances or as mentioned in the IEE)

Remarks

Day Time Nighttime

INFORMATION DISCLOSURE AND CONSULTATIONS

• Confirm PMU/PIU/contractors provide project-related information to stakeholders, communities and/or affected people before and during construction works.11

• Provide information on consultations conducted during reporting period such dates, topics discussed, type of consultation, issues/concerns raised, safeguards team member present. Attach minutes of meetings (ensure English translation is provided), attendance sheet, and photos.

Date of

Consultation Location Number of

Participants (specify total, male

and female)

Issues/Concerns Raised

Response to issues/concerns

Grievance Redress Mechanism

• Grievance Redress Mechanism. Provide information on establishment of grievance redress mechanism and capacity of grievance redress committee to address project-related issues/complaints. Include as appendix Notification of the GRM (package-wise if applicable).

• Complaints Received during the Reporting Period. Provide information on number, nature, and resolution of complaints received during reporting period. Attach records as per GRM in the approved IEE. Identify safeguards team member/s involved in the GRM process. Attach minutes of meetings (ensure English translation is provided).

11 Check EMP requirement on information disclosure. At a minimum, PIU thru the contractor should notify

communities/affected persons/sensitive receptors 7 days and again 1 day before start of works.

Appendix 10 115

IX. Summary of Key Issues/Concerns Identified during the reporting period and remedial actions

• Provide corrective action plan which should include all issues/concerns, actions required to be implemented, responsible entities, and target dates.

Status of Corrective Actions from Previous SEMR(s)

• Provide information on corrective actions to be implemented as reported in the previous SEMR(s). Include status of implementation of feedbacks/comments/suggestions as provided by ADB, if any.

Corrective Action Plan Status

Issues/Concerns Corrective Action Status Remarks

X. Appendixes

• Photos • Records of consultations • Copies of environmental clearances and permits (if not provided in the previous SEMR) • Environmental site inspection report (if not provided in the previous SEMR) • Other

116 Appendix 11

SEMIN-ANNUAL SOCIAL SAFEGUARDS MONITORING REPORT OUTLINE

During Project Implementation Period Following requirements of the ADB Safeguard Policy Statement (2009) and the Operations Manual section on safeguard policy (OM F1), borrowers/clients are required to establish and maintain procedures to monitor the status of implementation of safeguard plans and ensure progress is made toward the desired outcomes. For projects categorized as A or B in Involuntary Resettlement and/or Indigenous People, the Borrowers/clients are required to submit semiannual monitoring reports for ADB review. The level of detail and comprehensiveness of a monitoring report is commensurate with the complexity and significance of social safeguards impacts (IR and IP) and with the current status of project implementation phase. This outline can be used for periodic monitoring report (semiannual) and RP/IPP completion report to start the civil works in the impacted areas. A safeguard monitoring report may include the following elements:

A. Executive Summary This section provides a concise statement of project scope and impacts, key findings and recommended actions. B. Background of the Report and Project Description This section provides a general description of the project, including:

• Background/context of the monitoring report which includes the information on the project, project components, safeguards categorizations and general scope of the social safeguards impacts;

• Information on the implementation progress of the project activities, scope of monitoring report and requirements, reporting period, including frequency of submission and changes in project scope and adjusted safeguard measures, if applicable; and

• Summary table of identified impacts and the mitigation actions.

C. Scope of Impacts This section outlines the detail of

• Scale and scopes of the project’s safeguards impacts; • Vulnerability status of the affected people/communities; and • Entitlements matrix and other rehabilitation measures, as applicable, as described in the

approved final RP(s) /IPP(s). D. Compensation and Rehabilitation1

This section describes the process and progress of the implementation of the safeguards plan and other required activities as determined in the plan. This includes:

• Payment of the affected assets compensation, allowances, loss of incomes, etc. to the entitled persons; and

1 Depending on the status of the final detail design during the submission of the report this activity might not yet started.

Provide the information on the expected date the activity to be conducted instead.

Appendix 11 117

• Provisions of other types of entitlement as described in the matrix and implementation of livelihood rehabilitation activities as determined in the plan.

Quantitative as well as qualitative results of the monitoring parameters, as agreed in the plan, should be provided. E. Public participation and consultation

This section describes public participation and consultations activities during the project implementation as agreed in the plan. This includes final consultations with APs during RP finalization after the completion of detail design; the numbers of activities conducted; issues raised during consultations and responses provided by the project team, implementing NGOs, project supervision consultants, contractors, etc. F. Grievance Redress Mechanism (GRM)

This section described the implementation of project GRM as design in the approved RP/IPP. This includes evaluations of its effectiveness, procedures, complaints receive, timeliness to resolve issues/ complaints and resources provided to solve the complaints. Special attentions should be given if there are complaints received from the affected people or communities. G. Institutional Arrangement

This section describes the actual implementation, or any adjustment made to the institutional arrangement for managing the social safeguards issues in the projects. This includes the establishment of safeguards unit/ team and appointment of staff in the EA/IA; implementation of the GRM and its committee; supervision and coordination between institutions involved in the management and monitoring of safeguards issues, the roles of NGO and women’s groups in the monitoring and implementation of the plan, if any. H. Monitoring Results – Findings

This section describes the summary and key findings of the monitoring activities. The results are compared against previously established benchmarks and compliance status (e.g., adequacy of IR compensation rates and timeliness of payments, adequacy and timeliness of IR rehabilitation measures including serviced housing sites, house reconstruction, livelihood support measures, and training; budget for implementing EMP, RP, or IPP, timeliness and adequacy of capacity building, etc.). It also compared against the objectives of safeguards or desired outcomes documented (e.g. IR impacts avoided or minimized; livelihood restored or enhanced; IP’s identity, human right, livelihood systems and cultural uniqueness fully respected; IP not suffer adverse impacts, environmental impacts avoided or minimized, etc.). For FI projects this includes the effectiveness of the Environmental and Social Management System (ESMS) managed by the FI and its participating institutions 2. If noncompliance or any major gaps identified, include the recommendation of corrective action plan. I. Compliance Status

This section will summarize the compliance status of the project activities with the loan covenants, ADB SPS (2009) on SR 2 and the approved final RP(s).

2 Specific for the FI projects, external agency may be required to conduct an audit of the project ESMS.

118 Appendix 11

J. Follow up Actions, Recommendation and Disclosure

This section describes recommendations and further actions or items to focus on for the remaining monitoring period. It also includes lesson learned for improvement for future safeguards monitoring activities. Disclosure dates of the monitoring report to the affected communities should also be included. A time-bound summary table for required actions should be included. Appendix 1

i. List of Affected Persons and Entitlements ii. Summary of RP/IPP with entitlement matrix

Appendix 2

i. Copies of AP’s certification of payment (signed by the APs) ii. Summary of minutes of meetings during public consultations iii. Summary of complaints received and solution status