Project Number: 39399 Loan Number: XXXXX February 2014

Proposed Loan for Additional Financing and Administration of Grant for Additional Financing Nepal: South Asia Tourism Infrastructure Development Project

Project Administration Manual

Contents ABBREVIATIONS I I. PROJECT DESCRIPTION 1

A. Project’s Rationale, Location and Beneficiaries 1

B. Impact and Outcome 3

C. Outputs 4

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 9

IV. COSTS AND FINANCING 10

A. Detailed Cost Estimates by Expenditure Category 11

B. Allocation and Withdrawal of Loan and Grant Proceeds 12

C. Detailed Cost Estimates by Financier (corresponding to Table A5.7: Financing Plan, by Expenditure Accounts, for Nepal) 14

D. Cost Summary by Outputs/Components (corresponding to Table A5.2: Expenditure Accounts, by Components, for Nepal) 15

E. Detailed Cost Estimates by Year 16

F. Contract and Disbursement S-curve 16

G. Fund Flow Diagram 19

V. FINANCIAL MANAGEMENT 20

A. Financial Management Assessment 20

B. Disbursement 21

C. Accounting 22

D. Auditing 22

VI. PROCUREMENT AND CONSULTING SERVICES 23

A. Advance Contracting and Retroactive Financing 23

B. Procurement of Goods, Works and Consulting Services 23

C. Procurement Plan 24

D. Consultant's Terms of Reference 29

VII. SAFEGUARDS 54

VIII. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 56

A. Project Design and Monitoring Framework 56

B. Monitoring 56

C. Evaluation 57

D. Reporting 57

E. Stakeholder Communication Strategy 58

IX. ANTICORRUPTION POLICY 58

X. ACCOUNTABILITY MECHANISM 58

XI. RECORD OF PAM CHANGES 59

ANNEX 1 DESIGN AND MONITORING FRAMEWORK 60 ANNEX 2 SUPERVISION CONSULTANT INPUTS FOR THE ADDITIONAL FINANCING 65 ANNEX 3 PROJECT MANAGEMENT CONSULTANT INPUTS FOR THE ADDITIONAL

FINANCING 66

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Ministry of Culture, Tourism and Civil Aviation is wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. The implementing agencies are the Civil Aviation Authority of Nepal (CAAN) and the Lumbini Development Trust (LDT) responsible for implementing their respective projects. ADB staff is responsible to support implementation including compliance by the executing and implementing agencies of their 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 agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail.

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

ABBREVIATIONS

ACEF – Asian Clean Energy Fund ADB – Asian Development Bank ADF – Asian Development Fund CAAN CPTS

– –

Civil Aviation Authority of Nepal clean public transport services

DOT – Department of Tourism DSC – design and supervision consultant EA – executing agency EARP – environmental assessment and review procedure EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan FIRR – financial internal rate of return GBA – Gautam Buddha Airport GDP – gross domestic product IA – implementing agency IEE – initial environmental examination LDT – Lumbini Development Trust MOCTCA – Ministry of Culture, Tourism and Civil Aviation MTR – midterm review NGO – nongovernment organization NRB – Nepal Rastra Bank O&M – operation and maintenance OFID – OPEC Fund for International Development PAM – Project Administration Manual PCU – project coordination unit PMIU – project management and implementation unit RP – resettlement plan RRP – Report and Recommendation of the President TIA – Tribhuvan International Airport UNESCO – United Nations Educational, Scientific and Cultural Organization

I. PROJECT DESCRIPTION

A. Project’s Rationale, Location and Beneficiaries

1. The South Asia Tourism Infrastructure Development Project was approved on 16 November 2009 to develop and improve tourism-related infrastructure in Bangladesh, India, and Nepal.1 It aims to support a future pattern of tourism in the South Asia subregion, envisaging a number of multi-country circuits of nature and culture-based sites that are interlinked.2 The impact is integrated pattern for future growth of tourism in South Asia, enhancing contribution to sustainable and inclusive growth in the subregion. 2. In Nepal, the targeted outcome was developing Lumbini, the Birthplace of Lord Buddha, inscribed on the UNESCO’s World Heritage List, as an attractive culture-based tourism destination.3 The key output necessary was upgrading of the Gautam Buddha Airport (GBA), situated 20 kilometers east of Lumbini, in order to provide air connectivity for international tourists. In 2012, most of the 795,800 recorded visitors to Lumbini traveled by road from points in Nepal, and from India.4 Presently, GBA is only available for domestic flights since facilities for processing international passengers are not available, nor is the runway and apron suitable for accommodating international flights by medium jet aircrafts.5 3. Upgrading GBA with international access will enable airlines to establish direct air services from key countries generating a majority number of annual visitors to Lumbini, including India, Sri Lanka, Thailand, and Myanmar, and could overtime increase the number of visitors from countries further from Nepal, such as China, Korea and Japan.6 The availability for direct air access into GBA could also help attract foreign tourists visiting other Buddhist-related sites in India following the “Footsteps of Lord Buddha” tourist circuit.7 If unconstrained in terms of airport infrastructure capacity, the total annual number of passengers at GBA is forecasted to reach approximately 1 million by 2030, including estimated 0.8 million international visitors to Lumbini.8 To help further enhance Lumbini as an attractive tourist destination, additional outputs of the project included to enhance visitor environment and services, foster community

1 ADB 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loans, Asian

Development Fund Grant, and Administration of Loan for People's Republic of Bangladesh, India, and Nepal: South Asia Tourism Infrastructure Development Project. Manila (ADF Loan 2580 of $12 million for Bangladesh, OCR Loan 2578 of $20 million for India, and ADF Loan 2579 of $12.75 million and Grant of $12.75 million for Nepal, approved on 16 November).

2 A multi-country circuit is defined as a route on which more than one or two major destinations are located in more

than one country. In this way, a tourist who enters to a destination in one country would be motivated to visit other destinations in the same route located in another country, hence resulting in increased arrivals to all destinations in more than one country.

3 The World Heritage List includes 981 properties forming part of the cultural and natural heritage which the World

Heritage Committee considers as having outstanding universal value. 4 Nepalese form the largest proportion of visitors to Lumbini (almost 68%) and the most numerous foreign visitors

are from India (120,584 in 2012). Many of Indian visitors are currently traveling by air to nearby points in India, such as Kushinagar, and are then transported by tour bus to Lumbini, a road trip of 150km each way.

5 Code C aircraft such as the A320 and B737 types.

6 Among total foreign Lumbini visitors of about 256,584 in 2012, the key origins were India (47.0%), Sri Lanka

(20.5%), Thailand (11.1%), and Myanmar (6.9%). Other origins were People’s Republic of China (3.4%), Republic of Korea (2.0%), Viet Nam (1.4%), Netherlands (0.8%), and Japan (0.7%), and all other countries (6.2%).

7 The Footsteps of Lord Buddha circuit consists of Lumbin in Nepal, and Bodhgaya, Sarnath, and Kushinagar in

India. 8 In 2012, the level of aircraft activity at GBA amounted to 4,172 annual aircraft movements, or an average of 5

flights per day, which carried a total of almost 122,000 annual passengers.

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participation on livelihood opportunities that the local people can access, and improve project management capacity of related government agencies.9 4. The financing agreement for the Nepal component (the current project), providing a grant and a loan, each equivalent to $12.75 from ADB’s Special Funds resources, was signed on 25 May 2010, and declared effective on 3 September 2010. In addition, the OPEC Fund for International Development (OFID) is co-financing the current project with a loan of $15.0 million, administered by ADB. 5. The current project is expected to incur cost overrun, as the updated cost for upgrading GBA, as originally envisaged, exceeds the project appraisal estimate by 80%, mainly due to price escalation for key construction commodities and equipment between appraisal period in 2008 and detail engineering design in 2013.10 More substantially, a change in scope is required in order to further enhance critical elements for capacity and safety, which were not envisaged under the current project. These include increasing further the length of the new runway and taxiways, overlaying the existing runway, constructing a new and more spacious international terminal, and installing advanced Navaids. These are estimated to require additional 74% of the updated cost for the original scope, or 140% of the original project appraisal estimate in 2008. 6. The additional financing will restructure the project and improve implementation as design and supervision consultant has been recruited, and procurement of civil work to scale-up GBA upgrading from the original design has been commenced. Past performance and expected improvements are summarized below:

(i) Implementation results against expected project outputs. A bid document for the main output of upgrading GBA has been completed. The bidding process for the contract has begun, with the award contingent upon ADB approval of the additional financing. A contractor has been selected to upgrade water supply and sanitation and build a new visitor center and information displays, car parks, and bus stops for the second output – improving the tourism destination environment and services in Lumbini. A consultant has been mobilized for the third output – enhance capacity, increase community participation, and improve project management.

(ii) Implementation progress. As of January 2014, with 55% of the financing period

elapsed, the cumulative contract award is $3.95 million (15.5% of available loan and grant proceeds) and cumulative disbursement is $1.92 million (7.5%). Upon award of the main contract for upgrading of GBA, the overall implementation progress is expected to improve substantially.

(iii) Safeguard compliance. Overall, the current project is in compliance with

specific assurances and environmental and social covenants stipulated in the financing agreement.

(iv) Management of risks. The main risk associated with implementation

arrangement has been mitigated satisfactorily, as the project coordination units and project management and implementation units are well established with

9 The related government agencies are the Lumbini Development Trust and Civil Aviation Authority of Nepal.

10 The base cost for upgrading of GBA, excluding contingency was estimated $32.36 million at appraisal period (mid-2008 prices), and updated in mid-2012 prices to cost about $77.63 million.

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adequate fulltime staffing. The consultant for design and supervision is mobilized and the performance is satisfactory.

(v) Project performance rating. The current project performance is rated on track.11

The restructuring of the project will expedite the award of the main contract for upgrading GBA, and the improved disbursement will help project performance to stay on track.

7. The proposed additional financing is to restructure the current project. It entails meeting cost overrun and supporting changes in project scope that lead to financing requirements exceeding the original financial allocation. It will help scale up capacity and safety improvements at GBA, providing unconstrained air connectivity to Lumbini.12 As an additional activity of the project’s component 2, ADB will administer a grant financing provided by the Asian Clean Energy Fund (ACEF) to introduce electrical vehicle-based clean public transport services for tourists and local residents in Lumbini area, providing electric power-assisted modern rickshaws, charging stations and depot, solar power supply and storage system, and rolling out clean technology based buses. It will help reduce noise and pollution currently emitted from the poorly maintained diesel buses, improving environmental quality and adding value to tourism experience.13 This PAM relates to the original loan, grant and the additional financing. 8. The benefits of restructuring and completing the current project outweigh other options such as scaling down or full cancellation.14 The restructuring is necessary in order to achieve the intended impact and outcome, and the new component to introduce clean public transport services through administration of a grant by ACEF, will help further enhance the original development objectives. The overall project remains technically feasible, economically viable, and financially sound. It is accorded high priority by the government, consistent with priorities in the civil aviation and tourism sectors as outlined in the new Three Year Plan (FY2013/14-FY2015/16). The proposed additional financing supports the strategic objective established in ADB's Nepal country partnership strategy 2013–2017 and is included in the Nepal country operations business plan 2014–2015. 15 The project meets eligibility criteria for additional financing.16 B. Impact and Outcome

9. The impact will be enhanced contribution of tourism to sustainable and inclusive growth in Nepal. The outcome will be nature and culture-based tourism destinations improved. An outcome indicator will be added on tourists’ public transport service usage, as a result of the ACEF-financed CPTS.

11

A project with a total rating score of 0.90 is on track (PAI 5.08 Revised in June 2011). The five performance indicators, equal in weight, are Technical, Procurement, Disbursement, Financial Management, and Safeguards.

12 Further upgrades could enable GBA to provide alternate access by air in case of unforeseen natural calamities at the Tribhuvan International Airport, currently the only international airport in Nepal.

13 The clean public transport services has been designed in close consideration of the UNESCO-sponsored Lumbini Master Plan.

14 Scaling down to compensate for cost overrun could lead to incomplete investment, inadequate to facilitate the safety and capacity improvements necessary in order to achieve the original development objectives.

15 ADB. 2013. Country Partnership Strategy: Nepal, 2013–2017. Manila. ADB. 2012. Country Operations Business Plan: Nepal, 2014–2015. Manila.

16 ADB. 2011. Additional Financing. Operations Manual. OM H5/BP. Manila (24 February).

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C. Outputs

10. As in the original project, the outputs will be (i) enhanced connectivity to and from Lumbini; (ii) improved community services and tourism facilities; and (iii) improved capacity in tourism development and project management. As a result of the scaling up of the GBA component and the additional financing, the performance indicators for the first two outputs have been revised. To achieve enhanced connectivity, GBA will be upgraded to operate as an international airport by 2017, rather than regional international airport in 2015. To improve the destination, the scaled-up project will aim to put electric vehicle-based CPTS for tourists and local people in Lumbini into operation by 2017, in addition to improved destination environment and infrastructure.

II. IMPLEMENTATION PLANS A. Project Readiness Activities

2013 2014 Indicative Activities Nov Dec Jan Feb Mar Apr Responsibility

PCU and PMU

PCU in MOCTCA established in Dec 2009 PMIU in LDT established in Nov 2009 PMIU in CAAN established in Nov 2009

Recruitment of Consultants

Project Management Consultant, DSC/CAAN, DSC/LDT recruited in February 2011

Airport works EIA Approved in March 2011

Resettlement

95% completed, remaining 14 absentee landlords in process in July 2013

Advance contracting actions

ADB Board approval ADB

Loan signing Government and ADB

Government legal opinion provided

Government

Government budget inclusion

Government

Loan effectiveness

Government and ADB

5

B. Overall Project Implementation Plan

Indicative Activities

Already Completed

2014 2015 2016 2017

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

A. DMF

Output 1: Enhanced Connectivity

Activity 1.1 PCU and PMIUs established

Activity 1.2 Consultants appointed

Activity 1.3 Engineering design and tender documents prepared

Activity 1.4 Contract awarded; construction commenced

Activity 1.5 Construction completed

Output 2: Improved Destination

Activity 2.1 Consultants appointed

Activity 2.2 Detailed design for infrastructure improvements prepared

Activity 2.3 Contract awarded and construction commenced

Activity 2.4 Construction completed

Output 3: Enhanced capacity, increased community participation and improved project management

Activity 3.1 NGOs recruited

Activity 3.2: Community Awareness program commenced

Activity 3.3: Capacity development of agencies and the community skills training and social mobilization programs commenced and completed

6

Activity 3.4: Cultural heritage sites master plans initiated and completed

B. Management Activities

Procurement plan, key activities to procure contract packages

Consultant selection procedures

Environment Management Plan key activities

Annual Review

Midterm review

Project completion report

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities 11. The Ministry of Culture, Tourism and Civil Aviation (MOCTCA) will remain the executing agency responsible for overall strategic guidance and management of the Project including additional financing and for ensuring compliance with loan covenants. The Civil Aviation Authority of Nepal (CAAN) will be the implementing agency (IA) of the connectivity enhance component and the Lumbini Development Trust (LDT) will be the IA of the Lumbini destination improvement component. Each IA will have full-time project manager. The Project Coordination Unit (PCU) established at MOCTCA, headed by a fulltime Project Coordinator, will be designated as a signatory for withdrawing the grant and loan funds, and will continue to be responsible for overall management of the project, including the additional financing. Project implementation organizations Management Roles and Responsibilities

• Executing Agency (EA) and Secretariat to the NSC

Ministry of Culture, Tourism and Civil Aviation (MOCTCA)

� Guides and supports the overall project implementation � Coordinates all project activities � Engages project management support consultant � Point of contact with ADB (including reporting requirements) � Reviews documents submitted by PIUs to ensure prepared

documents are in order � Ensures and monitors compliance of loan covenants � Ensures adequate counterpart funding Project Coordination Unit (PCU) � Consolidate the project performance monitoring, and progress

reports of each component and submit to ADB � Implements subproject under its jurisdiction (identification,

preparation and appraisal) � Engages and supervises detailed design and construction � Ensures and monitors procurement of goods, works and

services � Contract administration � Management of the Project accounts, including processing

disbursement requests, supervision of the imprest accounts and preparation of financial statements

� Monitoring and reporting on Project implementation in compliance with the provisions of this Financing Agreement

� Coordination, support, and liaison activities as required for the successful implementation of the Project

� Undertake marketing and promotion activities and implement the Fostering Community Participation subcomponent

• Implementing Agency (IA) 1 Civil Aviation Authority of Nepal (CAAN) � Responsible for implementation of the Connectivity

Enhancement Component and related activities under the Capacity Building Subcomponent

� Monitor the project and have overall responsibility for its implementation

� Preparation of master plans as required, and appoint detailed design and construction supervision and capacity development consultants

� Implement land acquisition, RP and EMP, and carry out surveys, investigations, engineering designs and bid documents prepared

� Review and endorse procurement of goods, works, and services for the project

� Oversee contract administration � Organize awareness campaigns and

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� participation programs � Organize and operate the program performance monitoring

system to be linked to PCU Management of the Project accounts for their respective project activities, including processing disbursement requests through PCU, supervise the imprest accounts and preparation of financial statements

� Monitoring and reporting on Project implementation through PCU in compliance with the provisions of the Financing Agreement and the Project Agreement

� Review and facilitate the progress of the institutional improvement action plan and compliance with loan covenants

� Design and organize capacity building programs, submit annual audited account to PCU within 6 months of end of FY

� Maintain a project implementation unit at GBA to oversee implementation and construction activities in the field

• Implementing agency (IA) 2 Lumbini Development Trust (LDT) � Responsible for implementation of the Destination

Improvements Component (including Clean Public Transport Services), the Fostering Community Participation Subcomponent and related activities under the Capacity Building Subcomponent.

� Monitor the project and have overall � responsibility for its implementation

� Preparation of master plans, and appoint detailed design and construction supervision and capacity development consultant

� Ensure land acquisition and other safeguards surveys, investigations, engineering designs and bid documents prepared

� Review and endorse procurement of goods, works, and services for the Project

� Oversee contract administration � Organize awareness campaigns and

� participation program � Organize and operate the program performance monitoring

system to be linked to PCU Management of the Project accounts for their respective project activities, including processing disbursement requests through PCU, supervision of the imprest accounts and preparation of financial statements

� Monitoring and reporting on Project implementation through PCU in compliance with the provisions of the Financing Agreement and the Project Agreement

� Review and facilitate the progress of the institutional improvement action plan and compliance with loan covenants

� Design and organize capacity building programs, submit audited account annually to PCU within 6 months of end of FY

� Maintain a project implementation unit at Lumbini • ADB Lender � Supervises the overall project implementation

� Monitor compliance with loan covenants � Reviews and issues no-objection to procurement and

disbursement documents � Field missions to assess progress of the project

• UNESCO, DOA, LDT Technical Review Panel � Advises the PMIU and reviews the preparation of heritage site

management and master plans for the Sacred Gardens • National Tourism Board Tourism Promotion � Forms cell within PCU to develop and prepare tourism

promotion and marketing, and � community tourism programs

� Forms cell within PCU to develop, prepare and conduct tourism promotion and marketing, and community tourism programs with LDT and CAAN

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B. Key Persons Involved in Implementation

Executing Agency

Ministry of Culture, Tourism and Civil Aviation

Officer's Name: Sushil Ghimire Position: Secretary Telephone: +977-1-4215900 Email address: sghimire@gmail.com Office Address: Singha Durbar, Nepal

ADB

Division Director Staff Name: Kenichi Yokoyama Position: Country Director, NRM Telephone No.: +977-1-4005120 Email address: kyokoyama@adb.org

Mission Leader Staff Name: Govinda P. Gewali Position : Senior Project Officer, NRM Telephone No.: +977-1-4005120 Email address: ggewali@adb.org

C. Project Organization Structure 12. The Project Organization Chart is given in Figure 1 with the details of specific positions for the project management and implementation unit.

Figure 1: Project Organization Chart ADB = Asian Development Bank, CAAN = Civil Aviation Authority of Nepal, DOA = Department of Archeology, EA = Executing Agency, LDT = Lumbini Development Trust, UNESCO = United Nations Educational, Scientific and

Cultural Organization.

Natio

nal P

roje

ct S

teerin

g C

om

mitte

e

ADB

Government of Nepal EA – Ministry of Culture,

Tourism and Civil Aviation

Project Coordination Unit

Project Management and Implementation Unit CAAN – Kathmandu

Project Management and Implementation Unit

Lumbini Development Trust - Lumbini

Project Implementation Unit – (Gautam Buddha Airport)

Review Panel – UNESCO, LDT, DOA

Project Management and Design Consultants

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IV. COSTS AND FINANCING 13. The project is estimated to cost $97.21 million with the additional financing (Table 1).

Table 1: Updated Project Investment Plan ($ million)

Item Current Amount

a

Additional Financing

b Total

A. Base Costc

1. Connectivity infrastructure (airport) 32.36 45.27 77.63

2. Destination improvement, including clean public transport services (Lumbini site) 2.25 3.06 5.31

3. Support for capacity development, community participation, and project management 4.60 0.00 4.60

Subtotal (A) 39.21 48.33 87.54

B. Contingenciesd

6.57 1.88 8.45

C. Financing Charges During Implementatione 0.72 0.50 1.22

Total (A+B+C) 46.50 50.71 97.21 a Refers to the original amount. Includes taxes and duties of $3.15 million to be financed from government

resources. b Includes taxes and duties of $5.89 million to be financed from government resources (including $0.28 for

components 2 and 3).

c In mid-2008 prices for current amount, and in mid-2012 prices for additional financing.

d For current amount: physical contingencies computed at 10%; and price contingencies computed at 0.8% on

foreign exchange costs and 7.0% on local currency costs. For additional financing: physical contingencies computed at 5%; and price contingencies computed at 0.8% on foreign exchange costs and 5.0% on local currency costs. Includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

e Includes interest charges. Interest during construction has been computed at 1.0% per annum during the grace

period of 8 years. Source: Asian Development Bank estimates

14. The financing plan is in Table 2.

Table 2: Updated Financing Plan Current

a Additional Financing Total

Source Amount

($ million) Share of Total (%)

Amount ($ million)

Share of Total (%)

Amount ($ million)

Share of Total (%)

Asian Development Bank 25.50 54.84 30.00 59.15 b 55.50 57.09

b

Special Funds resources (loan) 12.75 27.42 30.00 59.15 42.75 43.98 Special Funds resources (grant) 12.75 27.42 0.00 0.00 12.75 13.12 OFID

c 15.00 32.26 0.00 0.00 15.00 15.43

ACEF (grant)d 0.00 0.00 3.06 5.92 3.06 3.09

Government 6.00 12.90 17.71e

34.92 23.71 24.39 Total 46.50 100.00 50.71 100.00 97.21 100.00

a Refers to the original amount and any previous additional financing.

b The current country limit for Nepal is 80%.

c OPEC Fund for International Development.

d Asia Clean Energy Fund.

e This includes $0.06 million government contribution as tax and duties for ACEF.

Source: Asian Development Bank estimates.

15. The revised cost of the Project is $97.21 million, which includes physical and price contingencies, taxes, interest, and charges. The estimated Project completion date is 30 June 2017 and the loan closing date on 31 December 2017.

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A. Detailed Cost Estimates by Expenditure Category

Total Cost

% of Total Base Cost

A. Investment Costs1

1 Land 2.85 2.97%

2

Civil Works (under original and additional grants and loans)

75.47 78.64%

3 Equipment (under original and additional grants and loans) 12.05 12.56%

4 Consulting Services (original and additional grants) 4.49 4.68%

5 Training, Workshops and Conferences 0.20 0.21%

6 Tourism Promotion 0.10 0.10%

7 Demonstration Schemes for Livelihood 0.35 0.36%

Subtotal (A) 95.51 99.52%

B. Recurrent Costs

Incremental Administration 0.46 0.48%

Subtotal (B) 0.46 0.48%

Total of A+B 95.972

100.00%

C. Unallocated 0.02

D. Financing Charges During Implementation

1 Interest During Implementation3 1.22 1.30%

Subtotal (D) 1.22 1.30%

Total Project Cost (A+B+C+D) 97.21 100.00% 1

Includes taxes and duties of $9.04 million to be financed from the government resources. 2 On the original project amount, physical contingencies were computed at 10%; and price contingencies computed at 0.8% on foreign exchange cost and 7% on local currency cost. For the additional financing, physical contingencies are computed at 5% and price contingencies are computed at 0.8% on foreign exchange costs and 5% on local currency costs. Includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

3 Includes interest charges. Interest during construction has been computed at 1% per annum during the grace period of 8 years.

Source: Loan 2579/Grant 0179, and Asian Development Bank Estimates.

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B. Allocation and Withdrawal of Loan and Grant Proceeds B.1

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (Nepal: South Asia Tourism Infrastructure Development Project)

ADB Loan 2579 Category ADB FINANCING

Number Item

Amount Allocated $

Category

Percentage and Basis for Withdrawal

from the Loan Account* 1 Civil Works 10,370,000 40.5% of the total expenditure

claimed 2 Equipment 1,660,000 17.9% of the total expenditure

claimed 3 Interest during

implementation 720,000 100% of amounts due

4 Unallocated Total 12,750,000

* Inclusive of taxes and duties. Source: ADB Loan Agreement (2579-NEP)

B.2

ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS (Nepal: South Asia Tourism Infrastructure Development Project)

ADF Grant 0179

Category ADB FINANCING

Number Item

Amount Allocated $

Percentage and Basis for Withdrawal

from the Loan Account Category Subcategory

1 Civil Works 6,937,000 1A Civil Works-Bhairahawa 4,603,500 18.0% percent of the

total expenditure claimed

1B Civil Works – Lumbini 2,333,500 88.9% of the total expenditure claimed

2 Equipment 410,000 4.4% percent of total expenditure claimed

3 Materials 100,000 100% percent of total expenditure claimed*

4 Training/Fellowships 323,000 100% percent of total expenditure claimed*

5 Consulting Services 4,290,000 100% percent of total expenditure claimed*

6 Research & Development; Community Mobilization

230,000 100% percent of total expenditure claimed*

7 Incremental Administration 460,000 100% percent of total expenditure claimed*

8 Unallocated Total 12,750,000

* Inclusive of taxes and duties

Source: ADB Grant Agreement (0179-NEP).

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B.3 ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS

(South Asia Tourism Infrastructure Development Project – OFID Loan)

Category ADB FINANCING

Number Item

Amount Allocated

$

Percentage and Basis for Withdrawal

from the Loan Account* 1 Civil Works 7,800,000 30.5% percent of total

expenditure claimed 2 Equipment 7,200,000 77.7% percent of total

expenditure claimed Total 15,000,000

* Inclusive of taxes and duties Source: OFID Loan Agreement (8247-NEP). B.4

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (South Asia Tourism Infrastructure Development Project)

Number Item

Total Amount Allocated for ADB Financing

(SDR) Category

Basis for Withdrawal from the Loan Account

1 Works** 19,162,000 62.6% of the total expenditure claimed

2 Interest during implementation

325,000 100% of amounts due

Total 19,487,000 ** Subject to the condition for withdrawal described in paragraph 6 of Schedule 3 of the loan agreement.

Source: Asian Development Bank estimates. B.5

ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS (South Asia Tourism Infrastructure Development Project – Additional Financing)

Number Item

Total Amount Allocated for ACEF Financing

($) Category

Basis for Withdrawal from the Grant Account

1 Works 60,000 100 % percent of total expenditure claimed*

2 Procurement of Electric Vehicles

1,450,000 100 % percent of total expenditure claimed*

3 Procurement & Installation of solar power system

1,100,000 100 % percent of total expenditure claimed*

4 Procurement of modern rickshaw

120,000 100 % percent of total expenditure claimed*

5 Consulting Services 200,000 100 % percent of total expenditure claimed*

6 Miscellaneous** 70,000 Total 3,000,000

* Exclusive of taxes and duties within the territory of the Recipient.

** This amount also serves as a reserve for (i) currency fluctuations and (ii) for payment of administration fees and bank charges or other charges payable pursuant to the cofinancing agreement. Source: Asian Development Bank estimates.

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C. Detailed Cost Estimates by Financier (corresponding to Table A5.7: Financing Plan, by Expenditure Accounts, for Nepal)

Table 1: Expenditure Accounts by Financiers ($ million)

Expenditure Account

Government ADF Grant ADF Loan OFID Loan ACEF Grant Total Cost Amount (A)

% of Cost Category (A/H)

Amount (B)

% of Cost Category (B/H)

Original Additional Total

Amount (F)

% of

Cost

Category

(F/H)

Amount (G)

% of Cost Category (G/H)

Amount (H)

% of Total Cost

Excl. Taxe

s

Taxes Only Total

Amount (C)

% of Cost Category (C/H)

Amount (D)

% of

Cost

Category (C/H)

Amount

(E=C+D)

% of Cost Category (E/H)

Investment Costs

a. Land 2.85 2.85 100.0 2.85 2.9

b. Civil Works 11.02 9.79 20.81 6.94 10.37 29.50 39.87 7.80 0.06 85.0 75.47 77.6

(under original grant and loan) 3.15 3.15 11.1 6.94 10.37 10.37 7.80 28.26 29.1

GBA 2.85 2.85 11.1 4.60 18.0 10.37 40.5 10.37 7.80 30.5 25.62 26.4

Lumbini 0.29 0.29 11.1 2.33 88.9 2.62 2.7

(under additional loan)-GBA 11.02 6.63 17.65 37.4 29.50 62.6 29.50 47.15 48.5

(under additional grant)-ACEF 0.01 0.01 13.0 0.06 87.0 0.07 0.1

c. Consultancy (Training, Workshops and Conferences; Consulting Services; Tourism Promotion; Demonstration Schemes for Livelihood; Former Items C, D, F & G)

4.94 0.20 5.14 5.3

(under original grant and loan) 4.94 100.0 4.94 5.1

(under additional grant and loan)

0.20 100.0 0.20 0.2

d. Equipment 0.06 0.06 2.2 0.41 1.66 1.66 7.20 2.67 97.8 12.00 12.4

(under original grant and loan) 0.41 4.4 1.66 17.9 1.66 7.20 77.7 9.27 9.5

(under additional grant and loan)

0.06 0.06 2.2 2.67 97.8 2.73 2.8

f. Incremental Administration 0.46 100.0 0.46 0.5

g. Miscellaneous 0.07 100.0 0.07 0.1

(under original grant and loan)

(under additional grant and loan)

0.07 100.0 0.07 0.1

Total PROJECT COSTS 13.87 9.84 23.71 24.7 12.75 13.3 12.03 12.5 29.50 30.7 41.53 43.3 15.00 15.6 3.00 3.1 95.99 98.7

Interest During Implementation 0.72 0.50 1.22 1.22 1.3

15

(under original grant and loan) 0.72 100.0 0.72 0.72 0.7

(under additional grant and loan)

0.50 100.0

0.50 0.50 0.5

Total Disbursements 13.87 9.84 23.71 24.4 12.75 13.1 12.75 13.1 30.00 30.9 42.75 44.0 15.00 15.4 3.00 3.1 97.21 100.0 a $0.04 million will be utilized for skills/capacity building of the affected people from the upgrading of GBA.

(corresponding to Table A5.2: Expenditure Accounts, by Components, for Nepal) D. Cost Summary by Outputs/Components (corresponding to Table A5.2: Expenditure Accounts, by Components, for

Nepal) Table 2: Cost Summary by Output Components

Expenditure Account

Connectivity Heritage Site Improvements Support to Community Participation, Capacity Building and Project

Management

Clean Public

Transport Services

Total Cost

Gautam Buddha Airport Upgrading

Site Infrastructure

Tourism Information

Center Community

Participation

Capacity Building and

Project Management

Original Additional Total Original Original Original Original Additional

Investment Costs

a. Land 2.85 2.85 2.85

b. Civil Works 25.72 47.15 72.87 1.80 0.73 0.07 75.47

c. Consultancy (Training, Workshops and Conferences; Consulting Services; Tourism Promotion; Demonstration Schemes for Livelihood; Former Items C, D, F & G)

0.00 0.00 0.00 0.55 4.39 0.20 5.14

d. Equipment 9.24 9.24 0.03 0.00 2.78 12.05

f. Incremental Administration 0.33 0.00 0.33 0.05 0.02 0.01 0.06 0.46

g. Unallocated 0.02 0.02

Total PROJECT COSTS 38.14 47.15 85.29 1.88 0.75 0.56 4.45 3.07 95.99

Interest During Implementation

1.22

Total Disbursements 38.14 47.15 85.29 1.88 0.75 0.56 4.45 3.07 97.21

16

E. Detailed Cost Estimates by Year

Disbursed Year 1 Year 2 Year 3 Year 4 Year 5 Total

A. Land 2.71 0.14 2.85

B. Civil Works 8.50 11.19 23.12 16.76 15.94 75.51

C. Training, Workshops and Conferences

0.00 0.10 0.05 0.05 0.00 0.20

D. Consulting Services 1.9 0.45 0.55 0.65 0.61 0.31 4.47

E. Equipment 0.00 0.00 2.58 9.47 0.00 12.05

F. Tourism Promotion 0.00 0.04 0.03 0.03 0.00 0.10

G. Demonstration Schemes for Livelihood

0.00 0.15 0.15 0.05 0.00 0.35

Subtotal (A to G) 4.61 9.09 12.03 26.52 27.05 16.25 95.53

H.Incremental Administration 0.01 0.16 0.10 0.12 0.07 0.46

Interest During Implementation

0.03 0.06 0.18 0.44 0.51 1.22

Total Disbursement 4.61 9.10 12.25 26.80 27.61 16.83 97.21

F. Contract and Disbursement S-curve

Figure 1: Contract and Disbursement S-curve

17

18

19

G. Fund Flow Diagram

(i) (iii) (iv) (ii)

(v) Notes: (i) PCU submits annual budget. MOF issues expenditure authorization to MOCTCA, which issues authorization to PCU. (ii) PMIUs submit annual budget to PCU, which releases funds to PMIUs for project expenditures. PMIUs submit statement of expenditures and withdrawal requests to PCU (iii) PCU requests advance, liquidation, reimbursement, and replenishment to ADB, ADB provides advances, reimbursement, and replenishment to imprest account. (iv) ADB direct payment of invoices for international direct procurement. (v) PMIU payment of ADB share ($) and government share (NRs) (vi) Under AF, imprest account is needed only for ACEF grant. (vii) There will be no imprest fund procedure under OFID loan.

ADB (including ADB loan, ADB grant, OFID loan, ACEF grant)

PCU-MOCTCA, Project Accounts at Nepal Rastra Bank 1. Imprest Account (US$) two for existing loan/grant and one for additional financing 2. Project account (NRs)

Foreign contractors, consulting firms, suppliers and other expenditures

PMIU-LDT

Domestic contractors, suppliers, consultants

Fund Flow Document Flow

PMIU-CAAN, Project Account at Nepal Investment Bank 1. Imprest subaccounts (US$) two for existing and one for additional financing 2. Project account (NRs)

MOF

20

V. FINANCIAL MANAGEMENT A. Financial Management Assessment 16. The financial management assessment of the EA (MOCTCA) and two IAs, (CAAN and LDT), has been updated in accordance with ADB guidelines,17 and has been informed by FMAQs completed by EA/IAs as well as lessons learned during implementation of the ongoing project and the Governance and Risk Assessment of the Nepal Country Partnership Strategy.18 The MOCTCA and CAAN have satisfactory financial management systems in place. They are the EA and IA respectively of two ongoing ADB-financed projects, 19 and have significant experience with ADB’s guidelines and procedures. The statutory reporting requirements are as per provision of Financial Procedural Rules and Act (2007) of the Office of the Financial Comptroller General (FCGO). The Air Transport Capacity Enhancement Project (Loan 2581/Grant 0181), under its capacity development component, is improving CAAN’s financial operations by introducing a financial management information system, consisting of accounting software, networked computer and training. This will enable CAAN to effectively manage its financial performance and resources. Based on the updated financial management assessment, which is provided in supplementary appendix 15 to the RRP, a few risks have been identified which are being addressed. Delays during the initial project implementation shall be partially met by assigning dedicated fulltime accounting staff to PMU, as well as training by ADB on Procurement and Disbursement arrangements. Statement of Audit Needs will be provided to ensure that ADBs audit requirements are met. Although financial information is available, CAAN has not yet been able to hold its AGM for a few years. ADB will work closely with the IA to encourage the timely approval of audited financial statements. 17. The PCU is established in MOCTCA, and each IA has an established PMIU. Financial administration of PCU and PMIUs is governed by the rules and regulations of the respective entities. The regular financial administration functions of the project are carried out by the Finance and Accounting Section of PCU in coordination with the PMIUs in CAAN and LDT. CAAN maintains separate project accounts and of shares of expenditure between ADB grant, loan, OFID loan and government. CAAN has recruited a chartered accountant for internal auditing. Civil Aviation Office at GBA has an accounting section located at the airport. Full set of the accounting records are maintained at GBA. LDT also maintains its separate project accounts and share of expenditures between ADB grant and government. 18. LDT was formed by the Lumbini Development Trust Act, 1985 and is an autonomous, non-governmental and nonprofit organization, under the MOCTCA. Its Executive Committee is headed by the Minister. LDT is based in Lumbini with a liaison office in Kathmandu. LDT follows the government accounting system. LDT has no experience in maintaining a separate account for donor-funded project before the ADB-financed South Asia Tourism Infrastructure Development Project. LDT has been satisfactorily maintaining current accounting records of the funds received from the Government and donors, and of funds collected from internal sources. The current accounting staff is capable of maintaining a separate project accounting records. However, the financial recording and reporting format needs to be converted from cash to accrual basis. There is an accounting software package, which is already in operation at LDT.

17

ADB 2009, 2013. Financial Due Diligence: A Methodology Note, January 2009 and Financial Management Technical Guidance Note, June 2013

18 ADB. 2013. Nepal Country Partnership Strategy 2013-2017 (Draft). Manila

19 (i) South Asia Tourism Infrastructure Development Project (Loan 2579/Grant 0179); and (ii) Air Transport Capacity Enhancement Project (Loan 2581/Grant 0181).

21

B. Disbursement 19. The Loan and Grant proceeds including ADB-administered OFID loan and ADB- administered ACEF grant will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),20 and detailed arrangements agreed upon between the Government and ADB. The disbursement will start from the existing loan and grant as per the agreed financing percentages. The additional financing loan will finance the later stage of GBA upgrading works and disbursed as per the agreed financing percentage. 20. The disbursement procedure will follow (i) direct payment by ADB, (ii) commitment letter, (iii) reimbursement, and (iv) imprest fund procedures as appropriate. Direct payment procedure will be used whenever practical for quick, efficient, and economic disbursement. 21. For the original loan and grant, an imprest account for the Project has been opened for PCU at the Nepal Rastra Bank (NRB) in USD. The maximum ceiling of the imprest account in aggregate will not at any time exceed the ceiling of 10% of the total loan amount. The imprest account is operated with joint signatories as authorized by MOF. If the imprest account turnover ratio is less than 2.0, PCU should submit the estimate of expenditure for forthcoming six months to be financed from the imprest account (as per Appendix 10B of Loan Disbursement Handbook 2012) along with the withdrawal application for replenishment. PCU will reconcile the bank statement of the imprest account in each month as per its own ledger. Under the current funds flow system, PCU transfers the USD amount from the impest account to the subaccount as requested by PMIU-CAAN. There are two subaccounts in USD for the original ADB loan/grant opened at a commercial bank (Nepal Investment Bank Limited) under the name of the project.

22. For the additional financing loan and grant, another imprest account in USD will be opened in NRB for PCU and the ceiling of imprest account will be 10% of the respective loan or grant amount. PMIU-CAAN will also open a subaccount in USD at a commercial bank acceptable to ADB. PCU will transfer the USD amount into the subaccount within seven days as per the request of PMIU-CAAN. The PMIUs will submit statement of expenditure (SOE) to PCU to expedite the disbursement process. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. PCU will submit withdrawal applications to ADB after consolidating the eligible expenditures of PMIUs. The request for advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet21 setting out the estimated expenditures for the first forthcoming six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the borrower will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the EA’s records.22 23. Before the submission of the first withdrawal application for the additional financing, PCU will submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. Individual payments below this amount

20

Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 21

Available in Appendix 10B of the Loan Disbursement Handbook, 2012. 22

Follow the format provided in Appendix 10C of the Loan Disbursement Handbook, 2012.

22

should generally be paid from the imprest account/subaccount, or by the EA/IA and subsequently claimed to ADB through reimbursement. ADB reserves the right not to accept withdrawal applications below the minimum amount. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from the ADB member countries, and are eligible for ADB financing. C. Accounting 24. MOCTCA, CAAN and LDT will maintain, or cause by their PMU/PMIUs to be maintained, separate books and records by funding source for all expenditures incurred on the project. Each will prepare project financial statements in accordance with the government's accounting laws and regulations, which are consistent with international accounting principles and practices. The financial statements shall be consolidated for all sources of funding including the original loan, grant and the additional financing. Detailed statement of audit needs, standard pro forma of financial statements and a time-bound action plan shall be prepared and implemented by CAAN and LDT. D. Auditing 25. MOCTCA, LDT and CAAN will cause the detailed project financial statements to be audited in accordance with International Standards on Auditing and with the Government's audit regulations, by an independent auditor acceptable to ADB. The audited project financial statements will be submitted in the English language to ADB within six months of the end of the fiscal year by the EA and IAs. 26. LDT and CAAN will also cause their entity-level financial statements to be audited in accordance with International Standards on Auditing and with the Government's audit regulations, by an independent auditor acceptable to ADB. The audited entity-level financial statements, together with the auditors’ report and management letter, will be submitted in the English language to ADB within one month after their approval by the competent authority. 27. The annual audit report for the project financial statements will include audit opinions which cover (i) whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework; (ii) whether loan and grant proceeds were used only for the purposes of the project or not; (iii) the level of compliance for each financial covenant contained in the legal agreements for the project; (iv) use of the imprest fund procedure; and (v) the use of the statement of expenditure procedure (SOE) certifying to the eligibility of those expenditures claimed under SOE procedures, and proper use of the SOE and imprest procedures in accordance with ADB’s Loan Disbursement Handbook and the project documents. A management letter shall also be provided, unless already provided with the entity-level financial statements. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal project supervision, and followed up regularly with all concerned, including the external auditor. 28. The Government, MOCTCA, CAAN and LDT have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.23 ADB reserves the right to require a change in the project auditor

23 ADB Policy on delayed submission of audited project financial statements:

23

(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. 29. Public disclosure of the project financial statements, including the audit report on the project financial statements, will be guided by ADB’s Public Communications Policy (2011).24 After review, ADB will disclose the project financial statements for the project and the opinion of the auditors on the financial statements within 30 days. The management letter and entity level financial statements will not be disclosed.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing 30. All advance contracting will be undertaken in conformity with ADB’s Procurement Guidelines (February 2007, as amended from time to time) (ADB’s Procurement Guidelines)25 and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).26 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, MOCTCA (executing agency) and CAAN (implementing agency) have been advised that approval of advance contracting and retroactive financing does not commit ADB to provide the additional finance to the project. 31. Advance contracting. Advance action is to expedite the process of procurement of package 1 civil works for GBA upgrade. Advance action includes finalization of the request for proposal; and the tender process of the works, including preparation of the bidding documents for civil works and call for tender. B. Procurement of Goods, Works and Consulting Services 32. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines. 33. International competitive bidding procedures will be used for civil works contracts estimated to cost $1 million or more, and supply contracts valued at $1 million or higher. Shopping will be used for contracts for procurement of works and equipment worth less than

• When audited project financial statements are not received by the due date, ADB will write to the executing

agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

• When audited project financial statements have not been 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 imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next six months.

• When audited project financial statements have not been received within 12 months after the due date, ADB may suspend the loan.

24 Available from http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

25 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf

26 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf

24

$100,000. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. 34. Before the start of any national competitive bidding (NCB) procurement ADB and the Government will review the public procurement laws of the central and state governments to ensure consistency with ADB’s Procurement Guidelines. 35. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. 36. All consultants and nongovernment organizations (NGOs) will be recruited according to ADB’s Guidelines on the Use of Consultants.27 The terms of reference for all consulting services are detailed in Section D. 37. Under the current project, a total of 419 person-months (29 person-months international and 390 person-months national) will be provided to (i) facilitate project management and implementation, and (ii) strengthen the institutional and operational capacity of the EA and IAs. Consulting firms were engaged using the quality-and cost-based selection (QCBS) method with a standard quality: cost ratio of 80:20. For the increased project scope and extended period, additional 94 person-months of national project management consultant (PMC) inputs will be required for PCU and 36 person-months of international and 176 person-months of national DSC consultant inputs will be required for CAAN-PMIU (Annex 2 and 3). The additional consultant services can be arranged by utilizing the surplus cost in the existing PMC and DSC contracts and drawing from the uncommitted funds under the project’s consulting services cost category.28 The PMC and DSC services will be required until 30 June 2017 and 31 December 2017, respectively. Extension of the existing PMC and DSC contracts can be considered to complete implementation of the project smoothly, as their performance has been satisfactory. C. Procurement Plan

Basic Data Project Name: South Asia Tourism Infrastructure Development

Project – Additional Financing Country: Nepal Executing Agency: Ministry of Culture, Tourism and Civil Aviation Amount: $73.50 million (ADB loan $42.75 [includes $30

million additional financing], ADB grant $12.75 million, OFID loan $15.00 million, and ACEF grant $3.00 million) (Source: Allocation and Withdrawal Tables B1, B2, B3, B4, and B5)

Loan (Grant) Number: Loan 2579/Grant 0179 for the existing project. To be assigned for additional financing

Date of First Procurement Plan : 16 November 2009 Date of this Procurement Plan: 3 February 2014

27

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/

28 PMC will need additional $0.28 million out of which $0.16 million can be covered from the existing contract balance and the remaining $0.12 million from the uncommitted $2 million under the consulting services cost category. DSC will need an additional $1.22 million out of which $0.42 can be covered by utilizing the existing contract balance and the remaining $0.8 million by drawing from the above uncommitted consulting cost.

25

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

a. Project Procurement Thresholds 38. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold International Competitive Bidding (ICB) for Works

: $1,000,000 and above

International Competitive Bidding for Goods : $1,000,000 and above National Competitive Bidding (NCB) for Works : Below $1,000,000 National Competitive Bidding for Goods : Below $1,000,000 Shopping for Works : Below $100,000 Shopping for Goods : Below $100,000 Recruitment of Consulting Firms Quality- and Cost-Based Selection (QCBS) : $200,000 and above Consultants Qualifications (CQS) : Below $200,000 Least cost Selection (LCS) : Below $100,000

b. ADB Prior or Post Review

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

Procurement Method Prior or Post Comments Procurement of Goods and Works

ICB Works Prior ICB Goods Prior NCB Works Prior NCB Goods Prior Shopping for Works Post Shopping for Goods Post Recruitment of Consulting Firms

Quality- and Cost-Based Selection (QCBS) Prior Consultants Qualifications (CQS) Prior

c. Goods and Works Contracts Estimated to Cost More Than $1

Million 40. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description Contract

Value Procurement

Method Prequalification of Bidders (y/n)

Advertisement Date

(quarter/year) Comments

Works Expansion and upgrading of airport including terminal building and provision of utilities services

$78.3 million ICB n December 2013

26

Goods

Supply, installation and commissioning of aviation and telecommunication equipment

$7.18 million

ICB n Feb 2015

Procurement of electrical vehicles

$1.45 million

ICB n Jun 2014

Installation of solar power supply system

$1.1 million

ICB n Jun 2014

d. Consulting Services Contracts Estimated to Cost More Than

$100,000 41. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Contract Value

Recruitment Method

Advertisement Date

(quarter/year)

International or National

Assignment Comments

ACEF (2 person-months international and 9 person-months national)

$0.17 million

QCBS May 2014 International

e. Goods and Works Contracts Estimated to Cost Less than $1

Million and Consulting Services Contracts Less than $100,000

i. Goods and Works Contracts Estimated to Cost Less than $1 Million

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

General Description

Value of Contracts

(cumulative) Procurement

Method Prequalification

of bidders

Advertisement Date

Comments Procurement of modern rickshaws

$0.12 million

NCB

n

Jun 2014

Construction of covered vehicle stops

$0.06 million

Shopping n Jun 2014

27

ii. Consulting Services Contracts Less than $100,000

General Description

Contract Value

Recruitment Method

Advertisement Date

(quarter/year)

International or National

Assignment Comments

Consulting services for ACEF activities (1 person month international)

$0.03 Million

SSS May 2014 International UNESCO- contract

(University of Tokyo Team)

2. Indicative List of Packages Required Under the Project

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

General Description Contract

Value Procurement

Method Prequalification of Bidders (y/n)

Advertisement Date

(quarter/year) Comments

Works

Expansion and upgrading of airport including terminal building and provision of utilities services

$78.3 million ICB n December 2013

Improvement of Lumbini site infrastructure and amenities

$2.65 million ICB n May 2013 Contract awarded

Construction of covered vehicle stops

$0.06 million Shopping n Jun 2014

Goods

Supply, installation and commissioning of aviation and telecommunication equipment

$7.18 million ICB n Feb 2015

Procurement of electrical vehicles

$1.45 million ICB n Jun 2014

Procurement of modern rickshaws

$0.12 million NCB n Jun 2014

Installation of solar power supply system

$1.1 million ICB n Jun 2014

General Description

Contract Value

Recruitment Method

Advertisement Date

(quarter/year)

International or National

Assignment Comments Consulting Services

Project Management $0.51 million QCBS, 80:20 Aug 2010 National Contract awarded

28

General Description Contract

Value Procurement

Method Prequalification of Bidders (y/n)

Advertisement Date

(quarter/year) Comments consultants Design and Supervision Consultant

$3.00 million QCBS, 80:20 April 2010 International 2 Packages (Contract awarded)

Tourism Promotion Activities

$0.13 million CQS March 2013 National

Community Awareness Raising Program

$0.139 million CQS March 2013 National

Demonstration Scheme for Heritage –Based Livelihood Generation

$0.200 million CQS March 2013 National

Consulting Services for ACEF Activities (1 person-month International)

$0.03 million SSS May 2014 Int’l UNESCO- contract

(University of Tokyo Team)

ACEF (2 person-months international and 9 person-months national)

$0.17 Million

QCBS May 2014 National

3. National Competitive Bidding (NCB Annex)

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

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

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

c. Invitations to bid shall be advertised in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of twenty-eight (28) days for the preparation and submission of bids.

29

Invitations for bids for contracts estimated at $500,000 or more for goods and $1,000,000 or more for civil works shall be advertised on ADB’s website. No restriction will be placed on the sale of bidding documents.

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

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

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

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

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

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

45. In the event of a conflict between these provisions and the law, these provisions shall prevail. For multiple contract packages, cost estimates refer to total cost and not to cost per package. D. Consultant's Terms of Reference 46. The outline terms of reference for all consulting services are shown below. The expertise and person-month requirements of the consultant staff in the PCU and the two PMIU are listed in the tables below.

1. Project Management Consultant 47. The Project Management Consultants (PMC) will assist Project Coordination Unit (PCU) in the MOTCA in setting up of the project management and monitoring systems and assisting PCU in the monitoring of the overall project progress and reporting. The PMC, comprising a core expertise in project management, monitoring, procurement, and financial management will support the PCU; delineate the PCU and PMIUs’ method and detailed program and work plans, procedures for coordination, management, and financial management and project accounting, project performance monitoring system, and reporting; and design, installation and operationalization of new systems as required; PMC will also assist in community awareness and marketing and promotion activities. Moreover, PMC will also assist Civil Aviation Authority Nepal (CAAN), Lumbini Development Trust (LDT), and Nepal Tourism Board (NTB) in the implementation of the Institutional Improvement Action Plan. 48. The objective of the proposed consultancy services (PMC) is to assist PCU in project management, project monitoring, procurement, financial management, project accounting, monitoring of the overall project progress and reporting. PMC will assist Project Management and Implementation Unit (PMIU) in setting up of the project management and monitoring systems. The PMC will also assist PMIUs in the implementation of the Institutional Improvement Action Plan, community awareness, marketing, and promotion activities.

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49. The PMC team will work under the supervision of Project Coordinator of PCU at MOTCA. The PMC team will work in close coordination with other PCU officers. The responsibilities of PMC include:

a. Assist the PCU and the PMIUs in subproject design and implementation. b. Assist PCU in the preparing annual work plan, annual budget and a detailed

implementation schedule. c. Set up procedures and systems for overall project management and monitoring

project implementation. d. Assist PCU in reviewing bidding procedures including prequalification of the

contractors, bidding, bid evaluation and preparation of bid evaluation reports and awards of contracts for procurement of equipment, materials and civil works for all contract packages as submitted by PMIUs.

e. Review project implementation progress from the perspective of overall project management and detailed annual work plans, and recommend remedial measures as appropriate to PCU.

f. Review implementation of loan covenants in collaboration with PCU and recommend remedial measures as appropriate.

g. Review the business plans of CAAN and LDT. Based on the business plans, support in design and implementation of financial improvement action plans.

h. Support the PCU and PMIU in monitoring of subprojects, compliance with assurances, progress on the agreements relating to management reforms and maintenance of PPMS database.

i. Prepare financial management reporting systems of the project and produce Financial Management reports for submission to ADB by the PCUs.

j. Review various reports/documents submitted by PMIUs as part of project implementation requirement to PCU and ADB.

k. Prepare regular progress reports and other reports in formats acceptable to ADB and government ministries.

l. Assist PCU in defining the media content on project sites, especially Lumbini and community products that will be designed. Develop additional themes as part of the project and more importantly on the tangible and intangible cultural heritage and nature and community based activities.

Project Coordination Unit (MOCTCA) Project Management Consultant (PMC)

Original Person-Months (PM)

PM for Additional Financing

1

Total PM

Project Manager (National) 40.0 32.0 72.0 Financial Management Specialist (National)

15.0 48.5 63.5

Project Monitoring Specialist (National) 8.0 5.0 13.0 Marketing Expert (National) 4.0 - 4.0 Tourism Promotion Expert/Team (National)

- 4.5 4.5

Total 67.0 90.0 157.0 1 The additional consulting services will be financed from the unutilized contract cost of PMC and drawing from the uncommitted funds under the project’s consulting services cost category.

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a. Individual Consultant Terms of Reference – PMU 50. Project Manager (National)

a. Overall management of the project- manage all tasks required under the contract and ensure delivery of outputs in a timely and satisfactory manner in accordance with the overall project implementation schedule.

b. Coordinate and assist the PCU at the centre and the PMIUs in its functions and responsibilities of sub project design and implementation;

c. In consultation with the Project Director, PCU, Project Managers at CAAN and LDT, assist in the establishment of annual project work plans, job descriptions, staffing schedules and budgets, and prepare a detailed implementation schedule covering all stages of the implementation process for each project component.

d. Set up procedures and systems for overall project management and monitoring project implementation.

e. Assist PCU in reviewing bidding procedures including prequalification of the contractors, bidding, bid evaluation and preparation of bid evaluation reports and awards of contracts for procurement of equipment, materials and civil works for all contract packages.

f. Provide solutions to the EA and DSC on key technical issues. g. In consultation with the Project Manager at PMIU-CAAN, contribute to design of

all Airport pavements and overall design of the facilities and review detailed designs and associated bidding documents for all subproject components.

h. Assist PCU and PMIU with overall management and supervision of construction works including the resolution of contractual issues.

i. Review project implementation progress from the perspective of overall project management and detailed annual work plans, and recommend remedial measures as appropriate.

j. Review implementation of loan covenants in collaboration with PCU and recommend remedial measures as appropriate.

k. Review the business plans of CAAN and LDT. l. Support the PCU and PMIU in monitoring of sub projects, compliance with

regard to assurances, progress on the agreements relating to management reforms and maintenance of PPMS database.

51. Financial Management Specialist (National) a. Prepare financial management and reporting systems of the project and oversee

production of Financial Management reports for submission to ADB by the PCU and PMIU’s.

b. Must hold a professional accountancy qualification. c. Support capacity building of eco development societies and other entities (such

as CAAN, LDT) in financial management aspects through structured capacity development programs.

d. Review and contribute to the finalization of business plans of CAAN and LDT. e. In consultation with the community development specialist and institutional

development specialist, support communities in transactions (Link to Micro Finance, NGO Support Community Mobilization etc).

f. Based on the business plans, support in design and implementing a financial improvement action plans.

g. Contribute to the financial management improvements and revenue enhancement measures of project components.

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52. Project Monitoring Specialist (National): In relation to the project outcomes and in discussion with the PM and the Team, design the project performance monitoring mechanisms for the project to include:

a. Prepare monitoring forms and monitoring schedule as per ADB, ministry and National Planning Commission and other requirement.

b. The outputs and outcome monitoring requirements. c. Specify the requirements from the Environmental Engineer/ Planner and Cultural

Heritage Specialist (Supervision Team) specific requirements on outcome monitoring from culture based activities and eco tourism).

d. Prepare regular progress reports in formats acceptable to ADB and government ministries.

e. Visit sites as directed by PCU to collect, verify data submitted by PMIUs for progress monitoring.

53. Marketing Expert (National) a. Assist the project in defining the media content on project sites, especially

Lumbini and community products that will be designed and additional themes being developed as part of the project and more importantly on the tangible and intangible cultural heritage and nature and community based activities.

b. Selection of entities for preparation of media content and outputs. c. Assist in procurement of services and goods relating to this activity. d. Link proposed community based activities with the market/ operators.

54. Tourism Promotion Expert/Team (National) - Lumbini and Adjoining Area Tourism

Promotion Plan Preparation a. Prepare plan encompassing Lumbini and related important sites in Rupandehi,

Kapilbastu and Nawalparasi districts. b. Identify appropriate institutional setup or group or agency, which will ultimately

act as a focal point for initiating the plan. c. Carry out a comprehensive study based on works, plans and studies prepared

by other national and international agencies. d. IT expert, in coordination with other stakeholders and team members, provide

an interactive promotional plan through effective information sharing about identified archeological and historic sites.

e. Identify ways to further enhance attractiveness of Lumbini area. f. Define a set of priority subjects for tourism promotion, and assess strengths,

challenges and opportunities, and possible strategy and actions on (i) archeological and historic sites, and (ii) any other tourist attractions (quality information in center and museums, handicrafts, cultural observations, biodiversity, and natural environment observation).

g. Analyze reasons for short stay of tourists in Lumbini (such as limited existing facilities for accommodation and lack of supporting infrastructure).

h. Assess status and prospects of private sector initiatives/investment particularly in hotels (accommodation), and other tourism related activities.

i. Assess prospect of introducing electric vehicles/rickshaws inside Lumbini for movement of tourists and enhance the environment.

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55. Project Schedule. The key dates of project schedule are as follows: Key Activity Date

Mobilization of PMC and PMIU consultants January 2011

Design and capacity building period March 2011-Dec 2013

Bidding period Nov 2013-Apr 2014

Construction period May 2014-June 2017

Project completion June 2017

Project closing December 2017

56. Reporting. The consultant will be required to submit the following reports in due date and stipulated number of copies. The consultant will also be required to produce various other reports as required by the Project Director.

Report Due Date No. of Copies

Inception report One month after mobilizing 10

Monthly report First week of consecutive month 10

Draft report (marketing) 9 month after mobilization 10

Final report (marketing) 10 month after mobilization 10

Project completion report 30 June 2017 10

2. Design and Supervision Consultant - CAAN

56. Within the overall guidance of the Project Director, the deputy project director of the GBA Upgrading component will be responsible for the design, supervision and management functions. The overall team composition is listed below and would comprise national and international consultants. The overall project design and management inputs will be around 104 person-months and the supervision inputs will be 124 person-months. While most specialists will have designated tasks as part of design and management, the financial management specialist, beyond supporting CAAN GBA financial management aspects such as reporting will also work with CAAN in definition of financial management systems and in the design and implementation of the business plan for CAAN. This will be in coordination with the institutional development specialist and the project managers.

CAANDesign and Supervision and Capacity Building Consultants PM

Design and Capacity Building Phase

Project Manager (Airport Management and Pavement Specialist- National) 12

Pavement Engineer (National) 6

Airport Designer (International) 4

Architect (National) 6

Electronics and Navigation Specialist (International) 6

Airspace operation specialist (International) 2

Electronics and Navigation Specialist (National) 4 Mechanical Engineer (National) 2

Electrical Engineer (National) 4

Structural Engineer (National) 6

Civil and Utilities Engineer (National) 4

Drainage and Flood Control Specialist (National) 4

HVAC Engineer (National) 2

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Institutional Development Specialist (National) 10

Safeguard Specialist – Environment (National) 4

Safeguard Specialist – Social (National) 2

Procurement Specialist (National) 8

Quantity Surveyor (National) 15

Financial Management Specialist (National) 8

Air space operation specialist (National) 2

Sub Total 111

Construction Supervision

Project Manager (National) 24

Quality Control (International) 6

Quality Control/Materials Engineer (National) 20

Architect (National) 8

Electronics and Navigation Specialist (International) 2

Electronics and Navigation Specialist (National) 8

Mechanical Engineer (National) 2

Electrical Engineer (National) 4

HVAC Engineer (National) 2

Resident Engineer/Civil (National) 2 No. 44 Safeguard specialist, Environmental (National) 4

Sub-total 124

TOTAL 228

a. Individual Consultant Terms of Reference – DSC CAAN

57. Project Manager/Airport Management Specialist (National) a. Define TORs for surveys and investigation. b. Update airport master plan and activity scheduling. c. Design of airport geometrics, including preparation of working drawings. d. Carry out Preliminary and conceptual design, options study, comparison and

recommendation of preferred design options of runway, taxiway , apron as well as design of access and diversion roads.

e. Prepare estimates in consultation with the procurement specialist and procurement officer at CAAN, bid documents of all civil and, infrastructural facilities as part of the project.

f. Coordinate with all experts during and supervision of all the design works including implementation.

g. Prepare designs for all elements (including working drawings). h. Prepare estimates in consultation with the Structural engineer, the airport

architect and associated bidding documents. i. Assist PMIU in bidding procedures including invitation of bids, bid evaluation,

and awards of contract. 58. Pavement Engineer (National)

a. Review of geotechnical investigation report data and confirmation as required. b. Carry out Preliminary and conceptual design, options study, comparison and

recommendation of preferred design options of pavement for runway, taxiway , apron, access and diversion roads.

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c. Carry out detail design of runway, taxiway, apron and road pavements. d. Prepare design drawings. e. Prepare cost estimates and BoQ of pavement works. f. Prepare Technical specifications. g. Contribute to preparation of design report.

59. Architect/ Airport Designer (International) a. Prepare TORs and coordinate required surveys and investigations. b. Lead the design of layout of airport facilities such as refurbishing and expansion

of domestic Terminal Building, expansion of International Terminal Building, control tower, fire service facilities, proposed cargo facility and other airport services.

c. Design all above facilities and optimize terminal space and city side improvements.

d. Complete the estimates for the activities proposed in consultation with the civil and electrical engineers.

e. Support in design of the bid documents for various components of the building elements.

60. Architect (National): In consultation and guidance of Architect/ Airport Designer

(International) a. Review of design requirements. b. Assessment of existing inventory and site. c. Preparation of site plan with due consideration of topography. d. Identify needs and flow type at various buildings/structures and facilities(

terminal buildings, control tower, fire service facilities, cargo and Custom building, and ground side facilities, etc.).

e. Carry out space planning and identification of size of facilities and buildings. f. Consult with Civil, Structural, Electrical, Mechanical, HVAC and related service

experts for space sizing. g. Master planning of facilities and buildings and their layouts. h. Inception design of facilities and buildings. i. Detail architectural design of facilities and buildings. j. Matching engineering design, services with plan and architectural design. k. Prepare drawings and guidance to prepare BoQ and cost estimate including

support during bid preparation. l. Contribute to preparation of design report.

61. Electronics and Navigation Specialist (International)

a. Lead the design of navigation and communication facilities. b. Review and recommend various technical options for security systems,

communication and navigation facilities at the airport. c. Design the technical and functional specifications for the proposed system and

compare with the proposed equipment in RETA 6504 based on approved option. d. Prepare the bid documents in consultation with the procurement specialist. e. Support CAAN in the bid process including invitation, evaluation, award. f. Define the training plan and requirements for operationalizing the new systems. g. Supervise installations.

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62. Air Space Operation Specialist (International) a. Review of Nepal CAAN-- AIP and existing air routes and procedure related to

GBA. b. Draft design of new air routes and procedure within Nepalese boundary in

context of new runway layout in GBA—in conformance with acceptable international practice.

c. Discussion of draft design above with related CAAN experts and prepare final design and document acceptable to CAAN.

63. Electronics and Navigation Specialist (National)

a. Design navigation and communication facilities. b. Review and recommend technical options for security systems, communication

and navigation facilities in the airport. c. Design the technical and functional specifications for the proposed system and

compare with the proposed equipment list in earlier studies. d. Prepare the bid documents in consultation with the procurement specialist. e. Support PMIU/CAAN in the bid process including invitation, evaluation, and

award. 64. Mechanical Engineer (National)

a. Prepare the list of CFR equipment required in compliance with the requirements for Category VIII of ICAO recommendation and compare with what is at present available.

b. Prepare the list of additional CFR equipment required to comply with the recommended category.

c. Prepare specifications for CFR vehicles and spare parts. d. Prepare the bidding documents for procurement of CFR vehicles in consultation

with the Procurement specialist. e. Support CAAN in the bid process including invitation, evaluation and award of

contract. 65. Electrical Engineer (National)

a. Lead the design of electrical systems for the proposed facilities. b. Design the technical and functional specifications for the proposed system. c. Prepare the bid documents in consultation with the procurement specialist d. Support CAAN in the bid process including invitation, evaluation, award. e. Supervise installation.

66. Structural Engineer (National)

a. Review of geo-technical survey report. b. Review the architectural floor plans of international / domestic terminal building,

control tower, CFR building and customs/cargo building. c. Carry out structural design of all the above mentioned buildings. d. Carry out structural design of structures for Ghagra Khola diversion and other

infrastructure. e. Prepare design drawings. f. Review and elaborate technical specifications. g. Contribute to prepare of report.

67. Civil and Utilities Engineer (National)

a. Review the topographical survey drawings.

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b. Prepare TORs and coordinate required surveys and investigation. c. Prepare the detailed design, specifications, drawings and estimates. d. Prepare the bid documents in consultation with the procurement specialist. e. Support CAAN in the bid process including invitation, evaluation and award f. Contribute to prepare of report.

68. Drainage and Flood Control Specialist (National)

a. Prepare TORs and coordinate required surveys and investigations. b. Perform technical assessment of two options such as diversion of Ghagra Khola

along airport boundary and a box culvert underneath the airport along the existing alignment of Ghagra Khola. Based on the assessment, select the preferred option perform detailed design.

c. Prepare detailed designs, specifications and estimates for the selected diversion option and related works for Ghagra Khola as well as overall drainage surface drainage arrangement for the airport based on surveys and overall plan.

d. Prepare the bid documents in consultation with the procurement specialist. e. Define the safeguards to be incorporated as part of the construction contract

and monitoring requirements during construction in consultation with the environment specialist.

f. Support CAAN in the bid process including invitation, evaluation and award of contract.

g. Contribute to prepare report. 69. HVAC Engineer (National)

a. Review of data. b. Review layout design of terminal areas, control tower and structures requiring

HVAC facilities. c. Load assessment of various elements in buildings/structures for design

requirement. d. Prepare design drawings. e. Prepare cost estimates and BoQ of systems designed. f. Prepare Technical Specification. g. Contribute to prepare design report.

70. Institutional Development Specialist (National)

a. Devise the scope of implementable actions especially with regard to financial management based on review of policy studies conducted for CAAN and in consultations with CAAN.

b. Lead preparation of Business Plan for Bahirawaha Airport and a policy document on measures required for airports in the country including policy subsidies and their rationale.

c. Prepare the capacity development plan as proposed for CAAN and define the work plan.

d. Financial management (in consultation with the FM expert) and in business planning.

e. Contribute to the project outcome monitoring indicators in consultation with project performance monitor.

f. Specialist and supervision consultants on management aspects. g. Guide and assist the financial management specialist in developing revenue

enhancement measures and other innovative approaches for sustainable O&M of tourism sites in consultation with the project manager and the government.

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h. Define components/ elements of the proposed facility that can be defined (including management contracts) and delivered in a commercial format.

i. Devise a strategy and guideline for private sector involvement in airport and related onsite services.

71. Safeguards Specialist Environment (National)

a. Prepare ADB procedure compliant environmental safeguard actions and impact assessment if any during design stage and include it in the bidding document.

b. Prepare management plan and mitigation measures. c. Oversight of implementation of environmental standards and safeguards as part

of project implementation. d. Prepare performance monitoring reports.

72. Safeguards Specialist Social (National)

a. Prepare and implement ADB compliant resettlement plans if any based on the approved framework.

b. Oversee implementation of Resettlement Plans (RP). c. Lead community consultation during design phase of components and as part of

the preparation of the Local Area Plan. d. Prepare performance monitoring reports

73. Procurement Specialist (National)

a. Prepare the procurement plan for all goods works and services to be taken up during the project, in consultation with the Team Leader and the Project Director.

b. Support the PMIU for specific activities under the project. c. Prepare Bid Documents. d. Support in preparation of Evaluation reports and related transactions.

74. Quantity Surveyor (National)

a. Review design drawings and specifications. b. Prepare BOQ for all project components. c. Prepare rate analysis and rates for all BOQ items and cost estimates of project

components.

75. Financial Management Specialist (National) a. Prepare financial management and reporting systems of the project and oversee

production of Financial Management reports for submission to the ADB by the PMIU.

b. Support capacity building in financial management aspects through structured capacity development programs.

c. Review and contribute to the finalization of business plans of CAAN. d. Contribute to the financial management improvements and revenue

enhancement measures. e. Devise the scope of implementable actions especially with regard to financial

management, based on review of policy studies conducted for CAAN and in consultations with CAAN.

f. Assist in preparation of Business Plan for Bairahawa Airport and a policy document on measures required for airports in the country including policy subsidies and their rationale.

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g. Assist Institutional Development Specialist in capacity development plan, including internal training programs as required on financial management and in business planning.

h. Develop revenue enhancement measures and other innovative approaches for sustainable O&M of tourism sites in consultation with the Project manager and the Government.

i. Assist in defining components/ elements of the proposed facility that can be defined (including management contracts) and delivered in a commercial format.

j. Assist in devising a strategy and guideline for private sector involvement in airport and related onsite services.

76. Air Space Operation Specialist (National)

a. Review existing air routes and procedure related to GBA. b. Design new air routes and procedure within Nepalese boundary in context of

new runway layout in GBA – in conformance with acceptable international practice.

c. Prepare final design and document acceptable to CAAN in consultation with CAAN experts.

b. Construction Supervision

77. Team Leader (International) As an engineer to the employer, lead construction phase team and take full responsibility to:

a. Supervise project implementation and construction of all facilities, including procurement of goods, installation of equipment, testing, and commissioning.

b. Supervise and coordinate with all experts during construction supervision phase. c. Control quality of all procurements. d. Supervise resident engineers, quality control engineer and related staff. e. Prepare variation orders. f. Check and certify contractor’s payment certificates. g. Periodically check quantities in BOQ and actual works performed. h. Negotiate with contractor for new work items. i. Carry out services during defects liability period. j. Prepare periodic progress report and project completion report.

Qualification:

a. Masters in civil engineering with 20 years of work experience in project design and construction supervision management of civil engineering project, particularly airport development or expansion project in the region supported by donor agency, preferably ADB. He/She should be conversant with ICAO standards and requirements and current procurement procedure of ADB.

Detail Responsibilities:

a. Approve contractor's work program, method statements, material sources, and safety plan.

b. Approve and/or issue working drawings, setting out of the works, and give instructions to the contractor.

c. Review quality control mechanisms of the contractor. d. Inspect materials and works to ensure compliance with specifications and give

immediate notice to contractor in the event that materials and works fail to comply with specifications.

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e. Accept or reject any part or parts of the completed works. f. Make measurements and keep measurement records. g. Maintain records, correspondence and diaries. h. Certify work volume and interim certificates for progress payments. i. Assist the employer’s representative with maintenance of consolidated project

accounts, and preparation of financial statements and withdrawal applications for submission to ADB.

j. Certify completion of part or all of the works. k. Assist the employer in preparing withdrawal applications for contractor payments. l. Periodically check remaining quantities, and constantly monitor each contract’s

costs. m. Review and recommend to employer variation orders, extensions of time, claims,

and other matters that may come from each contractor. n. Negotiate with each contractor and recommend the employer rates for any

unscheduled items of work that may arise. o. Advise the employer’s representative on all matters relating to the execution of

the works; and assist the representative with processing the contractor's possible claims.

p. Ensure compliance with the environmental and social impact mitigation requirements of civil works contracts, and provide information to ADB on those processes in monthly progress reports.

q. Prepare, at the completion of the contracts, a consolidated project completion report in ADB format.

r. Check and certify as-built drawings for the works prepared by contractor. s. Inspect the works at appropriate intervals during the defects liability period and

certifying the defects liability certificate for issuance by the Employer's representative.

t. Provide the Employer complete records, and inception, monthly, and completion reports.

u. Assist the Employer to provide on-site training where required for the Employer's field staff on quality assurance and contract administration.

v. Assist and train the Employer's staff to monitor and administer performance-based maintenance portion of the civil works contract (immediately following the full or sectional transfer of completed works).

w. Based on the type of bidding procedures and contracts, as advised by the Employer, prepare bidding documents for equipment packages. The bidding documents shall be prepared in accordance with ADB's latest applicable Standard Bidding Documents (SBD) available in the ADB website.

x. Provide all necessary assistance for procurement of contracts, including but not limited, to advertising the invitation to bid, bid clarifications, addenda, pre-bid meetings, bid openings, bid evaluation and reports, and draft contract documents.

y. Prepare monthly progress report as well as project completion report within the stipulated timeframe.

z. Assist in fulfillment of all the contractual obligations to contractors as part of the contract documents mutually signed in favor of employer.

78. Team Leader (National)

a. Supervise construction/project implementation on all facilities, including procurement of goods, installation of equipment, testing and commissioning.

b. Control quality of all procurement.

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c. Supervise resident engineers, quality control engineer, and other staff. d. Prepare variation orders. e. Check and certify contractor’s payment certificates. f. Check periodically quantities in BOQ and actual works performed. g. Carry out services during defect liability period. h. Prepare various reports.

78. Quality Control Engineer (International)

a. Carry out quality control/assurance as per standard procedures to meet the best international standard/practice, Review materials used for specific elements including sourcing.

b. Test materials to assess their tolerant as per standards tests applicable. c. Supervise quality control throughout the construction and production process. d. Monitor plant conditions and material reactions during use. e. Help to ensure that products comply with national and international legal and

quality standards. f. Assess the cost implications of materials used and alternatives, in terms of both

time and money. g. Carry out quality assurance as per standard procedures. h. Train Quality Control Engineer (National).

79. Quality Control /Materials Engineer (National)

a. Review materials used for specific elements including sourcing. b. Test materials to assess their tolerant as per standards tests applicable. c. Supervise quality control throughout the construction and production process. d. Monitor plant conditions and material reactions during use. e. Help to ensure that products comply with national and international legal and

quality standards. f. Assess the cost implications of materials used and alternatives, in terms of both

time and money. g. Carry out quality assurance as per standard procedures.

80. Architect (National)

a. Supervise the construction work to ensure in conformity with design. b. Issue alternative designs in case of changes demanded by circumstances. c. Assist Team Leader in meeting alternate planning and design requirements and

assessing cost implications.

81. Electronics and Navigation Specialist (International) a. Assist the Team Leader in administering contract package on supply and

installation of navigation and communication facilities. b. Supervise supply, installation and commissioning of navigation and

communication facilities. c. Coordination with the contractor to train CAAN personnel in operation and

maintenance of navigation and communication equipment. d. Train national specialist in handling the contract package independently.

82. Electronics and Navigation Specialist (National)

a. Assist the Team Leader in administering contract package on navigation and communication facilities.

b. Supervise installation of navigation and communication facilities.

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c. Coordinate with the contractor to train CAAN personnel in operation and maintenance of navigation and communication equipment.

83. Mechanical Engineer (National) a. Assist Team Leader in bid preparation and evaluation. b. Compare tender specifications with the type of CFR vehicle being delivered. c. Check the tendered specification with the type of spare parts being supplied. d. Certify for payment of the equipment and spare parts.

84. Electrical Engineer (National)

a. Supervise installation of all electrical works. b. Coordinate with the contractor to train CAAN personnel in operation and

maintenance of all electrical installation. 85. HVAC Engineer (National)

a. Supervise installation of all HVAC works. b. Coordinate with the contractor to train CAAN personnel in operation and

maintenance of all HVAC works.

86. Resident Engineer (Civil) 2 Nos. (National) a. Assist the Team Leader in administrative and execution of civil works contracts. b. Supervise construction and quality control of civil works. c. Supervise Overseers and other staff. d. Assist to prepare Variation Order. e. Assist in certification of works. f. Carry out inspection, check, testing of materials and workmanship. g. Check site measurement of works. h. Check and certify contractor’s payment certificates. i. Check periodically quantities in BOQ and actual works performed. j. Carry out services in defects liability period. k. Assist Team leader in preparation of various reports. l. Perform construction supervision of works as per design maintaining quality of

construction as per specifications. m. Check the as built drawings prepared by the Contractor. n. Review running bills versus actual implemented works on site, review variations

and recommend to the TL for decisions.

87. Safeguards Specialist Environment (National) a. Compliance monitoring during construction as per ADB procedure and as per

bidding document, b. Advise on environmental safeguard actions including impact assessments. c. Prepare management plan and mitigation measures d. Oversee implementation of environmental safeguards as part of project

implementation and preparation of compliance/ performance monitoring reports

3. Design and Supervision Consultant - LDT

88. The overall responsibility of management of the project will be with the Cultural Heritage expert (international staff), support by an assistant project manager (National). The primary responsibilities of the team would include:

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a. Design and manage the project components. b. Support LDT in preparing tourism management plan (to be carried out by a

separate consulting team), business plan preparation and its implementation. c. Establish project and LDT financial management systems. d. Design community based livelihood and tourism related products.

89. The overall design and management inputs would be 105 person months and the supervision inputs would be 25 man months. The international man month inputs is 12 person months. The Skill-sets and time inputs are presented below:

LDT: Design and Supervision and Capacity Building Consultants Person-months

Specialist Deputy Project Manager - Lumbini- (International Cultural Heritage Expert) 6

Heritage Architect (National- Assistant Project Manager) 24

Structural Engineer (National) 4

Environmental Engineer (National) 10

Heritage Landscape Architect (National) 8

Institutional Development Specialist (National) 6

Community Participation Specialist (National) 10

Heritage Architect (International) 6

Safeguard Specialist – Environment (National) 8

Safeguard Specialist – Social (National) 5

Procurement (National) 8

Financial Management (National) 10

Subtotal 105

Supervision Civil Engineer (National) 8

Field Engineer (National) 12

Quality Control (National) 5

Subtotal 25

Total 145

90. Design Stage

a. Carry out all surveys, studies and site investigations for the various Project components.

b. Prepare subproject appraisal reports. c. Update feasibility studies, prepare detailed design reports and environmental

assessment reports. d. Prepare bid documents, assist the EA in evaluation of bid documents and

preparation of bid evaluation report. 91. Construction Stage

a. Supervise and monitor the construction of work. b. Carry out quality control activities. c. Prepare and certify the contractor’s bills. d. Assist EA in issue of contract completion certificates, settlement of contractor's

claims, resolution of disputes etc. e. Serve as the engineer's representative within the context of the conditions of the

construction contracts.

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92. The consultants have a specific responsibility to ensure that the works are designed in accordance with international engineering standards, and are constructed to the prescribed quality in accordance with the specifications, bidding documents, and quality assurances. The consultants will work in close coordination with the Project Director at PMIU, and will also be responsible for preparation of Program Completion Reports in ADB format. 93. The major tasks of the consultants for management support during the planning, design and implementation phases of the project are generally as follows: 94. Survey, Investigations and Tests. Review available secondary data and reports and identify requirements of field surveys and other investigations. Based on the requirement assessment, consultants with the agreement of the Project Director, PMU will carry out all the required Engineering surveys and investigations such as total station surveys, geo-technical investigations, soil surveys, leak detection survey, construction material survey, ground water investigation i.e. hydro-geological investigations, rainfall data collection, traffic survey, identification of underground utilities and its mapping, water, wastewater, and solid waste sampling and analysis as required under the different sub projects. The survey will incorporate all the necessary features for design of all allied infrastructure. 95. Preliminary Design. Prepare technical and environmental appraisal report of the each subproject after carrying out detailed study of the subsectors and its priorities, feasibility and analysis of alternatives; and finalisation of preliminary designs for the most appropriate options. The preliminary designs will provide technical rationale of the proposed design option, describe design criteria & parameters, design horizon, tentative cost estimates, additional survey and investigation requirements for detailed design, identify statutory requirements and proposed implementation procedures. 96. For the environmental assessment of the subproject, consultants will first update rapid environmental assessment (REA) and based on the findings, consultant will prepare appropriate environmental assessment report following ADB’s environmental guidelines. 97. Detailed Engineering Designs. Once the preliminary designs are agreed, the consultants will prepare the detailed engineering. Designs will be sufficiently detailed to ensure clarity and understanding by the Project Director, PMIU. All the design should be in conformity with the international/country engineering standards. All necessary calculations will be prepared to determine and justify the engineering solution proposed for each subproject/component, and will be incorporated into the design reports. Based on the detailed engineering design, the consultants will prepare all necessary tender drawings, specification, bill of quantities, detailed cost estimates, implementation schedule, and quality control programs; prepare various bid packages considering ADB requirements and ease of implementation. The specifications will be detailed and use Indian/ international standards as well as meet ADB requirements. Consultant will prepare schedule of rates for the project based on the market prices and will update it annually. They will also prepare construction drawings with sufficient details to permit contractors to construct the work. For turnkey packages, for water treatment plants, sewage treatment plants, pumping stations and solid waste sanitary landfill disposal sites, consultant will prepare the Employer’s requirement with drawings in sufficient details based on their preliminary design for tendering, and during execution will review and approve of contractor’s design and drawings. 98. Bidding Documents. Prepare the necessary documentation required for National and International competitive bidding, shopping, etc. for all the procurement packages. The bidding

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documents will include instruction to bidders, Employer's requirements, general and special conditions of contract, technical specifications, bill of quantities, tender drawings, and forms of contract etc. Consultant will assist PMIU in bid evaluation, award of contract and contract signing etc. 99. Construction Supervision and Contract Monitoring. The consultant, as the engineer's representative under the contract, will supervise construction of all the project components; monitor construction methods and quality control; certify that the quality of works conforms to the specifications and drawings; assess the adequacy of the contractor's input materials, labour, equipment, and construction methods; resolution of contractual issues, furnish all revisions and detailed drawings as necessary during the continuance of the contract; attend third party inspections as necessary; examine the contractor's claims for variations/extension, additional compensation, etc., and prepare recommendation for approval by EA; assist in preparing planned maintenance procedures; assist; and check installation and commissioning. Record the work measurement, certify the contractor's claim and assist EA in contract monitoring and in preparation of the “as built” drawings. 100. Reporting. The consultant will be required to submit the following reports in due date and stipulated number of copies to the PMIU-LDT. The consultant will also be required to produce various other reports as required by the Project Director.

Report Due date No. of copies

Inception report One month after mobilizing 20

Monthly report1 First week of consecutive month 10

Quarterly and Annual Progress Report

2

Within two weeks of the end of the reporting 20

Interim report3 End of second year 20

Draft completion Report4 One month before completion of the services 20

Project completion report4 Within one month of the completion of the services 20

Other reports5 As necessary

1/ Brief monthly progress reports describing works and services performed and issues encountered during the reporting month and scheduled activities in the following month to be submitted in 10 copies within a week of the last day of the reporting month.

2/ Quarterly progress reports and annual reports, describing in detail the implementation progress of all project components with issues highlighted to be submitted in 20 copies within two weeks of the end of the reporting period.

3/ Interim report at the end of the second year to provide a broad view of the physical and institutional progress achieved, and make recommendations to the Government and ADB on suitable modifications to successful implementation of the Project. The report will be submitted in 20 copies two weeks prior to the midterm review.

4/ Draft project completion report one month before the completion of the services and f inal Project completion report within one month of the completion of the services.

5/ Detailed design drawings, cost estimates and bidding documents in the numbers specified for all contract packages. In addition, survey plans, topographic maps, base maps and final as-built drawings will be submitted as necessary.

a. Individual Consultant Terms of Reference – Design LDT

101. Deputy Project Manager – Cultural Heritage (International) a. Review all relevant reports and studies on management of Lumbini. b. Review the genesis and subsequent implementation of the Kenzo Tange master

Plan for the site, its rationale and the factors constraining its implementation.

46

c. Consult with all stakeholders and such as LDT, UNESCO and other local experts on the complexity of site management issues and issues relating to conservation and management of historic brick structures.

d. Assist LDT in formulation of the TOR for the proposed review of the Perspective Plan for the sites including Lumbini and the Master Plan for the LDT area.

e. Support LDT in review and recommendations on the master plan. f. Prepare capacity building plan for staff of LDT including management and

implementation of master plan for historical sites and implement training plan. g. Contribute to the design of the proposed visitor information centre and its

implementation in a modular form. h. Assist the design team on location decisions with regard to the proposed tourist

infrastructure facilities such as water, sanitation and waste management arrangements from a heritage perspective.

102. Heritage Architect and Assistant Project Manager (National) a. Lead design of TOR for surveys and investigations required for the design of the

Visitor information centre. b. Review the design as suggested by Kenzo Tange and propose options of a

modular structure and its fit within the Lumbini centre designs of Tange in consultation with the Dy PM and advise of Heritage Architect.

c. Complete design and supervise the implementation of the proposed Visitor Information Center at Lumbini and associated features such as landscaping and parking arrangements based on approval of the best option by LDT/other committee, in discussion with the PM, the DPM and other engineers.

d. Support to prepare Management Plan for the site including suggested improvement measures within the overall framework of the existing plan and areas where there could be changes based on the proposed Master Plan in consultation with the LDT.

e. Develop institutional and financial measures for sustainable management of LDT and possibly the other sites on a future date.

f. Contribute to designs for all elements (including working drawings). g. Make estimates in consultation with the engineers. h. Assist PMIU with overall management and supervision of construction works

and in the resolution of contractual issues and preparation of as-built drawings for the trails and associated facilities.

103. Structural Engineer (National) a. Support to design of all structural elements for the proposed visitors information

centre at Lumbini, basic service facilities such as parking, water supply, sanitation blocks and solid waste management arrangements with the overall guidance of the PM, DPM, the architect and engineer.

104. Environmental Engineer (National)

a. Lead design of TOR for surveys and investigations required for the design of the Visitor information centre.

b. Design the infrastructure facilities; prepare the drawings and estimates with the overall guidance of the PM, DPM and the architect.

c. Prepare bid documents, and support LDT in the bidding process in consultation with the procurement staff of LDT and the specialist.

d. Design for all elements (including working drawings). e. Estimate in consultation with the conservation architect.

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f. Assist PMIU in bidding procedures including invitation of bids, bid evaluation, and awards of contract for the road component associated bidding documents.

g. Assist PMIU with overall management and supervision of construction works and in the resolution of contractual issues and preparation of as-built drawings for the trails and associated facilities.

105. Institutional Development Specialist (National)

a. Review and in consultation with the review committee and the PM and Dy PM, update the TOR for the Master Plan for Lumbini, prepare the bid documents and support LDT in the process of selection of consultants for master Plan.

b. Prepare TOR and assist LDT in engaging consultant to carry out Supply Chain Analysis and in converting the analysis into useful livelihood products.

c. Lead preparation of Business Plan for LDT. d. Define the institutional restructuring measures if any for LDT and support LDT in

the process of management improvements. e. Prepare the capacity development plan as proposed for LDT and define the

work plan and content including leading internal training programs as required on aspects such community mobilization (in consultation with the CDT specialist) financial management (in consultation with the FM expert), business planning and community base tourism product design and marketing.

f. Guide and assist the financial management specialist in developing revenue enhancement measures and other innovative approaches for sustainable O&M of LDT.

g. Define a funding strategy (in consultation with FM) inclusive of components/ elements of the proposed facility that can be defined (incusing management contracts) and delivered in a commercial format based on the business plan.

h. Coordinate design and implementation of marketing activities proposed under the project.

i. Formulate supply chain analysis and need based community centered Skill Training activities in consultation with the community development specialist.

j. Support communities in transaction support (Link to Micro Finance, NGO Support Community Mobilization etc) in consultation with the community development specialist and financial management specialist.

k. Contribute to the project outcome monitoring indicators in consultation with PPM specialist and supervision consultants on management aspects.

106. Community Participation Specialist (National) a. Prepare TOR’s and support selection of entities/ individual for supply chain

analysis and IEC activities. b. Design supply chain analysis study and lead need based community centered

Skill Training activities in consultation with the institutional development specialist.

c. Support communities in transactions (Link to Micro Finance, NGO Support Community Mobilization etc) also design Demonstration Schemes for Heritage-Based Livelihoods in consultation with the institutional development specialist and financial management specialist.

d. Support LDT in selection of consultant for Supply chain analysis, IEC and training activities under the project.

e. Review IEC of materials, coordination of workshops and community consultations.

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107. Heritage Architect (International) a. Guide the national heritage architect in design of TOR for surveys and

investigations required for the design of the Visitor Information Centre (VIC). in consultation with the Dy PM and contribute to the design of the VIC as suggested by Kenzo Tange and propose options of a modular structure and its fit within the Lumbini centre designs of Tange.

b. Complete design and supervise the implementation of the proposed Visitor Information Center at Lumbini and associated features such as landscaping and parking arrangements. based on approval of the best option by LDT/ other committee in discussion with the PM, the DPM and other engineers.

c. Support to prepare Management Plan for the site including suggested improvement measures within the overall framework of the existing plan and areas where there could be changes based on the proposed Master Plan in consultation with LDT.

d. Develop institutional and financial measures for sustainable management of LDT and possibly the other sites on a future date.

e. Review the relevance of the existing Master Plan and contribute to the update of the master plan for Lumbini area.

108. Heritage Landscape Architect (National) a. Compile and study all available reports on the present and past landscape of

Lumbini and the surrounding area, from local, national, and international libraries archives, in order to understand the extent of knowledge available on the subject and the specific content of that knowledge as it pertains to appropriate species and historic garden design.

b. Compile and study all available reports of indigenous plants particularly plants of importance to the area.

c. Consult with local experts on landscape management and also with experts on the subject of appropriate gardens for Buddhist monasteries and sites, from within the site.

d. Design landscape changes and improvements as may be appropriate, bearing in mind that the historic authenticity of the landscape is the overriding factor, but keeping in mind other relevant factors such as conservation of the archaeology; provisions for landscape maintenance; and coherence with any master planning in close cooperation with the Buddhist community.

e. Minimize the amount of landscape engineering and other major changes to the existing terrain that will be required.

f. Prepare a manual of practice to guide the execution of landscape works and as a reference for the on-going care and maintenance of the landscape and to guide any future interventions in the landscape that may be forthcoming.

109. Cultural Heritage Conservation Specialist (International) a. Design and supervise the implementation of all conservation work, restoration,

removal, addition, rearrangement and other interventions/alterations to the physical structure and layout of Buddhist monasteries and other sites of Buddhist heritage significance, affected by the subproject, with particular attention to preserving the authenticity and integrity of the physical heritage.

b. Assist the Project Manager in devising and implementing systems of monitoring the activities of the sub-project before, during and after execution in order to determine and, if possible, measure, both the positive and negative impacts the subproject activities have on the authenticity and state of conservation of the

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physical attributes of the Buddhist cultural heritage (landscape, architecture, movable cultural property) of Sikkim and the integrity and continuity of practice of the intangible aspects of this heritage (ritual practices, festivals and performing arts, social and education services, and community involvement in support of traditional culture).

c. Identify those activities of the subproject which will or are likely to have a direct impact on the tangible or intangible cultural heritage assets of Sikkim, and advise the team leader on appropriate mitigation measures to be taken.

110. Safeguards Specialist Environment (National): Support and advice PMIU and consultant team to:

a. Prepare ADB procedure compliant environmental safeguard actions including impact assessments if any during the design stage.

b. Prepare management plan and mitigation measures. c. Oversee implementation of environmental standards and safeguards as part of

project implementation. d. Prepare performance monitoring reports.

111. Safeguards Specialist Social (National): Support PMIU and the design team to:

a. Prepare and implement ADB compliant resettlement plans if any based on the approved framework.

b. Oversee implementation of RP. c. Lead community consultation during design phase of components and as part of

the preparation of the Local Area Plan. d. Prepare performance monitoring reports.

a. Individual Consultant Terms of Reference – Supervision LDT

112. Civil Engineer (National) a. Lead supervision of all civil works and infrastructure components under the LDT

subproject. 113. Field Engineer (National)

a. Supervise civil works and infrastructure. 114. Quality Control Engineer (National)

a. Review materials used for specific elements including sourcing. b. Test materials to assess their tolerant as per standards tests applicable c. Supervise quality control throughout the construction and production process. d. Monitor plant conditions and material reactions during use. e. Help to ensure that products comply with national and international legal and

quality standards. f. Assess the cost implications of materials used and alternatives, in terms of both

time and money.

4. Consultants for Preparation of Master Plan for Lumbini Development Area

115. Scope. The scope of work would consist of preparation of a perspective plan for the Lumbini Development area that would encompass the historical sites around Lumbini and a Master Plan for the area under the LDT.

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116. Perspective Plan. This will include the following tasks:

a. Develop a perspective plan for the development of Lumbini development area comprising both the Lumbini master plan area as well as adjoining villages that involve among others the sites related to the life of the Lord Buddha.

b. Undertake an assessment of economic, social, cultural and religious, and administrative linkages of Lumbini master plan area with its surrounding region.

c. Assess the constraints to the sustainable and inclusive socio economic growth of the region.

d. Develop a set of strategies to reinforce the mutual positive linkages between Lumbini master plan area and its surrounding for the ultimate objective of socioeconomic development of this rather poor region of Nepal. The strategies will include among others the following. • A strategy for protection and sustainable management of

Buddhist/heritage sites around Lumbini master plan area. • A strategy for the inclusion of these sites in the Nepal heritage tourism

map in general and Lumbini heritage tourism map in particular. • A strategy to maximize economic and social benefits from Lumbini to its

surrounding communities as well as mitigating threats from the surrounding of Lumbini to Lumbini master plan area.

• A strategy to protect cultural values, environment and necessary land use.

e. Assess the administrative and regulatory implications of the perspective plan and make practical recommendations to facilitate the implementation of the perspective plan.

117. Lumbini Master Plan. This will involve the following: a. Identify the attributes and elements that give Lumbini its outstanding universal

value, define authenticity and integrity for the site and redefine the boundaries and buffer zones of World Heritage Site (WHS).

b. Review the Kenzo Tange’s master plan and assess its contemporary relevance in terms of space use, design parameters, cost of the implementation in relation to available and projected resources, and spiritual and cultural norms.

c. Assess the changes that are required to enhance the contemporary relevance of the Kenzo Tange’s plan.

d. Prepare a plan that provides guidelines for the physical development and preservation of both the WHS and the master plan area.

e. Assess the requirements for environmental improvements, visitor infrastructure and services, enhanced presentation and interpretation of Lumbini historic Buddhist site as well as archaeological remains and related cultural heritage.

f. Identify the financial resource requirements of implementing revised Lumbini master plan and operation and maintenance of protection works and infrastructure and services and visitor management; develop a financial action plan to enable LDT to gradually meet its operation and maintenance requirements in the short term, and investment requirements of the revised master plan in the medium and long term. This should include among others assessing revenue sources and revising and introducing new fees and charges for various services for visitors in the master plan area.

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g. Develop a focused plan of action to enhance the support of the local communities for the protection and management of Lumbini master plan area based on findings of the Perspective Plan

h. Develop a focused plan to increase the benefits from Lumbini to the surrounding local communities based on the Perspective Plan findings and strategy,

i. Review the organizational structure and staffing constraints of LDT to the implementation of the master plan and develop an organizational and staff development plan.

b. Individual Terms of Reference for Lumbini Master Plan

118. Regional and Urban Planner (International) a. Lead the overall preparation of the plan for the defined area inclusive of

perspective plan covering Lumbini and the other historical sites around and the Master Plan for the area under the Lumbini Development Area;

b. For the LDT area: • Prepare an updated land use plan. • Identify investment needed to implement the Master Plan. • Coordinate design of development regulations. • Manage improvement required in the short term and structure required to

implement the Master Plan. • Establish linkages with local administration and provide relevant

recommendations. • Prepare a business plan that would form the basis of setting rates and

charges for proposed developments in the LDT. c. For the region, as part of the perspective plan,

• Define the priority development needs of other historic sites. • Define community based tourism development products. • Prepare community based site management plans. • Prepare road map for development of associated sites.

d. Lead all consultations with the review committee and the local communities on the Plan.

119. Cultural Heritage Protection and Management (International)

a. Review all relevant reports and studies on management of Lumbini. b. Review the genesis and subsequent implementation of the Kenzo Tange master

Plan for the site, its rationale and the factors constraining its implementation. c. Outline the conditions under which Kentzo Tange’s plan can be implemented;

the resource requirements and management measures; and alternatively the best option to implement the basic principles of Tange’s design and the permissible levels of modifications based on review and consultation.

d. Lead the technical discussions on this issue consult with all stakeholders and such as LDT, UNESCO and other local experts on the complexity of site management issues and issues relating to conservation and management of historic brick structures.

e. Prepare a capacity building plan for staff of LDT including management and implementation of master plan for the site as well as the other historical sites.

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120. Heritage Tourism Expert (International) a. Lead the design, development and marketing strategy for community based

tourism activity and strengthening of community based tourism activities as part of the proposed plan as well as structure the institutional arrangements of LDT to address these products in the medium term.

b. In consultation with other experts, develop institutional and financial measures for sustainable management of LDT and possibly the other sites on a future date.

121. Regional Economist and Planner (National)

a. Lead socio economic surveys and assessments required for preparation of the perspective plan for the region and the master plan for the LDT plan area under the overall guidance of the Team leader.

b. Prepare an investment plan and a resource mobilization plan keeping in view the proposed plan.

c. Carry out economic and financial analysis of the proposed investments.

122. Cultural Heritage Protection and Management (National) a. Work in collaboration with the international expert in terms of review all relevant

reports and studies on management of Lumbini b. Review the genesis and subsequent implementation of the Kenzo Tange Master

Plan for the site, its rationale and the factors constraining its implementation. c. Outline the conditions under which Kentzo Tange’s plan can be implemented

and the resource requirements and management measures and alternatively the best option to implement the basic principles of Tange’s design and the permissible levels of modifications based on review and consultation.

d. Support consultation with all stakeholders and such as LDT, UNESCO and other local experts on the complexity of site management issues and issues relating to conservation and management of historic brick structures.

e. Prepare a capacity building plan for staff of LDT including management and implementation of master plan for historical sites.

123. Heritage Tourism (National). On advice from international heritage tourism specialist: a. Lead the surveys and assessment. b. Participate in the design, development and marketing strategy for community

based heritage tourism activity. c. Define strengthening of community based tourism activities as part of the

proposed plan as well structure the institutional arrangements of LDT to address heritage tourism products in the medium term.

d. Develop institutional and financial measures for sustainable management of LDT and possibly the other sites on a future date in consultation with other experts.

124. Land use and Infrastructure Planner (National) a. Compile information on existing land sues, lead all physical surveys required for

preparation of the land use for LDT administered area. b. Define the development controls for the area. c. Prepare the investment requirement for implementation of the Master Plan and

indicative needs of associated historical sites.

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125. Public Transport Specialist/Team Leader (International) a. Prepare Comprehensive Mobility Plan (CMP) for the Lumbini area that covers

the districts of Rupandehi, Kapilbasthu and Nawalparasi in cooperation with the Public Transport Specialist (National) to be recruited separately. Carry out transportation surveys, if necessary. The CMP will focus on key destinations in the area including GBA, the Lumbini World Heritage Site (WHS) and nine other sites connected to it, the Bhairahawa Special Economic Zone (SEZ), and the Kaspilvastu SEZ. The CMP must incorporate the proposal for EV operations for moving visitors among various parts within the Lumbini WHS, which is prepared by the University of Tokyo team. The CMP will become a part of Integrated Management Plan (IMP) for the Lumbini WHS.

b. Make appropriate leasing arrangements of the EVs and trade-in arrangements of existing diesel/gasoline engine buses/cars with the two bus committees and licensed taxi operators based on the CMP.

c. Make appropriate leasing arrangements of the electric-power-assisted rickshaws with the owners of existing (licensed) rickshaws based on the CMP.

d. Prepare tender documents of EVs and hand-hold the (ICB or LIB) procurement. e. Prepare tender documents of electric-power-assisted rickshaws and hand-hold

the (ICB or LIB) procurement. f. Assist the Public Transport Specialist (National) who will design associated

physical facilities (e.g., maintenance depot for EVs and electric-power-assisted rickshaws, and vehicle stops with appropriate lighting), prepare related tender documents, hand-hold the procurement, and supervise construction.

126. Urban Planning Specialist (International)

a. Prepare a subset of the Comprehensive Mobility Plan (CMP) that specifically focuses on the Lumbini World Heritage Site (WHS) in cooperation with the Public Transport Specialist (international) and Public Transport Specialist (national) to be recruited separately. The CMP subset must incorporate the proposal for EV operations for moving visitors among various parts within the Lumbini WHS. The CMP will be consistent with the Integrated Management Plan (IMP) for the Lumbini WHS.

b. Assist the Public Transport Specialist (international) who will prepare tender documents of EVs regarding their design specifications, and follow up on proper incorporation of the design specifications with the winning bidder.

c. Assist the Public Transport Specialist (international) who will prepare tender documents of electric-power-assisted rickshaws regarding their design specifications, and follow up on proper incorporation of the design specifications with the winning bidder.

d. Assist the Public Transport Specialist (national) who will design associated physical facilities (e.g., maintenance depot for EVs and electric-power-assisted rickshaws, vehicle stops with appropriate lighting, etc.) regarding their design specifications.

127. Electric Engineer (National)

a. Design the solar power plant, prepare tender documents for the procurement and installation (and, possibly, PPP-style operation and maintenance (O&M) element incorporated), and hand-hold its (ICB) procurement.

b. Prepare a power purchase agreement with NEA and facilitate its signing between LDT and NEA.

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c. Design associated electric elements of the physical facilities (e.g., maintenance depot for EVs and electric-power-assisted rickshaws, vehicle stops with appropriate lighting), prepare related tender documents, hand-hold the procurement, and supervise electric works, in cooperation with the Public Transport Specialist (national) who will be responsible on the civil works concerned.

d. Prepare an appropriate operational strategy of the solar power plant and the “oversized” fleet of EVs, which are collectively expected to work as an energy storage system (ESS) to address the issues of power generation time and EV usage time overlap (both daytime), unpredictable weather conditions, and peak/off-peak seasonal fluctuation of the number of visitors.

e. Summarize the operational strategy prepared in an operational manual and carry out training for the LDT operational staff and the operators of EVs.

128. Safeguards/Gender Specialist (National)

a. Carry out safeguards due diligence on all the components of LCPTP with respect to environment, land acquisition and resettlement, and indigenous people. Advise three other fellow consultants to be recruited for the same assignment in this regard, if necessary.

b. Carry out environmental and social surveys to monitor the implementation of LCPTP.

c. Explore and facilitate employment of more female workers for various jobs in cooperation with the Public Transport Specialist (international) and Public Transport Specialist (national) who will coordinate with various private parties concerned (e.g., the two bus committees, licensed taxi operators, rickshaw owners).

d. Provide training for prospective as well as already employed female workers, as necessary.

e. Monitor the achievements of employment of female workers during the implementation of LCPTP.

VII. SAFEGUARDS

129. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),29 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. Safeguards categorization – environmental and social, documentation and institutional roles for compliances under the project are summarized below. 130. Environmental Safeguards: The Project with additional financing has environmental safeguards categorization level B per ADB’s Safeguard Policy Statement 2009, and Environmental Management Plan (EMP) was prepared for GBA and the Lumbini projects as part of the Initial Environmental Examination (IEE) report which is available in Supplementary Appendix to the RRP. The following are institutional roles and responsibilities to ensure EMP are implemented during design and construction stages. 131. The EA (MOCTCA) is responsible for ensuring environmental protection in project activities, whereas CAAN (IA) is responsible to implement EMP. The IA will conduct baseline monitoring, compliance monitoring and impact monitoring as guided by the GON provisions and safeguard policy requirement of ADB.

29

Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf

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132. The MOTCA, CAAN and LDT shall ensure that (i) the Project is carried out in accordance with the project design, and construction and operations will comply with applicable environmental laws of Nepal and ADB's Safeguard Policy Statement 2009; (ii) the relevant environmental mitigation measures specified in the Environmental Management Plans are incorporated in tender and bidding documents; (iii) works contractors' specifications include requirements to comply with the environmental mitigation measures contained in the Environmental Management Plans; (iv) works contractors are closely supervised to ensure proper implementation of mitigation and management measures; (v) the Project environmental performance will be monitored; and (vi) a monitoring report describing the progress in implementing the EMP and measures adopted to address environmental issues, if any, is prepared and submitted annually to ADB. 133. Project Coordination Unit. The PCU established within MOTCA will coordinate the project and perform consolidated project performance monitoring and reporting. Specifically, it is tasked to: (i) confirm IEEs/EMPs are updated based on detailed designs; (ii) confirm whether EMPS are included in bidding documents and civil works contracts; (iii) provide oversight on environmental management aspects of the Project and ensure EMPs are implemented by PIU, DSC consultants, and contractors; (iv) establish a system to monitor environmental safeguards of the project including monitoring the indicators set out in the monitoring plan of the EMP; (v) facilitate and confirm overall compliance with all Government rules and regulations regarding forest and environmental permits and clearances as well as any other approved environmental guidelines, as relevant; (vi) supervise and provide guidance to the DSCs to properly carry out the environmental assessments; (vii) review, monitor and evaluate the effectiveness with which the EMPs are implemented, and recommend necessary corrective actions to be taken as necessary; (viii) consolidate quarterly environmental monitoring reports from PIU and submit annual monitoring report to ADB; and (iv) ensure timely disclosure of final IEEs/EMPs in locations and form accessible to the public. 134. An Environment and Social Unit (ESU) within the PMIU at CAAN at the GBA, will be maintained with two fulltime positions. A Social Development Specialist (SDS) will oversee and manage social issues and social safeguards, an Environment Specialist (ES) will provide overall direction for management of environmental issues. The involvement of UNESCO in the review panel for design and review of the management plan shall ensure conformance to the safeguards and requirements of the UNESCO for WHS protection and management. 135. Project Management and Implementation Unit. The PMIUs, with the assistance of Design, Supervision, and Management Consultants (DMS), are to: (i) ensure IEEs and EMPs are updated by DSC during detailed design stage; (ii) ensure EMPs are included in bidding documents and civil works contracts; (iii) ensure compliance with all Government rules and regulations regarding forest and environmental permits and clearances; (iv) oversee implementation of EMPs including environmental monitoring by contractors; (v) take corrective actions when necessary to ensure no environmental impacts; and (vi) submit quarterly environmental monitoring reports to the PMIU. 136. Social Safeguards (Involuntary Resettlement, Gender, and Poverty Reduction and Social Strategy): An updated RP for the additional financing of the Project (available as a Supplementary Appendix to the RRP), was prepared for the GBA and outlines the objectives, policy principles, and procedures for land acquisition, compensation, and other assistance measure for affected persons (APs) The revised RP found that the expansion of the GBA requires land acquisition of 869 land plots belonging to 389 households. A summary poverty

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reduction and social strategy (SPRSS) was prepared for the additional financing of the project. The poverty analysis classified the Project as a General Intervention which is expected to result in additional employment during construction and operation, and improved living conditions for local populations including the poor.The PMIU/CAAN will be responsible for ensuring the updating and implementing the RP and Social Strategy. 137. Project Coordination Unit. The PCU is to (i) conduct internal monitoring of resettlement process to ensure smooth implementation; (ii) ensure PIUs with assistance from DSC during the detailed design state; (iii) ensure timely payments of compensation and other entitlements as per the RPs and made before land acquisition and commencement of civil works; (iv) ensure ongoing consulting consultations with communities and affected persons; and (v) submit semiannual monitoring reports to ADB that describe the progress of the implementation of resettlement activities and any compliance issues and corrective actions. 138. Project Management Implementation Units. PMIUs are to (i) to ensure all RPs are updated based on detailed designs; (ii) engage in ongoing meaningful consultations with stakeholders and affected persons; (iii) implement resettlement plans with support from acquisition and commencement of civil works; (v) ensure all training and capacity building activities are provided to affected persons; (vi) ensure all grievances are addressed and when necessary activate the Grievance Redress Committee; (vii) take corrective actions where necessary; (viii) submit quarterly monitoring reports to PMIU and clearly communicate the implementation status of RPs and the status of APs throughout the project period; and (ix) provide relevant information to PMC towards external monitoring. 139. Civil Works. The Government will ensure that civil works contracts and bidding documents under the Project include specific provisions requiring contractors to comply with all (a) applicable labor laws and core labor standards on (x) prohibition of child labor as defined in national legislation for construction and maintenance activities, on (y) equal pay for equal work and (b) the requirement to disseminate information on sexually transmitted diseases including HIV/AIDS to employees and local communities surrounding the Project sites. Civil works will commence only after all compensation and entitlements are disbursed to APs.

VIII. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework

140. The revised design and monitoring framework (DMF) of the additional financing for the Project is Annex 1. B. Monitoring

141. Project performance monitoring: The PCU and PMIUs will continue to use the Project’s baseline indicators, and will update and maintain the established project performance management system using the targets, indicators, assumptions, and risks in the revised DMF, including how beneficiaries will be involved in project monitoring and/or evaluation. The PMU will conduct regular monitoring using the same indicators and submit the reports to ADB throughout project implementation. Results of a comprehensive completion survey will be included in the project completion report. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the PMU's quarterly progress reports and after each ADB review mission. These quarterly

57

reports will provide information necessary to update ADB's project performance reporting system.30 142. Compliance monitoring: The MOCTCA/PMU will monitor compliance with loan covenants– policy, legal, financial, economic, environmental, and others— and the status of compliance will be reviewed at each ADB review mission. All non-compliance issues, if any, will be updated in quarterly progress reports together with remedial actions. Each ADB review mission will also monitor the status of compliance with loan assurances and raise the non compliance issues with the government and agree on remedial actions. 143. Safeguards monitoring: The Project is classified as category B for involuntary resettlement and category B for environmental impact. The PMU submits regular social safeguard monitoring reports to ADB that are disclosed in accordance with ADB’s Safeguards Policy Statement, 2009. Status of implementation of the EMP and EARF, and resettlement plan and resettlement framework will be discussed at each ADB review mission and integrated into quarterly progress reports. C. Evaluation

144. The Government and ADB will jointly review the Project at least once per quarter. This will include (i) the performance of the PMIUs (in CAAN, LDT), consultants and contractors; (ii) physical progress of GBA construction and effectiveness of safeguards; (iii) compliance with loan/grant assurances; and (iv) assessment of sustainability in technical and financial terms. Within 6 months of physical completion of the Project, MOTCA will submit a project completion report to ADB31. D. Reporting

145. The MOTCA, CAAN and LDT shall ensure that within 3 months of the Effective Date, a Project Performance Monitoring System (PPMS) shall have been established in a form and with a composition acceptable to ADB, based upon the PPMS indicators agreed upon between Nepal and ADB. Nepal, CAAN and LDT shall collect base line data for performance monitoring and undertake periodic Project performance review in accordance with the PPMS to evaluate the scope, implementation arrangements, progress and achievements of objectives of the Project. 146. The PCU established within MOTCA will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; required from Nepal under Section 6.05(b) of the Loan Regulations and Section 6.04(b) of the Grant Regulations and required from CAAN and LDT under Section 2.08(b) of the Project Agreements; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the EA executing agency AFSs, together with the associated auditor's report, should be adequately reviewed.

30

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

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

58

The borrower is to prepare a project completion report with the timing determined in consultation with ADB. E. Stakeholder Communication Strategy

147. Project information will be strategically disseminated through media at main milestones including contract awards and project completion. This strategy will incorporate the measures included in the RP, SPRSS and EMP supplementary appendices.

IX. ANTICORRUPTION POLICY

148. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project32 . All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project33. 149. To support these efforts, relevant provisions are included in the financing agreement and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project will include provisions specifying the right of ADB to audit and examine the records and accounts of the EA executing agency and all contractors, suppliers, consultants, and other service providers as they relate to the Project. 150. Furthermore, the Project intends to maximize transparency, as described in Section VIII. E above. Full information disclosure and participatory monitoring at both the central and the local levels are expected to be effective in reducing the risk of corruption and improving governance at central and local levels. Grievances regarding subprojects will be first addressed at PMIUs, but if not completely redressed, they will then be discussed at the project management committees.

X. ACCOUNTABILITY MECHANISM

151. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism34 . 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 a good faith effort 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 Mechanism35. 152. A Grievance Redress Mechanism has been established for the RP and EMPs, with representatives of the affected area persons within GBA, the GBA authority, local representatives, and representatives from CAAN in the rank of Airport Manager. Details on procedures are specified in the RP and IEE supplementary appendices.

32

Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 33

ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp 34 For further information see: http://compliance.adb.org/. 35

For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

59

XI. RECORD OF PAM CHANGES

153. The PAM Version 1, dated May 2010 has been revised and agreed upon with the Government the fact-finding of the additional financing loan grant.

60 Annex 1

REVISED DESIGN AND MONITORING FRAMEWORK (DMF)1

Design Summary Performance Targets and Indicators with

Baselines Data Sources and

Reporting Mechanisms Assumptions and

Risks Impact

Current project Current project Current project For all indicators

Current project

Enhanced contribution of tourism to sustainable and inclusive growth in the country

(i) A 30% increase in the aggregate contribution of tourism to GDP by 2020.

(ii) A 12% increase in total employment from additional tourism-related jobs by 2020 from 3% total employment in 2009.

Tourism statistics of Nepal World Tourism Organization statistics World Travel and Tourism Council’s Annual Tourism Travel and Economic Research Country Socioeconomic Indicators

Assumption The country remains committed to tourism development in a sustainable and inclusive manner Risks Political uncertainty and inadequate security Economic upheavals

Overall project Unchanged

Overall project (i) Tourism’s aggregate contribution to GDP

increases by 35% by 2020 (from 3.6% in FY2009).

(ii) Unchanged

Overall project Unchanged

Overall Project Assumptions Unchanged Risks Unchanged

Outcome

Current project Current project Current project For all indicators

Current project

Nature - and culture-based tourism destinations of country importance (i) improved connectivity, (ii) better quality environment and visitors services, (iii) enhanced natural and cultural heritage, and (iv) stronger linkages with communities.

By 3 to 5 years after project completion: (i) Connectivity to Lumbini improved – Tourist arrivals increased by 25% – Number of trips to Lumbini increased by 20%

(ii) Lumbini destination improved – Tourist’s average daily expenditure

increased by 10% – International tourists’ average length of

stay increased by 1 day (iii) Lumbini master plan is guiding

management; sustainable heritage and tourism action plans being implemented; about 100 staff trained in heritage and tourism asset management by the end of the project

(iv) Around 400 individuals spread over 10 communities have undergone training on heritage management and tourism-related skills by end of the project

(v) About 20,000 jobs created in the tourism industry and other industries related to tourism, and at least 2,000 livelihoods created benefiting local people living around the sites

Tourism reports and statistics of Nepal World Tourism Organization statistics World Travel and Tourism Council’s Annual Tourism Travel and Economic Research Proceedings of the task force meetings Project completion reports

Risk Delays in implementation of institutional financial and operation improvement action plans.

Overall project Nature-and culture-based

Overall project (i) a. International tourist arrivals in Lumbini

increased by 100% in 2017 from 82,000 in

Overall project Unchanged

Overall project Risk Global economic

1 Some changes in the DMF were reflected to align with the current DMF guidelines.

Annex 1 61

Design Summary Performance Targets and Indicators with

Baselines Data Sources and

Reporting Mechanisms Assumptions and

Risks

tourism destinations improved

2009 b. Number of trips to Lumbini increased by 20%

(ii) a. Average daily expenditure by international tourists increased by 50% in 2017 from $24 in 2009 b. Average international tourist length of

stay increased by 1.6 days in 2017, from 1 day in 2009

(iii) a. About 20,000 jobs created in the tourism and related industries by 2017 b. At least 2,000 livelihoods created

benefiting local people living around the site

(iv) Tourists’ public transport service usage (i.e., ridership) increased by 100%.

crisis adversely affect domestic and international tourism

Outputs Current project

Current project

Current project For all indicators

1. Enhanced connectivity

By the end of the project: GBA upgraded to a regional international airport, resulting in enhanced access to Lumbini

Project quarterly progress reports ADB review mission reports Proceedings of task force meetings Project completion report Reports of national tourism organizations Reports of sector agencies, e.g., CAAN reports, and reports of national public works departments

Overall project Enhanced connectivity to and from Lumbini

Overall project GBA upgraded to an international airport by 2017

Overall project Unchanged

2. Improved destination

Current project Current project Current project For all indicators

Current project

By 2015, upgrading of Lumbini Development Area completed, including (i) development of car parking and bus stop and pedestrian walkway at the entry of the site, (ii) completion of the unfinished portion of the perimeter road around the site, (iii) provision of local source-based drinking water supply and toilets in several key locations, (iv) solid waste management improvements, (v) enhancement of on-site interpretation displays and signage, and (vi) construction of a visitor center and landscaping and pedestrian walkways around the center.

Project quarterly progress reports ADB review mission reports Proceedings of task force meetings Project completion report Reports of national tourism organizations Reports of other international agencies, e.g., UNESCO Reports of national sector agencies; e.g., Lumbini Development Trust

Assumptions Capacities were built for sustainable protection and management of heritage tourism destinations Communities were engaged in heritage management and tourism activities Risks: Community engagement is limited

Overall project Improved community services and

Overall project (i) Indicators unchanged but timeline moved

to 2017 (ii) Clean public transport services for tourists

Overall project Unchanged

Overall project Unchanged

62 Annex 1

Design Summary Performance Targets and Indicators with

Baselines Data Sources and

Reporting Mechanisms Assumptions and

Risks

tourism facilities inside Lumbini available starting 2017

3. Enhanced capacity, increased community participation and improved management

Current project

Current project By 2015, capacity development : (i) 50 staff of tourism ministries, board, and departments have undergone training in tourism planning, coordination, monitoring, and marketing (ii) A marketing and promotion program has been prepared and implementation initiated under regional TA (iii) Management and master plans for Lumbini prepared and endorsed (iv) Organizational and financial management measures for the LDT developed and being implemented (v) 15 LDT staff have undergone training on planning, protecting, and managing the nature and culture-based sites, as well as world heritage site (vi) A business plan for GBA prepared with measures for sustainable operation and management of the airport, including enhanced revenue base and financial management. Staff have undergone training in airport management (vii) Stronger partnerships between communities, tourism industry, and governments at destinations established (viii) Action plan to promote subregional cooperation in tourism being implemented Fostering Community Participation: (a) Community awareness raising programs

conducted on value of natural and cultural heritage and role of community in management of heritage sites, and potential benefits from heritage-based tourism to the local economy

(b) Value chain analyses undertaken in each country to establish stronger linkes between tourism and local economies

(c) Pilot schemes for tourism-based livelihood generation involving social mobilization and microfinance services designed and implemented

(d) Tourism-related skills development activities in heritage management and hospitality-related skills among the communities around Lumbini implemented

(e) Partnerships between communities, private sector, and public sector established for

Current project For all indicators Project quarterly progress reports ADB review mission reports Proceedings of task force meetings Business plans and annual accounts of sector organizations Project completion report Reports of national tourism organizations Reports of country sector agencies

Current project Assumptions Sector agencies remain committed to develop capacities and take necessary actions for institutional and financial improvements. Sector agencies make staff available for training. Sector agencies remain committed to involve communities and establish partnerships with them and communities are willing to engage in heritage management and tourism.

Annex 1 63

Design Summary Performance Targets and Indicators with

Baselines Data Sources and

Reporting Mechanisms Assumptions and

Risks

enhanced site management and viable community tourism product development

Overall project Improved capacity in tourism development and project management

Overall project By 2017, capacity development:: (i) Unchanged (ii) Moved under Activities (iii) Management and master plans for Lumbini endorsed (iv) Organizational and financial management measures for the LDT implemented (v) 15 LDT staff have undergone training on planning, protecting, and managing the nature and culture-based sites, as well as world heritage site (vi) a. Business plan for GBA completed with measures for sustainable operation and management of the airport, including enhanced revenue base and financial management. b. 20% of staff have undergone training in airport management (vii) Partnership agreements between communities, tourism industry, and governments at destinations signed (viii) Action plan to promote subregional cooperation in tourism implemented (ix) About 100 staff trained in heritage and tourism asset management by the end of the project (x) Around 400 individuals spread over 10 communities have undergone training on heritage management and tourism-related skills by end of the project * Fostering Community Participation indicators moved under activities.

Overall project Unchanged

Overall project (a) Unchanged (b) No significant

movement of trained staff occurs.

Activities with Milestones (Overall Project) Inputs

Output 1: Enhanced connectivity to and from Lumbini 1.1 Consultants appointed by 31 August 2011 (completed) 1.2 Engineering design and tender documents prepared by 30

September 2013 (completed) 1.3 Contract awarded and construction started by 30 June 2014

(additional) 1.4 Construction completed by 30 June 2017 Output 2: Improved community services and tourism

facilities 2.1 Consultants appointed by 31 August 2011 (completed) 2.2 Detailed design for infrastructure improvements prepared by

20 February 2012 (completed) 2.3 Contract awarded and construction commenced by 30

September 2013 (completed) 2.4 Construction completed by 30 June 2016 (ongoing) 2.5 Procurement and deployment of electric vehicles by 30 June

2017 (additional) Output 3: Improved capacity in tourism development and

project management 3.1 PCU and PMIUs established by 31 October 2010 (completed) 3.2 NGOs recruited by 31 March 2014 (ongoing)

Loan and Grant ADB $25.5 million (current) $30.0 million (additional) $55.5 million (overall) Grant ACEF $0.0 million (current) $3.0 million (additional) $3.0 million (overall) Government $6.0 million (current) $17.71 million (additional) $23.71 million (overall) Loan OFID $15.0 million (current) $0.0 million (additional)

64 Annex 1

3.3 Community awareness raising programs on tourism management commenced by 31 May 2014

3.4 Partnerships between communities, private sector, and public sector established for community tourism by 31 December 2014

3.5 Value chain analyses undertaken by 31 May 2015 3.6 Capacity development of agencies and the community skills

training and social mobilization programs commenced by 31 May 2014 to be complete by 31 May 2015

3.7 Marketing and promotion program prepared and implemented by 31 May 2015

3.8 Pilot schemes for tourism-based livelihood programs designed and implemented by 31 December 2015

3.9 Tourism-related skills development activities around Lumbini implemented by 31 December 2015

3.10 Cultural heritage sites master plans initiated by 30 November 2014 and completed by 31 December 2016

$15.0 million (overall)

ADB = Asian Development Bank; ACEF = Asian Clean Energy Fund; CAAN = civil aviation authority of Nepal; GBA = Gautam Buddha Airport; GDP = gross domestic product; LDT = Lumbini Development Trust; NGO = nongovernment organization; OFID = OPEC Fund for International Development; PCU = project coordination unit; PMIU = Project Management and Implementation Unit; UNESCO = United Nations Educational, Scientific and Cultural Organization. Source: Asian Development Bank.

Annex 2 65

Supervision Consultant Inputs for the Additional Financing (Gautam Buddha Airport Upgrading)

Type of Consultant Person

Month Rate/Month Total Involvement

A. International (i) Team Leader/Airport Engineer 36 $20,000 $720,000 Full Time Out of Pocket Expenses $18,000 Contingencies (8%) $59,040 VAT (13%) $103,615 Subtotal $900,655 B. National (i) Team Leader 6 NRs178,000 NRs1,068,000 Intermittent (ii) Pavement Engineer 14 NRs138,000 NRs1,932,000 Intermittent (iii) Structural Engineer 4 NRs138,000 NRs552,000 Intermittent (iv) Civil and Utilities Engineer 2 NRs138,000 NRs276,000 Intermittent (v) Drainage and Flood Control Specialist 2 NRs138,000 NRs276,000 Intermittent (vi) Procurement Specialist 6 NRs138,000 NRs828,000 Intermittent (vii) Quantity Surveyor 16 NRs138,000 NRs2,208,000 Intermittent (viii) Material Quality Control Engineer 14 NRs138,000 NRs1,932,000 Intermittent (ix) Resident Engineer 14 NRs110,000 NRs1,540,000 Intermittent (x) Support Staff (Draft Person, Office Manager/Account Officer, Computer Operator, and Messenger)

98 NRs2,242,800 Intermittent

Out of Pocket Expenses NRs9,256,000 Contingencies (8%) NRs1,768,864 VAT (13%) NRs3,109,356 Subtotal NRs26,984,021 Note: The total estimated cost is $1,218,115 ($900,655 and NRs26,984,021, equivalent to $317,460 calculated

NRs85=$1).

66 Annex 3

Project Management Consultant Inputs for the Additional Financing (Project Coordination Unit)

Position/Description Person-Months Rate/Month (NRs)

Total Cost (NRs)

Project Manager/Team Leader 32.0 180,000 5,760,000 Financial Management Specialist 48.5 120,000 5,820,000 Project Monitoring Specialist 5.0 120,000 600,000 Marketing Specialist 4.0 120,000 480,000 Tourism Development Experts/Team 4.5 120,000 540,000

Subtotal 94.0 13,200,000 Out-Of-Pocket-Expenses 6,121,000 VAT 13% 2,500,000 Contingencies 15% (for O&M, price escalation and salary for driver)

1,980,000

Total 23,801,000 Note: The total estimated cost is $280,000 (calculated at NRs85=$1).