Project Operational Manual

PROJECT OPERATIONAL MANUAL

FOR

INDIA

CAPACITY BUILDING FOR INDUSTRIAL POLLUTION MANAGEMENT PROJECT

October 2010

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ABBREVIATIONS AND ACRONYMS

APPCBCBIPMPCPCB

Andhra Pradesh Pollution Control BoardCapacity Building for Industrial Pollution Management ProjectCentral Pollution Control Board

ECAC Environmental Compliance Assistance CentersESA Environmental and Social Assessment ESMF Environment and Social Management FrameworkGPN General Procurement NoticeICB International Competitive BiddingICR Implementation Completion Report IUFR Interim Unaudited Financial Report KIE Katedan Industrial AreaKMC LIUNPRPS

Kolkata Municipal Corporation Local Implementation UnitNational Plan for Rehabilitation of Polluted Sites

NCB National Competitive BiddingNMK Noor Mohammad Kunta LakePAD Project Appraisal DocumentPDO Project Development ObjectivePIU PMC

Project Implementation UnitProgram Management Consultants

POC Project Oversight CommitteePOCPAO

Project Oversight Committee Pay and Accounts Officer

PQRA Preliminary Quantitative Risk AssessmentSPCBs State Pollution Control BoardsSSRA Site Specific Risk AssessmentSoE Statement of ExpenditureTORTEPWBPCB

Terms of ReferenceTechnical Evaluation PanelWest Bengal pollution Control Board

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TABLE OF CONTENTS

Project Operations Manual 5SECTION I Project Description 6-9SECTION II Ministry of Environment and Forests 10-19SECTION III Andhra Pradesh Pollution Control Board 20-28SECTION IV West Bengal Pollution Control Board 29-38SECTION V Environment and Social Management

Framework39-43

SECTION VI Procurement Procedures 44-60SECTION VII Financial Management 61-69SECTION VIII Monitoring and Evaluation Framework 70-74SECTION IX Governance Accountability Action Plan 75-80ANNEXES

Annex I Results Framework 81-86

Annex II Format for Annual Work Plan Proposal of SPCBs 87

Annex III Format for Annual Work Plan Proposal of MOEF

88

Annex IV Format for Quarterly Interim Unaudited Financial Reports

89

Annex V Form of Utilisation Certificate 90

Annex VI Indicative Chart of Accounts 91 -92

Annex VII MOEF Project Management: Job Descriptions and Procedures

93-94

Annex VIII Terms of Reference: FM at MOEF 95-96

Annex IX Terms of Reference: External Financial Audit of Project Financial Statements

97-98

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PROJECT OPERATIONS MANUAL

1. Environmental sustainability is likely to be the next greatest challenge on India’s development path, adding to the list of priority needs to reduce disparity, eliminate poverty and promote social cohesion. Experts also believe that manufacturing sector will play an important role in future economic growth, where cleaner production and minimizing waste are likely to define the sustainability of industrial growth. With regards to hazardous waste management, illegal and clandestine dumping of industrial waste is a common practice in many states. While a large number of chemically contaminated sites exist in the country, the regulating authorities face number of challenge before formulating a national level strategy. These challenges include a) a lack of sufficient information on the quality and risks of legacy pollution and accumulated waste; b) no methodology for risk assessment to help establish priorities in clean up investments; c) absence of effective tracking system for monitoring the process and enforcement of regulations to prevent secondary contamination; d) limited public awareness of the health risks; and e) underdeveloped common infrastructure for safe containment or disposal of hazardous waste.

2. The Capacity Building and Industrial Pollution Management (CBIPM) project will help the GOI to build capacity at the state and central level, and develop a framework to address these issues in a comprehensive and systemic manner under an area-wide management approach. The proposed project is aligned with the endeavor of the GOI to establish a National Program for Rehabilitation of Polluted Sites (NPRPS) as a framework for scaling up the clean up and rehabilitation of polluted sites and facilitate the reduction of environmental and health risks associated with legacy polluted sites.

3. The Project Operational Manual (POM) comprises the following sections outlining the project components and roles and responsibilities of the different implementing agencies, procedures for development of investment plans for remediation of contaminated sites including implementation arrangements for coordination between sector agencies and local governments and

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procedures for financial management and procurement. It also provides details of reporting processes and details regarding implementation and monitoring of project and activity level plans, including those detailed in the Environmental and Social Management Framework (ESMF).

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SECTION I PROJECT DESCRIPTION

I. Project Objectives: 1. The development objective of the project is (i) to build tangible

human and technical capacity in selected state agencies for undertaking environmentally sound remediation of polluted sites (ii) to support the development of a policy, institutional and methodological framework for the establishment of a NPRPS.

2. The project will achieve its objective by (a) using a project-based learning approach and providing support to effective knowledge dissemination; (b) supporting the NPRPS by putting together a methodological framework for inventorying of polluted sites, assessing social costs and benefits, public health and ecosystem risks, best practice assessments of contaminated sites and implementation of plans for cleanup/remediation, in accordance with the intended land use or containment of pollution whichever is feasible; (c) undertaking prototypical investments in remediation of hazardous waste and old dump sites suitable for scaling up; and (d) providing support for improved industrial compliance in project areas.

3. The project will also promote inclusion of key stakeholders in planning and implementation of project investments, and partnerships for improved environmental conditions of community neighborhoods around the polluted sites. The project will support measures for public awareness and community education to prevent secondary contamination of the sites and behavioral changes. In order to make the project impact tangible it would be translated into measurable project outcome indicators.

4. The key performance outcome indicators supporting the Project Development Objective (PDO) are:

i. Supporting the NPRPS by developing a methodological framework for inventorying polluted sites, establishing ‘best practice’ solutions and engaging multiple stakeholders in the implementation, including cost recovery mechanisms.

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ii. An Environmental Compliance Assistance Center has been established and fully functional by end of year two in West Bengal and by end of year four in Andhra Pradesh

iii. Water quality and soil characteristics at the pilot sites comply with national standards and mechanisms established to monitor in the long term.

iv. Clean up/remediation technologies have been piloted at orphan sites in selected states and a network of state PCBs established by MoEF for knowledge dissemination and project based training.

v. Guidelines and standards for remediation developed and supervisory capacity of technical staff at environment agencies to implement remediation plans and monitor environmental conditions strengthened.

II. Project Components5. Project investments are organized in the following components:

5.1 Component 1- Strengthening of Environmental Institutions: Building Capacity for addressing pollution remediation at state: (US$ 16.74 Million): The objective of this component is to strengthen and integrate the institutional framework, including regulatory policies, management practices, compliance incentives, and performance guidelines, for central and state governments in the remediation of polluted sites.

Sub-component 1.a: National Program for the Rehabilitation of Polluted Sites (US$3.44 Million). This sub-component will support the MOEF in the development of the National Program for Rehabilitation of Polluted Sites (NPRPS)

Sub-component 1.b: Environmental Compliance Assistance Centers (ECACs) (US$ 5.21 Million). This sub-component will support the establishment of ECACs in the states of AP and WB to pro-actively promote and assist industries with environmental compliance in pollution management

Sub-component 1.c: Institutional Capacity Building of State Pollution Control Boards (US$8.09 Million). This sub-component will focus on providing technical assistance and building technical knowledge and skills of SPCBs in conducting risk assessments and guiding remediation actions and for inventorying and characterization of hazardous waste and

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illegal dumpsites, assessment and preparation of priority contaminated sites, and regulatory best practices and incentive based approaches and stakeholder involvement.

5.2 Component 2 - Investments in Priority Remediation and Environmental Improvements: Rehabilitation of legacy hazardous waste sites: (US$ 52.80 Million). The component will demonstrate remediation which minimizes to acceptable and safe levels the environment and health risks by containing the migration of the heavy metal and chemical bearing of contaminated soil and groundwater. This component will support AP and WB in the development and implementation of area-based plans which include remediation of orphan polluted sites and/or old municipal dumps (two in each state listed below) and measures for overall environmental improvements in the area and better compliance of the nearby industrial units:

Site A: Remediation of Noor Mohammad Kunta, Katedan Industrial Area (KIE) in Ranga Reddy District, Andhra Pradesh (US$ 30.93 Million)

Site B: Remediation of the Dumpsite in Kadapa, Andhra Pradesh (US$ 3.82 Million)

Site C: Remediation of Dhapa - old municipal dump site adjacent to East Kolkata Wetlands, West Bengal (US$8.00 Million).

Site D: Remediation of seven (7) chemically contaminated sites in the District of Hooghly, West Bengal (US$10.06 Million)

5.3 Component 3: Project Management. (US$5.85 Million). The project governance structure is designed to ensure effectiveness and transparency of implementation and compliance with Bank fiduciary requirements. A brief description of the institutional and implementation frameworks of this project is provided below and detailed descriptions at central and state levels are provided in their respective sections.

III. Institutional and Implementation Arrangements6. The Ministry of Environment and Forests at New Delhi will be the

implementing agency at the central level for the project, with the overall responsibility for its management and implementation. A Project Director at MOEF will provide oversight of project implementation and will be supported by a team of Management Consultants (MC). The MOEF will be responsible for development

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of the NPRPS and will have an oversight role on the state-level activities.

7. MOEF will establish a Project Oversight Committee to provide overall policy guidance and direction to the project and will also have a panel of technical experts (Technical Evaluation Panel) which will provide quality technical inputs during project implementation and specifically with regard to preparation of remediation guidelines and clean-up standards.

8. At state levels, Project Implementation Units, with Project Directors have been established in the state PCBs for the responsibility for day to day project implementation and coordination with other stakeholder agencies. Project Steering Committees will oversee the implementation of projects activities in each state, for which the PIUs will serve as Secretariat.

IV. Monitoring and Evaluation of Outcomes and Results 9. A results framework, detailed in Annex I, will serve as the main

tool for assessing the effectiveness of the Project during implementation and measuring final outcomes after project completion. The main outcome will be mitigation of health hazards from toxic pollution, which poses risks to community and ecology, reduced soil contamination in the immediate neighborhood, an improved employment situation during remediation, potential cost savings with lower incidence of environment related disease.

V. Project Costs 10. The total cost of the Project including contingencies is US$

75.39 million, as shown in the table below. The project will be implemented over a period of five years (2008-2013) in accordance with the Project Implementation Schedule. A mid-term review will be carried out in 2013

Description

Costs Incl. Cont. & Taxes

Foreign US$ Mill

Local US$ Mill

Total US$ Mill

Component 1: Strengthening of 3.21 13.53 16.749

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Environmental Institutions: Building capacity for addressing pollution remediation Component 2: Investments in Priority Remediation and Environmental Improvements: Rehabilitation of orphan hazardous waste sites and municipal dumpsites 1.07 51.73 52.80Component 3: Project Management 0.00 5.85 5.85

Total: 4.28 71.11 75.39

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SECTION II

MINISTRY OF ENVIRONMENT AND FORESTS

I. Institutional and Implementation Arrangements

1. The MOEF is the implementing agency at the central level, with the overall responsibility for its management and implementation. It has the primary role for overall project oversight and coordination, and specifically for developing the national framework for scaling up the remediation of polluted sites across other states through activities for development of methodological framework, guidance to states on site assessment, application of remediation standards, monitoring of results and dissemination of best practices.

Project Director 2. The MOEF has designated a Project Director (PD) who will be

responsible to coordinate implementation of activities at central level and provide guidance to the state PIUs. The responsibilities of the PD will include overall supervision of the project, development and establishment of the NPRPS, national capacity building, outreach and communications, progress reporting, liaison with participating states and agencies as well as fiduciary, administrative and procurement for centrally managed activities.

3. The Project Director will be responsible for supervision of the Project and will perform the following core functions: Project Management; Outreach and communications; Procurement for the MoEF managed Capacity building

activities, Organize and implement the capacity building activities by

identifying and contracting appropriate agencies; taking responsibility of the procurement and contract management, recording and supervision of activities.

Financial accounting and reporting, Liaise with participating States and agencies.

Project Management Consultants (PMC)4. To support the Project Director, MoEF will hire a consulting

firm which will function as Proggram Management Consultants (PMC) for the project. The PMC will have adequate resources to produce the deliverables and functions expected of the

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MoEF. The PMC will put together a team of consultants along with support staff, so that MOEF can discharge its responsibilities. The team of PMC will include Technical Specialists with experience in hazardous and solid waste management, financial specialist, and Procurement specialist, a Monitoring and Evaluation specialist and adequate number of support staff. TORs for the management consultants will be completed and they should be in place by October 1, 2010. TOR for PMC is provided in the Annex.

5. The functions of PMC will include the following: Provide on-going secretarial and administrative support to

the POC and PD Support the PD in implementing the central level activities

including capacity building activities, procurement and financial management of the project

Support the PD in activities related to the development of the NPRPS

Establishing a preliminary inventory of contaminated sites (this would be based on MOEF/SPCB data, information from legal proceedings, environmental monitoring & enforcement agencies, complaints from Non-Governmental Organizations (NGOs), local communities etc.)

Determining how serious a threat these sites present in human health and environmental terms (based on site details, e.g., the nature of the contamination, their location, their proximity to human activity and environmentally sensitive areas, or to pathways (rivers and groundwater) leading to human activity or environmentally sensitive areas;

PMC will monitor preparation of individual technical guidelines simultaneously by other Consultants with appropriate technical skill sets and these will be selected through appropriate selection process by the PMC, as part of the plan development process. These include

o Development of Guidelines for Phase I/II/III;o Development of Cleanup Standards; o Development of Risk Decision Making Models -

SSRA/ PQRA.

Project Oversight Committee6. Given the close linkages between the envisioned activities, the

MOEF will establish an inter-ministerial Project Oversight Committee (POC) to provide oversight and policy guidance and to build consensus among project stakeholders on major policy and implementation issues. The POC will be chaired by Secretary, MOEF or a designated official in his absence. It will

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include members from the Central Pollution Control Board, Planning Commission, Department of Economic Affairs, Ministry of Urban Development and Industry, CSIR Laboratories, academia etc. The Chairpersons of the state Project Steering Committees where clean up/remediation investments (AP and WB) will be also be members of this Committee.

7. The POC will be responsible for the following: Providing overall policy guidance and direction to the project Approving national level plans for capacity building and annual

progress report prepared by MOEF Participating and approving national strategy and plans for

remediation of contaminated sites Provide guidance on approval and adopting a methodological

framework for risk-based assessment and clean-up of contaminated sites in the country

Providing strategic support and guidance to program implementation

Approve guidelines and clean-up standards

8. Support to the POC will come in the form of: (i) secretariat services by the PMC, including the preparation of meeting minutes and circulation of agendas, management of documents and relevant data, etc.; and (ii) if required, ad hoc technical assistance to provide the membership with the adequate knowledge and exposure to make carefully informed decisions and recommendations on matters put before the Committee.

Technical Evaluation Panel 9. On technical and scientific matters, the POC will be supported

by a Technical Panel (TEP). MOEF will also identify a panel of technical experts, who will provide quality technical inputs during project implementation and evaluate proposals for the respective components, specifically with regard to preparation of remediation guidelines and clean-up standards. Members of the TEP will be drawn from academia, industry associations, CPCB, relevant Ministries and individual experts both national and international. TEP will consist of a team of technical experts drawn from a set of international and national technical specialists. Preferred membership is about 4-5 external technical specialists along with PD and MC Project Manager.

10. Core Functions of TEP would be to: Review the RFP and tenders submitted for various components

and approve selection;13

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Review of deliverables like the regulations, standards, guidelines and other technical documents; provide inputs and comments; and approve for adoption.

Provide technical leadership in project implementation by bringing in innovative ideas and suggestions; and

Visit project sites for implementation review and appraisal.

Organizational Chart of MOEF:

Program Management Consultants

Project Coordinator

Project Director

Project Oversight Committee (POC)

Technical Evaluation Panel (TEP)

AP PCB WB PCB

II. Responsibilities of MOEF:

11. The primary role of MoEF will be overall project oversight and coordination. Its key responsibility will be in implementing Component 1 - Subcomponent 1.a: National Program for the Rehabilitation of Polluted Sites. MOEF will have an oversight role on the activities which will be implemented directly by the States of West Bengal and Andhra Pradesh. These include Component 1: Sub-components 1.b and 1.c and Component 2.

Component 1: Sub-component 1.a: Support to the development of National Program for the Rehabilitation of Polluted Sites (US$3.44 Million).

The following figure illustrates the activities under the NPRPS.

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KEY ACTIONS BY MOEF

OBJECTIVE ACTIVITES

Develop methodology for identification, remediation of polluted sites and setting up standards and guidelines based on international & national best practice review

This activity involves developing the methodologies for– • Site identification, categorization,

prioritization based on the level of risk posed by the contamination

• preliminary and site specific risk assessment methodologies,

• sampling protocols and standards • assessment and preparation of

priority contaminated sites • guidelines for conducting risk

assessment and standards for risk assessment and communication.

1. Methodology for Risk Assessment, including guidelines for the preparation of remediation plans

2. Standards/Criteria/Post-monitoring Protocols for Remediation based on soil, land use ambient air/water conditions

3. Remediation technologies, including inventory of existing remediation technologies within country and international

4. Random checks and inspections of hazardous waste dump sites in states including development of checklist and protocols

5. Consultancy for the preparation of National Rehabilitation Plan

6. Technical assistance for project preparation of contaminated HW dumpsites in 5 priority states

7. Prepare inventory of best available remediation technologies and strategies within the country and internationally

8. Assess and strengthen existing national and state programs, introduce and adopt international best practices, and exchange program with international practitioners, such

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as the USEPA9. Inventory and mapping of polluted sites by

updating list and information on hazardous waste dumpsites in consultation with SPCBs and CPCB for NPRPS

10. Lessons learned from pilot remediation sites and incorporated as best practices in the development of the NPRPS.

Training and technical assistance for strengthening capacity of SPCBs

1. Establish network of SPCBs to launch national training programs

Capacity to be built in areas such as source identification, risk assessment, planning, monitoring, inspection and enforcement of hazardous waste sites.

1. Source identification, inventorization, and characterization of HW dumpsites (2 from 11 SPCB, 8 CPCB/MoEF) - (Training)

2. Risk assessment of HW dumpsites, including methodology, sampling, analysis, and preparation of remediation plans - NPRPS - (Training)

3. Statistical Methods for Interpretation and Validation of Data (Training)

4. Transport and Fate of Contaminant in Soil and Ground Water - (Training)

5. Innovative Remediation Technologies and Methodologies, focusing on international best practices (study tour) - (Training)

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6. Innovative Remediation Technologies and Methodologies - (Training)

7. Operation, maintenance, and closure of MSW landfills focusing on international best practices - (Training)

8. Transport and Fate of Contaminant in Soil and Ground Water - (Training)

9. Innovative Remediation Technologies and Methodologies, focusing on international best practices (study tour) - (Training)

10. Innovative Remediation Technologies and Methodologies - (Training)

11. Operation, maintenance, and closure of MSW landfills focusing on international best practices - (Training)

12. Inspection and enforcement of the hazardous waste including the material balance for the production of hazardous waste - (Training)

13. Implementation of Remediation Processes based on Cost Benefit Analysis (NPRPS) - (Training)

Legal, regulatory & policy review

A regulatory framework is required with: • laws, rules, regulations, guidelines and provisions for charging penalties/ to seek

compensation to polluters;

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and preparation of NPRPS framework

• set of guidelines, standards and directions to which the sites should be cleaned up• methodologies for identification, investigation, cleanup, technology assessments, risk

assessments, and acceptance of “cleaned sites – record of site conditions” etc.

Formulate strategy for preventing future land contamination;

This will include strategies and guidance for:• continuous monitoring of industrial areas• compliance management of wastewater and industrial waste discharges • monitoring and compliance by States.

Develop Institutional and financial mechanism for establishing NPRPS

The Institutional setup will include administrative setup, organizational setup, roles and responsibilities for implementation and oversight of NPRPSInnovative strategies involving financial institutions and insurance companies using market based instruments for developing prevention programs. Assessment of Private sector involvement into the long term remediation financing and land use

Long term Project Structuring

Strategy for:• long term framework for state and centre strategy for project identification, justification

and financing • system of prioritizing sites and financing mechanism for contaminated sites; • implementation of polluter pays principle and penalties and recovery of remediation

costs as part of the overall strategy of financing.

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• Long term financing strategy of remediation of polluted sites • regulatory best practices and incentive based approaches and stakeholder

involvement,

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III. Project Budget for MOEF

Description of Services Estimated Cost Incl Cont. & Taxes (in 000 US$)

Management consultants for managing and monitoring the CBIPMP for MoEF 766.99Development of methodology for identification, remediation of polluted sites and setting up standards and guidelines based on international & national best practice review. 848.63Institutional and financial mechanism for establishing NPRPS 199.72Training program on implementation of NPRPS 106.85Training on Remediation Technologies and Methodologies, focusing on international best practices (study tour) 114.35Training on Remediation Technologies and Methodologies (NPRPS) 91.48Training on Operation, maintenance, and closure of MSW & hazardous waste landfills focusing on international best practices 195.83Legal, regulatory & policy review and preparation of NPRPS framework 299.57Inventory and mapping of polluted sites 746.60Training on Implementation of Remediation Processes based on Cost Benefit Analysis(NPRPS) 97.88Training on Inspection and enforcement of the waste management regulations 97.88Sub-total: 3565.78Office goods & equipment 52.31Laboratory Equipments: 643.20Sub-total: 695.52

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SECTION III

ANDHRA PRADESH POLLUTION CONTROL BOARD (APPCB)

I. Institutional and Implementation Arrangements1. An appropriate project governance structure has been established in AP

to ensure coordinated implementation, effectiveness, accountability, oversight and transparency of implementation. The AP Pollution Control Board (APPCB) shall be responsible for coordination and implementation of project activities at state level and reporting to MoEF. The Member Secretary of APPCB has been nominated by the State Government of Andhra Pradesh to be the Project Director for the project.

Project Implementation Unit (PIU):2. The overall responsibility for project execution will lie with the qualified

Project Implementation Unit (PIU) based in Hyderabad. The PIU will be established at the APPCB and will be headed by the Project Director. The PIU will have the responsibility for day to day project implementation and coordination with other stakeholder agencies. It will serve as Secretariat for the Steering Committee through the Member Secretary, APPCB who is the member convener of the Steering Committee and the State Director for the Project.

3. The PIU will ensure that procurement, financial management and disbursement aspects of the project are fully consistent with applicable Bank guidelines and shall function under the Member Secretary, APPCB.

4. The PIU will include a Project Director, two Technical staff, a Procurement Specialist, a Procurement Assistant, a Monitoring and

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Evaluation Specialist, a Financial Specialist, a Financial Assistant, a Communication Specialist and a Social and Environment Specialist along with some support staff. The staff will be selected following Bank procurement procedures for the selection of consultants. The PIU will be supported by two Local Implementation Units (LIUs), located in Hyderabad and Kadapa and responsible for coordinating the day-to-day activities under their respective components. The job descriptions of the staff of PIU, procedures of recruitment and roles of committees at state level are given in Annexure - I.

CBIPM Cell at APPCB:5. APPCB has constituted a CBIPM Cell on 25th October, 2008 from its

technical, scientific and financial staff to oversee and assist in the day to day project implementation, provide overall supervision of PIU functioning and support evaluation of proposals for the respective components and help co-ordination with other stakeholder agencies. The CBIPM Cell consists of the following employees of APPCB: (i) Joint Chief Environmental Scientist (ii) Joint Chief Environmental Engineer (CPC & MSW) (iii) Joint Chief Environmental Engineer (Zonal office, Kurnool) (iv) Chief Accounts Officer (v) Senior Environmental Engineer (HWM) (vi) Environmental Engineer (CPC) (vii) Assistant Environmental Engineer (viii) Procurement Specialist - Analyst Gr-I, Central Laboratory and (vii) Support staff of one data entry operator and one office subordinate. These APPCB employees will perform the above duties in addition to their regular duties.

6. The PIU and the CBIPM Cell will appoint selection committees for contracts below Bank’s prior review, and decide on priority list of temporary employment (public works) projects eligible for financing under Component B.

Local Implementation Unit (LIU):7. Local Implementation Unit (LIU), headed by either Technical Specialist

or Environmental and Social Specialist along with representatives of municipalities / industrial area local authority, regional offices of APPCB, NGOs and District administration will oversee the project implementation on the ground at both the sites located in Hyderabad and Kadapa.

Project Steering Committee8. A State Project Steering Committee will be established under the

chairmanship of the Secretary, Department of Environment, to oversee the implementation of projects activities in the state. The Member Secretary, APPCB will be the member convener and membership will be as follows:

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1. Special Chief Secretary , E.F.S&T Dept

Chairman

2. Prl. Secretary, Finance Dept., Member3. Prl. Secretary, Industries

Dept.,Member

4. Prl. Secretary, MA & UD Member5. Chairman & MD, APIIC Member6. Commissioner, Hyderabad

Metropolitan Development Authority

Member

7. Commissioner and Director, Municipal Administration

Member

8. Director, National Geo-physical Research Institute (NGRI), Hyderabad

Member from Academia

9. Member Secretary, APPCB Member Convenor10. Project Director, PIU Special Invitee

9. The functions of the PSC will be as follows: Review and monitor project implementation and achievement of

project performance indicators; Providing strategic support and guidance as well as coordinating with

different government departments and agencies; Approving overall human and financial resource requirement for State

wide implementation of remediation plans;

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Defining and reformulating project strategies based on emergent experience from project implementation;

Approve bi-annual progress reports of APPCB

II. Project Components:

10. The following activities will be implemented by APPCB under the project: Component 1: Strengthening Environmental Institutions: Building

Capacity for Remediationo Sub-component 1.b: Environmental Compliance Assistance Centers o Sub-component 1.c: Institutional Capacity Building of State

Pollution Control Boards Component 2: Investments in Priority Remediation and Environmental

Improvements in orphan hazardous waste sites and municipal dumpsites

Component 3: Project Management 11. Component 1, Sub-component 1.b: The establishment of an

Environmental Compliance Assistance Center (ECAC) will be explored as a way to promote increased environmental compliance of industry, particularly small and medium size enterprises, in meeting the national and state regulatory requirements. In order to better assess the existing institutional structure for providing compliance assistance in Andhra Pradesh and to learn from the West Bengal and other international models, the APPCB will undertake an analytical study and reach out to the affected stakeholders.

12. Component 1, Sub-component 1.c: This component will provide technical and infrastructural support to laboratories of the APPCB besides institutional capacity building for inventorization and characterization of hazardous and municipal solid waste generated in the state, assessing public health and ecosystem risks and economic, social and environmental benefits derived from project activities.

13. The APPCB will require specialized technical expertise to support the monitoring of demonstration sites under the project and to develop the hazardous waste remediation and rehabilitation program in the state. The APPCB will require specialized laboratory equipment, GIS mapping (software), and other equipment to analyze data from demonstration sites, monitor environmental impacts, and develop the hazardous waste

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remediation and rehabilitation program in the state. The technical equipment will include the following items:

Gas chromatographer – MS-MS; bomb calorimeter; Atomic absorption spectrophotometer and required lamps; Solid waste extraction assembly, concentrator for organic

extractor; Sampling apparatus for POP’s, VOC’s, dioxin, and furan; Microwave digestive units, sediment depth samplers; Network devices for GPS, GIS mapping of hazardous waste units.

14. The APPCB will require technical training to support the effective utilization and analysis of data from acquired laboratory equipment, and to strengthen the capacity in management and remediation of hazardous waste.

15. The detailed activities under Component 1 and their outcomes are detailed below:

Component Activities Expected Outcome

Technical Assistance for APPCB

• Inventorisation and characterization of hazardous waste ;

• Mapping of hazardous waste units, illegal hazardous waste dumpsites, and municipal waste dumpsites;

• Pre-feasibility study of contaminated soil and groundwater from hazardous waste at targeted priority sites;

• Environmental and social impact assessment of municipal solid waste dumpsites.

Inventory of Hazardous waste generators and quantities;Inventory of illegal dumpsites for industrial waste;Inventory of municipal dumpsites; ESIA of municipal waste dumpsites.

Infrastructure Support for APPCB

• Procurement of necessary sampling and Analytical equipment, specialized laboratory equipment, GIS mapping, and other equipment

Infrastructure facilities in the laboratories of the APPCB will be upgraded.

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to analyze data from demonstration sites, monitor environmental impacts, and develop the hazardous waste remediation and rehabilitation program in the state.

Environmental Compliance Assistance Center (ECAC)

• Analytical study of existing institutions in AP that provides compliance assistance.

• Identification of innovative international models, and recommendations for integrating international models within the Andhra Pradesh context;

• Study tour to visit the West Bengal ECAC and to meet with key stakeholders in West Bengal;

• Workshop to introduce international compliance assistance models to key stakeholders;

• Workshops to involving diverse stakeholders in vision and action planning regarding ways to strengthen the institutional models for environmental compliance;

• Published reports of workshop proceedings for interested stakeholders, government ministries, and the public.

Setup ECAC in AP.

Technical Training for APPCB

Training of the staff in • Application and interpretation

of data from all acquired laboratory equipments;

• Quality assurance protocols for

Technical training for building the capacities of the staff to support

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SPCB laboratories, statistical methods for data interpretation and validation;

• Hazardous waste testing, finger printing TCLP, and identification protocols and standards;

• Tools and methods used to identify and characterize legacy sites;

• Remediation technologies for contaminated sites;

• Transport and fate of contaminants in soil and groundwater;

• Inspection and enforcement of hazardous waste management at industries – generation, operations, storage, transportation, treatment and disposal;

• Municipal waste landfills – operations and monitoring for compliance; LFG venting and utilization and leachate treatment and management;

the effective utilization and analysis of data from acquired laboratory equipment, and to strengthen the capacity in management and remediation of waste dump sites.

Impact of MSW Dumpsites on Environment (15 Corporations) Inventorization and Characterization of HW categories & e-waste and GPS worksAssessment of contaminated soil and ground water near illegal dumps

16. Component 2: Project demonstration activities will be implemented in pilot sites in Andhra Pradesh which have been identified due to their advanced state of readiness. Project investments for remediation will be defined on the basis of area-wide Management Plans focusing on hazardous waste and old solid waste dump legacy sites, where the plans

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will be developed and implemented with stringent social and environmental safeguards in place.

17. Site A: Remediation of Noor Mohammad Kunta Lake: This component includes a step-wise area-based management approach consisting of near-term remediation of apparent risks and implementation of remedial measures of soil, ground water, surface water and sediment contamination of NMK lake. Long term impact assessment and remediation strategy is also planned along with a Monitoring and Control strategy.

18. Site B: Closure and containment of Kadapa Municipal Solid waste site: This component includes clearing the existing municipal solid waste dump yard in Kadapa Muncipal Corporation, reducing the risks from contamination and exposure to health hazard and providing improved air quality and ambient environment for the communities near the site.

19. The activities under this component and the outcomes are as detailed below:

Site A: NMK Lake Activity Activities/

ConsultanciesOutcome

Environmental Site Assessment – Phase II and Phase III for delineating the contamination – assessing the extent of contamination in surface-/ground water, sediments and soil; quantities, characteristics and topographical information;

Detailed reassessment/ engineering Study, bid document preparation and supervision

Detailed Site Investigation Report

Remedial Options Study along with Site Specific Risk Assessment to develop the standards for cleanup of site for water, sediments and soil surrounding the lake.

NGO Work for community communication, identification of PAPs

Final SSRA and the recommended option for Cleanup.

Remedial Action Plan (RAP) – will be developed based on detailed Phase III- can be part of the Phase III or separate. – provide engineering for

GIS Works and identification of

Remedial Action Plan

29

how to go about the cleanup including technology; engineering and equipments.

data gaps

Implementation of the RAP including removal of sediments and soil; treatment of water; redirecting contaminant flows into the lake; landscaping and other infrastructure.

Post remediation ground water investigation, and monitoring

Contract and Contract implementation

Record of Site Condition – site audit and review of works to ensure work was completed and all the cleanup has been to the standard.

Environmental Monitoring Initiative

Audit Report for cleanup of site.

Post remedial strategy Post closure monitoring

Site B: Kadapa DumpsitePhase I and Phase II ESA of the site to assess the contamination by leachate and garbage to the surrounding ground and surface water; under the extent, quantity and characteristics of contamination;


Baseline Status Report with clear delineation of contaminant issues.

ESA to understand environmental/ecological concerns; socio-economic issues; transportation, land use and other issues.

ESIA Report

Development of Remedial Options and Action Reports. The Options should include Landfill Rehabilitation and Closure of dumpsite; LFG control and management; Leachate control and management; Landfill mining; Reclamation of recyclables and composted waste; Potential change in land use; Development of sanitary landfill at the site; etc.


Remedial Options Report and finalized Remedial Action plan after discussions and consultations

30

Implementation of RAP NGO works for community communication, identification of PAPs

Contract and cleanup


Post closure monitoring


III. Project Budget for APPCB

Description of Services Estimated Cost Incl Cont. & Taxes (in 000 US$)

Impact of MSW Dumpsites on Environment (15 Corporations) (Domestic) 262.59Consultancies - Business Strategy for ECAC 360.68Detailed reassesment/ engr. Study, bid document prep., and supervision - NMK 774.78NMK - Exec Engineer (Full time) 101.46NMK - Dy Exec Engineer (Full time) 81.17Technical Consultant 104.58Monitoring and Evaluation Specialist 104.58Procurement Assistant - Consultant 41.79FM Specialist - Consultant (Accounts Officer) 72.59FM Assistant - (Accountant) 18.66Environment and Social Specialist-Consultant 104.58Communicational Specialist-Consultant 72.59NGO Work for community communication, identification of PAPs- NMK 138.04Independent supervision consultant - NMK 569.69Detailed reassessment/ engr. Study, bid document prep., and supervision in Kadapa site 222.71GIS Works and identification of data gaps - NMK 162.74Post remedation ground water investigation, and monitoring – NMK

1236.37

Kadapa dump sites – NGO works for community communication, identification of PAPs 153.38Supervision consultant – Kadapa 150.16

31

Social monitoring and social audit – Kadapa 37.54Inventorisation and Characterization of HW categories &e-waste and GPS works 579.73Environmental Monitoring Initiative - Kadapa 18.51Environmental Monitoring Initiative - NMK 24.50Assessment of contaminated soil and ground water near illegal dumps 400.68Consultancy for development of post remedial strategy - NMK 137.16Post closure monitoring- Kadapa 78.80Sub-total: 6010.05Remediation Works for NMK 27938.97Closure & containment works (Excavation & related works, stabilization & closure) – Kadapa 3441.29Sub-total: 31380.26Office equipment 8.56Laboratory equipment 2552.24 Sub Total 2560.80Project Management and Misc. cost 736.95Grand Total 40688.06

32

SECTION IV

WEST BENGAL POLLUTION CONTROL BOARD

I. Institutional and Implementation Arrangements

1. An appropriate project governance structure has been established in WB to ensure coordinated implementation, effectiveness, accountability, oversight and transparency of implementation. The WB Pollution Control Board (WBPCB) shall be responsible for coordination and implementation of project activities at state level and reporting to MoEF. The Member Secretary of WBPCB has been nominated by the State Government of West Bengal to be the Project Director for the project.

Project Implementation Unit (PIU):

2. The overall responsibility for project execution will lie with the qualified Project Implementation Unit (PIU). The PIU will be headed by a Project Director (PD). Besides, there will be one Deputy Project Director (DPD) who will assist the PD and will be responsible for overall coordination among the six Cells as mentioned below. He will also be responsible for all technical matters pertaining to the project. The six cells headed by Senior Officers of the WBPCB will be responsible for project components and will work under the guidance and supervision of DPD :

i) Technical Cell (HWM)ii) Technical Cell (MSW)iii) Infrastructure Cell (Lab)iv) ECAC Cellv) Finance & Accounts Cellvi) Procurement Cell

3. The PIU staff will be selected following bank procurement procedures. The same principle will be followed for selection of consultants. The PIU will ensure that procurement, financial management and disbursement aspects of the projects are fully consistent with applicable Bank guidelines. The Cells will be responsible for coordinating day to day activities under respective components. In addition, suitable number of evaluation committee will be established by the Project Director to evaluate proposals under the respective components.

33

Organizational Chart

Project Director & Head – PIU (Member Secretary) [WBPCB – 50%]

Project

Steering Committee

Principal Secretary

DoE, GoWB

Project Coordination Team

(Dr. Dipak Chakraborty)

[Dy. Proj. Director, WBPCB]

(Project Coordinator 1)

[External - 100%]

(Project Coordinator 2)

[External - 100%]

Head – Technical

Cell (HWM)

(Mr. Shyamal Kr. Adhikari)

[WBPCB] Proj. Officer (HWM) (Ms. Sarmistha Kundu)

[WBPCB]

Proj. Eng. (HWM) (…………………)

[External– 100%]

Head – Technical Cell (MSW)

(Dr. Tapas Kr. Gupta)

[WBPCB]

Proj. Officer (MSW) (Mr. Debashis Sarkar)

[WBPCB]

Proj. Eng. (MSW) (…………………)

[External– 100%]

Head – Infrastructure Cell (Lab)

(Dr. Ujjal Kr. Mukhopadhyay)

[WBPCB]

Proj. Officer (Lab) (Mr. Prabir K. Barai)

[WBPCB]

Proj. Sc. Asst. - 1 (…………………)

[External– 100%]

Proj. Sc. Asst. - 2 (…………………)

[External– 100%]

Proj. Anly. Asst.-1 (…………………)

[External– 100%]

Proj. Officer (IT) (……..………………..)

[External – 100%]

Proj. Asst. (IT) (………..……………)

[External– 100%]

Head – ECAC Cell (Mr. Subrata Ghosh)

[WBPCB]

Proj. Officer (ECAC) (Ms. Barna Majumdar)

[WBPCB]

Asst. Proj. Officer -1 (…………………………..)

[External– 100%]

Asst. Proj. Officer -2 (………………………….)

[External – 100%]

Steering Committee

(ECAC)

Technical Expert

Committee (ECAC)

Head – Finance & Accounts Cell

(Mr. Subhasis Pal)

[WBPCB]

Proj. Acc. Officer

(……………………..)

[WBPCB]

Acc. Asst. - 1 (…………………)

[External – 100%]

Acc. Asst. - 2 (…………………)

[External – 100%]

Training Spl. (…………………..)

[External –100%] Proc. Spl.

(……………..)

[External –100%] Comm. Spl.

(…………………..)

[External –100%] Proj. Jr. Acc.

Officer (……………………..)

[External – 100%]

Env. Specialist (………………….)

[External – 100%]

IT Specialist (…………….)

[External – 100%]

Asst. Env. Specialist

(………………….)

[External – 100%]

Asst. IT Specialist

(………………….)

[External – 100%]

Office Assistant (………………….)

[External – 100%]

Environment Compliance Assistance Center Center In-charge – Ms. Rita Dutta [WBPCB]

Env. & Soc.. Spl.

(…………………..)

[External –100%]

Project Steering Committee 4. A Project Steering Committee (PSC) has been established to provide

guidance and to build consensus among project stakeholders on major policy issues related to the implementation of the Project. The membership of the PSC is as follows:

34

1. Principal Secretary, Department of Environment2. Principal Secretary, Department of Finance 3. Commissioner, Kolkata Municipal Corporation4. Managing Director, WB Industrial Development Corporation

(WBIDC)5. District Magistrate, Hooghly6. Representative of CPCB, Eastern Regional office7. Representative of Bengal Chamber of Commerce & Industry (BCCI)8. Representative of Indian Chamber of Commerce (ICC)9. Representative of Hooghly Chamber of Commerce10. Prof. Sisir Kr. Nag, Department of Geological Science, Jadavpur

University, Kolkata11. Prof. Kalyan Bhar, Department of Civil Engineering , Bengal

Science & Technology University, Shibpur12. Member Secretary, WBPCB

5. The responsibilities of the PSC will be as follows: Approval of the Project Annual Plan and PIU budgets Approval of the organizational structure of the PIU Carry out a mid-term review of the project. Monitor Project progress and review progress reports and advise as

necessary. Provide recommendations, guidance and, as appropriate, decision

making on matters of substance and priority which the technical teams will put before the PSC (in coordination with the PIU).

Discuss and resolve any implementation issues that cannot be resolved at the level of the PIU.

To consider approval of up-dated procurement plans and suggest amendment of the Credit Agreements, if necessary.

Set up working, evaluation and technical committees as required.

6. Support to the PSC will come in the form of: (I) secretariat services by the PIU, including the preparation of meeting minutes and circulation of agendas, management of documents and relevant data, etc.; and (ii) if required, ad hoc technical assistance to provide the members with the adequate knowledge and exposure to make carefully informed decisions and recommendations on matters put before the PSC.

II. Project Components:

35

7. The following activities will be implemented by WBPCB under the project: Component 1: Strengthening Environmental Institutions: Building

Capacity for Remediationo Sub-component 1.b: Environmental Compliance Assistance Centers o Sub-component 1.c: Institutional Capacity Building of State

Pollution Control Boards Component 2: Investments in Priority Remediation and Environmental

Improvements in orphan hazardous waste sites and municipal dumpsites

Component 3: Project Management

8. Component 1, Sub-component 1.b: An Environmental Compliance Assistance Center has been established to promote increased environmental compliance of industry, particularly small and medium size enterprises, in meeting the national and state regulatory requirements. In order to better assess the existing institutional structure for providing compliance assistance and to learn from other international models, the WBPCB will undertake analytical studies and reach out to the affected stakeholders.

9. Component 1, Sub-component 1.c: This component will provide technical support and infrastructure to the Laboratories of the WBPCB besides institutional capacity building for inventorization and characterization (including determination of waste generation factors) of hazardous and municipal solid waste generated in the state, assessing public health and ecosystem risks and economic, social and environmental benefits derived from project activities. This component will facilitate WBPCB with specialized technical expertise to support the monitoring of demonstration sites under the project and to develop the hazardous waste remediation and rehabilitation program in the state. The WBPCB will require technical training to support the effective utilization and analysis of data from acquired laboratory equipment, and to strengthen the capacity in management and remediation of hazardous waste.

10. The WBPCB will require specialized laboratory equipment, GIS mapping (software), and other equipment to analyze data from demonstration sites, monitor environmental impacts, and develop the hazardous waste remediation and rehabilitation program in the state. The technical equipment will include the following items:

GC-MS(HR) ICP-MS Bomb calorimeter

36

Flash point tester Solid waste extraction assembly Concentrator of organic extracts Sampling apparatus assembly for VOCs and POPs Sampling apparatus for Dioxins and Furans X-Ray Fluorescence Spectrometer IR-Spectrometer MSMS attachment for HPLC TCLP apparatus (with zero head space assembly) Spares and consumables for related instruments

11. The detailed activities under Component 1 and their outcomes are detailed below:

Component

Activities Expected Outcome

Technical Assistance for WBPCB

• Inventorisation and characterization of hazardous waste including determination of waste generation factors;

• Mapping of hazardous waste units, illegal hazardous waste dumpsites, and municipal waste dumpsites;

• Pre-feasibility study of contaminated soil and groundwater from hazardous waste at targeted priority sites;

• Environmental and social impact assessment of municipal solid waste dumpsites.

Inventory of Hazardous waste generators and quantities;Inventory of illegal dumpsites for industrial waste;; ESIA of illegal hazardous waste dumpsites and municipal waste dumpsites.

Infrastructure Support for WBPCB

• Procurement of necessary sampling and Analytical equipment, specialized laboratory equipment, GIS mapping, and other equipment to analyze data from hazardous waste and municipal waste demonstration sites, monitor environmental impacts, and develop the

Infrastructure facilities in the laboratories of the WBPCB will be upgraded.

37

Component


hazardous waste and municipal waste remediation and rehabilitation program in the state.

Environmental Compliance Assistance Center (ECAC)

Analytical study of existing institutions in WB that provides compliance assistance.

Workshop to introduce international compliance assistance models to key stakeholders;

Workshops to involving diverse stakeholders in vision and action planning regarding ways to strengthen the institutional models for environmental compliance;

Published reports of workshop proceedings for interested stakeholders, government ministries, and the public.

An effective ECAC ensuring better environmental compliance

Technical Training for WBPCB

Training of the staff of WBPCB in: International training related to

quantification and categorization of process specific hazardous wastes and determination of waste generation factors for specific waste types

International training related to monitoring of environmental impact of legacy sites for various classified wastes

International training related to operation of the equipments used for contaminant study (soil & ground water aquifer) including POP & VOC and training related

Technical training for building the capacities of the staff to support the effective utilization and analysis of data from acquired laboratory equipment, and to strengthen the capacity in management and remediation of waste dump sites.

38

Component


to QA/QC protocol Domestic training related to

statistical methods for interpretation and validation of data

International training related to use of modern tools to identify legacy sites & remediation technologies for contaminated sites

Domestic training related to development of onsite and offsite emergency response plans

Domestic training on integration of 4R approach in process

International training on monitoring of land fill gases and leachate analysis for municipalities

12. Component 2: Project demonstration activities will be implemented in pilot sites in WB which have been identified due to their advanced state of readiness. Project investments for remediation will be defined on the basis of Area-wide Management Plans focusing on hazardous waste and old solid waste dump legacy sites, where the pilot area management plans for remediation will be developed and implemented with stringent social and environmental safeguards in place.

13. Site C: Remediation of Dhapa MSW site: This component includes clearing the existing municipal solid waste dump yard in Dhapa, reducing the risks from contamination and exposure to health hazard and providing improved air quality and ambient environment for the communities near the site.

14. Site D: Remediation of Hooghly Hazardous waste sites: Remediation of the following 7 identified contaminated illegal hazardous waste dumping sites will be undertaken under this activity:

Site1: Near Ghosh and Sarkar Weigh Bridge, Delhi Road, Village Simla/Madpur,

Site-2: Netaji More, Delhi Road (1.7 km from Baidyabati)

39

Site -3: Near Netaji More, Delhi Road Site-4: Near Zenith Timber Products, Netaji More Site-5: Near Pashupati Seong and East India Flour Mills, Delhi

Road Site-6: Ashalata Brick Field, Near Indotan Industries Site-7: Near M/s Shivam Gases Ltd., , Chakundi, Dankuni

15. Additionally, the WBPCB will consider upgrading the existing hazardous waste landfill at Chakundi, which is being used for disposal of chromium bearing wastes by Bichromate Manufacturing Units, if required as an alternative to transportation of untreatable waste from Site D. Technical provisions for containment and cover system have to be designed and approved by WBPCB before any action take place.

Site C: Dhapa Dumpsite

Activity Activities/ Consultancies

Outcome

Phase I and Phase II ESA of the site to assess the contamination by leachate and garbage to the surrounding ground and surface water; under the extent, quantity and characteristics of contamination;


Baseline Status Report with clear delineation of contaminant issues.

ESA to understand environmental/ecological concerns; socio-economic issues; transportation, land use and other issues.

-do- ESIA Report

Development of Remedial Options and Action Reports. The Options should include Landfill Rehabilitation and Closure of dumpsite; LFG control and management; Leachate control and management; Landfill


Remedial Options Report and finalized Remedial Action plan after discussions and consultations

40

Activity Activities/ Consultancies

Outcome

mining; Reclamation of recyclables and composted waste; Potential change in land use; etc.Implementation of RAP NGO works for

community communication, identification of PAPs

Contract and cleanup


Post closure monitoring


Site D: Hooghly Hazardous Waste Sites: Activity Activities/

ConsultanciesOutcome

Environmental Site Assessment – for delineating the contamination – assessing the extent of contamination in surface-/ground water, sediments and soil; quantities, characteristics and topographical information;


Detailed Site Investigation Report

41

Remedial Options Study along with Site Specific Risk Assessment to develop the standards for cleanup of site for water, sediments and soil surrounding the dumpsite.

NGO Work for community communication, identification of PAPs

Final SSRA and the recommended option for Cleanup.

Remedial Action Plan (RAP) – will be developed based on detailed Phase III- can be part of the Phase III or separate. – provide engineering for how to go about the cleanup including technology; engineering and equipments.

GIS Works and identification of data gaps

Remedial Action Plan

Implementation of the RAP including removal of contaminated waste /sediments and soil; treatment of contaminated water;

Post remediation ground water investigation, and monitoring

Contract and Contract implementation




Post remedial strategy Post closure monitoring

16. The same activities will apply for the upgrading of the Chakundi site, if deemed necessary by the WBPCB.

III. Project Budget for WBPCB

42

Description of Service Estimated Cost Incl Cont. & Taxes

(in 000 US$)

ECAC:-Preparation of a detailed business strategy and plan

180.34

Technology Assimilation / Sector studies done by international experts

1298.43

Periodic sector studies done by domestic / national experts

1659.32

Sub Total 3138.09Hooghly HW SitesDetailed design, engineering and bid document preparation and supervision

606.03

Inventorization and Characterization of HW Categories and Sampling and analysis of HW

264.50

Hooghly Sites Social Support (Firm) 46.09Independent third-party soil & water monitoring – Hooghly HW Sites

139.62

Community communication – Hooghly HW Sites NGO/Firm

6.57

Environmental Monitoring Initiative - HooghlySub Total 1140.94

Dhapa MSW Site:-Detailed feasibility / engineering study and bid document preparation and supervision -

236.71

Impact of MSW Dumpsites on Environment 169.84Dhapa Social Support (Firm)Community communication and monitoring – Dhapa MSW Site

43.28

Environmental Monitoring Initiative - Dhapa 24.67Sub Total 709.55

PIU Assessment and preparation of priority contaminated sites at Khandla / Durgapur and Belda/Dankuni

956.46

Identifying Illegal Dumpsites 137.22Information System – Technical Manpower (Consultant – Information Management System

21.40

Procurement Assistant (Full time) 26.95Procurement Specialist (Full time) 38.61Environment & Social Safeguards Specialist 46.09

43

Communication Specialist-Consultant 46.09Project Coordinator 33.79Project Officer/Engineer(3 nos) 196.10Project Assistant Scientific (2 nos) 336.87Accounts Assistant (2 nos) 40.44Environment Specialist for ECAC 315.24IT Specialist for ECAC -Assistant IT Specialist for ECAC -Office Assistant for ECAC -

Sub Total 2195.26*Assumption: price contingency 10% and Physical contingency 10%

44

SECTION V

ENVIRONMENT AND SOCIAL MANAGEMENT FRAMEWORK

1. Component 2 - Investments in Priority Remediation and Environmental Improvements: Rehabilitation of legacy hazardous waste sites: More specifically, the four sites selected for remediation in the pilot states of AP and WB involve the following Safeguard Policy Issues:

Site A: Remediation of Noor Mohammad Kunta, Andhra Pradesh

2. There is a small religious site next to the lake and a nearby cemetery. The ESA includes an assessment of possible impacts on Physical and Cultural Resources and mitigation measures to ensure that possible impacts are addressed and protected according to World Bank policies on Physical Cultural Property (OP/BP 4.11). The Masjiid-O-Darga of NMK lake and the graveyard are the only religious places likely to receive direct and temporary impact from project activities due to the site proximity. The recommendations are taken into consideration not only in terms of diminishing disruption of religious rituals but also in terms of safety and health hazards. There also is evidence of a small number of rag-pickers (approximately 10) who collect metal and other saleable waste from around some of the smaller lakes. These individuals have been identified and their circumstances are addressed by the SMP, in accordance with the requirements of GOI and World Bank Safeguards Policies related to rehabilitation and income restoration.

Site B: Remediation of the Dumpsite in Kadapa, Andhra Pradesh

3. Though project activities would not require relocation of people, they would shut down income sources for rag-pickers and others whose livelihoods are derived from dump materials. The ESA has identified these individuals, determined whether they belong to SCs/STs/OBCs, and has prepared an SMP to properly protect and compensate them as required by GoI, GOAP, and World Bank Safeguard policy requirements (notably OP/BP 4.12 and OP/BP 4.10). In addition, the SMP provides for job skills training, livelihood support and incentives to ensure that the children who were formerly working as ragpickers attend school, as well as health and rights awareness-raising activities, in order to help improve the life opportunities of PAPs. A RAP has been prepared for several families of rag-pickers who were identified during the social

45

assessment as living in make-shift shelters on the site and the same will be verified during project implementation, and the RAP will be updated accordingly.

Site C: Remediation of Dhapa - old municipal dump site adjacent to East Kolkata Wetlands, West Bengal

4. The following safeguards and other social issues have been observed at the site:

The KMC is constructing a brick wall around the whole area in order to demarcate the area (not to keep out rag-pickers). The fencing-off of the area is a policy decision made and implemented by local government well before the site is being considered for inclusion as one the project demonstration sites. The Environmental and Social Assessment (ESA) has developed an SMP that makes recommendations on how to help the state to develop a plan for restoring income of the approximately 600 rag-pickers who will no longer have access to the 8.21-ha plot (closed around end of Year 2) and the 12.8-ha plot (closing around end year 5).

Rehabilitation and Restoration of Income for rag-pickers: Up to 600 rag-pickers are active on the total 21 acres for their livelihoods. About half are children under age 18. The majority of rag-pickers are female, although there is a sizeable representation of males as well. These are people who reside in the villages surrounding the site. They are mostly Mondal people, who are SCs (so in this case World Bank OP/BP 4.10 on Indigenous Peoples would not be triggered). This is a full-time job for many, and for some households in the nearby village, rag-picking is the sole source of income. Each full-time rag-picker gathers 50-100 kg of waste per day, sale income from which yields an average of 150 Rs per day. The children who are rag-picking (some attend school part time) earn an average income of 25 Rs per day. According to stipulations of World Bank Safeguards Policy OP/BP 4.12, the rag-pickers’ income will be compensated when the dumpsites shut down, before which time they will receive job training for alternative employment opportunities. When the 8.21-ha area is shut down by end of Year 2, it is predicted that most, if not all, of the rag-pickers there will move to the larger dump site and continue rag-picking until that dumpsite is closed by end of Year 5. The SMP has proposed a phased process of rehabilitation and income stream restoration, as well as means of encouraging families to keep their children in school and not let them near the dumpsite, as children are more vulnerable to the disease associated with the waste.

Three small vendors set up around the dump-site to sell food, tea, betel leaf, chewing tobacco. The estimated revenue from total food

46

sales per day is 50-100 Rs. per person per day. The SMP also proposes means of compensation for lost potential income to these parties.

Surrounding the two dumpsite ‘hills’ is about 700 ha of land that is actively farmed by local community members. The farming produce consists of vegetables (e.g., cauliflower). Toxic waste from the dumpsite leaches into the water and soil and evidently contaminates the produce. This leachate is visible, gathering even outside of the brick wall being built around the 8.21-ha area. The land is all owned by KMC, and none of the local people farming it have leases; they are all encroaching. The farming issues are addressed as part of the SMP.

People living near the dumpsites (about 300 households, approx. 3000 population) report myriad problems that they associate with the nearby pollution. These include:

- Water that is so polluted (red-brownish color in the wells) that people no longer drink it; they use the contaminated water for farming and washing still. The water that KMC is supplying is not adequate and barely meets the needs of cooking and drinking.

- Asthma, TB, malaria, and diarrhea are prevalent in all villages. Eye irritation and nose burning because of methane gas released by the dumpsite was reported by residents of Kannapaedia. This is closest village to the dumpsites and is directly down-wind of it. Only this village expressed feeling eye irritation and nose burning as a direct result of the nearby site.

- In all the villages (Khanaberia, Durgapur, Anatamahal, Voicethala, Makaltala, Choinabae and Ucchipota), people complained about the bone recycling industry and cremation of people (separate place from the bone recycling) on the site. People identify the pollution as the cause of their diseases and complain about the burning smell. Those farming the surround fields complain about the burning of bodies.

- The major occupations in these villages are farming, fishing, rag-picking and working as laborers in the Dhapa farm lands and in Kolkata. Farming occurs right outside the boundary wall, although KMC has cleared the nearest farming area. Fish ponds also lie outside the wall, and only men are involved in the fishing. The whole area is wetlands; in the villages many of the houses are surrounded by water. During monsoon season, the approach road also is filled with water. The groundwater is not of good quality for farming and fishing.

Site D: Remediation of seven (7) chemically contaminated sites in the District of Hooghly, West Bengal

47

5. Although the population living at the sites is very small (approximately 6 people at the Sarkar Weighbridge site and 15 people at the Minu Bridge site—all living in dhabas at each site), they would need to be relocated, at least temporarily, during remediation activities at the sites and compensated for lost income during the period remediation. At the Sarkar site, the people living there also are doing business for the truck drivers who come through for the weighbridge and each adult person earns an average of 2500 Rs. Per month. There also are 2 children earning money there (washing utensils), about 1,000 Rs. Per month. At the Minu bridge site, there is a 4-member family that owns the dhaba, plus about 11 people who stay in the dhaba and also work, earning about 5,000 Rs per month (the earnings are higher at this site because there is more land available for parking.

6. The Durga Temple is the only Physical Cultural venue likely to receive direct impact from project activities due to its proximity to the Ashalata Brickfield Hazardous waste Site. In order to mitigate the potential risk associated with accessing the temple particular attention has been given to secure access, lighting of the temple during works and road safety, preventing noise and dust to worshipers and waste spillage from transportation.

Generic Timeframe for ESMF Implementation

7. ESMF implementation will take place one month before project effectiveness and lasts until post remediation environmental and social monitoring. The time frame for implementation with all these technical stages of remediation is given in Table below.

48

Technical Stage during Remediation

Social-Environmental Management Measures Responsible Party

1 month prior to effectiveness

Develop TORs RFPs for NGO teams (4) dealing with SMPs at each site

SPCBs, under supervision of MoEF and World Bank

Project Effectiveness

ESMP already developed, references in project legal document regarding ESMP implementation responsibilities: SPCBs send out RFPs for 4 NGO teams for social issues.

1.5 months after effectiveness

Bidding documents received; review bidding documents to verify compliance with ESMP requirements for implementation, including cost provisions

SPCBs

2 months after effectiveness

Grievance redress mechanisms for all sites in place SPCBs


NGO teams are procured; signing of contract with legal provisions for implementation

NGO teams, under supervision of SPCB social/env specialist


-Prepare plans for giving ID cards to PAPs-Prepare arrangements for income restoration in collaboration with SPCB/Municipal Commissioner-Prepare training plans for different groups of people among PAPs- Prepare content for community awareness workshops

NGO teams; SPCB PIU communications specialist


-Verify list of PAPs/income restoration recipients; - Cut-off date for PAP eligibility; process ID cards-Hold health/rights awareness workshops for PAPs; NGOs identify who wants training in first phase and subsequent phases, and who will continue rag-picking until final dumpsite closes (Dhapa)

NGO teams, under supervision of SPCB soc/env specialist;PIU

49

-Hold first broader community awareness workshops-Identify local community groups to participate in monitoring

communications specialist

6 months after effectiveness: Implementation of site works commences

- Relevant PAPs relocated and compensated, according to RAPs - Begin distribution of all other compensation/income restoration packages for adult PAPs- Compensation to former child PAPs’ families occurs via monthly stipend after NGO verifies full-time school attendance: 12 months, according to SMPs - Training in job skills, financial management begins; 6-month training program for first batch of PAPs- PAPs who may continue as ragpickers (Dhapa) receive safety equipment- Grievance redress mechanism staff meet with SPCB once per month

NGO teams;SPCBs/District Commissioner (holding funds)

Throughout remediation of sites

-Supervision specialist conducts random field checks throughout- Skills training continues for total 2 years- NGOs facilitate job acquisition for trained PAPs - PIU verifies there are no complaints filed in grievance redress mechanism or fully addresses any complaints- Grievance mech. staff continues monthly meetings at SPCB throughout Yr 1 and Yr 2; throughout Yr 3-5 have semi-annual meetings.- NoC for setting up Diesel Generator sets used for power backup.- Permission for Storage, handling, and transportation of Hazardous material from SPCB.-Pollution under control certificate under motor vehicle act for all vehicles used for remediation.-In case of soil being procured from private land then NoC required from land owner. If soil is used from government land then permission certificate from that govt. agency.-Restoration plan for borrow area should be prepared by remediation contractor.- Permission from Central Ground Water board for setting up bore

SPCB PIU Env/Social specialist-NGO teams

50

well for remediation purpose.-Labor license from labor department in order to hire labor for remediation.-Proper disposal of waste water from labor camp.-In case of blasting permission from mine concern mine department. - Environmental Monitoring will be carried out at locations which will be finalized by contractor in consultation with Environmental Expert of PIU.-The frequency and no of locations have been given in ESMP section of this report

Remediation works completion

-Verify absence of complaints filed in grievance redressal mechanism, discuss with communities.-Monitoring of air, soil, noise water in order to evaluate environmental conditions after remediation works completes.

SPCB

51

SECTION VI

PROCUREMENT PROCEDURESFOR MOEF, APPCB AND WBPCB

I. Procurement Management

The procurement management is organized jointly by respective Project Director, Project Coordinator and the Procurement Consultant. They will be responsible for all procurement, financial management, quality assurance, monitoring and evaluations under the project.

General

Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004 revised October 2006 and May 2010; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 revised October 2006 and May 2010, and the provisions stipulated in the Loan and Credit Agreements. The various items to be procured are described in the tentative procurement plan as in Annexure - III. For each contract to be financed by the Project, the different procurement or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated annually or as required to reflect the actual project implementation needs and improvements in institutional capacity All procurement shall be made by the PMC.

The projected procurement would initially be advertised in a General Procurement Notice (GPN), and Specific Procurement Notices to be issued thereafter as needed. The Borrower will publish a GPN, acceptable to the Bank, online in the UNDB and in the Development Gateway's dgMarket. The individual specific procurement notices (SPN) for goods and civil works and request for expression of interests (REoIs) for consulting services will be advertised in a national newspaper and/or in the beneficiary's website. The SPN for International Competitive Bidding Goods and Civil Works packages and REoIs for consultant's contracts above USD 200,000 equivalent would be advertised on-line in UNDB/dgMarket. The results of contract awards for goods, civil works and consulting services will be posted on the UNDB and in the Development Gateway's dgMarket as required under the Guidelines.

The Recipient would follow the World Bank anti-corruption measures and would not engage services of firms and individuals debarred by the Bank. In this regard the MOEF/PMC will ensure to check such debarred firms and

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individuals, list of which is located at: http://www.worldbank. org/html/opr/procure/debarr. html

Procurement of Works -Works contracts estimated to cost less than USD 10 million may be purchased following the National Competitive Bidding (NCB); below are additional provisions for NCB procedures. Small works contracts estimated to cost USD30,000 and less will be procured following the shopping procedures, on basis of three written quotations obtained from qualified contractors. Procurement will be done using the bidding documents agreed with Bank.

Procurement of Goods and Services (other than consulting services): Goods procured under this Project would include IT equipment, office furniture, vehicles, environmental monitoring equipment, lab and testing equipment, etc. Goods, technical services and equipment estimated to cost US$500,000 or more will be procured through International Competitive Bidding (ICB). Readily available off-the-shelf goods estimated to cost less than US$ 30,000 each may be procured through Shopping on the basis of three written quotations obtained from qualified suppliers. The MOEF/PMC would solicit quotations from at least three (normally 5-6) suppliers from eligible source countries. Alternatively the Goods can also be procured under Director General supply and disposal rate contract, under National Shopping. In case of Shopping for procurement of IT equipment (hardware, software, etc.) the MOEF/PMC will follow the procedures set forth by the Bank.

Direct Contracting: When certain goods are available only from a particular supplier or in case where compatibility with existing equipment requires that goods must be procured under Direct Contracting (in accordance with para 3.6 of Procurement Guidelines) and the Bank's prior approval is obtained with due justification.

Selection of Consultants: Consulting services under the Project would include institutional strengthening and capacity building of different institutions, design, investigation and supervision related to civil works contracts, surveys, feasibility studies and other consulting and training services and workshops. .

Short lists of consultants for services estimated to cost less than USD 500,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

In such cases include the following text in the REOI “In accordance with paragraph 2.7 of the Guidelines for the Selection and Employment of Consultants by World Bank Borrowers, the short list for this assignment

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may comprise entirely of national consultants, however foreign consultants may also express interest for consideration. For that effect, all interested firms are informed that all documents, including the Request for Proposals, the Proposal and consultant’s contract for the proposed assignment will be issued in English, and contract price and corresponding payments will be in Indian Rupees.”

The RFP will be based on (i) Language will be English and (ii) Payment will be in Indian Rupees.

Method of procurement to be adopted : The following methods of selection will be adopted depending upon size and complexity of assignment, as defined in the Consultancy Guidelines:

Category Method of Procurement

Threshold (US$ Equivalent)

Consultants’ Services

CQS Up to 100,000 per contractSSS with prior agreement with the

BankIndividuals No Limit QCBS/QBS/FBS/LCS (i) International shortlist(ii) Shortlist may comprise national consultants only

>500,000Up to 500,000

The choice of the appropriate method of selection is related to the nature, size, complexity and likely impact of the assignment, technical and financial considerations. The method of Selection for each consultancy shall be given in the procurement plan and the Implementing Agency will execute the procurement plan agreed with the Bank. No selection of consultancy shall be initiated outside procurement plan and such selection shall not be eligible for Bank financing.

Training: Training will include seminars, conferences, workshops and study tours in connection with the activities included in the Project components and reflected in the Annual Training and Study Tour Plans that would be prior-reviewed by the Bank. The Bank will clear the plans upfront, while changes and additions to the plan would be reviewed separately as they occur and would cover the list of participants, agenda for training events and estimated budget.

Consultants required for preparation, facilitation in the procurement of goods / equipments, consultancies and for conducting training activities

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shall be selected under appropriate procedures for selection of the Consultants as described above. Selection of such consultants shall be included in the Procurement Plan.

Operating Costs: The operating costs would finance rent and utilities and also. It will also cover the POC expenses in regard to POC staff salaries, office space, office supplies, utilities, communication, disposable of IT equipments, publication of notices, vehicle operation, travel (domestic), supervision cost and contingencies etc. but excluding salaries of officials and employees of the Recipient. Consultant required for providing, facilitation of these activities shall be selected under appropriate procedure for selection of the consultants as described above. Selection of such consultant shall be included in the procurement plan.

II. Procurement Staff

The POC will have one full-time procurement Consultant who have gained knowledge/experience on Bank’s procurement procedures related to consulting services and goods contracts. The POC procurement Consultant and Project Coordinators will attend procurement trainings/seminars organized regionally by the Bank on procurement.

The procurement file containing up to date procurement documents (guidelines, manuals, templates of procurement notices, standard bidding documents for procurement of goods and works, standard request for proposal documents for consulting services, evaluation report formats, regional and simplified procurement documents etc.) shall be prepared by the Bank and provided to POC at the time of Project Launch Workshop. The POC is recommended to visit the Bank's web-site frequently to ensure using the most updated procurement documents. The Bank’s Consultancy Manual on the web site is very informative. The Project Launch Workshop will have a specific session on Procurement Training for the POC staff and other project beneficiaries.

Responsibility of Procurement Consultant

The Consultant shall assist the Project Coordinator in various components of the project in the matter of procurement of goods, equipments, consultants and training materials, and also handle files and correspondence and coordination, procurements of goods/equipment, consultants and training materials with the World Bank, various implementing agenciesunder the directions of the Project Director / Project Coordinator he shall organize the evaluation Committee and organize the evaluation of the bids by the evaluation

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Committee and will obtain the approval of MoEF and will help in awarding the contract to the winner after obtaining ‘No objection’ of the Bank and if necessary enter into the negotiations prior to award of the Contract.

III. Communications and Supervision

In order to avoid any confusion, a clear communication procedure between the POC and the beneficiaries and between the POC and the World Bank project staff should be established. For example, all correspondence relating to procurement, disbursement, etc., should be routed to the Bank through the POC. The useful role of the POC here will be to ensure the completeness and accuracy of the information being exchanged with the World Bank team. This will also allow the POC to keep track of the procurement and other activities being undertaken by beneficiaries and to take corrective measures in case of delays. Furthermore, this will allow POC to collect data on procurement, etc., for preparing consolidated periodic project progress reports.

IV. Procurement Methods for Goods and Works

The procurement methods permitted under the project are as follows:a. International Competitive Bidding (ICB)b. National Competitive Bidding (NCB)c. National and International Shopping d. Direct Contracting (Sole-Sourcing)

a) International Competitive Bidding (ICB)

The International Competitive Bidding procedure shall be used for contracts likely to attract foreign competition either by their nature or by the value of the contract. Under the project, the ICB method is applicable where the contract is estimated to cost more than $500,000 for goods and Equipment and $10 million for works. All Goods and Works procurement above US $ 300,000 shall be subject to prior review by Bank. National firms are encouraged to bid for ICB contracts. Bids are invited on the basis of adequately prepared bidding documents based on the Bank’s Standard Bidding Documents. Bidders are allowed to quote and sign contracts in national as well as foreign currency and not more than three currency in a contract. The bidding period for ICBs shall not be less than six weeks from the date of advertisement. The advertisement shall also be placed in a national newspaper of wide circulation.

b) National Competitive Bidding (NCB)

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The National Competitive Bidding procedure shall be used where the contract is estimated to cost $30,000 up to $500,000 for goods and equipment. Prior review threshold for Goods and Works is US $ 300,000.

The bidding period shall not be less than four weeks from the date of advertisement. Domestic preference shall not be used in the evaluation of NCB bids.

National Competitive Bidding ProceduresNCB will be conducted in accordance with paragraph 3.3 and 3.4 of the Procurement Guidelines and the following provisions:

(a)only the model bidding documents for NCB agreed with the GOI Task Force (and as amended from time to time) shall be used for bidding;

(b)invitations to bid shall be advertised in at least one widely circulated national daily newspaper, at least 30 days prior to the deadline for the submission of bids;

(c) no special preference will be accorded to any bidder either for price or for other terms and conditions when competing with foreign bidders, state-owned enterprises, small-scale enterprises or enterprises from any given state;

(d)except with the prior concurrence of the Bank, there shall be no negotiation of price with the bidders, even with the lowest evaluated bidder;

(e)extension of bid validity shall not be allowed without the prior concurrence of the Bank for the first request for extension if it is longer than four weeks; and for all subsequent requests for extension irrespective of the period - such concurrence will be considered by Bank only in cases of Force Majeure and circumstances beyond the control of the Purchaser/Employer;

(f) re-bidding shall not be carried out without the prior concurrence of the Bank. The system of rejecting bids outside a pre-determined margin or bracket of prices shall not be used in the project;

(g)rate contracts entered into by DGS&D will not be acceptable as a substitute for NCB procedures. Such contracts will be acceptable however for any procurement under Shopping procedures; and

(h)two or three envelop system shall not be used.

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c) National Shopping

Shopping shall be used for procuring goods and equipment of standard specifications that are small in value where the contract is estimated to cost less than $30,000 for goods and equipment. A minimum of three quotations shall be solicited from at least three different suppliers, with good track record. Bidders must be given adequate time to respond. Invitation for quotations shall be in writing and will have the description and quantity of the goods as well as the required delivery time and place of delivery, and must include the date, time and place of submission of quotations. No

Prior Review

Prior Review

IMPLEMENTING AGENCY PREPARES TENDER DOCUMENTS

Review by Procurement Specialist/Project Coordinator

No Objection by World Bank

IMPLEMENTING AGENCY SIGNS CONTRACT

IMPLEMENTING AGENCY SUBMITS 2 COPIES OF SIGNED CONTRACT TO WB

IMPLEMENTING AGENCY AWARDS CONTRACT AND PREPARES CONTRACT

DOCUMENTS

CONTRACT IMPLEMENTATION

IMPLEMENTING AGENCY RECEIVE TENDERS, EVALUATE AND PROPOSE AWARD

IMPLEMENTING AGENCY issue invitation to tender

Review by Ministry Review Committee

FLOW DIAGRAM FOR PROCURING NCB and ICB GOODS AND WORKS

Review by Entity Tender Committee

No Objection by World Bank

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bidding documents are used. Quotations shall be in writing and shall be opened at the time indicated in the letter of invitation. Quotations may be submitted by fax or email if so specified. Shopping is subject to the Public Procurement procedures and the Bank’s subsequent post review.

d) Direct Contracting (Sole Sourcing)

This is procurement effected by placing direct orders (single sourcing) and is not encouraged; for this reason, it is subject to prior approval. However, where it becomes necessary to use the method, it shall be restricted to and reserved for:

(i) Procurement of items, which are proprietary in nature;(ii) Urgently required items;(iii) Repeat orders to meet additional requirements of the same

product or for essential spares from the supplier of an earlier procured equipment, provided there is no upward revision in the price of the item or a change in specification;

(iv) Extension of works contracts where this is deemed the most economic procedure; and

(v) Exceptional cases, such as in response to natural disasters, and where,

(vi) Competitive bidding procedures failed to produce a satisfactory contract.

4.1 Thresholds for Procurement Methods:

Table 2.4:- Thresholds For Procurement Methods -Civil Works Expenditure Category

Procurement Method

Value (threshold) per contract

Civil Works and Supply and Installation

International Competitive Bidding (ICB)

National Competitive Bidding (NCB)

Shopping

Force Account

Civil works estimated to cost more than US$ 10.0 million equivalent

Civil works estimated to cost more than US$ 30,000 and less than or equal to US$ 10.0 million equivalent

Civil works estimated to cost the equivalent of US$ 30,000 or less

wherever agreed in the Procurement Plan and performance/productivity

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Expenditure Category

Procurement Method

Value (threshold) per contractstandards will be agreed with the Bank before commencement of work

Table 2.5:- Thresholds For Procurement Methods -Goods Procurement of Goods

Procurement Method

Value (threshold) per contract

Goods/ Equipment/ Machines

International Competitive Bidding (ICB)

National Competitive Bidding (NCB)

Shopping

Direct Contracting

Contracts estimated to cost more than US$ 500,000/- equivalent

Contracts estimated to cost more than US$ 30,000 and <= US$ 500,000/- equivalent

Contracts estimated to cost less than or equal to US$ 30,000 equivalent

As agreed in the procurement plan

4.2 Bidding documents to be used The Standard Bidding documents of the Bank as agreed with GoI task force (and as amended from time to time) for all procurement under NCB will be used. For ICB/ LIB contracts only Bank’s Standard Bidding Documents (SBDs) will be used. Following bidding documents will be used for procurement of goods and works :-

S.no

Particulars Document to be used

1 Contract for works valued less than equivalent of US$ 30,000/- each:- under NS procedures.

W5 or W9

2 Contract for works beyond US$ 30,000/- and upto US$ 100,000 /- under NCB procedures

W1

3 Contract for works beyond US$ 100,000/- under NCB procedures upto US$10Million

W2

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S.no

Particulars Document to be used

4 Contract for works beyond USD 10 million ICB using Bank’s SBD

5 Contract for goods valued less than equivalent of US$ 30,000/- following NS procedures

E5

6 Contract for goods beyond US$ 30,000/- and upto US$ 200,000/- following NCB procedures.

E1

7 Contract for goods following ICB procedures

ICB using Bank’s SBD

4.3 Earnest Money/ Bid Security

Earnest money (bid security) to be deposited by the bidders shall be for a specified amount for each package/ schedule/ item as indicated in the bid/ tender document. It shall normally be 2 to 2.5% of the estimated cost of goods and 1% of the estimated cost of works rounded off to the nearest figure in hundreds/ thousands/ lakhs of rupees. The earnest money shall be in the form of a demand draft/ banker’s cheque/ bank guarantee from a scheduled bank preferably having a branch at the place where tenders are to be submitted, which should be valid for 45 days beyond the validity period of the bid/tender. Fixed Deposit Receipts endorsed in favour of purchaser shall also be acceptable.

The earnest money of unsuccessful bidders shall be refunded soon after the contract signature. The earnest money shall be forfeited in the event of withdrawal of the tender within the original validity, once submitted or in case a successful bidder fails to execute necessary agreement within the period specified or for submitting false, incorrect or misleading information in the bid. This will be in addition to the other remedies available to the purchaser/ employer in terms of the tender documents.

4.4. Terms and Mode of Payment

Payment terms for ICB and NCB are already provided in the bidding documents and should be followed as it is. In the case of shopping payment terms should be 90% payment after delivery to the consignee and balance 10% after acceptance of the goods or in accordance with the practices applicable to the specific goods and works. Tender documents should specify the mode of payment and terms of payment applicable and the type and number of documents required to be submitted by the suppliers or contractors for claiming the payments.

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4.5. Rejection of all tenders

a) Tender documents usually provide that implementing agency may reject all tenders. Rejection of all tenders is justified when none of the tenders are substantially responsive. However, the lack of competition shall not be determined solely on the basis of number of bids received. If all tenders are rejected, the implementing agency shall review the causes justifying the rejection and consider making revisions to the conditions of contract, or a combination of these, before inviting new tenders.

b) If the rejection is due to most or all of the tenders being non-responsive, fresh tenders may be invited.

c) Rejection of all tenders and re-inviting new tenders, irrespective of value shall be referred to the next higher authority for approval than the authority that approved the issue of tender or to the head of the unit. Before re-inviting tenders the specifications may be reviewed for revision, if any.

d) Rejection of tenders, irrespective of value, will require World Bank’s approval.

4.6. Rebidding

Rebidding can happen in following cases:- Bids are not received Bids are to be rejected

In case Regardless of the value, if all the bids are proposed to be rejected and re-invited, the bank shall be consulted before such action is taken by sending the information in the prescribed format for seeking banks clearance. Before rejecting the bids, the IA will first have to

update the estimates as per the current market rates for labour and materials (cement/ steel etc.), actual leads of materials and construction methodology proposed now.

After updation he has to identify the item or items and factors which contributed to the major variation over the updated estimates and

then seek a clarification including breakdowns of unit for the items and factors so identified.

After receiving the reply he has to evaluate and based on his judgment reject if price is unjustified

In case no bids are received , the Project Director is competent to approve the re invitation of the bids . The approval will be subject to bid inviting officer proposing a request giving the reason for lack of response and proposed remedial measures including any revision to the scope of the

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contract etc. The recommendation of the IA will be send to the Bank within 2 weeks from communication of recommendation to the bid inviting officer.

4.6. Performance Security

a) Tender documents for works and supply of goods shall require performance security in an amount sufficient to protect the interest of the implementing agency in case of breach of contract by the contractor/ supplier. The performance security shall be in the form of a bank guarantee or any other instrument acceptable to the purchaser and the amount should be specified in the tender document.

b) The amount of performance security shall be 5 to 10% of the contract price, but normally it should be 5% and should be valid till 28 days after the date of expiry of defect liability period or the guarantee/ warranty period, as the case may be.

c) The performance security deposit shall be refunded within one month after the expiry of guarantee/ warranty period or the defect liability period (as mentioned above).

d) The performance security shall be forfeited in case any terms and conditions of the contract are infringed or the bidder fails to make complete supply satisfactorily or complete the work within the delivery / completion period agreed in the contract without prejudice to the purchaser’s right to take further remedial actions in terms of the contract and bidding documents which formed part of the contract.

4.7. Thresholds for Prior review by the Bank

Prior review of the procurement process by the Bank is indicated in the procurement plan and as summarized below: First contract of any value from each IA; subsequent contracts valued

over US$200,000 equivalent for firms , and above US$50,000 equivalent for individuals; all contracts to be awarded on single source selection basis irrespective of value will be subject to prior review by the Bank. Selections and contract awards to hire Project Director, procurement consultants, inspection agents and legal advisors are subject to prior review, irrespective of the contract value.

Prior review would be at the following stages:

Terms of Reference; Short Listing; draft RFP and cost estimate [all together]. Technical Evaluation report

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Combined evaluation report for information and comments if any. Minutes of Negotiation and draft initialed negotiated contract; and The amendments in the case of contracts subject to prior review,

before granting a substantial extension of the stipulated time for performance of a contract, agreeing to any substantial modification of the scope of the services, substituting key staff, waiving the conditions of a contract, or making any changes in the contract that would in aggregate increase the original amount of the contract by more than 15 percent, the IA shall seek the Bank’s “no objection” to the proposed extension, modification, substitution, waiver, or change. After no-objection from the Bank, the contract amendment shall be signed. A copy of all such amendments to the contract shall be furnished to the Bank. The NPMU/SPMU shall ensure such amendments shall be submitted to the Bank for prior review before the variation order is issued by which contract value will exceed by 15 % or any other modification as stated above is granted.

The final contract with check list shall be submitted to the Bank for record and to obtain WBR Number.

4.8. Disclosure

1. For Central/ State level procurements, information on pre-qualification of the contractors and award of contract would be posted on the programme website. In general the following information should be put on the department’s website:

Making publicly available, all annual procurement schedules promptly after finalization.

Posting all bidding documents and requests for proposals. Making available to any member of the public, promptly upon request

all shortlist of consultants and in case of pre-qualification, list of pre-qualified contractors and suppliers.

The information on pre-qualified applicants and award of contracts. Posting annual progress and mid-term review reports of the project.

2. For State level procurements, the information would be shared with the public through State websites

4.9. Complaint Redressal Mechanism (also applicable to procurement of services)

In order to deal with the complaints from the contractors / suppliers and public effectively, a complaint handling mechanism shall be set up at the State level and immediate action shall be initiated on receipt of complaints to redress the grievances. All complaints on receipt should be entered in a

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register. Within 15 days, these complaints should be discussed and mentioned in the evaluation report of the tender. If a complaint is received after award of contract, it should be discussed on the file and put up to the appropriate authority for a decision. All complaints shall be handled at a level higher than that of the level at which the procurement process is being undertaken and the allegation made in the complaints should be thoroughly enquired into, and if found correct, appropriate remedial measures shall be taken by the appropriate authorities. A register of the complaint redressal shall be prepared at each level and shall contain the following information

Serial Number of the complaints Date on which the complaint was made Particular of the person making the complaint Nature of the complaint Complaint against whom if against a person Detail of action taken and subsequent follow ups

specifying on which date the action was taken Whether the complaint has been satisfied if not why. Action taken against the guilty General remarks

Subsequently an on line data base will be created which will be regularly updated and which would be capable of creating on line reports for the purpose of the monitoring .The States will announce on its web site about having in place a complaint redressal mechanism In case any individual officer/staff is found responsible, suitable disciplinary proceedings shall be initiated against such officer/staff .This register shall also be subject to audit by the chartered accountants engaged by the States as auditor’s.An appropriate response should also be sent to the complainant. 4.10. Procurement Audit (also applicable to Procurement of Services)

Post review of all the contracts under the Project shall be conducted by the government auditors as per laid down procedure. All documents related to procurement should be filed and kept systematically and safely.

In addition, the World Bank will also have the right to conduct post review of the contracts at the central, states, and the districts levels. The concerned authorities will be required to make all relevant documentation available to the World Bank, as and when required.

4.11. Review of contracts by the World Bank (also applicable to Procurement of Services)

1. It is the Bank’s policy to require that Borrower’s, as well as bidders, suppliers, and contractors, under Bank financed contracts, observe the highest standard of ethics during the procurement and execution of

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contracts. In pursuance to this policy, the Bank will have the right to require that a provision be included in bidding documents and in contracts financed by a Bank loan/ credit, requiring bidders, suppliers, and contractors to permit the Bank to inspect their accounts and records and other documents relating to the bid submission and contract performance and to have them audited by auditors appointed by the Bank.

2. Contracts which are (i) not subject to prior review by the Bank, and (ii) awarded following these guidelines will be post reviewed by the Bank.

3. The Borrower shall retain all documentation with respect to each contract (including contracts subject to prior review by the Bank) during project implementation and up to two years after the closing date of the Loan Agreement. This documentation would include, but not be limited to tender documents, bids/ tenders submitted by the bidders/ tenderers, the original signed contract, the analysis of the respective proposals, and recommendations for award, for examination by the Bank or its Consultants. The Borrower shall also furnish such documentation to the Bank upon request. If the Bank determines that the goods, work or services were not procured in accordance with the agreed procedures, as reflected in the Loan Agreement and also detailed in the Procurement Plan approved by the Bank or that the contract itself is not consistent with such procedures, it may declare mis-procurement as established in the procurement guidelines. The Bank shall promptly inform the Borrower the reasons for such determination.

Procurement checklist for all contracts whether post review or prior review, goods or civil works are enclosed vide enclosure 7 to 10.

4.12. Mis-Procurement

The Bank does not finance expenditures for Goods, works and consultancy services, which have not been procured/ contracted in accordance with the agreed provisions of the financing agreement and as further elaborated in Procurement Plan agreed with the Bank. In such cases, the Bank will declare mis-procurement, and it is the policy of the Bank to cancel that portion of credit/ loan allocated to the goods, works, and consultancy services that have been mis-procured. The Bank may, in addition, exercise other remedies provided for under the Financing Agreement. Even when the contract is awarded after obtaining “no objection” from the Bank, the Bank may still declare mis-procurement, if it concludes that the “no objection” was issued on the basis of incomplete, inaccurate, or misleading information furnished by the Borrower or the terms and conditions of the contract had been modified without Bank’s prior approval

IMPLEMENTING AGENCY PREPARES TERMS OF REFERENCE

NO OBJECTION BY WORLD BANK

NEGOTIATIONS WITH SUCCESSFUL FIRM AND DRAFT CONTRACT


IMPLEMENTING AGENCY SIGNS CONTRACT

IMPLEMENTING AGENCY SUBMITS 2 COPIES OF SIGNED CONTRACT TO WB

COMBINED EVALUATION AND SELECTION OF SUCCESSFUL FIRM

CONTRACT IMPLEMENTATION

IMPLEMENTING AGENCY ADVERTISE FOR EXPRESSION OF INTEREST AND PREPARE

SHORTLIST OF CONSULTANTS

IMPLEMENTING AGENCY PUBLICLY OPENS FINANCIAL PROPOSALS OF QUALIFIED FIRMS,

EVALUATE FINANCIAL PROPOSALS


FLOW DIAGRAM FOR SELECTION OF CONSULTING FIRMS (QCBS)

IMPLEMENTING AGENCY PREPARE AND ISSUE REQUEST FOR PROPOSALS

IMPLEMENTING AGENCY RECEIVE AND EVALUATE TECHNICAL PROPOSALS

NO OBJECTION BY TENDER REVIEW

BOARD ETC


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Procurement Procedures

I. SPECIFICS FOR ANDHRA PRADESH :

The procurement management is organized jointly by the Purchase Committee of APPCB and the Project Director of the PIU. All the procurement for the project will be placed before the PSC for approval.

Component 1: Strengthening Environmental Institutions: Building Capacity for Remediation: As the project implementation is through PIU, the procurement shall be for:

i. detailed inventorization, characterization of the Hazardous waste categories in the state,

ii. identification, Characterization and sourcing of illegal dumpsites.iii. remediation study of contaminated soil and ground water for HW

priority sitesiv. Performance Evaluation and preparation of monitoring protocols

for TSDFv. prioritizing industries based on process technologies. vi. identifying the industries for individual treatment and disposal.

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vii. sampling and analysis of different categories of hazardous / Municipal solid waste

viii. impact of MSW dump sites on .environment(15 corporations) ix. GIS mapping of Hazardous Waste units, Illegal dumps and

Municipal waste dumps for three districts. x. Procurement of infrastructure for the laboratories.xi. Strategy Formulations for Environmental Compliance Assistance

Centre and xii. Trainings to staff of the APPCB and officials of stake holder

departments on various aspects of environmental management.

Component 2: Investments in Priority Remediation and Environmental Improvements in orphan hazardous waste sites and municipal dumpsites: This component includes procurement of Goods & Equipment, Works and consultant services for remediation of Noor Mohammed Kunta and Municipal solid waste dump site of Kadapa Municipal Corporation.

Component 3: Project Management: This component includes procurement of consultants for the PIU.

Other Components: Procurement for other components will mainly include incremental and operating cost for hiring of vehicle, purchase of consumables, repairs to equipments, purchase of filter papers etc;

The procurement for the implementation of the component will be carried out centrally by the APPCB. They had experience in handling the Bank assisted projects Procurement following the Bank’s Procurement guidelines i.e. IPP II Project. The APPCB already initiated action by training one of the staff (Analyst Gr-I who is the procurement specialist of PIU) in Procurement of World Bank Procurement Procedures from National Institute of Financial Management, Faridabad from 25th July 2008 to 8th August 2008. He will be responsible for handling procurement in consultation with the respective Unit handling the subject. He will be assisted by Procurement Assistant who will be hired for the implementation of the project.

Procurement of goods: The major procurement of goods and equipment would be under Components 1 and 2 as already discussed above in para 1. Procurement of goods under Components 1 and 2 will be related to GC-MS-MS, CHNS Analyser, Gas Chromatography with thermal disorder system, Solid waste extract assembly etc. These procurements are expected to be of low value except some higher

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value contract like GCMS equipments and shall be carried out following NCB/ICB procedures, depending on the value of the contract and the availability with in India or in a foreign country. However, if any procurement is undertaken following ICB, Bank’s Guidelines and Standard Bidding Documents shall be used.

Procurement of Works: Procurement of works is anticipated like cleaning of lakes, municipal solid waste Management pilot Project under the project, will follow NCB method of procurement procedures.

Selection of Consultants: Selection of consultants would mainly include hiring of consultants including international consultants for all the three components

Training: Training will basically cover workshops, training for staff hands on training for sampling, hands on training for analytical techniques and Instruments, hands on training for processing Technologies and design of landfill facilities etc These shall be carried out in accordance with Procurement plans prepared by the APPCB and approved by the Bank.

II. SPECIFICS FOR WEST BENGAL

The procurement management will be organized by the PIU Director through Procurement Cell with help of Procurement Specialists.

Procurement Plan for Consultancies:

i. ECAC Activities: There are four activities related to ECAC i.e.

a) center’s interior design & development, b) preparation of a detailed business strategy plan, c) technology assimilation/sector studies to be done by

international experts d) periodic sector studies to be done by domestic/ national experts.

ii. Hazardous Waste Studies: The activities are as follows:a) inventorization and characterization of HW categories of

industries and sampling and analysis of HW, b) assessment and preparation of priority contaminated sites at

Khardah, Durgapur, Belda and Dankuni, c) detailed feasibility/ engineering study and bid document

preparation – Hooghly HW sites,

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d) independent supervision consultant – Hooghly HW sites, (e) Hooghly sites – (NGO works),

e) identifying illegal dump sites, f) common communication and monitoring – Hooghly HW sites, g) independent third-party soil & water monitoring – Hooghly HW

sites h) Environmental Monitoring Initiative – Hooghly and i) supervision consultant – Chakundi site.

iii. MSW Studies: The activities related are as follow:a) impact of MSW dumpsites on environment, b) detailed design, engineering and bid document preparation –

Dhapa site, c) Dhapa (NGO work), d) supervision consultant – Dhapa MSW site, e) community communication and monitoring – Dhapa MSW site f) Environmental Monitoring Initiative – Dhapa MSW site.

Engagement of specialists and staff for the project

iv. Specialists to be engaged: a) Environment & Social Safeguards Specialist b) Communication cum Training Specialist, c) Procurement Specialist d) Periodic sector studies – domestic/ national experts – ECAC.

v. Staff to be engaged :a) One Project Procurement Officer - (Full time)b) One Project Accounts Officer - (Full time)c) Two Project Procurement Assistant - (Full time)d) Three Project Account Assistant - (Full time)e) Two Project Scientific Assistant - (Full time for lab)f) Two Project Analytical Assistant - (Full time for lab)g) One Project Officer (IT) - (Full time for Infrastructure Cell)) h) One Project Assistant (IT) - (Full time for Infrastructure Cell)i) Five Project Engineers - (Full time for Technical Cells)j) One Environment Specialist - (Full time for ECAC) k) One Assistant Environmental Specialist - (Full time for ECAC) l) One IT Specialist- (Full time for ECAC)m) One Assistant IT Specialist - (Full time for ECAC)n) One Admin. & Fin. Manager. - (Full time for ECAC)o) One Office Assistant - (Full time for ECAC)

Procurement of Works: Works procured under this project would include remediation of 7 numbers of contaminated illegal hazardous waste dumping sites in Hooghly district and remediation of Dhapa

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MSW site. The works contracts estimated to cost $1,000,000 or more will be procured following the ICB procedures. The project includes a relatively big civil works contract estimated to $16.13 million for physical remediation of these contaminated dumping sites, development of monitoring network and post closure monitoring network and post closure monitoring after remediation till completion of the study period. Given its size and complexity, a pre-qualification stage will be carried out, after which a two stage bidding process will be followed. The trial document “Design, Build and Operate of Solid Waste Facility” may be used by PIU, at their choice, with respective modifications / adjustment. Works contracts estimated to cost less than $10 million may be purchased following the National Competitive Bidding (NCB) procedures.

The activities related to works are • remediation works (excavation & related works) Hooghly HW site, • remediation works (transportation, treatment and disposal) – Hooghly

HW site (7 locations), • closure and containment works (excavation and related works,

stabilization & closure) – Dhapa MSW site, and • design, engineering, remediation and transport works – Chakundi site.

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SECTION VII

FINANCIAL MANAGEMENT

Financial Management Action Plan1. The MOEF will maintain adequate financial management system,

including accounting, financial reporting and auditing to provide reliable and timely information regarding project resources and expenditures. The financial management system will be managed by Programme Management Consultant (PMC) under the guidance and supervision of the Project Director and will prepare the budgets and will control all financial and logistics, such as: payment, purchase and registration of all materials, and preparing financial management reports.

Purpose of Financial Guidelines2. The purpose of these Guidelines is to summarize financial management

arrangements of the project which will be applicable to MoEF and State Pollution Control Boards for smooth financial management of CBIPMP.

Financial Management and Disbursement Arrangements

MOEF as implementing entity 3. MOEF will have the overall responsibility for financial management of

the project and will be supported by PMC in ensuring that funds flow, accounting, internal controls, financial reporting, disbursement and audit are carried out in accordance with project legal agreements and financial guidelines of the project. Key FM task will be: (a) annual budgetary provision for the project and monitoring of project expenditure against project budget; (b) approval of annual work plan and budgets of WBPCB and APPCB; (c) ensuring sufficient and timely funds flow for activities at state level and for MOEF level activities; (d) regular financial reporting at all levels of the project and compilation of quarterly financial reports and annual financial statements of the project; (e) timely submission of reimbursement claims to the Bank; (f) conducting regular financial reviews of state pollution control boards; and (g) ensuring annual external audits at MOEF, APPCB and WBPCB for the project as per the agreed TOR with the Bank, consolidation of implementing entities’ audited financial statements and audit observations, submitting consolidated annual audit report of the project to the Bank and ensuring compliance to auditor’s observations.

Budgets 4. At GOI level, project’s funding requirements will be provided within the

budget of the MOEF as a separate budget line under Externally Aided Projects. Adequate provision will be made by MOEF in the budgets for the year 2010-11 onwards to ensure appropriate funds flow for the

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implementation of the project. MOEF will also ensure that adequate budget provision is made at the state levels for the respective state shares for the implementation of the project activities in AP and WB.

5. Annual work plans and associated procurement plans will be submitted by APPCB and WBPCB to MOEF at the beginning of every financial year based on which MOEF shall release advance funds to the Boards. The PMC will prepare a consolidated work plan for the year for the project, including a work plan for activities at the central level and state levels. The PMC will carry out overall monitoring of project expenditure against project budget and the implementing entities in the state will monitor expenditure against their own budget as well. Bank’s procurement procedures will be followed by all implementing entities.

Funds Flow6. MOEF will implement the project as per treasury mode at the level of

MOEF using the existing system of Pay and Accounts Office (PAO) for project related payments. A contract will be duly signed with the PMC for the project management functions. PMC will also be responsible for payment of routine operating expenditure for the project at the central level and will be provided necessary advance for such purpose.

7. For implementation of the project at the state level, adequate funds will be advanced by MOEF to APPCB and WBPCB. MOEF will release funds to State Pollution Control Boards as per the following installment schedule and criteria:

Financial Year Criteria for releases of funds by MOEF to PCBs (and indicative date)

2010-11 Advance to be released by November 1, 2010 based on approved work plan for 2010-11.

2011-12and onwards

1) 70%: by May 1, based on approved work plan for the year; and submission of progress report and financial report with utilization certificate (UC) for the previous year.

2) 30%: by September 30 or the date of receipt of audit report and audited financial statements of the previous year whichever is later, along with financial report with UC for the expenditure incurred out of the first installment.

Please refer to diagram below for flow of funds to State Pollution Control Boards.

World

Bank

World Bank Government of India(80%)World Bank Government of India

MOEF’s Budget Head

State share from State TreasuryTreasury

(15%)

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Accounting and Internal control 8. Accounting: Accounting and maintenance of records for MOEF level

activities will be carried out as per General Financial Rules (GFRs). For project purposes, cash basis of accounting will be followed. However any advances paid will be classified as advances for the project and charged to expenditure only upon confirmation of receipt of goods/services. Standard books and records will be maintained at MOEF by PMC such as Sanctions File, Expenditure Control Register, Year-wise expenditure details of Pollution Control Boards, Reimbursement Claims and Asset Register. Financial records at MOEF will form the basis of preparation of the Interim quarterly and Annual Financial reports for submission to the Bank the formats of which are included in the operational manual of MOEF.

9. Internal Controls: Internal controls at MOEF for the project will be as per Financial Guidelines for the project and GFRs. A system of annual physical verification of assets procured out of project funds at the MOEF will be established. Internal Audit Unit of MOEF will be authorized to carry out internal audit of the project at MOEF level as per its own discretion.

Finance Staffing 10. It has been agreed to have the position of a finance manager within

the PMC who will be responsible for ensuring adequate financial management arrangements for the project at the centre and monitoring financial management arrangements at the states during the implementation of the project. Given the critical role of the financial manager in the proposed PMC, ToR for this position has been agreed and is included in Financial Guidelines. The position of financial manager will be an integral part of the MOEF (within PMC) for the project at the central level and maintenance of this position throughout the project life will be a financial covenant in the project financing agreement.

State Pollution Control Boards

(PIUs)

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Financial Reporting 11. The MoEF will submit a consolidated quarterly interim unaudited

financial report (IUFRs) in the agreed formats to the Bank within 45 days of the end of each calendar quarter. This will be prepared by the PMC based on expenditure incurred at the central level and expenditure reported in the quarterly IUFRs submitted by APPCB and WBPCB to the MOEF. In addition, consolidated reports on Audited Financial Statement (AAFS) of the project will be submitted annually to the Bank.

Disbursement12. The Government of India will open a Special Account (SA) in Reserve

Bank of India to receive disbursements from the Bank. The initial SA Advance will be based on forecasted cash flow of one year at the beginning of the project and will be provided to GOI. The limit of the advance has been established at USD 5 million. Thereafter all disbursements will be made based on IUFR to be submitted on calendar quarterly basis and such reimbursements will be annually reconciled by MOEF with the consolidated annual audited financial statements submitted to the Bank as elaborated under the “External Audit” para below.

Project Preparation Facility13. A Project Preparation Facility (PPF) for the project was established for

US$ 570,000 (reference: Q5270) for the project, which is currently valid till September 30, 2010. Audit report for the expenditures incurred under PPF until 31 March 2010 will need to be submitted by 30 September 2010. The expenditure for the next six months will be audited along with the project expenditure for 2009-10.

External Audit 14. Annual audited project financial statements will include: (i) actual

expenditure at the implementing entity at central level, i.e., MOEF; and (ii) actual expenditure at each implementing entity at state level, i.e., APPCB and WBPCB. MOEF will be responsible for consolidation of all implementing entities’ audited financial statements and audit observations and submit reports on consolidated annual audited financial statements to the Bank, along with a summary of audit observations as well as actions taken to address such observations. This consolidated information along with a reconciliation of the audited expenditure with the reimbursement claims submitted to the Bank on the basis of IUFRs will be submitted to the Bank within six months of the close of the financial year. The audit will be done by private chartered accountants at the states and by C&AG at MOEF. A project specific TOR for audit has been agreed with MOEF and are included in Financial Guidelines of the project. The audit for the central level expenditure will be conducted by C&AG as per the TOR already agreed with the DEA and Bank.

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15.The following audit reports will be sent to the Bank Audit Report Implementing

AgencyDue Date

Annual consolidated audited financial statements and summary of audit observations (along with a reconciliation of the audited expenditure with the reimbursement claims submitted to the Bank on the basis of IUFRs)

MOEF MOEF (based on consolidation of audited financial statements for expenditure incurred at MOEF, APPCB and WBPCB)

30 September

Special Account DEA/GoI 30 September

Public Disclosure16. Necessary financial information such as annual budgetary provision

by MOEF and states, funds released to WBPCB and APPCB, IUFRs and annual audit reports (including for the expenditure incurred at APPCB and WBPCB) will be displayed on the project website.

Project Covenants17. MOEF will establish and retain during project implementation a

financial management cell at the central level with a finance professional with qualifications acceptable to the Association. Submission of quarterly consolidated IUFRs within 45 days of the

close of the quarter Annual consolidated audited financial statements; and summary of

external auditor’s observations along with compliance reports on the audits conducted at MOEF, APPCB and WBPCB to be submitted within six months of the closure of the financial year.

Andhra Pradesh Pollution Control Board (APPCB) as implementing entity for CBIPMP

Implementation Arrangements26. APPCB as an implementing entity of the project in the state will

manage financial expenditure in line with the agreed annual project budgets over the project period of September 2010 to September 2015.

27. The APPCB will establish a Project Implementation Unit (PIU) which will have responsibility for day to day project implementation and

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coordination with other stakeholder agencies. It will also serve as a Secretariat for the State Steering Committee.

28. APPCB will ensure adherence to Financial Guidelines of the project. Key FM tasks of APPCB for the project will include: (a) preparing annual budget and work plan for the project and submitting it to MOEF; (b) receipt of funds from MOEF and the state government (15% share, including for cash compensation if any); (c) ensuring funds flow for project activities; (d) maintaining appropriate accounts and internal controls; (e) submission of quarterly financial reports to MOEF in the agreed formats; (f) timely completion of financial audit for project expenditure in the state by an acceptable independent firm of Chartered Accountants as per terms of reference agreed with the Bank and submission of annual audit report to MOEF; and (g) maintaining a fully staffed FM cell for the project in the state.

29. APPCB will follow the Bank procurement guidelines for awarding contracts, (including for financial audit by an independent firm of Chartered Accountants), as well as procuring necessary equipments and services.

Budgets and Funds Flows30. At GOI level, the project’s funding requirements will be provided in

the budget of the MOEF. Funds to APPCB for the project will be provided in the ratio of 85% and 15% by MOEF and state respectively. The state government will also make provision for its share (15%) in its annual budget. APPCB will include annual estimate for the project in its annual budget as per its standard procedures and inform MOEF about the same.

31. Funds will be provided by MOEF to APPCB on the basis of forecast of expenditure as elaborated above. APPCB will open a separate bank account for the project in a nationalized bank.

Accounting and Internal controls 32. Accounting Center: The central office of APPCB in Hyderabad is

supported by 5 zonal offices and 19 regional offices in the state, all of which are accounting centers of APPCB. At present, recording of expenditure and financial reporting from these centers needs to be further strengthened. APPCB also needs to prepare a financial manual to provide necessary guidance to field staff on accounting, internal controls and reporting aspects. APPCB proposes to prepare a financial manual to guide its staff.

33. For the purposes of the Bank project, it is agreed that all the expenditure for the project in the state will be incurred directly by the

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central office of APPCB based at Hyderabad. While zonal offices/ regional offices may be engaged in necessary implementation efforts for the project, they will not incur expenditure under the project. Therefore central office in Hyderabad will be the only accounting center in the state under the project.

34. Basis of Accounting: APPCB follows cash basis of accounting with any advances paid being classified as advances and charged to expenditure only upon confirmation of receipt of goods/services. The same accounting policy will be followed for execution of the project.

35. Software: APPCB currently uses a customized accounting software package which has been reporting bugs since a long time, is currently not serviced and therefore not considered reliable for accounting and reporting on expenditure of the project1. APPCB proposes to use an ‘off the shelf’ accounting package “Tally” for recording and reporting on project expenditures to MOEF, which is acceptable to the Bank. It is informed in April 2010 that this software has been purchased and is already operational.

36. Internal Controls: APPCB will maintain a separate bank account for the project funds under joint signatory mechanism. For expenditure for project activities, after receiving administrative sanction of the State Steering Committee, each proposal will be submitted by technical in-charge to Special Secretary through Chief Accounts Officer and then to Member Secretary. Finance staff of MOEF will undertake regular visits and reviews of financial management arrangements of the project at APPCB.

Finance Staffing 37. The existing financial management wing at APPCB is headed by a

Chief Accounts Officer (CAO). Although the CAO is very experienced and knowledgeable, he lacks the required skilled staff for the execution of all departmental jobs effectively. This is considered as a high risk and APPCB has agreed to institutionalize a financial management cell for CBIPMP project under the CAO, which will consist of an Accounts Officer and an Accountant with qualifications acceptable to MOEF and the Bank. The FM cell will be fully staffed by November 2010 so that staff can also receive necessary orientation on “Tally” accounting software. Maintenance of this FM cell throughout the project life will be a covenant in the financing agreement of the project.

1 APPCB is spending considerable time in manually finalizing its accounts as of now. Reportedly, NIC has been requested to look into the bugs of the existing customized accounting software, but it may take long before the problems are sorted out.

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Financial Reporting 38. APPCB will submit quarterly interim unaudited financial reports

(IUFR) in the agreed formats to MOEF within 30 days of the close of each quarter, which will reflect expenditures incurred at state level for the implementing entity. APPCB will also submit utilization certificates to MOEF as per standard GOI procedure. In addition, Audited Financial Statement (AAFS) of the project will be submitted annually by APPCB to MOEF within 4 months of the closure of the financial year.

External Audit 39. External audit of APPCB is conducted by a firm of Chartered

Accountants appointed on the recommendation of C&AG. 40. The annual audited project financial statements at the state level will

include actual expenditure at the implementing entity in the formats specified by MOEF. Such financial audit will be conducted by an acceptable independent firm of Chartered Accountants as per terms of reference agreed with the Bank and audit report will be submitted by APPCB to MOEF within 4 months of the closure of the financial year.

41. Project Covenants for the implementing entity at the state level – APPCB

At the APPCB level, the following covenant will be included in the financing agreement:

APPCB will establish and retain during project implementation a financial management cell with two financial staff with qualifications acceptable to the Association.

(B) West Bengal Pollution Control Board (WBPCB) as implementing entity for CBIPMP in the state of West Bengal

Background42. West Bengal Pollution Control Board (WBPCB) is the implementing

entity for the project in the state of WB. WBPCB is a Board constituted under The Water (Prevention & Control of Pollution) Act 1974 passed by the Parliament, is financially very sound.

Implementation Arrangements43. WBPCB as an implementing entity of the project in the state will

manage financial expenditure in line with the agreed annual project budgets over the project period of September 2010 to September 2015.

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44. WBPCB will establish a fully functional Project Implementation Unit (PIU) which will have responsibility for day to day project implementation and coordination with other stakeholder agencies. It will also serve as a Secretariat for the State Steering Committee.

45. WBPCB will ensure adherence to Financial Guidelines of the project. Key FM tasks of WBPCB for the project will include: (a) preparing annual budget and work plan for the project and submitting it to MOEF; (b) receipt of funds from MOEF and the state government (15% share); (c) ensuring funds flow for project activities; (d) maintaining appropriate accounts and internal controls; (e) submission of quarterly financial reports to MOEF in the agreed formats; (f) timely completion of financial audit for project expenditure in the state by an acceptable independent firm of Chartered Accountants as per terms of reference agreed with the Bank and submission of annual audit report to MOEF; and (g) maintaining a fully staffed FM cell for the project in the state.

46. Certain activities of the project may be supported by additional efforts from West Bengal Industrial Development Corporation (WBIDC) under the guidance of WBPCB. It has however been agreed that this will be supported by a valid MOU to be cleared by the Bank in advance; and any expenditure under the MOU will be recorded by WBPCB and its records will also be maintained at WBPCB.

Budgets and Funds Flows47. At GOI level, the project’s funding requirements will be provided in

the budget of the MOEF. Funds to WBPCB for the project will be provided in the ratio of 85% and 15% by MOEF and state respectively. The state government will also make provision for its share (15%) including for cash compensation for loss of livelihood in its annual budget. WBPCB will include annual estimate for the project in its annual budget as per its standard procedures and inform MOEF about the same.

48. Funds will be provided by MOEF to WBPCB on the basis of forecast of expenditure as elaborated in the annexure above. WBPCB will open a separate bank account for the project in a nationalized bank.

Accounting and Internal controls49. The central office of WBPCB is supported by 2 circle offices and 11

regional offices in the state. Financial management is however centralized as accounting for all the expenditures is recorded at and paid from the central office in Kolkata. While the circle offices/ regional offices may be engaged in the necessary implementation efforts, the same centralized financial management arrangement will

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be followed for the Bank funded project and is considered adequate. WBPCB follows cash basis of accounting with any advances paid being classified as advances and charged to expenditure only upon confirmation of receipt of goods/services. The same accounting policy will be followed for the execution of CBIPM project. WBPCB will be using Bank procurement guidelines for awarding contracts (including for financial audit by an independent firm of Chartered Accountants) as well as procuring necessary equipments and services. WBPCB uses customized accounting software and is presently implementing a new in-house developed accounting software package which was under testing stage and is fully implemented now. While WBPCB will maintain a separate bank account for the project funds under joint signatory mechanism, the new software will also provide a value addition facility to create a separate project account and record all the expenditures incurred under the project in this project account.

Finance Staffing50. The existing financial management wing at WBPCB is fully staffed and

includes two professionally qualified Finance Managers who are very experienced. While the project may hire a junior level additional staff for the project, it is agreed that these two managerial staff will handle the additional responsibility pertaining to the financial management matters of the project and constitute the financial management cell for the CBIPM project at the state level under the Member Secretary. Maintenance of the financial management cell will be a covenant in the financing agreement.

Financial Reporting51. WBPCB will submit quarterly interim unaudited financial reports

(IUFR) in the agreed formats to MOEF within 30 days of the end of each quarter, which will reflect the expenditures incurred at the state level for the implementing entity. WBPCB will also submit utilization certificates to MOEF as per standard GOI procedure. In addition, Audited Financial Statement (AAFS) of the project will be submitted annually by WBPCB to MOEF within 4 months of the closure of the financial year.

External Audit52. The external audit of WBPCB is conducted by a firm of Chartered

Accountants appointed on the recommendation of C&AG. WBPCB agrees for separate audit arrangements for the Bank funded project and the annual audited project financial statements at the state level will include the actual expenditure at the implementing entity in the formats specified by MOEF. Such financial audit will be conducted by an acceptable independent firm of Chartered Accountants as per the

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terms of reference agreed with the Bank and will be submitted to the MOEF within 4 months of the closure of the financial year.

53. WBPCB has initiated an internal audit system and it is agreed that during the implementation of the project, the internal audit reports will be shared with the Bank team during supervision missions.

54. Project Covenants (for the implementing entity at the state level – WBPCB

At the WBPCB level, the following covenant is included in the financing agreement: WBPCB will maintain during project implementation a financial

management cell with two financial staff with qualifications acceptable to the Association.

The financial management reporting format to be followed by MOEF and both the State pollution control boards is enclosed in Annexure VI.

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SECTION VIII

MONITORING & EVALUATION FRAMEWORK

1. The proposed Monitoring and Evaluation (M&E) system being designed by the MoEF has the following four components:

i. Computer-based MISii. Periodic Reviewiii. Sustainability monitoring and evaluationiv. Community monitoring

(i) Computer-based MIS2. The computer-based MIS would be driven by a set of indicators. These

indicators would be objectively verifiable and would form the basis of all information entering the system. The indicators suggested are in the following four categories: Physical progress Financial progress Sustainability Development objectives

3. While the first two are progress indicators, the other two contain both process and impact indicators. The logical framework for developing the indicators is spelt out in the chapter three of this document. The output reports generated by the system would be in the same categories as indicator categories.

4. The information would be collected using paper based input formats. The information collection would be carried out by the concerned field level project staff, which could also include the non-government and other support organizations engaged to provide capacity building support to the user communities, as eventually decided by the project management agency.

(ii) Periodic Review5. A system of Periodic Review has been suggested to enable the POC and

other stakeholders to track the qualitative aspects of physical and financial progress and assess improvement in environmental quality. This would also facilitate the project managers to learn from the field experience and suggest strategic inputs for further strengthening of the design and strategies, particularly during planning and implementation of NPRPS. After completion of first set of remediation investments, monitoring indicators and processes will be reviewed to improve upon them as per the feedback received from the various stakeholders. The subsequent follow-up revised plans including remedial measures will be developed and implemented.

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(ii) Sustainability Monitoring and Evaluation 6. This component essentially aims at tracking the sustainability prospects

of the remediation schemes during the project life cycle. Though the actual sustainability of remediation schemes will be seen 2-3 years after completion, the factors that determine sustainability have to be identified and addressed right from the planning phase and through the implementation phase. Hence the exercise of sustainability monitoring and evaluation is proposed to be undertaken during planning, implementation, and operation and maintenance phases.

7. It is proposed to evaluate the sustainability on 12 parameters. These parameters are broadly categorized under four heads which are Institutional, Technical, Financial and Social Sustainability.

8. A Results Monitoring Matrix has been developed to monitor progress across all project activities during the five year project implementation (attached below). Procurement plans will be aligned with the planned project outcomes. Progress reports will include reports on status of key monitoring indicators. At mid-term review a review and assessment of progress based on the performance indicators will be undertaken by the POC in coordination with the Bank.

9. Site specific monitoring plans regarding monitoring of environmental impact parameters at the four pilot sites have been included in the feasibility studies. These have to be operationalized by the State PCBs and results recorded in the semi-annual progress reports.

(iv) Community Based Monitoring10. The project is envisaged to benefit the surrounding community

through improved environmental quality and reduction of health risks due to exposure to sites. This basically means that members of the neighbouring communities would be actively involved in monitoring any improvement due to remediation works. In view of this, a system of community monitoring is worked out to help community members track the progress using a set of participatory monitoring tools, which can be easily understood and used by the community members, with some training and handholding, to begin with. Community Monitoring Indicators have been designed to enable communities to monitor progress.

11. Specifically the communities will be engaged in monitoring the implementation of social management plans and aspects of overall area improvements. The State PIUs will include a social specialist which will contract local NGOs to support the implementation of SMP and monitor area activities. Specific budget provision have been made in the PIU budgets for implementation of the monitoring activities which have to

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start not later than three months before site remediation works commence.

RESULTS FRAMEWORKPDO Project Outcome

IndicatorsUse of Project

Outcome Information

1. to build tangible human and technical capacity in selected state agencies for undertaking environmentally sound remediation of polluted sites

2. To support the development of a policy, institutional and methodological framework for the establishment of a National Program for Rehabilitation of Polluted Sites (NPRPS).

i) Clean up/remediation technologies have been piloted at orphan hazardous waste sites and municipal dumpsites in selected states and a network of state PCBs established by MOEF for knowledge dissemination and project based trainingii) Guidelines and standards for remediation developed and supervisory capacity of technical staff at environment agencies to implement remediation plans and monitor environmental conditions strengthened. iii) An Environmental Compliance Assistance Center has been established and fully functional by end of year two in WB and by end of year four in APiv) Water quality and soil characteristics at the pilot sites comply with specified standards and mechanisms established to monitor in the long term.

i) Supporting the NPRPS by developing a methodological framework for inventorying polluted sites, establishing remediation procedures and solutions and engaging multiple stakeholders in the implementation, including cost recovery mechanisms.

To measure progress on achieving PDO throughout the project life, specifically on strengthening the institutional framework for rehabilitation of contaminated sites

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Intermediate Outcomes

Intermediate Outcome Indicators

Use of Intermediate

Outcome Monitoring

Component 1: Strengthening of Environmental Institutions: Building Capacity for addressing pollution remediation a. Methodological guidelines for risk assessment, prioritization and plans for remediation of polluted sites are in place to support the preparation of NPRPS.

b. Human resources and organizational capacity of State PCBs for undertaking remediation of contaminated sites strengthened in the pilot states.

i) Guidelines and standards for remediation developed and adopted by participating states and Ministry of Environment ii) Analysis of existing environmental legislation related to liability and international experience on remediation of contaminated sites and formulation of policy framework.iii) Development of procedure for remediation orders for ‘orphan and non-orphan sites’ which pose urgent risk to human health and environmentiv) Technical staff of State PCBs trained to supervise the implementation of remediation plans and monitor area environmental conditions. v) ‘Good practice notes’ on site rehabilitation disseminated to the SPCB network; conduct knowledge dissemination events sponsored by the MOEF in selected states. vi) The extent of indiscriminate disposal of hazardous wastes in the pilot states drastically diminished and verified through data collected by State PCBs and verified through an end of project beneficiary survey.vii) Community monitoring

To measure progress, record, discuss with client and agree on corrective measures

To assess the capacity of states to undertake and scale up remediation projects

To measure the uptake of remediation initiatives by other states and scale up remediation

To monitor the capacity of participating PCBs and change of behavior of industrial units in the pilot areas

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implemented in two states viii) GAAP Milestones are met

Component 2 : Investments in rehabilitation of orphan hazardous waste sites and municipal dumpsites a. Clean up/remediation technologies will have been piloted on orphan sites in AP and WB with lessons derived and available for replication to other states.

b. A ‘blueprint’ for addressing legacy pollution with adequate environment and social safeguards provisions will have been developed

i) Area-based remediation plans demonstrating effective technologies for pollution reduction under implementation in WB and AP. ii) Pollution hazards reduced to acceptable level using remediation /containment technologies at two pilot HW sites. iii) Measurable improvements of the environmental conditions around old dumpsites in two states monitored by SPCBsiv) Post-remediation monitoring system with appropriate infrastructure and agreed indicators established at three remediated sites by end of year 4.v) Environment and Social assessment acceptable to the Bank carried out and disclosed for pilot projects implemented in year one and two prior to negotiations.vi) Involvement of local authorities and neighboring communities and level of support to rehabilitation of sites.

To determine the progress of remediation and measure it to specific performance indicators in the pilot sites

To record ‘best practice’ and lessons learned from remediation pilots

To monitor progress of implementation of pilots and ensure compliance with technical safeguards.

To monitor implementation progress, discuss with client and agree on corrective measures toensure compliance with Bank safeguard policies

To determine progress towards achieving project impacts and influence behavioral changes at community level

Project implemented according to agreed timeline

PIUs fully adhere to

i) State PIUs maintains adequate staff with expertise and skills throughout project life and follow up the provisions of POM.

To monitor implementation

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project implementation agreements

ii) State PIUs participate in supervision missions.

Arrangements for Results Monitoring (detailed table in Annex I)

Project Outcome

Indicators

Baseline

Mid term Project completion

1.NPRPS using risks assessment methodology for prioritizing polluted sites, supported by public consultations is developed

Nil Approval of NPRPS by POC

Submission of a NPRPS to Planning commission

2 Pilots for remediation using area based approach ready for implementation including pollution profiling and mapping, indicators, detailed engineering plan, monitoring and after-care program

0 % 25 % of site remediation/ closure completed at 2 HW sites;

20 % of closure of MSW sites completed

100 % of site works completed at four pilot sites

3 Establish national clean-up standards and monitoring mechanisms

Nil Continuous monitoring of pilot sites using monitoring protocols and compliance with standards specified for pilot sites

Continued compliance of remediated pilot sites with standards specified for pilot sites

4. Establish ECAC to promote measures for voluntary

Nil - Fully staffed and operational WB ECAC - Stakeholder consultation

-Sustainable funding mechanism for ECAC in place- Fully staffed and

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Project Outcome

Indicators

Baseline

Mid term Project completion

industrial compliance

completed for dissemination of best practices in HWM shared among PCBs

operational AP ECAC -Programs for EM and compliance of SMES in Chrom/ metallurgical, petro-chemical industries under implementation -Clean Technology Fair

2.b. Establish knowledge dissemination network for SPCBs

Annual Meeting of SPCBs

- Documentation and dissemination of lessons learnt from remediation good practices shared at workshop with state PCBs

- Training completed for technical staff of SPCBs in states with identified orphan hazardous waste sites-Dissemination of protocols (monitoring, liability, remediation technology) under NPRPS at workshop with state PCBs

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SECTION IX

Governance Accountability Action Plan (GAAP)

The objective of the GAAP is to identify the critical areas and measures to enhance the transparency, accountability and performance of the project, and thus achieving project results and higher development impact. Broadly, the key governance and accountability issues in the project are two-fold:

i. Issues that arise from the innovative/pilot nature and technical aspects of the project and lack of prior experience in comprehensive clean up, which is carried out with due consideration of economic, environmental, social considerations. It will result in some difficulties to a priory assess of the exact technical scope of remediation works and accurately define the technical specification and cost of site works before detailed area profiling is done.

ii. Issues that arise from the weak institutional capacity of implementing agencies, internal decision making framework and random communication between the central level and states that may result in delays and more processing time of project milestones and the implementation of internal controls and financial management and procurement requirements.

Implementation issues, risks and mitigation measures are outlined in the table below.

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Governance Accountability Action Plan (GAAP)

Item Issues/Risk/Rating Mitigating Actions Responsib

ility Timeline Early warning indicators

Implementationof remediation pilots

Demonstration effect diminished due to lengthy implementation (M)

-Agree on roles of project oversight structure and progress reporting

MOEF and State PCB

Agreement during appraisal/ negotiations

-Delayed progress reports-Delayed contracting of independent supervision-Delays in detailed engineering design

Poor performance by state implementing agencies (M)

-Use project resources to strengthen and rationalize the technical capacity of State PCB -Nominate staff of PIU according to agreed TORs-Prepare timelines for implementation

State PCBs Y1 -Failure to nominate technical staff for training - Substantial deficiency in staffing of PIU- Failure to submit progress reports

Failure to sustain remediation results(M)

-Expand community outreach to change behaviors and prevent secondary pollution-Agree on a plan for regular monitoring of industries in the area by PCB

State PCB Y1 and onwards

-PCB fails to inventorize and monitor units generating HW in the project Area

Lack of appropriate communication to

- Expand community outreach activities

State PCBs Public consultati

-Complaints from communities

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public and communities on remediation results (M)

using project resources

ons during preparation of E&SA Y1 and onwards

continue - Social and Environmental issues inadequately addressed in progress reports

SEMF and site specific mitigation measures not properly integrated in the pilots(L)

- Technical documentation and Bidding documents for site remediation includes safeguards provisions

State PCBs Y1 and onwards

- Social and Environmental issues inadequately addressed as witnessed during site visits

Project execution and contract management

Poor quality of technical documents causing delays (M)

-Early involvement of independent supervision in review of technical specs - Periodic review of bidding process

State PIU Y1and Y2 -Poor quality of bidding documents

Inaccurate invoicing of works(M)

- Strengthen technical supervision and introduce mandatory field checks - Ensure adequate capacity of PIU FM

State PIU Y2 and onwards

-Costs either too low or too high and/or do not match with progress of contract milestones -No compliance of completed and certified works

Payments made without prior verification of quantities and quality of site works

- Mandatory site visits and reporting by independent supervision consultant- Combined


- Slow progress of site works

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(M) Procurement and FM audits-Intensify site visits of completed works suspend payments if at fault

Non-compliance of contractors with site specific safeguards and site mitigation measures(L)

- Contractors workshops periodic review of quality of contractors documents


-Poor quality of bidding documents - Obvious omissions of safeguards requirements in the contractors documents

Procurement

Incomplete technical specifications (M)

-Pre-bid briefings and quality written clarifications to bidders in a timely manner

MOEF POC and State PIU

Prior to effectiveness Y1 and onwards

-Procurement delays-Lack of response from bidders

Procurement delays and higher cost(L)

- Mandatory uploading on bidding documents at PCB website-Avoid ‘slice and packaging’ to attract bidders-Review quality of bidding documents

MOEF POC and State PIU

Y1 and onwards

-Winning bids too high compared to similar works

- Delays in commencement of work after contract

Poor supervision of contracts (M)

-Maintain procurement staff of adequate quality

State PIUs Y1 onwards

-Lack of proper reporting-Frequent changes in the procurement timeline

Collusion among -Records of public State PIU Y1 -Bidders use same

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contractors(M)

openings of bids kept on the public domain and disseminated within 15 days of contract award

onwards bank for security deposit and bank guarantees-Bids far too low

Delays in bid evaluation (M)

-Create procurement database for each pilot site with procurement plan- Keep accurate records of all documents with data of EIO, and bids-Undertake internal audits

State PIUPOC

Y1 and onwards

-Lengthy time between bid submission and award-Number of extensions of bid validity exceeds the acceptable standards

Submission of forged documents to win contracts(M)

-Random verification of references of firms

POC and State PIUs

Y1 and onwards

-Incomplete of missing bank guarantee documents

Financial Management System and Internal controls

Inadequate and unreliable FM information and incomplete FMR (M)

- Ensure FM training before effectiveness-Obtain TA to improve the quality of record keeping (electronic and manually)

- PCB PIUs Prior to effectiveness and Y1 onwards

-Inordinate delays in submission of quarterly FM reports - Unaudited yearly reports

Lack of compliance with established internal financial controls (M)

- Strengthen financial management oversight through line ministry and State Governments

MOEF and States

Y1onwards

-Significant variation of expenditure and budgets

Delays in hiring auditors and overdue audits

-Hire auditor on retainer basis with a greed schedule

MOEF and state PCB

Y1 By December 2009

No evidence of hiring audit firm during supervision

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(H)Inability of auditors to provide quality and independent opinion(M)

-Same as above

-Prepare clear TOR and agree with the Bank

PCB December 2009 onwards

-Untimely and delayed rFM reports -Qualified auditor opinions and large number of observations

Monitoring and evaluation

Achievement of PDO adversely affected by the lack of project information (M)

-Disclosure policy agreed with pilot states -Abide to the provisions of RTI

MOEF State PCB

After effectiveness onwards

-Large number of request for information -Lack of evidence on timely responses

Achievement of PDO affected by inability to apply checks and balances and implement mid-term corrections(M)

- Carry out beneficiaries survey at mid term review to assess public perception

PCB PIUs Y1 onwards

-Continuous delays -Absence of information from monitoring and evaluation fo progress /results

Achievement of PDO affected by the lack of engagement of citizens in oversight of project pilots(M)

-Agree on the design and implementation arrangements of social accountability mechanism and public engagement

MOEF and PCBs

Y1 Mechanism to be in place by end of Y1

-Non- compliance with procedures and arrangements related to community involvement and beneficiaries surveys

After-care and monitoring

Resources for after-care not planned adequately(H)

-Include first year after care in the remediation contract- Assign reasonability

PCB State Government

Y3-4 onwardsPrior to Project

Complains for violation or improper management of the

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to PCB for regular monitoring of environmental parameter of the site and plan budget resources

completion

site reported ( media or elsewhere)

Site/Beneficiary survey during Y5 reports concerns from citizens

Transfer of responsibility for aftercare monitoring to other agency(M)

-Agree and ensure implementation of after care plans prior to completion of site remediation and transfer of site for management to municipality-Provide evidence for change of land use as necessary

States and MOEF

Y4-5 depending on completion of sites

Delays in agreeing on site management and monitoring arrangements

Environment improvements in the area affected by neglect (L)

-Engage citizen’s groups /Ag University AP/ Chrome Producers Association in WB monitoring of the site

PCB and Municipalities

Y4-5 -Number of complains, media reports

Overall risk.

Moderate

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ANNEX IResults Framework: Arrangements for Results Monitoring

Intermediate Results Indicators Component 1: Strengthening of Environmental Institutions : Building capacity for addressing pollution remediation

Project Outcome Indicator

s

Baseline

YR1 YR2 YR3 YR4 YR5 Frequency and

Reports

Data Collecti

on Instrum

ents

Responsibility

for Data Collecti

on1.1Methodological framework for risk assessment developed as enabling framework for implementation of the NPRPS

Nil i) Detailed studies to define policy and legal framework including analysis of best international practices initiated;ii) Remediation and cleanup standards initiated

i) Detailed studies to define policy and legal framework including analysis of best international practices completedii) Remediation and cleanup standards developediii) Completed study on economic analysis of avoidance of social cost

i) National Guidance on remediation of polluted sites completedii) Stakeholders consultations organized

i) National Guidance submitted to Planning Commission for approval

Progress reports

Supervision reports

In –house reporting

Official GOI publications

MOEF/CPCB

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by undertaking remediation

1.2. Human resources and organizational capacity for undertaking remediation of HW and old dumpsites strengthened in the pilot states

Nil 15 officials in SPCBs trained in remediation& post monitoring of sites

40 technically qualified staff in SPCBs trained in analysis of data, remediation technologies, and monitoring of land fills

40 technically qualified staff in SPCBs trained in compliance and enforcement

20 technically qualified staff trained in SPCBs trained in operation of equipment

15 technically qualified staff of SPCBs trained for trainers for implementation of the NPRPS

Progress reports

Supervision reports

MOEF

1.3.Disseminate good practices through knowledge dissemination events

Nil i) 4 sector specific workshopsand seminars held by WB ECAC and WBPCBii) WB ECAC website launchediii)

25 % of industries aware of good practices as measured by their participation in the workshops/ dissemination of guidelines

4 sector specific workshopsand seminars held by APPCB

50 % of industries aware of good practices

80 % of industries aware of good practices as measured by their participation in the workshops/ dissemination of

50 % increase in industry’s compliance with sound waste management practices

Progress report

Supervision report

Publication material

PCB reports

ECAC Annual report

MOEF with WB PCBAP PCB

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Quarterly newsletter and annual report published by WBECAC

WB ECAC Newsletter and annual report

as measured by their participation in the workshops/ dissemination of guidelines


guidelines


WB and AP ECAC Newsletter and annual report

1.4. GAAP milestones are met

Nil APPCB and WBPCB create a project web site linked to their websites

Regular reporting on implementation of project activities

Neighboring communities involved in monitoring of remediation

Neighboring communities involved in monitoring the area to prevent illegal dumping of waste at all project sites

Beneficiaries survey on all project sites undertaken

Progress implementation reportsSurveys SupervisionFRM reports

In-house reporting

MOEFWB-PCB and APPCB

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Component 2: Investments in rehabilitation of priority Hazardous Waste Sites and overall environmental improvements in the area 2.1. Four area based pollution remediation pilots implemented in WB and AP

0 % Detailed engineering studies commissioned

i) Detailed engineering studies completed; ii) Contractors hired

i) 25 % of site remediation works completed in Hooghly ii) 20 % of closure of Dhapa dump siteiii) 25 % of remediation works at NMK completediv) 20 % of works at Kadapa dump site completed

i) 60 % site remediation at Hooghly completedii) 50 % of closure of Dhapa dump site iii) 60 % of remediation works at NMKiv) 50 % of works at Kadapa dump site completed

100 % of site remediation and closure workscompleted

Semi-annual progress reportsQuarterly FMR

In house reporting, certification of site works

APPCB, WBPCB

2.2. Measurable reduction of pollution hazards at

Nil Establish the current environment profile of the area

Establishment of monitoring program

Continue monitoring program; improvement in surface

Reduction of heavy metals contaminants in soil

Remediation works completed; Monitoring

Improvement in water quality of NMK and cascadi

Study to establish impacts of remediation on crops

APPCB, WBPCB

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two HW legacy sites

and ground water quality

quality in surrounding

continued and shared with the community

ng lake inside Agricultural University

with respect to heavy metal and organic contaminants

2.3. Measurable improvements of the environmental conditions around the old dumpsites

Nil Establish the current environment profile of the area

Establishing ground and surface water monitoring system

Continue monitoring program

Reduction of heavy metals contaminants in soil quality in surrounding

Remediation works completed;Monitoring continued and shared with the community

Monitoring continued and compliance with standards

Stakeholder satisfaction survey

APPCB, WBPCB

2.4. Post remediation after care monitoring systems in place at the four sites

Nil 2 sites with post- remediation monitoring infrastructure

4 sites with post- remediation monitoring infrastructure

Semi-annual progress reports

In-house reportingCertification of Site monitoring system

APPCB, WBPCB

2.5. EMP and Social safeguards measures

0 % 20 % of rag pickers on 2 MSW

40 % of the rag pickers on 2 MSW sites trained

Universal 20 % of school-

10 % decrease in communit

i) 100 % of PAPs rehabilitated as

State Progress Reports

In-house reporting

APPCB, WBPCB

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effectively implemented on four project sites

sites trained in alternative livelihoods

in alternative livelihoods

age PAPs on 2 MSW and 2 HW sites attending school

y reporting of pollution effect on a ambient environment (baseline annual reports of APPCB and WBPCB)

per ESMF stipulations for pilot sitesii) 50 % decrease in community reports of pollution effect on ambient environment

Supervision reports

Independent impact assessment Mid- term and end of project beneficiary survey

2.6. Local authorities and neighboring communities involved and support remediation and closure of dumpsites

No community awareness and no multi stakeholder mechanism

Communities around the pilots sites including NGOs broadly approve remediation plans

In each of 4 sites on community members / CSO /NGO volunteers to take part in the local multi-stakeholder monitoring mechanism

Community/ CSO representative in monitoring mechanism regularly reports to local authorities on pollution activities

For each 4 sites more than on e local organization per site (e.g. local NGO. CBO, LAEC) is part of MMM

Regular reporting and regular meetings between community members of MMM incl. local

Progress reports

MTR

Field visits and random discussions with population in the project areas Survey of local beneficiaries

APPCB, WBPCB

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in the project areas

authority

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Project Disclosure PlanTopic Documents to be

disclosedFrequency Mode

Procurement

Project procurement Plan (PPP) Procurement Plan (timeline) regular updatesList of contractors who purchased bidsName of contractors awarded contractsMinutes of bid opening

As and when the latest revisions are made

PCB WebsiteLocal and national newspapersUNDP Business Development Info-shop Website

Financial Management

GOI /MOEF sanctioned amount for the projectExpenditure Statement

YearlyQuarterly

MOEF WebsitePCB websites

Safeguards

E&SA for public consultation Executive Summary of ESMF

Social accountability feedback information Advance information for consultations and surveys

MOEF and PCBs websites once in the project cycle / and in accordance with bank safeguards requirements

When information is availableWhen planned

PCB WebsitesInfo -Shop

Area/ Remediation Pilots

Yearly progress reportsMonitoring of water quality Environmental violations

Annually

Bi-annually

PCB websitesProject PublicationsProgress Reports sent to POC , PSC and the Bank

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Annexure-II

Format for Annual Work Plan Proposal of SPCBs

For the Period……………….Name of SPCB:……………..

105

Sl. No.

Components Physical Target

Financial Outlay (Rs. In Lakhs)

1. Strengthening of Environmental Institutions: Building Capacity for addressing Pollution remediation

a. Technical Supporti Servicesii Goodsiii

Incremental Operating Cost

b. Laboratory equipmenti Goodsii

c. Environmental Compliance Assistance Centrei Servicesii Worksiii

Goods

iv


d. Training i Training and Workshopsii

e. Upgrading Information Management Systemsi Servicesii Goodsiii


iv

Sub Total 1

2. Investments in Priority Remediation and Environmental Improvements: Rehabilitation of abandoned contaminated sites

a. Remediation of Hazardous Waste Sitei Servicesii Worksii Goods

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iiv

b. Remediation of Municipal Solid Waste Sitei Servicesii Worksiii

Goods

iv

Sub Total 23. Project Management

a. Establishment / Consultancy Servicesi Servicesii Incremental Operating Costiii

b. Goods and Equipmenti Goodsii

c. Domestic / Abroad Training / Study Touri Training & Workshopsii

d. Incremental Operating Costi Servicesii Worksiii

Goods

e. Monitoring & Evaluationi Services

Sub total 3Total Project Cost (1+2+3)

Centre Share (85%)State Share (15%)

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Annex III

Format for Annual Work Plan Proposal of MOEFFor the Period……………….

108

Sl. No.

Components Physical Target

Financial Outlay (Rs. In Lakhs)

1. Strengthening of Environmental Institutions: Building Capacity for addressing Pollution remediation

a. Technical Support

i Servicesii Goodsiii


b. Laboratory equipmenti Goodsii

c. Trainingi Training and Workshopsii

Sub Total 1

2. Project Management

i Servicesii Worksiii


iv

Project Preparation Cost

Sub total 2

Total Project Cost (1+2)

World Bank Share (85%)

MoEF Share (15%)

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ANNEX IVFormat for Quarterly Interim Unaudited Financial Reports

Name of Agency: West Bengal Pollution Control BoardReport for the quarter ended on 01.04.2010 to 31.03.2011

(Amount in Rs Lakhs)

For the Quarter

Cumulative

Particulars

Year till date

Project till date

Sources State Government Funds Government of India Funds Total Sources (A) Expenditures by Component 1.

Strengthening of Environmental Institutions: Building Capacity for addressing Pollution remediationA. Technical Support

i. Goodsii. Servicesiii. Incremental Operating Cost

B. Laboratory equipmenti. Goods

C. Environmental Compliance Assistance Centrei. Worksii. Goodsiii. Servicesiv. Incremental Operating Costv. Training and Workshop

D. Training i. Training and Workshop

E. Upgrading Information Management Systemsi. Goodsii. Servicesiii. Incremental Operating Cost

Sub Total 12.

Investments in Priority Remediation and Environmental Improvements: Rehabilitation of abandoned contaminated sitesA. Remediation of Hazardous Waste Site

i. Worksii. Goodsiii. Services

B. Remediation of Municipal Solid Waste Sitei. Worksii. Goodsiii. Services

3. Project Management

A. Establishment / Consultancy ServicesB. Goods and EquipmentsC. Domestic / Abroad Training / Study TourD. Incremental Operating Costs

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E. Monitoring and EvaluationGrand Total

Central Share (85%)State Share (15%)

Note: The format may be revised in consultation with the WB if necessary.

Signatures of Project Director

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ANNEX V

FORM GFR – 19A

FORM OF UTILISATION CERTIFICATE

FOR THE SCHEME ………………………………..

Sl. No.

Letter No. and date Amount

1.

2.

Central Govt share released vide Letter No.-----------------------dated --------------

State Govt. share released vide State Govt. letter No. _______ dated ______

TOTAL (1 + 2)

Rs. ___________

Rs. ____________

Rs.

Certified that out of Rs.________. (Central Share to be mentioned) of Grants-in-Aid released during the FY_________ in favour of Govt. of ______ under the Ministry/ Department letter No. given in the margin and Rs. __________ (amount in words) on account of unspent balance of the previous year, a sum of Rs. ________ (amount in words) has been utilized for the purpose of _____________________for which it was sanctioned and that the balance of Rs. _____________remaining un-utilized at the end of the year has been surrendered to Govt. vide letter No. _______ dated ________ / will be adjusted towards the grant- in-aid payable during the next year.

It is also certified that the 15% state share as mentioned above has also been contributed from the State Government and utilized along with the Central Share.

Certified that I have satisfied myself that the conditions on which the grant-in-aid was sanctioned, have been duly fulfilled on that, and I have exercised the following Checks to see that the money was actually utilized for the purpose for which it was sanctioned.

Kinds of Checks exercised:

1. Procurement procedure followed as per norms. 2. Any other check required as per Financial Guidelines.

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Signature of State Project Director Date

113

Annexure VI

Indicative Chart of Accounts

Expenditure:

Component(1 digit)

Specific Task/ Objectives(2 Digits)

Detailed Head(3 Digits)

Link to Budgetary Classificat

ionComponent A :

Strengthening of

Environmental Institutions:

Building Capacity for addressing Pollution

remediation

– Technical Support

– Laboratory equipment

– Environmental Compliance Assistance Centre

– Training– Upgrading

information Management Systems

Major Works

Other Expenditure

Component B:

Investments in Priority Remediation and Environmental Improvements: Rehabilitation of abandoned contaminated sites

– Remediation of Hazardous Waste Sites

– Remediation of Municipal Solid Waste Sites

Component C:

Project Management

– Establishment / Consultancy Services

– Goods and Equipments

– Domestic / Abroad Training / Study Tour

– Incremental Operating Costs

– Monitoring and Evaluation

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Receipt:

Component (1 digit)

Group of Income (2 Digit)

Detailed Head(3 Digit)

Component A : Strengthening of Environmental Institutions:

Building Capacity for addressing Pollution remediation

Component B:Investments in Priority Remediation and Environmental Improvements: Rehabilitation of abandoned contaminated sites

Component C:Project Management

Project funds - Funds Received – GoI share

- Funds Received – State Govt. share

Explanatory Notes to Chart of Accounts:

This chart of account is composition of 6 digit code. The account code structure for expenditure shall be as follows:

- Component A to C will have codes 1, 2, 3 respectively.- Specific tasks/objectives shall be assigned codes starting from ---------

up to --- depending on the number of works to be taken up.- Detailed heads will have range from ------ to -----

The account code structure for receipt shall be as follows:

- The codes for component shall remain the same.- Group head has been assigned code from --- to ---.- Detailed heads will have range from ----- to ----

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ANNEX VII

MOEF Project ManagementJob Descriptions and Procedures

1. Project Director (PD)

The responsibilities of the Project Director would consist of the following:

Coordinate day-to-day implementation of tasks under the project by the various implementing teams and agencies, as specified in the Project Appraisal Document (PAD).

Organize monthly meetings with the various project component teams and the Project Oversight Committee (if one exists), to review progress on project implementation. Organize and circulate agenda and other communications for the Council. Record the minutes of these meetings. Convey the minutes to the relevant Minister and the Bank.

Ensure that the Project Oversight Committee, sub-committees, evaluation committees (where these committees exists) and the project teams have the necessary knowledge and expertise to conduct their work, including, for example to draft technical specifications and evaluate technical bid proposals. Procure necessary ad hoc TA to support these project groups.

Prepare and distribute consolidated, periodic progress reports of the project teams and consultants to the relevant government and other participating institutions, including the semi-annual and annual reports to the World Bank, reflecting: (i) the status of implementation progress, problems encountered, corrective actions needed, rationale for actions; and (ii) current costs of each project component and estimated costs of completion.

As required, take actions to expedite project activities, including, but not restricted to, decision-making and document processing by the relevant governmental agencies. Monitor official documents and contracts as they pass through the approval processes.

In a timely fashion, prepare and submit to relevant government institutions and the Bank of annual audit reports of project expenditure and accounts.

Ensure accurate and timely compilation of project indicators by each implementation team.

Facilitate the preparation of the World Bank standard Project Implementation Completion Report (ICR).

Carefully manage the records and official documents of the project, including the project audit.

In order to perform these tasks, the incumbent should have the following qualifications: (i) Extensive experience in managing and administering large, multi-million dollar projects, involving multiple sub-projects,

117

contractors and agencies; (ii) Experience in project management in both the public and private sectors; (iii) Experience with competitively bid procurements; (iv) Experience in disbursement and audit procedures: (v) Experience with World Bank financed projects.

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2. Project Coordinator (PC)

Objective: Assumes day to day operations of project implementation

Responsibilities: Liaise with appropriate technical personnel in national, regional and international institutions involved in protected area management seeking coordination and integration where appropriate and beneficial to the project. Establish working relations with appropriate national and regional agencies and groups in participating/ countries to ensure effective implementation of project activities under his/her responsibility at the national and regional level. The PC will assist the Project Director with the development and preparation of Annual Work Plans.

Assist and support the Project Director in preparing request for proposals and bidding documents, terms of reference and performance contracts for, supervising and evaluating the performance of the consultancies that shall be retained for specific activities under the responsibility of the POC, including the mid-term and final evaluation of corresponding activities at national and regional levels.

Design a system and organize for the regular monitoring and review of the execution of the components and subcomponents.

Provide the Program Director with quarterly progress reports and contribute to the development of annual work-plans.

The Project Coordinator may be required to fulfill the duties, responsibilities and functions of the Program Director as required.

Liaise with appropriate technical personnel in national, state, regional and international institutions involved in MSW and HWM seeking coordination and integration where appropriate and beneficial to the project.

Establish working relations with appropriate national and state level agencies and with relevant stakeholders from the private sector and the NGO community to ensure effective implementation of project activities under his/her responsibility.

Liaise with media and public to communicate project results and maintain regular communication with stakeholders and concerned non –government entities.

Monitor compliance with GAAP provisions to ensure transparency and prudent use of project resources

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ANNEX VIII

Terms of Reference(FM) at MOEF

(As the financial management functions will be merged in to the responsibilities of PMC, which will have a professional financial manager to manage the financial

operations of CBIPMP. These FM tasks therefore would need to be performed by PMC under the guidance of the Project Director)

Implementation Arrangements

From financial management perspective, the project is proposed to be implemented by the MOEF through the ‘Government Treasury mode’ and a POC for the project at MOEF will carry out the functions of program management, coordination, monitoring, knowledge management, finance and capacity building. Andhra Pradesh Pollution Control Board (APPCB) and West Bengal Pollution Control Board (WBPCB) are the implementing agencies in the respective states. These Boards will submit annual work plans and budgets to the POC and POC will be responsible for providing advance funds to the Boards for the implementation of the project. The Boards will be reporting the expenditure incurred to the POC, which will in turn consolidate and present consolidated financial reports to the World Bank. Private auditors will audit the World Bank project at the Boards, while the audit will be conducted by C&AG at the MOEF level. POC will be responsible for providing consolidated reports on audited expenditure for the project to the World Bank.

Financial Management at Central level

The POC will have overall responsibility for financial management of the project and ensuring that funds flow, accounting, internal controls, financial reporting, disbursement and audit are carried out in accordance with project legal agreements and Financial Guidelines for the project. Key FM task of the POC will be: (a) annual budgetary provision for the project and monitoring of project expenditure against project budget; (b) approval of annual work plan and budgets of WBPCB and APPCB; (c) ensuring sufficient and timely funds flow for activities at state level and for POC level activities; (d) regular financial reporting at all levels of the project and compilation of six monthly financial reports and annual financial statements of the project; (e) timely submission of annual reimbursement claims to the Bank; (f) conducting regular financial reviews of state pollution control boards; and (g) ensuring annual external audits at MoEF, APPCB and WBPCB for the project as per the agreed TOR with the Bank, consolidation of implementing entities’ audited financial statements and audit observations, submitting consolidated annual audit report of the project to the Bank and ensuring compliance to auditor’s observations.

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Need for a Accounts Officer / Finance Manager

In order to enable the POC to perform the tasks specified in the above para, there is a need to scale up the financial management arrangements commensurate with the proposed scale of operations and flow of funds for the project, and hence the need for a Accounts Officer to be based at POC. Extensive work will be required to carry out financial management functions of the project, including monitoring expenditure incurred at implementing entities in the participating states, strengthening their capacity as required, receipt of financial reports from the states and consolidating the expenditure at the central level for reporting to the Bank and regular visits to states to confirm adequate internal controls etc.

Terms of Reference

The broad terms of reference/objectives of the position during the implementation phase are:

a) To manage the financial management system for the World Bank project, including but not limited to budgeting, accounting, funds flow, internal controls, financial reporting, external audit and taking a lead in continuous training of finance staff of the participating states for effective financial management.

b) Coordinate receipt of financial information from the states, checking its accuracy, consolidating expenditure at the central level for reporting to the Bank and preparing necessary reimbursement claims to be submitted to the World Bank, etc.

c) Oversight of financial management aspects of the project, including guidance to states as and when required and regular field visits to test check internal controls.

d) Coordinating external audit of the project and ensuring submission of agreed reports of audited expenditure to the World Bank.

Profile

As the FM functions will be performed by PMC, the profile of the candidate has been included in various staffing requirements for PMC.

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ANNEX IX

Terms of Referencefor External Financial Audit of Project Financial Statements

Implementation Arrangements

From financial management perspective, the project is proposed to be implemented by the MOEF through the ‘Government Treasury mode’ and a POC for the project at MOEF will carry out the functions of program management, coordination, monitoring, knowledge management, finance and capacity building. Andhra Pradesh Pollution Control Board (APPCB) and West Bengal Pollution Control Board (WBPCB) are the implementing agencies in the respective states. These Boards will submit annual work plans and budgets to the POC and POC will be responsible for providing advance funds to the Boards for the implementation of the project. The Boards will be reporting the expenditure incurred to the POC, which will in turn consolidate and present consolidated financial reports to the World Bank. Private auditors will audit the World Bank project at the Boards, while the audit will be conducted by C&AG at the MOEF level. POC will be responsible for providing consolidated reports on audited expenditure for the project to the World Bank.

Objective of the Audit

The objective of the audit is to provide an independent professional opinion to the various stakeholders on the accuracy of the project’s financial statements and compliance with financing agreements.

Coverage of the Audit

The audit would cover the all sources and application of funds.

Audit Report

The auditor should provide: An opinion on whether the project financial statements have been

prepared as per agreed accounting procedures and in accordance with consistently applied Accounting Standards and give a true and fair view of the operations of the project during the year and the financial position of the project at the close of the fiscal year. Any material deviations from these Standards and the impact of these deviations on the project financial statements as presented would be stated.

For withdrawals from the grant made on the basis of unaudited quarterly financial reports (IUFRs), whether these reports submitted during the year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

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A statement of reconciliation between: (i) audited expenditure for the year, and (ii) the cumulative audited expenditure for the project, with the reimbursement claims filed.

Scope of Work

1. An assessment of compliance with provisions of Letter Agreement, especially those relating to accounting and financial matters. This would inter alia include verification that all the funds received under the project have been used to procure goods and services in accordance with the financing agreements, with due attention to economy, efficiency and effectiveness, and only for the purposes for which the financing was provided.

2. Expenditures charged to the project have been correctly classified and these would be determined with reference to the Legal Agreement. All necessary supporting documents, records, and accounts have been kept in respect of all project activities; Clear linkages exist between the accounting records including accounting books and the Project Financial Statements.

3. All six-monthly financial reports used as the basis for the submission of withdrawal applications accurately reflect expenditures and activities on the project.

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Project Operational Manual

Documents

Transcript of Project Operational Manual