Port Vila Urban Development Project (Major Change in Project VAN 42391-013)

Revised Project Administration Manual Project Number: 42391-013 Loan and/or Grant Number(s): 2832-VAN, G0275-VAN, G0276-VAN November 2016

Republic of Vanuatu: Port Vila Urban Development

Project

ABBREVIATIONS

ADB = Asian Development Bank CPS = country partnership strategy DEPC = Department of Environmental Protection and Conservation DFAT = Australian Department of Foreign Affairs and Trade DMF = design and monitoring framework EA = executing agency GAP = Gender Action Plan ICB = international competitive bidding IEE = initial environmental examination ISA = International Standards on Auditing MFEM = Ministry of Finance and Economic Management MIPU = Ministry of Infrastructure and Public Utilities NCB = national competitive bidding O&M = operation and maintenance Pm = person-month PPTA = project preparatory technical assistance PVMC = Port Vila Municipal Council PWD = Public Works Department QA = quality assurance QC = quality control QCBS = quality- and cost based selection RF = Resettlement Framework RP = Resettlement Plan SC = steering committee SPS = Safeguard Policy Statement STP = sludge treatment plant TOR = terms of reference VPMU = Vanuatu Project Management Unit

CONTENTS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 4

A. Project Readiness Activities 4 B. Overall Project Implementation Plan 5

III. PROJECT MANAGEMENT ARRANGEMENTS 11

A. Project Implementation Organizations – Roles and Responsibilities 11 B. Key Persons Involved in Implementation 13 C. Project Organization Structure 13

IV. COSTS AND FINANCING 14

A. Cost Estimates and Financing Plan 14 B. Table 4: Detailed Cost Estimate by Financing Source 17 C. Allocation and Withdrawal of Loan Proceeds 19 D. Allocation and Withdrawal of Grant Proceeds 20 E. Contract Awards and Disbursements 23 F. Contract and Disbursement S-curve 25 G. Fund Flow Diagram 26

V. FINANCIAL MANAGEMENT 27

A. Financial Management Assessment 27 B. Disbursement 27 C. Accounting 28 D. Auditing 29

VI. PROCUREMENT AND CONSULTING SERVICES 30

A. Procurement of Goods, Works and Consulting Services 30 B. Procurement Plan 31 C. National Competitive Bidding 35 D. Consultant's Terms of Reference 37

VII. SAFEGUARDS 63

VIII. GENDER AND SOCIAL DIMENSIONS 73

A. Updated Gender Action Plan 73

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 79

A. Design and Monitoring Framework 79 B. Monitoring 83 C. Evaluation 84 D. Reporting 85 E. Stakeholder Communication Strategy 85

X. ANTICORRUPTION POLICY 86

XI. ACCOUNTABILITY MECHANISM 87

XII. RECORD OF PAM CHANGES 88

Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

2. The Ministry of Finance and Economic Management (MFEM) as executing agency and the Ministry of Infrastructure and Public Utilities/Public Works Department (MIPU/PWD) and Department of Environmental Protection and Conservation (DEPC) as implementing agencies are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. The Vanuatu Project Management Unit (VPMU), established through a Council of Ministers resolution on 1 November 2010, is responsible for the day-to-day management of contracts including Contract management, project progress monitoring and reporting, public awareness, is serves as the secretariat to the Steering Committee. ADB staff is responsible to support implementation including compliance by MFEM, MIPU/PWD and DEPC of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

3. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan and Grant Agreements. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan or Grant Agreement, the provisions of the Loan and/or Grant Agreement shall prevail.

4. After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

I. PROJECT DESCRIPTION

1. Port Vila, with approximately 44,000 residents, is the largest population center, main commercial center, and seat of government in Vanuatu. It has already expanded beyond its originally defined urban boundaries due to rapid economic development, rural-urban migration, and proliferating informal settlements. The estimated population of the resulting “Greater Port Vila” area in 2009 was 58,000 residents. By 2025, this figure may reach 109,000. This does not take into account the growing number of tourists that visit Port Vila and/or transit through the city to different tourism destinations in the country. It is estimated that at a given time about 3,000-4,000 tourists are in the city and beyond. The tourism sector is the lifeline of the national economy. Hence, urban development and the quality of urban services in Port Vila have significant implications for the tourism-led economic growth and overall development of Vanuatu. Despite noticeable improvement in telecommunication and water supply, significant inadequacies continue to exist, particularly in drainage, roads, sanitation, and hygiene services. The poor conditions of these services are adversely affecting public health, economic activities, and the overall quality of life of Port Vila residents and visitors.

2. Port Vila’s major infrastructure, including the roads, storm water drainage, and sanitation subsectors, has received minimal capital support since the time of independence in 1980. Major surfaced roads are heavily potholed and deteriorated due to deferred maintenance and absence of a system to drain the storm water resulting from frequent heavy downpours. The runoff from these downpours causes flooding and chaotic conditions for the vehicle and pedestrian traffic resulting in considerable financial and economic losses. In addition, all road debris such as silt, grit, garbage, waste and oil reach the sea affecting the quality of receiving waters causing damage to the marine environment. The system for removal and disposal of human waste from households and business premises is, at present, environmentally unsatisfactory, as untreated sludge is disposed of in open pits near major waterways, exposing the urban population to waterborne diseases. Communities as well as major public areas of the central business district lack safe and hygienic sanitation facilities. Vanuatu is also extremely vulnerable to natural disasters due to it its geographical location in the “ring of fire” and the “cyclone belt” of the Pacific. It is at risk from a wide range of climate-related hazards such as tropical cyclones and floods that are expected over time to increase in severity and frequency as a result of climate change, warranting emphasis on climate resiliency.

3. Sustainable urban development through improved access to basic services such as sanitation and drainage facilities and urban infrastructure is an important priority for the government under its Priorities and Action Agenda (PAA) 2006-2015 and a medium-term action program, entitled “Planning Long, Acting Short Action Program.”1 The latter prioritizes a set of short- and medium-term development initiatives. This is also identified among the three core sectors for support under the Asian Development Bank’s (ADB) Country Partnership Strategy for Vanuatu (CPS) 2010-2014.23 The CPS also places emphasis on long-term support for country systems and capacities in core areas such as rural and urban infrastructure. Currently, Australian Department of Foreign Affairs and Trade (DFAT), Japan International Cooperation Agency and New Zealand Aid Program are providing a wide range of support covering the urban, rural, and interisland transport and capacity building in the country. ADB and DFAT are

1 The PAA was developed with ADB support: ADB. 2004. Technical Assistance to the Republic of Vanuatu for a

Medium-Term Strategic Framework. Manila. 2 The two other sectors are transport and energy. ADB. 2009. Country Partnership Strategy: Vanuatu, 2010-2014.

Manila.

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3. expected to assist the government to improve urban infrastructure and services in Port Vila and its periurban areas.

4. In financing and implementing the PAA agenda, the government’s strategy with development partners is to maximize grant resources, especially from bilateral sources. The government recognizes that partnership with ADB in conjunction with bilateral partners can result in a higher level of resource flow for PAA, and greater ability to design and implement integrated and robust projects such as the proposed one. One important incentive for the government to prioritize investment in sanitation and related urban development as well as to seek ADB assistance has been the ability of the investment to generate higher revenues and cater to broader socioeconomic goals.

5. The proposed project is designed to implement the investment plan to improve drainage and associated road network as part of the drainage and sanitation master plan for 2011-2025.4 For improving sanitation it will construct a sludge treatment plant that will eventually be the site for a fully piped sanitation system for greater Port Vila. An integrated approach will be used for hygiene and health education and awareness activities to ensure active involvement of the youth and women in the periurban, informal, and rural settlements. Explicit methodology will be developed for public-private partnerships, and community and civil society participation as well as labor-based approaches in the construction and operation and maintenance (O&M) of roads, drainage, and sanitation and hygiene facilities. Mitigation of adverse environmental impacts and appropriate investment in climate proofing will also be included in the project.

6. Impact and Outcome. The project impact will be urban development of Port Vila is sustainable. The expected outcome is the Government reduces flooding in Port Vila, operates a safer and less congested road network, and improves health and hygiene of Port Vila residents.

7. Output 1: Improved road and drainage network in Port Vila. This output will comprise (i) repair, improvements and/or renewal of roads with curbs, footpaths, and other essential road features; and (ii) provision of a new storm water drainage system and improvement of existing drains in the highest priority flood prone areas together with new channels. A total of 7 square kilometers of drainage basins in 3 catchment areas will be supported for road and drainage improvements. Approximately 13.3 kilometers of roads will be rehabilitated within these 3 catchment areas.56 The project will install grease and silt traps but its scope and design will be open to incorporate additional measures that will allow further treatment of storm water runoff.

8. Output 2: Improved sanitation system in greater Port Vila. This output will improve the disposal and treatment of sludge from domestic and commercial septic tanks through (i) improving the management of the privately operated sludge collection and disposal system; and (ii) design and construction of a sludge treatment plant (STP) and disposal facility.

9. Output 3: Central area and settlement communities use improved hygiene facilities. This output will (i) set up a number of multipurpose, multi-user sanitation facilities including toilets, washing and bathing facilities in villages and periurban settlements, selected on the basis of a demonstrated need and willingness by the community to contribute to the operation and maintenance (O&M) of facilities; (ii) upgrade, rebuild, or refurbish public toilets,

4 ADB. 2010. Port Vila Urban Development Project Phase 1: Situation Analysis and Master Plan Formulation. Manila.

5 The five catchment areas are (i) Tebakor, (ii) Central Business District, (iii) Lini Highway North; (iv) Seven Stars

Ohlen, and (v) Seven Stars Anabrou.

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principally in the city center and located at major publicly owned sporting facilities; and (iii) involve women in site selection and design of sanitation facilities and maintenance activities.

10. Training programs will be implemented on (i) planning and policy improvement in hygiene and sanitation, drainage and road development such as the sanitation policy, building code, public roads act and traffic management act; (ii) O&M, monitoring, and quality control of urban road networks and sanitation and drainage facilities; (iii) contract management under public-private partnership; (iv) hygiene and health education and awareness for community organizations; and (v) household sanitation improvement with direct involvement and participation of women and youth. An O&M plan will be developed for the project assets in consultation with other development partners, key government agencies and the private sector, and with due consideration of lessons learned from other projects and for wider application. The project will also provide specific training on (i) gender awareness in hygiene and sanitation for government agencies and community and user organizations, and (ii) management and maintenance of communal sanitation facilities for women and youth groups as part of the project strategy for local employment generation.

11. All training and/or capacity development programs will be developed and implemented in close consultation with other development partners’ programs such as the technical and vocational education and training and capacity building provided by DFAT under the Roads for Development program. Likewise, the approach and methodology and conduct of awareness raising, education and information dissemination on sanitation, and hygiene and health promotion will be coordinated with relevant departments and organizations such as the Ministry of Health (MoH), Ministry of Education (MoE), Department of Environmental Protection and Conservation (DEPC), UNICEF, local non-government organizations, domestic private sector and other interest groups such as operators of commercial and tourist vessels, hotels and restaurants. The awareness campaigns to be conducted by the project will influence user groups to appropriately dispose and treat wastes.

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II. IMPLEMENTATION PLANS

A. Project Readiness Activities

12. The Ministry of Finance and Economic Management (MFEM) is the EA of the project. The Ministry of Infrastructure and Public Utilities (through its Public Works Department) and DEPC will be the key implementing agencies. The Council of Ministers, through a resolution dated 1 November 2010, has establish a Vanuatu Project Management Unit (VPMU) as a dedicated unit for managing large and nationally significant projects with allocation of budget and core staff. The Director of VPMU will be responsible for day to day management of the project supported by VPMU staff, project consultants and the implementing agencies.

13. Consulting services will be provided to assist the VPMU in project implementation. Design, supervision and capacity development (DSCD) consultants, will be provided through a consulting firm, have been recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time) using quality- and cost-based selection (QCBS) and full technical proposals, except for the project advisor, who will be recruited on individual selection basis.

14. The VPMU Steering Committee will provide guidance and direction for the project. The responsibilities and the composition of the VPMU Steering Committee are described in the Vanuatu Project Management Unit (VPMU) Charter as amended in September 2013. The September 2013 amendment to the VPMU Charter was approved by the Council of Ministers on 12 September 2013.

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B. Overall Project Implementation Plan

15. The project implementation schedule was updated in October 2016 and reflects the project implementation schedule as agreed by the stakeholders at that time.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

16. Table 1 shows the project stakeholders and their respective management roles and responsibilities to the project.

Table 1: Roles and Responsibilities

Project Stakeholders Management Roles and Responsibilities

Ministry of Finance and Economic Management

Borrower

Ministry responsible for external borrowing

Executing Agency

Responsible for submitting withdrawal applications; reporting requirements, including submitting the annual audit report and audited financial statements; and record keeping

Provide counterpart funds including in-kind contribution (e.g., land for sludge treatment plant), project management and counterpart staff, and taxes and duties.

Vanuatu Project

Management Unit Day-to-day management of the project including contract management and performance management, project progress monitoring and reporting, and public awareness, Secretariat to the Project Steering Committee.

Key Implementing Agencies Ministry of Infrastructure

and Public Utilities (through the Public Works Department)

Responsible for: (i) due diligence and quality assurance of detailed

engineering design and documentation (DEDDE) outputs;

(ii) provision of technical inputs and support to VPMU during design and construction to ensure assets delivered through the project, which may include roads and drainage where designated by the Road Administrator under the Road Act (2013) to be operated by the Ministry of Infrastructure and Public Utilities (through the Public Works Department) or requiring Ministry of Infrastructure and Public Utilities (through the Public Works Department) approvals meet the required standards of the Government of Vanuatu.

(iii) operations and maintenance of roads and drainage assets delivered through the project where designated by the Road Administrator under the Road Act (2013)..

Port Vila Municipal Council Responsible for: (i) due diligence and quality assurance of detailed

engineering design and documentation outputs for assets delivered through the project which shall be operated by Port Vila Municipal Council including

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septic tank sludge treatment facilities and public sanitation facilities;

(ii) provision of technical inputs and support to VPMU during design and construction to ensure assets delivered through the project intended for operation by Port Vila Municipal Council or requiring Port Vila Municipal Council consents and approvals meet the required standards of Port Vila Municipal Council and the Government of Vanuatu.

(iii) operations and maintenance of septic tank sludge treatment facilities and public sanitation assets delivered through the project and roads and drainage delivered through the project where designated by the Road Administrator under the Road Act (2013)

Department of Environmental Protection and Conservation

Provide overall guidance in implementing the environmental requirements of the project, including training support for relevant organizations.

ADB Lender Project financier through concessional loan

Provide due diligence/quality assurance and high level oversight of the project component design and implementation and compliance monitoring of the project covenants and assurances.

DFAT

Joint cofinancier

Joint cofinancier of the project through grant assistance Beneficiaries The residents of settlement communities, particularly

women’s groups, will be responsible to manage and keep up multipurpose, multi-user sanitation facilities.

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B. Key Persons Involved in Implementation

Ministry of Finance and Economic Management

Director General +678 22790 PMB 9057 Port Vila, Vanuatu

Asian Development Bank Ms. Emma Veve

Director, Urban, Social Development and Public Management Pacific Regional Department +632 632 4444 eveve@adb.org

Stephen Blaik Senior Urban Development Specialist Pacific Regional Department +632 632 6127 sblaik@adb.org

Australia Simon Flores, Counsellor Development Cooperation, Department of Foreign Affairs and Trade.

C. Project Organization Structure

Figure 1: Organization Chart

Development Partners

Vanuatu Project Management

Unit (VPMU)

Prime Minister’s Office

(PMO)

Minister of Finance and Economic

Management (MFEM)

Government Line Agencies, DEPC, MoH, MLGM, PVMC,

SHEFA, MIPU

Urban Development Implementation

Advisory

Government of Vanuatu

Design, Supervision and Project Management Team

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IV. COSTS AND FINANCING

A. Cost Estimates and Financing Plan

17. The project cost when the project was negotiated in November 2011 was $39.1 million equivalent, including taxes and duties. The current cost estimate, with a reduced project scope, is $35.5 million. The summary cost table, which reflects the project cost estimate when the project was negotiated and the current cost estimate, is presented in Table 2.

Table 2: Cost Estimate ($’millions)

Item At Project Negotiations

a,c

Change in Scope

b,c

Additional Financing

b,c

A. Base Cost

1 Road networks and drainage systems improvements

21.60 18.43 20.59

2 Sanitation system 5.40 1.40 1.38 3 Hygiene improvements 0.90 1.51 1.49 4 Institutional strengthening 1.50 0.08 0.08 5 Consulting services / Project

management officed

4.70 9.03 9.78

6 Equipment 0.00 0.12 0.12 Subtotal (A) 34.10 30.56 33.43 B. Contingencies

e 4.90 1.96 1.96

C. Financing Charges during Implementation 0.10 0.11 0.11 Total (A+B+C) 39.10 32.63 35.50 a

In mid-2011 prices.

b

In mid-2016 prices.

c Including taxes and duties to be financed from the government.

d

Most of the projects institutional strengthening components are now delivered by the Project's consultants and these costs for the "change of Scope" and Additional Financing" scenarios are included in the Consulting Services / Project management office cost category. e This amount includes ADB’s administration fee, audit costs, bank charges, and a provision for foreign exchange

fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by the Government of Australia. Sources: Government of Vanuatu and ADB estimates.

18. The government has received a loan in various currencies equivalent to SDR 3,174,000 from ADB’s Special Funds resources to help finance the project. The loan has a 32-year term, including a grace period of 8 years, an interest rate of 1.0% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions as set forth in the draft loan agreement. The interest during construction on the ADB loan is to be capitalized. Transportation and insurance costs may be financed by loan and grant proceeds. 19. The Government of Australia has provided grant cofinancing of $4.50 million through the Memorandum of Understanding on Channel Financing between the Government of the Commonwealth of Australia and ADB, and A$26.50 million ($20.6 million equivalent at the current exchange rate) to be administered by ADB. Note that the US dollar ($) – Australian dollar (A$) rate of exchange assumed when the grants were approved was approved was $1 – A$1. At 5 August 2016, the US dollar ($) – Australian dollar (A$) rate of exchange was $1 – A$1.31. 20. Additional project grant financing from the Global Environment Facility (GEF) Least Developed Countries Fund (LDCF grant) amounting to $2.87 million was endorsed by the GEF

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Chief Executive Officer on 14 October 2015 and committed by the LDCF Trustees on 3 December 2015. The LDCF grant, subject to ADB approval to manage the additional grant funds, will support:

(i) strengthening the climate resilience of road and drainage infrastructure delivered by: (a) increasing the design standard for the project’s drainage to a 2 year return period under the Year 2055 worst-case climate change scenario ($1.37 million); and (b) preparing catchment management plans based on sustainable urban drainage principles and implementing on-site flood attenuation and mitigation measures ($1.00 million); and

(ii) provision of specialist consultants ($0.5 million) to: (a) prepare climate resilient urban road standards and guidelines for Vanuatu, (b) prepare a disaster risk management plan for Port Vila, (c) strengthening the capacity of managers of public infrastructure to mainstream climate change adaptation in the planning and design of infrastructure, and (d) update the Vanuatu Building Code and provision of support to implement and enforce the updated Building Code.

21. The government will provide counterpart funding of $3.1 million of the project costs including taxes, duties and land acquisition. Table 3 shows the financing plan.

Table 3: Financing Plan

As Approved Revised

b With Additional

Financingb

Source Amount ($million)

Share of Total

Amount ($million)

Share of Total

Amount ($million)

Share of Total

Asian Development Bank ADF loan 5.00 12.8% 4.43 13.6% 4.43 12.5%

Government of Australia (i) CFA 4.50 11.5% 4.50 13.8% 4.50 12.7% (ii) Project grant

a 26.50 67.8% 20.65 63.3% 20.65 58.2%

Global Environment Fund (LDCF) 2.87 8.1% Government 3.10 7.8% 3.06 9.4% 3.06 8.6%

39.10 100.0% 32.63 100.0% 35.50 100.0% a.

= This amount includes ADB’s administration fee, audit cost, bank charges, and a provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by the Government of the Commonwealth of Australia. b.

Based on US$-A$ and US$-SDR current exchange rates prevailing on 6 August 2016. CFA = Memorandum of Understanding on Channel Financing between the Government of the Commonwealth of Australia and Asian Development Bank; LDCF – Least Developed Countries Fund. Sources: Government of Vanuatu and ADB estimates.

22. Administration of Cofinancing. ADB administers the grant cofinancing provided by the Government of Australia and GEF, including disbursements. ADB will review the procurement of works, goods, and services (including but not limited to invitations to bid, bidding documents, specifications, and other documents relating to procurement) as well as approve the award of contracts through bid evaluation reports for such procurement in accordance with ADB's Procurement Guidelines (2015, as amended from time to time) and eligibility requirements. ADB will review the selection and recruitment of consultants to be engaged by MIPU and VPMU (including qualifications and proposed terms and conditions of employment of consultants) and will approve the contract(s) negotiated between the consultants and MIPU and / or MIPU.

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Consultants will be selected and engaged in accordance with Guidelines on the Use of Consultants (March 2013, as amended from time to time).

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B. Table 4: Detailed Cost Estimate by Financing Source ($ ‘000)

Government ADB CFAa GOA Project

Grantb

GEF (LDCF) Total Cost

Outputs/Activities Amount % Amount % Amount % Amount % Amount % Amoun

t %

I Investment Costs A Civil Works - 3,615 - 14,700 2,120 20,435 57.6 1 Drainage and Road System

Improvement 2,818 13,000 2,120 17,938 50.5

1 (i)

All road and drainage works but excluding works as described in Note c.

2,818 17.8 13,000 82.2 15,818 44.6

1(ii) Road and drainage works as described in Note c.

2,120 100.0

2,120 6.0

2 Sanitation 502 41.8 700 58.2 1,202 3.4 3 Hygiene 294 22.7 1,000 77.3 1,294 3.6 B Land Acquisition Cost 238 100.0 238 0.7 C Trainings, Workshops,

Campaigns - 75 100.0 75 0.2

D Consulting Services - 4,293 4,739 750 9,782 27.6 1 Implementation Advisory

Consultants (International) d

653 59.7 440 40.3 1,093 3.1

2 Design & Implementation Consultants (international)

d

3,490 45.6 4,164 54.4 7,654 21.6

3 Design & Implementation Consultants (National)

d

150 52.6 135 47.4 285 0.8

4 Climate Change and Disaster Resilience Consultants

e

750 100.0

750 2.1

E Miscellaneous administration and support costs

f

12 100 12 0.0

F Equipment 120 100 120 0.3 G Project Operational Cost

g 156 100.0 156 0.4

H Taxes & Duties h 2,614 100.0 2,614 7.4

Total Investment Costs 3,008 9.0 3,615 10.8 4,500 13.5 19,439 58.1 2,870 8.6 33,431 94.2

II Interest During Implementation - - 110 100 - - 110 0.3 III Contingencies 48 703 1,209 1,960 5.5

Physical contingency 11 0.5 361 38.6 563 83.2 935 2.6 Price contingency 37 1.4 342 33.3 646 82.6 1,025 2.9

IV Total Project Cost 3,056 8.6 4,428 12.5 4,500 12.7 20,648 58.2 2,870 8.1 35,502 100.0

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a = Memorandum of Understanding on Channel Financing between the Government of the Commonwealth of Australia and ADB. CFA funds will be frontloaded at the contract

commitment level. b= This amount includes ADB’s administration fee, audit costs, bank charges, and a provision for foreign exchange fluctuations (if any), to the extent that these items are not

covered by the interest and investment income earned on this grant, or any additional grant contribution by the Government of Australia. c = This amount will finance: (a) completion of works at George Kalsakau Drive, (b) Drainage at Seven Stars, Manples infiltration basin, Fatumaru Bay sediment trap, and CBD

gross pollutant traps; and (c) urban road maintenance contract. d = 100% of eligible expenditures may be claimed for either the CFA or GOA grants in accordance with the PCSS numbers with the exception of eligible payments for the

Design, Supervision, and Capacity Development consultancy (Roughton International) which has been claimed from the CFA grant. As the allocation under the CFA grant for the Roughton International Ltd grant is almost fully drawn down, 100% of all claims for the Roughton International Ltd contract henceforth shall be claimed from the GOA grant. e = This amount will finance (a) preparation climate resilient urban road standards and guidelines for Vanuatu, (b) preparation a disaster risk management plan for Port Vila, (c)

strengthening the capacity of managers of public infrastructure to mainstream climate change adaptation in the planning and design of infrastructure, and (d) preparation of catchment management plans (2 No.) follow sustainable urban drainage principals; and (e) updating of the Vanuatu Building Code and provision of support to implement and enforce the updated Building Code. f = Includes support staff costs, communications, transport costs, and office support, among others..

g = In-kind contribution.

h = To be financed by government. Source: Asian Development Bank

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C. Allocation and Withdrawal of Loan Proceeds

23. Table 5 presents the allocation and project cost sharing arrangement for the proceeds of the loan. Please note that the amounts allocated and the percentages will apply to all withdrawal applications prepared on or after the date on which ADB approves the administration of the LDCF grant.

Table 5: Allocation and Withdrawal of Loan Proceeds CATEGORY

Percentage Number Item

Total Amount Allocated

SDR '000

Category Subcategory

1 Civil Works 2,591,000

1a** Drainage and Road Improvements

2,020,000 17.8% of total expenditure claimed.*

1b Sanitation (output 2)

** 360,000 41.8% of total

expenditure claimed.*

1c Hygiene (output 3) 211,000 22.7% of total expenditure claimed.*

2 Interest During Implementation 79,000 100% of total amounts due.

3 Unallocated 504,000

TOTAL 3,174,000

* Exclusive of taxes and duties imposed within the territory of the Recipient. ** All road and drainage improvements but excluding costs for: (a) completion of works at George Kalsakau Drive comprising works with Lot 30 and the Promenade works, (b) Drainage at Seven Stars, ManPles infiltration basin, Fatumara Bay sediment trap, and CBD gross pollutant traps; and (c) urban road maintenance contract.

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D. Allocation and Withdrawal of Grant Proceeds

24. Table 6 presents the allocation and project cost sharing arrangement for the proceeds of the Government of Australia Channel Financing Agreement (CFA) grant.

Table 6: Allocation and Withdrawal of CFA Grant Proceeds CATEGORY Percentage

Number Item Total Amount Allocated

$

Category Subcategory

1 Trainings, Workshops, and Campaigns

75,000 100% of total expenditure claimed.*

2 Consulting Services 4,293,000

2a Implementation Advisory Consultants

652,800 100.0% of total expenditure claimed.*

2b Design and Implementation Consultants - International

3,490,200 100.0% of total expenditure claimed.*

2c Design and Implementation Consultants - National

150,000 100.0% of total expenditure claimed.*

3 Miscellaneous Administration and Support Cost

12,000 100% of total expenditure claimed.*

4 Equipment 120,000 100% of total expenditure claimed.*

TOTAL 4,500,000

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

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25. Table 7 presents the allocation and project cost sharing arrangement for the proceeds of the Government of Australia project grant. Please note that the amounts allocated and the percentages will apply to all withdrawal applications prepared on or after the date on which ADB approves the administration of the LDCF grant.

Table 7: Government of Australia Project Grant

CATEGORY Percentage

Number Item Total Amount Allocated

$

Category Subcategory

1 Civil Works 14,700,000

1a** Drainage and Road Improvement 13,000,000 82.2% of total expenditure claimed.*

1b Sanitation (output 2) 700,000 58.2% of total expenditure claimed.*

1c Hygiene (output 3) 1,000,000 77.3% of total expenditure claimed.*

2 Consulting Services 4,738,670

2a Implementation Advisory Consultants

440,000 100.0% of total expenditure claimed*

2b Design and Implementation Consultants - International

4,163,670 100.0% of total expenditure claimed*

2c Design and Implementation Consultants - National

135,000 100.0% of total expenditure claimed*

3 Unallocated*** 1,209,104

TOTAL 20,647,774 * Exclusive of taxes and duties imposed within the territory of the Recipient. *** May be used to adjust for foreign exchange fluctuations and towards any administration fee or other charges,

such as audit costs and bank charges, payable to ADB under the DFAT-ADB Cofinancing Agreement.

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26. Table 8 presents the allocation and project cost sharing arrangement for the proceeds of the Global Environment Facility LDCF grant.

Table 8: Global Environment Facility LDCF Grant CATEGORY Percentage

Number Item Total Amount Allocated

$

Category Subcategory

1 Civil Works ** 2,120,000 100% of total expenditure claimed*

2 Consulting Services *** 750,000 100% of total expenditure claimed*

TOTAL 2,870,000 * Exclusive of taxes and duties imposed within the territory of the Recipient. ** Allocated funds to finance: (a) completion of works at George Kalsakau Drive, (b) Drainage at Seven Stars,

Manples infiltration basin, Fatumaru Bay sediment trap, and CBD gross pollutant traps; and (c) urban road maintenance contract.

*** Allocated funds to finance (a) preparation climate resilient urban road standards and guidelines for Vanuatu, (b) preparation a disaster risk management plan for Port Vila, (c) strengthening the capacity of managers of public infrastructure to mainstream climate change adaptation in the planning and design of infrastructure, and (d) preparation of catchment management plans (2 No.) follow sustainable urban drainage principals; and (e) updating of the Vanuatu Building Code and provision of support to implement and enforce the updated Building Code.

23

E. Contract Awards and Disbursements

27. Contract award projections from the donor financing sources are presented in Table 9. The projections do not include taxes, duties, and land acquisition costs.

Projected Annual Contract Award by Donors (Updated 22 September 2016)

Quarter Year ADB Loan* Project Grant*

CFA Grant*

GEF Grant*

Total - Year*

Q1 2013 $- $- $- $- Q2 2013 $- $- $- $- Q3 2013 $- $- $- $- Q4 2013 $- $2,465,380 $4,112,728 $- $6,578,108

Q1 2014 $- $49,107 $- $- Q2 2014 $- $- $78,186 $- Q3 2014 $- $- $- $- Q4 2014 $- $426,675 $- $- $553,968

Q1 2015 $- $- $- $- Q2 2015 $- $- $13,325 $- Q3 2015 $92,564 $443,438 $- $- Q4 2015 $- $- $83,550 $- $632,877

Q1 2016 $3,088,884 $12,501,662 $- $- Q2 2016 $92,451 $333,780 $72,686 $- Q3 2016 $- $- $- $- Q4 2016 $- $1,500,000 $47,314 $- $17,636,777

Q1 2017 $- $1,166,972 $- $910,000 Q2 2017 $457,522 $1,017,104 $5,211 $1,960,000 Q3 2017 $696,406 $- $- $- Q4 2017 $- $743,657 $87,000 $- $7,043,872

TOTAL $4,427,828 $20,647,775 $4,500,000 $2,870,000 $32,445,603

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

24

28. Annual disbursement projections from the donor financing sources are presented in Table 10. The projections do not include taxes, duties, and land acquisition costs.

Projected Annual Disbursements by Donors (Updated 22 September 2016)

Quarter Year

ADB loan Project grant CFA grant GEF grant Total - Quarter

Total - Year

Q1 2013 $- $- $- $- $-

Q2 2013 $- $- $- $- $-

Q3 2013 $- $- $- $- $-

Q4 2013 $- $- $684,343 $- $684,343 $684,343

Q1 2014 $- $- $350,043 $- $350,043

Q2 2014 $- $- $683,860 $- $683,860

Q3 2014 $- $7,873 $432,270 $- $440,144

Q4 2014 $- $- $572,904 $- $572,904 $2,046,951

Q1 2015 $- $- $303,901 $- $303,901

Q2 2015 $- $37,100 $194,107 $- $231,207

Q3 2015 $- $55,650 $599,659 $- $655,309

Q4 2015 $- $501,889 $242,939 $- $744,827 $1,935,244

Q1 2016 $- $466,566 $5,305 $- $471,871

Q2 2016 $162,556 $1,866,507 $105,237 $- $2,134,299

Q3 2016 $360,288 $1,682,778 $- $- $2,043,066

Q4 2016 $609,785 $2,995,384 $84,551 $- $3,689,719 $8,338,955

Q1 2017 $396,798 $1,656,723 $9,309 $- $2,062,830

Q2 2017 $301,880 $1,816,790 $9,309 $90,826 $2,218,805

Q3 2017 $788,283 $3,860,263 $14,520 $493,477 $5,156,544

Q4 2017 $670,584 $2,576,583 $99,931 $911,954 $4,259,052 $13,697,230

Q1 2018 $58,688 $361,771 $- $442,000 $862,459

Q2 2018 $85,466 $284,732 $- $392,000 $762,198

Q3 2018 $35,193 $315,644 $20,190 $392,000 $763,027

Q4 2018 $958,306 $2,161,524 $87,621 $147,743 $3,355,195 $5,742,879

Q1 2019 $- $- $- $- $-

Q2 2019 $- $- $- $- $-

Q3 2019 $- $- $- $- $-

Q4 2019 $- $- $- $- $- $-

TOTAL $4,427,828 $20,647,775 $4,500,000 $2,870,000 $32,445,603 $32,445,603

25

F. Contract and Disbursement S-curve

29. Figure 2 shows the projected contract awards and disbursement over the life of the project, and annually based on the contract awards and disbursement projections.

Figure 2. Cumulative Contract Award and Disbursement Projections

$ -

$ 3,000,000

$ 6,000,000

$ 9,000,000

$ 12,000,000

$ 15,000,000

$ 18,000,000

$ 21,000,000

$ 24,000,000

$ 27,000,000

$ 30,000,000

$ 33,000,000

$ 36,000,000

$ 39,000,000

2013 2014 2015 2016 2017 2018 2019

Year

Contract Awards

Disbursements

26

G. Fund Flow Diagram

30. Figure 3 shows how the funds will flow from ADB, Government of Australia, the Global Environment Fund, and the Government of Vanuatu to implement project activities.

Figure 3: Flow of Funds

Asian

Development

Bank

Consulting Services/Civil Works

(v)

(vii)

Government of

Australia

Ministry of Finance and Economic Management/

Vanuatu Project Management Unit

(ii)

Funds Flow

Documents Flow

Imprest

Accounts

(Loan and

Grants)

Account for

Government

Fund

Reserve Bank of Vanuatua

(i)

(iii)

(iv)

(iv)

(vi)

Global Environment

Fund

Imprest Account Procedure:

(i) The Project contractor/supplier issues and invoice.

(ii) The VPMU checks the claim for ADB, Government of Australia, and GEF financing and makes the payment

from the imprest accounts.

(iii) The VPMU send a withdrawal application for replenishment of the imprest account(s) to ADB, and to the

government with full supporting documents, endorsed by the EA.)Separate imprest accounts will be established

and maintained, as necessary, to ensure no comingling of funds.

(iv) ADB-administered funds (i.e. ADF loan, Government f Australia grants, and the GEF grant) are channeled

through the Reserve Bank of Vanuatu to the respective imprest accounts for replenishment.

Direct Payment Procedure

(v) Consultant/contractor issues aan invoice to VPMU which checks the claim.

(vi) VPMU sends the withdrawal application for direct payment to ADB with supporting documentation.

(vii) ADB makes direct payments to the consultant/contractor.

a = Flow of funds in the Reserve Bank of Vanuatu account will be a pass-through account.

ADB = Asian Development Bank, AusAID= Australian Agency for International Development (now the Australian Department of Foreign Affairs and Trade), CFA = Channel Financing Agreement between the GoA and ADB, EA = executing agency, GoA = Government of Australia, MFEM = Ministry of Finance and Economic Management, VPMU = Vanuatu Project Management Unit.

27

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

31. The project is managed on a day-to-day basis by Vanuatu Project Management Unit (VPMU). The Government established VPMU the within the Office of the Prime Minister (OPM) through a Charter approved by the Council of Ministers (COM) on 1 November 2010 and amended with the approval of the COM on 5 September 2013. Under the Charter, VPMU is mandated to oversee and manage large infrastructure development projects. The VPMU comprises: (i) a Steering Committee (SC) to provide oversight and direction for all matters relating to the VPMU; and (ii) a program management unit (PMU) which is responsible for the day-to-day management, including financial management, of the VPMU project portfolio and also is the secretariat to the SC. VPMU is funded through OPM recurrent funds appropriated through the national budget. VPMU currently manages 5 major projects with estimated costs totaling approximately $230 million. PMU staff resources consists of a staff compliment of 11 which include the Director, an international project management advisor, a financial manager, financial management assistant, an environmental and social mitigation officer, an environmental officer, a resettlement officer, an economist / monitoring and evaluation specialist, a communications and public relations officer, an executive secretary, and an administrative assistant. VPMU is currently recruiting a second financial management assistant and a national project manager.

32. VPMU has established financial management procedures to meet the requirements of Vanuatu’s Financial Management Act and donor requirements. Until recently, the VPMU has provided effective financial management of its budget and project funds. Processing and payment of contractor claims are well within the contractual limits and the submission of audited PVUDP project accounts and financial statement (APA/AFS - all unqualified) has been within the timeframes stipulated in the project financing agreements, with the exception of fiscal year (FY) 2015 APFS . The volume of financial transactions (processing of contractor claims) has increased markedly in 2016 as most of the projects managed by VPMU move from the design phase to the construction phase. This has resulted in some delays in processing contractor claims and delayed preparation of documentation required for the external audit of FY2015 PVUDP project accounts. As noted above, VPMU is currently recruiting a second financial management assistant to increase its financial management capacity to avoid delays in processing contractor claims and preparation of documentation required for external audits.

33. The EA will prepare an anticorruption strategy and action plan for the project and establish a complaint mechanism. MIPU through PWD and MFEM will support anticorruption efforts and transparency through consultation on major project decisions regarding reforms, and subproject selection and implementation. The SC will have an oversight role to ensure good governance of the project. The government also has an integrated computerized and centralized financial management system. MFEM has adopted International Public Sector Accounting Standards including accrual accounting and double entry bookkeeping, and reporting via a chart-of-accounts tied to budgetary cycles. Capacity development under the project will further strengthen financial management capacity of MFEM and MIPU.

B. Disbursement

34. Loan and grant proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2015, as amended from time to time),7 and detailed arrangements agreed upon between the government and ADB. Disbursements of the Government of Australia and GEF grants for each project output will be also administered in accordance with ADB’s Loan

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

28

Disbursement Handbook on a joint cost-sharing basis in accordance with the financing plan and the legal agreements with the exception of the LDCF grant which will be administered in accordance with ADB’s Loan Disbursement Handbook on a parallel basis in accordance with the financing plan and the legal agreements. Online training for project staff on disbursement policies and procedures is available at: http://wpqr4.adb.org/disbursement_elearning. Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.

35. Disbursements from the loan and grant proceeds under the civil works contracts and consulting services will be paid generally by direct payment procedures. The VPMU will review the claims submitted under the contracts and prepare the withdrawal applications with complete supporting documents, and submit to ADB for processing of payments.

36. To expedite project implementation through the timely release of funds, the borrower may establish separate imprest accounts for the loan and the grants at the Reserve Bank immediately after loan and grant effectiveness. The imprest accounts will be administered by VPMU in accordance with the ADB's Loan Disbursement Handbook (2015, as amended from time to time). Disbursement requests will be made by the VPMU, countersigned by the director general of MFEM. Except as ADB may otherwise agree, the ceiling for each imprest account will not exceed $100,000.8

37. The request for the initial and additional advances to the imprest account should be accompanied by an Estimate of Expenditure Sheet9 setting out the estimated expenditures for the forthcoming 6 months of project implementation. For every liquidation and replenishment request of the imprest accounts, the borrower will furnish to ADB (i) the statement of account (bank statement) where the imprest account is maintained, and (ii) the imprest account reconciliation statement reconciling the above mentioned bank statement against MFEM’s records.10 MFEM will submit withdrawal applications with relevant supporting documents substantiating eligible expenditures for the replenishment and liquidation of the imprest fund.

38. Before the submission of the first withdrawal application, MFEM should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is $50,000 equivalent.. Individual payments below this amount should be paid (i) by the EA/IA and subsequently claimed to ADB through reimbursement, or (ii) through the imprest fund procedure, unless otherwise accepted by ADB.

39. Prior to disbursement of financing in respect of output 2 (improved sanitation), the government will acquire the land for the sludge treatment plant in accordance with the resettlement plan.

C. Accounting

40. The Ministry of Finance and Economic Management (MFEM) will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following cash-based accounting system following the government’s financial regulations. The MFEM will prepare consolidated project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices.

8 Bank charges may be financed by ADB / DFAT/GEF funds. 9 Available in Appendix 10B of the Loan Disbursement Handbook. 10 As highlighted in Appendix 10C of the Loan Disbursement Handbook.

29

D. Auditing

41. MFEM will cause the detailed consolidated project financial statements to be audited in accordance with International Standards on Auditing by an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by MFEM.

42. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the loan and grants were used only for the purposes of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements.

43. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

44. The government, MFEM and VPMU have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.11 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

45. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.12 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.

11

ADB’s approach and procedures regarding delayed submission of audited project financial statements: (i) When audited project financial statements are not received by the due date, ADB will write to the executing agency

advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

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

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

12 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

30

VI. PROCUREMENT AND CONSULTING SERVICES

46. A procurement capacity assessment of MIPU has established that it has satisfactory procedures and policies in place, and has considerable experience in implementing external assistance. However, its experience to undertake procurement for large projects is limited. On the other hand, MFEM has experience in centralized procurement for large projects. It recently supported MIPU implement the Millennium Challenge Corporation using a centralized procurement system through a project management unit. Capacity development will be provided through the project to strengthen procurement capacity of both MFEM and MIPU with a focus on preparing and evaluating bidding documents. The VPMU will undertake the procurement of works, goods, and services.

A. Procurement of Goods, Works and Consulting Services

47. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines (2015, as amended from time to time). Procurement using the government’s systems and under national laws for national competitive bidding (NCB) will follow the procedures for NCB set out in the procurement plan.

48. For civil works and plant contracts, four contract packages will be procured by international competitive bidding (ICB) procedures and two by NCB procedures. For goods contracts, a single contract package will be procured by ICB. Goods comprising a vehicle and office equipment will be procured by shopping.

49. ICB procedures will be used for civil works contracts estimated to cost $3 million or more, and supply contracts valued at $1,000,000 or higher. NCB procedures will be used for civil works contracts estimated to cost less than $1.0 million. Shopping will be used for contracts for procurement of works and equipment worth $100,000 or less.

50. An updated procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and NCB guidelines is in Section B. Before the start of any procurement ADB and the Government will review the public procurement laws of the central and state governments to ensure consistency with ADB’s Procurement Guidelines.

51. All consultants will be recruited in accordance with ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The consultants for project design, supervision and project management were engaged using the QCBS method with a standard quality:cost ratio of 90:20.13

13 Checklists for actions required to contract consultants by method available are in the e-Handbook on Project Implementation

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

31

B. Procurement Plan

Basic Data

Project Name: Port Vila Urban Development Project

Project Number: 42391-013 Approval Number: 2832/0275/0276

Country: Vanuatu Executing Agency:

Ministry of Finance & Economic Management

Project Financing Amount: US$39,100,000 ADB Financing: US$5,000,000 Cofinancing (ADB Administered): US$31,000,000 Non-ADB Financing: US$3,100,000

Implementing Agency: (i) Ministry of Infrastructure and Public Utilities

(through the Public Works Department) (ii) Department of Environmental Protection

and Conservation.

Date of First Procurement Plan: 13 December 2011 Date of this Procurement Plan:

25 August 2016

A. Methods, Thresholds, Review and 18-Month Procurement Plan

1. Procurement and Consulting Methods and Thresholds

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

Procurement of Goods and Works

Method Threshold Comments

International Competitive Bidding for Goods

US$1,000,000 and Above

National Competitive Bidding for Goods

Between US$100,001 and US$999,999

The first NCB is subject to prior review, thereafter post review.

Shopping (Goods and works) Up to US$100,000

International Competitive Bidding for Works

US$3,000,000 and Above

National Competitive Bidding for Works

Between US$100,001 and US$2,999,999

The first NCB is subject to prior review, thereafter post review.

Consulting Services

Method Comments

Quality- and Cost-Based Selection for Consulting Firm (quality-cost ratio 90:10)

(i) >$1 million - Full technical proposal (FTP) (ii) $600,000 - $999,999 – Simplified technical proposal (STP (iii) <$600,000 – biodata technical proposal.

Individual Consultants Selection for Individual Consultant

2. Goods and Works Contracts Estimated to Cost $1 Million or More

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

32

Package Number

General Description

Estimated Value

Procurement Method

Review

(Prior/Post)

Bidding Procedure

Advertisement Date

(quarter/year)

Comments

PVUDP Wa02-15a

Roads Rehabilitation and Drainage - Phase 1 - Additional Works

$1,340,000 Variation to on-going contract.

Prior Financial proposal.

N/A Ongoing contract amount: $13,977,689

3. Consulting Services Contracts Estimated to Cost $100,000 or More

54. The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Package Number

General Description

Estimated Value

Recruitment Method

Review

(Prior/Post)

Advertisement Date (quarter/year)

Type of Proposal

Comments

CS007 Catchment Management Plans - Sustainable Urban Drainage Design

$250,000 CQS or variation to ongoing contract CS002

Prior Q1 2017 Expanded biodata

Could be procured through variation to Contract CS002.

CS008 Climate Adaptation and Disaster Risk Management Planning

$500,000 CQS Prior Q1 2017 Expanded biodata

CS009 Environmental Water Quality Monitoring

$200,000 CQS or variation to ongoing contract CS002

Prior Q1 2017 Expanded biodata

Could be procured through variation to Contract CS002.

33

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

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

Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procurement Method

Review

(Prior/ Post)

Bidding Procedure

Advert Date

(quarter/year)

Comments

PVUDP Wa01-05a

Rehabilitation and Improvement of George Kalsakau Drive – Additional Works

$658,257 1 National Competitive Bidding

Prior Single stage, single envelope

Q4 2016

Prequalification of Bidders: No Bidding Document: Small Works Could be procured through variation to Contract PVUDP Wa01--15

TBA Works - Rehabilitation of Public Toilets

$700,000 1 National Competitive Bidding

Prior Single stage, single envelope

Q4 / 2016

Prequalification of Bidders: No

TBA Urban Road Maintenance

$120,000 1 National Competitive Bidding

Prior Q1 / 2017

Prequalification of Bidders: No

Consulting Services

Package Number

General Description

Estimated Value

Number of

Contracts

Recruitment Method

Review

(Prior/ Post)

Advertisement Date

(quarter/year)

Type of Proposal

Comments

None

B. Indicative List of Packages Required Under the Project

56. The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review

(Prior/Post)

None

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Recruitment Method

Review

(Prior/Post)

None

34

C. List of Awarded and On-going, and Completed Contracts

57. The following tables list the awarded and on-going contracts, and completed contracts.

Awarded and Ongoing Contracts Goods and Works

Package Number

General Description

Estimated Value

Contract Value

Procurement Method

Advertisement Date

(quarter/year)

Date of ADB

Approval of Contract Award

Comments

PVUDP Wa01-15

Rehabilitation and Improvement of George Kalsakau Drive

$919,848 $509,155 National Competitive Bidding

Q2 / 2015 22-Jul-15

PVUDP Wa02-15

Roads Rehabilitation and Drainage - Phase 1

$18,500,000 $13,977,689 International Competitive Bidding

Q4 / 2015 22-Dec-15

PVUDP Wb01-15

Construction of a Septage Treatment Facility

$477,281 $815,925 National Competitive Bidding

Q2 / 2015 8 Oct-15

PVUDP Wc01-15

Construction of Community Sanitation Facilities

$450,000 $427,360 National Competitive Bidding

Q2 / 2015 22-Mar-16

Consulting Services

Package Number

General Description

Estimated Value

Contract Value

Recruitment Method

Advertisement Date

(quarter/year)

Date of ADB Approval of

Contract Award

Comments

CS 002 Project Implementation Assistance

$6,000,000.00 $5,955,600 QCBS Q1 / 2013 02-Sep-13

CS 001 Project Management Advisor

$550,000.00 $622,508 ICS Q2 / 2013 09-Aug-13

CS3 National Project Manager

$100,000.00 $68,900.00 ICS Q3 / 2013 25-Feb-14

CS 004 Materials Laboratory Specialist

$440,000 $440,000 ICS Q4 / 2014 08-Dec-14

CS 005 Auditing Services

$80,000 $57,287 ICS Q1 / 2014 28-May-14

CS 006 Communications and Public Relations Officer

$80,000 $73,327 ICS Q4 / 2015 28-Oct-15

35

C. National Competitive Bidding

58. The procedures to be followed for national competitive bidding will be those set forth in the provisions on competitive bidding in Part 5 (Purchasing Approval and Payment for Goods and Services) of the Public Finance and Economic Management Act No. 6 (1998)14 with modifications set forth below in order to ensure economy, efficiency, transparency, and broad consistency with the provisions of Section I of the ADB Procurement Guidelines (2015, as amended from time to time) as required by paragraph 3.3 and 3.4 of the Guidelines:

a. Eligibility

59. The eligibility of bidders will be as defined under Section I of the ADB guidelines; accordingly, no bidder or potential bidder will be declared ineligible for contracts financed by ADB for reasons other than those provided in Section I of the guidelines. Foreign bidders will be eligible to participate in bidding under the same conditions as national bidders. In particular, no domestic preference over foreign bidders will be granted to national bidders in bid evaluation, nor will foreign bidders be asked or required to form joint ventures with national bidders in order to submit a bid.

b. Registration

60. Registration will not be used to assess bidders’ qualifications. A foreign bidder will not be required to register as a condition for submitting its bid and, if determined to be the lowest evaluated responsive bidder, will be given a reasonable opportunity to register, without any let or hindrance. The registration process will not be applicable for subcontractors. Bidding will not be restricted to any particular class of contractors, and nonclassified contractors will also be eligible to bid.

c. Advertising Time for Bid Preparation

61. Invitations to bid will be advertised in at least one newspaper with national circulation, allowing a minimum of 30 days for the preparation and submission of bids except for commodities and small goods contract. Potential bidders will be allowed to purchase bidding documents any time prior to the deadline for submission of bids.

d. Standard Bidding Documents

62. Standard bidding documents that are acceptable to ADB will be used.

e. Qualification Criteria

63. Qualification criteria will be clearly specified in the bidding documents, and all criteria so specified, and only such specified criteria, will be used to determine whether a bidder is qualified. Qualification will be assessed on a pass or fail basis, and merit points will not be used. Such assessment will take into account only the bidder’s capacity and resources to perform the contract, specifically its experience and past performance on similar contracts; capabilities with respect to personnel, equipment, and construction and manufacturing facilities; and financial

14 Government of Vanuatu. 1998. Government of Vanuatu Financial Regulations. Port Vila.

36

capacity. The evaluation of the bidder’s qualifications will be conducted separately from the technical and commercial evaluation of the bid.

f. Bid Submission, Bid Opening, and Bid Evaluation

64. Bidders may submit bids, at their option, in person, by courier service, or by mail. Bids will be opened in public, immediately after the deadline for submission of bids. Bids received after the deadline for bid submission will be rejected and returned to the bidders unopened. All bidding for goods and works will be carried out through a one envelope procedure. Evaluation of bids will be made in strict adherence to the criteria that will be clearly specified in the bidding documents and quantified in monetary terms for evaluation criteria other than price; merit points will not be used in bid evaluation. A contract will be awarded to the technically responsive bid that offers the lowest evaluated price, and no negotiations will be permitted. Bidders will not be eliminated from detailed evaluation on the basis of minor, non-substantial deviations. No bidder will be rejected on the basis of a comparison with the employer’s estimate and budget ceiling without ADB’s prior concurrence. A copy of the minutes of the public bid opening will be promptly provided to all bidders and to ADB with respect to contracts subject to prior review.

g. Rejection of All Bids and Re-bidding

65. Neither will all bids be rejected nor new bids solicited without ADB’s prior written concurrence.

h. Extension of the Validity of Bids

66. Extension of the validity of bids may be allowed in exceptional circumstances, but there will be no amendment of the price or any other condition of the bids. Bidders may refuse such an extension without forfeiting their bid securities, but bidders granted an extension will provide extension of the validity of their bid securities.

i. Complaints by Bidders and Handling of Complaints

67. The recipient of the bids will establish and implement an effective and independent protest mechanism allowing bidders to protest and to have their protests handled in a timely manner.

j. Fraud and Corruption

68. ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing for, or in executing, a contract financed by ADB.

k. Right to Inspect/Audit

69. Each bidding document and contract financed from the proceeds of a financing will include a provision requiring bidders, suppliers, contractors, and subcontractors to permit ADB, at its request, to inspect their accounts and records relating to the bid submission and performance of the contract and to have said accounts and records audited by auditors appointed by ADB. The deliberate and material violation by the bidder, supplier, contractor, or subcontractor of such provision may amount to obstructive practice.

37

D. Consultant's Terms of Reference

(I) Design, Supervision, And Capacity Development (Firm)

70. Roughton International Limited (RIL) was recruited by the Government following quality- and cost-based selection procedures to provide design, supervision, and capacity development services (DSCD consultancy contract) for PVUDP on 2 September 2013. Under the negotiated terms of reference, RIL will provide a total of 35 specialists who will comprise the DSCD consulting team as outlined the paragraphs below.

71. A total of 22 international consultants and 13 national consultants will be engaged for a total of 152 person-months of international input and 379 person-months of national input. The international consultants will include (i) a team leader/ project management specialist (35 person-months intermittent inputs); (ii) a municipal road design engineer (7 person-months intermittent inputs); (iii) a traffic management engineer (3 person-months intermittent inputs), (iv); a geotechnical engineer (2 person-months intermittent inputs); (v) a pavement design engineer (3 person-months intermittent inputs); (vi) road maintenance engineer (3 person-months intermittent inputs); (vii) drainage engineer (6 person-months intermittent inputs); (viii) tunnel engineer (4 person-months intermittent inputs); (ix) sanitation/process engineer (8 person-months intermittent inputs); ; (x) financial management specialist (4 person-months intermittent inputs); (xi) procurement/contract specialist (6 person-months intermittent inputs); (xii) institutional development specialist (3 person-months intermittent inputs); (xiii) community awareness and participation specialist (3 person-months intermittent inputs); (xiv) environmental specialist (8 person-months intermittent inputs); (xv) gender specialist (5 person-months intermittent inputs); (xvi) resettlement specialist (4 person-months intermittent inputs); xvii) monitoring and evaluation specialist (5 person-months intermittent inputs); (xviii) a Technical

Officer (IT/CAD) (3 person-months intermittent inputs), (ix) street lighting specialist (2 person-months intermittent); (xx) quantity and cost estimator (3 person-months intermittent), (xxi) resident engineer (20 person-months intermittent); and (xxii) works supervisor (15 person-months).

72. The national consultants will include (i) a deputy team leader (55 person-months full-time inputs); (ii) 3 No. counterpart engineers (33 person-months intermittent inputs); (iii) four (4) No. clerks-of-works/site engineers (total of 121 person-months of full-time inputs); (iv) a community awareness and participation specialist (33 person-months intermittent input); (v) an environmental/resettlement specialist (44 person-months intermittent inputs); ( (vi) institutional development specialist (16 person-months);(vii) technical officer (22 person months); and (viii) adminsitrative assistant/accounting officer (55 person-months full-time inputs).

73. In additional to the above specialists, the consultancy will include the provision of the services of a Port Vila-based non-government organization (NGO) to deliver community awareness and education programs provided under the project to the communities in the greater Port Vila area. The consultancy will also include: (i) topographic and cadastral surveys required for design of the project works; (ii) architectural, structural design, and building services design required for the multi-purpose hygiene facilities and for the refurbishment existing public sanitation facilities as outlined above; and (iii) materials testing and investigations required for the designs and checking quality during construction.

74. The DSCD consultants will report to the Director of VPMU. The DSCD consultants will assist VPMU in delivering the project outputs. Roles of the DSCD consultants will include (but not be limited to):

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(i) Output 1: Improved road network and drainage system in greater Port Vila. Assisting VPMU, PWD, and DEPC to: (i) rehabilitate and improve selected urban roads in Port Vila; (ii) develop and implement a traffic management plan for Greater Port Vila building upon the Vanuatu Traffic and Pedestrian Management Plan; and (iii) provide effective and environmentally sound drainage networks in greater Port Vila including environmental safeguards for the Port Vila Harbour area. A list of the selected roads is provided in Appendix 1.

(ii) Output 2: Improved sanitation system in greater Port Vila. Assisting VPMU, PWD, and DEPC to: (i) design and implement a sludge treatment facility following the recommendations of the Port Vila Drainage and Sanitation Master Plan (2010), and (ii) preparation of regulations and operations procedures for sludge collection and disposal by public agencies and the private sector.

(iii) Output 3: Central area and settlement communities use improved hygiene facilities. Assisting VPMU and DEPE to: (i) design and implement a long-duration (up to 5 years) hygiene awareness and education program focusing primarily on womens groups and school children; (ii) consult with community (mainly through womens groups in villages and peri-urban areas) on suitable sites and design features for hygiene facility, needs and willingness to contribute to hygiene facility capital and operations and maintenance (O&M) costs; (iii) provide up to 10 No. multi-purpose hygiene facilities in villages and settlements with limited access to sanitation facilities; and (iv) refurbish up to 4 No. existing public sanitation facilities in the central business area and at major sporting facilities.

(iv) Output 4: Capacity to effectively and efficiently manage sanitation, roads and drainage systems developed. (i) Design and implement training programs to develop capacity and awareness in (a) hygiene and sanitation, drainage and road development planning and policy including the sanitation policy, building code, public roads act and traffic management act; (b) operations and maintenance (O&M), monitoring, and quality control of urban road networks and sanitation and drainage facilities; (c) contract management under public-private partnership; (d) hygiene and health education for community organizations; and (e) household sanitation improvement with direct involvement and participation of women and youth. (ii) Prepare O&M plans for assets developed through the project in consultation with key stakeholders including key government agencies, the private sector, and other development partners and with due consideration of lessons learned from other projects. (iii) Design and deliver specific training on (a) gender awareness in hygiene and sanitation for government agencies and community and user organizations, and (b) management and maintenance of communal sanitation facilities for women and youth groups as part of the project strategy for local employment generation.

(v) Output 5: Efficient project management services are provided. Assisting the PMU to effectively manage the project including: (i) project administration; (ii) preparation and implementation of a project monitoring and evaluation system; (iii) design and preparation of bid documents, procurement, and contract supervision; (iv) implementation of the gender action plan; (v) ensuring compliance and monitoring of the environmental and resettlement safeguards in accordance with the project documents and ADB’s Safeguard Policy Statement (2009); (vi) project benefit and monitoring and evaluation; and (vii) climate proofing of infrastructure delivered by the project.

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1. Scope of Works

75. Specific tasks of the DSCD consultants will include, but not be limited to:

A. Improved road network and drainage system in greater Port Vila

a. Review of existing documentation.

(i) Review the Report and Recommendations of the President for the Port Vila Urban Development Project and associated linked documents (ADB, 2011), the Port Vila Sanitation and Drainage Master Plan (ADB, 2010), the Vanuatu Traffic and Pedestrian Management Plan: Road Hierarchy Management Plan (Beca International Consultants Ltd, 2012), the Advance Action Program (AAP) – Final Design Report (Egis BCEOM) and associated design drawings [Note that the road and drainage designs prepared under the AAP require substantial revision and have not been accepted by the Client. The revision of the AAP design and documentation is a component of this consultancy contract and may be integrated into other road and drainage rehabilitation works to be designed and implemented under this consultancy contract], the Urban Road Renewal Project Preliminary Design Study (MIPU), and other documents relating to the road and drainage networks in Greater Port Vila. Where appropriate, integrate recommendations of these reports into the design of roads and drainage a focus of improving and ensuring the sustainability of road and drainage networks.

b. Design Standards

(i) Formulate quality criteria for design and construction road and drainage works, footpaths, road furniture (including line marking) and signage, street lighting, equipment, materials and services and the selection of appropriate design standards.

c. Road and drainage rehabilitation and augmentation design

(i) Following the provisions of Section E (b) below, detail designs and prepare bid documents (including specifications and drawings) and cost estimates for the rehabilitation of approximately 22km of urban roads including drainage, footpaths, street lighting, road “furniture” and signage, and relocation of some services (electricity poles, telecommunication pits, etc.). Design submissions for key stakeholder review and comments will be submitted at 70% design completion and at 95% design completion. The design submissions will incorporate design drawings, a design report detailing the standards and basis for the design, and costs estimates based on the design.

(ii) Improvement for pedestrianization of Port Vila will include the construction of new footpaths and repair of existing footpaths providing a continuous safe route to walk, construction of bus stop lay-bys, providing pedestrian crossings at intersections and at strategic locations, and provide appropriate signage to regulate parking and for traffic control. Relocation of utilities, such as electricity poles will be required to ensure footpaths are clear of obstructions. Parking of vehicles on the footpaths is to be prohibited. Works comply with appropriate standards for use by the disabled.

(iii) Prepare detailed design and bid documents of the Project roads in all respect including the geometric design of the road and pavements. It is anticipated that the arterial roads of Port Vila will be asphalt overlaid (using pavement roughness/deflection testing), whilst the residential roads would be reconstructed and chip sealed. Some pavement widening work and reconstruction to correct the

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camber of the road may be required. Concrete pavement at Kalsakau Street and at areas where heavy vehicles turn may be required.

(iv) The design of road pavements shall be undertaken on the basis of forecast traffic volumes over a 20 year period and an analysis of subgrade and existing pavement strengths and conditions as determined by the soils investigation and testing program to be proposed by the DSCD. It is intended to incorporate parts of the existing pavements into the upgraded road when practicable, so a thorough evaluation must be undertaken to assess the bearing capacity of the existing pavements. A factor central to the possible use of the existing asphalt layers in the road pavement of those sections to be retained and upgraded will be the condition, composition and stability of the material, the shape of the surface and its roughness.

(v) Following the provisions of Section E (b) below, design and prepare bid documents (including specifications) and cost estimates to upgrade and augment stormwater drainage systems in 5 flood-prone watersheds with a combined area of about 7 square kilometers. The drainage assets to be provided by PVUDP comprise 25km of pipe drainage (including road stormwater drainage systems), 8km of open drains, and 0.7km of stormwater drainage tunnels (0.6m diameter). The project will install stormwater runoff treatment facilities such as grease and silt traps and gross pollutant traps at strategic locations including marine outfalls. During the detailed design, the extent of environmental impacts will be examined and further appropriate actions will be recommended. Design submissions for key stakeholder review and comments will 70% design completion and at 95% design completion. The design submissions will incorporate design drawings, a design report detailing the standards and basis for the design, and costs estimates based on the design.

d. Greater Port Vila Traffic and Pedestrian Management Plan (Note: the Greater Port Vila Traffic and Pedestrian Management Plan shall be fully coordinated with and complementary to the Vanuatu Traffic and Pedestrian Management Plan)

(i) With reference to the findings and recommendations of the Vanuatu Traffic and Pedestrian Management Plan (VTPMP) review the existing traffic management arrangements and identify constrictions and vehicle and pedestrian conflicts, limited provisions for pedestrians within the greater Port Vila urban road network, including traffic issues associated with Mama’s Market in the main Wharf area and relocation.

(ii) Undertake traffic surveys to determine the traffic volumes and composition (i.e. proportion of heavy vehicular traffic), daily flow traffic flow and circulation patterns including an assessment of local and through traffic volumes, peak traffic periods, and the level of congestion (considering lane capacity, queue lengths, and road utilization).

(iii) Estimate traffic growth high, medium, and low growth scenarios up to the year 2025.

(iv) Design a questionnaire to be distributed to local business houses, offices, institutions, and residences within the study area to assess local perceptions on traffic problems within Port Vila. The questionnaire will be translated into Bislama. Distribute English and Bislama versions of the questionnaire and collect the completed questionnaires. Analyze the responses and prepare a brief report outlining the perceptions of the survey population.

(v) Assess the availability of on- and off-street parking facilities.

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(vi) Review traffic accident histories within the greater Port Vila area occurring within the last 3 years.

(vii) In consultation with the PWD, MIPU, and other key stakeholders, develop the Greater Port Vila Traffic and Pedestrian Management Plan (GPVTPMP). The GPVTPMP will provide structural and non-structural options to relieve current and predicted traffic congestion (up to the Year 2025) and improve road safety and urban amenity. The GPVTMP will provide a program for the implementation of the recommended options and annual budgetary estimates to fully develop, operate, and maintain the GPVTPMP up to the Year 2020.

B. Improved sanitation system in Greater Port Vila

a. Review of existing documentation.

(i) Review the Report and Recommendations of the President for the Port Vila Urban Development Project and associated linked documents (ADB, 2011), the Port Vila Sanitation and Drainage Master Plan (ADB, 2010) and other documents relating to the provision of sanitation services in the greater Port Vila including relevant legislation, policies, and regulations of the Government and the Port Vila Municipal Council. Where appropriate, integrate recommendations of these reports into the design of the project sanitation components focusing on improving the quality and sustainability of sanitation services in the greater Port Vila area.

b. Sludge treatment facility.

(i) In consultation with key stakeholders, identify and confirm the location of the sludge treatment facility.

(ii) Identify and assess options for the procurement of the sludge treatment facility and the operation of the plant following commissioning. The options shall include, but not be limited to, (a) conventional supply, install, and commission contract; (b) design, supply, install, and commission contract; (c) design, supply, install, commission, and plant operations management for a period of not less than 5 years (management personnel to be provided by the Contractor, all other personnel to be provided by the Government); (d) design, supply, install, commission, and operate for a period of not less than 5 years; and (e) design, supply, install, commission, and operate for a period of not less than 20 years under a concession agreement and with contractor equity in the capital costs.

(iii) Prepare a sludge treatment facility procurement and operations options paper for consideration of key stakeholders incorporating: (a) details and the benefits of the options assessed, (b) a preliminary assessment of the capital and life-cycle costs of the sludge treatment facility (assuming a 20-year design life) and the estimated cost on an annual-basis incurred by the Government for the construction and operation of the plant over the design life of the facility; (c) for options involving identify private sector participation in the operation of the facility, identify options for price and technical regulation (either through project specific contractual provisions or through legislation); and (d) recommendations.

(iv) Consult with and address queries relating to procurement and operation options for the facility with stakeholders throughout the greater Port Vila area. Subject to the approval of the VPMU, ensure that on options for procurement and operation of the facility is disseminated to the residents of greater Port Vila through advertisements in the local media and through community and focus group meetings. Prepare a report detailing views expressed by the residents of Greater

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Port Vila on the procurement and operation options for the proposed facility for consideration by key stakeholders.

(v) Following the receipt of a notice from VPMU on the preferred option for procurement and operation of the facility, prepare bidding documents in accordance with the provisions of Section E (b) (below).

c. Sludge treatment collection and treatment regulations and procedures.

(i) Review the existing regulatory provisions for sanitation and sanitation services applicable in the greater Port Vila area and identify gaps and conflicting provisions and responsibilities in the regulatory provisions.

(ii) In consultation with key stakeholders, determine appropriate standards, service levels and procedures for septic tank sludge collection and treatment.

(iii) Identify and assess opportunities through regulation to enhance the quality, affordability, and financial and technical sustainability of sludge collection and treatment services.

(iv) Prepare a briefing note for the PSC: (a) recommending proposed standards, service levels, and procedures for septic tank sludge collection and treatment; and (b) evaluating opportunities through regulation to enhance the quality, affordability, and financial and technical sustainability of sludge collection and treatment services.

(v) Upon endorsement of the briefing note, prepare regulations and document procedures for sludge collection and treatment. Disseminate the draft regulations and procedures for review by key stakeholders. Stakeholder comments and suggestions, where appropriate, shall be incorporated into the final revision of the draft regulations and procedures.

(vi) Assist the various responsible Government agencies to obtain Council of Ministers and parliamentary approval of the regulations and procedures including conducting stakeholder consultations.

C. Central area and settlement communities use improved hygiene facilities

a. Hygiene awareness and education program

(i) In consultation with government agencies (particularly the Ministry of Health), NGOs, and civil society organizations, identify and assess the coverage, approach, and effectiveness of on-going and recently completed (within the past 5 years) hygiene awareness and education programs conducted in the greater Port Vila area. Identify gaps and weaknesses in those programs and opportunities to enhance community awareness of hygiene issues and to foster the behavioral changes required for sustained improved hygiene.

(ii) Design a hygiene awareness and education program to be delivered in the greater Port Vila area over a period of 4 years. The program will be delivered by a Port Vila-based NGO which will be recruited, managed and paid by the DSCD consultants. The program, while targeting the broader Port Vila community, will pay particular attention to delivery of health and hygiene information and children and youth (possibly through schools and youth groups) and to women (potentially through womens groups). Prepare a briefing note, for endorsement by the PSC, detailing the proposed program and implementation schedule.

(iii) Upon receipt of the PCS endorsement of the hygiene awareness and education program, implement the program.

(iv) Prepare monthly reports on hygiene awareness activities (to be incorporated into monthly DSCD consultant reports) detailing, but not limited to,: (i) activities

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conducted during the previous month and persons involved in those activities; (ii) issues raised by stakeholders; (iii) suggested changes to enhance the program design; (iv) program risks; and (v) activities proposed over the coming month.

b. Multi-purpose community sanitation and hygiene facilities.

(i) Consult with communities in villages and settlements in the Port Vila peri-urban area on suitable sites and features of multi-purpose community sanitation and hygiene facilities, paying particular attention to the needs of women. The consultations will include discussions on the willingness of the community to contribute towards capital and operations and O&M costs of such facilities.

(ii) Prepare a prioritized list, for endorsement by the PSC, of potential sites for multi-purpose community sanitation and hygiene facilities based on need, maximizing the number of beneficiaries, and the willing of the community to contribute to the O&M costs.

(iii) Upon receipt of the PCS endorsement of the prioritized list of potential sites for multi-purpose community sanitation and hygiene facilities prepare bidding documents for up to 10 such facilities following the provisions of Section E (b) (below). The facilities will be designed to incorporate features identified by the communities and address the specific needs of women.

c. Refurbishment of public sanitation facilities.

(i) In consultation with key stakeholders and following a review of existing public sanitation facilities identified in the Port Vila Drainage and Sanitation master Plan proposed, prepare a prioritized list of existing public sanitation facilities located in the central business area or at major sporting venues within the greater Port Vila area requiring refurbishment.

(ii) Upon receipt of the PCS endorsement of the prioritized list of existing public sanitation facilities requiring refurbishment prepare bidding documents for the refurbishment of up to 4 public sanitation facilities in accordance with the provisions of Section E (b) (below). The refurbishment will incorporate features that address the specific needs of women.

D. Capacity to effectively and efficiently manage sanitation, roads and drainage systems developed

a. Capacity Development and awareness of Government policies and statutory requirements.

(i) In consultation with VPMU, MIPU, PWD, DEPC, prepare a communications plan, for the consideration of the PSC, identifying target audiences (including Government agencies, civil society groups, NGOs, the private sector, the wider community) and suitable modes such as workshops, community and focus group meetings, media releases etc. to increase awareness of; (a) the Government’s sanitation policies; (b) the Building Code (currently being prepared); (c) the Public Roads Act (currently being prepared); and (d) the Traffic Management Act (currently being prepared). Following the endorsement of the communications plan by PSC, implement the communications plan.

(ii) Design and implement formal and in-service training programs to PWD, MIPU, and DEPC personnel on municipal road maintenance including (but not limited to): (a) monitoring and evaluation of pavement condition, (b) urban road design standards, (c) design of minor road rehabilitation works, and (d) quality control of road rehabilitation works.

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(iii) Design and implement formal and in-service training programs to PWD, MIPU, and DEPC personnel on drainage system maintenance including (but not limited to): (a) monitoring and evaluation of drainage system performance and condition, (b) drainage design standards, (c) design of drainage system rehabilitation works, and (d) quality control of drainage system rehabilitation works.

(iv) Design and implement formal and in-service training programs to PWD, MIPU, and DEPC personnel on monitoring and evaluation of on-site sanitation system performance and condition, (b) on-site sanitation design standards and statutory approval/consenting requirements, and (c) monitoring and quality control of on-site sanitation facilities during construction.

(v) Design and implement and formal and in-service training programs to PWD, MIPU, and DEPC personnel in the management of outsourcing and management contracts covering road maintenance and maintenance of sanitation assets, and sanitation facilities management and services contracts.

(vi) Design and implement training programs for civil society organizations (at least 5 number), particularly womens and youth groups, on the construction and maintenance of improved household sanitation facilities.

(vii) Design and implement training programs for civil society organizations (at least 3 number), particularly womens and youth groups, on the management and maintenance of communal sanitation facilities.

b. O&M Plans

(i) In consultation with key stakeholders, including the private sector, prepare O&M plans for all assets developed under the project. The O&M plans will, at minimum, cover: (i) a description of asset, including a full list of components / parts, and intended purpose; (ii) comprehensive procedures for effective and safe operation of the asset; (iii) planned maintenance procedures and schedule for the assumed asset life (20 years); (iv) safety procedures; (v) procedures for emergency repairs; (vi) parts to be kept in stock to enable emergency repairs; and (vii) estimate cost to fully operate and maintain the asset for each year of the asset design life.

c. Gender Awareness and Consultation with Womens Groups

(i) With reference to the project’s Gender Action Plan and the Gender and Community Participation Report (ADB, November 2012), design and implement training programs to government agencies (including, but not limited to VPMU, MPIU, PWD, DEPC) and civil society/community organizations (at least 5 number) on gender issues relating to sanitation and hygiene and the need to ensure that design of sanitation facilities incorporate features that fully meet the needs of women.

(ii) In consultation with key stakeholders, establish and capture gender-sensitive indicators. The gender-sensitive indicators should, at minimum, include the indicators provided in the Gender and Community Participation Report (ADB, November 2012).

(iii) Consult with formal and informal womens groups/associations on aspects of the project particularly proposed project activities which directly impact on livelihood activities of women (e.g. the Mamas Market). Prepare summary reports listing the persons consulted and outlining the views expressed at each consultation meeting for submission to VPMU. Where possible, incorporate the views of women into the design of project outputs.

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E. Assist the PMU to effectively manage the project a. Project Administration and Monitoring (i) In consultation with the key project stakeholders, prepare the projects monitoring

and evaluation and performance evaluation frameworks in accordance with AusAID’s Performance Assessment and Evaluation Policy (http://www.ausaid.gov.au/ode/pdf/ME_guidance.pdf). The PEF will be finalized shall be finalized within 3 months of the fielding of the DSCD consultants and shall be aligned with the project’s design and monitoring framework and shall include, at minimum, a monitoring and evaluation framework (MEF), an implementation schedule, and a risk matrix. Identify and obtain the endorsement of key stakeholders of appropriate indicators for inclusion in the MEF.

(ii) Review and update the Project Administration Manual (PAM) including, but not limited to, the project implementation schedule and the project procurement plan within 3 months of initial fielding of the DSCD consultants and thereafter annually. Copies of the updated PAM shall be provided to (i) VPMU, (ii) AusAID resident representatives in Vanuatu including the Governance for Growth Program personnel, and (iii) the ADB project officer.

(iii) Establish and maintain separate project accounts and records by funding source for all expenditures incurred on the project. Project accounts will follow international accounting principles and practices. Note that the Ministry of Finance and Economic Management will also maintain separate accounts for the project. The project accounts will be audited annually by an external auditor appointed by the Ministry of Finance and Economic Management.

(iv) Prepare draft Grant withdrawal applications for the payment of eligible project costs. Submit the draft withdrawal applications to the Ministry of Finance and Economic Management for verification and sign-off by authorized signatories.

(v) Facilitate and monitor the implementation of the gender action plan (GAP) including ensuring that the gender employment targets outlined in the GAP are achieved.

(vi) Provide other services to VPMU as necessary to deliver the project. (vii) Ensure all contractors and consultants comply with the laws of Vanuatu, the

AusAID’s Child Protection Policy (2009), ADB’s Safeguard Policy Statement, and ADB’s Anticorruption Policy.15

(viii) Assist in staff training and environmental compliance during project implementation.

(ix) Provide orientation for VPMU and DEPC personnel on safeguard measures, including implementation of the Environmental Management Plans (EMP) and Resettlement Plans (RPs).

(x) Provide training for VPMU and DEPC staff responsible for designing and implementing safeguard measures.

(xi) Assist with subproject staff training to ensure that environmental and social measures are well understood and implemented effectively.

(xii) In consultation with the Director of VPMU, prepare: (i) quarterly progress reports in a format consistent to be agreed by VPMU and ADB; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan, and (d) updated implementation plan for the next 12

15 See http://www.ausaid.gov.au/publications/pdf/child_protection.pdf;

http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf ; http://beta.adb.org/documents/anticorruption-and-integrity-policies-and-strategies

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months quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project.

(xiii) Assist the project manager in the preparation of the project completion report satisfactory to Government of Vanuatu and ADB, and ensure as-built data, such as as-built drawings, equipment operations and maintenance manual, and guarantees, are collected and collated at the completion of each subproject.

b. Design and Contract Administration

(i) Drawing on published data for Vanuatu, identify the climate change challenges facing Vanuatu and ensure that the predicted climate change impacts are incorporated in the design of infrastructure to be developed under the project to maximize the climate change resilience while maintaining the economic feasibility of the infrastructure to be developed.

(ii) Identify information required and organize for surveys and capture of all data necessary for the preparation of bid documents for the project’s road, drainage, and sanitation components, including (but not limited to) topographic and cadastral data, geotechnical conditions and geotechnical design parameters, quality and strength of existing road pavements for road identified for rehabilitation, and the location of existing services that may be affected by the works.

(iii) Prepare and complete technical designs, including bills of quantities, provision of detailed cost estimates and scopes of work for subprojects. Road, footpath, and sanitation facility designs will incorporate features to improve accessibility by the disabled in accordance with Accessibility Design Guide: Universal design principles for Australia’s aid program.16

(iv) Assist VPMU prepare specifications for the purchase of equipment and materials. (v) Prepare draft bidding documents for subprojects following ADB’s procurement

procedures and using standard bidding documents and guidelines. Submit the draft bid documents to the PMU and ADB for review and update the bid documents in response to comments and suggestions provided by the PWD, VPMU, AusAID and ADB.

(vi) Ensure that subproject-specific environmental, gender, and social mitigation measures are incorporated into contract documents and comply with the laws of Vanuatu and ADB’s Safeguard Policy Statement (2009).

(vii) Assist VPMU to procure goods, works, and consultancies in accordance with ADB Procurement Guidelines (April 2010 and as updated from time to time) and Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers (2013 and as updated from time to time). The following Table provides an indicative list of all procurement (excluding this consultancy) over the life of the project.

(viii) Evaluate bids and prepare bid evaluation reports including recommendations for contract awards.

(ix) Prepare the necessary documentation for contract signing and contractor mobilization.

16 http://www.ausaid.gov.au/publications/Pages/accessibilty-design-guide.aspx

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(x) Prepare construction schedules, and provide overall supervision of construction and quality control on works.

(xi) Administer subproject contracts including processing of progress certificates, review of extension of time claims, preparation of change orders and non-conformance notices, subproject implementation progress monitoring, and subproject cost monitoring.

(xii) Provide effective and regular supervision of the works. Supervise quality control tests to ensure that the works are executed in accordance with established standards, criteria, specifications, procedures, and approved design and environmental aspects in compliance with the environmental management and monitoring plan and the construction schedule.

(xiii) Review the design and construct contractor’s drawings and calculations to check arrangements for optimized operation and maintenance and verify compliance with contract specifications.

(xiv) Assist in observation and testing of materials and equipment. (xv) Supervise and evaluate the implementation of environmental mitigation and

monitoring measures as specified in the environmental management plan (EMP). This includes undertaking the environmental monitoring audits as prescribed.

(xvi) Review the equipment manufacturers’ drawings and calculations to check arrangements for optimized operation and maintenance and verify compliance with contract specifications.

(xvii) Review the procurement and delivery program for each supply contract financed under the project to ensure compatibility and timely coordination with other contracts and civil works.

(xviii) Develop and implement applicable procedures required to ensure adequate control of manufacturing, factory tests, delivery, and acceptance of materials and equipment. Assist with the unpacking and checking of the materials and equipment, follow up on the delivery of delayed components, and make claims.

(xix) Help review proposals for equipment commissioning tests and trial operation plans.

(xx) Respond to contractor requests for information in all matters related to interpreting contract documents, ground survey controls, quality control testing, and other matters relating to the contract under the project.

(xxi) Maintain a permanent record of all quantities for payment and test results. (xxii) Identify potential risks to the Government of Vanuatu in the implementation of

contracts, including cost over-runs, delays, and non-conformance with project specifications.

(xxiii) Where necessary, coordinate design changes to achieve to-time and to-budget subproject delivery. Prepare change orders, and assist the project manager to negotiate with the contractor to implement the changes.

(xxiv) Update the EMP as necessary, including carrying out supplemental environmental assessments for additional subprojects appraised after grant approval

(xxv) Manage any possible conflicts which may arise with other projects being carried out during the PVUDP (i.e. ADB Interisland Shipping Support Project, JICA International Wharf Development Project and Vanuatu Tourism Infrastructure Project).

(xxvi) Monitor and supervise resettlement and other social impact mitigation activities, as defined in the resettlement plan (RP).

(xxvii) Update RP in accordance with ADB’s Safeguard Policy Statement.

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2. Specialist Qualifications and Experience

76. The qualifications and experience required for each of the specialist to be provided by the consulting firm are outlined below:

International Consultants

a. Team Leader/Project Management Specialist(35 person-months) The Team Leader/Project Management Specialist will have a degree in civil engineering and have at least 15 years demonstrated experience in planning, designing and implementing urban infrastructure projects including at least 10 years in planning, designing and implementing urban infrastructure projects including roads and stormwater drainage. Knowledge of ADB procurement and reporting procedures and small developing nation experience is essential. The Team Leader/Municipal Engineer must also have at 10 years demonstrated experience in managing multi-disciplinary teams. The Team Leader/Project Management Specialist will be responsible for ensuring satisfactory performance of the DSCD and the day to day management of the Project. The Team Leader/Project Management Specialist will finalize the detail design reports and bid documents, carryout contract administration and construction supervision of subprojects, conduct trainings and capacity building to key stakeholders and report project progress to the Director of VPMU.

b. Road Design Engineer (7 person-months) The Road Design Engineer will be a civil engineer with qualifications from a recognized university and at least 10 years of experience in the design of municipal roads including experience in small developing countries, preferably in the Pacific. The Road Design Engineer shall report to the Team Leader/Project Management Specialist and will be responsible for the design and implementation of the project’s road components.

c. Traffic Engineer (3 person-months, intermittent) The Traffic Engineer will be a civil engineer with qualifications from a recognized university and at least 10 years of demonstrated experience in the traffic analysis, traffic growth projections, preparation of traffic management plans, and implementation of traffic management plans. The Traffic Engineer shall report to the Team Leader/Project Management Specialist and will be responsible for the preparation of the Greater Port Vila Traffic and Pedestrian Management Plan. This will include improving traffic management and traffic rules enforcement for Port Vila, assess and recommend traffic regulations and enforcement penalties, revise and assess parking policies and assist the Police and PVMC in enforcing them, assist the Road Design Engineer in the design and implementation of intersection improvements, design and implementation of pedestrian routes and related traffic management improvements, assist the Community Awareness and Participation Specialist in designing public awareness campaigns for pedestrianization and stakeholders in footpath improvements, identify locations for all bus stops, lay-bys, and bus terminals, assist in starting the reform process of public transport by introducing new policy, regulations and procedures. The position will also assist in the programming of construction of works as well as contract packaging for such works.

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d. Geotechnical/Materials Engineer (2 person-months, intermittent) The Geotechnical/Materials Engineer will be a civil engineer with qualifications from a recognized university and at least 10 years of demonstrated experience in the soil sampling and testing, analysis of soils and derivation of engineering properties of soils for the design of roads and structures, management of geotechnical surveys, and the preparation of geotechnical reports. The Geotechnical Engineer shall report to the Team Leader/Project Management Specialist and will be responsible for the provision of geotechnical data required for the design and implementation of the project including the review of designs, specifications, materials requirements, construction methods and the establishment of asphalt and quarrying plant construction and operations.

e. Pavement Design Engineer (3 person-months, intermittent) The Pavement Design Engineer will be a civil engineer with qualifications from a recognized university and at least 10 years of demonstrated experience in the design and analysis of flexible and rigid road pavements, including experience in small developing nations. The Pavement Design Engineer shall report to the Team Leader/Project Management Specialist and will be responsible for the design of rigid and flexible pavements required for the Project.

f. Road Maintenance Engineer (3 person-months, intermittent) The Road Maintenance Engineer will be a civil engineer with qualifications from a recognized university and at least 15 years of demonstrated experience in the design and implementation of maintenance programs for urban roads. Experience in the preparation and administration of small road maintenance contracts will be positively viewed. The Road Maintenance Engineer shall report to the Team Leader/Project Management Specialist and will be responsible for the preparation of road operations and maintenance plans and the design and implementation of training programs on design, monitoring and quality control of municipal road maintenance projects.

g. Drainage Engineer (6 person-months, intermittent) The Drainage Engineer will be a civil or environmental engineer with qualifications from a recognized university and at least 10 years demonstrated experience in the planning, design and implementation of urban flood mitigation and drainage schemes and road drainage networks in developing nations involving local and trunk drainage systems. The Drainage Engineer shall report to the Team Leader/Project Management Specialist and will be responsible for the design of the drainage components of the project including the preparation of a drainage maintenance plan for MIPU, PWD, and DEC. h. Tunnel Engineer (4 person-months, intermittent) The Tunnel Engineer will be a civil or mining engineer with qualifications from a recognized university and at least 10 years demonstrated experience in the design and construction of small bore tunnels. The Tunnel Engineer shall report to the Team Leader/Project Management Specialist and will be responsible for the design of tunnels. i. Sanitation/Process Engineer (8 person-months, intermittent) The Sanitation/Process Engineer will have a degree in civil or environmental engineering from a recognized university and more than 10 years demonstrated experience in sanitation engineering, including experience gained in small island nations and or small developing nations. This experience must include planning and design of on-site sewage treatment and associated septic tank sludge / septage collection and treatment systems. Experience in the preparation of regulations for on-site sewage systems, septage

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collection and treatment will be considered favorably. Pacific island experience is preferred. The Sanitation/Process Engineer reports to the Team Leader/Project Management Specialist and will be responsible for the design of the project’s sanitation components and processes, preparation of O&M plans for the sanitation systems, preparation of regulations for the septage collection and treatment, and the design and implementation of training programs on design, management and maintenance of community and household sanitation facilities. j. Street Lighting Specialist (2 person-months, intermittent) The Street Lighting Specialist will have a degree in electrical engineering from a recognized university and more than 10 years demonstrated experience in design of street lighting schemes and associated facilities. The street Lighting Specialist will report to the Team Leader/Project Management Specialist and will be responsible to prepare a design with drawings, cost estimates, specifications for improvements of lighting quality, available technologies, international norms, decrease in costs and also reduction in greenhouse gas emissions and identify the options best suited for the local and tourist context along the main road of the Town Area of Port Vila. The Street Lighting Specialist will prepare a design considering the most appropriate, cost-effective energy-efficient solutions taking into consideration wider issues such as operation and maintenance, safety, tariffs, the types of areas to be lit, highlight the downtown area of Port Vila as a tourist area with permanent festive lighting and appropriate lighting standards. k. Quantity and Cost Estimator (3 person-months, intermittent) The Quantity and Cost Estimator will be Civil Engineering graduate with minimum 10 year experience/Diploma in civil engineering with 15 year experience in estimation, preparation of BOQ and normal procurement procedures.. The priority task of the Quantity and Cost Estimator under the direction of the Team Leader/Project Management Specialist and working with the other design engineers/specialists (i.e. Road Design Engineer, Drainage Engineer, Tunnel Engineer, Sanitation/Process Engineer, Street Lighting Specialist and the Procurement/Contracts Specialist) shall finalize BOQ, cost estimates and bid document for each subproject. l. Resident Engineer (20 person months) The Resident Engineer shall be a Civil Engineering graduate with minimum 20 year experience in Construction Management, Supervision and Quality control of projects related to road, drainage and building works. The Resident Engineer is to act as the Engineer’s representative as delegated by the Team Leader/Project Management Specialist and shall be responsible for construction supervision of all subprojects. The Resident Engineer shall ensure all technical and administrative clearances required by the constructing agencies which otherwise could result in delaying the sub projects. The Resident Engineer shall establish proper quality assurance systems as per international best practices and procedures. The Resident Engineer shall ensure compliance of the contract agreement in letter and spirit by observing strict vigilance to avoid any possibility of time and budget overrun m. Works Supervisor (15 person months) The Works Supervisor shall have a minimum 15 years’ experience in Construction Management, Supervision and Quality control of projects related to road, drainage and

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building works. Possession of Trade Certificates in Building, Civil and Drainage works, and licences/certificates in the operation of heavy plant and equipment are required. The Works Supervisor shall be responsible to oversee the implementation of works and monitoring progress of works and ensuring the works are carried out in accordance with the contract, specifications, drawings and project plans. The Works Supervisor will visit the project sites on a daily basis in order to identify any problems and provide appropriate solutions through application of sound engineering standards in consultation with the Resident Engineer and / or the Team Leader/Project Management Specialist. The Works Supervisor shall undertake measurement of works in support of contractor claims for payment and supervise the Clerk of Works/Site Engineers (National) assigned to the Project and monitoring their performance.

n. Financial Management Specialist (4 person-months, intermittent) The Financial Management Specialist will have a professional accountancy designation. The consultant will have at least 10 years experience in preparing project financial analysis and undertaking financial performance assessments of service utilities, preferably in the Pacific Region. The Financial Management Specialist will report directly to the Team Leader/Project Management Specialist and will be responsible: for (i) design and implement management information and financial management system training programs for MIPU, PWD, and VPMU; (ii) identification and assessment of options to finance O&M for roads, drainage, and sanitation facilities developed under the project; (iii) consultation with key stakeholders and assessment of the feasibility of implementing road and sanitation O&M cost recovery mechanisms; and (iv) preparation of a report on options to finance O&M for roads, drainage, and sanitation facilities developed under the project including recommendations. o. Procurement/Contracts Specialist (6 person-months, intermittent) The Procurement/Contracts Specialist will be a qualified engineer or quantity surveyor or procurement specialist with extensive demonstrated knowledge of procurement systems and processes. Knowledge of ADB’s procurement guidelines is essential. The procurement/contracts specialist will have at least 15 years experience of procurement experience, preferably in the Pacific Region. The Procurement/Contracts Specialist will report to the Team Leader/Project Management Specialist. Responsibilities of the Procurement/Contract Specialist will include: (i) assisting in the preparation of bid documents, particularly in relation to the conditions for bidding and the conditions of contract; (ii) assisting in the bidding process including preparation and dissemination of invitations to bid (in accordance with ADB procurement guidelines); (iii) assist in the addressing bidder queries; (iv) evaluation of bids; (v) preparation of bid evaluation reports for consideration by the bid evaluation committee (in accordance with Vanuatu’s statutory public procurement requirements and ADB procurement guidelines); (vi) assessment of the procurement and contract management capacity within VPMU, MIPU, DEPC, and PVMC; (vii) design and implement comprehensive and short procurement and contract management training programs for VPMU, MIPU, DEPC, and PVMC (where possible draw upon existing training programs); (viii) identification and assessment potential areas for private sector participation (PSP) in O&M of project's sanitation facilities; and (ix) Develop PSP O&M framework. p. Institutional Development Specialist (3 person-months, intermittent) The Institutional Development Specialist will have tertiary qualifications in public management, engineering, law, or public finance and will have at least 10 years experience in diagnostic analysis and assessment of public agencies responsible for the

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development and provision of municipal services, preferably in developing nations. The Institutional Development Specialist will report to the Team Leader/Project Management Specialist. Responsibilities of the Institutional Development specialist will include: (i) assessment of the MIPU, PWD, and DEPC personnel structure; (ii) assessment of the training needs of MIPU and PWD personnel to sustainably plan, design, and manage road and drainage assets; and (iii) design training programs (in-house or external) to build MIPU and PWD capacity. The Institutional Development specialist will liaise and consult with the Vanuatu Transport Sector Support Program 2 human resources consultant in assessing the MIPU and PWD personnel structure and training needs, and designing of MIPU and PWD training programs. q. Community Awareness and Participation Specialist (3 person-months,

intermittent) The community awareness and participation specialist will have qualifications in a relevant social science discipline and at least 10 years experience in the design and implementation of consultative processes for development projects. The community awareness and participation specialist will report to the Team Leader/Project Management Specialist and will be responsible for: (i) design and implementation of the hygiene awareness and education program; and (ii) assist in consultations with womens groups in villages and peri-urban settlements on suitable sites and design features for hygiene facility, needs and willingness to contribute to hygiene facility CAPEX and O&M costs and analysis of information obtained during the consultations. r. Environmental Specialist (8 person-months- intermittent) The Environmental Specialist will have academic qualifications in environmental science or closely related fields, and a minimum of 10 years experience in the environmental assessments and the preparation of environmental impact assessments for small urban infrastructure projects in developing nations. Demonstrated experience in the training national personnel in the assessment of environmental impacts is essential. The Environmental Specialist will be responsible for: (i) updating initial environmental evaluations (IEEs) and EIAs; (ii) monitoring the implementation of environmental monitoring plans (EMPs) for project construction activities; (iii) assisting DEPC to design and implement a community awareness program on impacts of current sanitation and drainage practices in the greater Port Vila area and the need to improve environmental conditions and standards in Port Vila; and (iv) assist DEPC to monitor compliance with sewerage and sludge regulations (prepared under the project). The Environmental Specialist shall report to Team Leader/Project Management Specialist. s. Gender Specialist (5 person-months- intermittent) The Gender Specialist will have academic qualifications in environmental science or closely related fields, and a minimum of 10 years experience in the design and implementation of gender awareness and gender equality programs. The Gender Specialist shall report to Team Leader/Project Management Specialist. The Gender Specialist will be responsible for: (i) designing the project’s gender awareness program (based on project gender action plan (GAP) and gender framework); (ii) design and implement gender awareness training programs within PWD, MIPU, DEPC, PVMC, and with NGO’s and civil society organizations involved in the project's sanitation activities; and (iii) facilitate implementation of the GAP.

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t. Resettlement Specialist (4 person-months- intermittent) The Resettlement Specialist will have a master’s degree in social sciences or related fields, at least 10 years experience in resettlement and participatory planning and implementation, excellent management and communication skills, and have in-depth knowledge and experience with ADB’s safeguard policies and requirements. The Resettlement Specialist will report directly to the Team Leader/Project Management Specialist and will be responsible for the preparation of land acquisition and resettlement plans and a land acquisition and resettlement framework and will supervise the National Resettlement Specialist. u. Monitoring and Evaluation Specialist (5 person-months- intermittent) The Monitoring and Evaluation Specialist will have a master’s degree in economics, or international development or related fields, at least 10 years experience in design and implementation of results-based monitoring and evaluation systems. The Monitoring and Evaluation Specialist will report to the Team Leader/Project Management Specialist and will be responsible for (i) the preparation of the project monitoring and evaluation framework; (ii) monitoring of project outcomes including preparation of annual results monitoring reports over the first 3 years of project implementation; and (iii) provision of inputs to refine the project design and monitoring indicators during the project mid-term review tentatively scheduled for mid-2015. v. GIS/CAD Specialist (3 person-months- intermittent) The GIS/CAD Specialist will have formal qualifications in graphical information system (GIS) databases and computer-aided design (CAD) at least 5 years experience in development of GIS databases and CAD drafting. The GIS/CAD Specialist will report to the Team Leader/Project Management Specialist and will be responsible for (i) establishing the drafting standards to be adopted for the project; (ii) establishing the GIS and CAD bases for the project; (iii) mentoring (and where necessary training) of the National GIS/CAD Specialist; and (iv) production and quality control of the project design drawings. National Consultants

a. Deputy Team Leader (55 person-months, full time) The Deputy Team Leader will be a civil engineer with a minimum of 10 years experience in managing the design and implementation of infrastructure projects. Professional experience obtained outside of Vanuatu (e.g. US, New Zealand or Australia) will be considered favorably. The Deputy Team Leader will report to and assist the Team Leader/Project Management Specialist with the day to day management of the Project and for contract administration and construction supervision of subprojects, including the coordination and management of the relocation of public utility services. It is intended that the Deputy Team Leader will assume the position of Team Leader/Project Management Specialist during the maintenance liability period. b. Counterpart Engineers (33 person-months, intermittent) The Counterpart Engineers (National) will be civil engineers with qualifications from a recognized university and at least 5 years of experience in the design and construction of roads. Experience obtained outside of Vanuatu will be considered favorably. The Counterpart Engineers (National) shall assist the Road Design Engineer (International), the Tunnel Engineer, the Sanitation/Process Engineer, the Drainage Engineer, the

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Traffic Engineer, and the Pavement Design Engineer to design the project’s road and other components. The Counterpart Engineers (National) report to the Team Leader/Project Management Specialist. c. Clerks-of-Works/Site Engineers (4 No;, 121 person-months, intermittent total

inputs) The Clerks-of-Works/Site Engineers will have at least 10 years demonstrated experience in supervision of road and / or drainage and / or large building construction. The Clerks-of-Works/Site Engineers shall assist the Team Leader/Project Management Specialist to monitor the project’s construction activities and to administer construction contracts. The Clerks-of-Works/Site Engineers will report to the Team Leader/Project Management Specialist d. Community Awareness and Participation Specialist (33 person-months,

intermittent) The Community Awareness and Participation Specialist (National) will have qualifications in a relevant social science discipline and at least 5 years experience in the design and implementation of consultative processes for development projects. The Community Awareness and Participation Specialist (National) will report to the Team Leader/Project Management Specialist. The Community Awareness and Participation Specialist (National) will assist the Community Awareness and Participation Specialist (International) to: (i) design and implementation of the hygiene awareness and education program; and (ii) consult with womens groups in villages and peri-urban settlements on suitable sites and design features for hygiene facility, needs and willingness to contribute to hygiene facility CAPEX and O&M costs and analysis of information obtained during the consultations. The Community Awareness and Participation Specialist (National) will lead other project community awareness and education activities including the management of the NGO recruited by the DSCD Consultants to deliver community awareness and education programs provided under the project to the communities in the greater Port Vila area. e. Environmental/Resettlement Specialist (44 person-months, intermittent) The Environmental/Resettlement Specialist (National) will have academic qualifications in environmental science or closely related fields, and a minimum of 5 years experience in the environmental assessments and the preparation of environmental impact assessments. The Environmental/Resettlement Specialist (National) will assist the Environmental Specialist (International) in: (i) updating initial environmental evaluations (IEEs) and EIAs; (ii) monitoring the implementation of environmental monitoring plans (EMPs) for project construction activities; (iii) assisting DEPC to design and implement a community awareness program on impacts of current sanitation and drainage practices in the greater Port Vila area and the need to improve environmental conditions and standards in Port Vila; and (iv) assist DEPC to monitor compliance with sewerage and sludge regulations (prepared under the project). The national Environmental/Resettlement Specialist shall take the lead role in the project’s environmental activities approximately 3 years after the commencement of the DSCD consultancy. The Environmental Specialist shall report to Team Leader/Project Management Specialist.

f. Institutional Development Specialist (16 person-months, intermittent) The Institutional Development Specialist (national) will have tertiary qualifications in a relevant discipline and at least 5 years experience in diagnostic analysis and

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assessment of public agencies responsible for the development and provision of municipal services,. The Institutional Development Specialist will report to the Team Leader/Project Management Specialist. Responsibilities of the institutional development specialist will include assisting the international Institutional Development Specialist in carrying out the following: (i) an assessment of the MIPU, PWD, and DEPC personnel structure; (ii) an assessment of the training needs of MIPU and PWD personnel to sustainably plan, design, and manage road and drainage assets; and (iii) design training programs (in-house or external) to build MIPU and PWD capacity.

g. Technical Officer (IT/CAD) (22 person-months- intermittent) The Technical Officer (IT/CAD) (National) will have formal qualifications in graphical information system (GIS) databases and computer-aided design (CAD) at least 3 years experience in development of GIS databases and CAD drafting. The Technical Officer (IT/CAD) will assist the GIS/CAD Specialist (International) to (i) establish the GIS and CAD bases for the project; (ii) production of the project design drawings. The Technical Officer (IT/CAD) (National) shall report to Team Leader/Project Management Specialist.

h. Office Assistant/Accounting Officer (55 person-months, full time) The Office Assistant/Accounting Officer will provide general office administration and reception duties will be responsible for maintaining the project accounts under the guidance of the Team Leader/Municipal Engineer. Demonstrated book keeping experience is essential. The Office Assistant/Accounting Officer will report to the Team Leader/Municipal and Contract Administration Engineer. 3. Reporting requirements

77. The project reporting requirements are tabled below and will provide the basis for progress payments.

Report Submission Date

Inception Report Week 6 1

Project monitoring and evaluation framework Week 12 1

Quarterly progress reports Within 4 weeks after each quarter

First update of project administration manual2 Week 16 1

Second update of project administration manual2 31 January 2014

Third update of project administration manual2 31 January 2015

Fourth update of project administration manual2 31 January 2016

Fifth update of project administration manual2 31 January 2017

2013 Consolidated annual report 31 January 2014

2014 Consolidated annual report 31 January 2015

2015 Consolidated annual report 31 January 2016

2016 Consolidated annual report 31 January 2017

2017 Consolidated annual report 31 January 2018

Project design reports As appropriate

Working papers and presentations as specified from time-to-time by the Director VPMU.

As appropriate

Notes: 1 Relative to consultancy contract commencement date.

2 Including updated procurement plan and updated implementation plan for the next 12 months.

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4. Office Space

78. VPMU, MIPU, and DEPC have limited office space and cannot guarantee office space will be available for the specialists provided under this consultancy. The consulting firm will therefore be responsible for providing office space and office furniture for the specialists it provides through this consultancy. The costs of establishing and operating an office, including all utilities and communications, will be included in the consultant’s financial proposal.

5. Current Status.

79. The DSCD consultancy contract, priced at $5.955 million, is scheduled to terminate on 1 December 2018. Since the mobilization of the consultants in November 2013, there have been numerous changes in DSCD consultant personnel and the DSCD contract has been varied 5 times on a cost-neutral basis to meet the project design, supervision, and capacity development needs. However, insufficient funds remain under the contract for continuation of the DSCD consultancy contract beyond September 2016. A variation to the DSCD consultancy contract (Variation No. 6) was executed on 26 September 2016 in the amount of $1.500 million. VO6 will ensure that sufficient personnel resources for the DSCD consultant team for the duration of the project for: (i) contract administration, (ii) construction oversight, (iii) safeguard monitoring, (iv) monitoring and evaluation, (v) assistance for the implementation of the Greater Port Vila Traffic and Pedestrian Master Plan; and (vi) capacity development of Public Works Department and Port Vila Municipal Council personnel to manage the sludge treatment facility.

80. Variation No. 6 (VO. 6) increased the DSCD personnel resources as follows:

a) Team Leader (14 person-months). The Team Leader will be required until the end of the project, as outlined in the Works Program. The Team Leader will be responsible for the management, oversight and reporting for the project and be directing the increasingly important social aspects of the project including formation of Public Access Areas and dispute resolution. However, the Team Leader has also become responsible for some contract administration tasks, including variations and EOT responses. The intention is for the Team Leader to concentrate on those matters which are critical to the contract, but are not directly involved with the implementation of works. In this way the Team Leader will allow the supervision team to concentrate on the day-to-day implementation.

b) Contracts Manager (12 person-months) The Contracts Manager will manage the implementation of all contracts until the end of the Urban Roads and Drainage, Phase 1 contract in particular which is due for completion in December 2017.

c) Senior Works Supervisors (14 person-months) Two Senior Works Supervisors are required during the period. Senior Works Supervisor No. 1 will be required for a 12 month period and Senior Works Supervisors No.2 will required for 6 months for intermittent contract activities including night works.

d) Pavement Specialist (1 person-month). The Pavement Specialist services will be required for the asphalt mobilization and trials to ensure knowledge transfer and that the pavement design has been achieved.

e) Sanitation Specialist (1 person-month). The Sanitation Specialist will complete his services at the end of the construction of the Sludge Treatment Facility for training and capacity development of the operation and maintenance of the facility.

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f) Traffic Engineer (1 person-month). The Traffic Engineer will complete his services for the implementation of the Greater Port Vila Traffic and Pedestrian Master Plan including school safety program, traffic awareness campaign, audit of contractor’s traffic management plans and support to the Land Transport Authority.

g) Senior Draftsman (2 person-months). The services of a Senior Draftsman is required for the first two stages of the Roads and Drainage Phase 1 works. During this period, it is expected that the Senior Draftsman will assist with the Principal Design for driveway entrances and car parks as part of the establishment of the Public Access Areas (PAAs), design of other variations anticipated for projects of this nature including modifications to roads, drainage and footpaths as a result of unforeseen conditions associated with utilities and design following adjustments of the kerb and channel levels as a result of PAAs.

h) Urban Designer (2 person-months). Similarly, it is expected that changes in the design model (in 12d) will be required as a result of clashes with utilities and PAA’s.

i) Gender Awareness and Community Participation Specialist (5 person-months). As a result of the finalization of the World Vision contract at the end of September 2016, in addition to her current terms of reference for gender and community participation, the GACP Specialist will be required to complete their capacity development activities with communities and agencies managing public toilets with the assistance of a local Community Specialist.

j) Environmental Specialist (1 person-month). This Specialist will be required to undertake auditing tasks against the approved Site-specific Environmental Management Plans.

k) Resettlement Specialist (1 person-month). Similarly, this Specialist is required to undertake auditing tasks against the Due Diligence Report and Resettlement Plans as well as oversee the Grievance Redress Mechanism.

l) Monitoring and Evaluation Specialist (1 person-month). The Monitoring and Evaluation Specialist is required for the auditing of the Monitoring and Evaluation Framework.

National Specialists a) Deputy Team Leader (14 person-month) Deputy Team Leader will continue to

manage the social, environmental and communication activities within the project. This role will continue until the end of 2017 with the completion of contract works.

b) National Resident Engineers (30 person-month) Three NREs will be required during the period including one NRE devoted to building.

c) Quality Control Engineer (12 person-month ) The QCE will continue in his current role providing quality control and quality assurance for all contract implementation.

d) Community Liaison Officer (12 person-month). The Community Liaison Officer will be required until the end of project to manage the implementation of the Communications Plan.

e) Sanitation and Hygiene Trainer (12 person-month ). It is proposed to include one additional specialist to the DSCD. This Specialist will assist with the capacity development of communities groups and agencies responsible for managing the operation and maintenance of sanitation facilities completed under the project. This

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additional position is required to replace the sanitation and hygiene services previously undertaken by World Vision.

f) Project Assistant (14 person-month). The Project Assistant will continue to perform her services of financial management and administration of the project.

81. Table 11 summarizes the negotiated and actual DSCD consultant inputs to the end of July 2016 and the additional DSCD consultant inputs proposed under VO. 6. VO. 6 will increase the contract price by approximately US$1.5 million (from $5.955 million to $7.455 million). As noted above, negotiations for VO6 are ongoing and are expected to be successfully concluded by 7 September 2016.

(II) Sustainable Urban Drainage Design Specialist (Individual, 8 person-months

intermittent inputs)

82. A sustainable urban stormwater drainage specialist will be recruited to assist VPMU and the Public Works Department (PWD) to prepare catchment management plans for 2 stormwater catchments within urban Port Vila (tentatively, the Seven Stars-Manples catchment and the Freswota catchment) following sustainable urban drainage systems (SUDS) principles. The sustainable urban stormwater drainage specialist will have a civil engineering or environmental engineering qualifications from a recognized university plus a minimum of 20 years of stormwater drainage planning and implementation experience. The sustainable urban stormwater drainage specialist must have must have demonstrated experience and knowledge in the planning, designing and implementing sustainable urban drainage design solutions. The sustainable urban stormwater drainage specialist will report to the Director of VPMU.

83. Specific tasks and responsibilities of the sustainable urban stormwater drainage specialist will include:

(i) In consultation with VPMU, PWD and key stakeholders, identify 2 priority stormwater catchments within urban Port Vila for which catchment management plans following SUDS principles will be prepared. Prepare a working paper outlining the stormwater catchments identified and the recommended catchments for the study.

(ii) Following endorsement of the catchment selection by the Project Steering Committee, prepare draft catchment management plans following SUDS principles which include:

(a) priority measures to enable communities within the catchments to cope with flooding;

(b) on-site measures to reduce flooding (e.g. on-site stormwater disposal, community retention and infiltration basins etc.).

(c) recommended regulatory actions to promote the use of SUDS solutions; and

(d) a prioritized and costed plan to implement the proposed SUDS solutions and community measures to cope with flooding;

(iii) Seek stakeholder views on the draft catchment management plans through stakeholder workshops and other stakeholder participatory methods.

(iv) Address the stakeholder comments and views and finalize the catchment management plans.

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(III) Climate Adaptation and Disaster Risk Management Planning (Firm, output-based contract to be delivered over 18 months)

84. A firm will be engaged through quality- and cost-based selection and under an output-based contract to: (a) prepare climate resilient urban road standards and guidelines for Vanuatu, (b) prepare a disaster risk management plan for Port Vila, (c) strengthening the capacity of managers of public infrastructure to mainstream climate change adaptation in the planning and design of infrastructure, and (d) update the Vanuatu Building Code and provision of support to implement and enforce the updated Building Code.

(IV) Water Quality Monitoring Specialist (Individual, 18 person-months intermittent

inputs)

85. A water quality monitoring specialist will develop and assist the Vanuatu Government to implement a long term sustainable water monitoring program through the provision of technical water monitoring and management professional advice and hands on practical training interventions. The water quality monitoring specialist will also be responsible for the collection, testing, and analysis of water samples from agreed sampling locations in the Port Vila environs, including Port Vila Harbor. The Water Monitoring Specialist will have a degree in chemistry, natural resource or environmental sciences, with at least 15 years’ experience in assessment and management of water systems (natural, community, commercial and industrial). Demonstrated experience conducting water testing programs, data analysis, reporting and capacity building and training of national personnel is essential. Water monitoring and assessment experience gained in the Pacific developing nations will be considered favorably. The water quality monitoring specialist will report to the Director of VPMU or his delegate.

86. Specific tasks and responsibilities of the water quality monitoring specialist will include:

(i) To lead the PVUDP water monitoring activities in conjunction with the project’s environment team and Government of Vanuatu personnel;

(ii) Develop the protocols and water monitoring parameters required to undertake PVUDP water monitoring activities in consultation with key stakeholders including the Government of Vanuatu Water Division;

(iii) Lead the PVUDP water monitoring baseline collection and subsequent data sampling requirements, data analysis and reporting;

(iv) Liaise with, build capacity and mentor Government of Vanuatu Water Division personnel in all aspects of water monitoring associated with the PVUDP,;

(v) Undertake a capacity needs assessment of the Government of Vanuatu Water Division personnel and assessment of their water quality assessment laboratory and provide recommendations in a report.

(vi) Review current government water policies, regulations, guidelines and protocols and provide recommendations for development, including potential cost recovery and license fee opportunities for services; and

(vii) Develop an action plan to address recommendations resulting from the above activities and development mechanism to implement.

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Table 11: Actual and Proposed DSCD Consultant Inputs

Position As Negotiated Actual Inputs (to end of July 2016)

Approved Variations (VO1 - VO5)

Approved Additional Inputs - VO6

Original Contract Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

International Specialists

Team Leader/Project Management Specialist

0 35 35 0 30.22 30.22 0 31.72 31.72 14 14

Monitoring and Evaluation Specialist

0 5 5 0.27 3.46 3.73 0.27 3.46 3.73 1 1

Street Lighting Specialist 0.5 1.5 2 0.23 1.41 1.64 0.23 1.41 1.64 0

Tunnel Engineer 1 3 4 0 0.68 0.68 0 0.68 0.68 0

Institutional Development Specialist

0 3 3 0 1.09 1.09 0 1.09 1.09 0

Pavement Design Engineer 0 3 3 1.08 2.55 3.63 1.08 2.55 3.63 0

Financial Management Specialist

0 4 4 0 1.59 1.59 0 1.59 1.59 0

Drainage Engineer 0 6 6 1.48 4.55 6.03 1.48 4.55 6.03 0

Technical Officer (IT/CAD) 0 3 3 0 3.14 3.14 0 0 3 0

Quantity and Cost Estimator 0 3 3 0.91 5.31 6.22 0.75 4 4.75 0

Procurement/Contract Specialist

0 6 6 0.46 5.93 6.39 0.61 5.78 6.39 0

Resettlement Specialist 0 4 4 0.78 4.54 5.32 0 0 4 1 1

Traffic Management Engineer

0 3 3 3.77 6.41 10.18 2.55 7.63 10.18 1 1

Road Maintenance Engineer

0 3 3 0 1.23 1.23 0 -1.77 1.23 0

Municipal Road Design Engineer

0 7 7 0 9.18 9.18 0 9 9 0

Resident Engineer 0 20 20 0 0 0 0 0 0 0

Environmental Specialist 0 8 8 4.39 5.17 9.56 0.2 6 6.2 1 1

Works Supervisor 0 15 15 0 0 0 0 0 0 0

Gender Specialist 0 5 5 5.55 0 5.55 6.09 -0.54 5.55 0

Community Awareness and Participation Specialist

0 3 3 4.52 1.23 5.75 7 0.47 7.47 5 5

Sanitation/Process Engineer

0 8 8 1.6 3.05 4.65 1.6 1.68 3.28 1 1

Geotechnical Engineer 0 2 2 0 0 0 0 0 0 0

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Position As Negotiated Actual Inputs (to end of July 2016)

Approved Variations (VO1 - VO5)

Approved Additional Inputs - VO6

Original Contract Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Technical Officer (Geotech) 0 3.05 3.05 0 3.05 3.05 0

Drainage/Sanitation Support Engineer

0 5.64 5.64 0 5 5 0

Contracts Manager 0 16.52 16.52 0 18.52 18.52 12 12

Streetscape Architect 0.14 2.61 2.75 -0.44 3.19 2.75 0

Hydrogeological Expert 0.16 0 0.16 0.16 0 0.16 0

Pavement Specialist 0.56 1.38 1.94 1.87 0.32 2.19 1 1

International Surveyor 5.27 0 5.27 5.27 0 5.27 0

Sewer Designer 0.64 0.27 0.91 -0.27 1.18 0.91 0

Temp Replacement Proc/Contracts Specialist

1.02 1.32 2.34 1.32 1.02 2.34 0

Senior Draftsman 1.18 6.81 7.99 2.09 7.81 9.9 0

Senior Draftmans 2 2.54 1.55 4.09 2.54 3.41 5.95 2 2

Urban Civil Designer 3.04 3.07 6.11 3.04 4.84 7.88 2 2

Senior Works Supervisor 1 0.2 4.5 4.7 0 5.7 5.7 12 12

Senior Works Supervisor 2 0.71 0 0.71 2.71 0 2.71 6 6

Water Quality Monitoring Specialist

0.41 0.27 0.68 0.84 0.52 1.36 0

Contracts Administrator 2.2 0 2.2

TOTAL 1.5 150.5 152 40.91 137.73 178.64 40.99 133.86 184.85 11 48 59

National Specialists

Deputy Team Leader 55 0 55 9.72 0 9.72 9.72 0 9.72 0

Deputy Team Leader / Environmental Specialist

16 0 16 12.23 0 16.85 18.8 0 18.8 14 14

Institutional Development Specialist

16 0 16 0 0 0 0 0 0 0

Environmental/Resettlement Specialist

44 0 44 10.09 0 10.09 10.09 0 10.09 0

Administrative Assistant/Accounting Officer

55 0 55 29.93 0 29.93 31.93 0 31.93 14 14

Community Awareness and Participation Specialist

33 0 33 18.86 0 18.86 18.86 0 18.86 0

Community Liaison Officer 12.37 0 12.37 14.23 0 14.23 12 12

Counterpart Engineer (No.1)

11 0 11 4.34 0 4.34 4.34 0 4.34 0

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Position As Negotiated Actual Inputs (to end of July 2016)

Approved Variations (VO1 - VO5)

Approved Additional Inputs - VO6

Original Contract Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Home Inputs

Field Inputs

Total Inputs

Counterpart Engineer (No.2)

11 0 11 18.32 0 18.32 18.32 0 18.32 12 12

Counterpart Engineer (No.3)

11 0 11 14.96 0 14.96 14.96 0 14.96 0

Clerks-of-works/Site Engineer (No.1)

33 0 33 0.66 0 0.66 0.66 0 0.66 0

Clerks-of-works/Site Engineer (No.2)

33 0 33 15.18 0 15.18 15.18 0 15.18 0

Clerks-of-works/Site Engineer (No.3)

33 0 33 2.14 0 2.14 2.64 0 2.64 6 6

Clerks-of-works/Site Engineer (No.4)

22 0 22 1 0 1 1 0 1 12 12

Technical Officer 22 0 22 13.05 0 13.05 13.05 0 13.05 0

Urban Designer/Resident Engineer

22 0 22 24 0 24 0

Quality Control Engineer 14.12 14.12 16.12 0 16.12 12 12

National Surveyor 13.12 0 13.12 15.12 0 15.12 0

Sanitation and Hygiene Trainer

0 0 0 12 12

340 0 340 153.13 0 157.75 164.06 0 164.06 70 0 70

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VII. SAFEGUARDS

87. Environment. The project is classified as environmental category B. MFEM, as the executing agency, will have overall responsibility for the project’s compliance with safeguard requirements. MFEM will also coordinate on staff requirements for audit of safeguard activities with relevant government agencies, including the Ministry of Lands and Natural Resources and the Department of Environmental Protection and Conservation (DEPC), as needed. The VPMU will manage the day-to-day activities, including safeguard activities. The VPMU will implement the environmental and social safeguards activities to be supported by an international Safeguards Specialist and a national consultant.

88. The Safeguards Specialists will be skilled in both social and environmental safeguards and will be responsible for strengthening government’s capacity in environmental management and social development, including undertaking on-the-job training and supporting MIPU and safeguards agency staff so that at the conclusion of the project they are able to carry the safeguards programs through into MIPU systems. The international Safeguards Specialist, along with the national consultant, will facilitate and supervise the implementation of the Environmental Management Plan (EMP), which will include (i) revising the construction section of the EMP, attaching the EMP to the bid and contract documents, and pricing implementation of the EMP in the bill of quantities in bidding documents; (ii) reviewing and approving the contractor’s EMP; (iii) training of MFEM technical staff and contractors in implementing the EMP and monitoring requirements; and (iv) undertaking compliance monitoring of the EMP. The safeguards budget for personnel and operational support, which includes both the social and environmental requirements for 5 years, has been included in the project cost. The government will second safeguards staff from relevant agencies for implementation of safeguards activities in an appropriate and timely manner. The IEE for the project has been prepared and endorsed by the executing agency.

89. The potential environmental impacts of the proposed project have been evaluated. The more prominent impacts that are expected to arise as a result of the project actions are (i) increased traffic, and restricted access during construction; (ii) possible impairment of land values and functions in those areas where aggregate and sand are extracted for construction use; (iii) near-shore discharges of sediment and pollutants along with storm water drainage runoff; (iv) impairment of coastal water quality as a result of drainage discharges; and (v) effects that are related to climate change. A number of the adverse impacts that might occur are considered moderate or minor, and none of the impacts are considered major. While negative impacts of the project are expected to be insignificant, these will nevertheless be carefully monitored and adequately mitigated. The identified potential adverse impacts of project actions, the magnitude of the impacts, and the mitigation measures that will be applied to reduce the impacts, are presented in Table 12.

90. While some minor adverse effects, as described above, may occur, overall, the project is expected to produce substantial environmental and socioeconomic benefits, which include, among others:

reduced incidence of standing water and flooding on roads within Port Vila;

reduced road hazards due to flooding and poor road conditions;

reduced erosion and sediment runoff, thus improving water quality in the coastal environment;

reduced risk of waterborne and vector borne diseases as a result of both (a) elimination of standing water, and (b) improved sanitation facilities and practices; and

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improved environment for tourism and other investment activities.

91. The project will retain an international environmental management/climate change adaptation/monitoring specialist on a part-time basis, and a national environmental officer on a full-time basis. The focus of these consultants will be on the identification, resolution, and monitoring of environmental issues, and on training and capacity development of personnel specifically within DEPC.

92. The project's IEE was prepared. Its EMP will be used to guide environmental mitigation, monitoring, and reporting. Table 13 outlines the major actions associated with the preparation, submission, and approval of environment documents within the government and to ADB.

93. The project is classified as Category B for involuntary resettlement. An RP has been prepared for the STP that requires acquisition of 6.5 hectares of land. The rehabilitation of the road and drainage network is not expected to require acquisition of land. As all works will be undertaken within existing road corridors, RF has been prepared to address any impacts that may arise during implementation. The community sanitation facilities will be located on respective community communal land, and due diligence under the PPTA has confirmed that there will be no land acquisition and resettlement issues under this component. The RF and RP have been endorsed by the government and posted on ADB’s website.

94. Inhabitants of the subproject sites are indigenous and are the main beneficiaries. No adverse impacts on indigenous peoples are expected, so an indigenous people’s plan is not required. The project has been classified as category C for indigenous peoples.

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Table12: Summary of Impacts

Project Activities / Actions Environmental Impacts Mitigation Measures

● = No

Significant Effect with Mitigation

Level of Impact without Mitigation

Major Moderate Minor

PRECONSTRUCTION PHASE

Project design activities Impacts on sensitive areas due to poor site selection

Greenhouse gas (GHG) emissions impacts and nonadaptive features of infrastructure

could result if climate proofing not incorporated

Ensure all measures incorporated in design are implemented ● ●

Site clearance, digging, excavations

Accidental discovery of archaeological assets, sites, or resources

Cease activity immediately Inform Vanuatu Cultural Council archaeologists; follow all

actions required by archaeologists

● ●

Site preparation, vegetation removal

Minor loss of vegetation during demarcation

Minimize vegetation removal Train construction workers about restrictions on vegetation

removal, and general environmental protection Compensate affected persons (APs) for trees or other

vegetation that is removed

● ●

Land acquisition, changes in land use

Loss of former productive uses, economic losses

Compensate APs for loss of productive use of land and resources

●

Mobilization of contractor, presence of construction workers, associations with local people

Social disruption Site office and works yard established in consultation with authorities and land owners/users

Village protocols discussed; worker awareness as part of mobilization

Contractor to ensure workers actions are controlled and village rules, code of conduct observed

Appropriate signage and security is implemented at project sites

● ●

Spread of sexually transmitted infections (STIs) and human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS)

Implementation of awareness and prevention program – contractor

Implementation of HIV/AIDS awareness and prevention program – community (villages)

● ●

CONSTRUCTION PHASE

Operation of construction Emission of exhaust from vehicles Maintain construction equipment ● ●

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Project Activities / Actions Environmental Impacts Mitigation Measures

● = No

Significant Effect with Mitigation

Level of Impact without Mitigation

Major Moderate Minor

vehicles generating emissions

and machinery Road dust

Prohibition of use of equipment that causes excessive pollution (e.g., generates smoke)

Vehicles transporting dust-producing material not overloaded, provided with tail-boards and side-boards, and adequately

covered Material stockpiles located in sheltered areas and to be

covered Damping down of the road during the dry season

Periodic air quality monitoring

Noise Maintain construction equipment No use of heavy equipment between 9 pm and 5 am in

residential areas Prepare and adhere to a schedule of operations Provide noise abatement equipment to workers

Provide mechanism for addressing noise-related complaints in grievance procedures

● ●

Access and traffic Prepare traffic management plan Provide adequate protection to the general public in the

vicinity of work sites, including advance notice of commencement of works, and installation of safety barriers

and signage or other markers Inclusion of a contract clause specifying measures to minimize

traffic disruptions Engage in consultation with appropriate community

representatives, in the event that access has to be disrupted and to arrange temporary access

Avoid use of construction equipment in off-road areas Regularly clear debris, soil, and any other material from

roadways Provide safe access across construction sites to people whose access to homes or businesses is temporarily affected during

construction

● ●

Site clearance, digging, excavation

Accidental discovery of archaeological assets, sites, or resources

Cease activity immediately Inform Vanuatu Cultural Council archaeologists; follow all

actions required by archaeologists

● ●

Works in or adjacent to rivers, streams, water protection zones, and coastal areas

Disturbance of ground and sediments Erosion of riverbanks, foreshore, and in coastal zone

Movements of vehicles and machinery within coastal habitats will be minimized

Repair of or compensation for damage to slopes, beaches and mangroves by contractor

● ●

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Project Activities / Actions Environmental Impacts Mitigation Measures

● = No

Significant Effect with Mitigation

Level of Impact without Mitigation

Major Moderate Minor

Effects on river structure including (i) changes to river water flows, including levels and velocity; (ii) changes to channel depth, structure, and location resulting from excavations; and (iii) changes to riverbanks Reduction in river and coastal water quality

Monitoring of embankments, coastal slopes, and other sensitive features during construction

Revegetation of open ground, especially on slopes Proper disposal of spoils, rubbish, or any other construction

material; no disposal within any beaches, mangroves, or other coastal sites

Suitable tip sites to be designated in consultation with land owners and community leaders

Reuse of construction materials (e.g., excavated road bitumen) where feasible

Use of silt control devices and sediment traps/fences during works, to be cleaned and dewatered

Temporary structures removed on completion of works and riverbed restored

Avoid clearing activities during rainy season where possible Stones and rocks kept on hand for use in bank or channel

stabilization Gabion baskets, rock rip-rap, or bioengineering methods to be used for embankments and for coastal protection/stabilization

No unplanned or unpermitted discharges to rivers, surface waters, intertidal areas, or coastal areas

Spoils and stockpiles will not be located near the coast, on slopes, or within 15 m of rivers

Placement of diversion ditches around stockpiles No removal of mangroves

Storage of fuel, oil, other chemicals in secure tanks or containers away from coast

Approved disposal of wastewater All rules applying to protection of water supply sources protection zone to be strictly followed

Baseline marine biological monitoring conducted prior to construction, regular periodic monitoring conducted thereafter

Aggregate and sand extraction

Removal of beach sand undermines shoreline, changes littoral drift, and accelerates erosion Extraction from quarries or borrow pits leaves unusable land, exposes water table, attracts rubbish dumping,

Existing quarries will be used wherever possible and appropriate

Extraction of beach sand not permitted under project guidelines

Extraction from ecologically sensitive areas (inter-tidal, swamp, or mangrove areas) or productive land is not permitted Preparation and implementation of extraction plan (with limits

● ●

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Project Activities / Actions Environmental Impacts Mitigation Measures

● = No

Significant Effect with Mitigation

Level of Impact without Mitigation

Major Moderate Minor

and reduces visual values to volumes extracted from any one source) in accordance with guidelines

Materials not extracted from river beds or other sensitive areas All extraction sites to be rehabilitated after use

Topsoil is preserved and replaced during rehabilitation

Accidental spills of hazardous substances and need for emergency response

Oil and other hazardous chemicals are spilled into the environment resulting in pollution Hydrocarbon leakage or spills from construction camps and workshops Accidents placing people at risk

Emergency response plan (as part of EMP) prepared by contractor to cover hazardous materials/oil storage, spills and

accidents Chemicals will be stored in secure containers away from the

coast, surface waters, and r rivers Chemicals stored in area or compound with concrete floor and

weatherproof roof Spills will be cleaned up as per emergency response plan

Ensure that all construction vehicles and plant are well maintained

Accidents reported to DEPC within 24 hours

● ●

Encroachment into sensitive natural areas, disturbance of marine and terrestrial habitats, effects on flora and fauna

Impacts on fisheries and fishery grounds Direct impacts on coral reefs, mangroves, and seagrass beds Runoff and rivers carry turbid waters to coral reefs Terrestrial habitats become fragmented Workers poach animals for food or feathers, etc. Protected or sensitive areas affected

Measures to be taken to minimize erosion and silt and sediment transport

Discharge of surface runoff into ecologically sensitive receiving waters to be avoided by diversion or other available

means Mangroves not to be felled, removed, or damaged

Vegetation clearance to be kept to minimum; avoid felling of roadside trees wherever possible

Contractor responsible for information and sanctions regarding harm to wildlife and felling of trees

Stockpiles and equipment not stored in ecologically important or sensitive areas

Progressive revegetation to be carried out in all areas disturbed by the project with fast-growing, native species

● ●

Encroachment into historical / cultural sites

Effects on cultural values; cultural or archaeological sites will be affected by the subproject

No known cultural sites or archaeological resources are located within the project area or close enough to be

influenced by it Accidental discovery dealt with as per provisions

● ●

Presence of construction workers

Various social impacts including (i) social disruption; (ii) possibility of conflicts or antagonism between residents and workers; (iii) spread of

Most laborers to be locally sourced and housed Village protocols discussed and worker awareness as part of

mobilization process Contractor to ensure workers’ actions and work site are

● ●

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Project Activities / Actions Environmental Impacts Mitigation Measures

● = No

Significant Effect with Mitigation

Level of Impact without Mitigation

Major Moderate Minor

communicable diseases including STIs and HIV/AIDS; (iv) children are potentially exposed to exploitation Impacts on workers and public health and safety

controlled Workers to respect village and landowner boundaries, and

community practices and traditions Signage and security, i.e., prohibition on unauthorized people

(especially children) entering site office and works yard STIs and HIV/AIDS awareness program through approved

service provider for workers and communities A communications and complaints plan will be used for liaison

and correction among stakeholders Contractor to appoint environment and safety officer

Contractor to provide health facilities and first aid post in site office and to provide safety equipment for workers

Any damage to property and resources promptly repaired or compensated

Contract documents will include provisions for ensuring that the poor, local people, and women are encouraged to

participate in workforce and will receive fair wages No child labor to be used

OPERATIONS PHASE

Operation of sludge treatment facility

Discharge of noxious gases such as methane (CH4), hydrogen sulfide (H2S), ammonia (NH4), carbon dioxide (CO2), sulfur dioxide (SO2) and nitrogen oxides; bad odors; associated health risks

Treatment facility is sufficiently distant from inhabited and built-up areas

Prevailing winds will usually blow gases at the site away from built-up areas

Capture of methane for cogeneration of energy will minimize emissions

● ●

Increased noise from pumps, blowers, dryers

Equipment fitted with noise-reducing mufflers as required Maintain equipment in good working order

Provide earplugs to workers

● ●

Operation of street sweeping equipment

Dispersal of dust into atmosphere Watering of road surfaces during sweeping ● ●

Increased noise Equipment fitted with noise-reducing mufflers as required Maintain equipment in good working order

Provide earplugs to workers

● ●

Regular maintenance operations

Traffic disruptions

Maintenance conducted according to preannounced schedule, and during off-peak hours

Reductions in street flooding achieved through infrastructure improvements should help to improve traffic flow

● ●

Actions resulting in siltation, erosion, and

Generation of increased sediments; accidental spillage of fuel or oil on the

Ensure that all culverts and drainage structures are adequately maintained so that debris does not build up, causing waters to

● ●

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Project Activities / Actions Environmental Impacts Mitigation Measures

● = No

Significant Effect with Mitigation

Level of Impact without Mitigation

Major Moderate Minor

impacts to soil ground divert from the intended path of flow, resulting in severe erosion and loss of land

Ensure that roadways are free of excessive debris through regular cleaning and street-sweeping

Ensure that road surfaces are watered during street-sweeping operations to control fugitive dust

Ensure that oil separators within drainage system are maintained in good functional order

Ensure that stockpiles of materials used for maintenance and repair work are not placed where they could be accidentally

dispersed by water or wind Ensure that fuel oil and other hazardous materials are properly

stored and handled Ensure that workers are familiar with emergency spill response

procedures, and that these are effectively applied when needed

Awareness of the value of maintaining vegetation cover will be undertaken

Discharge of sludge and drainage effluents, operation of septic tanks

Water quality in surface waters and nearshore areas affected by sediments, contaminants, nutrients etc. Possible impacts on coastal biota

Anticipated improvements in runoff water quality due to better infrastructure

Passage and enforcement of drainage and sanitation act Effective maintenance of septic tanks, sludge treatment

facility, drainageways Water quality monitoring for effluents and for near-shore areas

Marine/coastal biological monitoring

● ●

Climate change issues GHG emissions through operation of sludge treatment facility Possible increased sediment transport due to increasing intensity of rainfall Possible effects of sea level rise or increased water table height

Operation includes implementation of cogeneration at sludge treatment plant to reduce GHG emissions

Maintenance of drainageways ensures self-flushing function Tidal flaps maintained in good working condition

Septic tanks maintained in good working condition to prevent leakage and flooding

● ●

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Table 13: Preparation, Submission, and Approval of Environmental Documents

Environmental Management Actions

Conditions Required to Complete Actions

Environmental management system established

Budget, facilities, and staff for the Environment Unit have been provided according to Loan Agreement and EMP

Conduct environmental studies (may include detailed baseline environmental data as required in EMP), and/or update EMP according to Loan Agreement

Consultants/qualified experts recruited

DEPC prepares design brief for design &

supervision (D&S) consultants that incorporates EMP or updated EMP requirements in the project design

DEPC checks that design brief meets EMP and/or updated EMP requirements

Appointment of design and supervision consultant(s) with necessary technical capacity and experience to address EMP or update EMP requirements

DEPC extracts construction requirements from EMP or updated EMP and passes to D&S consultant for inclusion in tender documents

DEPC reviews tender documents and confirms that environmental management provisions are sufficient

Environmental conditions have been prepared and integrated into tender documents

DEPC reviews environmental conditions of bids and ranks contractors on this ability

Head of DEPC to be a member of the bid evaluation panel

DEPC reviews site EMP (SEMP) prepared by consultants or contractors

Contractor appoints environmental

manager and staff After award of contract, contractor has

30 days to prepare SEMP

DEPC verifies compliance of contractor with SEMP at site meeting

Contractor cannot take possession of construction site until SEMP has been approved and induction is completed satisfactorily

PRECONSTRUCTION STAGE

Contractor inducted to site by DEPC

ESA officer appointed within VPMU or EA. Environment staff

appointed

Project becomes effective

Prepare environmental studies and/or update

EMP

Preconstruction: Design; Incorporation of EMP or

updated EMP requirements

Tender documents prepared

Tenders evaluated and contractor appointed

Contractor prepares SEMP

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Environmental Management Actions

Conditions Required to Complete Actions

DEPC monitors contractor’s SEMP compliance activities

DEPC audits construction activities DEPC evaluates monitoring program DEPC uses qualified external experts to

verify monitoring reports for project with potentially significant adverse impacts

DEPC assists ADB on supervision missions according to the Loan Agreement

If noncompliance is identified, prepare and implement corrective action plan (CAP)

Contractor complies with SEMP requirements for implementing and monitoring work on-site

External experts recruited to verify monitoring reports for project with potentially significant adverse impacts

DEPC reviews and signs off on

completed work VPMU/EA submits monitoring report

(including CAP, if any) to ADB for review according to the Loan Agreement and to environmental authorities according to host country regulations

Project works completed in accordance with the SEMP, and all sites satisfactorily rehabilitated and restored.

Payments may be withheld if sites not cleared and closed to meet SEMP specifications.

EA submits monitoring reports to ADB according to Loan/Grant Agreement

CAP - corrective action plan D+S - design + supervision EA - executing agency EMP - environmental management plan DEPC - Department of Environmental Protection and Conservation SEMP - site environmental management plan

PRECONSTRUCTION COMPLETED

CONSTRUCTION STAGE

CONSTRUCTION COMPLETED

OPERATION COMMENCES

Contractor begins work

Contractor approved to start work

Environmental monitoring undertaken and reports prepared.

By contractor: periodical environmental report sent to VPMU/EA By EA: Semiannual or quarterly environmental report to ADB according to the Loan Agreement Submission of CAP, if any, to ADB for review

Construction completed and project

commissioned

Submission of monitoring reports to

ADB according to Loan Agreement

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VIII. GENDER AND SOCIAL DIMENSIONS

95. Women play an important role in economic life in Vanuatu, particularly in the rural sector, where more women than men are engaged in subsistence agriculture. In addition to growing food and cash crops, women contribute to the rural economy through the processing and sale of home produce such as clothing, baskets, mats, and handicrafts. Women are increasingly active in the retail sector in rural and urban areas, including the management of markets, shops and stalls. As women are the main users of water and responsible for family health, the project will take into account women’s voices for drainage systems and communal sanitation facilities in the urban and periurban settlements, including their administrative roles in the implementation of these facilities. The project will empower women through capacity development activities.

96. The project's Gender Action Plan (GAP) will be implemented by the VPMU, which will hire a community development/gender specialist in the project team. The specialist will be responsible for incorporating the GAP into project planning and programs, including awareness workshops and establishment of gender-disaggregated indicators for project performance and monitoring. The VPMU will include reporting on the progress of GAP activities in regular progress reports on overall project activities to ADB and the government. Other consultants may be hired to implement different GAP activities under the guidance of the community development/gender specialist.

97. VPMU has prepared an updated gender action plan (GAP) which reflects the current context in Vanuatu in relation to PVUDP gender issues and gender mainstreaming which: (i) has actions that can be feasibly implemented; and (ii) has gender targets that are achievable. ADB safeguard specialists have reviewed revisions of the draft updated GAP and have provided comments and suggestions which have been addressed. ADB’s safeguard specialists no objection to the final revision of the updated GAP. The updated GAP is presented below.

A. Updated Gender Action Plan

Action Target Indicator for reporting Responsible

Output 1: Improved Roads and Drainage System in Greater Port Vila

Consult with women during the development of roads and drainage works

Women and men participate equitably in consultation on improved roads and drainage design and construction

Number of women and men attending consultation meetings

Gender Community Participation Specialists (GCS) Community Liaison Officer (CLO)

Improve safety and convenience for women, children and persons with a disability in locations targeted for improved roads and drainage

Road and drainage design meets the specific needs of women, children and disabled persons

Safety features incorporated during construction, including temporary footpaths, signage and lighting.

Design, Supervision and Capacity Development Specialists (DSCD) Works Contractor

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Action Target Indicator for reporting Responsible

Maximise employment, training and income generation opportunities for women during construction

30% of project labour force are women

Number of women and men employed during project, by type job

Works Contractor

Work environments are conducive to women’s employment

Private and safe toilets and rest areas for female staff at work sites

Works Contractor

Women or women’s groups access opportunities for non-formal income generation

Number of women or women’s groups awarded contracts for food catering or similar

Works Contractor

Labour force receive awareness education training on HIV and Gender issues

Number of female and male labourers attend x number of days HIV and Gender training Number of condoms and IEC materials distributed to labour force

Works Contractor

Women access opportunities for skills training

Number of female and male labourers accessing what type and duration of training

Works Contractor

Prohibit sex discrimination in employment

Female and male employees are treated equitably

Labour force informed and able to access complaints mechanism Women and men receive equal pay for equal work

Works Contractor

Maximise employment and income generation opportunities for women engaged in maintenance of completed infrastructure

30% of roads and drainage maintenance work force are women

Number of women and men trained and employed to maintain roads and drainage Number of women or women’s groups awarded road maintenance contracts

Public Works Department (PWD)

Action Target Indicator for reporting Responsible

Output 2: Improved Sanitation System in Greater Port Vila

Consult with women and men to inform design of sewage treatment plant (STP)

Women and men participate equitably during consultation on design and location of STP

Number of women and men attending consultation meetings

DSCD, GCS, CLO

Maximise employment, training and income generation opportunities for women during construction

30% of STP project labour force are women

Number of women and men employed during construction, by type job

Works Contractor

Work environments are conducive to women’s employment

Private and safe toilets and rest areas for female staff at construction site

Works Contractor

Women or women’s Number of women or Works

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Action Target Indicator for reporting Responsible

groups access increased opportunities for non-formal income generation

women’s groups awarded contracts for food catering or similar

Contractor

Labour force receive awareness education training on HIV and Gender issues

Number of female and male labour force attend x number of days HIV and Gender awareness education training Number of condoms and IEC materials distributed to labour force

Works Contractor

Women access opportunities for skills training

Number of female and male labourers accessing what type and duration of training

Works Contractor

Prohibit sex discrimination in employment

Female and male employees are treated equitably

Labour force informed and able to access complaints mechanism Women and men receive equal pay for equal work

Works Contractor

Action Target Indicator for reporting Responsible

Output 3: Central area and settlement communities use improved hygiene facilities

Consult with women’s groups, community leaders, government and civil society organisations to identify viable sites for new/improved community sanitation facilities (CSF) and public toilets (PTs)

Ensure that the needs of women, children and disabled persons are prioritised when identifying locations for new/improved CSFs and PTs

Number of women and men consulted on locations for new/improved CSFs and PTs.

GCS

Consult with women and men on the design of CSFs and PTs

Women and men participate equitably in consultation on the design and of CSFs and PTs

Specific features for toilets and showers designed for each gender, including appropriate signage, bins for disposal of women’s feminine products and children’s diapers, proper lighting, ventilation and footpaths as well as disabled access facilities and child-accessible hand

GCS and DSCD and NGO

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Action Target Indicator for reporting Responsible

basins. Number of women and men with improved access to safe water and hygiene facilities

Consult with women and men to inform the development of solid waste management and facility operation and maintenance (O&M) plans for CSFs and PTs

Women and men participate equitably in consultation on development of plans to reduce, reuse, recycle and dispose of solid waste and in the development of O&M plans for CSFs and PTs

Number of women and men serving on community sanitation & hygiene committees Number of women and men participating in sanitation and hygiene training Percentage of women and men satisfied with solid waste disposal and hygiene practices in target sites Reported reduction in incidence of diarrhoea in target communities

NGO and DSCD

Design and implement an awareness and education program on sanitation and hygiene, including O&M of sanitation facilities

Improved knowledge, attitude and practice in terms of sanitation and hygiene in target settlement communities and public toilet sites. Community sanitation and hygiene committees able to operate and maintain new and improved CSFs and PTs

Maximise employment, training and informal income generation opportunities for women during construction of CSFs and PTs

30% of CSF and PT project labour force are women

Number of women and men employed during construction, by type job

Works Contractor

Work environments are conducive to women’s employment

Evidence of private and safe toilets and rest areas for female staff at construction site

Works Contractor

Women or women’s groups access increased opportunities for non-formal income generation

Number of women or women’s groups awarded contracts for food catering or similar

Works Contractor

Labour force receive awareness education training on HIV and Gender issues

Number of female and male labour force attend x number of days HIV and Gender awareness education training Number of condoms and IEC materials distributed to labour force

Works Contractor

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Action Target Indicator for reporting Responsible

Women access opportunities for skills training

Number of female and male labour force accessing what type and duration of training

Works Contractor

Prohibit sex discrimination in employment

Female and male employees are treated equitably

Labour force informed and able to access complaints mechanism Women and men receive equal pay for equal work

Works Contractor

Action Target Indicator for reporting Responsible

Output 4: Capacity Development

Develop communication plan to increase awareness on Government of Vanuatu (GOV) policy for sanitation, roads, traffic and building code.

Increased understanding among key government agencies, general public and private sector on GOV policies on sanitation, building code, roads and traffic management.

Number of awareness raising activities undertaken on the GOV policy, and number of women and men participating in such activities.

VPMU and CLO and DSCDs

Support key GOV agencies (MIPU, PWD, DEPC) to develop gender policy and engage in gender training on road, drainage and sanitation infrastructure

Increased understanding among target government workers on gender issues related to road, drainage and sanitation infrastructure maintenance.

Number of gender awareness training conducted for MIPU, PWD, DEPC, VPMU on gender issues in infrastructure sector(s), and number of government officials participating in these workshops.

DSCDs

Action Target Indicator for reporting Responsible

Output 5: Efficient Project Management services are provided

Develop a gender-sensitive project management framework

Gender action sufficiently resourced on project

Gender specialist employed on project to managed GAP

Team Leader

Project GAP designed, reviewed, implemented and monitored

Gender actions captured and reported within quarterly reports

GCS and Team Leader

Project management plans include gender actions

Project implementation schedule has accountability checkpoints (tasks) and milestones for gender action

GCS and Team Leader

Sex-disaggregated indicators included in M&E Framework

M&E framework DSCD M&E and GCS

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Action Target Indicator for reporting Responsible

Ensure sub-contractors develop gender-sensitive project management framework

Sub-contractors develop and implement gender action plans

Contractors and NGO producing reports against gender action

GCS

Develop a mechanism to ensure women have a voice in high level decision-making for project

Women and men participate equitably on high level project decision-making

Number of women serving on Project Steering Committee Number of women with decision-making authority employed at VPMU Changes to project design due to consultation with women

VPMU MFEM

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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Design and Monitoring Framework

98. The project’s design and monitoring framework has been updated to be aligned with the project scope as revised in August 2016. The updated design and monitoring framework is presented below.

DESIGN AND MONITORING FRAMEWORK Impact the Project is Aligned with

The project impact will be urban development of Port Vila is sustainable and is aligned with Vanuatu’s policy objective for infrastructure and utilities of ensuing economic infrastructure and support services are available to other sectors (Government of the Republic of Vanuatu. 2006. Priorities and Action Agenda 2006 – 2015. Port Vila).

Results Chain Performance Indicators

with Targets and Baselines Data Sources and

Reporting Risks

Outcome

The Government reduces flooding in Port Vila, operates a safer and less congested road network, and improves health and hygiene of Port Vila residents.

a. The annual number of traffic accidents is reduced by at least 20% from 238 (average for years 2011-2013) by end 2018 in Port Vila.

Accident Occurrence Register kept by Traffic Police Unit, Port Vila

Operations and maintenance budgets are inadequate.

Coordination among government agencies deteriorates.

b. Port Vila’s arterial roads remain trafficable during once in 2-year floods by Q4 2018

Vanuatu Meteorology and Geo-Hazards Department records.

Relevant institutions are adequately staffed & equipped with required expertise.

c. The number of households reporting at 1 case of diarrhea within a 2 week period prior to household surveys in the project’s target communities is reduced to less than 15% by 31 December 2020 (baseline: 29% in November 2014)

Ministry of Health statistical records. World Vision / Wan Smolbag KAP surveys.

Outputs 1. Improved road network in Port Vila

1.a. 13.3km of urban roads rehabilitated by Q4 31 December 2018 (baseline: July 2016, 0km)

Project monitoring reports. Ministry of Infrastructure and Public Utilities annual reports.

Infrastructure capital and maintenance costs may not be affordable and the government

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Results Chain Performance Indicators

with Targets and Baselines Data Sources and

Reporting Risks

2. Improved sanitation system in greater Port Vila

1.b. 12 km of urban drainage constructed or rehabilitated by 31 December 2018 Q4 2018 (baseline: July 2016, 0km)

Ministry of Infrastructure and Public Utilities annual reports. Project monitoring reports.

may not be able to maintain the assets.

Lack of progress on policy and institutional reforms

Weak and fragmented institutional arrangements may lead to poor coordination and follow-up on the government’s role in project implementation.

The government may not be prepared to implement a system of sustainable financing mechanisms

Government departments are unable to provide relevant staff for training.

By mid-2017: 2.1 All (domestic & commercial) sludge in Port Vila is safely treated and disposed of by 31 December 2018 (baseline: July 2016, 0%)

Reports of Port Vila Municipal Council Annual Reports

3.Central area and settlement communities use improved hygiene facilities.

3.a. 4 new multipurpose community sanitation & hygiene facilities at 2 informal settlements in greater Port Vila constructed and operational by 31 December 2018Q3 2017, with the majority operated by women’s groups (baseline: July 2016, 0).

World Vision / Wan Smolbag KAP surveys. Project monitoring reports.

3.b. 4 existing multipurpose community sanitation & hygiene facilities at 3 informal settlements in greater Port Vila refurbished by 31 December 2018Q3 2017, with the majority operated by women’s groups (baseline: July 2016, 0).

World Vision / Wan Smolbag KAP surveys.

3.c. 3 new public toilet facilities with access for women, children & the disabled .in the greater Port Vila constructed and operational by 31 December 2018 (baseline: July 2016, 0).

Port Vila Municipal Council Annual Reports.

3.d. 1 4 existing public toilet facility in greater Port Vila refurbished, including special provisions for women, children & the disabled, by 31 December 2018 (baseline: July 2016, 0)Q3 2017

Port Vila Municipal Council Annual Reports

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Key Activities with Milestones

1.1 Rehabilitate 13.3km of selected roads by 31 December 2018. 1.2 Upgrade stormwater drainage systems within 3 catchments in Port Vila by 31 December 2018. 1.3 Finalize Greater Port Vila Traffic and Pedestrian Management Plan by 31 December 2014. 2.1 Design and construct a sludge treatment and disposal facility by31 December 2018. 2.2 Draft operational procedures in the removal, transport, and treatment of sludge from septic tanks to

the sludge treatment and disposal facility by 31 December 2017. 2.3 Develop operational guidelines based on sustainable drainage systems (SUDS) principles and

techniques by 31 December 2017. 2.4 Construct new public toilet and associated wastewater treatment facilities by 31 December 2017. 3.1 Consult women’s groups on site selection and design of sanitation facilities and maintenance

activities by 31 December 2014. 3.2 Construct 10 multipurpose, multi-user sanitation facilities (toilet, washing and bathing facilities) in

identified villages and periurban settlements by 31 December 2017. 3.3 Develop approach and methodology on awareness raising, information dissemination, and

education related to health and hygiene via NGOs by 31 December 2017. 3.4 Conduct health and hygiene awareness and education program by 31 December 2017. 4.1 Design and deliver formal and in-service training in road, drainage and sanitation system

maintenance, outsourcing and contract management for government stakeholders by 31 December 2017.

4.2 Implement training for civil society in in hygiene and sanitation construction, management and maintenance of household and communal sanitation facilities by 31 December 2017.

Inputs ($, million)

ADB

Loan

$5.00 (current)

-$0.57 (reduction)a

$4.43 (overall)

Government of Australia

Grant

$31.00 (current)

-$5.85 (reduction)b

$25.15 (overall)

__ Global Environment Facility

Grant

$0.00 (current)

$2.87 (additional)

$2.87 (overall)

Government_________________

$3.10 (current)

-$0.04 (reduction)

$3.06 (overall)

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Key Activities with Milestones

Assumptions for Partner Financing

Not Applicable

a =

Based on US$-A$ and US$-SDR current exchange rates prevailing on 22 September 2016.

b = Amount includes ADB’s administration fee, audit cost, bank charges, and a provision for foreign

exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by the Government of the Commonwealth of Australia. KAP = knowledge, attitudes, practices; MFEM = Ministry of Finance and Economic Management; MIPU = Ministry of Infrastructure and Public Utilities; MOH = Ministry of Health; PVMC = Port Vila Municipal Council; NGO = non-governmental organization; PWD = Public Works Department (a division of MIPU); WHO = World Health Organization Source: Asian Development Bank.

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B. Monitoring

99. Project performance. MFEM through the VPMU has established the project performance and monitoring system. The indicators will monitor and evaluate how well the project achieves its goals and purposes. These indicators will be refined and monitored during project implementation. The indicators include data for monitoring economic development, change of road and drainage improvements, sanitation improvements, socioeconomic development, environmental impact, maintenance, and institutional development. Monitoring and evaluation will be based on gender-disaggregated data for social and poverty impact indicators.

100. The VPMU will provide hands-on training to MFEM staff and national consultants in data collection, monitoring, and evaluation. MFEM through the VPMU will monitor and evaluate the indicators according to the agreed upon framework on a quarterly basis to determine the efficiency and effectiveness of the project. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly and after each review mission. These quarterly reports will provide information necessary to update ADB's project performance reporting system.17

101. The project will engage an international and a national project performance monitoring and evaluation specialist who will provide guidance to the VPMU in developing and establishing an effective monitoring and reporting systems and processes. They will work closely with PWD and Statistics Office in developing a monitoring and evaluation system. The project will consider additional support based on the system that will be developed in the early part of project implementation. Baseline surveys will be undertaken at the start of project implementation, and all indicators in the GAP will be continuously monitored and reported. These will be included in the VPMU quarterly reports and project monitoring reports. A midterm review will be carried out, and a project completion report will be undertaken at project end.

102. The SC will oversee the supervision and coordination of the project and will meet at least every quarter.

103. Project Risk Register. VPMU has established a project risk register which will be updated at quarterly to reflect project risks and consequences and proposed mitigation measures.

104. Compliance. This will be monitored through regular quarterly progress reports and during regular review missions.

105. Environmental. An EMMP has been prepared that shows the impacts, mitigation measures, monitoring requirements and responsibilities of the various persons or agencies that need to be addressed during the design/preconstruction, construction, and operation phases. During preconstruction, monitoring of these activities will be carried out by the Environmental Specialist in the VPMU. The specialist will be responsible for ensuring that the issues that are to be addressed are implemented as required in the EMMP.

106. During construction, the contractor will have the initial responsibility for self-monitoring its work, which will be undertaken according to the contractor's SEMP. The contractor will appoint a

17

ADB's project performance reporting system is available at

http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltooland

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person on its team who will have overall responsibility for ensuring that the SEMP requirements are complied with. Included as part of his/her contract supervision responsibilities, the Resident Engineer will supervise and monitor the contractor’s work including compliance with the SEMP and direct the contractor accordingly. The Environmental Specialist will support and assist the Resident Engineer in monitoring the contractor’s work. The Environmental Specialist will also independently monitor the construction activities and will issue defect notices for noncomplying work to the contractor via the Resident Engineer.

107. Each month the contractor will prepare a brief report on compliance with the SEMP, which will be sent to the Resident Engineer and the Environmental Specialist. The Environmental Specialist will review the report and attach any additional information such as monitoring and forward the report to the Project Manager. The Project Manager will arrange for the monthly report to be (i) copied to DEPC, and (ii) included in a semiannual report to ADB.

108. Involuntary resettlement. Although most of the works will be undertaken at the locations of existing facilities, there may be a requirement for some additional land acquisition that may require development of a resettlement plan. If changes in conditions result in acquisition of land or resettlement for civil works, the government will inform ADB and prepare a resettlement plan in accordance with laws and regulations; ADB’s Safeguard Policy Statement (2009) and the RP and RF. The VPMU will ensure that no construction activities begin until ADB has reviewed and approved the RP. The VPMU will monitor and report quarterly through progress reports to ADB and stakeholders

109. Indigenous peoples. Native Melanesians, who comprise the vast majority of the population, are the indigenous people of Vanuatu. The project is not expected to have a negative impact on indigenous peoples that would trigger ADB’s Safeguard Policy Statement (2009). The project is categorized as indigenous peoples Category C; therefore no monitoring is required.

110. Gender and social dimensions. Action plans pertaining to social, gender, and poverty issues will be implemented, monitored, and reported by the VPMU as required by the respective action plans and the design and monitoring framework (DMF).

C. Evaluation

111. Soon after the loan is approved, ADB will field an inception mission to agree with MFEM on a checklist of implementation requirements of the projects as well as discuss in detail the procedures relating to procurement of works and goods, recruitment of consultants, and disbursements. The government and ADB will undertake semiannual reviews of the project to consider in detail the (i) scope of the project, (ii) implementation arrangements, (iii) compliance with loan and grant covenants, (iv) physical achievements against targets and milestones, and (v) project implementation issues requiring resolution or action. The midterm review, to be done after 2 years of the loan effectiveness date, will examine in detail the implementation progress and project design (institutional, administrative, organizational, technical, environmental, social, poverty reduction, resettlement, economic, and financial aspects), and identify courses of action that would improve project performance, viability, and the achievement of targets and project

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objectives. All the assumptions and risks noted in the DMF will be reviewed. Within 6 months of physical completion of the project, MFEM will submit a project completion report to ADB.18

112. ADB will undertake a project completion review of the project 2 years after its physical completion date. The project completion report will evaluate the processing and design of the project by both ADB and the borrower among others. It will assess and evaluate (i) performance of the borrower and executing agency in managing and implementing the project, and in complying with ADB’s guidelines, policies, practices, procedures, and loan covenants; and will evaluate project costs, disbursements, and institutional improvements; (ii) the performance of consultants, contractors, and suppliers with respect to services, construction, supply, delivery, and installation; (iii) problems encountered during implementation and the effectiveness of measures to resolve them by the borrower, executing agency, and ADB; (iv) whether the borrower, executing agency, and ADB monitored progress effectively in comparison with quantifiable and monitoring targets; (v) the financial and economic performance of the project at its initial stage of operation; and will compare this with the qualified indicators in the DMF and project performance report; (vi) the project’s transition to operations, and identify any remedial measures needed; (vii) future operation and maintenance schedules to ensure sustainability of the project; (viii) any other steps that the borrower and executing agency need to take to ensure the project’s sustainable operation; (ix) the performance of the monitoring and evaluation system established for the project and reexamine the indicators selected for monitoring operations and assessing development impact; (x) significant environmental and poverty reduction impacts (including socio-cultural impacts when applicable) of the project; and will evaluate the implementation and effectiveness of any environmental control measures, resettlement plans, and poverty reduction measures; and (xi) whether the immediate development objective has been met as well as the likelihood of attaining the long-term development goal.

D. Reporting

113. MFEM with the assistance of VPMU will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicators’ performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that the project continues to be both viable and sustainable, project accounts and the associated auditor's reports should be adequately reviewed.

E. Stakeholder Communication Strategy

114. During implementation a communication strategy and communication plan will be prepared that will indicate the types of information, means of communication, who will provide, and to whom, including at what intervals, to the stakeholders about the project as well as its implementation.

18 Project completion report format available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-

Sector-Landscape.rar

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X. ANTICORRUPTION POLICY

115. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy (1998, as amended to date) relating to the project.19 All contracts financed by ADB will include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.20

116. To support these efforts, relevant provisions are included in the loan agreement/regulations and the bidding documents for the project. Procurement will follow ADB’s Procurement Guidelines (2015, as amended from time to time), consultant selection will adopt ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time), and disbursement will be made in accordance with ADB’s disbursement policies, guidelines, practices, and procedures.

117. To ensure transparency and good governance, MFEM will publicly disclose the use of the loan and grant proceeds on the government’s website. For each procurement contract, MFEM will disclose (i) the list of participating bidders, (ii) the name of the winning bidder, (iii) basic details on the bidding procedure adopted, (iv) the amount of the contract award, (v) the list of goods or services purchased, and (vi) the intended and the actual amount of loan and grant proceeds under each contract. MFEM will see to it that all of its consultants, contractors, and staff are fully aware of, and comply with, the procedures of the government and ADB, including those for implementation, procurement, use of consultants, disbursements, reporting, and prevention of fraud and corruption. The borrower will prepare an anticorruption strategy and action plan for agencies involved in the tender evaluation and contractor selection processes, and establish a complaints mechanism. MFEM will support anticorruption efforts and transparency through consultation on major project decisions regarding reforms, and subproject selection and implementation.

19 Available at http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 20

ADB's Integrity Office web site is available at http://www.adb.org/integrity/unit.asp

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XI. ACCOUNTABILITY MECHANISM

118. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.21

119. A procedure for managing complaints and problems will be established by VPMU to (i) review and redress grievances and complaints of project stakeholders in relation to the project, any service provider, or any person responsible for carrying out the project; (ii) set the threshold criteria and procedures for handling such grievances, for proactively addressing them, and for notifying stakeholders about the mechanism or course of action chosen; and (iii) maintain the records on the above.

21

For further information see: http://compliance.adb.org/.

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XII. RECORD OF PAM CHANGES

9 November 2011: 1st draft.

11 March 2013. First updated following declaration of project effectiveness.

08 November 2014. Second update.

02 November 2016. Third update.