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Project Administration Manual

Project Number: 45148-005 and 45148-007 June 2018

Democratic Socialist Republic of Sri Lanka – Greater Colombo Water and Wastewater Management Improvement Investment Program –Tranche 1 and Tranche 2

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CONTENTS

Page

I. PROJECT DESCRIPTION 1

A. Project's Rationale, Location and Beneficiaries 1 B. Impact and Outcome 2 C. Outputs 2

II. IMPLEMENTATION PLANS 3

A. Project Readiness Activities 3 B. Overall Project Implementation Plan 4

III. PROJECT MANAGEMENT ARRANGEMENTS 5

A. Project Implementation Organizations – Roles and Responsibilities 5 B. Key Persons Involved in Implementation 7 C. Project Organization Structure 9

IV. COSTS AND FINANCING 10

A. Project 2 and AFD Cofinancing Subprojects Investment and Financing Plans 10 B. Project 2 Detailed Cost Estimates by Expenditure Category 11 C. Allocation and Withdrawal of Loan Proceeds 13 D. Detailed Cost Estimates by Financier 14 E. Detailed Cost Estimates by Outputs/Components 17 F. Detailed Cost Estimates by Year 18 G. Contract and Disbursement S-curve 19 H. Fund Flow Diagram 21

V. FINANCIAL MANAGEMENT 23

A. Financial Management Assessment 23 B. Disbursement 25 C. Accounting 26 D. Auditing 26

VI. PROCUREMENT AND CONSULTING SERVICES 27

A. Advance Contracting and Retroactive Financing 27 B. Procurement of Goods, Works and Consulting Services 28 C. Procurement Plan 28 D. Consultant's Terms of Reference 29

VII. SAFEGUARDS 29

A. Key Safeguard Documents 29 B. Implementation Arrangements 29 C. Environmental Safeguards 29 D. Involuntary Resettlement 30

VIII. GENDER AND SOCIAL DIMENSIONS 31

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 36

A. Project Design and Monitoring Framework 36

B. Monitoring 36 C. Evaluation 37 D. Reporting 37 E. Stakeholder Communication Strategy 37

X. ANTICORRUPTION POLICY 38

XI. ACCOUNTABILITY MECHANISM 38

XII. RECORD OF PAM CHANGES 38

APPENDIXES 1. Design and Monitoring Framework for Project 2 392. Detailed Project Description of Project 2 including AFD Cofinancing Subprojects 423. Procurement Plan for Project 2 44 4. Outline Terms of Reference for Consultants under Project 2 and AFD Contractual Cofinancing 49

5. Consultation and Participation Plan for Project 2 and AFD Cofinancing 746. Draft Leaflet for Project Information Disclosure 787. Sample Grievance Redress Form 808. Sample Monitoring Template 819. Detail organizational chart of PMU under NWSDB 82

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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 executing and 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. ADB staff is responsible to support implementation including compliance by executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

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

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

ABBREVIATIONS

ADB – Asian Development Bank ADF – Asian Development Fund ALC – Active leakage control AMR – Automatic meter reader CPS – Country partnership strategy DFR – Draft final report DMA – District metering area DMF – Design and monitoring framework DSIDC – Design Supervision and Institutional Development Consultant EIA – Environmental impact assessment EIRR – Economic internal rate of return EMP – Environmental management plan FIRR – Financial internal rate of return FMA – Financial management assessment GAP – Gender action plan GIS – Geographical information system ICB – International competitive biding IEE – Initial environmental examination JICA – Japan International Cooperation Agency MASC – Management Advisory and Supervision Consultant MLD – Million liters per day MWSD – Ministry of Water Supply and Drainage NRW – Non-revenue water MLGPC – Ministry of Local Government and Provincial Councils NPC – National Planning Commission NWSDB – National Water Supply and Drainage Board O&M – Operation and maintenance PAM – Project Administration Manual PBMC – Performance-based management contract PCR – Project completion report PMU – Project Management Unit PPP – Public-private partnership PPTA – Project preparatory technical assistance QCBS – Quality- and cost-based selection RSC-WC – Western Central Regional Support Center SOE – Statement of expenditures SPRSS – Summary poverty reduction and social strategy SPS – Safeguards Policy Statement (of ADB, 2009) TA – Technical assistance WACC – Weighted average cost of capital

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Figure 1: Location Map of the Project MAP

PROJECT LOCATION IN SRI LANKA

PROJECT 1

Thibirigasyaye DSD

PROJECT 2

Source: PPTA Consultants

I. PROJECT DESCRIPTION

A. Project's Rationale, Location and Beneficiaries

1. Rationale. About 95% of Colombo1, the capital city and economic and administrative hub of the country, is covered by a piped water supply system. Because the system has low and fluctuating system pressure and intermittent supply, some areas of the city receive water only in off-peak hours and others receive water for an average of only 6–10 hours a day. Many parts of the distribution network were built more than 100 years ago. Though there have been various projects to address the increasing water demand, significant network rehabilitation has not been

carried out; nonrevenue water (NRW) remains around 49%.2 The National Water Supply and Drainage Board (NWSDB), under the Ministry of Water Supply and Drainage (MWSD), supplies piped water to 127,000 metered service connections in Colombo; in the underserved settlements, about 3,200 stand-posts are not metered. The water tariff is below full cost recovery. To enhance water conservation through the stand-posts in underserved settlements, NWSDB has launched various pilot programs across the country and specifically in Colombo. These programs need to be implemented on a larger scale.

2. According to the United Nations Development Program, in 2008, 66% of the Greater Colombo population had on-site sanitation facilities; 25% had sewerage systems; and 9% had no facilities and disposed of waste on the seashore, into canals and waterways, and on available open ground. The various sewerage systems operating within Greater Colombo are currently estimated to serve 140,000 households. The original sewer network, built from 1906 to 1925 has been extended/improved in 1980s. Further improvement has been carried out in 2007. The system comprises about 320 kilometers of sewers, 18 pumping stations in two catchments (north and south) and two sea outfalls. The sewer lines have frequent collapses and blockages, and one-third of the pumping facilities are not working, causing frequent overflow into watercourses. The Colombo Municipal Council (CMC) owns and operates the wastewater infrastructure services in Colombo, and is the only municipal body handling such service in the country. NWSDB manages wastewater facilities outside the CMC area. NWSDB has introduced a sewerage tariff within its operating jurisdiction and has a dedicated account for sewerage

services.3 However, the sewerage operation in CMC is not separate from other operations and CMC has no independent accounting for its sewerage operation. Aside from property taxes, CMC does not impose a separate wastewater tariff. 3. Multitranche Financing Facility (MFF). On 25 October 2012, Asian Development Bank (ADB) approved a multitranche financing facility (MFF) of $300 million, envisaged to be funded from ADB‘s Ordinary Capital Resources (OCR) and Asian Development Fund (ADF), for the Greater Colombo Water and Wastewater Management Improvement Investment Program (the Investment Program). Tranche 1 ($84 million) under the Investment Program was approved by the President on 22 November 2012. The MFF is envisaged to comprise three additional tranches as follows: $88 million (Project 2 in 2013); and $128 million (Project 3 in 2015);. Tranches 1 and 2 focus on reducing non-revenue water (NRW) and improving water service efficiency in Greater Colombo. Tranches 3 and 4 will support

1 The 37 square kilometer area under the Colombo Municipal Council, which has a population of about 700,000.

2 The 49% NRW for Colombo, which is twice the national average NRW, comprises 33% physical losses, 5%

commercial losses, and 11% free water supplied to low-income informal settlements. 3 The cabinet approved the introduction of a sewerage charge in September 2002. Subsequently, NWSDB approved

a sewerage tariff policy and a specific tariff structure, which MWSD approved. A new sewerage tariff was gazetted in October 2007 and implemented in March 2008. As part of system computerization at NWSDB, the water bill form was modified and the sewerage charge was incorporated into the water bill.

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improvement of wastewater collection and treatment facilities and management services in Greater Colombo. The Framework Financing Agreement (FFA) for the Investment Program was signed on 12 September 2012.

B. Impact and Outcome 4. The impact of Project 2 will be improved water supply and wastewater service and management in Greater Colombo. The outcome will be improved efficiency and financial sustainability of water supply and wastewater services in Greater Colombo. A design and monitoring framework for Project 2 is in Appendix 1. C. Outputs 5. Project 2 includes the following outputs (further details of Project 2 are provided in Appendix 2):

Output 1: Rehabilitated and expanded water supply system and reduced NRW in the South Part of Colombo City. 4 To achieve this output, the proposed Project 2 will support: (i) rehabilitation and replacement of distribution network pipes and form the DMAs in the

South part of Colombo city covering an approximate area of 15 km2; (ii) enhancement of domestic service connections and bulk flow measurement, including the installation of higher quality customer meters, new electromagnetic flow meters, ultrasonic flow meters, valves, and fittings; (iii) validation of geographic information system (GIS) network maps in the rehabilitated areas; (iv) construction and operationalization of 2 NRW operation & maintenance offices; and (v) reorganization of the current pumping and transmission arrangements to Colombo city to save energy in water supply system.

Output 2: Completed designs and improved preparedness for wastewater Investments. To achieve this output, the proposed Project 2 will support: (i) preparation and approval of detailed design and bid documents for investments in wastewater management under Projects 3; and (ii) condition assessment survey and sewer cleaning of 125 km of the sewer network in Colombo city.

Output 3: Strengthened Institutional Structure and Capacity of Service Providers. To achieve this output, the proposed Project 2 will support: (i) decentralization of the Colombo city water supply operations to the Western Central Regional Support Center (RSC-WC) of NWSDB, including transfer and management of all records and assets by RSC-WC and establishment of GIS-based asset management system in the south part of Colombo city for the Colombo city operated by RSC-WC; (ii) provision of Management Advisory and Supervision Consultant (MASC) to support NRW reduction activities and water supply investments, and Design, Supervision and Institutional Development Consultants (DSIDC) to support investments under wastewater management for CMC; (iii) provision of training and capacity building to improve the operating performance of NWSDB and CMC staff; (iv) formulation and approval of volumetric sewerage tariff to be charged to all customers within CMC; (v) awareness campaign on both water supply and

4 Along with PFR 2, the Government is seeking parallel contractual co-financing from Agence Francaise

Developpement (AFD) in the amount equivalent to $70 million to implement the Government’s investment plan. The AFD parallel contractual co-financing will cover (v) Outputs 1. The AFD cofinancing will be partially administrated by ADB with procurement and disbursement supervision.

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wastewater management; and (vi) establishment of fully equipped active-leakage-control teams to undertake NRW reduction activities. All above mentioned activities focus on the south part of Colombo city.

Output 4: Project 2 successfully managed and implemented. To achieve this output, the proposed Project 2 will support: (i) implementation support for the executing and implementing agencies to manage the proposed Project 2 successfully and (ii) consultant services support to implement the proposed Project 2 and prepare Projects 3 and 4 investments.

6. The Government is seeking a parallel contractual cofinancing from Agence Française de Développement (AFD) in the amount equivalent to $70 million (the AFD subprojects) to cover outputs (v) and (vi). ADB will administer the cofinanced loan. The AFD subprojects will be implemented with the support of a separate project design and supervision consultant engaged under the cofinanced funds. Implementation of the works will follow procurement procedures and guidelines of ADB, and all social, environmental, gender safeguards will also follow the requirements of the ADB. The coordination arrangements of this parallel contractual cofinancing will be detailed in a separate cofinancing agreement between ADB and AFD.

II.IMPLEMENTATION PLANS A. Project Readiness Activities 7. Project readiness activities and their expected completion dates are shown in Table 1.

Table 1: Project Readiness for Project 2

Milestones Responsible Mar Agency Jun Jul Aug Sep Oct Nov Dec 14

ADB loan appraisal ADB mission

√

RFP for MASC NWSDB completed and bidding

√

process started

Tendering of priority NWSDB √ works started

Loan negotiations ADB and √ Gov’t

ADB Management ADB √ approval

Loan signing

Government legal AGO √ opinion provided

Government budget MWSD, √ inclusion MLGPC

Loan effectiveness ERD √ ADB= Asian Development Bank, MASC= management advisory and supervision consultant, MWSD= Ministry of Water Supply and Drainage, NWSDB= National Water Supply and Drainage Board, RFP= request for proposals.

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B. Overall Project Implementation Plan 8. The overall implementation plan for Project 1 is shown in Figure 1.

Figure 1: Overall Project Implementation Plan – Project 1

9. The overall implementation plan for Project 2 is shown in Figure 2.

Figure 2: Overall Project Implementation Plan – Project 2

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III. PROJECT MANAGEMENT ARRANGEMENTS A.Project Implementation Organizations –Roles and Responsibilities

10. The Program Steering Committee (PSC), the highest oversight committee set up under Project 1, will monitor, guide and ensure that all projects under the Investment Program, including Project 2, are managed, implemented and completed as agreed and on time. The PSC is chaired by the Secretary to the Treasury (ST), with members including senior officials from the Ministry of Finance and Planning, the Ministry of Megapolis and Urban Development (MOM&WD), the Chairman of the Board of NWSDB and Municipal Commissioner of the CMC, and the Project Directors. To provide ministerial-level oversight and guidance, there are two Ministerial Project Committees (MPCs) at the Ministry of City Planning and Water Supply (MCPWS) and the MLGPC, and are chaired by their respective Secretaries. Additionally, to provide more frequent guidance and operational coordination on implementation, there are Operational Coordination Committees that sit below the MPCs also in the respective ministries, jointly chaired by the Additional Secretaries of the MCPWS and MOM&WD, and provide guidance on a more frequent basis on operational matters.

11. Like Project 1, MCPWS will be the EA and NWSDB will be the IA for water supply investments under Project 2. The PMU established in NWSDB to manage Project 1 will also be responsible for managing and implementing water supply investments under the proposed Project 2. The PMU will have one full-time Project Director with overall responsibility for project coordination and management and for financial matters. There will be three project implementing units (PIUs), each headed by Deputy Project Directors, one for the Investment Program, and the two for the AFD co-financed subprojects. The Project Director will delegate all powers relating to project implementation to the respective Deputy Project Directors, to facilitate smooth and effective project implementation. The PMU has already mobilized 34 core staff (one Project Director, one Deputy Project Director, four Chief Engineers, four Senior Engineers, one Social Development and Safeguards Officer, one Procurement Specialist, two Project Coordinators and support staff). Staffing in the PMU will be increased to suit requirements as the pace of implementation accelerates, and is expected to reach about 142 (detail list of staff in PMU under NWSDB is in Appendix 9). 12. MLGPC will be EA and CMC will be IA for wastewater investments under Project 2. The PMU established in CMC, will be responsible for wastewater interventions. The PMU has all core staff, including the Project Director, three Deputy Project Directors and about 20 other staff. 13. The PMUs will have full responsibility for all aspects of day-to-day project management, project implementation, operation and maintenance, and cost recovery. The PMUs, headed by a full-time project director, will be responsible for (i) preparing and implementing the project; (ii) reporting; (iii) managing consultants; (iv) managing disbursement of funds and recovering loan repayments; and (v) conducting overall project monitoring and evaluation, including preparation of necessary project reports, with the help of consultants. 14. Roles and responsibilities of key project stakeholders are described in Table 2.

Table 2: Roles and Responsibilities of key Project Stakeholders Project Implementation Management Roles Organizations and Responsibilities Program Steering Chaired by Secretary to the Treasury Committee (PSC) Meets every six months

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Project Implementation Management Roles Organizations and Responsibilities

Reviews implementation progress of the MFF Facilitates internal approval procedures Resolves high-level structural impediments to help smooth implementation Ministerial Project Ministerial Project Committee for Water Supply Committees (MPCs) Chaired by Secretary, MCPWS)

Ministerial Project Committee for Wastewater (Chaired by Secretary, MLGPC) Meets at least once every three months, and as required, to provide information on the project to the members, resolve project-related issues pertaining to other departments and make policy recommendations Operational Coordination Chaired Jointly by Additional Secretaries of the

Committee Ministries of Water Supply and Drainage and Megapolis and Western Development

Meets every month or as necessary Resolves problems arising during construction including road crossings, and permissions from traffic police, utilities, etc.,

Executing Agencies MCPWS and MLGPC Provides overall strategic planning, guidance and management support to the project Coordinates with other ministries on matters under their jurisdictions on project issues Ensures availability of adequate counterpart funding Supports the overall project implementation Coordinates with the NWSDB/CMC to ensure smooth project implementation Chairs the Project Steering Committees (PSCs) and makes key policy level decisions to facilitate project implementation

Implementing Agency, Through its PMU: NWSDB Is main point of contact with ADB and MWSD on all

project implementation matters Facilitates decentralization of functions to WC-RSC Provides overall management support to the WC- RSC to facilitate project implementation Functions as conduit for counterpart funds flow from Ministry of Finance to WC-RSC Plans, manages and implements all project activities on a day-to-day basis Engages management advisory and supervision consultant (MASC) and other consultants for water supply Implements NRW reduction in a part of the priority critical areas Leads, oversees and manages the design and bidding process for civil works contracts, signs and administers the contracts, and supervises the civil works Implements GAP with consultants’ support

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Project Implementation Management Roles Organizations and Responsibilities

Ensures and monitors compliance of loan covenants, including safeguards Submitsprogressandmonitoringreports, withdrawal applications, statement of expenditure and other reports in a timely manner to ADB and the Government. Implementing Agency Through its PMU CMC Is the point of contact with ADB and MLGPC on all

project implementation matters Plans, manages and implements all project activities on a day-to-day basis. Engages consultants to prepare the detail design and bidding documents. Ensures and monitors compliance of loan covenants, including safeguards Submits progress reports, monitoring reports, withdrawal applications, statements of expenditure and other related information in a timely manner to the ADB and Government CMC= Colombo Municipal Council, GAP= Gender Action Plan, WC RSC = West Central Regional Support Center, NWSDB = National Water Supply and Drainage Board, MOD&UD = Ministry of Defence and Urban Development, MWSD = Ministry of Water Supply and Drainage, PMU = Project Management Unit.

B. Key Persons Involved in Implementation

Executing Agency Ministry of City Planning and Water Supply (MCPWS) D.G.M.V. Hapuarachchi, Secretary Position: Chairman of Steering Committee for Water Supply Telephone: 94 11 20808 140 Email address: [email protected]

Ministry of Local Government and Province Councils (MLGPC) H.T. Kamal Pathmasiri, Secretary Telephone: +94 11 2399673 Email address: [email protected], Office Address: 330, Union Place, Colombo 2, Sri Lanka Implementing Agency (Water National Water Supply and Drainage Board (NWSDB) Suply) D.U. Sumanasekara General Manager xxx Telephone: +94 11 2635990 E-mail: [email protected]

West Central Regional Support Center (WC-RSC) of NWSDB Sunith Perera Deputy General Manager Regional Support Center (West Central) Telephone: +94 11 2887151 E-mail: [email protected]

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S. A. Rasheed Project Director, PMU Telephone: +94 11 2513177 Email address: [email protected]

Implementing Agency Colombo Municipal Council (CMC) (Wastewater) L.R.L. Wickramarathne Position: Municipal Commissioner Telephone: +94 11 2678425Email address: [email protected] Office Address: Colombo Municipal Council, Town Hall, Colombo 7, Sri Lanka

A.G. Irshadh Project Director, PMU Telephone: +94 11 2665325 Email address: [email protected]

ADB

Division Director Staff Name: Sekhar Bonu Position : Director, SAUW, SARD, ADB Telephone No.+63 2 632 6858 Email address: [email protected]

Mission Leader Staff Name: Kamal Dahanayake

Position: Senior Project Officer, Urban and Water – Sanitation, SLRM,

ADB Telephone No. +94114455455 Email address: [email protected]

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C. Project Organization Structure

15. Project implementation arrangements and organizational structure, for Projects 2 are shown in Figure 2.

Figure 2: Organizational Chart

Government of Sri Lanka

ADB

Program Steering Commitee

Ministerial Project

Committee MCPWS

Ministerial Project

Committee MLGPC

Operational Steering Committee

Operational

Steering Committee

MCPWS - Executing MLGPC - Executing Agency Agency

CDTA NRW NWSDB- CMC - Specialist and Implementing Implementing

Team Agency Agency

MASC PMU PMU DSIDC

ADB= Asian Development Bank, CMC= Colombo Municipal Council, CDTA= capacity development technical assistance, DSIC= design, supervision, and institutional consultant, MASC= management advisory and supervision consultant, MLGPC= Ministry of Local Government and Provincial Councils, MCPWS= Ministry of City Planning and Water Supply, NRW= non-revenue water, NWSDB= National Water Supply and Drainage Board, PMU= program management unit.

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IV. COSTS AND FINANCING

A. Project 2 and AFD Cofinancing Subprojects Investment and Financing Plans

16. Project 1 cost estimates are shown in Table 3.

Table 3: Project 1 Cost Estimate (US$ million) Item Amount a, b

A. Base Cost 1. Water supply rehabilitation and NRW reduction 67.55 2. Institutional reform and capacity building 7.29 3. Implementation support 3.41 Subtotal (A) 78.25B. Taxes and Duties c 15.73C. Contingencies d 13.29D. Financing Charges During Implementation e 4.73 Total (A+B+C+D) 112.00

a Exchange rate of $1 = LKRs125 is used.

b In mid-2012 prices.

c Taxes and duties computed at 32% for imported goods and at 12% for domestic goods and services. Taxes and duties are the responsibility of the government. d Physical contingencies computed at 12.5% for civil works and 10% for equipment; price contingency computed at 7% for domestic goods and 2% for imported goods. e Includes interest and commitment charges. Interests during construction for Asian Development Bank loan(s) are computed at 1.5% per year for ADB loan(s) from ordinary capital resources and 1.0% per year for ADB loan(s) from Special Funds resources. Commitment charges for ADB loan(s) from ordinary capital resources are computed at 0.15% per year.

Source: ADB estimates.

17. Project 2 cost estimates are shown in Table 4.

Table 4: Project 2 Cost Estimate (US$ million) Item Amount a, b

B. Base Cost 1. Water supply rehabilitation and NRW reduction 65.69 2. Wastewater Investment preparation 2.61 3. Institutional reform and capacity building 4.39 4. Implementation support 8.67 Subtotal (A) 81.36B. Taxes and Duties c 19.76C. Contingencies d 13.39D. Financing Charges During Implementation e 3.50 Total (A+B+C+D) 118.00


b In March 2013 prices.

c Taxes and duties computed at 32% for imported goods and at 12% for domestic goods and services. Taxes and duties are the responsibility of the government. d Physical contingencies computed at 10% for civil works and equipment; price contingency computed at 6% for domestic goods and 2% for imported goods, assuming purchasing power parity of USD and LKR for foreign exchange forecast. e Includes interest and commitment charges. Interests during construction for Asian Development Bank loan(s) are computed at 1.6% per year based on LIBOR 5-year fixed swap rate plus ADB’s contractual spread and a maturity premium for loans from ordinary capital resources and 2.0% per year for loan from Special Funds resources. Commitment charges for ADB loan from ordinary capital resources are computed at 0.15% per year.


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18. Leveraging the MFF as a platform to implement the Government’s sector investment plan, the Government invited Agence Française de Développement (AFD) to provide parallel contractual co-financing to bridge the investment gap not covered by the MFF. The total cost of the project financed by AFD is shown in Table 5.

Table 5: Cost Estimate for AFD Cofinancing (US$ million)

Item Original Amount Revised Amount A. Base Cost 1. Ambatale Energy Saving Project 48.54 53.18 2. Town East Colombo Water Supply Improvement 36.88 0.00 3. Implementation Support 6.52 3.51 Subtotal (A) 89.67 56.69

B. Taxes and Duties 24.57 14.79C. Contingencies 12.69 22.69D. Financing Charges During Implementation 7.80 5.42 Total (A+B+C+D) 137.00 100.00


b In March 2013 prices.

c Taxes and duties computed at 32% for imported goods and at 12% for domestic goods and

services. Taxes and duties are the responsibility of the government. d Physical contingencies computed at 3% for civil works and equipment; price contingency computed

at 6% for domestic goods and 2% for imported goods.

e Includes interest and commitment charges. Interests during construction for AFD loan is estimated at 3.5% per year. Commitment charges and other front-end charges for AFD loan are estimated at 0.5% per year.


19. The Government has submitted the second periodic financing request (PFR)5 in line with the signed FFA. The Government has requested a loan of $70 million from ADB’s OCR and $18 million equivalent from the Asian Development Fund (ADF) to finance part of the cost of Project 2. The OCR loan will have a 26-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year (the interest and other charges during construction to be capitalized in the loan), and such other terms and conditions set forth in the draft loan and project agreements. The Government has opted for a straight-line repayment option, the average loan maturity is 15.75 years and the maturity premium payable to ADB is 1% per annum. The ADF loan will have a 25-year term, including a grace period of 5 years, an interest rate of 2.0% per annum charged throughout the loan maturity, and such other terms and conditions set forth in the draft loan and project agreements. 20. The Government will contribute $30 million, or 25% of the total Project 2 cost to finance taxes and duties, resettlement costs, and part of the civil works and recurrent costs. It will relend relevant portions of the loan proceeds to NWSDB on a 50% grant and 50% loan basis for financing capital investment costs in the water subsector, and to CMC on a 82.5% grant and 17. 5% loan basis in the wastewater subsector, in accordance with established procedures. These arrangements will be described in subsidiary financing agreements, satisfactory to ADB, to be signed and effective by loan effectiveness. The Government will assume the foreign exchange risk.

B. Project 2 Detailed Cost Estimates by Expenditure Category

Table 6: Project 2 - Detailed Cost Estimates by Category (US$ million) Items Gross Net Tax

A. Investment Costs 1 Civil Works 83.79 65.90 17.89

a. Civil Works NWSDB 80.45 63.29 17.16

b. Civil Works CMC 3.34 2.61 0.73

2 Equipment 3.17 2.38 0.79

3 Resettlement 0.02 0.02 -

4 Project Management and Capacity Development 10.86 9.78 1.08

a. PMDS – NWSDB 3.26 2.89 0.37

b. PMDS – CMC 6.10 5.39 0.71

c. Training and Workshops - NWSDB 1.50 1.50 -

Subtotal (A) 97.84 78.08 19.76 B. Recurrent Costs Incremental Administrative Costs 3.28 3.28 -

Subtotal (B) 3.28 3.28 -

Total Base Cost 101.11 81.36 19.76

C. Contingencies 1 Physical Contingencies 6.85 6.85 -

2 Price Contingencies 6.54 6.54 -

Subtotal (C) 13.39 13.39 -D. Financing Charges During Implementation

Interest and Commitment Charges 3.50 3.50 -

Subtotal (D) 3.50 3.50 -

Total Project Cost (A+B+C+D) 118.00 98.24 19.76

% Total Project Cost 100.0% 83.3% 16.7%

* Total may not add correctly due to rounding

off. Source: ADB estimates.

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Table 7: AFD Cofinancing - Detailed Cost Estimates by Category (US$ million)

Item Original Revised Gross Net Tax Gross Net Tax

A. Investment Costs 1. Civil Works 108.46 85.13 23.33 66.4 52.12 14.28 2. Equipment 1.42 1.07 0.35 0.98 0.74 0.24 3. Land Acquisition and Resettlement 0.00 0.00 0.00 0.32 0.32 0.00 4. Project Management 6.75 5.87 0.88 2.66 1.98 0.27 Subtotal (A) 116.63 92.06 24.57 70.36 55.16 14.79

B. Recurrent Costs Incremental Administrative Costs 0.00 0.00 0.00 1.53 1.53 0.00 Subtotal (B) 0.00 0.00 0.00 1.53 1.53 0.00 Total Base Cost 116.63 92.06 24.57 71.89 57.10 14.79

C. Contingencies 1. Physical Contingencies 9.21 9.21 0.00 10.09 10.09 0.00 2. Price Contingencies 3.48 3.48 0.00 12.60 12.60 0.00 Subtotal (C) 12.68 12.68 0.00 22.69 22.69 0.00

D. Financing Charges During Implementation

Interest and Commitment Charges 7.79 7.79 0.00 5.42 5.42 0.00 Subtotal (D) 7.79 7.79 0.000 5.42 5.42 0.00 Total Project Cost (A+B+C+D) 137.0 112.54 24.57 100.00 85.21 14.79 % of Total Cost 100.00% 82.08% 17.92% 100.00% 85.21% 14.79%

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C. Allocation and Withdrawal of Loan Proceeds

21. The allocation of loan proceeds for Project 1 is given in Table 8, and Table 9.

Table 8: Indicative Allocation and Withdrawal of ADB OCR Loan Proceeds

Category ADB Amount Allocated $

Number Item Category

Percentage and Basis for Withdrawal

1 Civil Works NWSDB 65,796,000 72% Percent of total expenditure claimed

2 Interests 4,204,000 100% Percent of amount due

3 Unallocated 0

Total 70,000,000.0

Table 9: Indicative Allocation and Withdrawal of ADB COL Loan Proceeds

Category ADB Number Item Amount Allocated (SDR) Percentage and Basis for Withdrawal

Category 1 Material and equipment

2,412,503 54%Percentage of total expenditures claimed

2 Consulting services. NGO contracts 4,198,219 100%Percentage of total expenditures, excluding taxes and duties

3 Training and workshops 635,166 100%Percentage of total expenditures, excluding taxes and duties

4 Incremental recurrent costs


5 Interest charge

343,000 100%Percentage of amounts due

6 Unallocated

0

9,148,000 Note: The original schedule 3 costing tables were changed based on the reallocation approved on 13 June 2018.

22. The allocation of loan proceeds for Project 2 is given in Table 10, and Table 11.


Category ADB Number Item Amount Allocated ($) Percentage and Basis for Withdrawal

Category 1 Works


2 Interest and Commitment Charges

2,667,000 100%Percent of amount due

3 Unallocated 0 Percentage of total expenditures, excluding taxes and duties

Total

70,000,000

Note: The original schedule 3 costing tables were changed based on the reallocation approved on 13 June 2018.

16


Category ADB Number Item Amount Allocated (SDR) Percentage and Basis for

Withdrawal Category Sub - category 1 Civil Works CMC 1,474,000 67% Percentage of total expenditures

claimed 2 Equipment 1,151,000 55% Percentage of total expenditures

claimed 3 Consulting Services

Percentage of total expenditures

claimed 3a NWSDB 1,896,000 89% Percentage of total expenditures

claimed 3b CMC 3,050,000 76% Percentage of total expenditures

claimed 4 Training and Workshops 987,000 100% Percentage of total expenditures

claimed* 5 Project Administration NWSDB 1,584,000 74% Percentage of total expenditures

claimed 6 Interests 548,000 100% 7 Unallocated 1,137,000 Percent of amount due

7a NWSDB 614,151 7b CMC 522,849

Total 11,827,000 * Exclusive of taxes and duties imposed in the Borrower’s territory.

14

D. Detailed Cost Estimates by Financier

Table 12: Project 1 Detailed Cost Estimates by Financier ($ million)

ADB OCR ADB ADF Government TotalItem Amount% Amount % Tax Non tax Total % Cost

1. Investment Costs 1. Civil Works 55.24 71.6% 0.00 0.0% 13.62 8.31 21.93 28.4% 77.17

2. Mechanical and Equipment 0.00 0.0% 2.84 53.8% 1.33 1.11 2.44 46.2% 5.28

3. Resettlement 0.00 0.0% 0.00 0.0% 0.00 0.05 0.05 100.0% 0.05

4. Capacity Development 0.00 0.0% 7.29 90.3% 0.78 0.00 0.78 9.7% 8.07

a. Project Management and Design Supervision 0.00 0.0% 6.30 89.0% 0.78 0.00 0.78 11.0% 7.08

b. Training and Workshops 0.00 0.0% 0.99 100.0% 0.00 0.00 0.00 0.0% 0.99

Subtotal (A) 55.24 61.0% 10.13 11.2% 15.73 9.47 25.20 27.8% 90.57 2. Recurrent Costs Incremental Administrative Costs 0.00 0.0% 2.45 71.8% 0.00 0.96 0.96 28.2% 3.41

Subtotal (B) 0.00 0.0% 2.45 71.8% 0.00 0.96 0.96 28.2% 3.41 Total Base Cost 55.24 58.8% 12.58 13.4% 15.73 10.43 26.16 27.8% 93.98

C. Contingencies 1. Physical Contingencies 6.90 82.8% 0.28 3.4% 0.00 1.15 1.15 13.8% 8.33

2. Price Contingencies 3.66 73.8% 0.61 12.3% 0.00 0.69 0.69 13.9% 4.96

Subtotal (C) 10.56 79.4% 0.90 6.7% 0.00 1.84 1.84 13.8% 13.29 D Financing Charges During Implementation

Interest and Commitment Charges 4.20 88.9% 0.52 11.1% 0.00 0.00 0.00 0.0% 4.73

Subtotal (D) 4.20 88.9% 0.52 11.1% 0.00 0.00 0.00 0.0% 4.73Total Project Cost (A+B+C+D) 70.00 62.5% 14.00 12.5% 15.73 12.27 28.00 25.0% 112.00

% Total Project Cost 62.5% 12.5% 25.0% 100% ADB= Asian Development Bank, ADF= Asian Development Fund, OCR= ordinary capital resources. Note: Figures may not add up to the totals given because of rounding. Source: ADB.2012. Facility Administration Manual for Multitranche Financing Facility for the Greater Colombo Water and Wastewater Management Improvement Investment Program.Manila.

18

16

Table 13: Project 1 Detailed Cost Estimates by Output ($ million)

Output 1 Output 2 Output 3 Total Cost Items Amount% of Total Amount% of Total Amount% of Total

1. Investment Costs 1. Civil Works 77.17 100% 0.00 0% 0.00 0% 77.17

2. Mechanical and Equipment 5.28 100% 0.00 0% 0.00 0% 5.28

3. Resettlement 0.05 100% 0.00 0% 0.00 0% 0.05

4. Capacity Development 0.00 0% 8.07 100% 0.00 0% 8.07

a. Project Management and Design Supervision 0.00 0% 7.08 100% 0.00 0% 7.08

b. Training and Workshops 0.00 0% 0.99 100% 0.00 0% 0.99

Subtotal (A) 82.50 91% 8.07 9% 0.00 0% 90.57 1 Recurrent Costs

Incremental Administrative Costs 0.00 0% 0.00 0% 3.41 100% 3.41

Subtotal (B) 0.00 0% 0.00 0% 3.41 100% 3.41 Total Base Cost 82.50 88% 8.07 9% 3.41 4% 93.98

C. Contingencies 1. Physical Contingencies 7.94 95% 0.40 5% 0.00 0% 8.33

2. Price Contingencies 4.21 85% 0.35 7% 0.39 8% 4.96

Subtotal (C) 12.15 91% 0.75 6% 0.39 3% 13.29 2 Financing Charges During Implementation

Interest and Commitment Charges 4.20 89% 0.37 8% 0.16 3% 4.73

Subtotal (D) 4.20 89% 0.37 8% 0.16 3% 4.73Total Project Cost (A+B+C+D) 98.85 88% 9.18 8% 3.96 4% 112.00

% Total Project Cost 88% 8% 4% 100% Note: Figures may not add up to the totals given because of rounding.

Source: ADB.2012. Facility Administration Manual for Multitranche Financing Facility for the Greater Colombo Water and Wastewater Management Improvement Investment Program.Manila.

Table 14: Project 1 Detailed Cost Estimates by Year ($ million)

Item Total Cost 2013 2014 2015 2016 2017 3 Investment Costs

1 Civil Works 63.55 6.15 31.39 26.01 0.00 0.00

2 Mechanical and Equipment 3.95 1.40 2.55 0.00 0.00 0.00

3 Resettlement 0.05 0.00 0.05 0.00 0.00 0.00

4 Capacity Development 7.29 1.37 3.16 2.27 0.49 0.00

a. Project Management and Design Supervision 6.30 0.92 3.12 1.77 0.49 0.00

b. Training and Workshops 0.99 0.45 0.05 0.50 0.00 0.00

5 Taxes 15.73 1.86 7.92 5.90 0.06 0.00

Subtotal (A) 90.57 10.77 45.07 34.17 0.55 0.00 2 Recurrent Costs Incremental Administrative Costs 3.41 0.68 0.68 0.68 0.68 0.68

Subtotal (B) 3.41 0.68 0.68 0.68 0.68 0.68 Total Base Cost 93.98 11.46 45.76 34.85 1.23 0.68C. Contingencies 1 Physical Contingencies 8.33 0.91 4.17 3.25 0.00 0.00

2 Price Contingencies 4.96 0.24 1.98 2.47 0.13 0.14

Subtotal (C) 13.29 1.15 6.15 5.72 0.13 0.14 4. Financing Charges

1 Interest During Implementation 4.39 0.13 0.71 1.17 1.18 1.19

2 Commitment Charges 0.33 0.10 0.07 0.05 0.05 0.05

Subtotal (D) 4.73 0.23 0.79 1.22 1.24 1.24 Total Project Cost (A+B+C+D) 112.00 12.84 52.70 41.80 2.60 2.06 % Total Project Cost 100% 11% 47% 37% 2% 2% Note: Figures may not add up to the totals given because of rounding.

Source: ADB.2012. Facility Administration Manual for Multitranche Financing Facility for the Greater Colombo Water and Wastewater Management Improvement Investment Program.Manila.

20

Table 15: Project 2 - Detailed Cost Estimates by Financier (US$, million) OCR ADF Government Total Non-

Item $ % $ % Tax TaxTotal % Costs A. Investment Costs

1 Civil Works 57.12 68.2% 2.24 2.7% 17.89 6.54 24.43 29.2% 83.79

a. Civil Works NWSDB 57.12 71.0% 0.00 0.0% 17.16 6.17 23.33 29.0% 80.45

b. Civil Works CMC 0.00 0.0% 2.24 67.2% 0.73 0.36 1.09 32.8% 3.34

2 Equipment – NWSDB 0.00 0.0% 1.75 55.3% 0.79 0.63 1.42 44.7% 3.17

3 Resettlement – NWSDB 0.00 0.0% 0.00 0.0% 0.00 0.02 0.02 100.0% 0.02

4 Project Management and Capacity Development 0.00 0.0% 9.03 83.2% 1.08 0.75 1.83 16.8% 10.86

a. PMDS – NWSDB 0.00 0.0% 2.89 88.6% 0.37 0.00 0.37 11.4% 3.26

b. PMDS – CMC 0.00 0.0% 4.64 76.1% 0.71 0.75 1.46 23.9% 6.10

c. Training and Workshops – NWSDB 0.00 0.0% 1.50 100.0% 0.00 0.00 0.00 0.0% 1.50

Subtotal (A) 57.12 58.4% 13.02 13.3% 19.76 7.94 27.70 28.3% 97.84 B. Recurrent Costs

Incremental Administrative Costs - NWSDB 0.00 0.0% 2.41 73.6% 0.00 0.86 0.86 26.4% 3.28

Subtotal (B) 0.00 0.0% 2.41 73.6% 0.00 0.86 0.86 26.4% 3.28

Total Base Cost 57.12 56.5% 15.44 15.3% 19.76 8.80 28.56 28.2% 101.11

C. Contingencies

1 Physical Contingencies 5.73 83.7% 0.40 5.9% 0.00 0.72 0.72 10.5% 6.85

2 Price Contingencies 4.49 68.6% 1.33 20.3% 0.00 0.72 0.72 11.0% 6.54

Subtotal (C) 10.22 76.3% 1.73 12.9% 0.00 1.44 1.44 10.8% 13.39 D. Financing Charges During Implementation

Interest and Commitment Charges 2.67 76.2% 0.83 23.8% 0.00 0.00 0.00 0.0% 3.50

Subtotal (D) 2.67 76.2% 0.83 23.8% 0.00 0.00 0.00 0.0% 3.50

Total Project Cost (A+B+C+D) 70.00 59.3% 18.00 15.3% 19.76 10.24 30.00 25.4% 118.00

% Total Project Cost 59.3% 15.3% 25.4% 100% * Total may not add correctly due to rounding off.


15

Table 16: AFD Cofinancing – Detailed Cost Estimates by Financier (US$, million)

AFD Government Total Non- Item $ % Tax Tax Total % Costs

A. Investment Costs 1 Civil Works 52.12 78.49% 14.28 0.00 14.28 21.51% 66.4

2 Equipment 0.74 75.51% 0.24 0.00 0.54 24.49% 0.98

3 Land Acquisition and Resettlement 0.00 0.00% 0.00 0.32 0.32 100.00% 0.32

4 Project Management 2.39 89.85% 0.27 0.00 0.27 10.15% 2.66

Subtotal (A) 55.25 78.52% 14.79 0.32 15.11 21.48% 70.36 B. Recurrent Costs Incremental Administrative Costs 1.37 89.54% 0.00 0.16 0.16 10.46% 1.53

Subtotal (B) 1.37 89.54% 0.00 0.16 0.16 10.46% 1.53 Total Base Cost 56.62 75.79% 0.00 0.16 15.27 100.00% 71.89

C. Contingencies 1 Physical Contingencies 5.66 98.70% 0.00 4.43 4.43 43.90% 10.09

2 Price Contingencies 7.73 97.00% 0.00 4.87 4.87 38.65% 12.60

Subtotal (C) 13.39 98.23% 0.00 9.30 9.30 40.99% 22.69 D. Financing Charges During Implementation

Interest and Commitment Charges 0.00 0.00% 0.00 5.42 5.42 100.00% 5.42

Subtotal (D) 0.00 0.00% 0.00 5.42 5.42 100.00% 5.42 Total Project Cost (A+B+C+D) 70.00 74% 14.79 15.20 30.00 30% 100.00

% Total Project Cost 70% 30% 100% *Total may not add correctly due to rounding off.

Source: Financing agreement between AFD and government

22

16

Table 17: Project 2 and AFD Cofinancing Combined – Detailed Cost Estimates by Financier (US$, million) OCR ADF AFD Government Total

Non-

Item $ % $ % $ % Tax Tax Total % Costs A. Investment Costs

1 Civil Works 57.12 28.73% 2.24 1.13% 52.12 26.21% 39.71 7.92 47.63 23.96% 198.82

a. Civil Works NWSDB 57.12 29.33% 0 0.00% 52.12 26.76% 38.98 7.56 46.54 23.90% 194.76

b. Civil Works CMC 0 0.00% 2.24 55.17% - 0.00% 0.73 0.36 1.09 26.85% 4.06

2 Equipment 0 0.00% 1.75 32.53% 0.74 13.75% 1.13 0.63 1.76 32.71% 5.38 Land Acquisition and

3 Resettlement 0 0.00% 0 0.00% - 0.00% - 0.02 0.02 100.00% 0.02 Project Management and

4 Capacity Development 0 0.00% 9.03 38.12% 2.39 10.09% 5.76 0.75 6.51 27.48% 23.69

a. PMDS – NWSDB 0 0.00% 2.89 18.79% 2.39 15.54% 5.05 - 5.05 32.83% 15.38

b. PMDS – CMC 0 0.00% 4.64 30.17% - 0.00% 0.71 0.75 1.46 9.49% 6.81 c. Training and Workshops – NWSDB 0 0.00% 1.5 100.00% - 0.00% - - - 0.00% 1.50

Subtotal (A) 57.12 25.06% 13.02 5.71% 55.25 24.24% 46.60 9.32 55.92 24.54% 227.91

B. Recurrent Costs Incremental Administrative Costs 0 0.00% 2.41 51.94% 1.37 29.53% - 0.86 0.86 18.53% 4.64

Subtotal (B) 0 0.00% 2.41 51.94% 1.37 29.53% - 0.86 0.86 18.53% 4.64

Total Base Cost

57.12

24.56%

15.43

6.64%

56.62

24.35%

46.60 10.18 56.78 24.42%

232.55

C. Contingencies

1 Physical Contingencies 5.73 45.37% 0.4 3.17% 5.66 44.81% - 0.84 0.84 6.65% 12.63

2 Price Contingencies 4.49 31.25% 1.33 9.26% 7.73 53.79% - 0.82 0.82 5.71% 14.37

Subtotal (C) 10.22 37.85% 1.73 6.41% 13.39 49.59% - 1.66 1.66 6.15% 27.00 Financing Charges During

D. Implementation Interest and Commitment Charges 2.67 23.65% 0.83 7.35% 0.00 0.00% - 7.79 7.79 69.00% 11.29

Subtotal (D) 2.67 23.65% 0.83 7.35% 0.00 0.00% - 7.79 7.79 69.00% 11.29 Total Project Cost (A+B+C+D) 70.01 31.22% 17.99 8.02% 70.001 31.21% 46.60 19.63 66.23 29.54% 224.23

% Total Project Cost

31.22%

8.02%

31.21%

29.54%

* Total may not add correctly due to rounding off.

1 Based on the AFD and Government financing agreement. All other figures remains same as the original PAM.

17

E. Detailed Cost Estimates by Outputs/Components

Table 18: Project 2 – Detailed Cost Estimates by Outputs (US$, million) Output 1 Output 2 Output 3 Output 4 Total

Wastewater Implementation NRW Project Project Capacity Building Support

Items $ % $ % $ % $ % Costs

A. Investment Costs

1 Civil Works 80.45 96.0% 3.34 4.0% 0.00 0.0% 0.00 0.0% 83.79

2 Equipment 3.17 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 3.17

3 Resettlement 0.02 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.02

4 Project Management 0.00 0.0% 0.00 0.0% 4.76 43.8% 6.10 56.2% 10.86

a. PMDS Consultancy 0.00 0.0% 0.00 0.0% 3.26 34.8% 6.10 65.2% 9.36

b. Training and Workshops 0.00 0.0% 0.00 0.0% 1.50 0.0% 0.00 0.0% 1.50

Subtotal (A) 83.64 85.5% 3.34 3.4% 4.76 4.9% 6.10 6.2% 97.84

B. Recurrent Costs

Incremental Administrative Costs 0.00 0.0% 0.00 0.0% 0.00 0.0% 3.28 100.0% 3.28

Subtotal (B) 0.00 0.0% 0.00 0.0% 0.00 0.0% 3.28 100.0% 3.28

Total Base Cost 83.64 82.7% 3.34 3.3% 4.76 4.7% 9.38 9.3% 101.11

C. Contingencies

1 Physical Contingencies 6.35 92.7% 0.09 1.3% 0.14 2.1% 0.27 3.9% 6.85

2 Price Contingencies 4.97 76.1% 0.23 3.6% 0.53 8.2% 0.80 12.2% 6.54

Subtotal (C) 11.32 84.6% 0.33 2.4% 0.68 5.0% 1.06 7.9% 13.39

D. Financing Charges During Implementation

Interest and Commitment Charges 2.67 76.2% 0.16 4.5% 0.23 6.5% 0.45 12.8% 3.50

Subtotal (D) 2.67 76.2% 0.16 4.5% 0.23 6.5% 0.45 12.8% 3.50

Total Project Cost (A+B+C+D) 97.63 82.7% 3.82 3.2% 5.66 4.8% 10.89 9.2% 118.00

% Total Project Cost 82.7% 3.2% 4.8% 9.2% 100.0%

* Total may not add correctly due to rounding off.


24

18

I. Detailed Cost Estimates by Year

Table 19: Project 2 – Detailed Cost Estimates by Year (US$, million) Item Total 2014 2015 2016 2017 2018

A. Investment Costs 1 Civil Works 83.79 2.20 28.91 28.97 23.70 0.00

2 Equipment 3.17 0.05 2.44 0.68 0.00 0.00

3 Resettlement 0.02 0.01 0.01 0.00 0.00 0.00

4 Project Management 10.86 1.08 3.63 3.55 2.09 0.51

a. Project Management and Design Supervision 9.36 1.08 2.61 3.12 2.04 0.51

b. Training and Workshops 1.50 0.00 1.02 0.43 0.05 0.00

Subtotal (A) 97.84 3.34 34.99 33.21 25.79 0.51 B. Recurrent Costs Incremental Administrative Costs 3.28 0.66 0.66 0.66 0.66 0.66

Subtotal (B) 3.28 0.66 0.66 0.66 0.66 0.66

Total Base Cost 101.11 3.99 35.65 33.86 26.44 1.17

C. Contingencies 1 Physical Contingencies 6.85 0.18 2.47 2.34 1.86 0.00

2 Price Contingencies 6.54 0.15 1.73 2.24 2.22 0.20

Subtotal (C) 13.39 0.33 4.20 4.58 4.08 0.20 D. Financing Charges

1 Interest During Implementation 3.19 0.06 0.59 1.08 1.46 0.00

2 Commitment Charges 0.31 0.10 0.09 0.07 0.05 0.00

Subtotal (D) 3.50 0.17 0.67 1.15 1.51 0.00

Total Project Cost (A+B+C+D) 118.00 4.49 40.52 39.59 32.03 1.36

% Total Project Cost 100.0% 3.8% 34.3% 33.5% 27.1% 1.2%

* Total may not add correctly due to rounding off. Source:

ADB estimates.

II. Contract and Disbursement S-Curve 23. Figures 3 and 4 show contract awards and disbursements for the OCR loan and the ADF loan for Project 1 and 5.6 and 7 show contract awards and disbursements for the OCR loan and the ADF loan for Project 2, as well as the combined contract awards and disbursements, in terms of percentages for Project 2, based on the likely cumulative contract awards and disbursements.

Figure 3: S-Curve for OCR Loan of $70 million

Figure 4: S-Curve for ADF Loan of $13 million2

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2013 2014 2015 2016 2017 2018 2019

Contract Awards Disbursements

$ m

illi

on

2 At time of approval the loan amount was $14 million. Due to exchange rate fluctuation the net loan amount as of 30

June is $ 13 million.

26


0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

2014 2015 2016 2017 2018 2019


$ m

illi

on

Figure 6: S-Curve for OCR Loan of $17 million3

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

2014 2015 2016 2017 2018 2019


$ m

illi

on

3 At time of approval the loan amount was $18 million. Due to exchange rate fluctuation the net loan amount as of 30

June is $ 13 million.

28

III. Fund Flow Diagram

Figure 8: Fund Flow from ADB to NWDB

Figure 9: Fund Flow from ADB to NWDB

30

V. FINANCIAL MANAGEMENT A. Financial Management Assessment

24. The financial management assessment (FMA) was conducted during the preparation for

the Investment Program6 on the respective implementing agencies and their Project Management Units (PMUs) for the water supply service improvement project and the wastewater improvement project. The summary of the salient findings of the FMA and the progress by NWSDB on the proposed recommendations are summarized below. The implementing agencies have sufficient experience to manage external-aid projects. While no major financial management issue has been identified during the implementation of the ongoing projects, delay by the Auditor General to complete annual audit of the project and NWSDB will cause non-compliance with the financial reporting requirement. Therefore, it is highly recommended that an independent auditor be separately engaged for the annual audit, in particular, for the project.

Table 20: Findings of the FMA and Progress by NWSDB on the Proposed Recommendations

Area of Assessment Findings Executing Agency and • The Executing Agency is the Ministry of City Planning and Water Supply Implementing Agency (MCPWS.

• The Implementing Agency for the water supply service improvement project is the National Water Supply and Drainage Board (NWSDB).

• The Implementing Agency for the wastewater improvement project is the Colombo Municipal Council (CMC).

Major Experiences of • NWSDB has developed extensive experience in implementing externally Implementing Agency funded projects. The average annual loan absorption was over $30 million

for the three years from 2010 to 2012. • CMC is currently implementing ADB Loan 2557 and Loan 2558. Under Project 2, approximately $8 million ADF loan fund will be deployed to CMC for procurement of equipment and engagement of consultants. Therefore, FMA for CMC and its PMU will be updated while preparing for the wastewater management project under the Investment Program. Fund Flow For NWSDB Arrangements • Fund flow for Project 2 will follow the existing fund flow arrangements for

Project 1. Direct payment, reimbursement and imprest account procedures will be applied for Project 2. • ADB disburses to the Government the OCR loan proceeds and the ADF loan proceeds to the respective loan imprest accounts maintained at the Central Bank of Sri Lanka by the Ministry of Water Supply and Drainage. The loan funds flow to two corresponding sub-accounts maintained by NWSDB for the respective OCR and ADF loans. • Expenditures are consolidated monthly by NWSDB and reimbursement claims are then referred to ADB through Treasury, Ministry of Finance, Colombo. • Government shall provide 50% of ADB loan proceeds as grant and 50% of ADB loan proceeds to NWSDB at 6% and other on-lending terms in accordance with relevant policies and consistent with the ADB loans. • Government provides counterpart funds through budgetary support. F ADB. 2012. Report and Recommendation of the President on a Proposed Multi-tranche Financing Facility to the Democratic Socialist Republic of Sri Lanka for the Greater Colombo Water and Wastewater Improvement Investment Program. Facility Administration Manual. Manila.

24

Area of Assessment Findings

For CMC • Fund flow for Project 2 will follow the existing fund flow arrangements for ADB Loan 2557 and Loan 2558. Direct payment, reimbursement and imprest account procedures will be applied for Project 2. • ADB disburses to the Government the ADF loan proceeds to the loan imprest account maintained at the Central Bank of Sri Lanka by the Ministry of Local Government and Provincial Councils. The loan funds flow to the corresponding sub-account maintained by CMC for the ADF loan. • Expenditures are consolidated monthly by CMC and reimbursement claims are then referred to ADB through Treasury, Ministry of Finance, Colombo. • Government shall provide 82.5% of ADB loan proceeds as grant and 17.5% of ADB loan proceeds to CMC at on-lending terms in accordance with relevant policies and consistent with the ADB loans. • Government provides counterpart funds through budgetary support.

Organization and • The accounting division of Western Central RSC has been fully staffed Staffing of Implementing with one chief accountant and three accounting staff. The chief accountant Agency reports to the Deputy General Manager (Finance).

• Decentralization of the accounting function is currently ongoing for Western Central RSC and is expected to complete by end of 2013. • The PMU for Project 1 has engaged a full time finance manager who has public accounting experience and is a chartered accountant. • Training of ADB disbursement methods was provided to the PMU staff in March 2013.

Accounting Policy and • The financial year is from 1 January to 31 December. The financial Procedure and statements are presented in local currency.

Information System • NWSDB accounts are maintained on accrual basis in accordance with Sri Lanka Accounting Standards. • The accounting system is fully computerized and financial statements including balance sheet, income statement and cash flow statement are generated through the computerized system. • NWSDB does not have an integrated computerized information system at the corporate level.

Safeguard over Assets • Identification and verification of assets to each RSC is currently ongoing. by Implementing All fixed assets located in the area covered by the RSC will be categorized Agency to the respective RSC.

Internal Audit in • The internal audit function of the NWSDB is headed by the Deputy General Implementing Agency Manager (DGM) for Internal Audit Department (IAD). The DGM is a

chartered accountant and reports directly to the Chairman of the Board. S/He has no line responsibilities and maintains functional independence within the organization. There are about 30 IAD staff located in Colombo, all with relevant accounting and auditing experience. • The IAD provides check and control over the operations of NWSDB and implements financial audit on transactions performed by employees to verify whether they are in compliance with established policies, guidelines and regulatory requirements.

• The IAD prepares annual audit plan and carries out audit in accordance with the plan. The IAD submit monthly audit reports and recommendations to the Chairman. The Chairman approves the internal audit reports and recommendations and follow-up actions are monitored by the IAD in the subsequent year. • The IAD also submits twice a year the internal audit summary to the

32

25

Area of Assessment Findings

Auditor General (AG) and assist the AG during the annual statutory audit.

External Audit of • In accordance with the provisions of the Finance Act (No. 38) 1971, the Implementing Agency Auditor General (AG) carries out the external audit and inspects accounts,

finances and the management of NWSDB and its projects. • There have been delays by the AG to issue audit reports for NWSDB. The audit report for FY2011 is still pending. However, extended delays in issuing audit reports for the projects are uncommon. • Effective FY2012, one additional superintendent is appointed to conduct annual statutory audit solely for the projects, whilst another superintendent carries out audit of NWSDB.

Reporting and • NWSDB prepares annual statements of accounts in accordance with the Monitoring in provisions of the Finance Act (No. 38) 1971. Implementing Agency • Income and expenditure statements are generated monthly for the

management to monitor actual results (current month and year-to-date) and analyze variances with budget. • For the time being, the RSCs prepare income statement exclusive of depreciation expenditures and are evaluated based on their operating margins. As RSCs are increasingly involved in investment decisions, including making proposals to Project Appraisal Committee for investment consideration, accounting for capital investment as well as asset utilization is necessary to improve accountability and performance evaluation of the RSCs. The current physical verification of assets to the RSC levels is expected to be completed by 2013. Transition into a computerized accounting system at RSCs will follow. After completion of such tasks, subsidiary level financial statements can be prepared at the RSC levels.

2. Disbursement

25. The Loans proceeds, including the AFD cofinanced loan, will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time), and detailed arrangements agreed upon between the Government and ADB. NWSDB and CMC will be responsible for: (i) preparing annual contract award and disbursement projections; (ii) requesting budgetary allocations for counterpart funds; (iii) collecting supporting documents; and (iv) preparing and sending withdrawal applications to ADB through Treasury, MOFP.

26. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS.

27. Project 2 will adopt the same disbursement procedures as Project 1, i.e.: (i) direct payment, (ii) reimbursement, and (iii) and imprest account for disbursing funds under Project 2. The following fund flow procedures have been agreed for NWSDB:

(i) MWSD will establish and maintain separate imprest accounts for the OCR loan and the ADF loan at the Central Bank of Sri Lanka. NWSDB will establish and maintain two corresponding Sub-accounts for the respective OCR and ADF loans.

(ii) NWSDB prepares and submits withdrawal applications to ADB through Treasury, MoFP based on eligible project expenditures, on a monthly basis.

(iii) Government provides 50% of ADB loan proceeds as grant and 50% of ADB loan proceeds to NWSDB at 6% and other on-lending terms in accordance with relevant policies and consistent with the ADB loans

(iv) Government provides counterpart funds through budgetary support.

28. The following fund flow procedures have been agreed for CMC:

(i) MLGPC will establish and maintain separate imprest accounts for the ADF loan at the

Central Bank of Sri Lanka. CMC will establish and maintain the corresponding sub-account for the ADF loan.

(ii) CMC prepares and submits withdrawal applications to ADB through Treasury, MoFP based on eligible project expenditures, on a monthly basis.

(iii) Government provides 82.5% of ADB loan proceeds as grant and 17.5% of ADB loan proceeds to CMC at on-lending terms in accordance with relevant policies and consistent with the ADB loans.

(iv) Government provides counterpart funds through budgetary support.

29. The imprest accounts shall be established, maintained and managed in accordance with the ADB’s Loan Disbursement Handbook. The maximum ceiling of the imprest accounts will not at any time exceed 10% of the respective loan amount. The request for initial and additional advances to the imprest accounts should be accompanied by an Estimate of Expenditure Sheet setting out the estimated expenditures for the forthcoming six (6) months.

30. To expedite disbursement during implementation, statement of expenditures (SOE) will be used to reimburse, liquidate, or replenish the imprest accounts for any individual payments not exceeding the equivalent of $100,000. SOE records should be maintained and made readily 31. available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.7 32. Before the submission of the first withdrawal application, the borrower 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 US$100,000, unless otherwise approved by ADB. The borrower is to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.

C. Accounting

33. The implementing agencies will maintain separate project accounts and records by funding source for all expenditures incurred under each of the loans under the Investment Program. Each project’s financial statements will adhere to generally accepted accounting principles followed in Sri Lanka and the accounting standards followed by the Government, NWSDB, and CMC.

Checklist for SOE procedures and formats are available at:

http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls

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D. Auditing

34. The implementing agencies will cause each of the project’s annual financial statements, under the Project 2, to be audited in accordance with the standards prescribed by the Auditor General’s Department of Sri Lanka, and those applicable to the Project 2, by Auditor General, whose qualifications, experience and terms of reference are acceptable to ADB. The audited financial statements, together with the auditors' report and management letter, will be submitted in the English language to ADB within 6 months following the end of the fiscal year of the implementing agencies for Project 2. Since the Project 1 and Project 2 have same PMU, and the implementation is overlap the combined project statement will be explored. 35. The annual audit report will include a separate opinion on (i) the use of the loan proceeds for the intended purpose of the project, (ii) the use of the imprest accounts and sub-accounts and the SOE procedures, and (iii) the compliance with all financial covenants of the Loan Agreement. The audit reports should include an assessment of the adequacy of the accounting and internal control systems, the ability to maintain proper and adequate records and documents in support of transactions, and the eligibility of incurred expenditure for ADB financing. ADB retains the right to: 36. review and examine any account; and (ii) verify the validity of the certification issued by the executing agency for each withdrawal application. 37. The audited project financial statements will be disclosed on ADB’s website within 30 days of their receipt in accordance with ADB’s Public Communications Policy (2011). 38. The government and the implementing agencies have been made aware of ADB’s policy. 39. on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. 8 ADB reserves the right to verify the projects’ financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. Further, any critical audit observations on the projects under the Project 2 should be reported to ADB, and action taken also be monitored. ADB also requires submission of audited financial statements of the implementing agencies when they become available.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

40. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2013, as amended from time to time)9 and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).10 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB’s approval. The Government and EAs have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. 41. Advance contracting. Under Project 2, advance contracting of: (i) civil works, (ii) equipment and materials, and (iii) recruitment of consultants may be requested subject to these being eligible according to the agreed procedures and guidelines. Advance contracting would include: (i) tendering, and bid evaluation for civil works packages; (ii) preparation of tender documents for the procurement of materials and equipment; (iii) evaluation of bids; and (iv) recruitment of consultants. The advance action for the consulting services, goods and works under Project 2 listed in Table 10. 8. Delay in submission of audited financial statements by 6 months will result in delay in processing of requests for new contract awards and disbursements. Delay in submission by 12 months will result in suspension of the loan.

9. Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf. 10. Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf.

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Table 15: Advance Actions for Consulting Services, goods and Works under Project 2 Description of Consulting Services, Goods, Advance Action To Be Taken Works Consulting services (MASC 2 and DSIDC ) Prepare and obtain approval for EOI and RFP

document Request for EOI Evaluate EOIs Prepare and approve short list of consulting firms Issue RFP

System rehabilitation and essential works in the Prepare and approve bidding documents South part of Colombo city (two civil works Conduct the bidding process packages) Equipment (operational equipment) Prepare and approve bidding documents

Conduct the bidding process EOI= expression of interest, RFP= request for proposals.

42. Retroactive financing. Except as otherwise agreed with ADB, expenditures incurred for civil works, equipment and materials and consulting services eligible for advance contracting will be eligible for retroactive financing of up to 20% of the proposed amount of the loans incurred before the effectiveness of each loan, but not earlier than 12 months before the signing of the loan agreement. B. Procurement of Goods, Works and Consulting Services 43. All procurement of goods and works, including the AFD subprojects, will be undertaken in accordance with ADB’s Procurement Guidelines (2013, as amended from time to time). The EAs and IAs will prepare the bid documents for Project 2 with assistance from consultants. Four consulting firms and a non-government organization (NGO) will be engaged, namely: (i)

Management Advisory and Supervision Consultants (MASC) 11 , (ii) Design, Supervision and Institutional Development Consultants (DSIDC) for Greater Colombo Wastewater Management, 12 (iii) Manpower Development and Training Division Training System Modernization Consultants (TSMC), (iv) Awareness Generation and Media Consultants (AGMC), and (v) Community Mobilization and Behavioral Change NGO (the NGO). All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). It is estimated that the total consulting inputs under Project 2 under the 5 contract packages as outlined above will be1,787 person months (100 international, and 1687 national). C. Procurement Plan 44. The procurement plan provides: (i) a list of goods, works, and consulting services contract packages that will be processed under Project 2, with milestone dates for activities; (ii) the proposed methods of procurement of such contracts that are permitted under the respective loan agreements; and (iii) the related ADB review procedures. The contract packages in the procurement plan will be updated by the PMUs for approval by ADB. The procurement plan should be updated annually or more frequently if necessary. A delay in loan effectiveness, other start-up delays, and delays during implementation will require an unscheduled procurement plan update. ADB will review each updated procurement plan before its publication. When appropriate,

K. For sake of continuity in the technical approach, experience acquired, and continued professional liability, continuation of the consultant services selected under Project 1, may be preferable for MASC to a new competitive selection, subject to satisfactory performance of MASC under Project 1. L. The consultancy work time will be within program implementation period, with additional fund in Tranche 3.

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this activity may be undertaken in the field by ADB missions working with the executing and implementing agencies. The procurement plan for Project 2 is in Appendix 3.

4. Consultant's Terms of Reference

45. The outline terms of reference (TOR) for all consulting services under Project 2 are in Appendix 4.

VII. SAFEGUARDS

A. Key Safeguard Documents

46. The following safeguard documents were prepared for the Investment Program in accordance with ADB’s Safeguards Policy Statement (SPS, 2009) and government rules:

(i) An environmental assessment and review framework (EARF), and (ii) A resettlement framework (RF).

47. Consistent with the safeguards frameworks, Initial Environmental Examinations (IEEs) and Resettlement Plans (RPs) were prepared for Project 2. B. Implementation Arrangements 48. NWSDB PMU. For water supply investments, the NWSDB will be responsible for ensuring the implementation of environmental and social safeguards. The PMU will consist of a social development officer and an environmental officer. These persons will be supported by one environmental specialist and one resettlement specialist in MASC’s package, to ensure compliance with all safeguard requirements. Detailed tasks are given below. 49. CMC PMU. For wastewater improvements in the CMC area, the PMU in CMC will be responsible for ensuring the implementation of environmental and social safeguards. The PMU will consist of a sociologist and an environmental officer. These persons will be supported by environmental and resettlement specialists from the DSIDC to be recruited for the wastewater components and will ensure compliance with all safeguard requirements. Detailed tasks are given below. 50. The executing agency will provide all the necessary logistic support (vehicle, computers, support staff, etc.) to the PMUs in the activities related to environmental and social safeguard implementation and monitoring. The implementing agencies will ensure that bidding and contract documents include specific provisions requiring contractors to comply with all (i) applicable labor laws and core labor standards on (a) prohibition of child labor as defined in national legislation for construction and maintenance activities, on (b) equal pay for equal work of equal value regardless of gender, ethnicity, or caste, and on (c) elimination of forced labor; and (ii) the requirement to disseminate information on sexually transmitted diseases including HIV/AIDS to employees and local communities surrounding the project sites. C. Environmental Safeguards. 51. An Environmental Assessment and Review Framework (EARF) was prepared during the preparation of the Investment Program to guide the environmental assessment, implementation and monitoring of future tranches. In accordance to the EARF, Environmental Management Plans

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(EMPs) were prepared as part of the IEEs for South Colombo, Ambatale and towns east of Colombo (TEC). These are to be included in the bidding and contract documents for civil works. The EMPs will be implemented and monitored during construction and semi-annual environmental monitoring reports will be sent to ADB for review and disclosure on ADB’s website. The following are institutional roles and responsibilities to ensure EMPs are implemented during design and construction stages. The EARF has been updated and included to guide the preparation of environmental safeguard documents under Output 2 of Project 2.

52. PMUs. The PMUs will have social development and environmental officers who will be responsible for safeguards functions. The PMUs will also be responsible for implementing and monitoring safeguards compliance activities, public relations activities, gender mainstreaming activities, and community participation activities. The environmental officer will be responsible for: (i) confirming that the EMPs are included in the bidding and contract documents for civil works packages; (ii) confirming that the IEEs and the EMPs are updated by the consultants during detailed design; (iii) providing oversight on environmental management aspects of project and ensuring that the EMPs are supervised by consultants and implemented by contractors; (iv) facilitating and confirming overall compliance with all government rules and regulations regarding site and environmental clearances as well as any other environmental requirements, as relevant; (v) supervising and providing guidance to the design and supervision consultants and contractor in proper EMP implementation; (vi) reviewing, monitoring and evaluating all indicators in the EMPs, assessing the effectiveness with which the EMPs are implemented, and recommending necessary corrective actions; (vii) reviewing and consolidating the monthly environmental monitoring reports from the consultants and submitting semiannual monitoring reports to ADB in the agreed format; (viii) ensuring the timely disclosure of the final IEEs and EMPs and contact information in locations and in a form accessible to the public; (ix) establishing a grievance redress mechanism as outlined in the IEEs and addressing grievances in a timely manner; and (x) before the designs of wastewater treatment plants are commenced, carry out the EIA. 53. Civil Works Contracts. EMPs will be included in bidding and contract documents, verified by the PIUs and PMUs. Contractors will carry out all environmental mitigation and monitoring measures outlined in their contract. Consultants will support the PMUs in monitoring the contractor’s activities.

D. Involuntary Resettlement 54. Three draft resettlement plans of Project 2 have been prepared for South Colombo, Ambatale and Town East of Colombo (TEC) subprojects. The plans will be finalized and updated following the completion of final detail design. The cost related to land acquisition and resettlement/rehabilitation will be borne by the Government. The PMUs will ensure that any physically or economically affected persons are compensated prior to displacement in sections ready for construction. The following are institutional roles and responsibilities to ensure Resettlement Plan is implemented during design and construction stages. 55. The Social Development & Safeguards Officers in the PMUs will: (i) ensure that the RF provisions are adhered to and the Resettlement Plans for South Colombo, Ambatale and TEC subprojects are updated based on detailed designs; (ii) engage in ongoing meaningful consultations with stakeholders and affected persons particularly through implementation of the consultation and participation plan; (iii) review, approve, implement and monitor the RPs with support from the consultants; (iv) provide timely payments to affected persons before displacement occurs in sections ready for construction; (v) ensure all grievances are addressed and when necessary activate the Grievance Redress Committee; (vi) take corrective actions

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56. where necessary, (vii) conduct monitoring of the resettlement process to ensure smooth implementation, and (viii) consolidate monthly reports by Resettlement Specialists in MASC and DSIDC and submit semi-annual monitoring reports to ADB. The monitoring reports should record the progress of resettlement activities and any compliance issues, grievances, corrective actions taken, follow-up actions required and status of compliance with relevant loan covenants. 57. The IAs will provide all the necessary logistic support (vehicle, computers, support staff etc.) to the PMUs’ Social Development & Safeguards Officers in carrying out the related activities for environmental and social safeguard implementation and monitoring. 58. Project Grievance Redress Mechanism. The PMUs’ Social Development and Safeguards Officers will establish the grievance redress mechanism (GRM), assisted by MASC for the entire Investment Program, including for the safeguards, and disclose it to the affected communities and households prior the mobilization of contractors in any subproject areas. The PMUs’ Social Development/Safeguards Officers, supported by the project NGO, will be responsible for timely grievance redress on environmental and social safeguards issues and responsible for registration of grievances, related disclosure and communication with the aggrieved party. Contacts details, procedures and complaint mechanism will disclose to the project affected communities at accessible locations and through various media (i.e. leaflets, newspapers, etc.). Appendices 7, 8 and 9 provide samples of draft project leaflet, Grievance Registration Form and monitoring template. 59. Capacity Building. PMUs’ Safeguards/ Social Development Officers will be further trained by MASC and DSIDC’s Resettlement Specialist on safeguards issues of the Investment Program, including that of Project 2. The targeted participants of safeguards briefings the consultants would be NWSDB and CMC PMU staff, as well as the project NGOs. Briefings on safeguards will also be conducted to contractors upon their mobilization by MASC and DSIDC. 60. Civil Works Contracts. The NWSDB and CMC will ensure that bidding and contract documents include specific provisions requiring contractors to comply with all (a) applicable labor laws and core labor standards on (b) prohibition of child labor as defined in national legislation for construction and maintenance activities, on (c) equal pay for equal work of equal value regardless of gender, ethnicity or caste, and on (d) elimination of forced labor, and (e) the requirement to disseminate information on sexually transmitted diseases including HIV/AIDS to employees and local communities surrounding the Project sites. The gender action plan (GAP) with the contractors’ responsibilities highlighted, will be included in bidding and contract documents, verified by the PMUs. Contractors will carry out all environmental and social mitigation and monitoring measures outlined in their contract. MASC and DSIDC will assist the PMUs in monitoring contractor’s compliance activities.

VIII. GENDER AND SOCIAL DIMENSIONS

61. Project 2 including AFD cofinancing subprojects is classified as Effective Gender Mainstreaming. A GAP has been prepared for Project 2 and AFD cofinancing subprojects to ensure that gender equality measures are put in place while implementing project activities. The gender and social dimensions of the project will be overseen by the Social Development & Safeguards Officer in the PMUs and implemented with the support of the project NGOs. There will be one NGO, covering Project 1 and Project 2 activities. The NGO will provide implementation support as outlined in its respective TOR, primarily in the following: (i) implementation of the GAP, leading community outreach efforts; formation of water user groups within low-income tenement garden communities in Colombo city; (iii) mobilization of existing community water user groups in

Colombo city for user charge collection and operation and maintenance of community level facilities, if any; (iv) implementing WASH campaign in south part of Colombo city with the involvement of water user groups, and (iv) providing overall capacity support to NWSDB’s community water supply unit. The PMUs’ budget includes operational budget for consultation and outreach meetings, including grievance redress, and awareness building, which includes organizing workshops, training programs etc. related to gender sensitization and social dimensions of the project. The PMUs will work closely with and coordinate the activities of the MASC and the NGO to ensure effective implementation of social and gender dimensions of the project. The consultation and participation plan (see Appendix 5) will be implemented by the PMUs, NGO, MASC and DSIDC. The TOR of the NGO is in Appendix 4.

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GENDER ACTION PLAN for PROJECT 2 and AFD Cofinancing Subprojects

Activity Targets and Indicators Responsibility Duration

Output 1: Rehabilitated and expanded water supply system, and reduced NRW in Colombo City All free water outlets in underserved settlements and form • Women make up at least 50% of NWSDB PMU Within 1–2 consumer associations (target: 150 outlets) Executive Committee members NGO years

• Increased percentage of customers, including BPL households and FHHs with access to piped water supply (baseline: 95% in 2012; target: 100% by 2018) in Colombo City

• Mobilize NGOs to form water user groups (WUGs) in low - • NGOs with specified qualifications are NWSDB PMU Within 6 income communities, with emphasis on women’s role in recruited NGO months managing water and sanitation • WUGs formed in all under-served • Mobilize communities in low- income areas to form WUGs settlements (USS) provided with • Create awareness of women’s leadership in WUGs common water outlets, with women • Motivate water user groups to undertake the O&M of making up 50% of Executive Committee public stand posts and latrines. members

• Organize loans through Randiya scheme and NWSDB • Women have leadership roles in 100% of subsidy scheme for the unconnected poor HH WUGs formed under the project

• Women from local communities comprise 50% of participants in field level awareness training programs in water, sanitation and O&M

• Collect sex-disaggregated socioeconomic and health data, • Sex disaggregated baseline data are NWSDB PMU Years 1–2 incl. data on existing water supply, sanitation, and hygiene included in the socioeconomic survey NGO practices in communities in USSs and low-income areas)

• Give preference to affected households and people in • Women make up at least 30% of skilled NWSDB PMU Throughout USS and low-income areas in recruiting for construction and non-skilled labor13 MASCs the project work • All men and women receive equal pay for Contractor

• Orient the NWSDB PMU, contractors, and workers in core equal work labor standards and norms • Male and female laborers and employees • Ensure equal opportunity for women and men in civil are provided with standard safety and works and other employment security measures at work

M Estimated temporary jobs likely to be created during civil construction work for Colombo South: (a) no. of skilled jobs=225; (b) no. of unskilled jobs=337; (c) Total skilled and unskilled jobs = 562. Hence, a minimum of 68 skilled temporary jobs and 101 unskilled temporary jobs for women are estimated.

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• Make WUGs responsible for O&M and undertake billing • Women make up 30% of WUG members NWSDB PMU Throughout and collection of water tariff from consumers to be trained in O&M and account MASCs the project • Select men and women for O&M training (women should keeping Contractor make up at least 30% of trainees) • Women make up 30% of WUG • Link water user groups to NWSDB for institutional

• accountants

sustainability and technical support WUGs registered with relevant unit in NWSDB for technical support

Establish an NRW team under the project with female • Women make up 40% of RSC-WC NWSDB PMU Throughout professional and technical staff among the members professional and technical staff (baseline MASCs the project 2012: Total staff= 142; Female= 56 (39%) and Male= 87 (61%) • Professional and technical staff of NRW team receive gender sensitization training • Women hold 15%ofmanagerial positions

Output 2: Completed designs and improved preparedness for wastewater investments

• Use sex-disaggregated socio-economic and health data • Detailed designs based on surveys CMC PMU Detailed and data on sanitation practices, needs and preferences and/or consultations with underserved or DSIDC design stage of women and men in underserved or low income low income communities (including BPL settlements and FHH)

• Link all underserved or low income settlements (including • Detailed designs include provisions for CMC PMU Detailed all BPL and FHH households) in project area to the house service connections and DSIDC design stage proposed wastewater system connections to community sanitation facilities in all underserved/low income settlements in project area

Output 3: Strengthened institutional structure and capacity of service providers • Train and capacity building of 1000 NWSDB and CMC • Women make up 25% of participants in staff the training

• Recruit women engineers and engineering assistants for • Women make up at least one third of the NWSDB Throughout the PMU for project implementation PMU professional staff (baseline 2012: MWSD the project Male =16 and Female 2 (11%))

• Introduce institutional reforms in the RSC-WC and include • Women make up 40% of RSC-WC NWSDB PMU Throughout targets for women in staff recruitment professional and technical staff (baseline MASCs the project 2012: Total staff=142; Female=56 (39%) and Male=87 (61%) • Women hold 15% of managerial positions

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• Design and implement a city-wide awareness campaign, • Awareness of water tariff among citizens NWSDB PMU Throughout using multiple communication channels. This will include increased by 20% before and after MASCs the project gender analysis of different levels of awareness and Project 2 emphasizing shared

acceptance between women and men responsibility of men and women in water management and conservation and in sanitation and health (target: 50% women participation in FGDs

• Implement a water sanitation and hygiene (WASH) • Women make up at least 50% of NWSDB PMU Throughout program in 229 low-income communities in the south part participants in WASH-related awareness NGO the project

of Colombo city through an NGO activities BPL= below poverty line, FHH= female headed household, MASCs = management advisory and supervision consultants, MWSD = Ministry of Water Supply and Drainage, NGO = nongovernment organization, NRW = non-revenue water, NWSDB = National Water Supply and Drainage Board, O&M = operation and maintenance, PMU = project management unit, RSC-WC = Western Central Regional Support Center, USS= under-served settlements (USS); WASH = water, sanitation, and hygiene; water user groups (WUGs). Source: Asian Development Bank.

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IX.

PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A Project Design and Monitoring Framework

62. The design and monitoring framework (DMF) for Project 2, including the AFD subprojects, is in Appendix 1. B. Monitoring 63. The Program steering committee will be the highest authority responsible for monitoring and providing policy directions on: (i) critical implementation issues and interdepartmental coordination; (ii) implementation of the institutional reform agenda; (iii) compliance with the FFA and the loan covenants; and (iv) compliance with social and environmental safeguards. The PMUs will establish a program performance monitoring system (PPMS) for water supply and wastewater investments, which will cover:

i. Project performance monitoring; ii. Compliance monitoring; iii. Safeguards, gender and social dimension monitoring.

64. Project performance monitoring. Disaggregated baseline data for impact, outcome, and output indicators, in accordance with the DMF for the Project 2, will be established by the executing or implementing agency within 6 months from the date the loan under the MFF takes effect, for water supply and wastewater services, and will be updated by the executing and implementing agencies. Roles and responsibilities for monitoring project performance will also be defined when the PPMS is established and agreed with ADB. Similarly, the executing and implementing agencies will define the structure and responsibilities of the compliance monitoring team and submit these for ADB’s no objection at the time of setting the PPMS, in accordance with the covenants in the FFA and the loan and project agreements. 65. Safeguards, gender, and social dimension monitoring. The structure and responsibilities of the safeguards, gender and social dimension monitoring team are summarized in Table 16. Safeguards monitoring requirements and the report formats are included in the safeguard plans and frameworks. The PMUs and NGO will be involved in the monitoring of the GAP and the consultation and participation strategy (CPS).

Table 16: Safeguards, Gender and Social Dimension Monitoring Task Team Responsibility Project directors, PMUs (NWSDB and CMC) Oversee project implementation and ensure smooth

implementationofactivitiesrelatedtosocial development and safeguards.

Social development, PMU (NWSDB) Manage overall day-to-day social development, gender monitoring and safeguard -related activities in NWSDB components.

Environment Officer, PMU (NWSDB) Manage overall day-to-day environmental safeguard activities in NWSDB components.

Environment officer, PMU (CMC) Manage overall day-to-day environmental safeguard activities in CMC components.

Resettlement officer, PMU (CMC) Manage overall day-to-day social development, gender monitoring and social safeguard activities in CMC components.

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Public relations officer, PMU (NWSDB and CMC) Manage awareness generation and consultation and

participation activities. Community mobilization and behavioral change NGO Implement key activities in TOR related to social

development, community participation, and outreach. CMC= Colombo Municipal Council, PMU = program management unit, NGO= nongovernment organization, NWSDB = National Water Supply and Drainage Board, TOR= terms of reference.

C. Evaluation

66. Regular review. The PPMS will be aimed at detecting any deficiency or discrepancy between the plan and the execution of the Project 2 in order to ensure that timely corrections can be made in Project 2. MASC and DSIDC will assist the PMUs in monitoring and evaluating the

project14, which involves evaluating the causes of deficiency or discrepancy between the planned and the execution, aligning by the PPMS, proposing corrective measures, and seeking policy guidance from the PSC if the matter is still unresolved. Evaluation will take place at four different levels at different intervals:

Implementing agencies through the PMUs (monthly); Executing agencies through the PMUs (quarterly); Program Steering Committee (semi-annually); and ADB (annually). 67. Mid-term reviews. In addition, a mid-term review of Project 2 will be undertaken during the implementation period of Project 2. The mid-term review will evaluate in detail the scope of the Project 2, implementation arrangements, and any outstanding issues (environment and resettlement, as well as safeguards issues), achievement of scheduled targets, contract management progress, and other issues as appropriate, and generate agreement on any changes that may be needed. D. Reporting 68. The PMUs will provide ADB, MWSD/MLGPC and NWSDB/CMC with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated semi-annual monitoring reports (for resettlement, environment and gender

monitoring); 15 (iii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan; and (d) updated implementation plan for next 12 months; and (iv) a project completion report within 6 months of physical completion of the project. To ensure project continue to be both viable and sustainable, project accounts and the executing agencies audited financial statements, together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

69. The objective of the communication strategy is to: (i) promote awareness on the project and water supply and wastewater projects during implementation; (ii) secure participation of the community in all stages of project planning and implementation; (iii) establish two-way flow of N. The Design and Supervision Consultant (DSC) engaged under the AFD cofinancing will assist the PMUs in preparing a separate PMMS for and monitoring the monitoring the AFD Subprojects.

O. A project gender action plan (GAP) implementation matrix (which updates the status of progress in the GAP table format) should be included in the semi-annual reports from EA to ADB. GAP reports should be included in the regular semi-annual reports submitted to ADB.

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information and dialogue with directly involved stakeholders to integrate their concerns and increase support and involvement in the project; and (iv) secure participation of stakeholders including quality professionals and contractors in project implementation. The Communication Strategy includes a media-based awareness campaign, web disclosures and direct communication through meetings and consultations. The Consultation and Participation Plan (CPP), included in Appendix 5 of the PAM, also identifies consultation and disclosure activities to be undertaken and the institutions responsible. Budget for implementing the Communication Strategy and CPP are incorporated into the project budget.

X. ANTICORRUPTION POLICY 70. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project. 16 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all the project contractors, suppliers, consultants and other service 71. 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.17 72. To support these efforts, relevant provisions are included in the loan agreement, project agreement and the bidding documents for the project. In particular, all contracts financed by ADB in connection with the project will include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all contractors, suppliers, consultants, and other service providers as they relate to the project.

XI. ACCOUNTABILITY MECHANISM

73. 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. 18 The project, with assistance from MASC, will establish a Grievance Redress

Mechanism and Program website, 19 for the entire Investment Program including Project 2, to ensure greater accountability. Within 12 months of loan effectiveness, PMUs will prepare a Grievance Redress Mechanism, acceptable to ADB, and establish a special committee to receive and resolve complaints/grievances or act upon reports from stakeholders on misuse of funds and other irregularities, including grievances due to resettlement. The special committee will (i) make public of the existence of this Grievance Redress Mechanism; (ii) review and address grievances of stakeholders of the project, in relation to either the project, any of the service providers, or any person responsible for carrying out any aspect of the project; and (iii) proactively and constructively responding to them.

XII. RECORD OF PAM CHANGES

74. The first draft of PAM was prepared and agreed upon at the loan fact-finding. The current draft is as agreed at the time of consideration by the ADB management. P. Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf. Q. ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp. R. For further information see: http://compliance.adb.org/. S. NWSDB will take the lead with the help of MASC and share the software with CMC for the program website.

46

Appendix 1 39

DESIGN AND MONITORING FRAMEWORK FOR PROJECT 2 Data Sources and

Performance Targets and Reporting Assumptions Design Summary Indicators Mechanisms and Risks Impact Assumption

Improved water supply Daily water supply increased in NWSDB annual reports Ongoing and planned and wastewater service low-pressure area a in Colombo water supply projects, and management in (baseline: 5 hours in 2012; target: financed by JICA and

Greater Colombo 24 hours by 2020) NWSDB successfully implemented Citywide NRW in Colombo reduced NWSDB water balance (baseline: 49% citywide and 60% in audit critical area in 2012; target: 20% in Colombo and 18% in critical area by 2020)

Coverage of sewer network CMC annual reports increased including all BPL households (FHHs among them) (baseline: 80% in 2012; target: 100% in Colombo in 2020)

Outcome By end 2018: Risk

Improved system NRW in south part of Colombo city NWSDB water balance Tariff increase as efficiency and financial reduced to 20% (baseline: 49% in audit agreed by the sustainability of water 2013) Government is supply and wastewater delayed services in Greater 44,500households (incl. all BPL NWSDB annual reports Colombo and FHH households) benefitted

with 24*7 water supply in the south part of Colombo city (baseline 5 hours in 2013)

33,000 households benefitted with NWSDB annual reports 24*7 water supply in towns east of

Colombo b (baseline water supply 5-6 hours in CBO areas in 2013)

25% energy saving and cost NWSDB annual reports reductions in water production through Ambatale pumping station

refurbishments c (baseline: annual energy costs $7.05 million in 2013)

Output By end 2018: For all outputs:

1. Rehabilitated and 242 km of water supply pipelines PPMS Assumption expanded water supply and 15,000 water meters replaced system, and reduced in the south part of Colombo city Key project officials NRW in Greater remain in office during Colombo Minimum of 15 district meter areas PPMS the project period

(DMAs) established in the south part Colombo city (baseline zero Risk DMA’s in 2013) Prices of pipes and Additional 150 water outlets NWSDB and NGO construction materials provided in un-served settlements, annual reports increase beyond metered and WUSGs formed projections. (target: 50% women representatives in executive

40 Appendix 1

Data Sources and

Performance Targets and Reporting Assumptions Design Summary Indicators Mechanisms and Risks

committees)

360km of distribution network, 8km AFD Project progress of transmission mains and reports

18,000m3 capacity storage reservoir constructed for TEC water

supply system improvement d

4 new pumps installed, 24 existing AFD Project progress pumps replaced/refurbished, reports facilities automated and improved

at Ambatale e

2. Completed designs Detailed design and bid documents DSIDC and CMC and improved for investments in wastewater reports preparedness for management under Projects 3 and wastewater investments 4 approved

3. Strengthened Colombo city water supply NWSDB annual reports institutional structure and operations decentralized to RSC- capacity of service WC of NWSDB providers.

GIS-based asset management PPMS system for Colombo city established and operated by RSC- WC

2 NRW management offices NWSDB annual reports established and functional, and 6 active-leakage-control (ALC) teams fully equipped and operational

Training and capability building NWSDB annual reports provided to 1000 NWSDB and CMC staff (target: at least 25% of staff are female professionals)

Awareness of water tariff among Survey conducted by citizens increased by 20% before the project consultants and after Project 2 emphasizing shared responsibility of men and women in water management (target: 50% women participation in FGDs)

W.A.S.H program implemented in NGO progress reports 229 underserved settlements with 16,372 households(target:50% women participation)

Volumetric sewerage tariff CMC annual reports approved for CMC

4. Project 2 Successfully Project 2 completed on time and ADB PPR Managed and within budget, and rated successful Implemented in ADB project success ratings;

48

Appendix 1 41

Activities with Milestones Inputs

1. Rehabilitated and expanded water supply system, and reduced NRW, in Colombo

city Item Amount 1.1. Obtain all environmental, statutory, and utilities clearances by Q2 2013 ($ million) 1.2. Issue tender documents for priority rehabilitation works by Q4 2013 Project 2 1.3. Provide advisory services on managing NRW reduction, construction ADB 88.00 management and supervision under the Project by Q1 2014 by MASC

1.4. Complete procurement of civil works contract by Q2 2015 Co-financier:

1.5. Provide the NRW teams with vehicles, tools, equipment, and training, and Item Amount mobilize the teams for active leakage control by Q2 2015

1.6. Establish district metered areas by Q4 2017 AFD 101.00 1.7. Replace or upgrade all service connections and meters by 2017

1.8. Rehabilitate plumbing systems in condominium housing schemes by Q2 2017 Government:

2. Completed designs and improved preparedness for wastewater investments Project 266.00 2.1. Issue tender documents for DSIDC by Q3 2013

2.2. Sign contract for DSIDC with consultant by Q2 2014

2.3. Conduct condition assessment survey and sewer cleaning of 125 km of the sewer network in Colombo City by Q2 2015

Strengthened institutional structure and capacity of service providers 3.1. Provide MDTD training equipment by Q2 2015

3.2. Renovate and modernize the training facilities by Q3 2017 3.3. Institutionalize reforms in RSC-WC by Q4 2014

3.4. Complete training of NWSDB staff in NRW reduction by Q2 2016

3.5. Complete training of water user groups in meter reading and O&M by 2018 3.6. Establish and calibrate network model for Colombo sewerage by Q2 2015 3.7. Establish separate wastewater cost center in CMC by Q4 2014 3.8. Approve sustainable tariff system for CMC, together with formulation of

implementation strategy/mechanism to include legal and institutional provisions, by Q2 2015

3.9. Approve and start the awareness and media campaign, including TV and radio program, focus group discussion designs by Q2 2014

3.10. Update GIS network maps for Colombo city by Q4 2014 D. Project 2 successfully managed and implemented

4.1. Appoint PMU and core counterpart staff for Project 2 by Q4, 2013 (25 Women) 4.2. Mobilize core counterpart staff required for Project 2 by Q1 2014

ADB = Asian Development Bank; BPL= below poverty line, CEA = Central Environmental Authority, CMC = Colombo Municipal Council, DSIDC = Design, Supervision and Institutional Development Consultants, FHH= female headed household, GIS = geographic information system, km = kilometer, JICA= Japan International Cooperation Agency, MASC = management advisory and supervision consultant, MOFP = Ministry of Finance and Planning, NGO = nongovernment organization, NRW = nonrevenue water, NWSDB = National Water Supply and Drainage Board, O&M * operation and maintenance, PMU = project management unit, RSC-WC = Western Central Regional Support Center. WUSG = Water use and sanitation group. PPMS = project performance management system. TEC = towns east Colombo. FGD = focus group discussion. WASH = water and sanitation and hygiene. a Low-pressure area is about 12 square kilometers and refers to Kotahena, Slave Island, Pamankada, Havelock Town,

Mattakuliya, Borella, and Hulfsdorf. b,c.d.e In parallel with PFR 2, the Government is seeking contractual cofinancing from Agence Francaise de

Developpement (AFD) in the amount equivalent to $101 million to assist the Government in achieving these outcomes.

Source: Asian Development Bank

Appendix 2

APPENDIX 2: DETAILED PROJECT DESCRIPTION OF PROJECT 2 INCLUDING AFD COFINANCING SUBPROJECTS

A. Output 1: Rehabilitated and expanded water supply system and reduced non-revenue water (NRW) in Greater Colombo20

To achieve this output, project 2 will support the following: (i) Rehabilitation and replacement of about 242 km of seriously degraded distribution

network pipes in the areas in the south part of Colombo city; (ii) Installation of new electromagnetic flow meters, ultrasonic flow meters, valves, and

special fittings for the formation of district metered areas (DMAs) and for the establishment of NRW monitoring and remote control system;

(iii) Replacement and installation of priority customer metering with new electromagnetic flow meters, valves, and special fittings for connections of 150mm and above;

(iv) Replacement and transfer of about 44,500 service connections with polyethylene pipes and fittings;

(v) Replacement of about 15,000 defective water meters; (vi) Updating of GIS network for the rehabilitated system; and (vii) Construction and operationalization of two NRW operation & maintenance offices;

and Rehabilitated and expanded water supply network in six towns East of Colombo district (TEC). (Under AFD Co-financing):

a. Planning and design of distribution system based on DMA concept; b. Provision of periodic NRW measurement; c. Construction of 8km of water supply transmission mains; d. Construction of 360km of water supply distribution network; e. Construction of 18,000 m3 capacity ground level storage reservoir; f. Strengthening of institutional and operational capacity of the RSC-WC to

achieve and manage 24*7 water supply in the six towns; g. Construction of three office buildings for operation and management (O&M)

support; h. Supply of vehicles and equipment for O&M support for the enhanced

system; i. Consulting services support for design and supervision; and j. Public awareness and advocacy on NRW, water usage, sanitation, public

health, hygiene and environmental conservation in the six town areas. (viii) Rehabilitated and Improved Ambathale Water Supply Pumping System and

Facilities (Under AFD Co-financing) a. Replacement of 11 pumps and installation of 4 new pumps at the intake and treatment plant; b. Rehabilitation of 13 existing pumps at the treatment plant, including rehabilitation of other treatment plant facilities; c. Automation of the pumping and treatment plant facilities and construction of a control building to manage the same; d. Construction and installation of a filter backwash water recovery, sludge treatment and disposal systems at the treatment plant; e. Construction of a 15,000 m3 storage reservoir and 5 km of transmission mains from Gothatuwa to Colombo city border;

T. The AFD parallel contractual co-financing will cover (vii) and (viii) under Outputs 1 in these detail description.

50

Appendix 2 43

f. Construction of 500m of booster pipeline feeding Moragasmulla tower; g. Construction of 9.2 km of transmission pipeline from the treatment plant to Thotalanga; h. Consulting services support; and i. Institutional strengthening, including staff training, on energy efficiency and improvement in O&M.

B. Output 2: Completed designs and improved preparedness for wastewater investments.

To achieve this output, Project 2 will support the following: (i) preparation and approval of detailed design and bid documents for investments in wastewater management under Projects 3 and 4; and

(ii) Completion of a condition assessment survey and cleaning of 125 km of the sewer network in Colombo city.

C. Output 3: Strengthened institutional structure and capacity of service providers

To achieve this output, Project 2 will support the following: (i) Decentralization of the Colombo city water supply operations to the RSC-WC of NWSDB, and transfer of all records, management of assets by RSC-WC; (ii) Establishment of GIS-based asset management system for the Colombo city operated by RSC-WC;

(iii) Strengthening of CMC’s staff and institutional capacity for increased operational efficiency in wastewater management;

(iv) Advisory services of MASC to manage NRW reduction activities and support NWSDB in managing water supply investments and of DSIDC to support CMC in managing wastewater investments and institutional development of CMC under the proposed Project 2;

(v) Establishment of fully equipped active-leakage-control teams and reinforcement of the O&M units to undertake NRW activities and major repairs in Project 2 areas;

(vi) Training and capability building to improve the operating performance of NWSDB and CMC;

(vii) Awareness building of stakeholders on water supply and wastewater management; and

(viii) Formulation of volumetric sewerage tariff to be charged to all customers;

D. Output 4: Project 2 Successfully Managed and Implemented.

To achieve this output, Project 2 will support the following: (i) Implementation support for the executing and implementing agencies to manage the proposed Project 2 successfully; and

(ii) Consulting support to prepare the remaining tranches.

APPENDIX 3: UPDATED PROCUREMENT PLAN FOR PROJECT 121

Basic Data

Project Name: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 1

Project Number: 45148-005 Approval Number: 2947/2948 Country: Sri Lanka Executing Agency: Ministry of City Planning and Water

Supply (formerly Ministry of Water Supply and Drainage)

Project Procurement Classification: Implementing Agency: National Water Supply and Drainage Board

Project Procurement Risk: Project Financing Amount: US$ 112,000,000

ADB Financing: US$ 84,000,000 Cofinancing (ADB Administered): Non-ADB Financing: US$ 28,000,000

Project Closing Date: 30 June 2016

Date of First Procurement Plan: 22 November 2012

Date of this Procurement Plan: 2 July 2018

A. Methods, Thresholds, Review and 18-Month Procurement Plan 1. Procurement and Consulting Methods and Thresholds 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$ 2,000,000 and Above

National Competitive Bidding for Goods Between US$ 100,000 and US$ 1,999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Goods Up to US$ 99,999 The first Shopping-Goods is subject to prior review, thereafter post review.

International Competitive Bidding for Works


National Competitive Bidding for Works Between US$ 100,000 and US$ 14,999,999

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

Shopping for Works Up to US$ 99,999 The first Shopping-Works is subject to prior review, thereafter post review.

Consulting Services Method Comments

Consultant's Qualification Selection for Consulting Firm Quality- and Cost-Based Selection for Consulting Firm Individual Consultant Selection for Individual Consultant

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

Package Number General Description Estimated

Value Procurement

Method Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

CWSSIP/ADB/SIM/ICB/5R2 (Lot A)

Supply, installation and commissioning of AMR meters

1,149,168.00 ICB Prior 1S1E Q4 / 2016 Prequalification of Bidders: N Domestic Preference

52

Applicable: N Bidding Document: Goods

3. Consulting Services Contracts Estimated to Cost $100,000 or More The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.


Value Recruitment


Advertisement Date

(quarter/year) Type of

Proposal Comments

None

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

The following table lists 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

Advertisement Date


CWSSIP/ADB/EQUIP/NRW/ICB/07

Supply and Delivery of Equipment for NRW Management and Active Leakage Control Activities

275,665.00 1 ICB Prior 1S1E Q4 / 2016 Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods

EQUIPMENT 6 Office equipment for PMU and consultans' office

122,819.00 3 SHOPPING

Prior Q4 / 2016

GCWWMIIP/ADB/SUP&INS/WMTB/NCB/10

Supply and installation of Water meter testing bench

330,330.00 1 ICB Prior 1S1E Q4 / 2016 Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods

LAB EQP Minor tools and equipment

405,000.00 6 SHOPPING

Post Q4 / 2016

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date


Proposal Comments

None

B. Indicative List of Packages Required Under the Project 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). Goods and Works

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure

Comments

None Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Type of Proposal Comments

None

C. List of Awarded and On-going, and Completed Contracts The following tables list the awarded and on-going contracts, and completed contracts. 1. Awarded and Ongoing Contracts Goods and Works

Package Number

General Description

Estimated Value

Awarded Contract

Value Procurement

Method Advertisement

Date (quarter/year)

Date of ADB Approval of

Contract Award

Comments

EQUIP/ICB/04

Supply of leakage detection and all other related

290,000.00 346,150.00 ICB Q3 / 2013 20-MAY-14

54

equipment, and installation where relevant, including training

CWSSIP/ADB/SIM/ICB/05/R1

Supply, Installation and Commissioning of System Input Volume (SIV) Meters (EM / Ultrasonic) & Associated Data Loggers and Supply & Delivery of Electromagnetic Flow Meters for Use in DMA Implementation

2,174,000.00 1,956,643.72 ICB Q3 / 2014

GCWWMIIP/ADB/BUILD/ELLIE/NCB/02R

Construction of Ellihouse Area Engineer's Office

1,800,000.00 1,392,531.90 NCB Q4 / 2015 08-JUN-16

GCWWMIIP/ADB/BUILD/NRW/NCB/03

Construction of NRW Building at Maligakanda

2,700,000.00 2,280,000.00 NCB Q4 / 2016 20-FEB-17

CWSSIP/ADB/CIVIL/01

System Rehabilitation for NRW Reduction in North of Colombo City

49,600,000.00 55,488,792.81 ICB Q2 / 2013 17-JUL-14

CWSSIP/ADB/CIVIL/02

System Rehabilitation in Colombo East area

48,700,000.00 61,696,738.00 ICB Q4 / 2012 19-NOV-14

Consulting Services

Package Number

General Description

Estimated Value

Awarded Contract

Value Recruitment


Date (quarter/year)


Contract Award

Comments

GCWWMIP/ADB/NRWCSC/QCBS 10

NRW Management Construction Supervision Consultants (NRWCSC)

5,000,000.00 5,017,654.86 QCBS Q2 / 2015 21-AUG-16

/ADB/MEDIA/QCBS 03

Public Awareness and Media Campaign

629,000.00 601,948.04 QCBS Q1 / 2015 27-JUN-16

D. National Competitive Bidding A. Regulation and Reference Documents 1. The procedures to be followed for national competitive bidding shall conform to the provisions prescribed in the Procurement Guidelines 2006 for Goods and Works issued in January 2006 by the National Procurement Agency, and the specific procedures prescribed by the Procurement Manual issued in March 2006, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines. B. Procurement Procedures

1. Eligibility

2. The eligibility of bidders shall be as defined under Section I of ADB’s Procurement Guidelines (2015, as amended from time to time) (the “Guidelines); accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in Section I of the Guidelines.

2. Registration and Sanctioning 3. Registration is acceptable under the following conditions:

(i) Bidding shall not be restricted to pre-registered firms under the national registration system of the Institute for Construction, Training and Development (ICTAD), and such registration shall not be a condition for the submission of bids in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (i) shall be allowed a reasonable

time to complete the ICTAD registration process; and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

(iii) National sanction lists or blacklists may be applied only with prior approval of ADB.

3. Prequalification

4. Prequalification is discouraged for NCB. When used, particularly for works contracts, an individual prequalification exercise is acceptable for each contract as is the use of a registration system (or approved standing list) of contractors based on criteria such as experience, financial capacity, and technical capacity. Foreign bidders from eligible countries must, however, be allowed to register and to bid without unreasonable cost or additional requirements.

4. Advertising 5. The posting of NCB specific notices for contracts valued at less than $1 million on ADB’s website is not required but is highly recommended.

5. Preferences 6. The following shall be observed:

(i) No preference of any kind shall be given to domestic bidders or for domestically

manufactured goods.

(ii) Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations, leaving compliance with these requirements for after award and before signing of contract.

6. Participation by Government-Owned Enterprises

7. Government-owned enterprises in the Democratic Socialist Republic of Sri Lanka shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the Project Executing Agency or Implementing Agency.

7. Rejection of Bids and Rebidding 8. Bids shall not be subjected to a test for unrealistic rates. No lowest evaluated and substantially responsive bid shall be rejected on the basis of comparison to rates, including but not limited to market, historical, or agency established rates, without prior approval of ADB. 9. Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.

56

8. Price Negotiations 10. Price negotiation shall be allowed only where the price offered by the lowest evaluated and substantially responsive bidder substantially exceeds costs estimates. Approval of ADB is required prior to any negotiation of prices.

C. Bidding Documents

9. Acceptable Bidding Documents 11. Procuring entities shall use standard bidding documents acceptable to ADB for the Procurement of Goods, Works and Consulting Services, based ideally on the standard bidding documents issued by ADB.

10. Bid Security 12. Where required, bid security shall be in the form of a certified check, a letter of credit or a bank guarantee from a reputable bank.

11. ADB Policy Clauses 13. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB.

14. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question.

15. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that 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 or any integrity violation in competing for, or in executing, ADB-financed contract.

APPENDIX 3: UPDATED PROCUREMENT PLAN FOR PROJECT 2 .

Basic Data Project Name: Greater Colombo Water and Wastewater Management Improvement Investment Program -

Tranche 2

Project Number: 45148-007 Approval Number: 3029/3030/8282 Country: Sri Lanka Executing Agency: Ministry of City Planning and Water

Supply (formerly Ministry of Water Supply and Drainage), Ministry of Provincial Councils & Local Government

Project Procurement Classification: Implementing Agency: Colombo Municipal Council, National Water Supply and Drainage Board

Project Procurement Risk:

Project Financing Amount: US$ 224,000,000 ADB Financing: US$ 88,000,000 Cofinancing (ADB Administered): US$ 70,000,000 Non-ADB Financing: US$ 66,000,000

Project Closing Date: 30 June 2019

Date of First Procurement Plan: 24 April 2014 Date of this Procurement Plan: 29 June 2018

A. Methods, Thresholds, Review and 18-Month Procurement Plan 1. Procurement and Consulting Methods and Thresholds 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


National Competitive Bidding for Goods Between US$ 100,000 and US$ 1,999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Goods Up to US$ 99,999 International Competitive Bidding for Works


National Competitive Bidding for Works Between US$ 100,000 and US$ 14,999,999

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

Shopping for Works Up to US$ 99,999

Consulting Services Method Comments

Quality- and Cost-Based Selection for Consulting Firm Quality-Based Selection for Consulting Firm Single Source Selection for Consulting Firm Individual Consultant Selection for Individual Consultant

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


Value Procurement


Bidding Procedure

Advertisement Date


GCWWMII Construction of office 2,700,000.00 NCB Post 1S1E Q3 / 2017 Prequalification

58

P/ADB/BUILD/Paman/NCB/07

buildings for Area Engineers - Pamankada

of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Small Works

GCWWMIIP/AFD/AMB/PLANT/ICB/05

Replacement/rehabilitation of pumps at treatment plant and intake, establishing a SCADA system, construction of backwash recovery system and control building, and related works

31,475,000.00

ICB Prior 2S Q1 / 2015 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Plant Comments: Financed by AFD

GCWWMIIP-P2/ADB/RQ/01/DSIDC/ICB-01/2017

Condition Assessment and Urgent Repairs of Sewer Lines for Colombo Municipal Council Area

3,700,000.00

ICB Prior 1S1E Q2 / 2018 Prequalification of Bidders: N Domestic Preference Applicable: N Advance Contracting: N Bidding Document: Large Works

Lot 1: Gravity Sewer Lines in CMC District 3, District 4 and District 5

2,950,000.00

Lot 2: Force Sewer Mains (CFM-9, CFM-5 New & OLD Line) in CMC District 2B and District 5

750,000.00

TBD/1 Supply and Installation of Bulk Meters

1,000,000.00

NCB Prior 1S1E Q4 / 2018 Prequalification of Bidders: N Domestic

Preference Applicable: N Bidding Document: Goods

3. Consulting Services Contracts Estimated to Cost $100,000 or More The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.


Value Recruitment


Advertisement Date


Proposal Comments

MDTD Consulting services for Modernization of MDTD Training center

680,000.00 QCBS Prior Q4 / 2017 FTP

Assignment: National Quality-Cost Ratio: 80:20 Advance Contracting: N

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services

Contracts Less than $100,000 (Smaller Value Contracts)

The following table lists 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


Bidding Procedure

Advertisement Date


GCWWMIIP/AFD/EQUIP/OPER/ICB/06

Mechinery & equipment for operation and maintenance activities of Western Production Section

999,000.00 7 ICB Prior 1S2E Q1 / 2017 Prequalification of Bidders: N Domestic Preference Applicable: N Advanced Contracting: N

60

Bidding Document: Goods

Lot 1: Lot A 582,000.00

Lot 2: Lot B 60,000.00

Lot 3: Lot C 3,570.00

Lot 4: Lot D 22,000.00

Lot 5: Lot E 53,000.00

Lot 6: Lot F 21,430.00

Lot 7: Lot G 257,000.00

PD/GCWWMIIP/EQUIP/ICB/09-1R

Operational Equipment for RSC – WC

518,068.00 3 ICB Prior 1S1E Q2 / 2017 Prequalification of Bidders: N Domestic Preference Applicable: N Advanced Contracting: N Bidding Document: Goods

Lot 1: Lot A 99,310.00

Lot 2: Lot B 400,000.00

Lot 3: Lot C 18,758.00

tbd 1 Supply of Vehicles for MDTD

329,000.00 1 NCB Post 1S2E Q3 / 2017 Prequalification of Bidders: N Domestic Preference Applicable: N Advanced Contracting: N Bidding

Document: Goods

tbd 2 Training Equipment and furniture for MDTD

494,000.00 6 SHOPPING

Post Q3 / 2017 Advanced Contracting: N

tbd 3 Office equipment for PMU & Consultant’s office

101,000.00 6 SHOPPING

Post Q3 / 2017 Advanced Contracting: N

tbd 4 Minor tools & Equipment for leak repair teams for Colombo city

196,000.00 2 NCB Post 1S1E Q3 / 2015 Prequalification of Bidders: N Domestic Preference Applicable: N Advanced Contracting: N Bidding Document: Goods

Lot 1: Package 1-Supply & delivery of GPS equipment (active leakage activities of Colombo City)

140,000.00

Lot 2: Package 2

56,000.00

62

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date


Proposal Comments

None

B. Indicative List of Packages Required Under the Project 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). Goods and Works

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure

Comments

None Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Type of Proposal Comments

None

C. List of Awarded and On-going, and Completed Contracts The following tables list the awarded and on-going contracts, and completed contracts. 1. Awarded and Ongoing Contracts Goods and Works

Package Number

General Description

Estimated Value

Awarded Contract

Value Procurement


Date (quarter/year)


Contract Award

Comments

Equip 1 Operational Equipment for RSC – WC

644,000.00 831,927.87 ICB Q3 / 2015

GCWWMIIP/ADB/VEHI/NRW/ICB/08

Supply and delivery of 7 Nos of short wheel based Crew Cabs

513,000.00 361,643.00 ICB Q1 / 2015 15-DEC-15

GCWWMIIP/ADB/BUILD/Maha/NCB/01

Construction of office buildings for Area Engineers - Maharagama

460,000.00 427,775.50 NCB Q3 / 2014 20-FEB-15 Post review approval

GCWWMIIP/ADB/PH/NCB/05

Construction of pump house at Elihouse (Civil Works)

505,750.00 439,033.85 NCB Q4 / 2015 22-JUL-16

GCWWMIIP/ADB/BUILD/TRAIN

Construction of proposed training centre,

6,400,000.00 7,062,021.05 NCB Q1 / 2017 22-SEP-17

Cent/NCB/08

hostel building & canteen at Thelawala

GCWWMIIP/ADB/PH/M&E/NCB/06

Mechanical & Electrical work for proposed Pump House at Elli House Resovoir Premises

1,870,000.00 1,595,861.67 NCB Q4 / 2016 08-JAN-18

GCWWMIIP/AFD/AMB/CIVIL/ICB/03

Supplying and laying 5 km dia 1200 mm DI pipes from Gothatuwa to Colombo City Limits, construction of ground reservoir of 15000m3 , pump station and buildings at Gothatuwa; construction of booster pump station and a dia 500 mm DI pipeline to Moragasm

20,500,000.00 17,055,752.87 ICB Q1 / 2015 14-SEP-17

GCWWMIIP/AFD/AMB/CIVIL/ICB/04

Supplying and laying 9 km dia 1200 mm DI pipes from Ambathale to Colombo city limits

19,192,000.00 19,493,060.00 ICB Q4 / 2014 22-MAY-15 Financed by AFD

GCWWMIIP/ADB/CIVIL/ICB/04

System rehabilitation for NRW reduction in South part of the Colombo city

49,000,000.00 53,109,009.19 ICB Q2 / 2014 02-SEP-16

GCWWMIIP/ADB/CIVIL/ICB/03

System rehabilitation for NRW reduction in West part of the Colombo city

38,500,000.00 47,227,376.39 ICB Q4 / 2015 01-AUG-16

Consulting Services

Package Number

General Description

Estimated Value

Awarded Contract

Value Recruitment


Date (quarter/year)


Contract Award

Comments

GCWWMIIP/AFD/CONSULT/DRCSC/QCBS/02

Design Review and Construction Supervision Consultancy Service for Ambathale Water Supply System Improvement & Energy Saving Project & Town East of Colombo District Water Supply Project

3,210,000.00 3,484,532.00 QCBS Q2 / 2014 16-JUL-15

GCWWMIIP/ADB/SSS/DSIDC/01/2014

Design Supervision and Institutional Development Consultants

4,000,000.00 3,665,684.00 SSS Q3 / 2014 03-AUG-15

64

NGO Capacity building of communities with consultation and participation activities for Colombo City

480,000.00 479,504.53 QBS Q1 / 2015 20-MAY-16

D. National Competitive Bidding

A. Regulation and Reference Documents 1. The procedures to be followed for national competitive bidding shall conform to the provisions prescribed in the Procurement Guidelines 2006 for Goods and Works issued in January 2006 by the National Procurement Agency, and the specific procedures prescribed by the Procurement Manual issued in March 2006, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines. B. Procurement Procedures

1. Eligibility 2. The eligibility of bidders shall be as defined under Section I of ADB’s Procurement Guidelines (2015, as amended from time to time) (the “Guidelines); accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in Section I of the Guidelines.

2. Registration and Sanctioning 3. Registration is acceptable under the following conditions:

(i) Bidding shall not be restricted to pre-registered firms under the national registration system of the Institute for Construction, Training and Development (ICTAD), and such registration shall not be a condition for the submission of bids in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (i) shall be allowed a

reasonable time to complete the ICTAD registration process; and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

(iii) National sanction lists or blacklists may be applied only with prior approval of ADB.

3. Prequalification

4. Prequalification is discouraged for NCB. When used, particularly for works contracts, an individual prequalification exercise is acceptable for each contract as is the use of a registration system (or approved standing list) of contractors based on criteria such as experience, financial capacity, and technical capacity. Foreign bidders from eligible countries must, however, be allowed to register and to bid without unreasonable cost or additional requirements.

4. Advertising 5. The posting of NCB specific notices for contracts valued at less than $1 million on ADB’s website is not required but is highly recommended.

5. Preferences

6. The following shall be observed:

(i) No preference of any kind shall be given to domestic bidders or for domestically

manufactured goods.

(ii) Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations, leaving compliance with these requirements for after award and before signing of contract.

6. Participation by Government-Owned Enterprises

7. Government-owned enterprises in the Democratic Socialist Republic of Sri Lanka shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the Project Executing Agency or Implementing Agency.

7. Rejection of Bids and Rebidding 8. Bids shall not be subjected to a test for unrealistic rates. No lowest evaluated and substantially responsive bid shall be rejected on the basis of comparison to rates, including but not limited to market, historical, or agency established rates, without prior approval of ADB. 9. Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.

8. Price Negotiations 10. Price negotiation shall be allowed only where the price offered by the lowest evaluated and substantially responsive bidder substantially exceeds costs estimates. Approval of ADB is required prior to any negotiation of prices.

C. Bidding Documents

9. Acceptable Bidding Documents 11. Procuring entities shall use standard bidding documents acceptable to ADB for the Procurement of Goods, Works and Consulting Services, based ideally on the standard bidding documents issued by ADB.

10. Bid Security 12. Where required, bid security shall be in the form of a certified check, a letter of credit or a bank guarantee from a reputable bank.

11. ADB Policy Clauses 13. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB.

14. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question.

66

15. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that 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 or any integrity violation in competing for, or in executing, ADB-financed contract.

APPENDIX 4: OUTLINE TERMS OF REFERENCE FOR CONSULTANTS UNDER PROJECT 1 and 2 AND AFD CONTRACTUAL COFINANCING

A. NRW MANAGEMENT AND CONSTRUCTION SUPERVISION CONSULTANT4

Introduction

NRW MANAGEMENT AND CONSTRUCTION SUPERVISION CONSULTANT (NRWCSC) A. Introduction 1. Background Colombo city water supply system is one of the oldest in the Asia, Built in 1886’s pipes in the water distribution system. Since then the same distribution system extended to provide water to cater the high demand with different types of pipes that were available. The total length is around 900 km of which approximately 563 km is Cast Iron (CI) pipes. Other pipes are PVC (235 km); DI (30 km); Steel (8 km) and nearly 1.2 km of GI & AC pipes. Average water supply to the city is 296,000 cubic meters (Cu.m) per day to satisfy the total domestic & non-domestic demand. The system having different sizes of service connection sizes varies from 12 mm to 300 mm (1/2” to 12”) and nearly 127,000 metered customer service connections. Colombo Water supply distribution system was operated and maintained by the Colombo Municipal Council (CMC) until the year 2001. The distribution system was not rehabilitated as per the standards during that period creating severe problem of high Non-Revenue Water (NRW) percentage in the system. However, nearly half of the supplied water (145,000 Cu.m) does not generate any revenue thus indicating approximately 49% of NRW (non-revenue water) of the considered area. Since taking over by the NWSDB in year 2001, the organization has been implementing various strategies to reduce NRW of Colombo City. Greater Colombo Water and Wastewater Management Improvement Investment Programme (Project 1 & 2) (hereafter referred as “The Project”) as a major step and the project is targeting to reduce the NRW percentage by a significant amount (from 49% to less than 18%). Project The Government of Sri Lanka undertakes the Greater Colombo Water and Wastewater Management Improvement Investment Programme on the recommendation of the National Water Supply and Drainage Board (NWSDB) with the financial assistance from the Asian Development Bank (ADB) and the Government of Sri Lanka (GOSL). The overall project was split into two by considering boundaries of the Area Engineer’s jurisdiction. Part of this financing (from Project 1) will be used for payments under the contract named above.

4 Initial PAM indicated Management and Advisory Consultants ( MASC) which was cancelled and advertised as

NRW MANAGEMENT AND CONSTRUCTION SUPERVISION CONSULTANT as most of the detailed designs were

completed by the EA by the time the consulting firm was recruited.

The project comprises of (i) establishing Greater Colombo NRW reduction mechanism; (ii) rehabilitating the water distribution network; (iii) strengthening institutional, operational and maintenance capacity of NWSDB; and (iv) Increasing public awareness on NRW. The major objectives of the project are: (i) to increase of water supply availability and efficiency in Colombo city; (ii) enhance the distribution system and reduce NRW from 49% to 18% by the year 2020; (iii) to establish a long-term mechanism to reduce NRW; (iv) to enhance the institutional, operational and project management capacity of NWSDB. The indicative scope of physical works for the Project included, but not limited to: 1) Replacement of System Input Volume (SIV) meters with electromagnetic meters including remote reading facilities; 2) Rehabilitation of Colombo city water distribution network by replacing Cast Iron (CI) pipes with HDPE, PVC & DI pipes as per DMA concept, reservoir based zoning and de-scaling & relining larger diameter pipes, introducing reinforcing pipes, establishment of DMA’s with electromagnetic meters for remote reading;( refer the Annex 1 for the Project Area map) a. Area covered under the Project 1 1) Package 1: Mattakkuliya, Modara, Kotahena, Grandpass, Bloemendal, 2) Package 2: Welikada, Boralla, Dematagoda, Maligawatta (Part), Maradana b. Area covered under the Project 2 Package 3: Fort, Slave Island, Part of Kollupitiya, Union Place Package 4: Narahenpitiya, part of Cinnamon garden, Thimprigasaya, Bampalapitiya, Havelock Town, Wellawatta, Kirulapone, Package wise indicative sizes of the pipes and length

Pipe Package 1

Package 2

Package 3

Package 4

TOTAL

HDPE (63-400 mm) 100.46 115.22 93.56 154.65 463.89

DI (300 -1000 mm) 6.85 10.09 7.39 4.53 28.86

Relining (250-800 mm) 7.67 11.00 17.57 8.27 53.56

Pipe Bursting (100-800 mm) 8.92 11.95 2.68 2.93 51.19

uPVC (110 -225 mm ) 16.6 6.77 2.46 3.66 29.49

TOTAL 140.5 158.53 131.80 196.16 626.99

3) Supplying & Laying of Transmission mains. 4) Replacement of identified large customer meters with electromagnetic meters; 5) Replacement of defective water meters; 6) Calibrating the water supply system and updating of the GIS network; 7) Replacement of spaghetti pipes with larger diameter pipes; 8) Construction of a NRW Office building and control room & Area Engineers offices and Training Center. 9) Rehabilitation of plumbing systems in government owned apartments in Colombo City.

10) Implementation of Active leakage control policies, speed and quality repairs; 11) Pressure management in District Meter Areas (DMA) and establish Customer service Management on GIS based model; 12) Implementation of effective public awareness campaign with effective participants of women and NGOs. 13) Community awareness of communities through NGOs. 14) Establishing of GIS based asset registry for Regional Support Center for Western Central (RSC – WC): 15) Implement an enterprise resource management plan in utilities to improve institutional effectiveness – Establishment of autonomous business center for RSC-WC. 16) Any other activities / works required to successfully complete the project (i.e. variation orders etc). Current Status of the Project EOI ( Bid No : CWSSIP/ADB/MASC/QCBS/01 ) and subsequent RFP was called during December 2012 for Management Advisory and Supervision Consultants (MASC), however due to unavoidable circumstances further proceedings was suspended. Presently NWSDB is implementing this project by using its own staff/expert along with individual international experts such as NRW Management & DMA Expert and Hydraulic Network Modeling. Also NWSDB may recruit any other individual experts deemed necessary. These individual consultants to assist the in-house supervision team and the Project Management Unit (PMU) for the first 12 months, starting from first quarter of 2015. This will be followed by the NRW Management & Construction Supervision Consultant recruited by this tender. By the time NRWCSC firm is recruited the main packages under the Project are expected to be in the following stages

Project Contract Package Stage Project 1

System Rehabilitation for NRW Reduction in North Part of Colombo City

Contract Duration : 42 Months Contractor : TODA –Sierra Joint venture Contract awarded on 30th October 2014.

System Rehabilitation for NRW Reduction in East Part of Colombo City

Contract Duration : 48 Months Stage : Bid evaluation Contract awarded on 12th March 2015.

Construction of Area Engineer Office at Elie House

Contract Duration : 18 Months Stage : Bid evaluation Target awarding time 3rd Qtr 2015.

Construction of NRW Office Building at Maligakanda

Contract Duration : 18 Months Stage: Bid to be advertised. Target awarding time 1st Qtr 2016.

Public awareness and media consultants

Contract Duration : 48 Months Stage: EOI evaluated & firms shortlisted. Target awarding time 1st Qtr 2016.

System Rehabilitation for NRW Reduction in West Part of

Contract Duration : 48 Months Stage : Bid evaluation is in progress

Project 2

Colombo City Target awarding time 2nd Qtr 2016. System Rehabilitation for NRW Reduction in South Part of Colombo City

Contract Duration : 48 Months Stage : Bid evaluation Target awarding time 3rd Qtr 2015.

Construction of Training Center at Polwaththa

Contract Duration : 30 Months Stage: Procurement of design consultants is in progress. Target awarding time 2nd Qtr 2016.

Rehabilitation of Plumbing Systems in Government owned apartments

Contract Duration : 30 Months Stage: 4 Packages (One will be advertised in 2nd Qtr 2015) Target awarding time 2nd Qtr 2016.

Recruitment of NGO for capacity building of communities

Contract Duration : 48 Months Stage: EOI evaluated and firms shortlisted. Target awarding time 1st Qtr 2016.

Implementation Arrangement The Executing Agency is the Ministry of Urban Development, Water Supply and Drainage (MUD&WSD) and Implementing Agency is National Water Supply and Drainage Board (NWSDB). A Project Steering Committee has been formed to guide Project Management Unit (PMU) on the Project preparation and implementation. The PMU established within the NWSDB, with NWSDB staff led by a Project Director; a senior management level staff for the duration of the Project. PMU will be responsible for the overall implementation, management and institutional development activities of the Project and will be required to efficiently and effectively manage, coordinate, and monitor the Project. The PMU will also lead the institutional change considered necessary to ensure the sustainability of NRW reduction Programme within NWSDB. Overall responsibility of the NRW Management & the Construction Supervision of the Project 1 &2 will carry out by the recruited Consulting firm with the coordination of the Project management Unit. NWSDB will provide the staff shown in the Table 3 who will work with the consultant on secondment basis. Considering the heavy traffic and inadequate space in narrow roads, approximately 65% of system rehabilitation works have been considered to be carried out during night hours. Accordingly, it is expected, that NRWCSC Consultancy firm to supervise during day & Night based on the Civil contractor’s approved work plan. Day Work: 8.00 AM to 5.00 PM Night Work: 9.00 PM to 5.00 AM The total project cost is US$ 219 million with financing from ADB to be US$ 164 million and US$ 55 million from the Government of Sri Lanka (GOSL). The funds will be disbursed through two tranches, namely project 1(Tranche 1) being US$ 112 million and the project 2 (Tranche 2) being US$ 107 million. The project is to be implemented over a period of 54 months.

Consultancy Assignment NRW Management and Construction Supervision Consultant (NRWCSC) will be engaged by the Project Management Unit (PMU) under the National Water Supply Drainage Board (NWSDB) to provide advisory services on all Non-Revenue Water (NRW) related investments and activities, design review and recommendation on the designs done by the civil works contractors & other designs and construction supervision and project management for water supply investments under the Investment Program, with the ultimate objective of achieving NRW reduction in Colombo city to a level of at least 18% by the year 2020 and other objectives stated in the investment programme agreed between the ADB and Government of Sri Lanka.

Fig B.1: Implementation arrangement NRWCSC with the same expertise and qualifications will be required for both Projects 1 and 2, and will need to be engaged for about 48 months with a total estimated input of 654 person-months (109 international and 551 national). The NRWCSC are expected to be mobilized by the second quarter of 2016, and recruited by the NWSDB PMU using the quality- and-cost based selection (QCBS, 90:10) method in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). Objectives and Overall Scope of the Assignment The overall objective of the assignment is to assist NWSDB in successfully implementing the Investment Program and achieving NRW reduction targets in the areas covered under Project through various measures, such as the establishment of the district metering area (DMA) system & reservoir based zoning based on the hydraulic model carried out by the master plan update Project and the subsequent updates made by the CDTA consultants and individual foreign consultants, active leakage control, optimized pipe replacement and rehabilitation, enhancement of NWSDB’s capacity for NRW management, and creation of fully trained NRW units in Regional Support Centre – Western Central (RSC-WC) to maintain and improve NRW reduction achieved under the Investment Program. Key responsibilities of the NRWCSC are as follows:

NRW

SC

(From NRWSC)

(a) Advising on Design, Construction Supervision, and Engineering Services Review the design approvals given by the individual international consultants and the NWSDB in-house supervision team and take over. NRWCSC consultants will be made ultimate responsible for all the design and construction supervision aspects. The recruited firm is expected to provide a report together with inception report to PMU of NWSDB in relation to any issues regarding to the previous approval given by the NWSDB in-house supervision team & individual international consultants. If any such issues found, it shall be jointly attended and solved by NWSDB & NRWCSC. Supporting NWSDB in the prioritization of the infrastructure rehabilitation under the Investment Program and other internal and externally funded programs. Review the design carry out by NWSDB under Master plan update Project with subsequent review of CDTA consultant, International Individual Consultant and detailed engineering design carried out by the contractors under the each contract packages and construction supervision services for infrastructure implementation, including monitoring resettlement implementation. Assisting the PMU in procurement and contract management of all activities. Assisting the PMU in construction supervision of buildings to be constructed under the investment programme ( such as Area Engineer Office Mattakuliya, NRW Office building with meter testing facilities at Maligakanda, Booster pump house at Elie House, Training Center Building for NWSDB at Polwaththa, Office building for Area Engineer (Pamankada). Liaising with the other consultants / contractors recruited by NWSDB to carry out water supply systems improvements inside and outside the project area. Assisting the PMU in carrying out compliance monitoring under the resettlement plans and environmental monitoring in accordance with the relevant guidelines and policies of both ADB and the government. Responsibility for NRW Reduction Review & recommend the design for water supply improvements and the previous approvals granted by the individual international consultants & in-house supervision team, and supervising the same during implementation. Developing and implementing a detailed NRW strategy that factors in (a) the existing situation, (b) improvements from ongoing projects, and (c) phased and specific measures to be taken to reduce NRW to the targets outlined under the Investment Programme. Preparing training, identifying stakeholders to train in best practices on NRW reduction, and organizing and conducting training for both in-house and field staff. Managing all NRW teams in active leakage control, ensuring that they are equipped adequately. Ensuring that the overall NRW in Colombo city is reduced to at least 18% in year 2020. Analyzing the customer metering and billing system with reference to potential NRW issues and improvements. Advising, supporting, and training the NRW teams within NWSDB in implementing the NRW reduction program in an efficient, timely, and cost- effective manner and sustaining the NRW targets. Providing overall capacity building, training, and providing expert advice on all NRW reduction and service improvement issues of NWSDB. Improving Water Supply Services and Utility Management Establishing and verifying the geographical information system (GIS) network maps, examining and analyzing secondary data related to all aspects of the system in the city, reviewing and verifying the hydraulic model, and improving the quality of GIS information. Introducing relevant indicators to measure the productivity of system and staff.

Coordinating with other stakeholders and other agencies to meet the NRW objectives. Providing advice on recovered water sales, billing and collection reforms, and tariff reforms. Reviewing the DMA design, commissioning and DMA management for the Colombo city water supply. Updating the GIS-based asset management system for water supply for Western Central. Supporting Institutional, and Policy Reforms Implementation and Capacity Building Supporting NWSDB in the transition of Colombo city’s water services including RSC-WC, into an autonomous business center that is efficiently running, ring-fenced financially and administratively and financially viable to meet current and future costs of the system, by the end of 2017. Providing technical assistance and support to NWSDB managers and staff in reorganizing RSC-WC and implementing the policy and institutional reform plan agreed under the Investment Program. Developing, supporting, and strengthening the capacity of the newly transitioned RSC-WC in its (a) organization and management, (b) financial management and commercial operations, (c) operation and maintenance, and (d) internal regulation. Detailed Tasks The NRWCSC’s detailed tasks will constitute, but not be limited to, the following: (a). Component A: Non-revenue Water Reduction Management and Design Review Overall responsibility for design review of the projects, NRW reduction improvement for NWSDB related to Project areas and overall management system and practices. Analyze the DMAs with present scenario of NRW in Colombo city, identify deficiencies, and prioritize critical and important activities for improvement. Carry out water balance audits. Upon the installation of system input meters, measure and periodically update the NRW levels with establish. Advice the PMU on the approaches, study methodologies, options considered, and key findings and recommendations for successful completion. Validate and calibrate the GIS network Hydraulic model prepared under Master Plan update Project of NWSDB through the recommendation & suggestion of the CDTA & individual consultants. Ensure that all rehabilitation packages are designed on a district metering area DMA basis, with each DMA hydraulically isolated from the other DMAs. The DMAs should be of operationally manageable size with an appropriate number of connections. (ix) Review and ensure that a comprehensive survey of all consumers’ connections in each street in each DMA has been carried out by the contractor, and ensure that a list and network map of all those consumers’ connections have been prepared and validated, as these will be needed for disconnection once the rehabilitation work is completed in the respective DMA and old connections of such consumers have been transferred to the new network. Assist NWSDB in preparing clear instructions and procedures for the disconnection of the old connections by the contractor. Ensure that contractor carries out the disconnection of old pipes during the execution of the contracts. Contracts are designed such that a certain percentage of the total contract value, apportioned for the particular DMA, may be withheld until the contractor disconnects all old pipes in the DMA. This is critical as the work of laying the new pipe and disconnecting the old pipe must be done at different points in time. The old pipe can be disconnected only once all

the new pipes have been integrated into the system and the entire new network is fully charged and commissioned. Once the new network is commissioned, the contractor can take up the work of verifying and disconnecting the old connections. The contractor should be required to provide a certificate or letter to NWSDB advising the completion of disconnection of old pipes, which will be verified by representatives of NWSDB. The payment withheld for disconnections will be released by NWSDB upon receipt of the verification of the disconnections based on the terms of payments described in the bidding document. NRWCSC to ensure that step commissioning by the contractor as per approved format, format consist of (a) procedures for pressure-testing the segments of pipe network; (b) sequencing plan and procedures for disconnecting the old connections and pipes; (c) procedures for NRW assessment in each DMA; (d) identification of all equipment and tools, such as isolating valves, meters, pressure gauges, needed to achieve a successful commissioning and measurement of the performance targets detailed;. Assist NWSDB in reviewing the validated or revised commissioning plan submitted by the contractor for approval at the following intervals: (a) prior to the works in the DMA; and (b) before actual commissioning of the network in the DMA. The contractor will take full responsibility for validating all required information including the map of old distribution pipes and connection points provided by NWSDB as part of the detailed design, and submit the updated information or map of the same as part of the commissioning plan at both these intervals. Organize orientation workshops in English and other local Language (Sinhala or Tamil) for NWSDB staff, contractors, and all their staff, and laborers before the start of rehabilitation works so that the concerned personnel fully understand and imbibe the objectives of such rehabilitation works with DMA and NRW reduction approach. Develop simple, short, user-friendly, easy-to-understand guidelines and procedures, also in the local language, for the orientation of personnel and implementation of these works for use by the lowest level of workers of the contractors. Ensure that all costs required for the implementation of the commissioning plan, such as disconnection of the old network, training of personnel and workers, preparation of training materials, measurement of performance indicators, etc., required for the successful commissioning and achievement of performance guarantees in the new network are included in the cost estimates of the contractor’s BOQ items. Guide and assist NWSDB in monitoring the step tests or equivalent carried out by the contractor in the newly laid or rehabilitated pipe network following the disconnection of old pipes in each of the DMAs. This step test or equivalent will determine the real physical losses and pressure in the newly constructed distribution network in the DMA according to the IWA guidelines.5Review & develop the procedures prepared by NWSDB for step tests6 or equivalent for the DMAs and issue to the contractor to measure the physical losses and pressure in the network. Review, amend and recommend contractor’s submissions of quality assurance and quality control (QA & QC) manuals delineating consistent, comprehensive, and uniform system of quality assurance and quality control of activities, including system checks of designs and description of type, frequency, and procedures of on-site as well as laboratory tests and inspections followed for design and construction to enforce the highest standards of quality.

5 The international Nonrevenue Water Assessment Matrix gives a basic assessment of NRW in terms of

more scientific unit of liters per Connection per day when the system is subjected to a certain pressure. The

commonly used indicator, percentage of NRW, is not appropriate and can be misleading, especially in

intermittent water supply systems.

6 Refer to the procedure for step tests given later.

Review, amend, and recommend for approval contractors’ submissions of a health & safety manual for each construction site to ensure the health and safety of construction staff and citizens, and monitor their implementation. Review, amend, and recommend for approval the contractor’s submissions of standard construction management systems to be followed by contractors at construction sites, comprising important components such as planning of activities (work plan); procurement of construction material and equipment; construction methodology; deployment of construction machinery; deployment of workers; deployment of funds. Review, amend, and recommend the contractor’s submissions of manuals and guidelines. Organize training and orientation workshops at appropriate times to ensure their proper and effective use to improve the quality of implementation and O&M. Review and recommend the contractor’s construction schedules and prioritize critical surveys in such a way that the detailed engineering design is carried out efficiently and expeditiously according to the implementation schedule of the project. Review and ensure that GIS information updates reflect newly laid pipes, specials and fittings and other components in the water network and attribute database (e.g., characteristics of pipelines including diameter, pipe material, depth, year of construction, current condition), and complete the mapping digitization Project areas. Prepare an asset registry with consumer details for comprehensive (future) maintenance; establish a GIS based asset management system and populate it. Review and recommend for approval engineering designs, construction methodology, technical specifications, and other information provided by the contractor to ensure they meet the objectives of the project and NRW targets under Project. All the designs should be in conformity with the best international and national engineering standards. All necessary calculations should be prepared to determine and justify the engineering solution proposed for each component, and incorporated into the design reports. On the basis of the detailed engineering design, prepare an implementation schedule, and update and monitor it frequently. Review and recommend the construction drawings with sufficient detail done by the contractor and guide the contractor in carrying out construction work effectively and unambiguously and to the highest standards of quality. Component B: Construction Supervision Formulate guidelines for contract administration delineating procedures and assigning responsibilities at various levels for day-to-day requirements, including measurement of works; certification and payment of contractors’ bills; release of retention money; approval of variation, time extension and contractors’ claim; issue of completion certificate; financial closure of contract; management during the defects liability period; management during the O&M period; and any other responsibility delegated according to the FIDIC standards. Supervise and monitor the construction of all project components under Project, prepare measurements for works completed and in progress, and verify bills for payment. Check the layout of construction to ensure conformity with the contract; propose any change in the plans, if required. Assess and enforce, according to standard construction management system, the adequacy of contractors’ input in terms of materials, equipment, construction machinery, workers, and construction approach and methodologies. Monitor and enforce, as detailed in the safety manual, the measures taken to ensure the safety of the workers, other project personnel, the public and the works. Review & recommend detailed drawings, submitted by the contractor for civil work contracts with revision as necessary.

Work as the engineer's representative within the context of conditions of the contracts. Regularly monitor physical and financial progress against the milestones, according to the contracts to ensure the completion of the contracts on time. Monitor and enforce, as detailed in the QA & QC manual, the quality of input, processes, and output during all construction activities to ensure the highest quality of works, conforming to the specifications and drawings. Examine contractors’ claims for time extension, variations, and additional compensation, etc., and recommend appropriate decisions. Assist PMU in resolving various other contractual issues and overall contract management under the Programme. Review and approve GIS updates after the Physical competition of the Contracts under the programme. Monitor the performance of the contractor during the defects liability period. Review the contractors’ work program with respect to resource allocation, activity sequence, duration, etc., and recommend the program. Review the contractors’ method statements and recommend approval before the start of the work; Review the contractors’ monthly claims, and recommend approval. Review and recommend the construction drawings with sufficient detail done by the contractor and permit the contractors to carry out construction work effectively and unambiguously and to the highest standards of quality. (c) Component C: Institutional and Policy Reforms Task 1: Organizational, Policy, and Institutional Reforms Assist NWSDB in finalizing the details of the 5-year decentralization and institutional building plan. Prepare operational action plan (OAP) that also incorporates the institutional and policy reforms outlined in the institutional and policy reforms plan under the Investment Program. Ensure that the OAP includes stepwise and detailed activities to be undertaken, and define all resource requirements and responsibilities. Develop and implement suitable organizational structure and staffing requirements for NWSDB. This includes the setting up of a full staff complement at the regional, area or district, and RSC-WC offices where the entire operations of the utilities are carried out. Define and prepare a functional chart describing the primary functions and responsibilities of each department or division in the organization. Based on the established functions and responsibilities. Prepare staffing requirements. Assist NWSDB in preparing for organizational changes and staffing of the organization. This includes filling newly identified positions, matching existing skills with the job requirements and placing staff in appropriate positions that may include lateral transfers or in some cases may involve promotion. Outside hiring shall be resorted to if the required expertise is not available in-house. Evaluate the capacity of existing staff and match them against position titles and work assignments. Some realignment may be necessary to place people where their skills are most suited. To carry out this activity, an inventory of staff and assessment of their capacity shall be undertaken and will be matched against the required skills and qualifications. Review and improve existing practices in recruitment and hiring, compensation and benefits, and staff development. With the new roles for the revenue centers/regional offices, current policies and procedures for personnel management shall be reviewed to align them with planned new roles for the revenue centers. Suggested changes in areas of human resource management that are not covered by the Dept. of Management Services, the Salaries Commission, and other government agencies shall be made. Design a responsive

compensation and benefit package that will motivate employees and address the problem of retaining qualified staff. b. Task 2: Financial Management, Accounting Reforms, Customer Service, and Commercial Operations Improvement. Develop a short-term, medium-term and long-term business plan and financial projections for NWSDB as outlined in the policy and institutional reforms plan for the Investment Program. These plans will support the OAP and will be the basis for monitoring performance and attainment of targets. They will indicate when the district office is likely able to achieve self-reliance and viability, and when dependence on govt. subsidy can be stopped. The business plan shall consist of a detailed action plan covering institutional, financial, and technical targets and financial projections for the short, medium, and long term (projected income statement, project balance sheet, and others), including water supply tariff requirements to support the detailed action plan. The financial and operational indicators shall be developed and agreed on between the head office and the revenue centers. These indicators will be the basis for monitoring performance and granting incentives to well-performing offices. The attainment of the agreed levels of service, financial, technical, and customer service targets and business plan shall form part of the loan covenants. Assess and prepare customer relations improvement strategy for NWSDB, consisting of a long-term program for improving customer service and relations including appropriate staffing and training. Assist NWSDB in implementing the strategy. Assist NWSDB in strengthening the Customer Service Center in each of the project areas. This includes the provision of necessary office space, facilities, and equipment to enable NWSDB to implement a customer service program that will effectively handle customer service requests and complaints. Assist the PMU and other stakeholders in establishing proper systems for accounting and financial management of NRW units in NWSDB. Work with PMU and other stakeholders in “ring-fencing” revenues and expenditures for RSC-WC. c. Task 3: Capacity Building and Institutionalizing Reforms in NWSDB Conduct a training needs assessment to determine the required capacity in various aspects of operations in addition to already identified training requirements under each subcomponent. Develop and implement a training program that will address the identified training needs under the subcomponents discussed in the foregoing. The training program shall cover technical, financial management, commercial, and administrative aspects of water supply and sewerage operations. Provide adequate support for training facilities and equipment, as provided in the budget, for the project sites. Develop and install appropriate systems and procedures for financial and commercial systems for the reorganized RSC-WC, and train staff to use them. The systems and procedures will be installed in each district office and the staff will be trained on the job. The systems and procedures to be developed shall be in the following areas: General accounting and financial reporting system; Financial planning and budgeting; Billing and collection; Fixed assets;

Purchasing and inventory management; Construction work in progress; and Disbursements. Review the existing billing system & suggest necessary improvements. Implement other follow-up training courses. After the installation of the customized systems and procedures above in the district offices, WSS, and RSCs, their staff will be provided further training in the areas of O&M, water supply planning and development, and financial management and general administration. Before the actual conduct of the training, a comprehensive training needs assessment will be conducted to obtain an updated training needs list. Strengthen training implementation in the local offices. With the anticipated amount of training that need to be undertaken under the various tasks above, the conduct of training will be best handled with a separate and dedicated training unit that looks after the training needs of the local offices. It is proposed that the training unit that will be set up during project implementation will handle training specific to the local officers. (d) Component D: Project Management a. Task 1: Overall Project Management and Project Financial Management Supervise contractors and NGOs, who will be engaged in community mobilization and behavioral change, for all tasks assigned to them and monitor their effective compliance according to their respective milestones and TORs. Carry out performance evaluation of contractors and NGOs including their specific personnel, and review and comment on various reports submitted by contractors and NGOs. On the basis of such reports, support the PMU to taking timely corrective action for the effective implementation of the Investment Program. Review and recommend all designs and drawings prepared by contractors. Establish a system of proof checking for all structural designs and drawings at appropriate levels. Regularly communicate and coordinate with other utilities and authorities before, during, and after the works to ensure the smooth implementation. Anticipate in advance and obtain, in a timely manner, the required clearances, permits, approvals, sanctions, or any other information from relevant competent authorities so that the project activities are not unduly delayed. Assist contractor in obtaining approval or clearance from relevant authorities for implementation. Coordinate with the NWSDB and the public in the interruption of water supply to facilitate the construction work and with the media consultants for its announcement to the stakeholders. Provide regular feedback to PMU for timely corrective action. Establish a separate financial accounting and control system for the project under the Investment Program, and assist the PMU in administering the loans in accordance with ADB’s disbursement guidelines. Establish all necessary records and the procedures for maintaining/updating such records for each subproject and assist the PMU in maintaining the same. Ensure accurate and timely submissions of all required reports to NWSDB, the government and ADB through the PMU. Establish systems for smooth and timely funds flow from ADB or the Government to NWSDB and contractors. Develop and implement procedures for timely payments to the contractors and monitor for compliance.

b. Task 2: Establishment and Implementation of Project Performance Monitoring System (PPMS) Prepare a project performance monitoring system (PPMS) according to the agreed design and monitoring frameworks (DMFs) and in accordance with ADB’s guidelines. Implement the PPMS, including a benchmark survey and subsequent monitoring and evaluation surveys. Continuously monitor the progress against the PPMS, prepare regular progress reports, and take appropriate corrective action on the basis of the progress reports. Develop suitable monitoring mechanisms to ensure the timely completion of contracts to the highest standards of quality and the best construction management practices on site, including compliance with all safety requirements. Develop a computerized management information system for monitoring the progress of activities on the basis of the work plans for all stages (design and construction); regularly analyze the progress against the work plans including physical and financial progress of activities during construction; recommend ways to accelerate project implementation; assess reasons for delays, if any and identify measures for improvement. Undertake regularly site visits to monitor and supervise activities under the contracts, and provide actions or suggestions to improve the quality and pace of execution of works. c. Task 3: Social and Environmental Safeguards Compliance Monitoring Establish a system for monitoring the social and environmental safeguards; prepare indicators for monitoring the important parameters of the safeguards. Take proactive action to anticipate the potential environmental impacts and resettlement requirements, to avoid delays in implementation. Update the resettlement plan after the detailed design and detailed measurement and inventory of losses survey, and obtain ADB’s prior approval for public disclosure before the contract award. Ensure that the resettlement activities are carried out in accordance with the resettlement plan agreed on between the government and ADB and that any civil works begin only after the affected households have been compensated at full replacement cost. Update the initial environmental examination (IEE) after the detailed design and obtain ADB’s prior approval for public disclosure before the award of contract. Prepare and submit semiannual monitoring reports for social and environmental safeguards through the PMU to NWSDB, the Government, and ADB. Provide training for PMU, and other NWSDB staff involved in the project implementation to strengthen their capacity to manage and monitor social and environmental safeguards. d. Task 4: Gender Equality and Social Inclusion Action Plan Prepare and integrate indicators related to gender, social inclusion, and poverty in all project activities; ensure the collection of disaggregated data and analysis of the results, especially benefits from the project corresponding to these indicators. Implement, in consultation with the PMU and the NGO, a gender action plan for the active involvement of women as equal partners in all decision-making processes in the project and as prime beneficiaries of the project activities, and for the benefit of the poor and weaker sections on priority, with additional assistance, support and efforts. Provide input and sensitize important stakeholders to project objectives related to poverty, gender, and social inclusion, ensuring the inclusion of the poor, women, indigenous people, and other marginalized and vulnerable groups in subprojects.

Work in collaboration with the project NGO to develop specific criteria for identifying the poor and generate suitable mechanisms for targeting the poor for inclusion in the services to be developed under the Investment Program. Implement the public awareness program, in collaboration with the Media consultant. 7. Consultancy Service Requirements -Indicative Personnel Requirement Table 1: Estimated Experts and Persons Months requirements

Key Experts

Man- Months

Int Nat

Project Manager(Team Leader) 42

NRW Management (Deputy Team Leader) 48

Deputy Team Leader (Construction) 48

DMA/NRW Management expert 36

NRW ALC field expert 8

GIS expert 6

Pipe Network Design Engineer 12

Senior Construction Engineer 12

Junior Construction Engineer 12

Building Engineer 6

Trenchless , Relining & pipe bursting Expert 4

Procurement / Contract Management Specialist 42

Safety Manager 24

Environmental Management specialist 36

HR development & management specialist 3

Finance & Asset management system specialist 3 4

IT specialist 3 4

Change management specialist 4

Key Experts

Man- Months

Int Nat

Senior Public relation / Senior Training Officer 36

Senior Quantity Surveyor (01 No) 48

Sub Total 1 109 332

Non-Key Experts No Tot. MM

Table A2: Details of Staff, provided by NWSDB CATEGORY No TOT.MM Chief Engineer (GIS)/NRW 1 60 Chief Engineer (Hydraulic Modelling & Design)

1 60

Chief Engineer (NRW) 1 60 Engineer (Civil) 4 220 Sociologist 1 60 Engineering Assistant (Civil) 2 108 Auto-CAD Draughtsman 1 60 GIS Technician 2 108 PIU OFFICE Project Manager 2 108 Engineer (Civil) 16 650 Engineering Assistant (Civil) 38 1,473 ACTIVE LEAK CONTROL TEAM

Engineer (Civil) 1 54 Engineering Assistant (Civil) 3 153 Fitter 3 153 Driver 3 153 Labour 6 306 TOTAL 85 3,785

Specific Terms of Reference for the experts Project Manager / Team Leader (1 International)

Qualification General Experience

Project Related Experience

Overseas or Country Experience

Remarks

Professionally qualified Chartered Civil Engineer, Master degree in Project management is preferable.

Preferably 20 years’ experience in International / reputed organization, including 3 years’ experience as a Team Leader.

Preferably 15 years Post qualified experience in Managing the major Water supply Projects with at least 3 years’ experience in the NRW Projects and trenchless

Experience in 3 Countries at least 2 Countries in developing Countries.

Member from recognized professional institution in Engineering.

AUTO CAD Draughtsman + GIS Technician 1 27

Office Manager 1 48

Secretary 1 48

Clerk / Data Entry Operator 1 48

Office Assistant 1 48

Sub Total 2 5 219

technologies. The Project Manager / Team Leader bear the overall responsibility of the Management, Advisory and Supervision of the Project 1 & 2, Institutional & Capacity Building, Construction Supervision and Project Management. The Team Leader should be competent in Financial Management, reporting skill, interpersonal skill, Budgeting, Accounting, Costing, MIS, Audit, Project planning, Institutional Development, Communication skill and Leader ship skills to manage the Construction Project team and is responsible for quality assurance & quality control of the project. The duties and task of the Project Manager / Team Leader includes, but not limited to; Day to day management of all the staff under the NRWCSC and coordination of work among them having different disciplines. Support and advise the Project Director on day to day Project activities. Review existing reports and documents and other resources available and formulate solid implementation approach. Coordinate interfaces with stakeholders and creating a friendly atmosphere for delivery of results. Coordinate work of the civil Contractors to minimize delays and disturbance to the road users. Review Civil Contractors’ and ALC Teams’ work Programmes and direct them, where necessary, for non-conflicting working arrangements. Assist PMU in resolving contractual issues Recommend the contractor’s proposed trenchless technologies Recommend the contractor’s claims and the payments Monitor the financial performance of the project and ensure that the cash flows are in harmony with budgets. Devise methodologies to maintain the quality of work of the Contractors and mobilize the supervisory team effectively with least cost to the project. Planning the work of advisory staff in par with the time based changes to the work and ensures that the targets are met. Ensure that the project is delivered in time allocated for the work. Pay attention to the environment, health and safety, quality assurance & control, resettlement and social safeguards aspects to bring minimum delays and avoid loss of reputation to the project work. Carry out routine checks on NRW and take corrective actions to bring the project Programme to the correct path Organize and direct different teams and individual experts / officers for specified tasks and providing guidance to deliver results in line with the TORs for them. Prepare time based deliverables and submit to the PMU. Prepare project progress monitoring strategies in par with international best practices and follow them up. Represent the project in all the presentations and meetings. Coordinate with PMU & NRWCSC team and guide the entire project team. Utilize proper international methodology to achieve targets through time management. Use past experience & coordinate with PMU & civil Contractors and prepare PIP & construction methodology for the entire project. Understanding the gravity & specialty of the entire process need to be very precise and the best methodology in all sectors must be analyzed & finalized with all counterpart staff. Prepare strategies to encourage the whole construction team to complete the construction as scheduled. Prepare asset registry,

Prepare training Programme for PMU staff, O&M staff and Civil Contractors Update Costs, economic and financial information when necessary Review and Update GIS based model for the entire Project. Develop and Implement quality development Programme for all the works Develop O&M Manuals for future maintenance works Arranging monthly progress meeting with civil contractors Take disciplinary actions for willful or negligent violation of QA/QC aspects. Ensure that the materials for temporary and permanent work meet the standards. Ensure that the goods procured are loaded, unloaded, stored, transported to sites, stored at sites and handled to right standard at all times. Carry out routine and ad-hoc inspections of goods for permanent work. Maintain the quality records database(s), spreadsheets, and reports. Maintain control and issuance of Quality System Manual, Quality Procedures Manual, and Department Operating Procedures Manual. Produce procedure revisions. Maintain the training and qualification records for the Quality Assurance and Quality Control Departments, and where applicable, for other special process qualifications. Maintain external – standards, specifications, and recommended practices Work as a liaison with departmental leads to confirm Quality training requirements. Maintain a close working relationship with all levels of the Contractor’s staff, consulting staff and PMU staff to ensure that a system of open communication exists. Ensure the quality of receiving goods for temporary and permanent work. Ensure proper storage and handling of the goods received Ensure that the work is done to the accepted and approved drawings and specification. Carry out testing of finished work for conformity. Carry out sample testing from time to time as specified. Submit relevant documentation to get the approval of the goods. Remove defective and unacceptable work from work sites Issue conformity certificates and Manage non conformity complaints

NRW Management Expert / Deputy Team Leader (1 National) Qualification General

Experience Project Related Experience

International Org Experience

Remarks

Professionally qualified Chartered Civil Engineer. Master degree in relevant discipline is preferable.

Preferably 15 years’ experience in Managing the Major Water Project, Including 3 years’ experience as a Deputy TL/NRW Management expert.

Preferably 10 years in Leakage Control / UFW/ NRW management activities

Preferably 5 years work Experience with International / Multinational , Consultancy / Construction firm

Member of IESL.

The NRW Management Expert / Deputy Team Leader will assist the Team leader on NRW Management activities. The duties and task of the NRW Management Expert /Deputy Team Leader includes, but not limited to; Lead NRW team to assess the baseline NRW percentage of Colombo City (CC) after System Input Volume (SIV) meter installation, Assisting Team leader in Overall Project Management activities

Schedule Colombo City wide NRW reduction Programme and monitor & reduce NRW in Colombo City as highlighted in the project formulation documents. Develop the NRW management strategy for the team. Provide guidelines to create DMA Review PPTA document recommendations, provide suggestions for improvement and adopt IWA guidelines, international best practices in the NRW reduction strategy for Colombo City. Assist the Civil contractor in design review and recommend their work Provide guidelines to review DMA design done by the NWSDB and undertake enhancement to set up the mechanism for NRW reduction, as necessary. Prepare strategies and the ground work for further reduction of NRW after completion of the project. Provide guidelines for speedy leak detection and repair Programme, pressure management Programme, flow and pressure data acquisition, management & analysis, Advise and assist the Civil Contractor on Trenchless method of Pipe laying Supervise and guide the ALC team and update their work Programme Provide guidelines to improve hydraulic modeling, commercial loss reduction and management, integrated customer meter management, commercial loss monitoring on DMA basis, upgrading of customer meter test facilities, support GIS & modeling staff for improvement, upgrading and updating, introduction of NRW management communication strategies. Establish NRW reduction guidelines and procedures for the future O&M routine Maintenance works Supervise the Construction works and recommendation for the contractor’s work Construction Manager / Deputy Team Leader (1 National)




Remarks

Professionally qualified Chartered Civil Engineer, Master degree in Contract Management / relevant field is preferable.

Preferably 15 years’ experience in Managing the Major Water Project, Including 3 years’ experience as a DTL/Construction Manager

Preferably10 years in Construction Supervision of drinking water pipe laying and water distribution system rehabilitation Projects.

Preferably 5 years work Experience with International / reputed firms, Consultancy / Construction firm

Member of IESL.

The Construction Manager / Deputy Team Leader will assist the Team leader on Construction Management activities. The duties and task of the Construction Manager /Deputy Team Leader includes, but not limited to; Coordinate the entire project construction team for a successful & timely completion Carryout appropriate construction methodologies to suite the site situation specially for the trenchless methods Ensure the safety, quality control and quality assurance guidelines are in the field Organize the construction forces of the contractors to synchronize with the overall project management strategy. Ensure that the works carried out are paving way for systematic zonal management of NRW. Ensure that the works of the contractors are least disturbing to the third parties.

Liaise with NWSDB for coordinated work of the contractors not to affect continuous water supply to the consumers. Assist Project manager & the counterpart staff of PMU & NRWCSC to achieve the target within stipulated period. Prepare necessary construction documents (soft & hard version), filling systems, reporting methodology, deliverables & other necessary documents to complete the project successfully. Prepare progress reports. Monitor the entire construction progress & process. Advise and assist the Civil Contractor on Trenchless method of Pipe laying Evaluate contractor’s progress and report to Team Leader Recommend the contractor’s work Programme & claims Direct supervision of the Contractor’s work Prepare contract packaging working schedule, implementation Programme and cash flows Coordinate with PMU & PIU Staff, Contractor’s staff and NRWCSC consulting staff Ensure that any dispute arising with day to day work is resolved at site level NRW Management / DMA Expert (1International)




Remarks

Professionally qualified Graduate Graduate Civil Engineer, Master degree in relevant discipline is preferable.

Preferably 12 years’ experience in Managing the Major Water Project.

Preferably 8 years in Leakage Control and Management / UFW/ NRW management activities

Experience in 3 Countries at least 2 Countries in developing Countries.


The duties and task of the NRW Management Expert includes, but not limited to; Lead NRW team to assess the baseline NRW percentage of Colombo City (CC) after System Input Volume (SIV) meter installation, Schedule CC wide NRW reduction Programme and monitor & reduce NRW in Colombo City as highlighted in the project formulation documents. Provide guidance to establish DMA’s. Review PPTA document and International Individual consultants’ recommendations, provide suggestions for improvement and adopt IWA guidelines, international best practices in the NRW reduction strategy for Colombo City. Provide guidelines to review DMA design done by the NWSDB and undertake enhancement to set up the mechanism for NRW reduction, as necessary. Develop the NRW management strategy for the Colombo City Prepare strategies and the ground work for further reduction of NRW after completion of the project. Provide guidelines for speedy leak detection and repair Programme, pressure management Programme, flow and pressure data acquisition, management & analysis, Provide guidelines to improve hydraulic modeling, commercial loss reduction and management, integrated customer meter management, commercial loss monitoring on DMA basis, upgrading of customer meter test facilities, support GIS & modeling staff for improvement on NRW aspects, upgrading and updating, introduction of NRW management communication strategies.

Prepare the institutional development for O&M mainly regarding the NRW reduction Programme with consultation of other experts. Assist training expert to conduct training Programme on NRW reduction process DMA management for who involving the project and O&M staffs. Analyze & review proposed DMA design of NWSDB and verify with field data. Assist civil Contractor in application of the DMA concept design prior to pipe replacement. Finalize and approve establishment of DMA's in Colombo City Provide field training & international practices to NWSDB staff. Assist NRW expert to prepare DMA concept guidelines for Colombo City. Provide training on the use of electromagnetic meters, loggers, pulse units and other related equipment software to NWSDB staff. Carry out DMA flow and pressure monitoring and data analysis. Ensure integrity of DMA boundaries with necessary pressure management. Prepare and submit guidelines to calibrate inflow meters and other equipment. Maintain data loggers & other NRW equipment. Prioritize Leak detection activities. DMA tightness verification and commissioning of Pressure Regulating Valve (PRV). Installation and set-up of monitoring equipment for flow and pressure monitoring. Ensure that DMA meters installed at correct locations & their monitoring. Establish boundary valves.

NRW ALC field Expert (1 International)




Remarks

Professionally qualified Graduate Engineer Master degree in relevant discipline is preferable

Preferably 12 years’ experience in Managing the Major Water Project.

Preferably 8 years in Active Leakage Control and Management activities.

Experience in 3 Countries operating leak detection, utility line tracing, and other related equipment used in the field.


The duties and task of the NRW ALC field expert includes, but not limited to; Attend all fieldwork to reduce NRW using ALC methods Provide ALC field training to NWSDB-NRW field staff. Assess leak detection skills of NWSDB staff and train to detect difficult leaks especially in low pressure situations. Work with NWSDB leak detection teams in the difficult parts of the network with different characteristics Ensure all areas of NRW training are covered. Prepare work orders and follow up all leak repairs. Coordinate updating of GIS database on leak repair information.

Report identified illegal connections, customer meter tampering and other forms of water pilferage to NWSDB for legal and corrective action. Advise NWSDB on leakage control on the larger diameter distribution and trunk mains network. Develop a primary distribution network control Programme & carryout supervision for ALC activities. Assist the management of leak detection teams and planning of work.

GIS Expert (1 International)




Remarks

Graduate in Geology or related discipline, master degree in the related field is preferable

Preferably 12 years experience in applying GIS technology inany Projects.

Preferably 8 years experience in applying GIS technology in Water related project activities.

Experience in 3 Minimum Countries on the related project activities.


The duties and task of the GIS expert includes, but not limited to; Review existing GIS system and validate the model used. Identify best practices and design forms to update GIS and utilize international best practices and introduce those to NWSDB system. Update GIS information continuously with available field information and field data. Introduce systems to allow for regular updating for completion. Update established DMA data in GIS system and NWSDB network operations. Update the present GIS model with water consumers details Integrate modeling software with other software solutions that are being used by the NWSDB. Provide best knowledge & practices to relevant NWSDB staff on GIS. Technical co-ordination and support of GIS activities related to the Project and accommodate the O&M requirements. Planning and development of the geographic data management tools Advice and support on enhancing the compatibility of data and metadata structures with related systems, standards or regulations. Advice and support to Team leader and NRW experts on GIS related technical inputs. Preparation of online maps (with GeoServer) for data review and analysis as well as reporting. Preparation of spatial data queries (with PostGIS database) for maps, graphs or tables. Production of printable maps (with ArcGIS or similar software) for reporting. Collection, compilation, or integration of external cartographic data as required for analysis or reporting needs. Support the preparation of presentations and reports related to GIS activities. Pipe Network Design Engineer (1 National)




Remarks

Professionally qualified

Preferably 10 years’ experience

Preferably 5 years’ experience in

Experience in 2 Minimum

Knowledge in Water GEM

Graduate Civil Engineer or equivalent related discipline

in applying modeling technology in any Projects.

modern Modeling technology in Water related project.

Countries on the related project activities.

software or related.

The duties and task of the Modeling expert includes, but not limited to; Review network model given by the NWSDB, incorporate international best practices to update DMAs in the system. Calibrate the network model continuously with field data, and provide guidelines to improve the network. Train NWSDB staff in the application of network modeling software that is being used by the NWSDB. Update & calibrate established DMA data in to system & NWSDB network operations. Provide NWSDB with all NRW modeling data to allow detailed NRW level monitoring. Integrate modeling software with other software solutions that are being used by the NWSDB. Provide best knowledge & practices to relevant NWSDB staff in modeling. Assist the Civil Contractor, on update the GIS based model.

Senior Construction Engineer (1 National) Qualification General



Remarks

Qualified Chartered, Graduate Civil Engineer or equivalent, Master degree in the relevant field is preferable

Preferably 8 years’ experience in international / local reputed organization.

Preferably 6 years’ experience in managing the Major water supply / Civil Construction works.

Preferably 3 years work Experience with International / reputed local, Consultancy / Construction firm

member of IESL

The duties and task of the Senior Construction Engineer includes, but not limited to; Guide the supervisory project team, coordinate with other PMU & NRWCSC team staff and guide the entire project team. Utilize proper National/International methodologies to achieve targets. Use past experience & coordinate with PMU & civil Contractors and prepare plan & construction methodology for the entire project. Understanding the gravity & specialty (performance based benefit) of the entire process need to be very precise and the best methodology in all sectors must be analyzed & finalized with all counterpart staff. Monitor the progress of entire project and the achievement of construction progress. Prepare strategies to encourage the whole construction team to complete the construction as scheduled. Coordinate with other Engineers/Officers who are working in the neighboring areas. Recommend Contractors’ payment statements Provide guidance to the Contractors to interpret relevant contractual documents. Take measures to minimize contract variations. Oversee Contractors’ H&S and QA/QC aspects and ensure that those are fully adhered to. Report progress, disputes and all the other matters to the Project Manager. Review and recommend Contractors’ progress reports, method statements and other contractual documents and see that those are delivered in time. Conduct weekly, fortnightly and monthly meetings to assist the PM and avoid accumulation of unresolved issues.”

Junior Construction Engineer (1 National) Qualification General



Remarks

Qualified Graduate Civil Engineer or equivalent


Preferably 1 year experience in managing the Major water supply / Civil Construction works.

Preferably 1 year work Experience with International / local reputed, Consultancy / Construction firm

Associate Member of IESL

The duties and task of the Junior Construction Engineer includes, but not limited to; Assist the construction field staff. Report field variations to Senior Construction Engineer. Coordinate with PMU and field staff. Assist NRW Eng. to monitor & follow up the work of sub teams. Supervise & monitor contractor’s works as per contract documents. Contractor’s bill certification. Perform engineering duties as advised under supervision of Senior Construction Manager, Deputy Team Leader and Team leader, Take responsibility for engineering tasks, and perform associated calculations and analysis. Supervision and co-ordination of Technical Support staff. Building Engineer (1 National)




Remarks

Qualified Chartered, Graduate Civil Engineer or equivalent, Master degree in the relevant field is preferable


Preferably 6 years’ experience inmanaging the major Building Construction works.

Preferably 4 years work Experience with International / reputed local, Consultancy / Construction firm

member of IESL

The duties and task of the Building Engineer includes, but not limited to; Guide the supervisory project team for Building Constructions, coordinate with other PMU & NRWCSC team staff. Utilize proper National/International methodology to achieve targets. Use past experience & coordinate with PMU & Building Contractors and prepare plan & construction methodology for the Building Construction. Understanding the gravity & specialty (performance based benefit) of the entire process need to be very precise and the best methodology in all sectors must be analyzed & finalized with all counterpart staff. Monitor the progress of entire Building Construction Contracts and the achieving the performance; solely depend on the achievement of construction progress. Prepare strategies to encourage the whole construction team to complete the construction as scheduled. Coordinate work with other officers who are working in the neighboring areas. Recommend Building Contractors’ payment statements Provide guidance to the Contractors to interpret relevant contractual documents. Take measures to minimize contract variations. Oversee Building Contractors’ H&S and QA/QC aspects and ensure that those are fully adhered to the standards. Report progress, disputes and all the other matters to the PM.

Review and recommend Contractors’ progress reports, method statements and other contractual documents and see that those are delivered in time. Conduct weekly, fortnightly and monthly meetings to assist the PM and avoid accumulation of unresolved issues.” Trenchless, relining & pipe bursting expert (1 International)

Qualification General Experience Project Related Experience


Professionally qualified Graduate Mech/Civil Engineer or equivalent related experience

Preferably10 years experience in international / Multinational reputed organization.

Preferably5 years experience in the field of trenchless or relining.


The duties and task of the Trenchless, relining & pipe bursting expert includes, but not limited to; Coordinate with PMU, PIU and the Contractors and review project implementation process to use the techniques of trenchless technology. With the assistance of PMU, PIU & NRWCSC coordinate with other stakeholders involved in trenchless activities such as Colombo Municipal Council (CMC), Road Development Authority, Ceylon Electricity Board, All telecommunication providers and other cable network providers to develop a successful trenchless construction process. Instruct PMU, PIU and the Contractors to accurately collect complete details of utilities laid within the surrounding subsurface space prior to each construction. In trenchless technology, subsurface utility data collection is one of the most important aspects and it is imperative that the details are accurately known. Select the most appropriate technique to suit the site condition prior to construction; Identify the need for adequate site and soil investigation; accurate subsurface interpretation; unforeseen ground conditions. Recommend appropriate steps to avoid damages to existing utilities based on the degree of risk and vulnerability of key infrastructure. As this technology utilizes remotely controlled equipment, identify and recommend the most suitable capacity equipment prior to construction. Ensure proper safety arrangements in the site. Identify the correct specifications; adhere best practices and appropriate workmanship prior to each construction based on specific site condition. Assist PMU at different stages including activity sequencing; pre-requisites for executing each trenchless construction; administrative approvals; technical approvals; equipment and material approvals; operator qualification approvals; utility data reporting formats; site management details reporting formats, remedial measure formats that can be provided to the executing agencies. Develop contingency plan prior to each activity as trenchless technology construction involves heavy risk, if failures are not fully understood. Provide proper guidance to PMU for organize the appropriate construction methodology to complete the activity successfully. Such as coordinate, quality control / quality assurance, sufficient compaction, backfilling, removal of the excavated materials, proper work practices etc. Submit as-built drawing and other relevant details to PMU on completion of each activity.

Based on contractor’s pipeline condition assessment reports, analyze and provide best suitable recommendation or options for relining of existing pipelines in the distribution system. Provide training and guidelines to NWSDB staff on trenchless technology and pipeline condition assessments. Assists PMU to settle any dispute arises during construction in amicable manner. Procurement/Contract Management Specialist




Remarks

Professionally qualified Graduate Engineer or Equivalent-IESL recognized institution, Diploma in Procurement or equivalent is preferable

Preferably10 years experience in international / local reputed organization.

Preferably5 years experience in procurement management in similar construction related activities.

Preferably 3 years work Experience with International / local reputed, Consultancy / Construction firm

member of recognized professional institutional

The duties and tasks of the Procurement Specialist includes, but not limited to; a) Assisting Team leader / Deputy Team Leader in Overall Project Management activities. Development of Procurement Plan (PP) or plans b) Developing and maintaining during project implementation, a comprehensive procurement filing system consisting of physical and electronic files and logs by contract. c) As soon as it is available, submitting to the Client all procurement information for dissemination through the Client’s project website, including, summary procurement plans, procurement notices, bid evaluation reports, details on contract awards d) Draft and arrange the publication of Specific Procurement Notices (SPN) in accordance with ADB Guidelines and specific requirements of the Loan Agreement. e) Supervising contracts for the supply of goods and equipment in accordance with the respective contract including the processing of payments and letters of credit, physical inspection and testing, receipt and transfer of the goods to the Client and closing of respective contracts. f) Ensure compliance with the ADB safeguards/guidelines. g) Assist the PMU on the Contractual issue & variation orders. h) Assist PMU on pre tendering & Post tendering procurement activities. i) Draft periodic reports of the progress as required j) Perform other duties as required by the PMU/PIU Safety Manager (1 National)




Professionally qualified in relevant area of expertise, Master degree in the relevant field is

Preferably 10 years experience in international / local reputed organization.

Preferably 5 years experience as a Safety officer for managing the Major water supply / Civil Construction works.

Preferably 3 years work Experience with International / local reputed, Consultancy /

preferable Construction firm.

The duties and task of the Safety Manager includes, but not limited to; Experience working within safety guidelines in the field Implement the Construction Safety Management Program initiatives Monitor project activities with the review of the construction management team and design procedures, Programmes, and policies affecting construction safety on projects. Develop and implement safety measurements/metrics for tracking and reporting safety performance of the General Contractor self perform work and subcontractors. Assist in the development and acceptance of job hazard analysis (JHA), Site Safety work Plans, Public Hazard Analysis, and Environmental Management Plans. Engages in Site safety inspections, coordinating corrections with all contractors. Reviews and oversees procedures for the investigation of construction related incidents and accidents. Develop and implement Contractor Orientation procedures for a multi-lingual work site. Management level loss control reviews for all Workers Compensation and GL Claims and Safety Inspections Statistical information to develop and present technical reports. Facilitates all pre-bid/ post award contract meetings represent the loss control performance expectations. Provide general safety oversight and performance of both administrative and field safety management responsibilities. Develop and maintain safety Programmes for regulation compliance and establish correct personal protective Equipment (PPE) system for construction staff Define safety Programme training requirements and train employees both in the field and in the classroom on all required safety Programmes needed by position to reduce and/or eliminate on-the-job injuries (i.e.: Emergency Preparedness, Electrical Safety, Machine Guarding, PPE, Fall Protection, Scaffolds, Ladders, Forklift, Proper Lifting, Pipe jacking, etcW) Evaluate hazards within the office, warehouse, and project sites for safety, health, and environmental risks Resolve the third party damages issues and cooperate with insurance claims for such compensation schemes Create or support construction in the creation of Site Specific Safety Plans (SSSP) and ensure that 100% of projects have a SSSP on site Inspect and approve the Traffic diversion plan and cooperate with the Contractor when obtaining the permission for excavation along roads from Police Evaluate sub-contractor SSSP compliance Inspect and audit commercial and residential project sites, offices, and warehouses for safety Programme compliance Write safety audit reports and issue corrective actions for non-compliance found during inspections Support the Safety & Quality department and its staff in any way necessary to ensure the highest level of safety and quality exists on each and every project site.

Environmental Management Specialist (1 National)




Remarks

Professionally qualified Graduate Civil Engineer, Master

Preferably10 years experience in

Preferably5 years experience in environmental

Preferably3 years work Experience with

Member of IESL

degree in Environmental Engineering or equivalent is preferable

international / local reputed organization.

assessment, or environmental safeguard or monitoring similar construction related activities.

International / local reputed, Consultancy / Construction firm

The duties and task of the Environmental Management specialist includes, but not limited to; Organize an orientation workshop for the MUDWS&D and NWSDB officials involved in the project implementation on ADB Safeguards Policy Statement, Sri Lankan environmental laws and regulations, and environmental assessment process; Organize an induction course for the training of contractors, preparing them on EMP implementation, environmental monitoring requirements related to mitigation measures, and taking immediate action to remedy unexpected adverse impacts or ineffective mitigation measures found during the course of implementation; Ensure design and location of works are selected according to the environmental criteria for project selection; Conduct rapid environmental assessment as per ADB REA checklist and submit to PMU; Conduct environmental compliance audit of existing facilities as per Item F, Appendix 4 of ADB SPS, 2009; Prepare project IEEs and EMPs; Update the initial environmental examination (IEE) and environmental management plan (EMP) during detailed design stage; Check the EMP in bidding documents and civil works contracts; Comply with all government rules and regulations regarding site and environmental clearances as well as any other environmental requirements (e.g., permit from Coast Conservation Department, permit from Geological Survey and Mines Bureau, excavation permit from Department of Archaeology, written consent from the Central Environment Authority, tree-cutting permits, use of non-explosive/chemical blasting agents for rock breaking, etc.), as relevant; Oversee implementation of the EMP during construction, including environmental, health and safety monitoring of contractors; Coordinate with the NRWCSC resettlement specialist, NGO, and media contractors on mitigation measures involving the community and affected persons; Take corrective actions when necessary to ensure no environmental impacts; Review compliance reports by contractors and submit monthly environmental monitoring reports to the PMU; and Address any grievances through the grievance redress mechanism in a timely manner as per the IEEs. Ensure the public is safe at work places in and around Ensure that the workers are safe in the work place Ensure that the workers follow H & S standards Take disciplinary action against the defaulters Ensure the H & S of all the stake holder staff involved in the work. Ensure that the public in and around the work area is safe against site specific risks and dangers Ensure the h & S of road users where the work is involved with a road. Ensure the safety of equipment Ensure that the PPE are up to required standard Report H & S concerns to the management and the client Prepare Health and safety document Review and recommend the H&S manuals of the civil contractors to the PMU

HR Development and Management Specialist (1 International)




Professionally qualified Graduate in Human Resource, Master degree in management is preferable.


Preferably5 years experience as Human Resource person or Management Specialist or related activities.

Preferably3 years work Experience in International / Multinational firm

The duties and task of the HR development and Management Specialist includes, but not limited to; Ensure the administering various human resources plans and procedures for all personnel. Responsible for maintaining labor relations and developing positive employee relations. Assists in evaluation of reports and decisions. Recommends new approaches, policies, and procedures to effect continual improvements in efficiency of services performed. Assists in development and implementation of personnel policies and procedures; prepares and maintains employee handbook and policies and procedures manual. Administers hourly compensation Programme; monitors performance evaluation Programme and revises as necessary. Manages change in the workplace by designing effective communications strategies and efficient delivery systems for implementation Maintains a high level of knowledge of general state and federal employment compliance requirements; Understands and utilizes fair employment policies and procedures to create a non-discriminatory work environment. Understands and utilizes benefits and compensation policies and procedures Maintains Human Resource Information System records and compiles reports from database; updates and maintains company organization charts and employee directory. Develops and maintains various employment information, other records, reports, and logs to conform to regulations. Assists in recruitment effort for exempt and nonexempt personnel and temporary employees and participates in new hire orientation. Participates in administrative staff meetings and attends other meetings and seminars. Maintains Human Resource Information System records and compiles reports from database; updates and maintains company organization charts and employee directory. Will assist in the development and implementation of various training Programmes. Performs other related duties as required and assigned.

Finance and Asset Management System Specialist (1 International)



Remarks

Professionally qualified Graduate Accountant.

Preferably10 years experience in international / Multinational reputed

Preferably5 years experience in international accounting stad & procedures and at least 5 years exp in

Experience in 2 Minimum Countries on the related project

member of recognized institution

organization. Asset management. activities. The duties and task of the Finance and Asset Management system specialist includes, but not limited to; Establish a sound accounting practice and systems to manage resources available at the Project: Develop budgetary control process, design budget procedures and budget formats: Ensure the timely payment of Contractor’s claims. Develop and Maintain the financial and Asset management system acceptable to GOSL, ADB and the NWSDB: Develop mechanism for transfer of funds from treasury to Head office and head office to Project Director’s office: Review the financial Management system and Asset Management System of NWSDB and make recommendations for optimal integration: Develop and train the PMU staffs to Maintain the disbursement according to the ADB guideline: Coordinate with PMU and other stakeholders to maintain and develop system for finance and asset Management for the entire project: Finance and Asset Management System Specialist (1 National)




Remarks

Professionally qualified Graduate Accountant.


Preferably 5 years exp in ADB accounting standards & procedures and at least 2 years experience in Asset management.

Preferably3 years work Experience with International / local reputed firms

member of recognized institution

The duties and task of the Finance and Asset Management system specialist includes, but not limited to; Assist to Establish a sound accounting practice and systems to manage resources available at the Project: Assist on Developing budgetary control process, design budget procedures and budget formats: Assist to ensure the timely payment of the contractor’s claims. Develop and Maintain the financial and Asset management system acceptable to GOSL, ADB and the NWSDB: Develop mechanism for transfer of funds from treasury to Head office and head office to Project Director’s office: Review the financial Management system and asset management system of NWSDB and make recommendations for optimal integration: Update the present GIS model with water consumers details Develop and train the PMU staffs to Maintain the disbursement according to the ADB guideline: Coordinate with PMU and other stakeholders to maintain and develop system for finance and asset Management for the entire project: IT Specialist (1 International)




Professionally qualified Graduate Computer Science or Engineering or equivalent


Preferably5 years experience in Water related input update and system maintain or any other utility Project or maintenance


The duties and task of the IT specialist includes, but not limited to; Setup client software, grant and maintain access rights backup data and provide support for the Geographical Information System (GIS) and Networking: Prepare IT budget and monitor spending appropriately recommend the suitable geographical information system for the objective identified and implement Formulate GIS base system and assist all the experts and PMU while trouble shooting Study the existing billing system and implement appropriate billing system Create data base for maintain necessary information Establish mechanism to update data base. IT Specialist (1 National)


Project Related Experience International Org Experience

Professionally qualified Graduate Computer Science or Engineering or equivalent

Preferably8 years experience in international / Local reputed organization.

Preferably3 years experience in Water related input update and system maintain or any other utility Project or maintenance

Preferably3 years work Experience with International / Local reputed firms

The duties and task of the IT specialist includes, but not limited to; Setup client software, grant and maintain access rights backup data and provide support for the Geographical Information System (GIS) and Networking: Prepare IT budget and monitor spending appropriately recommend the suitable geographical information system for the objective identified and implement Formulate GIS base system and assist all the experts and PMU while trouble shooting Study the existing billing system. Change Management Specialist (1 International)



Professionally qualified Graduate degree in management or equivalent,


Preferably5 years experience as water /utility Management field

Experience in 2 Minimum Countries on the related project activities

The duties and task of the Change Management specialist includes, but not limited to; Analysis of the best practice for the NRW reduction such as zone management, Develop Programme to educate Proposal for the new institutional setup related to NRW, Exploring the independent autonomous utility and company or management outsourcing under the NWSDB

Apply a structured change management approach and methodology for the client change caused by projects and change efforts. Develop a change management strategy based on a situational awareness of the details of the change and the groups being impacted by the change. Conduct readiness assessments, evaluate results and present findings in a logical and easy-to-understand manner. Develop a set of actionable and targeted change management plans – including communication plan, implementing plan, training plan, strategic plan and resistance management plan. Support the execution of projects with the assistance of ADB and NWSDB. Create and manage measurement systems to track adoption, utilization and proficiency of individual changes. Identify resistance and performance gaps, and work to develop and implement corrective actions Create and enable reinforcement mechanisms and celebrations of success. Work with project teams to integrate change management activities into the overall project plan. Work with communication, training and HR specialists in the formulation of particular plans and activities to support project implementation. Senior Public Relation / Senior Training officer (1 National)



Professionally qualified Graduate in Social Science/ Civil Engineering or equivalent

Preferably10 years experience in international / Local reputed organization.

Preferably 5 years experience as Public relation/ training officer in foreign funded projects.

Preferably 3 years work Experience with International / Multinational firm

The duties and task of the Senior Public relation officer includes, but not limited to; Conduct public awareness campaigns on issues related to water conservation in house hold level Promote a participatory and gender sensitive development approach within the Project Team to help effectively implement the Gender Action Plan Develop and implement a comprehensive gender responsive benefit monitoring and evaluation Programme Develop and Implement a sex disaggregated data base for the project Work in close co-ordination with the PRO (PMU) and the existing Public Relations Division of NWSDB. Assist the PMU in overseeing design of the campaign by the media agency, including: Co-ordination of inputs of the RS (NRWCSC), Community Development, Participation and Outreach Expert (NGO), WASH Expert (NGO), Gender and Development Specialist (NGO) for the media campaign, Conveying the public awareness requirements of different project components to the media agency, Bringing in elements of best practices in media campaigns in similar development projects across the globe. QA/QC over publicity/awareness material developed by the media agency. Co-ordinate yearly revision of campaign strategy Co-ordinate preparation of op-ed (opposite editorial page) articles by NWSDB/local academicians/ADB specialists

Co-ordinate awareness generation activities with school children and college goers in Colombo City: debates, quizzes, painting competitions on water / environmental conservation. Facilitate / participate in meetings as and when required. Prepare / submit quarterly progress reports on the campaign to the PMU for submission to ADB, including information and implementation progress. Assess the existing training setups, training capacity (Strength and weakness) of the training section of the man Power development & Training Section in the Head office and RSC(WC) Prepare the strategies, action plan with modulus and propose training requirements Prepare and implement training for Higher, Middle, and Lower level Management including skill and Un-skill working forces Work closely with other officers and implement institutional development training Programme Prepare the modules and arrange short term overseas training Programme for the key staff of the PMU and the RSC(WC) Conduct training Programme for project implementation staffs for the efficient of their output Senior Quantity Surveyor (1 National)




Remarks

Professionally qualified Graduate degreein Quantity Surveying or equivalent


Preferably 5 years experience as a quantity surveyor for the Water / utility related Project

Preferably 3 years work Experience with International / local reputed, Consultancy / Construction firm

member of recognized professional institutional

The duties and task of the Quantity Surveyor includes, but not limited to; Assist on reviewing of payment statements for the work under the Contracts. Assist for the Variation order evaluation and approval Checking the relevant document such as Contractor’s claim and Cost control Checking the quantities and rates of the contractor’s claims 9.0 Technical and Administrative support staff (National) The Consultant also provide following supporting staffs: Technical Support staff AUTO CAD Draughtsman + GIS Technician (1 no): 27 Person Months Office Management supporting staff Office Manager (1 No): 48 Person Months Secretary (1No): 48 Person Months Clerks (1 Nos) : 48 Person Months Office assistant (1 No): 48 Person Months

10.0 Schedule of Reporting and Submissions The Consultant shall prepare and submit the following reports to the Project Director in English. All the reports shall be submitted as stated has under and in an electronic and hard copy format. Inception report in 12 Copies, one month after the issue of letter of Commencement of work. Commissioning Report in 12 Copies

Progress report 12 copies at month interval , summarizing physical and financial situation of all work and contracts, progress achieved , difficulties encountered and issues to be solved Preparing all report with the guidance of the Project Director when ADB & GOSL request Report in Completion in 12 Copies 11.0 Office and Equipment The Consultant will solely responsible for the maintenance of office equipment (Computers, Printers, fax machine, photo copier, laminator, book binder, etcW) office furniture (Tables, chairs, Computer tables, Conference table, steal cupboard, file track, etcW) internet and communication facilities for the entire assignment period. By considering the traffic and minimize the disturbance to the public, Construction work to be planned and proper record shall be maintain in the PMU office. After completion of this assignment, all the items purchased under this, shall be handed over to the NWSDB. The Consultant have to Provide and maintain an office having approx. 14000sqft close to the PMU’s within the Colombo Municipal Council (CMC) area having adequate parking facilities. The consultant will solely responsible for maintenance of office equipment and office facilities.

Annex 01 Fig 1.1: Project Area Map with DMA zones

Fig 1.2: Project Package Details

102

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Chief Engineer

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104

B DESIGN, SUPERVISION AND INSTITUTIONAL DEVELOPMENT CONSULTANTS

Introduction

3. An international consulting firm with experience in designing and managing wastewater management improvement projects will be engaged for 5 years for a total of estimated input of GG. person-months (33 international and 780 national) in the first quarter of 2014 by CMC’s PMU as the Design Supervision and Institutional Development Consultant (DSIDC). The DSIDC will (i) prepare detailed designs; (ii) provide construction supervision; (iii) provide project management support in order to effectively implement the wastewater management investments of the Investment Program; (iv) provide institutional development support to CMC and (iv) review and recommend tariff reforms and implementation support associated with media program. The

expected design period is 24 months and supervision period is 36 months23. DSIDC will report to and be monitored by the CMC PMU, and will be engaged using the quality-and-cost-based selection (QCBS) method in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). Outline Terms of Reference 4. The scope of work of DSIDC will include, but not be limited to, the following: Pre-Designs Activities Review and analyze all existing secondary information, reports, data, documents, maps, policies, plans and records pertaining to scope of the Project and develop conceptual plans to fulfill the objectives of the Project. Examine the current status and propose for the project various important parameters such as planning standards; population projections; demand forecasting; design criteria; standard specifications and validate the flow model developed for the Investment Program. Prepare concept reports for each subproject and disseminate all relevant information and data to all important stakeholders. Prepare the work plan of consultants for the design phase and get approval from project authorities.

5. Present to PMU on a regular basis the approach, study methodology, options considered and their pros and cons, key findings and recommendations. Preparation of Manuals and Guidelines Prepare standard specifications for civil, mechanical and electrical works based on best international/national practices to ensure the highest standards of quality in design. Prepare Quality Assurance and Quality Control (QA & QC) Manual delineating a consistent, comprehensive and uniform system of quality assurance and quality control of the subprojects including but not limited to system of checks and reviews of designs; description of type, frequency and procedures of on-site as well as laboratory tests and inspections etc to be followed for design so as to enforce the highest standards of quality. Prepare Guidelines for planning standards; population projections; demand forecasting; design criteria; typical designs and drawings etc. Formulate Guidelines for preparation of bid documents; procedure for invitation, receipt, evaluation, approval of bids and award of contracts; standard bidding

23 Design and supervision activities/periods may overlap depending on the needs of the contract packages.

Appendix 4 55

documents; standards contract forms; and standard templates for bid evaluation reports, etc., as per ADB procedures.

Circulate the manuals and guidelines to the relevant stakeholders and organize trainings and orientation workshops at appropriate times to ensure their proper and effective use for improving the quality of designs. C Surveys, Studies and Investigations 1. Review available secondary data and reports and identify requirements of surveys, studies and investigations. 2. Schedule and prioritize the critical surveys in such a way that the detailed engineering designs can be carried out efficiently and expeditiously. 3. Conduct a sewer network asset condition survey to identify causes of recent sewer collapses; the extent of the problem; the location of cross connections between the sewerage and storm water networks and to ascertain the most suitable method for the rehabilitation and laying of new sewers proposed within the Project. 4. Carry out all required engineering surveys and investigations such as total station survey, geo-technical investigation, soil survey, construction material survey, ground water investigation, i.e., hydro-geological investigations, rainfall data collection, identification of underground utilities and their mapping, wastewater sampling and analysis. D Network Modeling, Sewerage GIS and Sewer Master Plan 1. Undertake sewerage network modelling reflecting the results of surveys, investigations and the GIS data, and test and verify the model for the use of detailed design of the subprojects. 2. Undertake feasibility studies and detailed designs for the future wastewater treatment facilities. 3. Provide data and assist carrying out necessary analysis using sewerage GIS and Network model for preparing wastewater master plan to reflect recent urbanization trend and future urban development plan, along with the vision and strategy for the next 30 years i.e. up to 2040. 4. Work in coordination with the Master Plan preparation consultant under ADB TA. 5. Train and assist capacity development of CMC sewerage engineers on network modelling and use of model for various simulations and analysis E Detailed Engineering Design 1. Prepare the engineering designs in sufficient detail to ensure clarity and understanding by all relevant stakeholders. All the design should be in conformity with the best international/national engineering standards. All necessary calculations to be prepared to determine and justify the engineering solution proposed for each component, and to be incorporated into the design reports. 2. Based on the detailed engineering design, prepare all necessary tender drawings, technical specifications, bill of quantities (BOQ), detailed cost estimates, implementation schedule etc. The technical specifications should be in accordance with the best international/national practices and should be prepared to achieve the highest standards of quality. 3. Prepare construction drawings with sufficient details to permit contractors to carry out construction work effectively, unambiguously and with highest standards of quality.

106

Appendix 4

(iv) Carry out value engineering to generate number of technically feasible designs for each subproject, work out the least cost alternative in order to ensure the best techno-economic designs. (v) Present to PMU on a regular basis the approach, study methodology, options considered and their pros and cons, key findings and recommendations thoroughly. (vi) Prepare detailed designs, drawings, engineering estimates, BOQ, bid document on item-rate basis for disconnecting storm water interconnections identified during investigations; (vii) Identify, based on network modeling, hydraulic analysis and sewer condition survey, the gravity sewers to be rehabilitated/re-laid and prepare detailed designs and drawings, engineering estimates, BOQ, bid document on item-rate basis for such a subproject. Establish proper systems and processes as per ADB Guidelines for effective execution of relatively more complex design-build-operate (DBO) subproject as a Public Private Partnership investment and operation. Work with PMU to decide fair, reasonable, and judicious qualification criteria for bidders in accordance with ADB procedures so as to have sufficient competition without compromising the quality. Prepare bid documents, along with detailed terms and conditions for the contract document clearly identifying the rights and obligations of each party. Include proper safeguards for O&M part by incorporating appropriate conditions in the bid document such as minimum number of required personnel, minimum monthly cost for O&M etc, so that the tendency to front-load the bid by quoting high amounts for construction part and abnormally low amounts for O&M part is effectively controlled. Assist the PMU in facilitating and expediting the whole procurement process for the contract package by completing technical specifications and detailed terms of contracts. (vi) Establishment of Sustainable Tariff System Review the O&M cost recovery mechanism for sewerage operations adopted by CMC and cost recovery policy developed by the Institutional Development Consultants of GCWMP and assist CMC in taking actions required to materialize the cost recovery as per the schedule agreed under the Project; Analyze various tariff structures and mechanisms as long term measures for cost recovery, and create an enabling environment for introduction of sewerage tariff in appropriate form (surcharge, volumetric tariff, new tax, etc.) to ensure recovery in the long run. Cary out willingness to pay surveys and public consultations including awareness and education when establishing the tariff structure. Review existing legal framework in introducing an appropriate tariff mechanism and draft necessary legal amendments and assist CMC in institutionalising the cost recovery policy and tariff collection mechanism. (vii) Contract Supervision and Management Supervise and monitor cleaning and condition survey of identified sewers, construction of all project components, prepare measurements for works completed and in progress and verify bills for payment to the contractors.

Appendix 4 57

B. Check line level, layout of construction to ensure conformity with the contract, propose any change in the plans, if required. C. Assess and enforce, as per standard Contraction Management System, the adequacy of contractors’ inputs in terms of materials, equipment, machinery, workers, and cleaning and survey approach and methodologies. D. Monitor and enforce, as detailed out in Safety Manual, the measures taken to ensure safety of the workers, other project personnel, general public and works. E. Furnish detailed drawings, with revisions as necessary, to the contractor, check contractors’ design and drawings for Design-Build-Operate contracts. F. Review and examine the process of passing of contractors’ bills and payments to contractors with special emphasis on minimizing the time taken in submission of a bill by the contractor and payment received by the contractor against such a bill. G. Attend third party inspections as necessary and provide certification on the quality of the supplies based on such inspections. Work as the engineer or employer's representative within the context of conditions of the contracts. Regularly monitor physical and financial progress against the milestones as per the contract so as to ensure completion of contract in time. Monitor and enforce, as detailed out in Quality Assurance and Quality Control (QA & QC) Manual, the quality of inputs, processes, and outputs during all activities of cleaning and condition survey to ensure the highest quality of works conforming to the specifications and drawings. Examine contractors’ claims for time extension, variations, additional compensation etc and recommend appropriate decisions. Assist PMU in resolution of various other contractual issues and overall contract management. After physical completion of contract, prepare planned maintenance procedures; check installation and commissioning; monitor preparation of the “as built” drawings. Monitor performance of the contractor during Defects Liability Period. Supervise contractors for all tasks assigned to them and monitor their effective compliance as per their respective milestones and TORs. Carry out performance evaluation of contractors including their specific personnel and give regular feedback to PMU for timely corrective action. H. Project Management Carry out all required activities for overall planning, implementation, management and monitoring of the Project; take a proactive role in advising the PMU on all project-related issues, including policy issues, loan covenants and special conditions. Supervise contractors and NGOs for all tasks assigned to them and monitor their effective compliance as per their respective milestones and TORs. Carry out performance evaluation of contractors and NGOs including their specific personnel and give regular feedback to PMU for timely corrective action. Review, give concrete suggestions for improvement and approve the feasibility reports, concept reports, preliminary and detailed engineering design reports and bid documents of all subprojects. Review and comment on various reports submitted by contractors and NGOs. Based on such reports, support PMU to take timely corrective actions for effective implementation of the Project.

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Review and approve all designs and drawings prepared by contractors. Establish a system of proof-checking all structural designs and drawings at appropriate levels. Regularly communicate and coordinate with other utilities and authorities before, during and after the works to ensure smooth implementation of the Project. Anticipate in advance and obtain, in a timely manner, the required clearances, permits, approvals, sanctions or any other information from relevant competent authorities so that the Project activities are not unduly delayed. Financial and Accounting Management Establish a proper financial accounting and control system for each subproject and for the entire project in PMU and administer the loan in accordance with ADB’s disbursement guidelines. Establish all necessary records and the procedures of maintaining/updating such records for each subproject and for the entire Project. Ensure accurate and timely submissions of all required reports to CMC, Government and ADB. Establish systems for smooth and timely funds flow from ADB/Government to CMC and contractors. Develop and implement procedure for timely payments to the contractors and monitor for compliance. Work with PMU and other consultants for ensuring sufficient financial allocation every year for implementation of all sub projects. Work with PMU and other consultants for ensuring sufficient financial allocation every year for O&M of sewerage. Work with PMU and other consultants to prepare medium term and long term capital investments in wastewater assets by assisting institutional, financial and management changes required. J Project Performance Management System (PPMS) and Benefit Monitoring Prepare PPMS as per Design and Monitoring Framework (DMF) for water components in accordance with relevant ADB guidelines. Implement PPMS including a benchmark survey and subsequent monitoring and evaluation surveys. Continuously monitor progress of the Project as per PPMS, prepare regular progress reports, and based on the progress reports take appropriate corrective action. Develop suitable monitoring mechanisms to ensure timely completion of contracts with the highest standards of quality and the best construction management practices on site including compliance with all safety requirements. Develop computerized system (MIS) for monitoring progress of subprojects based on work plans for all stages (design and construction); regularly analyze the progress against the work plans including physical and financial progress of subprojects during construction; recommend ways to accelerate project implementation; assess reasons for delays, if any and identify measures for improvement. Regularly undertake visits of construction sites, supervise the activities of the contracts and provide concrete suggestions for improvement of quality and pace of execution on sites.

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11. Social and Environmental Safeguards Establish a system to monitor social and environmental safeguards of the Project; prepare indicators for monitoring important parameters of safeguards. Take proactive action to anticipate the potential environmental impacts and resettlement requirements of the Project to avoid delays in implementation. Conduct due diligence on all possible impacts on land acquisition and resettlement following the RF of investment program resettlement framework (RF). As required, prepare Resettlement Plan (RPs) for wastewater components and update them after the detailed design and obtain ADB’s prior approval for public disclosure prior to contract award. Ensure that the resettlement activities will be carried out in accordance with the RP agreed between the Government and ADB and that any civil works will be commenced only after affected households have been compensated at full replacement cost. Prepare and update the Initial Environmental Examination (IEE) and Environmental Management Plan (EMP)s for the wastewater subprojects and update them after the detailed design. Ensure that the relevant environmental mitigation measures specified in the updated EMP will be incorporated in bidding documents and approved by ADB prior to issuance of invitation for bidding. Closely monitor and supervise that all mitigation measures and monitoring requirements set out in the RP and EMP are implemented and complied with throughout the Project implementation, and recommend necessary corrective actions to be taken. Prepare and submit the semiannual monitoring reports for social and environmental safeguards to the PMU so that the PMU will submit them to CMC, Government and ADB. Provide training programs to PMU, other wings of CMC involved in the Project implementation for strengthening their capacity in managing and monitoring social and environmental safeguards. 12. Implementation of Gender Action Plan Prepare and integrate indicators related to gender, social inclusion and poverty in all project activities; ensure collection of disaggregated data and analysis of the results, especially benefits from the project corresponding to these indicators. Implement in collaboration with NGOs the Gender Action Plan (GAP) for the projects under the Investment Program related to wastewater management part, and assist the PMUs in monitoring the same. Train and sensitize stakeholders on project objectives related to poverty, gender and social inclusion ensuring inclusion of poor, women, indigenous people, and other marginalized and vulnerable groups in subprojects. Work in collaboration with selected NGOs to prepare socio-economic profile of selected areas including social maps using appropriate techniques regarding social, economic, health and sanitation status of the community, especially focusing on the likely improvement in health status of the citizens; likely impact of health and hygiene; community participation and public education program to be implemented during the Project; willingness to pay for wastewater management; ability to pay for wastewater management; current and likely change in consumption pattern of sanitation services etc.

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Work in collaboration with selected NGOs to develop specific criteria to identify the poor and generate suitable mechanisms to target the poor for inclusion in the services to be developed in the Project.

3 AWARENESS GENERATION AND MEDIA CONSULTANTS

9 Introduction

6 A local media firm with experience in designing public awareness campaigns and social

marketing24 will be engaged for 4 years and a total of 25 person-months (for Project 2) in the third quarter of 2013 by NWSDB’s PMU as awareness generation and media consultants (AGMC). The AGMC will design, develop, package, and implement an effective and contextualized public awareness campaign, and will be selected using the quality-based selection (QBS) method in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). The AGMC should be experienced in designing public awareness campaigns and social marketing, preferably for government or externally supported projects. They must meet the following eligibility criteria: (a) show a proven track record in designing and implementing awareness campaigns for government or externally supported development projects; and (b) have a good background in social marketing.

7 The AGMC will report to the NWSDB PMU. They will develop and implement the campaign in close coordination with the public relations officer of the PMU, the communication specialist (Management Advisory and Supervision Consultant) and the team leader and participation and outreach expert, the gender and development expert and the WASH expert of the nongovernment organization also engaged under Project 1. = Outline Terms of Reference The AGMC will design and implement the media campaign with a focus on: (i) the relevance of the project, anticipated benefits in terms of improved service for all and lower environmental costs, cost of water production/supply, etc., (ii) benefits to women and poor households, opportunity cost savings for the community (improved water quality and pressure leading to lower burden of disease, lower burden on women related to water collection and caregiving), and the importance of paying for the service to be able to demand continued good service, benefits under the project for the poor and vulnerable and the means of gaining access to the benefits; (iv) water conservation and linkages between water, urban growth, and environmental management; (v) possible disruptions in water supply/sanitation access, as well as traffic-related impact and access impact, disruption minimization measures proposed, and grievance redress process; and (vi) key messages of the water, sanitation, and hygiene (WASH) campaign.

The target audiences will be (i) the general public, with special focus on school and college students and teachers, academicians, community-based organizations, residents associations, traders and vendors’ associations, etc.; and (b) under-served settlement communities. The key messages and campaign focus may need to change at different stages of the project. The campaign will be able to accommodate such changes. Awareness materials shall

24 Social marketing entails listening to the needs, desires, and voices of the target audience themselves and building a program on that basis. Such a focus on the consumer involves in-depth research and constant reevaluation of every aspect of the program.

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be developed not as a one-time activity, but at different points in time over the project period utilizing different media outlets (audiovisual, TV, print, digital, radio, etc.).

The AGMC’s scope of work will constitute, but not be limited to, the following: Working in close coordination with the public relations officer (PMU), the existing public relations division of NWSDB, the communications specialist (MASCs), the Team Leader and community development, participation and outreach expert, the gender and development expert and the WASH Expert of the project NGO in designing the campaign (decisions on key messages for specific target audiences, timing, locations, print space, etc.). The gender- and vulnerability-sensitive campaign will be developed in the three commonly spoken languages in Colombo City (Sinhala, Tamil, and English). Working in close coordination with the project NGO in designing publicity and awareness materials for the WASH campaign. All materials must be gender-and vulnerability-sensitive. Producing and developing publicity and awareness materials including a documentary film, television and radio spots, print ads, billboards and hoardings, cinema hall slides, flyers and brochures. Carrying out water interruption and public announcements and notices to stakeholders upon advice from the PMU, based on contractors’ notices. Developing and detailing the implementation strategy (e.g., how many spots in which television or FM radio channel, how many ads in which newspaper or magazine) for the campaign for the project period. Revisiting the design and implementation strategy at the start of each year and making appropriate changes as necessary. Organizing the publication of op-ed articles developed by the NWSDB local academicians and ADB specialists and coordinated by the communications specialist (MASCs). Organizing campaign implementation in close coordination with the (PMU) and the communications specialist (MASCs). Participate in meetings as and when required. Prepare and submit quarterly progress reports to the PMU including information on the status of implementation of its activities and feedback on the awareness campaign from the public. (iv) TRAINING SYSTEM MODERNIZATION CONSULTANTS (TSMC)

9 Introduction

K An international consulting firm with experience in human resource development will be engaged for a total of 3 years with an estimated input of 34 person-months (10 international and X. national) in the first quarter of 2014 by NWSDB’s PMU as the Training System Modernization Consultants (TSMC) to build the capacity of the Manpower Development and Training Division (MDTD) of NWSDB. The TSMC will report to the NWSDB PMU and will be engaged using the quality-based selection (QBS) method in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).

II Outline Terms of Reference

L. The TSMC’s scope of work will include but not be limited to the following:

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Review the present Training Need Assessment System of MDTD and design a system which is suitable to cater for present and future requirements. Study and assess the effectiveness of the current training program in terms of application to work environment, through development of a Training Impact Assessment System linked with Human Resource Development/Management to aid NWSDB in assessing effectiveness of training, and to use as a decision making tool for future investments on Training and Development. Conduct NWSDB-wide training needs assessment and analysis, using the proposed newly developed system. The needs analysis should take into account the knowledge, experience and competency of staff and their skill gaps. Prepare a training strategy which is aligned with the NWSDB Human Resource Development Program. Review and revise training system policies and procedure. Install safety nets that ensure new knowledge acquired and skills developed will be applied at work. Assess the current manpower at the MDTD and if they are able to respond to the needs of the NWSDB. Assess whether additional personnel will be required. Present recommendations that will ensure financial and operational sustainability of the training center in the long term. Prepare a report summarizing all of the above, the training strategy and work plan based on identified needs, indicating how key skills gaps will be addressed in the short and long term. It must also take into consideration the short and long term human resource development program of the NWSDB, integrating and planning for personnel movement/promotions. Hold stakeholder discussions for confirmation of scope of work and planned program. Compile updated training program, including curricula and modules, new training tools and reference materials. Develop Training of Trainers training module, and together with the MDTD, identify and train trainers. Advise on administrative and management arrangements for implementation. Develop and produce training tools (training kits / handouts / manuals / booklets and audio visual presentations) to suite present and future requirements. If available in the market, collect and compile. Conduct pilot –testing of priority training programs developed.

M At the completion of TSMC’s involvement, the following is expected to be achieved:

(i) There is a clear, effective and efficient training strategy and system developed for MDTD which includes policies and procedures that will ensure maximum cost-benefit from the training program. (ii) There is a training program designed based on the requirements of the NWSDB personnel, designed in line with the NWSDB human resource development program. (iii) The output of the CDTA for NRW Management and MASC, as well as the best practice from select RSC training units shall be incorporated in the training program. (iv) Training curricula and modules are developed and updated based on current developments and new technologies, modern teaching methods are applied. (v) There are updated training support materials as well as trainees’ information kits/handouts.

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State of the art training facilities are chosen for maximum benefit to the participants. There is an identified and trained trainer’s pool from the various sections of the

NWSDB.

5 COMMUNITY MOBILIZATION AND BEHAVIORAL CHANGE ON GOVERNMENT ORGANIZATION Introduction

14. A national nongovernment organization (NGO), with experience in working with low-income communities in Colombo City or Greater Colombo region in community mobilization, awareness building, behavior change, and information, education, and communication (IEC) programs including water, sanitation and hygiene (WASH) promotion, will be engaged as the community mobilization and behavioral change NGO (the NGO). The NGO will be engaged for total 3 years (covering project 2) and a total of 144 person-months (for Projects 2) in the fourth quarter of 2013 by the National Water Supply Development Board (NWSDB) project management unit (PMU), and will be selected using the quality-based selection (QBS) method in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).

15. The NGO will have experience in technical aspects of community-based water supply projects and must meet the following eligibility criteria: (i) show a proven track record in community mobilization, WASH-related activities, and work with communities on water supply-related issues for at least 5 years in externally supported projects; and (ii) have a good background in conducting participatory community-based works including public consultation and issue-based focus group discussions (FGDs).

16. The NGO will report to the project director of the NWSDB PMU and work closely with the social development and safeguards officer of the PMU. The NGO will be required to coordinate constantly with the MASCs and report on progress weekly to the team leader and the NWSDB PMU social development and safeguard officer, as well as to coordinate daily with the engineer in charge of the NWSDB Randiya unit. The NGO will be required to maintain detailed records of the manner in which it is performing its tasks and the results it has achieved. Scope of Work 17. The overall objective of the assignment is to support the Randiya Unit of NWSDB in scaling up its activities by: (i) forming water user groups in under-served settlement areas throughout the city, where individual connections shall be provided if feasible and decommissioning or metering and billing of standpipes currently providing free water is

proposed;25 (ii) conducting the WASH program and creating awareness and behavior change-related campaigns in communities and schools; (iii) implementing the gender action plan; and (iv) training NWSDB staff in community mobilization. The water user groups formed by the NGO will take responsibility for the payment of charges for metered standpipes and their maintenance. To this end, the NGO will work in partnership with the NWSDB to provide training. The associations

25 “Randiya” is a special program for the urban poor formulated by NWSDB in 2001 to motivate and assist low-income households in obtaining individual water supply connections. About 22,000 individual connections have been provided under the program. In 2009, the implementation of an additional component focusing on the metering of public water outlets (stand posts, toilets, and washing platforms) was begun. So far, 2,500 public stand posts have been decommissioned and about 250 water points metered under this component. NWSDB perceives the need for NGO support in scaling up these efforts to all under-served settlement in Colombo city.

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shall have both men and women residents of under-served settlement as members and the NGO shall ensure representation of women and other disadvantaged sections in their management committees. The NGO will be recruited to mobilize and form water user groups, targeting women as agents of change in managing and improving water supply and sanitation practices in their communities. The NGO will also implement a WASH awareness campaign in under-served settlement areas throughout the city. A consultation and participation plan (CPP) outlines specific outreach activities to raise awareness and ensure the meaningful participation of communities and stakeholders. 18 The NGO will be responsible for awareness generation among low-income communities on the need to pay for water from metered standpipes to enjoy and demand better water supply service, as well as on tariff structuring and the importance of standpipes metering for the provision of better services to all consumers (good quality water supply at adequate pressure) and opportunities for project-related employment. The organization will also implement a water, sanitation and hygiene (WASH) program in under-served settlement. The NGO will help the NWSDB project management unit (PMU) and management advisory and supervision consultants (MASCs) identify vulnerable households in under-served settlement requiring special protection. It will ensure that the voice of the poor is heard by project authorities and that their grievances, if any, are registered and redressed. The NGO shall be the link between the PMU/MASCs, the Randiya unit of NWSDB, and communities in under-served settlement.

19 The NGO’s tasks will constitute, but not be limited to, the following: Working in close coordination with the PMU and NSWDB in identifying and mobilizing under-served settlement communities, and conducting surveys to establish baseline socioeconomic profiles of under-served settlement communities.

Forming water user groups in under-served settlement in Colombo city, and ensuring adequate representation of women and disadvantaged and vulnerable persons in decision-making committees. Forms and trains women water user groups to manage common taps and undertake the O&M. Implementing WASH program. Generating awareness among communities in under-served settlement of the need for metering of standpipes, tariffs versus costs, project benefits, etc. Handling all technical matters related to the metering of public stand posts under the Randiya Program, in close coordination with the area officer in charge of the

NWSDB. Working in close coordination with the NWSDB PMU and media agency engaged for the public awareness campaign to ensure the dissemination of key messages that are gender-sensitive, and in a format easily understood by residents of under-served settlement, and the timely dissemination of information in under-served settlement on implementation schedules, possible disruptions, grievance redress procedures and expected average response time, during project implementation. Generating awareness among under-served settlement communities (especially among vulnerable affected persons), about employment opportunities, entitlements, livelihood compensation, transitional allowances, etc., available under

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the project; eligibility and procedures for gaining access to these opportunities and entitlements ;and facilitating access to employment.

Organizing training for community members (men and women) in the operation and maintenance of standpipes and reporting issues that they cannot resolve. Designing and demonstrating a phased exit strategy such that the sustainability of water user groups formed period and institutional capacity within NWSDB beyond the project period are ensured. Training NWSDB staff in community mobilization through on-the-job training and in-house presentations. Preparing new or updated training materials in community mobilization for the Randiya unit, including guidance notes and guidelines. Putting forth unresolved grievances of affected persons in under-served settlement before the NWSDB PMU, MASCs, grievance redress committee. Assisting the PMU in implementing and monitoring the gender action plan. Participating in meetings as and when required. Submitting monthly progress reports to the PMU in NWSDB.

20. In addition to the above tasks, after year 1 of involvement, the NGO shall have the following additional tasks until the end of Project 2 implementation:

Documenting the lessons learned each year, identifying problem areas and follow-up actions and campaigns to address the issues identified, and ensuring the sustainability of water user groups formed. Following up on and reinforcing key messages of the WASH program.

Following up on and reinforcing key messages of the awareness campaign among communities on water conservation, cost of water production, operation and maintenance of water supply systems, need for metering, project benefits, etc. Analyzing and reporting the gender impact of project interventions.

21. Preparing monthly progress reports to the PMU, including information and implementation progress on the CPP and gender action plan and its other activities.

C CONSULTANT SERVICES FOR DESIGN REVIEW AND CONSTRUCTION SUPERVISION (DCS) FOR AFD CONTRACTUAL COFINANCING AMBATHALE ENERGY SAVING, AND TOWNS EAST OF COLOMBO (TEC) WATER SUPPLY IMPROVEMENT PROJECT 22. The Assignment. The National Water Supply and Drainage Board (NWSDB) seeks consultant services for design review, and construction supervision of the energy saving improvements at the Ambathale Water Works, and the water supply network expansion in Towns East of Colombo (TEC). The scope of works is described in the terms of reference below.

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A Background

A.Ambathale Water Supply Headworks 23 The Ambathale water supply head works, located on the left bank of the Kelani River, 12 km east of Colombo, is the largest water intake and water treatment plant (WTP) facility serving the Greater Colombo service area. It comprises: (i) three intakes along Kelani River at Mulleriyawa with a design intake capacity 577,000 m3/d, with thirteen pumps supplying raw water to the Ambathale WTP; and (ii) three water treatment plants with total design capacity of 524,000 m3/d. 24 The production capacity of the Ambathale WTPs was expanded in five stages between 1966 and 2010, from 91,000 m3/d to 524,000 m3/d, as follows:

Stage I (1966) included: raw water intake and pumps, 12 rapid sand filters, 4,200 m3/d clear water reservoir and transmission pumps that deliver treated water to Kotte, Dehiwala and Towns South of Colombo (TSC).

Stage II Expansion(1978) included additional intake pumps, six rapid sand filters to increase the treatment capacity to 60,000 m3//d, and transmission pumps to deliver water to Maligakanda, Elie House and Church Hill reservoirs.

Stage III Expansion (1988) included a new intake with a capacity of 122,000 m3/d, additional clarifiers, modifications to the sand filters to increase the filtration rate, and installation of the Kolonnawa pumps.

Stage IV Expansion (1993-2005) included a new WTP with a production capacity of 182,000 m3/d, a Pulsater settler with a capacity 45,400 m3/day to improve water quality, and rehabilitation of intake pumps, Kolonnawa treatment facilities.

Stage V Expansion (2010) included additional treatment facilities for 45,000 m3/d and equipment. 25 Treated water from the treatment plant is pumped to the transmission network through two main pumping stations, to storage reservoirs to supply water through distribution system to large reservoirs at Elie House and Maligakanda in Colombo City and other reservoirs in the suburbs. Treated water is also supplied through gravity transmission mains to the Labugama and Kalatuwawa treatment plants that supply water to areas south and east of Colombo City. There are numerous tappings to the transmission mains to supply distribution systems; and NWSDB has no records of these tappings. There are also no specific water zonal boundaries making the management of water supply difficult and inefficient. The existing pumps at the pumping stations are over 30 years old, have low efficiencies, and consume high levels of energy to deliver water large reservoirs at Elie House and Maligakanda in Colombo City and other reservoirs in the suburbs. The transmission mains built many years ago, do not have adequate capacity to meet current demands, and result in high pumping costs due to increased friction in the pipelines.

1.High Energy Costs for Pumping and Transmission 26 Intake and Highlift Pumps at Ambathale. There are 13 raw water pumps at the three intakes from the Kelani River, and 27 highlift pumps at the Ambathale WTP. Energy consumption to operate the 40 pumps is high, and the average monthly electricity charges, in April 2013, was

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about LKR 60 - 64 million. The recent energy audit report indicated that the energy consumption of this system is extremely high, and recommended action to remedy the situation. Energy costs are projected to increase further with the new electricity tariff increase that became effective in May 2013. Based on the recommendation of energy audit reports, NWSDB has initiated action to replace the inefficient pumps.

* Treated Water Pumps at Two Pumping Stations. Treated water from the WTP is pumped to the transmission network through two main pumping stations, to storage reservoirs in Colombo City and suburbs to supply water through the distribution system. The existing pumps at the pumping stations are over 30 years old, have low efficiencies, and consume high levels of energy to deliver water to the large reservoirs at Elie House and Maligakanda in Colombo City and other reservoirs in the suburbs.

* Inadequate Capacity in Transmission Mains. There are several transmission pipelines are between Ambathale Treatment Plant and storage reservoirs at Elie House, Maligakanda, Kolonnawa and Jubilee. The two 20 inch diameter transmission mains from Ambathale to Elie House are over 100 years old, and do not have adequate capacity to cater even for current water demands. NWSDB incurs high costs for pumping through these mains due to increased friction in the pipelines. Replacement of these transmission mains with larger diameter pipes is necessary to reduce pumping costs. The numerous tappings from transmission mains to feed the distribution network in Colombo City as well as areas outside the city limits, lead to excessive energy losses during transmission.

* There are no alternative sources at present to supplement water supply in an emergency other than from transmission pipelines from the Labugama and Kalatuwawa systems supplying the Colombo City area. However, if these systems are used for extended periods, it will have an adverse impact on the supply of water to the other services areas, especially Towns East of Colombo District (TEC). Therefore, improvements to the Ambathale headworks and a few transmission pipelines are considered priority investment requirements that need to be addressed urgently before a breakdown occurs. Proposed New Water Supply Arrangements * In view of the high energy costs for pumping and prevailing inefficiencies in the transmission system, the National Water Supply & Drainage Board (NWSDB) has developed a plan to reorganize the water supply transmission arrangements, address the prevailing high energy costs for pumping, and the current inefficiencies in the transmission and distribution system through: (i) increasing the reliability of the supply to Colombo City by dedicating the Ambathale supply as the single water source for Colombo City in the future; (ii) utilizing the Labugama and Kalatuwawa systems to supply other areas including Towns East of Colombo (TEC); (iii) replacing pumps with low efficiencies; and (iv) constructing new larger diameter transmission mains to reduce friction losses. The above actions are considered necessary to: improve the reliability of water production at the facility; prevent production losses, even partially, as it would impact heavily upon residents as well as industries sited within the city which is developing rapidly.

6.The indicative scope of physical works for the Project is as below Ambathale Energy Savings Subproject

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36 The Ambathale Energy Saving subproject involves with following major works categorized in to three works contracts. Contract -1: Plant, Design & built Contract for improvements at Ambathale headworks.

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Components: Replacement of Pumps (11 nos) at intake & treatment plant at Ambathale Supply & installation of travelling screens at Intake Supply & installation of Gantry crane arrangement at Intake Rehabilitation of 13 nos of pumps at treatment plant Establishment of SCADA system for the full system at Ambathale Construction of control building at treatment plant site Introducing of backwash recovery system at treatment plant Carry out necessary piping arrangement & miscellaneous work at treatment Plant.

** Contract – 2: Supplying and laying 9 km dia 1200 mm DI pipes from Ambathale to Colombo City Limits (Thotalanga Junction).

Components: Supply & Laying of DI pipes apprx. 9km from Ambathale to Colombo city limits (Thotalanga junction) Carryout necessary pipeline connections at junctions.

Contract -3 : Supplying and laying 5 km dia 1200 mm DI pipes from Gothatuwa to Colombo City Limits, construction of ground reservoir of 15000m3 , pump station and buildings at Gothatuwa; construction of booster pump station and a dia 500 mm DI pipeline to Moragasmulla.

Components: Supply & Laying DI pipes approximately, 5km from Gothatuwa to Colombo city limits Supply & installation of pumps (04 nos) at Gothatuwa including construction of pumping station Supply & laying DI pipes approximately, 0.5km booster pumping line to Moragasmulla water tower; supply & installation of Booster pumps (02 nos) including construction of booster pumping station. Construction of 15,000 cum ground reservoir at Gothatuwa Construction of caretaker quarters, re-settlement works at Gothatuwa Carry out necessary piping arrangement & miscellaneous work at Gothatuwa.

KK. NWSDB will carry out the designs of pipe lines to be completed under Contract 2 & 3; which includes preparation of drawings of longitudinal sections, junction details & arrangement of valves. The selected contractor will be required to carry out the detailed designs for the Bridge/ culvert crossings, soil improvement requirements as described in Employer’s requirement.

39. Estimated Cost of Works. The total project cost for both Ambathale Energy Saving is USD 137.1 million, with USD70 million financing from Agence Francais de Developpment (AFD).

40. Project Administration Arrangements. A high-level NWSDB Project Steering Committee has been established to guide Project Management Unit (PMU) on project preparation and implementation. The PMU established within the NWSDB, with NWSDB staff led by a Project Director, of a senior management level staff, for the duration of the Project. The PMU will be responsible for the overall implementation, management and institutional development activities of the Project and will be required to efficiently and effectively manage, coordinate, and monitor the project.

Scope of Works of the Consultant.

120

42 The consultant will provide design review and construction supervision services to support project implementation. The Consultant will be responsible for carrying out design review and construction supervision works related to both subprojects in the TEC and Ambathale headworks, and transmission. 43 The Consultant will (i) review detailed design done by design and build (D&B) contractor as per preliminary design submitted by NWSDB; (ii) conduct construction supervision; (iii) project management in order to effectively implement & successfully complete the project. The Consultant will work closely with Project Management Unit (PMU) and Project Implementation Unit (PIU) of NWSDB.

44 Contract Duration. Though the total project period is 48 months, design & procurement period will take about 12 months, and the implementation period will be 36 months. The duration of the consultant services will be limited to 36 months stating from the year 2015.

(viii) Scope of work for the Design Review and Construction Supervision Consultant (CSC) 45 The scope of Construction Supervision Consultant (CSC) will include but not necessarily be limited to the following:

1. Construction Supervision (i) Construction Sites Management 8 Supervise and monitor construction of all project components, prepare measurements for works completed and in progress and verify bills for payment. 9 Check layout of construction to ensure conformity with the contract, propose any change in the plans, if required. 10 Assess and enforce, as per standard Construction Management System, the adequacy of contractors’ inputs in terms of materials, equipment, construction machinery, workers, and construction approach and methodologies. 11 Monitor and enforce, as detailed out in Safety Manual, the measures taken to ensure safety of the workers, other project personnel, public and works. 12 Furnish detailed drawings, with revisions as necessary, to the contractor, check contractors’ design and drawings for Design-Build contracts. (ii) Contract Administration Work as the engineer's representative within the context of conditions of the contracts. Monitor physical and financial progress against the milestones as per the contract to ensure completion of contract on time. Monitor and enforce, as detailed out in Quality Assurance and Quality Control (QA & QC) Manual, the quality of inputs, processes, and outputs during all activities of construction to ensure the highest quality of works conforming to the specifications and drawings. Examine contractors’ claims for time extension, variations, additional compensation, etc. and recommend appropriate decisions. Assist PMU/ PIU in resolution of various other contractual issues and overall contract management. After physical completion of contract, require the contractor to, prepare planned maintenance procedures; check installation and commissioning; monitor preparation of the “as built” drawings. Monitor performance of the contractor during Defects Liability Period and O&M period.

3 Appendix 4

Project Management

1. Overall Management of the Project

8 Carry out all required activities for overall planning, implementation, management and monitoring of the Project; take a proactive role in advising the PMU/PIU on all project-related issues, including policy issues, loan covenants and special conditions. 9 Review and comment on various reports submitted by contractors. Based on such reports, support PMU/PIU to take timely corrective actions for effective implementation of the Project. 10 Review and approve all designs and drawings prepared by contractors. Establish a system of proof checking all structural designs and drawings at appropriate levels. 11 Regularly communicate and coordinate with other utilities and authorities before, during and after the works to ensure smooth implementation of the project. 12 Anticipate in advance and obtain, in a timely manner, the required clearances, permits, approvals, sanctions or any other information from relevant competent authorities so that the Project activities are not unduly delayed. Financial and Accounting Management Establish a proper financial accounting, control system for the entire project, and administer the loan in accordance with AFD’s disbursement guidelines. Establish all necessary records and the procedures of maintaining/updating such records for each subproject and for the entire Project. Ensure accurate and timely submissions of all required reports to NWSDB, Government and AFD. Establish systems for smooth and timely funds flow from AFD/Government to NWSDB and contractors. Develop and implement procedure for timely payments to the contractors and monitor for compliance.

Project Performance Management System (PPMS) and projects Monitoring System 7 Prepare Project Performance Management System (PPMS) as per Design and Monitoring Framework (DMF) in accordance with AFD Guidelines. 8 Implement PPMS including a benchmark survey and subsequent monitoring and evaluation surveys. 9 Continuously monitor progress of the project as per PPMS, prepare regular progress reports, and based on the progress reports take appropriate corrective action. 10 Develop suitable monitoring mechanisms to ensure timely completion of contracts with the highest standards of quality and the best construction management practices on site including compliance with all safety requirements. 11 Develop computerized system (MIS) for monitoring progress of activities based on work plans for all stages (construction); regularly analyze the progress against the work plans including physical and financial progress of activities during construction; recommend ways to accelerate project implementation; assess reasons for delays, if any and identify measures for improvement.

122

Appendix 4 73

L Regularly undertake visits of construction sites supervise the activities of the contracts and provide concrete suggestions for improvement of quality and pace of execution on sites. (iv) Social and Environmental Safeguards 10. Establish a system to monitor social and environmental safeguards of the Project; prepare indicators for monitoring important parameters of safeguards. 11. Take proactive action to anticipate the potential environmental impacts and resettlement requirements of the Project to avoid delays in implementation. 12. Update the Resettlement Plan (RP) after the detailed design and detailed measurement survey and obtain AFD’s prior approval for public disclosure prior to contract award. 13. Ensure that the resettlement activities will be carried out in accordance with the RP agreed between the Government and AFD and that any civil works will be commenced only after affected households have been compensated at full replacement cost. 14. Update the Initial Environmental Examination (IEE) after the detailed design. 15. Prepare and submit the semiannual monitoring reports for social and environmental safeguards to the PMU/PIU so that the PMU/PIU will submit them to NWSDB, Government and AFD. 16. Provide training programs to PMU/PIU, other staff of NWSDB involved in the Project implementation for strengthening their capacity in managing and monitoring social and environmental safeguards. v Gender Equality and Social Inclusion Action Plan Prepare and integrate indicators related to gender, social inclusion and poverty in all project activities; ensure collection of disaggregated data and analysis of the results, especially benefits from the project corresponding to these indicators. Prepare, in consultation with PMU/PIU and NGOs, Gender Equality and Social Inclusion Action Plan for active involvement of women as equal partners in all decision-making processes in the Project and as prime beneficiaries of the project activities, and for benefiting the poor and weaker sections on priority and with additional assistance, support and efforts. Provide inputs and sensitize important stakeholders regarding project objectives related to poverty, gender and social inclusion ensuring inclusion of poor, women, indigenous people, and other marginalized and vulnerable groups in subprojects. Work in collaboration with selected NGOs to prepare socio-economic profile of selected areas. This includes social maps using appropriate techniques on social, economic, health and sanitation status of the community. Especially focusing on the likely improvement in health status of the citizens; likely impact of health and hygiene; community participation and public education program to be implemented during the project. Work in collaboration with selected NGOs to develop specific criteria to identify the poor and generate suitable mechanisms to target the poor for inclusion in the services to be developed in the Project. Implement, in collaboration with NGOs, Gender Equality and Social Inclusion Plan over the period of the Project.

74 Appendix 5

APPENDIX 5: CONSULTATION AND PARTICIPATION PLAN FOR PROJECT 2 AND AFD COFINANCING C&P Activity Target Stakeholders Type of Objectives of the C&P Responsi Time Cost

Participat Activity ble Frame Estimate ion Unit/Pers ons

Project Orientation 75-100 Government • Informati • Introduce the Project ADB Year 1: 1 $1,000 X

Workshop for officials, political on • Demonstrate the link Project Project 1= government officials, leaders of project sharing between improved water Team, orientatio $1,000 officers, political area and staff • Consultat supply infrastructure and MWSD n leaders and staff on consisting of ion good health, women’s worksho

the GCWWMIP representatives from • Shared empowerment, and p Project 2 (1 whole MWSD, NWSDB, responsi

• environmental conservation

day) External Resources bility Present Safeguards and Department of MOFP, • Shared Social and Environmental UDA, CEA, CMC, decision- Management Plans and MLD, RDA, PRDA, making disclosure requirements Police, MASC, project • Discuss roles and NGO and accountabilities of various

Contractor(s).

government units

• Discuss issues related to use of existing RoWs for the project, environmental and social risks and their mitigation

• Strategic and PMU, members of the • Informati • Develop strategic and NWSDB Planning Planning Action Planning Project Steering on action plans in accordance PMU, Worksho Workshop Workshop (1 Committee, MASC, sharing

• with the project road map MASC, p: : $750 X

whole day) private Contractor(s) • Shared Review compliance with ADB Annually 4 years =

• and project NGO responsi social safeguards, Project $3,000 NWSDB bility environment, and gender Team, PMU,

PMU/MASC • Shared •

frameworks and plans MASC PMU/MAS Monitoring decision- Discuss progress in Monitorin C Meetings (half making implementation, including g Monitoring day) • Control problems encountered and Meetings Meetings:

• means to mitigate/address : $300 X 2 PSC Meetings them Quarterly X 4 years

(half day) • Regularly report on the PSC

= $2,400 progress of

Meetings PSC implementation

: Meetings:

Quarterly $300 X 2 X 4 years = $2,400 Orientation All project-related • Informati • Construction management NWSDB Year 1: 1 $750x1 workshop for staff and labourers in on • Quality assurance PMU, worksho workshop Contractors/ Contractor‘s teams sharing • Core labour standards, MASC, p = $750 labourers • HIV/AIDS Contractor • Environmental and social s safeguards and mitigation measures

• Assistance to be provided to APs during construction

• Gender sensitization • Labour recruitment

2 Project orientation • 100 community • Informati • Introduce the Project, PMU, Year 1 $ 750 x 2 seminars (POS) for members including on highlighting its importance MASC in POS for community temporarily affected sharing and benefits to the cooperatio communit members (end persons, with at • Consultat community n with y users/beneficiaries) least 30 women ion • Demonstrate the link project members

124

Appendix 5 75

C&P Activity Target Stakeholders Type of Objectives of the C&P Responsi Time Cost


from the project participating per • Shared between improved water NGOs = $1,500 area on the project orientation decision- supply infrastructure and GCWWMIP Project seminar in making good health, women’s

2 (half day) •

Colombo city • empowerment, and $ 500 x 2 50 community environmental conservation POS for members including • Discuss public health and women

2 Project orientation temporarily affected

• hygiene issues only =

seminars for women persons, with at Present safeguards and $1,000 only, on the least 18 women social frameworks and GCWWMIP Project

• participating. plans, benefits for poor and Total:

2 (half day) At least 50 women

• vulnerable $2,500

community Gather concerns and views members per related to water supply project orientation

• (present level of service)

seminar in Gather initial Colombo city recommendations for project design and

• safeguards

Generate consensus and support for the project

3 public meetings • All affected persons • Informati • Introduce the Project NWSDB Years 1- $ 750 X

with affected (APs): titled and on • Demonstrate the link PMU, 3: 3 03 persons (APs) non-titled APs/their sharing between improved MASC, public meetings

and/or their authorized • Consultat water supply Contractor meetings = $2,250

representatives ion

infrastructure and s, in

in

authorized

good health, cooperatio

affected

representatives on

women’s n with areas

resettlement,

empowerment, and project Consulta entitlement, environmental NGOs tions compensation conservation. Show as per

Issues, special possible livelihood/ need

business

protection measures

opportunities and

for vulnerable (1-2 special protection

hours each) in

measures for

Colombo city

vulnerable

Members of traders • Solicit the views of associations, APs on resettlement

NWSDB

hawkers/vendors and and compensation Consultations with their associations, Mitigate potential PMU, temporarily affected small conflict MASC in persons (APs) shopkeepers,parking • Agree on cooperatio

attendants affected resettlement n with processes and Contractor

s

compensation

•

Inform about grievance redress mechanism and

• contacts

Discuss potential disruptions and assistance available for shifting to nearby

• locations

Mitigate potential resistance to the project

76. Appendix 5



• Gather

• recommendations

Agree on mitigation measures

1 consultation Representatives of • Informati • Introduce the Project, PMU, Year 1 Consultati workshop with tenement gardens on highlighting its importance MASC, in on tenement garden sharing

• and benefits cooperatio workshop

communities (end • Consultat Discuss importance of n with = $750 users and APs) from ion participation in water user project

the project area in groups, maintenance of NGOs and Colombo city (half facilities, opportunities for Contractor day)

• participation in project s

Mitigate potential conflict 5 Public consultation 50 representatives of • Informati • Introduce the Project NWSDB Year 1 $ 500 X workshops (half community (at least on • Inform community PMU, 5/ day) with 30% women and sharing members of the draft MASC, in consultati communities (end vulnerable HHs), • Consultat plans, design, location, cooperatio on users), including academia, students, ion management of water n with workshop school/college NGOs, per supply infrastructure and project s = $2,000 students, teachers, consultation services; envisaged NGOs academicians, workshop benefits of the project community groups, including environmental NGOs on the plans, conservation and public design, location, health benefits, benefits for management, etc. of poor and vulnerable, and water supply costs involved in improved infrastructure,

• service provision

environmental and Solicit views, suggestions social mitigation on draft plans, design,

measures location, management of

8 schools and

• WS

Gather recommendations colleges in Colombo on mitigation measures

City

and other aspects

Workshops to be

followed by debates, • Awareness generation on quizzes and painting project, public health,

competitions for

personal hygiene and

schools and

water conservation

colleges

issues; community

outreach through school/college going children

Participatory Review 20 representatives • Informati • Surface issues and NWSDB Participat $300 X 3 Meetings in (50% women) from on concerns during project PMU, ory meetings Colombo City (half the community and sharing implementation MASC,Co Monitorin X 3 years day) civil society ntractors g = $2700

126

Appendix 5 77



(representatives of • Shared • Discuss and recommend and Meetings CBOs, responsi measures to mitigate / project : residents/traders bility address the problems NGOs Semiann

associations, • Monitor progress of project ually poor/tenement implementation garden communities,

private sector)

TOTAL COST OF CONSULTATION AND PARTICIPATION $19,750 ADB = Asian Development Bank, AP = affected persons, CEA=Central Environmental Authority, CMC=Colombo Municipal Council, C&P = consultation and participation, CBO = community-based organizations, FGD = focus group discussion, GCWWMIP=Greater Colombo Water and Wastewater Management Improvement Program, HH = household, MLD=Ministry of Land Development, MOFP=Ministry of Finance and Planning, MWSD=Ministry of Water Supply and Drainage, NGO = non-governmental organization, NWSDB=National Water Supply and Drainage Board, PMU = Project Management Unit, POS = project orientation seminar, PRDA=Provincial Road Development Authority, PSC = Project Steering Committee, RDA=Road Development Authority, UDA=Urban Development Authority, WS = water supply.

78 Appendix 6

APPENDIX 6: DRAFT LEAFLET FOR PROJECT INFORMATION DISCLOSURE

Background

1. The Colombo Water Supply Service Improvement Project (CWSSIP) is a part of ADB funded Greater Colombo Water and Wastewater Management Improvement Program (GCWWMIP). GCWWMIP comprises four tranches or projects, of which two projects under CWSSIP are for water services improvement. CWSSIP aims at delivering better urban water supply services in an effective and efficient manner by reducing the Non-Revenue Water (NRW) mainly in Colombo City. Project 1 has already been formulated and this leaflet presents information on project 2. CWSSIP will involve physical network rehabilitation, institutional and management capacity enhancement to reduce NRW. GCWWMIP is to be implemented over the period 2013 to 2020.

Project description 2 Under Project 2 in southern areas of Colombo city, the physical works planned are: (i) improved water supply system through laying of 282 km of pipes for rehabilitation and replacement of distribution system in the project 2 areas; (ii) replacement and transfer of 44,500 service connections with polyethylene pipes; (iii) replacement of 14,800 defective water meters. Installation of DMA with electromagnetic and ultrasonic flow meters; (iv) replacement of priority (high water usage) customer meters (15mm to 100mm) with Automatic Meter Reading (AMR) meters; (v) installation of new electromagnetic flow meters, valves, and special fittings for formation of district metered areas (DMAs); and (vi) construction of NRW training facilities and an area engineer’s office. The proposed project 2 is expected to result in: (i) rehabilitation of distribution network, which will result in substantial reduction in water losses in the project area; (ii) proper accounting for use of water and system losses by installing metered connections.

Resettlement Plan: Policy and Principles 3 A Resettlement Plan (RP) has been prepared for project 2 - NRW reduction in southern Colombo city, based on ADB’s Safeguard Policy Statement 2009, and Government of Sri Lanka’s National Involuntary Resettlement Policy 2001. Involuntary Resettlement impact

4 There is no land acquisition under project 2. Involuntary resettlement impacts are limited to potential temporary disruption to income during linear pipe laying works. Many impacts will be avoided by construction during non-business hours and careful alignment selection. Impacts of distribution network improvement / rehabilitation (282 km) are limited to (i) temporary disruption of on-street parking and business activities (display of wares on ROW), and (ii) temporary shifting of 6902 vendors and hawkers during construction, for a period of less than 7 days each. Full closure of roads in commercial areas is not anticipated. Government land has been identified for two proposed buildings, one belonging to NWSDB and another to Colombo Municipal Council (CMC), from which permission is awaited for a proposed land sharing arrangement.). APs will be provided 30. days’ advance notice to ensure none or minimal disruption in livelihood, followed by reminders 7 days in advance and 24 hours in advance of execution of works.

Entitlement

5 The project provides for compensation of all potential losses including potential income losses for vendors at replacement value. Hawkers and vendors having temporary loss of income

128

Appendix 6 79

during the construction period will be compensated for income loss prior to displacement. Compensation for income loss of hawkers and vendors will be as per Government of Sri Lanka’s prescribed minimum wage rate for Colombo for the applicable worker category. Vulnerable APs (BPL/IP/female-headed/disabled/elderly) shall be provided additional compensation of 25%. The date of the census survey will serve as the cut-off date for identification of entitled persons. A budgetary provision of USD 52,990 for RP implementation is made, including provisional sums of USD 37,090 for compensation of lost income and USD 2700 for additional assistance to vulnerable APs.

Institutional Arrangement

6 For proposed water supply improvements in southern Colombo under Project 2, the Ministry of Water Supply and Drainage (MWSD) will be the executing agency and the National Water Supply and Drainage Board (NWSDB) will be the implementing agency. NWSDB has established a Project Management Unit (PMU) which will have a Social Development and Safeguards Officer with responsibility for safeguards functions. A Management Advisory and Supervision Consultant (MASC) will be engaged to work closely with the NWSDB PMU. MASC will have a Resettlement Specialist (RS) and an Environmental Management Specialist. The Contractor for project 2 will have a Social Safeguards Supervisor to coordinate with MASC to ensure implementation of RP during civil works. The project NGO will assist APs/vulnerable groups in tenement gardens to put forth grievances and access information on opportunities for employment in project related activities, rights and entitlements and the grievance redress process, and make informed choices.

Grievance Redress Mechanism (GRM)

7 To resolve all project related grievances and complaints a common social and environmental grievance redress mechanism will be in place. Common and simple grievances will be sorted out at project site level by the Contractor’s Resettlement Supervisor, supervision staff of PMU and project NGO within 7 days. More serious complaints will be sent to the SDSO, PMU to be resolved in 15 days. Any unresolved grievances will be forwarded to the Grievance Redress Committee GRC. Complaints and grievances which are not addressed by Grievance Redress committee (GRC) within 30 days will be sent to the Program Steering Committee (SC) to be resolved within 7 days. Despite the project GRM, an aggrieved person shall have access to the country's legal system at any stage.

Contact detail for inquiry:

Name : Name Designation : Designation Project Implementation Unit Regional Project Management Unit Telephone No: Telephone No: E-mail: E-mail: Address: Address:

80 Appendix 7

APPENDIX 7: SAMPLE GRIEVANCE REDRESS FORM

(To be made available in Sinhala, Tamil and English)

The _____________________________________Project welcomes complaints, suggestions, queries and comments regarding project implementation. We encourage persons with grievance to provide their name and contact information to enable us to get in touch with you for clarification and feedback.Should you choose to include your personal details but want that information to remain confidential, please inform us by writing/typing *(CONFIDENTIAL)* above your name. Thank you.

Date Place of registration

Contact Information/Personal Details

Name Gender * Male Age * Female

Home Address

Place

Phone no.

E-mail Complaint/Suggestion/Comment/Question Please provide the details (who, what, where and how) of your grievance below:

If included as attachment/note/letter, please tick here: How do you want us to reach you for feedback or update on your comment/grievance?

FOR OFFICIAL USE ONLY Registered by: (Name of Official registering grievance)

Mode of communication: Note/Letter E-mail Verbal/Telephonic

Reviewed by: (Names/Positions of Official(s) reviewing grievance)

Action Taken:

Whether Action Taken Disclosed: Yes No

Means of Disclosure:

130

Appendix 8 81

APPENDIX 8: SAMPLE MONITORING TEMPLATE

1. A semi-annual monitoring report shall be prepared on Resettlement Plan implementation and submitted to ADB by the PMU. It will include: (1) the list of APs, with compensation, if any due to each and details of compensation paid with signed receipts annexed to the report, socio-economic status and satisfaction levels of APs with the RP implementation process, compensation and mitigation measures; (2) the list of vulnerable APs and additional compensation / special protection measures planned/implemented for them; socio-economic status and satisfaction levels of vulnerable APs with the RP implementation process, compensation and mitigation measures; (3) list of affected common facilities affected, plan to restore access and/or actions taken to restore access to the same or facilities of equal quality elsewhere; (4) list of roads for closure and actions planned / taken to minimise disturbance; (5) details of consultations held with APs (with number of participants by gender, issues raised, conclusion / agreement reached, actions required/taken; (6) details of grievances registered, redressed, outstanding complaints, minutes of GRM meetings held; (7) details of information disclosure and awareness generation activities, levels of awareness among target population and behaviour change, if any; and (8) any other relevant information showing RP implementation progress. The following checklist may be used for overall monitoring of RP implementation.

S. Resettlement Plan Activities

Completed Remarks

N.

Y/N

A. Pre Construction Activities and Resettlement Plan Activities

1 Approval of final Resettlement Plan by ADB prior to contract award

2 Disclosure of final Resettlement Plan on ADB and EA websites

3 Circulation of summary RP in the three local languages to all stakeholders

I. Resettlement Plan Implementation

1 Grievance Redress Committee and telephone hotlines established

2 Entitlements and grievance redress procedure disclosed

3 Finalisation of list of APs, vulnerable APs and compensation/assistance/allowances due

4 Finalisation of list of affected common facilities and roads for closure; mitigation measures proposed

5 Affected persons received entitlements as per amounts and program specified in RP

6 Payment of compensation, allowances and assistance (No. of APs)

7 Additional assistance for vulnerable households given (No. of vulnerable APs)

8 Livelihood arrangements provided to vulnerable APs

9 Reinstallation of affected common facilities

10 Grievances No. of grievances registered No. of grievances redressed Outstanding complaints Disclosure of grievance redress statistics

11 Consultation, participation and disclosure as per Plan

C. Monitoring

1 Survey on socio-economic status of APs (including vulnerable APs) completed and compared with baseline survey results

2 Survey on satisfaction levels of APs with RP implementation completed

D. Labour

1 Implementation of all statutory provisions on labor like health, safety, welfare, sanitation, and working conditions by Contractors

2 Equal pay for equal work for men and women NOTE: Where applicable, the information provided in the table should be supported by detailed explanatory report, receipts and other details.

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