PROJECT PREPARATORY TECHNICAL ASSISTANCE
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1 Appendix 4 11 A. Justification PROJECT PREPARATORY TECHNICAL ASSISTANCE 1. The government has identified the priority areas to be covered under the ensuing loan project and prepared outline technical studies for the proposed project components. A project preparatory technical assistance (PPTA) is required to review these studies and develop a project suitable for ADB funding in terms of technical, financial, economic, institutional, sector policy, legal, and safeguard contexts, in conjunction with the country partnership strategy (CPS), operational experience, and lessons from evaluations of previous projects. The PPTA will follow the Government of Viet Nam s Decision 48/008/QD-ttg on Common General Guidelines on Feasibility Study Preparation for Official Development Assistance (ODA) Projects Funded by the Five Banks issued on 4 March During reconnaissance, the three project cities submitted proposal amounts beyond the available funds allocated for the proposed project. The mission requested the project cities to prioritize project components and subcomponents according to the development challenges and opportunities facing each city. Discussions between the mission and project cities, including their proposals are outlined below.. Buon Ma Thuot. The proposal for Buon Ma Thuot includes the following outputs: (i) urban road improvement and network extensions of seven sections with total length of about 4.5 km; (ii) sanitary landfill, including materials recovery facility (for garbage segregation, recycling) and special treatment for hospital waste; and (iii) capacity building and community awareness. It is proposed that ADB finance $55.68 million of the estimated total project cost of $69.6 million. The mission commented that these proposed investments would be suitable for ADB financing. Output 1 seems suitable for ordinary capital resources (OCR) financing. 4. Ha Tinh. The proposal submitted by Ha Tinh includes the following outputs: (i) urban road improvements of four sections with total length of about 11.5 km; (ii) flood protection and drainage including improvement of five main drains of about 8.5 km and two regulating basins of about 5 ha; and (iii) capacity building and community awareness. It is proposed that ADB finance $50.5 million of the estimated project cost of $56 million. All three outputs are eligible for ADB financing. However, it is suggested not to include land acquisition and compensation costs, including small subcomponents like tree planting along new roads, as these could be accommodated under local budgets. Output 1 seems suitable for OCR financing. 5. Tam Ky. The proposal for Tam Ky consisted of the following outputs: (i) 9.17 km urban road with drainage to develop the new eastern part of the city; (ii) 5.9 km of flood protection dyke and river regulation works; (iii) 1. km of diversion channels and tide doors for flood protection; (iv) km road at the west of the North South railway trans-section; and (v) capacity building and community awareness. It is proposed that ADB finance $50 million of the estimated project cost of $56. million. All four outputs would be eligible for ADB financing. Output 1 seems suitable for OCR financing. B. Major Outputs and Activities 6. The PPTA will (i) review and update long and medium term urban development plans for Buon Ma Thuot, Ha Tinh, and Tam Ky; (ii) help prioritize project components; (iii) determine the feasibility of the proposed investments for infrastructure construction and improvement covering
2 1 Appendix 4 (a) preliminary engineering designs, (b) cost estimates and financing plan, (c) financial and economic viability and sustainability, (d) environmental and social soundness (including documentation and consultation of ethnic minorities), and (e) detailed implementation arrangements; and (iv) prepare an institutional capacity building program. The PPTA will also prepare the project administration manual (PAM) that includes all the information and schedules describing project implementation. The urban planning review will take into account existing regional development plans, particularly in the case of Ha Tinh. It will also consider climate change adaptation requirements in the case of Ha Tinh and Tam Ky. The major outputs and activities of the PPTA are summarized in Table A4.1. TA Resources will be allocated to help the executing agencies and implementing agencies engage project management consultants, review the feasibility studies, and prepare for the detailed designs to ensure the smooth project start-up. Major Activities 1. Preparatory activities 1.1 Conduct stakeholder consultations 1. Establish TA methodology 1. Develop work program Table A4.1: Summary of Major Outputs and Activities Expected Completion Major Date Outputs January Inception report. Sector analysis.1 Review the Government's urban development plans (city development strategies) and prepare recommendations for improvements. Conduct socioeconomic surveys and prepare baseline data. Conduct SWOT analysis.4 Refine project rationale.5 Prioritize project components. Feasibility assessment: Project Detailed Outline (PDO).1 Prepare preliminary engineering designs. Prepare cost estimates and financing plan. Assess economic and financial viability and sustainability.4 Prepare environmental assessment and necessary RPs for each urban area.5 Develop detailed implementation arrangements 4. Institutional capacity building 4.1 Identify key stakeholders 4. Assess institutional capacity constraints 4. Develop institutional capacity building plan 4.4 Prepare RRP and PAM 4.5 Procurement plans and tender materials 4.6 TOR for PDA work under the PDF 5. Bridging assistance 5.1 Terms of References for implementation consultants 5. Bidding materials 5. Assistance in selection of implementation consultants February April June September Interim report I Interim Report II Final report Draft final report Final report Terms of References; Bidding materials Expected Completion Date January March May August July August December PAM = project administration manual, PDA = project design advance, PDF = project design facility, PDO = project detailed outline, RP = resettlement plan, RRP = Request and Recommendation of the President, SWOT = strengths, weaknesses, opportunities, and threats, TA = technical assistance, TOR = Terms of Reference. Source: Asian Development Bank.
3 Appendix 4 1 C. Cost Estimate and Proposed Financing Arrangement 7. The PPTA is estimated to cost $1.5 million equivalent, of which $1 million equivalent will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-IV). The government will finance the remaining $50,000 equivalent. The government was advised that approval of the PPTA does not commit ADB to finance any ensuing project. The detailed cost estimate is presented in Table A4.. Table A4.: Cost Estimates and Financing Plan ($'000) Item Total Cost A. ADB Financing a 1. Consultants a. Remuneration and per diem i. International consultants ( person-months) ii. National consultants (40 person-months) 10.0 b. International and local travel 60.0 c. Reports and communications 0.0. Equipment (computer, printer, etc.) b 0.0. Workshops, training, seminars, and conferences c a. Facilitators 10.0 b. Training program Surveys Miscellaneous administration and support costs d Representative for contract negotiations e Contingencies Subtotal (A) 1,000.0 B. Government Financing 1. Office accommodation and transport Remuneration and per diem of counterpart staff Contingencies 5.0 Subtotal (B) 50.0 Total 1,50.0 Financed by the Asian Development Bank's Technical Assistance Special Fund (TASF-IV). a b Equipment Type Desktop and laptop computers with software, 1 laser color printer, 1 photocopying machine, and office furniture for lead coordinator city. Desktop and laptop computers with software for other project cities. c d Workshops, training, seminars, and conferences Purpose Inception, interim, and draft final workshop Miscellaneous administration and support costs Include $1,000 to lease vehicles Consultants use for fieldwork and liaison purpose Venue Lead Coordinator City Expected length of use 7 months e In accordance with the Project Administration Instructions on recruiting consulting firms for TA assignments, the user division, in consultation with COSO, will decide on the mode of negotiation. Negotiations are usually by correspondence when the assignment budgets are $600,000 or less. ADB Recruiting Consulting Firms. Project Administration Instructions. PAI.04I. Manila. Source: Asian Development Bank.
4 14 Appendix 4 D. Consulting Services 8. All consultants will be engaged through firm(s). The PPTA will require 8 positions and person-months (pm) of international consulting services and 1 positions and 40 pm of national consulting services. ADB will select and engage consultants according to ADB s Guidelines on Use of Consultants (April 010, as amended from time to time) and other arrangements satisfactory to ADB for the selection and engagement of domestic consultants. The quality and cost-based selection method, using the quality cost ratio of 90:10 and full technical proposal procedures, will be followed. Table A4.: Summary of Consulting Services Requirement International Name of Positions Personmonths National Name of Positions Urban development specialist/ Team 6 Civil engineer/ Deputy team leader leader Urban development specialist Municipal engineer/ Civil engineer 4 Road engineer Solid waste management specialist Flood protection engineer Economist/ Municipal finance specialist.5 Solid waste management specialist Institutional development specialist Finance specialist Social development Resettlement Institutional development/ Capacity specialist building specialist Environment specialist Economist Gender specialist 1.5 Social development/ Community development specialist Gender specialist Resettlement specialist Environment specialist Procurement specialist Source: Asian Development Bank. Personmonths The outline terms of reference for the PPTA consultants are described in paras The team leader will (i) assist in the overall organization of the PPTA; (ii) guide, supervise, and coordinate the work of all team members; and (iii) take overall responsibility for preparing reports and consolidating reports prepared by all team members. The deputy team leader will assist the team leader to accomplish tasks. 11. The international and national urban development specialists will (i) review existing urban development policies, plans, reports, standards, and studies; (ii) assess future development needs; and (iii) prepare recommendations for improvements. 1. The international and national urban development specialists, international municipal engineer/ civil engineer, international and national solid waste management specialists, national civil engineer, national road engineer, and national flood protection engineer will (i) consult key stakeholders to identify major issues and bottlenecks to urban service delivery; (ii) confirm the priority areas and finalize the infrastructure investment subprojects; (iii) collect and analyze information on urban infrastructure and civil works; (iv) prepare preliminary engineering design and cost estimates; and (v) prepare an operation and maintenance plan. The flood protection engineer will assess design options taking into account climate change considerations, particularly in Ha Tinh and Tam Ky, where flood protection civil works (such as construction of dyke, regulating basins, diversion channels and tide doors, and drainage improvement) are planned.
5 Appendix The international economist/municipal finance specialist and national finance specialist will (i) conduct financial management assessment and recommend measures to strengthen financial management capacities; (ii) prepare a project financing plan, and design the funds flow and disbursement mechanism; (iii) propose auditor arrangements; and (iv) prepare a financial analysis for each subproject. 14. The international economist/municipal finance specialist and national economist will (i) conduct socioeconomic surveys and prepare baseline data; (ii) conduct a strength, weakness, opportunities and threats (SWOT) analysis; (iii) refine the project rationale, and (iv) prepare economic analyses for individual project components and the project as a whole following ADB's guidelines. 15. The national procurement specialist will (i) conduct the procurement capacity assessment; (ii) prepare a procurement plan; and (iii) identify specific advance actions with funding sources, time frame, and responsibilities. 16. The international and national environment specialists will (i) accomplish ADB s rapid environmental assessment (REA) checklist/s to support the Project s over-all environmental categorization to be approved by ADB s Chief Compliance Officer; (ii) based on the approved categorization, prepare the required environmental assessment report for each urban area identifying direct, indirect, cumulative and induced impacts of the project; (iii) ensure that the environmental assessment reports conform to ADB s Safeguard Policy Statement 009 particularly to the environmental assessment requirements specified in Safeguards Requirement 1: Environment (Appendix 1) and the Outline of an EIA Report (Appendix 1); and (iv) provided an assessment of the safeguard capacity of the implementing agencies, and recommend capacity building measures. Given the nature of the project components, the conduct of environmental assessment for Ha Tinh and Tam Ky cities will include the following (i) assessment of downstream environmental impacts and effects on people s livelihood of the flood protection works and recommendations for avoidance or mitigation measures; and (ii) assessment of potential occupational and community health and safety impacts, and recommendations for prevention and/or mitigation measures including emergency preparedness and response plans, as may be required. 17. The international social development/resettlement specialist and national resettlement specialist will (i) define and identify the people and communities to be affected; (ii) describe the likely impacts of land and asset acquisition on the people and the communities; (iii) assess the extent and degree of involuntary resettlement impacts of the project components on ethnic groups, men and women, and other vulnerable groups; (iv) determine and propose for a culturally-appropriate meaningful consultation process, including identification of stakeholders that need to be consulted; (v) describe and recommend options for mitigation of IR impacts, including livelihood assistance and benefits; and (vi) recommend for a culturally and gender sensitive grievance redress mechanism, and others, as appropriate. 18. The international gender specialist and national gender specialist will prepare gender action plans that will formulated through a participatory process. The gender action plans will address (i) women s role in community decision making; and (ii) access to employment generated from construction/ rehabilitation of local infrastructure, capacity development to manage and maintain facilities and in any local level activities to generate awareness on environmental protection
6 16 Appendix The international institutional development specialist and national institutional development/ capacity building specialist will (i) identify policy, institutional, and human resource bottlenecks for urban management; (ii) assess the managerial, technical, and administrative capacities; (iii) review existing training programs; (iv) prepare an institutional analysis, and (v) develop capacity development programs. 0. The international social development/gender specialist and national social/community development specialist will (i) help conduct socioeconomic surveys; (ii) review the Government policies and strategies for poverty reduction and gender development; (iii) conduct a public perception survey to identify public problems and development priorities; (iv) conduct a poverty and social analysis; (v) prepare a poverty and social strategy; (vi) prepare a gender action plan; and (vii) prepare a participatory strategy. E. Implementation Arrangements 1. The Provincial People's Committees (PPCs) of Dak Lak, Ha Tinh, and Quang Nam will be the executing agencies, or line agencies as known in Vietnamese, while City People's Committees (CPCs) of Buon Ma Thuot, Ha Tinh, and Tam Ky will be the implementing agencies, or project owners as known in Vietnamese. A lead coordinator will be identified among three project cities to liaise with the project cities and the concerned central government agencies. The PPTA consultants will be based in the lead coordinator city, which will provide an office accommodation. When the consultants work in the other two cities, the relevant implementing agencies (or project owners) will provide office space for them to work together with their project city counterparts. The PMUs will be established under the respective implementing agencies (or project owners). The government will also provide qualified counterpart staff, office administrative support services and logistics, and necessary data and reports. The executing agencies and ADB will be responsible for supervision of the quality of the PPTA work.. Disbursements under the PPTA will be done in accordance with the ADB's Technical Assistance Disbursement Handbook (May 010, as amended from time to time). The consultants may procure equipment through shopping according to ADB s Procurement Guidelines (April 010, as amended from time to time). The equipment procured will be transferred to the implementing agencies (or project owners) upon completion of the PPTA.. The proposed PPTA processing and implementation schedule is listed in Table A4.4. Table A4.4: Proposed Technical Assistance Processing and Implementation Schedule Major Milestones TA commencement Inception report Interim report I Interim Report II Draft final report Final report Financial closure Expected Completion Date January January March May July August June 01
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