Grant Implementation Manual

Project Number: 45127-001 July 2012

Grant Assistance Republic of the Philippines: Enhancing Access to Quality Early Childhood Education Services for Children in Poor Communities (Financed by the Japan Fund for Poverty Reduction)

JFPR GRANT IMPLEMENTATION MANUAL (GIM)

TABLE OF CONTENTS Page LIST OF ADDRESSES AND PERSONNEL CONCERNED i CURRENCY EQUIVALENTS iii ABBREVIATIONS iii GRANT PROCESSING HISTORY iv

I. GRANT DESCRIPTION 1 A. Grant Area and Location 1 B. Grant Objectives 2 C. Grant Components 2

II. COST ESTIMATES, FINANCING PLAN & ALLOCATION OF LOAN 3 PROCEEDS

A. Cost Estimates 3 B. Financing Plan 3 C. Allocation of Grant Proceeds 3

III. IMPLEMENTATION ARRANGEMENTS 4 A. The Executing Agency and Implementing Agency(ies) 4 B. Grant Organization and Management 4

C. Japanese Visibility and Coordination with Embassy of Japan 5 and JICA

IV. IMPLEMENTATION SCHEDULE 6 V. PROCUREMENT 6

A. Goods and Works 6 B. Consulting Services 6

VI DISBURSEMENT PROCEDURES 7 A. Imprest Fund Procedure 7 B. Direct Payment Procedure 8

C. Statement of Expenditures Procedures 8

VII. REPORTING REQUIREMENTS 8 A. Grant Status Report for OCO 8 B. Progress reports: quarterly, six-monthly, annual 8

C. Audited Grant Accounts 9 D. Benefit Monitoring Evaluation Report 9 E. Implementation Completion Memorandum (ICM) 10

VIII. GRANT MONITORING AND EVALUATION 10 A Contract Awards/Commitments and Disbursement Projections 10

B. Grant Reviews 10 C. Mid-term Review 10

D. Project Completion 11 IX. MAJOR COVENANTS 11 APPENDIXES 1. Design and Monitoring Framework 2. Detailed Cost Estimates* 3. Organization chart 4. Implementation Schedule 5. Guidance Note on Visibility of Japan 6. Guidance Note on Coordination with the Embassy of Japan 7. Procurement Plan 8. Procurement Methods 9. Details of Consulting Services Required and

Outline Terms of Reference 10. Selection Methods for Consulting Services 11. Fund Flow Arrangement 12. Disbursement Procedures 13. Guidelines for Calculating Project Progress and

Computation of Percentage of Grant Implementation Progress 14. Grant Status Report for OCO 15. Suggested Format for other progress reports

(quarterly, six-monthly, annually) 16. Planning and Reporting Templates 17. ADB’s Auditing Requirements 18. Implementation Completion Memorandum (ICM) 19. List of Publications relevant to Project Administration 20. Letter of Agreement 21. Grant Covenants

* At the request of the Project Steering Committee, t are omitted in the published version of the GIM.

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LIST OF ADDRESSES AND PERSONNEL CONCERNED

A. Asian Development Bank Southeast Asia Department

Human and Social Development Division 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines

Telephone: (632) 636 2228 Facsimile: (632) 632 6904

Division Director: Ms. Leah Gutierrez lcgutierrez@adb.org Project Implementation Specialist: Ms Emiko Masaki

emasaki@adb.org Project Analyst: Ms. Ruchel Marie Grace R. Roque-Villaroman

rmgroque@adb.org Financial Control Specialist: Mr. Yasumitsu Hirao

Tel. (632) 636 2444 Fax: (632) 632 6790 yhirao@adb.org

B. ADB Philippine Country Office

Mr. Neeraj Jain Country Director, PhCO Fax: (632) njain@adb.org

C. Executing Agency

Ms. Elena R. Ruiz Assistant Secretary, Programs and Projects Department of Education Fax:

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D. Implementing Agency Aklat, Gabay, Aruga Tungo sa Pag-angat at Pag-asa (AGAPP) Foundation Unit 300, 3F Regalia Tower A Quezon City, Metro Manila, Philippines agapp.aug1@gmail.com Tel. 352-6478 Fax. 426-7271

Project Directors: Pier-Angela P. Caguioa Felicisima A. Bautista Marivic Q. Aro

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CURRENCY EQUIVALENTS (as of 31 January 2012)

Currency Unit – peso (P)

P1.00 = $0.023250 $1.00 = P43.01

ABBREVIATIONS

ADB – Asian Development Bank BEIS – basic education information system CCT – conditional cash transfer DOH – Department of Health ECCD – early childhood care and development ECERS – early childhood environment rating scale DepEd – Department of Education DSWD – Department of Social Welfare and Development GVS – Global Voluntary Service JFPR – Japan Fund for Poverty Reduction JICA – Japan International Cooperation Agency K to 12 – Kindergarten to Grade 12 LGU – local government unit M&E – monitoring and evaluation MDG – Millennium Development Goal NGO – nongovernment organization PCLC – parents for child literacy committee PIU – project implementation unit PSC – project steering committee UNICEF – United Nations Children's Fund

GLOSARRY

AGAPP – Aklat, Gabay, Aruga Tungo sa Pag-angat at Pag-asa (Books and Classrooms, Guidance and Care Towards Upliftment and Hope for the Poorest Filipino Children)

barangay – the smallest administrative division in the Philippines and is the native Filipino term for a village, district or ward

Pantawid Pamilya

– Pantawid Pamilyang Pilipino Program (Building Bridges for the Filipino Family Program)

Silid Pangarap – school-library facilities that will also serve as preschool classrooms for schools in depressed and disadvantaged communities

NOTES

(i) The fiscal year of the Government of the Philippines ends on 31 December. (ii) In this report, “$” refers to US dollars.

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GRANT PROCESSING HISTORY Grant Fact Finding Mission – 24 June – 5 July 2011 Staff Review Committee Meeting – 22 July 2011 Submission of Grant Proposal – 19 August 2011 Government of Japan Approval – 13 January 2012 ADB President Approval – 20 February 2012 JFPR Letter of Agreement Signing – 23 March 2012 Grant Effectiveness – 23 March 2012 Grant Closing Date – 22 March 2015

22 March 2015 is the closing date for withdrawals from the grant account. Goods must have been delivered and services rendered on or before this date to be eligible for payment by the ADB. No payments from the grant can be made after the grant closing date. The grant account may still be kept open up to three months beyond the closing date in order allow the executing agency time to collect and submit documentation and invoices pertaining to expenditure incurred before the closing date.

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I. GRANT DESCRIPTION

A. Grant Area and Location

1. The project will support the construction of preschool buildings located at Region V, VI and VII.1

B. Grant Objectives 1. The grant project’s development objective is to improve access to quality early childhood education services, to create a stronger foundation for schooling and learning, especially among children in poor communities in the Philippines. The project supports a sustainable multistakeholder partnership to implement the Government of the Philippines’ program to universalize preschool for 5-year-old children to prepare them better for primary education, thereby reducing the dropout rate and improve their learning outcomes. 2. The development objective will be achieved by: (i) constructing 60 preschool buildings that are safe, child-friendly, and accessible to children with disability; (ii) training preschool teachers and primary school heads in delivery and management of universal preschool education; (iii) building sustainable partnerships with communities and civil society in the areas of school health and nutrition, livelihood programs, and parent education; and (iv) establishing a monitoring and evaluation (M&E) system and impact studies for evidence-based policy recommendations for preschool and early primary education. C. Grant Components Component A. Safe and child-friendly learning environments

3. By 2014, 60 safe and child-friendly preschool buildings, accessible to children with disability, will be completed; each sized, furnished, and equipped to serve at least 100 preschool students for each school in targeted poor and underserved communities. An advocacy campaign will raise parents’ awareness on the importance of preschool attendance as a foundation for literacy and learning. The project sites will be selected using targeting and selection criteria comprising: (i) priority divisions of Department of Education (DepEd), with high proportion of schools with classroom shortage and low performance (i.e., low participation and completion rates, high dropout rates, and low national achievement test scores); (ii) poor communities targeted for the Pantawid Pamilya (Building Bridges for the Filipino Family Program) of the Department of Social Welfare and Development (DSWD); (iii) prevalence of high malnutrition among elementary school children; and (iv) evidence of local community support and effective school leadership. Component B: Teaching and school leadership capacity building 4. The project will support the implementation of the government program on universal kindergarten education. In schools, the project will train the teachers, school heads, and division supervisors (preschool coordinators) on: (i) the revised DepEd kindergarten curriculum; (ii) developmentally suitable practices in early childhood education; (iii) assessment of child development and the quality of learning environments; (iv) supportive transition programs and

1 Region V: Camarines Sur, Catanduanes, Masbate, Sorsogon; Region VI: Cadiz City, Kabankalan City, Negros Occidental; Sagay City; Region VII: Bais City, Negros Oriental

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the early literacy support and enrichment program for grades 1–3 students. The project will also train school heads and principals, district supervisors, and civil society partners on: (i) school leadership to enhance parent involvement and participation in children’s education, (ii) facilitating parenting support and education programs in schools, (iii) building community partnerships for improving child development and learning outcomes, (iv) implementing school health and nutrition programs, and (v) planning livelihood support programs for parents. Component C. Sustainable partnerships with communities and civil society 5. The project will support partnership building and capacity development for organizing family literacy and parent education workshops, and organizing activities for livelihood and community development, thereby strengthening home–school–community partnerships. Partnerships with other civil society groups (i.e., local volunteer groups and corporate social responsibility efforts) and nongovernment organizations (NGOs) shall be formed and mobilized to fund and implement nutrition programs for preschool students and workshops for parents on livelihood programs. Mobilizing school heads, teachers, and NGOs will involve the following key activities (i) organizing parent education activities; (ii) storytelling and early literacy workshops and family development sessions within Pantawid Pamilya; (iii) implementing school-based feeding and nutrition programs for children, including growth monitoring, deworming, micronutrient supplementation, and supplemental feeding; and (iv) planning and implementing livelihood and income-generating activities to sustain school nutrition and feeding programs, and other community partnership activities. This component also discusses gender issues and promotes gender equity by (i) raising awareness of partners to help them understand and commit to the importance of early childhood education for children and the need to support both boys and girls in completing schooling, (ii) increasing awareness of mothers on early childhood care and development (ECCD) and caring for and rearing young children, (iii) training teachers and education staff at elementary schools on key gender issues and on the need to encourage boys in particular to complete schooling. Component D. Project management, monitoring, and impact evaluation 6. The project will establish a project implementation unit (PIU) to lead overall implementation and monitoring of the project activities. Key activities and tasks under project management are to (i) establish project management systems for stronger governance, accountability, and transparency in project implementation; (ii) prepare a grant implementation manual; (iii) periodically monitor project implementation; (iv) prepare periodic narrative reports and photo documentation of project activities; and (v) conduct annual audits of project accounts. Key monitoring activities are to (i) develop and implement performance monitoring systems; (ii) design, select, or adapt assessment tools for child development and learning outcomes, and for the quality of early-childhood learning environments; (iii) establish a project database with detailed school profiles and updated summaries of the assessments; (iv) conduct site visit to schools to monitor project activities for consultation and supervision purposes; (v) provide close monitoring and implementation support to ensure smooth project implementation, knowledge transfer, and execution of the project’s exit strategy. 7. The project will conduct an evaluation study to assess the impact of the pilot models on learning outcomes among children in poor communities. The project will formulate policy recommendations to DepEd on upscaling the project’s partnership-building model and innovating early-childhood education delivery in support of the national goal of universal preschool education. Key activities are to: (i) design and implement a baseline survey, (ii)

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prepare midterm and completion reports, (iii) conduct a project impact evaluation study,2

(iv) formulate policy recommendations on upscaling the models piloted by the project, and (v) prepare and publish knowledge products.

II. COST ESTIMATES, FINANCING PLAN & ALLOCATION OF GRANT PROCEEDS A. Cost Estimates 8. The estimated cost is $3.54 million, of which $1.5 million (or 42% of the total project cost) is requested to be financed by Japan Fund for Poverty Reduction (JFPR) grant, while the rest of the project cost (i.e., $2.04 million) will be cofinanced through the government, private sector, and community contributions. DepEd provides $1.63 million equivalent in land and for teachers’ salaries (permanent and contractual) for 60 proposed project sites over 36 months. The private partners provide $0.38 million to cover the costs of school construction and supplies for 15 sites. Volunteers from the targeted communities will also be engaged to support the project activities under component C. The detailed cost estimates are shown in Appendix 2.

A. Financing Plan

Table 1. Financing Plan Funding Source Amount ($) JFPR 1,500,000 Government (in-kind) 1,627,814 Private sector contribution 383,716 Community contribution (in-kind) 31,140

Total 3,542,670 C. Allocation of Grant Proceeds Table 2. Allocation of grant proceeds by expenditure category

Category Amount of Grant Allocated in $

Percentage of Expenditures

1. Civil Works 889,542 59.3 2. Equipment and Supplies 74,417 5.0 3. Training, Workshops, Seminars 37,087 2.5 4. Consulting Services 116,558 7.8 5. Project Management, Monitoring and Evaluation 57,558 3.8 6. Other Inputs 251,290 16.7 7. Contingencies 73,548 4.9 TOTAL 1,500,000 100.0

2 Subject to detailed design of the evaluation strategy after site identification, it is envisaged that the study will employ

a difference-in-difference approach that measures changes in the key indicators (such as basic cognitive, psychosocial measures, or measures of parental attitudes toward continued schooling) from the pre-intervention to the post-intervention period for children in target communities, compared with changes over the same period for children in nonparticipating communities.

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III. IMPLEMENTATION ARRANGEMENTS A. Executing Agency and Implementing Agency. 9. DepEd is the executing agency and the Aklat, Gabay, Aruga Tungo sa Pag-angat at Pag-asa (AGAPP) Foundation is the implementing agency. The AGAPP Foundation is designated by DepEd to assist the expansion of universal preschool and has demonstrated capacity in areas such as construction of high-quality preschool facilities, providing library resources, teacher training, and mobilizing resources through partnerships with other NGOs and the private sector. The implementation arrangement of the project will be built on the existing collaboration mechanism of DepEd and the AGAPP Foundation, where there is a memorandum of understanding to support the expansion of preschool classrooms and libraries in the country. B. Grant Organization and Management 10. A diagram of the project’s organization and management structure is shown in Appendix 3. 11. Project Steering Committee. A project steering committee (PSC) will be established to provide supervision, coordination, and management for project implementation. The PSC consists of representatives from DepEd, the Department of Health, the Department of Social Welfare and Development, the Early Childhood Care and Development Council, and the AGAAP Foundation. The PSC, chaired by DepEd, will meet quarterly to review project progress, provide policy guidance, and facilitate interagency coordination and exchange of lessons learned. PSC meetings may include representatives of other government agencies, local government units (LGUs), private sector associations, NGOs, and development partners as appropriate. AGAPP will function as the secretariat. 12. Project Implementation Unit. The PIU will be established within the AGAPP Foundation. Its main functions will be to ensure timely and effective project planning, management, coordination, procurement, financial controls, monitoring, and reporting to DepEd and the Asian Development Bank (ADB). The PIU comprises a full-time project director, a project implementation specialist, a financial management specialist, and a part-time engineer or procurement specialist. The PIU will prepare a grant implementation manual, including preparation of NGO subcontract agreements, and disbursement methods for the subcontracted activities.

13. Project implementation will also involve three local NGOs to conduct community-based feeding programs, and to promote livelihood programs to sustain the nutrition and feeding program. The AGAPP Foundation will directly engage local NGOs, consultants, and PIU staff, in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). Selection of local NGOs will be based on the following criteria: (i) proven experience in successfully implementing community-based social development programs in barangays;3

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(ii) experience in planning, organizing, and implementing feeding, livelihood, or microfinance programs; (iii) proven ability to design and deliver training for communities and parents that is responsive to the needs of the community and families to support continued learning for young children; and (iv) availability for the duration of the project implementation period. The project also involves close dialogue and collaboration with other government agencies and

administrative division in the Philippines and is the native Filipino term for a village, district or ward

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development partners, in particular the Department of Social Welfare and Development, the Department of Health, the Early Childhood Care and Development Council, and the United Nations Children’s Fund (UNICEF). B. Japanese Visibility and Coordination with Embassy of Japan and JICA

Participatory Approach 14. Project preparation involved consultations with government agencies, development partners, NGOs, Japan International Cooperation Agency (JICA), and the Embassy of Japan in the Philippines in June and July 2011. Preschools and feeding programs in Negros Occidental were visited in June 2011 and consultations were made with schoolteachers, volunteers, and parents. At all levels, project stakeholders were invited to provide suggestions on the project design, scope, implementation arrangements, opportunities for partnerships, and lessons learned from similar interventions in the country. Project preparation also included determining opportunities to partner with UNICEF in key focus areas. The views of stakeholders were incorporated into project design and implementation arrangements. 15. During implementation, the project envisages continuous stakeholder participation. It has therefore integrated in its design strong partnerships between schools, private sector, and civil society that by default involve community, parents, and NGOs. Quarterly meetings of the PSC and regular M&E will also involve stakeholder representatives.

Primary Beneficiaries and Other Affected Groups and Relevant Description

Other Key Stakeholders and Brief Description

Approximately 6,000 preschool children from poor and underserved areas across three regions (regions V, VI, and VII) will have access to quality early childhood education programs, including equipped preschool buildings with developmentally suitable learning materials. Teachers, school heads, and preschool supervisors or school coordinators of the school divisions of the target areas will participate in the training program and capacity-building activities.

Teachers, school heads, and school coordinators will strengthen their capacity to deliver quality early childhood education services. Local NGOs, private sector, communities, and volunteers involved in the project will gain experience and strengthen their partnerships in promoting effective and sustainable models for early childhood education.

Parents will participate in parent education activities organized by the school heads and teachers to improve their caregiving practices and support for their children’s education. Grades 1–3 students in the targeted areas will also benefit from the library resources provided and the literacy-enrichment activities.

A Japanese NGO will be engaged as partner of local NGOs in the school-based nutrition and feeding program and livelihood support activities. The project will strengthen coordination and cooperation among key stakeholders in delivery of quality early childhood education services.

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Coordination 16. The project was designed in close consultation with government agencies, development partners (JICA and UNICEF), NGOs, and the Embassy of Japan in the Philippines. Consultation with the government agencies—i.e., ECCD Council, National Economic and Development Authority, DOH, and DSWD—confirmed areas of coordination in support of the various government initiatives to improve health and educational outcomes for poor children. 17. The Global Voluntary Service (GVS), a Japanese NGO supporting various health, nutrition, and livelihood programs in the Philippines since 2003, is proposed to be involved in the school-based nutrition and feeding program and livelihood support under component C. GVS will lead community and parental education for nutrition and livelihood support activities as well as provide capacity building for the local NGOs in program implementation and monitoring. The project has also determined areas of collaboration and coordination with UNICEF, such as (i) teacher training, (ii) expansion of ECCD checklist, (iii) M&E, and (iv) policy advice and advocacy for an inclusive preschool model (including costing, budgeting, and planning). JICA expressed strong interest in coordinating activities in health and education services through its planned support for the government’s Pantawid Pamilya.

Visibility 18. Japan's official development assistance (ODA) logo and the JFPR logo will be used in publications and any other materials produced under the project. All press releases issued by ADB and local news media for the JFPR project activities will acknowledge the financial contribution from the Government of Japan following the Guidance Note on Visibility of Japan. Officials from the Embassy of Japan are invited to attend project events and ceremonies, including turnover of school facilities. Involvement of GVS in community-based activities, including nutrition and feeding programs and support for livelihood program, will further promote the visibility and local awareness of the JFPR program.

IV. IMPLEMENTATION SCHEDULE

19. The project will be implemented over 3 years, from 23 March 2012 to 22 March 2015. The detailed implementation schedule is in Appendix 4.

V. PROCUREMENT

A. Works and Goods 20. All procurement to be financed by the project will be conducted in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time). Civil works will consist of one package with multiple contracts to allow big and small contractors to bid. Procurement of civil works above $100,000 shall follow national competitive bidding procedures. Goods and civil works costing $50,000 or less shall be procured using shopping. Any minor equipment and materials costing less than $10,000 may be procured through direct contracting. Supplies for the health and nutrition program could be procured through procurement from specialized agencies. The project will construct 60 one-story, two-classroom buildings, in which 45 will be financed by the JFPR and 15 by contributions from the private sector. The AGAPP Foundation will follow its own procedure for the procurement of the 15 packages through award of

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packages to local accredited contractors, in which it has established a standard unit cost for one-story, two-classroom buildings.

B. Consulting Services 22. Four individual consultants, one international NGO, three local NGOs, and an external audit firm will be recruited in accordance with ADB’s Guidelines on the Use of Consultants. The project will recruit individual consultants to support project implementation under the PIU. An individual project implementation specialist will be recruited to plan, coordinate, and monitor the project activities and prepare the project progress reports. A financial management specialist will be hired to maintain the project accounts and prepare financial reports. An engineer and procurement specialist with experience in the Government of the Philippines and ADB procurement procedures will be engaged to oversee the civil works and procurement of equipment and supplies. A policy advisor and monitoring and evaluation specialist will be recruited for 2 person-months to lead a project evaluation study and to formulate policy recommendations. The AGAPP Foundation will be responsible for selection of consultants with ADB endorsement. One international NGO, GVS, will be recruited through single-source selection to provide overall support to the community-based activities, while three local NGOs will be recruited through the consultants' qualification selection method to provide livelihood opportunities to sustain the nutrition and feeding program. An external auditor, to audit the project accounts, will be engaged through the least-cost selection method. The details of consulting services required and outline Terms of Reference (TOR) are in Appendix 9.

VI. DISBURSEMENT A. Imprest Fund Procedure 23. The JFPR grant proceeds will be disbursed in accordance with the Loan Disbursement Handbook (2007, as amended from time to time) of ADB and detailed arrangements agreed between the Government of the Philippines and ADB. ADB will channel JFPR funds directly to a JFPR imprest account in US dollars, to be opened by the AGAPP Foundation at a commercial bank acceptable to ADB and delegated to the PIU established within the AGAPP Foundation to facilitate day-to-day project expenditures. The DepEd will be kept informed by the PIU of all transactions and will receive copies of financial statements and annual audit reports. Initial disbursement will be based on the first 6-month activity plan and related budget, and afterwards on the five remaining semiannual work plans and budgets. Private sector contributions will be channeled to a separate account established by the AGAPP Foundation to finance different sets of civil works and equipment and supplies packages. The schematic fund flow for JFPR funds is shown in Appendix 11. 24. ADB will advance up to 6 months estimated expenditure to be financed through the imprest account or 10% of the grant amount, whichever is lower, as agreed between ADB, the Government of the Philippines, and the AGAPP Foundation. ADB will replenish funds to the imprest account based on requests from the PIU in accordance with ADB’s statement of expenditures procedure. The imprest account will be established, managed, replenished, and liquidated in accordance with ADB’s Loan Disbursement Handbook. The statement of expenditures procedure will apply for all payments and transactions under $10,000 to ensure speedy project implementation. Detailed implementation arrangements, such as funds flow, replenishment, and administrative procedures will be detailed in a grant implementation manual and established between ADB and the government through the letter of agreement.

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25. Interest earned on the imprest account may be used for project purposes within the approved total amount of the JFPR project, subject to ADB approval. Any unutilized interest should be returned to the JFPR fund account maintained in ADB upon completion of the project and before closing the JFPR project.

B. Direct Payment Procedure 26. The direct payment procedure is one whereby ADB, at the borrower’s request, pays a designated beneficiary directly. This procedure will be used for the payment of civil works. Required supporting documents include the claim or invoice from the contractor and a summary of work progress certified by the project engineer and approved by the borrower’s authorized representative. C. Statement of Expenditure (SOE) 27. The statement of expenditure (SOE) procedures will be used for reimbursement of eligible expenditures for the JFPR Project and to liquidate advances provided into the imprest account, in accordance with ADB's Loan Disbursement Handbook dated January 2007, as amended from time to time. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed $10,000, and for payment and transactions in excess of $10,000 equivalent, supporting documents should be submitted. 28. Disbursement procedures including instructions on establishment and operation of the imprest account, SOE procedures, preparing withdrawal applications and financial reporting, and sample forms are in Appendix 12.

VII. REPORTING REQUIREMENTS

A. Grant Status Report for Office of Cofinancing Operations (OCO) 29. As part of regular reporting the executing agency will prepare a semi-annual grant status report and submit the report to ADB within one month of the end of each reporting period. The grant status report template is in Appendix 14.

B. Progress reports: quarterly, six-monthly, annual 30. The PIU will consolidate all project activity reports prepared by the consultants and contractors, and prepare gender-disaggregated quarterly and annual reports on project implementation—the form and content of which will be agreed upon with ADB—for endorsement by PSC and timely submission to ADB. Quarterly reports will be due no later than 30 days after the end of each project quarter. Within 6 months from project effectiveness, the PIU will submit a baseline survey report on the project’s target communities. A midterm report will be submitted to ADB 18 months after project inception. The government will provide a project completion report to ADB with the support of the PIU, within 3 months of physical completion of the project. All reports will comprise an assessment of the project outcome and outputs, project performance indicators, as well as suggestions for improving project implementation.

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C. Audited Grant Accounts 31. AGAPP Foundation will maintain separate project accounts financed by the project, by the government, and by the private sector, in accordance with sound accounting principles. All project accounts will be audited annually by an independent external auditor acceptable to ADB, using international accounting and auditing standards. The audit report from the external auditor must be submitted to ADB’s Controller’s Department, with a copy to OCO, no later than 6 months after the end of the fiscal year or project closing date (whichever comes first). The report should include certified copies of the audited accounts and financial statements and the report of the auditors relating to said statements, including the auditors’ opinion on the use of the JFPR funds, and the operation of any imprest account and the application of any statement of expenditures procedure authorized under the JFPR project. D. Benefit Monitoring and Evaluation Report 32. Project performance will be monitored based on the design and monitoring framework. The benefit monitoring and reporting plan is shown in table 3.

Table 3. Benefit Monitoring and Reporting Plan

Key Performance Indicator

Reporting Mechanism

Plan and Timetable for Monitoring and Evaluation

Elementary transition rate among the targeted students improved by at least 10%

DepEd annual statistical reports (elementary transition rate, elementary dropout rate, preschool participation rate) for target schools Periodic project status reports

Baseline assessment survey completed within 6 months Annual data collection by schools in accordance with national protocols for basic education information system (BEIS) Quarterly project progress reports Midterm evaluation Impact evaluation study

Elementary dropout rate reduced among the targeted students by at least 10%

DepEd annual statistical reports (elementary transition rate; elementary dropout rate, preschool participation rate) for target schools Revised Philippine ECCD checklist Periodic project status reports

Baseline assessment survey completed within 6 months Annual data collection by schools in accordance with national protocols for BEIS Quarterly project progress reports Midterm evaluation Impact evaluation study

Age-appropriate child development index scores achieved by at least 90% of targeted children

Revised Philippine ECCD checklist Periodic project status reports

Baseline assessment survey completed within 6 months Annual data collection by schools in accordance with national protocols for BEIS Revised Philippine ECCD checklist administration Quarterly project progress reports Midterm evaluation Impact evaluation study

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Key Performance Indicator

Reporting Mechanism

Plan and Timetable for Monitoring and Evaluation

Proportion of grade 1 enrollees with prior preschool participation increased by 20%

DepEd annual statistical reports (elementary transition rate; elementary dropout rate, preschool participation rate) for target schools Periodic project status reports

Baseline assessment survey completed within 6 months Annual data collection by schools in accordance with national protocols for BEIS Quarterly project progress reports Midterm evaluation Impact evaluation study

More and stronger partnerships developed to support preschool and early primary education as measured by amount of resources mobilized from the private sector, and development partners

Project status reports Partner NGO reports Midterm and project completion report Final evaluation study

Report on institutional partnership framework and business plan by month 24 Quarterly project progress reports Monthly reports by PCLCs Midterm evaluation Impact evaluation study

E. Implementation Completion Memorandum 33. An Implementation Completion Memorandum (ICM) will be prepared by the ADB project officer and executing agency within 6 months of grant closing. Guidelines for preparing an ICM and templates are in Appendix 18.

VIII. GRANT MONITORING AND EVALUATION

A. Contract Awards/Commitments and Disbursement Projections 34. AGAPP Foundation will prepare and submit to ADB annual contract awards and disbursement projections for the entire duration of the project. This requirement is to monitor project implementation and help identify impediments to implementation progress. The projects may be updated at midterm or during a special review mission. B. Grant Reviews 35. ADB and the government will jointly undertake reviews of the project at least twice a year. The reviews will assess progress, specify issues and constraints, and determine necessary remedial action and adjustments. A midterm review will be conducted in the second year of implementation. It will review and assess the progress of project implementation against performance indicators, and recommend changes in the project scope and/or implementation arrangements, if necessary. C. Midterm Review 36. A midterm evaluation performed by the project’s counterpart staff together with ADB will (i) review the project scope, design, and implementation arrangements; (ii) identify changes in scope or implementing arrangements since project appraisal; (iii) assess the project’s progress toward meeting its stated objectives; (iv) identify problems and suggest ways to overcome them

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during the final 18 months of the project; and determine compliance with the JFPR Letter of Agreement.

D. Project Completion 37. The government project completion report (PCR) will be prepared by the project implementation team following the standard ADB format. Following submission of the government PCR and handover of all project assets, an ADB Completion Report and independent impact assessment comparing baseline and end of project conditions will be prepared by an independent individual consultant recruited by ADB.

IX. GRANT COVENANTS

38. DepEd and AGAPP shall carry out the JFPR project with due diligence and efficiency, and shall cause the project to be carried out with concerned stakeholders in accordance with the arrangement described in the Letter of Agreement dated 23 March 2012 shown in Appendix 20. The grant covenants are summarized in Appendix 21.

Appendix 1

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DESIGN AND MONITORING FRAMEWORK Design

Summary Performance Targets and Indicators with

Baselines Data Sources and

Reporting Mechanisms Assumptions and Risks

Impact Improved access to quality early childhood education services for better learning outcomes among children in targeted poor communities

Improved school retention and better learning outcomes for cohort group up to grade 3 measured by: Elementary transition rate improved by at least 10% by 2016 Elementary dropout rate reduced by at least 10% by 2016 Age-appropriate child development index scores achieved by at least 90% of targeted children by 2016a

(baseline to be collected)

DepEd annual statistical reports School data on performance and achievement measures Narrative reports from schools Revised Philippine ECCD Checklist

Assumptions DepEd MIS data is available, up-to-date, and accurate for target beneficiary schools and communities DepEd maintains a enabling policy environment for early childhood education UNICEF will complete the revised ECCD checklist

Outcome A sustainable multistakeholder partnership model established for expansion of preschool and early primary education

By 2014 in target communities: More and stronger partnerships to support preschool and early primary education as measured by amount of resources mobilized from the private sector, and development partners (baseline to be collected) Proportion of grade 1 enrollees with prior preschool participation increased by 20% (baseline to be collected)

Final evaluation study DepEd annual statistical report Narrative reports from schools

Assumptions DepEd MIS data is available, up-to-date, and accurate for target beneficiary schools and communities

Outputs 1. Expanded access to safe and child-friendly preschool learning environments

By 2014 in target communities: 60 safe and child-friendly, seismically stable, fully furnished and equipped preschool buildings completed 6,000 preschool students have access to fully equipped preschool buildings and developmentally suitable learning materials At least 9,000 students (grades 1–3) benefited from fully functional library Number of parents (both fathers and mothers) reached by advocacy and awareness raising campaign on the importance of preschool, early literacy, and foundational learning increased (with a minimum 40% of men)

DepEd annual report on number of classrooms, number of children enrolled in June and principal’s attendance reports by year-end in March–April

ECERS reportsb

End of project completion report and evaluation study

Assumption Land and teachers required for construction and staffing of new buildings are made available by DepEd Risk Major natural calamities or disasters cause construction delay in some areas

2. Improved capacity in teaching and school leadership

By the end of 2014, the following fully adopted and implemented: Improvement of DepEd's gender- inclusive preschool curriculum and program, and literacy support program for students of grades 1–3

PIU quarterly project status reports Summary report on participant training evaluation

Assumption Stability of teacher and school head deployment in partner schools assured

Greater quality of learning environments as measured by ECERS score by 2014 (baseline

data to be collected)

Assessment results using ECERS toolsa Performance appraisals of teachers conducted by DepEd

Risks Midyear or midstream turnover of teachers and

Appendix 1

13

Appendix 2 16

Design Summary

Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

Training of teachers and education staff at elementary schools on key gender issues conducted

PIU quarterly project status reports

school heads Weak division and school leadership

3. Sustainable partnerships with communities and civil society in support of preschool and early primary education established

Institutional framework and business plan for strengthening multistakeholder partnerships developed for at least 50% of targeted communities by year 2 PCLCs established in each target school and municipality by year 2 and meeting at least monthly with regular participation of at least 50% of parents of preschool students. Nutrition programs implemented in project-supported schools by year 2 At least 10 livelihood programs established with partner NGOs by year 3

Agreed business plans Midterm review

PCLCs' monthly reports that indicate level of parent involvement in activities

Partner NGOs' quarterly reports

Assumption School heads and teachers fully appreciate the importance of home–school partnerships and are committed to creating the enabling conditions Risks Weak school leadership and/or turnover of school staff disrupt home–school partnerships Delays in implementation of project activities by partner NGOs

4. Project monitoring and impact evaluation conducted

Project monitoring: PIU fully staffed and operational Project monitoring and evaluation system put in place within 6 months of implementation Annual performance monitoring and evaluation reports submitted on time Annual audits conducted Impact evaluation: Baseline and endline surveys designed and conducted Impact evaluation study designed and conducted Exit strategy prepared and implemented successfully Policy recommendations on strengthening “K to 3” (kindergarten to grade 3) education prepared and presented to DepEd

PIU quarterly project reports Annual audit reports Performance monitoring and evaluation reports Midterm review Project completion report Impact assessment report Policy notes

Assumption Recruitment of qualified staff, consultants, and local NGOs by implementing agency Risk Poor reporting and quality of data

Activities with Milestones Inputs 1. Expanded access to safe and child-friendly preschool learning environments Project Cost:

$3.54 million Japan Fund for Poverty Reduction: $1.50 million Government: $1.63 million (in-kind)

1.1 Site selection and evaluation to start on day 15, with all 60 project sites selected (with complete requirements for participation) after 18 months 1.2 Construction of 60 one-story buildings, each with two classrooms and a library, completed by end

of year 2. All structures furnished with basic learning materials and books, classroom supplies replaced as turned over.

1.3 School heads and teachers given orientation on how to set up and operationalize Silid Pangarap4 as preschool classroom, school library, family literacy and parent education hub (commenced by month 4, and at least 1 month prior to every turnover)

4 school-library facilities that will also serve as preschool classrooms for schools in depressed and disadvantaged communities

Appendix 1

14

Appendix 2 16

Activities with Milestones Inputs 1.4 Data-gathering for database on students and family profiles in pilot sites to begin within year 1 as

input to metrics for child nutrition. Private sector: $0.38 million Communities: $0.03 million (in-kind)

1.5 Advocacy campaign targeting parents in pilot sites on importance of early literacy and kindergarten education launched by month 4

2. Improved capacity in teaching and school leadership 2.1 Training program designed, materials and handouts prepared by month 3 2.1 Baseline established through survey and needs assessment on teachers’ and principals’ competencies on early childhood education within site selection process 2.3 Three modules on the Model Preschool Program and the Silid Pangarap as library implemented with

100% participation of preschool teachers and school heads of recipient schools within 2 years of project life

2.4 Training conducted for teachers and staff at elementary schools on key gender issues and on encouraging boys in particular to complete schooling

2.5 Validation of teacher performance and status of the Silid Pangarap as child-friendly environments for “K to 3” through site-based monitoring, observation and assessment by trainers (at least 1 per year).

3. Sustainable partnerships with communities and civil society in support of preschool and early primary education established

3.1 An institutional framework and business plan for strengthening multistakeholder partnerships developed by month 24

3.2 School heads and teachers trained to organize and implement family literacy and parent education modules in the Silid Pangarap of the beneficiary schools with the active participation of parents by month 6 3.3 Teachers and school heads organize parents and motivate their participation in PCLCs by month 6 3.4 Annual workplan for PCLCs developed to include activities for parent education, livelihood projects in support of feeding and other child health and education programs by month 3 and implemented by month 6 3.5 Annual workplan of NGO or corporate partners for each project school determined and evaluated and initial meetings facilitated (months 2–6) 3.6 Memorandums of understanding signed with NGOs and/or corporations by month 8, and activities and programs with partner NGOs and/or corporations implemented and PCLCs monitored 4. Project monitoring and impact evaluation conducted 4.1 PIU established and mobilized by month 1 4.2 Inception workshop conducted by month 2 4.3 Monitoring and information system designed and established by month 5 4.4 Baseline survey completed by month 6 4.5 Annual audit conducted 4.6 Regular site monitoring conducted 4.7 Regular project monitoring reports prepared and submitted 4.8 Midterm evaluation conducted by month 18 4.9 Revised Philippines ECCD checklists and ECERS adapted and used 4.10 Impact evaluation study competed by month 35 4.11 Policy recommendations formulated and presented by month 35 4.12 Policy notes prepared and published by month 36 4.13 Impact assessment report prepared and published by month 36 ADB = Asian Development Bank, DepEd = Department of Education, ECCD = early childhood care and development, ECERS = early childhood environment rating scale, MIS = management information system, NGO = nongovernment organization, PCLC = parents for child literacy committee, PIU = project implementation unit, UNICEF = United Nations Children’s Fund. a 90% of children enrolled in the preschool classes achieve child development index scores of at least 80–119 on the expanded Philippine ECCD checklist. b ECERS is a tool for evaluating the quality of early childhood education programs to be adapted for use in all schools supported by the Japan Fund for Poverty Reduction-funded project. Source: Asian Development Bank.

Appendix 2

15 A

ppendix 2 15

SUMMARY COST ESTIMATES ($)

Item

Component A: Safe and Child-Friendly

Learning Environments

Component B: Teaching and

School Leadership Capacity Building

Component C:

Sustainable Partnerships with Communities and

Civil Society

Component D: Project

Management, Monitoring, and

Impact Evaluation

Total ($)

% 1. Civil works 889,542 0 0 0 889,542 59.3

2. Equipment and supplies 73,254 0 0 1,163 74,417 5.0

3. Training, workshops, and seminars 0 28,604 6,018 2,465 37,087 2.5

4. Consulting services 12,558 0 0 104,000 116,558 7.8

5. Project management, monitoring, and evaluation 0 0 0 57,558 57,558 3.8

6. Other inputsa 0 32,685 218,605 0 251,290 16.7

7. Contingencies 50,320 3,117 11,589 8,522 73,548 4.9

Subtotal Grant Financed 1,025,674 64,406 236,212 173,708 1,500,000 100.0

8. Government contribution (in-kind) 446,512 1,180,465 837 0 1,627,814

9. Private sector contributions 320,925 0 62,791 0 383,716

10. Communities' contributions (in-kind) 0 1,440 29,700 0 31,140

Total Estimated Costs 1,793,111 1,246,311 329,540 173,708 3,542,670 a Includes nutritional supplement, deworming pills, seed money for livelihood programs, operating costs of nongovernment organizations, and volunteers’ time. Source: Asian Development Bank estimates.

Appendix 2

16

DETAILED COST ESTIMATES

34,884 34,884 IC 13,953 13,953 IC

872 872 FA 7,849 7,849 FA

Appendix 2

17

465 465 FA 2,000 2,000 FA

1,163 1,163 DC

Appendix 3

19

ORGANIZATION CHART

Project Implementation Unit

Project director

Project implementation

specialist

Civil works/ procurement

specialist

Financial management

specialist

Technical advisors

Project Steering Committee

Local NGOs

Community volunteers

Appendix 4

20

IMPLEMENTATION SCHEDULE

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4PROJECT COMPONENTS AND ACTIVITIES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

A. Safe and Child-friendly Learning Environments1.1 Site selection and evaluation for all 60 project sites 1.2 Preparation of bid documents 1.3 Bidding and awarding of contracts1.4 Construction in all three areas1.5 Furnishing, shipping of contents

B. Teaching and School Leadership Capacity Building2.1 Design of training program, production of materials

2.2 Teacher Training Module 12.3 Teacher Training Module 22.4 Teacher Training Module 32.5 Teacher Training Module 32.6 Survey and needs assessment program implemented to establish

baselines for competence of teachers and school heads in ECCD2.7 Development of monitoring tools for Division Preshool Coordinators

and school heads to assess trained teachers' performance 2.8 Validation of teacher performance and Model Preschool Program

as child-friendly environments for K-3 via site based monitoring,observation and assessment by trainers

C. Sustainable Partnerships with Communities and Civil Society3.1 Develop plan/framework for strengthening multitaskholder partnerships

in support of universal access to preschool3.2 Train schoolheads and teachers to organize and implemet family literacy

and parent education modules in target schools w/ active parent participation3.3 One PCLC organized per region (NGO, Teachers, Parents as members) resulting in

an Annual Work Plan for PCLCS to include parent educ, livelihood, feeding, other literacy programs

3.4 NGO and corporate partners for each school determined and evaluated, initial meetings held

3.5 MOA with NGOs and/or corporations signed3.6 Conduct first skills/livelihood workshop for parents, teachers, community trainors3.7 Conduct Feeding Program in first 50% of sites3.8 Conduct Feeding Program in next 50% of sites3.9 At least two livelihood programs set-up and plans for four more in progress

D. PROJECT MANAGEMENT, MONITORING AND IMPACT EVALUATION4.1 PIU established and mobilized4.2 Inception Workshop4.3 Monitoring and Information System deigned and established 4.4 Baseline Survey completed4.5 Annual Audit conducted4.6 Regular Site Monitoring Conducted 4.7 Regular project monitoring reports prepared and submitted4.8 Midterm evaluation conducted4.9 Revised Phil ECCD checklist and ECERS adapted and used

4.10 Impact Evaluation Study conducted4.11 Impact Assessment Report, policy recommendations formulated and presented

TOTAL

2012 2013 2014 2015

Appendix 5

22

GUIDANCE NOTE ON VISIBILITY OF JAPAN Introduction

The Government of Japan has been making generous contributions for technical

assistance activities through the Japan Special Fund, and for poverty reduction projects through JFPR, since they were established in 1988 and 2000, respectively. Other Japan Funds (JFICT, JFPPT, ACEF, ICFF, and JSP) have since been established and likewise provide a steady source of funding for various thematic activities. It is but fitting and proper that said contributions are acknowledged and the recipients and general public are informed of the source of the funding assistance both at the Fund level and at the level of the individual TA and project grants. The purpose of this note is to provide guidance on measures to ensure that the contribution of Japan in supporting the Japan Funds is widely recognized.

Statement on Japanese Visibility

In the case of JFPR, the JFPR Policy Guidelines provide general guidance on Japan

Visibility and Coordination with Local Embassy of Japan Officials. More specifically, project teams are encouraged to help promote the visibility and local awareness of JFPR and the other Japan Funds in recipient countries through the following:

(a) Publications, training programs, seminars and workshops financed by Japan grants/TAs should clearly indicate that the activities in question have received funding from the Government of Japan; (b) The JFPR logo (see sample below) should be used in publications financed by the JFPR program, and in banners and any other materials used in seminars and training programs financed by JFPR grants. In the case of other Japan, the fund name should be prominently displayed; (c) All press releases issued by ADB with respect to Japan grants should refer to the financial contribution from the Government of Japan; (d) Recipients should be encouraged to ensure that Japan-financed activities are well covered by local print and electronic media, and that all related publicity materials, official notices, reports and publications explicitly acknowledge Japan as the source of funding received; (e) Grant signing ceremonies in the field should be encouraged, with the Recipients being encouraged to include Japanese embassy officials and to invite local and international press to these ceremonies; and (f) Civil works, project billboards/signage, vehicles, and equipment should carry the JFPR logo/fund name.

In addition, OCO may promote visibility of Japan Funds by: (i) informing Country

Directors of the importance of signing ceremonies to Japanese officials and the public to ensure recognition and support for Japanese funding; and (ii) continuing widespread distribution of the Fund Annual Reports, inclusion of Japan Fund information in relevant ADB documents, and

Appendix 5

23

occasional information sessions for Japanese organizations. Below are examples of other ways to improve visibility.

JFPR Logo (for JFPR-funded projects and TAs)

This logo will be used on the JFPR website. All grant approval notifications will include

this guidance note and a printout of the logo. Soft copies (a pdf version and an Adobe Illustrator version) may be downloaded from the OCO Website for use by the ADB and transmission to grant recipients. The ADB will make every effort to ensure that: (i) publications, training programs, seminars, workshops, financed by the JFPR grants clearly indicate that the activities in question have received funding from the Government of Japan; (ii) all press releases issued by the ADB with respect to the JFPR grants refer to the financial contribution of Government of Japan; and (iii) the logo is used in publications financed by the JFPR program, banners and any other materials used in seminars and training programs financed by the JFPR grants; as well as on civil works projects, vehicles, equipment, etc.

Japan ODA Logo (for other Japan Fund-supported grants)

Guidelines on the use of this logo may be downloaded from the OCO Website.

Local Publicity Opportunities

In addition to the use of the logo, ADB staff are urged to take all appropriate measures to encourage Recipients to ensure that Japan Fund-financed activities are well covered by local print and electronic media, and that all related publicity materials, official notices, reports and publications explicitly acknowledge Japan as the source of funding received. Below is a standard text suggested for use by those who prepare publicity materials: “The grant which financed this (name of activity) was received under the [Japan Fund for Poverty Reduction/Name of Fund] which is financed by the Government of Japan.”

Many ADB Resident Missions periodically publish newsletters. New grant approvals, signing ceremonies, and major project activities should be publicized in these newsletters. Most country offices have External Relations staff. Project/TA teams are encouraged to consult with them on ways to increase the visibility of Japan regarding Japan Fund grants. Opportunities to publish articles on high visibility projects/TAs prepared with the Japan Funds should be explored and utilized. Project/TA teams are advised to brief the Country Directors about the implementation status of Japan Fund grants. Such information will help the Resident Missions

Appendix 5

24

highlight Japan’s contribution, where relevant, in their meetings and presentations in seminars and workshops.

Ceremonial Events

Country Directors and the project/TA officers will receive notification of grant approvals and will be informed of the importance of signing ceremonies to Japanese officials and the public. At grant signing ceremonies and other publicity events, the ADB’s country-based staff are expected to foster the attendance and participation of country-based officials of the Embassy of Japan in a manner that provides due recognition of their donor status. Grant recipients should take the lead in organizing such ceremonies, and whenever possible, recipients should issue the formal invitation to attend. Such ceremonial events should also be alerted to the media and publicity outlets referred to above.

Visibility from ADB Headquarters

Country-based ADB staff are requested to forward copies of all visibility material, such as press releases, newspaper and magazine articles, and photographs (including descriptive captions) to the following address: Japan Funds Team Rm. 7708-East Asian Development Bank 6 ADB Avenue, Ortigas Center Mandaluyong City 1550 Philippines

Appendix 6

25

JAPAN FUND FOR POVERTY REDUCTION GUIDANCE NOTE ON COORDINATION WITH THE EMBASSY OF JAPAN

1. Introduction • The Final Report on the Review of Japanese Official Development Assistance5 (ODA)

underscores the need for strategic and effective aid. One way to ensure alignment of JFPR projects and TAs with GOJ’s bilateral assistance strategy for a particular DMC is by bringing on board the comments and suggestions of the Embassy of Japan. Thus, under JFPR, project officers are required to consult with the local Embassy6

of Japan about the project proposal before submitting the TA Project Profile/Grant Proposal to OCO for processing. This Guidance Note provides detailed instructions regarding coordination activities with the Embassy of Japan.

2. Embassy of Japan (EoJ) Contact Persons • The names of EoJ contact persons and their contact details are listed in a table which is

posted in the OCO website. The list is provided to OCO by Japan’s Ministry of Finance and is updated from time to time. It is important to confirm the details in the table before contacting the embassy.

3. Role of the Resident Mission and OCO • Communications with EoJ should be done with cc. to the Resident Mission or the relevant

Country Officer at HQ and with OCO. If needed, RM’s assistance may be sought to arrange the meeting with EoJ.

• RM’s role is also crucial in arranging the Letter of Agreement signing event (item 6 below) and in overall coordination/relationship management with EoJ.

4. Consultation with the Embassy – Concept Stage • A meeting with the embassy contact person should be scheduled during the Fact-Finding

Mission. During the meeting, the concept paper or draft TA Project Profile must be explained to and discussed with the embassy officer, with a brief summary which outlines the proposal.

• The concept paper document or draft TA Project Profile should be submitted to the embassy at least seven working days before the consultation to give the embassy time to review the document.

• Efforts should also be made to meet with the JICA officer in the DMC. • Any comments made by the embassy and/or JICA should be reflected and a summary of

the consultation should be included in the final TA Project Profile or Project Grant Proposal as the case may be.

• The project officer should exert all efforts to meet with the embassy contact person. However, if a meeting with the embassy is not possible, email exchange, telephonic discussion or any other form of inter-active communication may be used. In such cases, an email containing the embassy's comments on the proposal should be sought and reflected in the final proposal.

5 Ministry of Foreign Affairs of Japan.2010 ODA Review - Summary of the Final Report. Tokyo 6 In the case of Regional Grants, officers are required to consult with ALL embassies mentioned in the proposal.

Appendix 6

26

5. Coordination with Embassy of Japan upon Approval of the Proposal • Once the proposal has been approved by ADB, the project officer should inform EoJ about

the approval. Project officers are strongly encouraged to stage signing ceremonies related to the Project Letter of Agreement or launching ceremonies, etc. in the field, with the attendance of EoJ officials.7

•

• In coordination with the Resident Mission (RM), the project officer should inform the EoJ as well as OCO – which will alert the Japanese authorities in Tokyo – at least ten working days in advance of the signing ceremony. The project officer should also draft a news release in consultation with the Department of External Relations and coordinate arrangements for the RM to invite the local and international press to these ceremonies.

6. Coordination with Embassy of Japan during Project Implementation and upon Project Completion • From time to time, the EoJ should be informed about project progress and milestones

especially when major changes in scope and objectives are required. Throughout all phases of the project, from concept to completion, the project officers should answer inquiries from EoJ regarding the project and discuss where necessary. Embassy officials may also wish to join progress review missions in order to see project results and to interact first-hand with project recipients.

• Project officers are also required to share information on the outcomes and lessons from

JFPR projects and TAs with the EoJ and JICA in the field to enable both sides to explore and seek potential collaboration.

7 Please3 refer to the Visibility Guidance Note for details on visibility requirements under JFPR

Appendix 7

27

PROCUREMENT PLAN

Basic Data Project Name: Enhancing Access to Quality Early Childhood Education for Children in Poor Communities Country: Philippines Executing Agency: Department of Education

Implementing Agency: Aklat, Gabay, Aruga tungo sa Pagangat at Pagasa (AGAPP)

Grant Amount: $1.5 million Grant Number: 9161 Date of First Procurement Plan: 25 June 2012 Date of this Procurement Plan: 25 June 2012

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

1. Project Procurement Thresholds

1. 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 National Competitive Bidding (NCB) for Works1 Above $50,000 Direct Contracting (DC) $10,000 and below Procurement for Specialized Agencies NA Force Account NA

2. ADB Prior or Post Review

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

Procurement Method Prior or Post Comments Procurement of Goods and Works NCB Works Prior Only one (1) package; ADB

will review the English language version of the bidding documents

Direct Contracting Post IA may secure three quotations to compare prices

Procurement for Specialized Agencies Prior IA to justify selection of supplier.

Force Account Post IA to engage its own technical staff and pay field personnels and participants related travel and workshop expenses

Recruitment of Consulting Firms Consultants Qualifications (CQS) Prior IA to post in CSRN Least Cost Selection (LCS) Prior IA to post in CSRN Single Source Selection (SSS) Prior RRP justifies the

engagement of GVS NGO Recruitment of Individual Consultants Individual Consultants (IC) Prior IA to post in CSRN for a

minimum of 7 days and shortlist at least 3 candidates

Appendix 7

28

3. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000

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

General Description

Value of Contracts

(cumulative) Number of Contracts

Procurement / Recruitment

Method1 Comments Civil Works Construction of 45 One Storey, Two-Classroom Buildings

889,542 1 NCB Consists of multiple contracts. IA to submit the draft

bidding documents for ADB’s approval

Equipment and Supplies 1. Furniture 2. Books 3. Learning Materials, Supplies 4. Shipping 5. Nutritional Supplement 6. Manuals (Printing) 7. PIU Office Supplies

20,932 7,322

34,542 10,458

188,372 12,279 1,163

60 60 60 60 60

480 LS

DC DC DC DC

PSA DC DC

Duration of Project

Consulting Services 1. Civil Works/Procurement

Specialist (18pm) 2. Training Workshops

Seminars 3. Monitoring Visits 4. Local NGO 5. International NGO (GVS) 6. Baseline Survey 7. Impact Evaluation Study 8. Technical Advisor 9. External Audit 10. Project Implementation

Specialist (30 pm) 11. Financial Management

Specialist (30pm)

12,558

28,604 31,592 12,995 23,256 20,000 60,000 12,000 12,000

34,884

13,953

1

Various various

3 1 1 1 1 3

1

1

IC (National)

FA FA

CQS (BTP) SSS (BTP)

FA FA

IC (National) LCS

IC (National)

IC (National)

First 18 months

Appendix 7

29

B. Indicative List of Packages Required Under the Project

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

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Domestic Preference Applicable1 Comments

Furniture Books Learning Materials, Supplies, etc Shipment (?)

20,930 7,326

34,535 10,465

60 60 60 60

DC DC DC DC

Works Construction of 60 One Storey, Two-Classroom Buildings

1,186.947

9

NCB

15 out of

the 60 will be financed by private partners

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Recruitment Method Type of Proposal Comments

Project Implementation Specialist (30 pm) Engineer/Procurement Specialist (18 pm) Financial Manager (30pm) Policy and Planning Specialist/Technical Advisor External Audit

34,884

12,558 13,953

12,000

12,000

1

1 1

1

3

Individual

Individual Individual

Individual

CQS

BTP

Appendix 7

30

C. National Competitive Bidding

1. General

7. The procedures to be followed for national competitive bidding shall be those provisions referring to open competitive bidding procedures set forth in Republic Act 9184 the Republic of the Philippines, effective 26 January 2003, and its Revised Implementing Rules and Regulations, effective 2 September 2009, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines, Section I and paras. 3.3 and 3.4 of Section III.

2. Eligibility

(i) Eligibility screening shall not be applied. However, bids that do not contain any of the following documents will not pass the documentary compliance check: (i) evidence of the required financial, technical or production capability; (ii) audited financial statements; (iii) credit line, or cash deposit certificate; (iv) bid security; and (v) authority of the bid signatory.

(ii) National sanction lists may be applied only with prior approval of ADB

3. Advertising

8. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised concurrently with the general procurement notices on ADB’s website.

4. Price of Bidding Document

9. The price of bidding documents should be nominal, covering only reproduction and mailing/courier costs.

5. Price Ceiling 10. The approved budget for the contract (ABC) may be published, but it shall not be stated or implied that bid prices may not exceed the ABC, or that bid evaluation will in any way take into account the ABC. The ABC, budgetary allocation, ceiling price, or similar estimates of contract value may not be used to reject bids without prior concurrence of ADB.

6. Preferences

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

(ii) Suppliers and contractors shall not be required to purchase local goods or

supplies or materials. (iii) Foreign suppliers and contractors from ADB member countries shall be allowed to

participate, if interested, without first being required to associate with, or enter into

Appendix 7

31

joint venture with, local firms. (iv) 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.

7. Experience Qualification

11. For works contract, the experience qualification requirement shall be: (i) at least one previous contract at 80% of the estimated cost of the contract being procured; and (ii) an annual turnover from all works averaged over the last three years equal to 100% of the estimated cost of the contract being procured.

8. Anticorruption Provisions in Bidding Documents

12. Anticorruption provisions in the Instructions to Bidders section of ADB standard bidding documents (SBDs) shall be incorporated into NCB bidding documents including those under “Corrupt Practices” and “Eligible Bidders” clauses of the SBDs.

9. Bidding Period

13. Bidders shall be given a minimum period to prepare and submit bids of 4 weeks, counted from the date of invitation to bid or the date of availability of bidding documents, whichever is later.

10. Single Bid Submission

14. When a lone bidder obtains a bidding document and submits a bid at the deadline for bid submission under a postqualification bidding, bid opening and evaluation shall not proceed but it shall be considered a failure of bidding. Before taking any alternative procurement action, a proper assessment of the cause of lack of participation shall be made and ADB prior approval shall be sought for any proposed subsequent action.

11. Shopping Method

15. If included as a procurement method in the Procurement Plan, “Shopping” shall be undertaken in accordance with the ADB Procurement Guidelines (April 2010, as amended from time to time).

12. Contract Amendment

16. In case of contracts for prior review, modifications exceeding 15% of contract amount and material changes in the conditions during implementation require prior ADB concurrence.

Appendix 7

32

13. Member Country Restrictions 17. Bidders must be nationals of member countries of ADB, and offered goods must be produced in member countries of ADB.

Appendix 8

33

METHODS OF PROCUREMENT

A. National Competitive Bidding

NCB may be considered only if ADB is satisfied that

i) foreign contractors and suppliers are not likely to be interested in bidding; ii) local production or construction facilities are available, offer prices below the

international market, and are adequate for prompt delivery; iii) domestic procurement procedures are satisfactory to ADB; and iv) where the borrower requested the use of NCB.

Moreover, NCB may be considered for contracts that

v) are of small value; vi) consist of a series of small-value works; vii) are located in several areas that may be far apart in the borrowing DMC; and viii) will be executed at different times.

The threshold for NCB for this Project is between $50,001 to $1.500,000 for works contracts, or between $50,001 and $1.0 million for supply of goods.

B. Shopping

Shopping is a simplified procedure, used for procuring low-value, readily available off-the-shelf goods, or simple civil works of low value. The threshold for Shopping is set between $10,001 and $50,000 for both works or supply of goods.

C. Direct Contracting

For the procurement of items below $10,000, the IA may purchase the items directly from the supplier. In such cases, ADB should be satisfied that the price paid is reasonable.

D. Force Account Force account refers to the use of the EA or IA’s own personnel and equipment

Evaluating Procedures Evaluation of bids and contract awards must be fair, and evaluation criteria must be made known to all bidders. Factors to be considered when evaluating NCB procedures of an EA are briefly described below: Treatment of Foreign Bidders Suppliers and contractors from all member countries are entitled to participate in local procurement and may not be denied participation due to nationality. Contractors and suppliers may apply for prequalification (where used) and to bid for contracts under NCB bidding

Appendix 8

34

procedures. ADB requires the borrowing DMC to permit such participation, but foreign bidders must adhere to local procedures acceptable to ADB, including using the local language and paying in local currency, if required by the bidding documents. Under local procurement procedures, the delivered cost of materials including import duties and other taxes may be used when comparing bids. ADB's domestic preference policy shall not be applied International Advertising Procurement of NCB contracts is advertised in adb.org via posting of the Procurement Plan. Using Standard Bidding Documents for NCB Borrowers are to be encouraged to use ADB-approved standard bidding documents for NCB, ideally based on the standard bidding documents for ICB. This will help ensure high quality and consistency in the documents and will hasten ADB's review. The documents should reflect local procurement requirements but must not contravene the basic principles underlying the Procurement Guidelines. Standard bidding documents are available at http://www.adb.org/Procurement/prequalification-bid-documents.asp. ADB Review of Procurement Documents For each project, the first draft English language version of the procurement documents should be submitted for ADB review and approval regardless of the estimated contract amount. ADB-approved procurement documents should be used as a model for all procurement financed by ADB for the project, and need not be subjected to further review unless specified in the procurement plan, or required under special arrangements. The first two contracts for works in each province will be subject to ADB approval. Subsequently, the PIU will maintain specified documents for review by ADB. Approval of Contract Award For NCB, ADB will review the bid evaluation report (BER) and award of contract on a post-review basis. The review arrangements are specified in the procurement plan. Similarly, for Shopping, ADB will normally review the award of contract on a post-review basis. The IA must submit copies of the BER and signed contract in English to the concerned sector division or resident mission for post review as soon as possible following contract award (unless prior review is specified in the procurement plan). The EA should be advised that ADB reserves the right to refuse financing for the contract if it is found during post review that the procurement has not been conducted in accordance with the Procurement Guidelines, or other provisions specified in the financing agreement.

Appendix 8

35

Appendix 8

36

Evaluating NCB Procedures in the Developing Member Countries While NCB procedures do not need to be identical with the ADB's ICB procedures, the basic objectives of the latter such as economy, efficiency, transparency, and equal and fair opportunity for all eligible bidders must be met. The following checklist helps evaluate the procedures. A. Eligibility All qualified local bidders are eligible. For foreign bidders see above main text. B. Advertising NCB contracts estimated to cost $500,000 or more for goods and related services and $1,000,000 or more for civil works will be advertised in the Business Opportunities section of adb.org concurrently with the general procurement notice. Advertising in the local language in local web site or newspapers is acceptable. C. Bidding Period This could be shorter than for ICB; 4 weeks is acceptable. D. Prequalification Prequalification is discouraged for contracts bid following NCB. Where used, 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. However, foreign bidders from eligible member countries must be allowed to obtain such registration and to bid without unreasonable cost or additional requirements. E. Bidding Bids can be made in the local language, restricted to local banks for bid and performance security (where used), and limited to local currency for bidding and payment. Specifications are to be unambiguous; international standards are not required. A copy of the bidding documents must be made available in English to ADB for review. The use of standard bidding documents is encouraged. Once ADB accepts the documents they must be used for all subsequent ADB-funded NCB procurement for the applicable project. Public bid opening and recording of bids is mandatory. Two-stage bidding procedures are acceptable for eliminating nonresponsive bidders before opening price proposals. Bracketing and lottery systems are not acceptable to ADB. The use of multiple-delivery places for bids and bid opening is unacceptable.

Appendix 8

37

Bids should not be invited on the basis of a percentage premium or discount over the estimated cost. Bids should not be rejected only on the basis of a comparison with the EA’s estimate. Extension of bid validity may be sought only under exceptional circumstances. Factors, evaluation methodology, and evaluation criteria must be explicitly stated in bidding documents and applied consistently; and the contract award must be to the bidder who submitted the lowest evaluated substantially responsive bid. Price negotiations with bidders before signing contracts is not acceptable, except when all bids received are substantially higher than the estimate and ADB gives prior approval to negotiate with the bidder who submitted the lowest evaluated substantially responsive bid for a price reduction, before resorting to rebidding. F. Domestic Preference ADB's domestic preference policy or any other domestic preference policies are not applicable under NCB. When foreign bidders participate, comparison will be on the delivered price including import duties and taxes. G. Restrictions Restrictions on the sources of transportation and insurance are acceptable. H. Contract Price adjustments for inflation, and settlement of disputes by local courts or local arbitration, are acceptable. I. General Staff should consult COSO on any unusual features and OGC on any specific legal issues.

Appendix 9

38

DETAILS OF CONSULTING SERVICES REQUIRED AND OUTLINE TERMS OF REFERENCE

A. Individual Consultants

1. Civil Works/Procurement Specialist (national, 10 person months) The civil works/procurement specialist will be responsible for the overall supervision of all civil works and construction activities under this project. The consultant shall be responsible for the entire procurement and bidding process and should ensure that all processes and financial reports, reports on expenditures, and procurement are in line with guidelines of the ADB and government of Philippines. The consultant will assist with the annual independent audits of project activities. The detailed responsibilities of the civil works/procurement specialist are as follows: 1) prepare bid documents, coordinate bidding, collation of proposals for submission to PIU

members, awarding of bids the procurement to support the Dep ed- AGAPP partnership for early childhood care and development so that it can be implemented in a timely fashion.

2) undertake the necessary steps to ensure a timely and efficient procurement of goods and civil works

3) collaborate with the project implementation specialist, the financial management specialist and technical consultants in planning the annual activity plans and budgets and work closely with them to ensure that it is incorporated in the respective annual budgets.

4) monitor the bidding process, bid opening, evaluation, and award of contracts at all project levels.

5) coordinate the preparation and submission of the project annual procurement plan for implementation approval based on the plans prepared

6) monitor the compliance of all procurements with government and ADB requirements and the approved procurement plans for goods and services.

7) ensure that all project officers related to procurement have a working knowledge of the project procurement guidelines in force.

8) provide technical assistance as necessary for civil works and procurement processes at all project levels.

9) ensure preparation of timely periodic consolidated civil works management reports to PIU, the PSC and ADB.

10) coordinate, supervise, monitor and evaluate all civil works and procurement and report technical difficulties being faced in implementation of the project activities periodically and seek solutions for problems

11) coordinate the preparation and submission of the project annual procurement plan for implementation approval based on the approve project proposal

12) monitor the compliance of all procurements with government and ADB requirements and the approved procurement plans for goods and services.

Qualifications 1. University graduate with a degree in civil engineering or related course 2. Experience in financial management/procurement/planning of foreign funded projects especially with ADB projects (preferred). 3. Computer literate with detailed knowledge on all the programs in Microsoft office 4. Ability to communicate in oral or written English.

Appendix 9

39

Output Indicators 1. The availability of quarterly financial expenditure and disbursement status report. 2. The availability of audit plan and report plans for quarterly, yearly and PCR-reports. 3. The availability of regularly updated financial management guidelines for all project levels. 4. The Availability of quarterly reports on the status of civil works and procurement of goods

and services.

2. Impact Evaluation Specialist (national, 2.0 person-months intermittent, funded under Incremental Costs and engaged by ADB) The consultant will be responsible for study design and survey protocol for impact evaluation study as well as contribute to the cost-effectiveness analysis on early childhood development program implemented through a JFPR project. The consultant will be engaged for a period of 2.0 person months, on an intermittent basis. His/her work is expected to be completed by 30 September 2012. The consultant will have extensive experience with evaluation studies in particular impact assessment. She or he will develop an evaluation framework and design survey protocol. The consultant’s specific responsibilities include:

a. Conduct a critical review of theoretical and empirical literature on the impact and cost-effectiveness of early childhood development in Asia, in particular focus in the Philippines.

b. Propose an evaluation framework based on review and assessment of survey reports and other project documents (i.e., implementation and progress reports).

c. Develop an evaluation framework and research design for impact evaluation study. d. Finalize the evaluation framework including the selection of evaluation design and

research methodology. e. Identify the secondary data available from routine reports or services statistics that can

be used as impact indicators. f. Develop survey instruments for field data collection using both qualitative and

quantitative methods. g. Formulate the sampling design and estimating the sample sizes. h. Develop a detailed research protocol including research design, research team and data

collection. i. Finalize the research protocol based on consultations with EA and IA. j. Prepare the terms of reference, draft contract and activity timeline for the survey team. k. Undertake any other tasks required for the impact evaluation study.

Outputs/Deliverables The consultant will be responsible for ensuring the following outputs are delivered in a final, edited and print-ready format:

a. Evaluation framework (submitted on or before 15 July 2012) b. Draft research protocol (submitted on or before 1 August 2012) c. Final research protocol, including draft contract, TOR (submitted on or before 15 August

2012) d. Survey instruments (submitted on or before 1 September 2012)

Appendix 9

40

3. Technical Advisor

B. Non-Government Organizations 4. International NGO (GVS)

5. Local NGOs A crucial factor to the successful implementation of the Project is the support of and assistance from a formally organized, locally based NGO that is highly regarded for its integrity, effectivity and track record. The NGO shall be the main representative of AGAPP for the Project in the selected beneficiary areas. Qualifications:

a. Proven experience in successfully implementing community based social development programs at Barangay level;

b. Experience in planning, organizing, and implementing such feeding, livelihood, and microfinance workshops and programs;

c. Proven ability to design and deliver training for communities and parents that is responsive to the needs of the community and families to support continued learning for young children;

d. Availability for the duration of the project implementation period. Outputs/Deliverables:

a. As the local AGAPP representative, liaise with regional Deped and local governments on all aspects of the project.

b. Assist in the beneficiary site selection process, and the actual construction, conducting regular ocular inspections as often as necessary, providing input and feedback necessary to ensure project is implemented and completed according to conditions and standards set.

c. Facilitate submission of data and reports as required by the PIU and ADB in relation to project implementation, monitoring and evaluation.

d. Spearhead the organization of community-school partnerships among teachers, parents and barangay level officials to implement feeding, livelihood, literacy and other activities.

e. Provide assistance in the organization of regional and national workshops for teacher training, parenting and livelihood.

f. Ensure that the Project implementation is done consistently with the overall goals and objectives of the Grant, with a view of its long term objectives of lasting impact and sustainability.

Appendix 10

41

SELECTION METHODS FOR CONSULTING SERVICES

1. Individual Consultant Individual consultants may be recruited directly (independent individual) or through and organization, such as a consulting firm, an academic institution, a government, or an international agency by the EA or ADB. Individual consultants are recruited on the basis of their qualifications for the assignment. The recruitment of consultants should be in accordance with the Guidelines on the Use of Consultants. Below is the flowchart for recruiting individual consultants for grant project assignment.

2. NGO a. Consultants' Qualifications Selection (CQS) This method maybe used for small assignments (usually less than $200,000) where (i) highly specialized expertise is required for the assignment and recruitment of "boutique" consulting firms that provide depth of expertise in specific areas is contemplated; (ii) recruitment time is critical and the assignment is, typically, short-term; (iii) few consultants are qualified; and (iv) the preparation and evaluation of competitive proposals is not justified. The IA shall (i) prepare the TOR, (ii) request amplified EOIs and information on the consultants' experience and competence relevant to the assignment, (iii) establish a shortlist of at least three firms, and (iv) select the firm with the most appropriate qualifications and references based on the EOIs. The selected firm shall be asked to submit a combined technical-financial proposal and then be invited to negotiate the contract. Should negotiations fail, the borrower or ADB shall start negotiations with the next ranked firm until an agreement is reached. b. Least Cost Selection (LCS)

LCS is a selection method that initially determines if the technical proposals of the shortlisted firms are technically qualified, followed by the selection of the firm proposing the lowest price. . LCS is the most appropriate selection method for small (generally less than $100,000) and well-defined standard assignments (for example, audits, engineering design/supervision of simple projects and simple surveys), where well-established practices and standards exist. c. Single Source Selection (SSS) This method does not provide the benefits of competition in regard to quality and costs, lacks transparency in selection, and could encourage unacceptable practices. Therefore, SSS shall be used only in exceptional cases. The justification for SSS shall be exmained the context of the overall interest of the client and the project, and ADB's responsibility to ensure economy and efficiency and provide equal opportunity to all qualified consultants. SSS may be appropriate only if it presents a clear advantage over competition: (a) for tasks that represent a natural continuation of previous work carried out by the firm, (b) in

Appendix 10

42

emergency cases, such as in response to disasters, (c) for very small (not exceeding $100,000) assignments, or (d) when only one firm is qualified or has experience of exceptional worth for the assignment. When continuity of downstream work is essential, the initial Request for Proposal (RFP) shall outline this project, and, if practical, the factors used for the selection of the consultant shall take the likelihood of continuation into account. Continuity in the technical appoach, experience acquired, and continued professional liability of the same consultant maymake continuation with the initial consultant preferable to new competition subject to satisfactory performance in the initial assignment. For such downstream assignments, the EA shall ask the initially selected consultant to prepare technical and financial proposals on the basis of TOR furnished by the A, which shall then be negotiated. If the initial assignment was not awarded on a competitive basis, or if the downstream assignment is substantially larger in value, a competitive process acceptable to ADB shall normally be followed in which the consultant carrying out the initial work is not excluded from consideration if it expresses interest. ADB will consider exceptions to this rule only under special circumstances and only when a new competitive process is not practicable.

The IA may also refer to ADB's consulting services guidelines and related documents from ADB website on the details of each method:

http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf http://www.adb.org/consulting/default.asp http://www.adb.org/Documents/Manuals/PAI/default.as

Appendix 11

43

Fund Flow Arrangement

Asian Development Bank

Contractors/ suppliers

Component A: Safe and child-friendly learning environments

(civil works and supplies)

Component B: Teaching and school

leadership capacity building

Component D: Project management,

monitoring, and impact evaluation

Invoice

Withdrawal application and replenishment

Department of Education

(executing agency)

Direct payment

Component C: Sustainable partnerships

with communities and civil society

AGAPP Foundation (implementing agency)

JFPR imprest account (PIU)

Contract

Letter of agreement

Private sector partners

Donation

proj

ect o

vers

ight

Account – private sector contribution

Invoice Contract

Appendix 12 44

DISBURSEMENT PROCEDURES

Four Major Types Procedures for withdrawal of loan proceeds are standardized to facilitate disbursements under most loans. Disbursement procedures consist of four major types, described briefly as the:

• direct payment procedure where ADB, at the borrower’s request, pays a designated

beneficiary directly (see chapter 7 of the Loan Disbursement Handbook {LDH} for details);

• commitment procedure where ADB, at the borrower’s request, provides an irrevocable undertaking to reimburse a commercial bank for payments made or to be made to a supplier against an LC financed from the loan account (see chapter 8 of LDH for details);

• reimbursement procedure where ADB pays from the loan account to the borrower’s account or, in some cases, to the project account for eligible expenditures which have been incurred and paid for by the project out of its budget allocation or its own resources (see chapter 9 of LDHfor details); and

• imprest fund procedure where ADB makes an advance disbursement from the loan account for deposit to an imprest account to be used exclusively for ADB’s share of eligible expenditures (see chapter 10 of LDH for details).

Simplified Documentation under the Reimbursement Procedure While normally ADB requires submission of full supporting documentation, there are special cases where it accepts simplified documentation when

• the statement of expenditures (SOE) procedure involves the borrower submitting an SOE to support an application (see paragraphs 9.8 to 9.22 of LDH for details);

• the force account works procedure involves the borrower submitting periodic certification of the progress or completion of civil works in support of its application for reimbursement (see paragraphs 9.23 to 9.26 of LDH for details); and

• the simultaneous application for subloan approval and withdrawal (SAW) procedure involves qualified DFIs submitting simplified supporting documents when they request reimbursement of expenditures and ADB’s confirmation of subloans below the set “free limit” (see paragraphs 9.27 to 9.30 of LDH for details).

Appendix 12 45

Suggested Disbursement Procedures The four procedures are normally used for the following kinds of payment:

Nature of Payment/s Precondition for Payment Suggested Disbursement Procedure

Mainly large civil works, progress payments, consultants’ fees, procurement of goods

Payments are due Direct payment

Importation costs The borrower has opened an LC with a provision that the negotiating bank will be reimbursed by ADB for payments made to the supplier

Commitment

Local currency costs, petty purchases, and small civil works

Expenditures have been incurred and paid for by the borrower from its own funds

Reimbursement

Contractors’ bills and suppliers’ invoices, numerous items of operating expenses, other eligible expenditures

The borrower experiences cash flow difficulty

Imprest fund

Appendix 12 46

WITHDRAWAL APPLICATION FOR DIRECT PAYMENTAND REIMBURSEMENTDate:

Application No.

To: Type of Disbursement

Direct Payment

Reimbursement

Sir/Madam:

1. In connection w ith the Loan Agreement dated ________________ betw een the Asian Development Bank and the (Borrow er) , please pay from the Loan Account:

Currency Amount in Figure Amount in Words

The said amount is required for payment or reimbursement of eligible expenditures in the said currency as described in the attached Summary Sheet(s).

2. The undersigned certif ies and agrees as follow s:a. these expenditures w ere/are/w ill be made for the purposes specif ied in the Loan Agreement and the undersigned has not

previously w ithdraw n from the Loan Account or obtained or w ill obtain any other loan, credit, or grant for the purpose of fully or partially meeting these expenditures.

b. the goods or services have been procured in accordance w ith the Loan Agreement and the cost and terms of the purchase thereof are reasonable and in accordance w ith the relevant contract(s).

c. the goods or services w ere or w ill be produced in and supplied by a member country of ADB as specif ied in the attached Summary Sheets(s).

d. for expenditures claimed on the basis of a Statement of Expenditures (SOE), all authenticating documents have been retained in the location show n on the individual SOE Summary Sheets and w ill be made available for review by auditors and ADB representatives upon request.

e. as of the date of this application, there is no existing default under the Loan Agreement, the Project Agreement or the Guarantee Agreement, if any.

f. if any funds w ithdraw n pursuant to this application are returned, the current value of such funds w ill be applied as credit to the Loan Account or, if the amount is small, applied to the next loan service payment due.

3. Payment Instructions:A. Payee's Name and Address

Payee's NamePayee's Address

B. Name and Address of Payee's Bank and Account No.Bank NameBank AddressPayee's Account No.SWIFT Code

C. Correspondent Bank (If Payee’s Bank is not located in the Country whose currency is claimed, enter the name and address of their bank’s correspondent in the country whose currency is to be paid.)

Bank NameBank AddressAccount No. ofPayee's BankSWIFT Code

D. Special Payment Instructions and Other References

4. This application consists of _______ pages including ____ pages of Summary Sheets.

From:Name of Borrow er

Signature of Authorized Representative(s)

Printed Name/Position/Title of Authorized Representative(s)

ADB Loan No. --------------------------------

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippines

Attention: Loan Administration Division, Controller's Department (CTLA)

Appendix 12 47

Instructions in preparing the Withdrawal Application Form for Direct Payment and Reimbursement(ADB Form ADB-DRP/RMP)

General Instructions

1. Submit original Withdrawal Application (WA) to the Asian Development Bank (ADB) (or to its Resident/Regional Mission, if instructed).

2. Prepare separate WA for each currency of payment and for each payee.

3. Number WAs consecutively, not exceeding five digits/characters.

4. Consolidate claims until the amount being withdrawn is at least US$100,000 equivalent or an amount advised by ADB.

5. When completed, verify the application for completeness of supporting documentation and accuracy of details before passing to the Authorized Representative(s) for signature. Mistakes and omissions result in delayed payment.

Withdrawal References

1. Date: Enter the date the WA is signed by Authorized Representative(s), not the date it was prepared.

2. Loan Number: Show ADB loan number clearly.

3. Application Number: Number WAs consecutively. If the project has more than one executing agency (EA) or implementing agency, the project coordinator should assign an alpha identification for each EA. For example : A0001 to A9999 for EA no. 1 and B0001 to B9999 for EA no. 2.

4. Type of Disbursement: Indicate in the appropriate box the type of WA claim, whether for Direct Payment or Reimbursement Procedure.

Payment Instructions

1. Payee Name and Address: Indicate full name and address of Payee for identification of payment.

2. Name and Address of Payee’s Bank and Account No. : Indicate full name and address of the Payee’s bank, which may include a banker/branch designation. Account number is important. Give SWIFT code if Payee’s bank is a member of SWIFT.

3. Correspondent Bank: Where payment is to be made to a bank not located in the country of the currency to be paid, indicate its full name and address. Provide SWIFT code if the bank is a member of SWIFT.

4. Special Payment Instructions: Indicate any particulars, special instructions or references to facilitate payment or identification of payment.

5. Name of Borrower: Fill in name as it appears in the Loan Agreement.

6. Authorized Representative(s): Pass this application only to Authorized Representative(s) for signature. Verify if the list of Authorized Representative(s) has been changed.

Appendix 12 48

SUMMARY SHEET FOR DIRECT PAYMENT/REIMBURSEMENT/REPLENISHMENT/LIQUIDATION

Mark appropriate Direct Payment (ADB-DRP-SS) Reimbursement (ADB-RMP-SS) Replenishment/Liquidation (ADB-IFP-SS)box: (ADB-Direct Payment Procedure-Summary Sheet) (ADB-Reimbursement Procedure-Summary Sheet) (ADB-Imprest Fund Procedure-Summary Sheet)

Summary Sheet No.: Date: ADB Loan No.:

No. & Title of Category/Sub-category: Application No.:

Item Name and Amount Paid/ Nature of Contract/ Invoice/ Receipt Bill of

No. Address of Supplier Payment (Due) Payable Payment Made a PO b Lading Certif icate c

Total Amount Paid/Payable

% of ADB FinancingAmount Requested for Withdrawal d

Borrow er: By:

(Authorized Representative's Signature, Name and Position)

ADB Form No. ADB-DRP/RMP/IFP-SS Revised January 2007

Date ofPCSS

No.

No. & Date of

Contract/PO

Description of Goods

and Services Claim

Supporting Documents Attached(please mark with an X)

Notes:a Indicate against each item, w hether the payment is a dow n payment, or an installment payment (if so, the number of installment).b In case this w as sent earlier, indicate the reference of the earlier letter in the footnote using (*).c In case of civil w orks contract, a duly signed progress or interim certif icate should be submitted.d Ensure that amount agrees w ith the sum indicated in the application.

Appendix 12 49

STATEMENT OF EXPENDITURES (SOE) FOR CONTRACTS OF US$100,000 AND BELOWFor the Period ________________ to ___________________

SOE for: Reimbursement Liquidation

SOE Sheet No.: ADB Loan No. Category/subcategory: Application No.: Date:

Amount Paid Check No.

* PCSS - Procurement Contract Summary Sheet. TOTALS

Borrow er: By:(Authorized Representative Signature, Name and Position)

C o n t r a c t

PCSS*Number

ItemNo.

Date Bill No.Description of Contract Name and Address ofSupplier/Contractor Rate

US$ Equiv.ChargedImprest Account

Date Amountof Bill

RetentionMoney Financing at___ %

Cost of ADB Paid by

CERTIFICATION

P R O C U R E M E N T D I S B U R S E M E N TP a r t i c u l a r s of P a y m e n t ADB F i n a n c i n g

RemarksTaxes Exchange

It is hereby certif ied that the above amounts have been paid for proper execution of project activities w ithin the terms and conditions of the Loan Agreement. All documentation authenticating these expenditures has been retained in (insert location) and w ill be made available upon request of review missions. It is further certif ied

that payments have not been split to enable them to pass through the threshold prescribed under the SOE.

Appendix 12 50

STATEMENT OF EXPENDITURES (SOE)FREE FORMATa

For the Period ___________ to ___________

Loan No.: Withdraw al Application No.: Date:

Summary Sheet No.: Liquidation/Replenishment of Imprest Advances

Category/subcategory No.: Reimbursement

TOTALSA) Total B) Percentage of ADB FinancingC) ADB Financingb (A x B)

Borrow er: By:(Authorized Representative Signature, Name and Position)

Item No.

CERTIFICATION

It is hereby certif ied that the above amounts have been paid for proper execution of project activities w ithin the terms and conditions of theLoan Agreement. All documentation authenticating these expenditures has been retained in (insert location) and w ill be made availableupon request of review missions. It is further certif ied that payments have not been split to enable them to pass through the thresholdprescribed under the SOE.

Notes:a This free format is applicable to local expenditures such as recurrent operating cost, fellow ship and training, etc., w hich are not covered by contract aw ards. For other SOE claims, column headings and titles may be added/changed as appropriate to suit the circumstances of the Project.b Ensure that the total amount or the aggregate of all summary sheets agrees w ith the sum indicated in the application w hich should be equivalent to US$100,000 or above.

Appendix 12 51

WITHDRAWAL APPLICATION FORM FOR IMPREST FUND

Date Application No.

To: Type of Disbursement

Initial Advance

Increase in Ceiling

Replenishment

Sir/Madam:1. In connection w ith the Loan Agreement dated ________________ betw een the Asian Development Bank and the (Borrow er) , please pay from the Loan Account for the purpose of establishing/replenishing the Imprest Fund.

Currency Amount to be Paid (in f igures) Amount to be paid (in w ords)

2. The Borrow er certif ies and agrees as follow s:

3. Payment Instructions:A. Payee's Name and Address

Payee's NamePayee's Address

B. Name and Address of Payee's Bank and Account No.Bank NameBank AddressPayee's Account No.SWIFT Code

C. Correspondent Bank (If Payee’s Bank is not located in the Country whose currency is claimed, enter the name and address of their bank’s correspondent in the country whose currency is to be paid.)

Bank NameBank AddressAccount No. of Payee's BankSWIFT Code

D. Special Payment Instructions and Other References

4. This application consists of ____ pages including ____ pages of Summary Sheets.From:

Signature of Authorized Representative(s)

Printed Name/Position/Title of Authorized Representative(s)

ADB Loan No.

Name of Borrow er

------------------------

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippines

a. the said amount is required for payment of eligible expenditures as described in the attached Estimate of Expenditures Sheet(s) from ___________________ (date/month/year) to ___________________ (date/month/year).b. any advances by the Asian Development Bank (ADB) to the Imprest Fund may be limited to a sum smaller than the amount requested for advances or replenishment, allow ing the Fund to be gradually reduced and fully documented prior to loan closing date. c. the undersigned has not previously w ithdraw n or applied for w ithdraw al of any amounts from said Loan Account nor obtained or w ill obtain any loan, credit, or grant for the purpose of fully or partially meeting the expenditures described in the Estimate of Expenditures Sheet(s) or Summary Sheet(s); d. the expenditures described in the attached Estimate of Expenditures Sheet(s) / Summary Sheet(s) are to be made for the purposes specif ied in the Loan Agreement and in accordance w ith its terms and conditions; ande. promptly w ithin 6 months after the payment(s), the undersigned w ill furnish proof satisfactory to ADB to liquidate and document the advance. f. for expenditures to be liquidated on the basis of a Statement of Expenditures (SOE), all authenticating documents w ill be retained in the location show n on the individual SOE Summary Sheet(s) and w ill be made available for review by auditors and ADB representatives upon request. g. as of the date of this application, there is no existing default under the Loan Agreement, the Project Agreement or the Guarantee Agreement, if any. h. if any funds w ithdraw n pursuant to this application are returned, the current value of such funds w ill be applied as credit to the Loan Account or, if the amount is small, applied to the next loan service payment due.

Attention: Loan Administration Division, Controller's Department (CTLA)

Appendix 12 52

Instructions for preparing the Withdrawal Application Form for Imprest Fund(ADB Form No. ADB-IFP)

General Instructions

1. Submit original Withdrawal Application Form (WA) to the Asian Development Bank (ADB) (or to its Resident/Regional Mission, if instructed). 2. Number WAs consecutively, not exceeding 5 digits or characters.3. For replenishment of advances, consolidate claims until the amount being withdrawn is at least US$100,000 equivalent or an amount advised by ADB.4. When the application is completed, verify completeness of supporting documentation and accuracy of details before passing to the Authorized Representative(s) for signature. Mistakes and omissions result in delayed payment.

Withdrawal References

1. Date: Enter the date WA is signed by Authorized Representative(s), not the date it was prepared.2. Loan Number: Show ADB loan number clearly.3. Application Number: Number WAs consecutively. If the project has more than one executing agency (EA) or implementing agency, the project coordinator should assign an alpha identification for each EA. For example: A0001 to A9999 for EA no. 1 and B0001 to B9999 for EA no. 2.4. Type of Disbursement: Indicate in the appropriate box the type of WA claim, whether for Initial Advance/Increase in Ceiling, or Replenishment.

Estimate of Expenditures Sheet (ADB Form No. ADB-IFP-EES)

For Initial Advance:

1. Provide all details as required in form ADB-IFP-EES. Estimated expenditures should normally be based on the amount of contracts awarded and to be awarded . Estimated expenditures should not exceed the contract amounts.2. For expenditures related to operational costs, the amount should be linked to the Project’s annual budget provision.3. No supporting documents are required.

For Replenishment:

1. In addition to 1 and 2 above, before submitting the WA, submit contracts and procurement documents to ADB's Project Division concerned (contracts exceeding US$100,000).2. Where the Statement of Expenditures (SOE) is not allowed, submit all evidences of payment, invoices, bills of lading, or work certificates. The requirements are the same for reimbursement procedure.3. In all cases, attach bank statement from the bank maintaining the imprest fund and the bank reconciliation of the imprest fund account.

Payment Instructions

1. Payee’s Name and Address: Indicate full name and address of Payee for identification of payment.2. Name and Address of Payee’s Bank and Account No.: Indicate full name and address of the Payee’s bank, which may include a banker/branch designation. Account number is important. Give SWIFT code if Payee’s bank is a member of SWIFT.3. Correspondent Bank: Where payment is to be made to a bank not located in the country of the currency to be paid, indicate its full name and address. Provide SWIFT code if the bank is a member of SWIFT.4. Special Payment Instructions: Indicate any particulars, special instructions or references to facilitate payment or identification of payment.5. Name of Borrower: Fill in the name as it appears in the Loan Agreement.6. Authorized Representative(s): Pass this application only to Authorized Representative(s) for signature. Verify if the list of Authorized representative(s) has been changed.

Appendix 12 53

ESTIMATE OF EXPENDITURES SHEET

ADB Loan No.: Application No.: Date:

Category No.: Estimate Sheet No.: a

Contract Contract Description of Goods Contract Estimated Amount Exchange Estimated AmountNo. Date and Services Amount of Expenditures b Rate in US$ Equivalent

Total this pageFrom previous pageTotal estimated expendituresPercentage of expenditures to be f inanced by ADBAmount eligible for ADB financingAccount balanceAmount request

Borrow er: By: (Authorized Representative Name and Signature)

(Position / Title of Authorized Representative)

ADB Form No. ADB-IFP-EES Revised January 2007

No t es: a A separate Estimate of Expenditure Sheet should be used for each category. b Refer to terms of payment for each contract and indicate the amount needed in the currency of expenditure. The amount in this column should not exceed the corresponding amount in the column "Contract Amount."

Appendix 12 54

Application Number _____________ With (Bank) ____________________________Account Number _______________ Bank Address __________________________

1 PRESENT OUTSTANDING AMOUNT ADVANCEDTO THE IMPREST ACCOUNT NOT YET RECOVERED US$ X,XXX,XXX.XX

2 BALANCE of Imprest account as of ________________ US$ XXX, XXX.XXper bank statement (copy attached)

3 ADD: Amount of eligible expenditures claimed in attachedapplication (WA no.___________) US$ XXX, XXX.XX

4 ADD: Amount claimed in previous applications not yet credited at date of bank statement US$ XXX, XXX.XX

Withdrawal Application No. AmountXXXXX US$ XXX, XXX.XXXXXXX US$ XXX, XXX.XXXXXXX US$ XXX, XXX.XX

5 TOTAL expenditures withdrawn from Imprest account but not yetclaimed for replenishment

a. Second Generation Imprest Accounts (SGIA) 1

a.1 Total SGIA balance accounted for PIU#1 _________ US$ XXX, XXX.XXa.2 Total SGIA balance accounted for PIU#2 _________ US$ XXX, XXX.XXa.3 Total SGIA balance accounted for PIU#3 _________ US$ XXX, XXX.XXa.4 Total SGIA balance accounted for PIU#4 _________ US$ XXX, XXX.XXa.5 Total SGIA balance accounted for PIU#5 _________ US$ XXX, XXX.XX

Total SGIA balances accounted for US$ XXX, XXX.XX

b. Transfer in transit US$ XXX, XXX.XX

c. Petty cash balance US$ XXX, XXX.XX

d. Unliquidated expenses (itemize expenses) US$ XXX, XXX.XX

e. Others (Please specify) US$ XXX, XXX.XX

US$ XXX, XXX.XX

6 TOTAL ADVANCE ACCOUNTED FOR US$ X,XXX,XXX.XX

1 List all existing SGIAs with corresponding amount advanced. Attach latest Second Generation Imprest Account Reconcilation Statements (SGIARS) and bank statements.

IMPREST ACCOUNT RECONCILIATION STATEMENT (IARS)LOAN/GRANT/NO._____________

Explanation of any discrepancy between totals appearing in lines 1 and 6 above (e.g., earned interest credited to the account, bank charges, etc.):

Authorized Representative

Appendix 12 55

Appendix 11 55

Date ADB Loan No.

To: Application No.

Attached are the Summary Sheets and the supporting documents (if any) for expenditures in the sum of:

Currency Amount (in f igure) Amount (in w ords)

incurred under the Loan Agreement of the Asian Development Bank. Please liquidate against previous advance(s).

Description of Goods and Services:

Category Description Amount

Total

Note : Separate Summary Sheet should be used for each category.

Name of Borrow er

Printed Name/Position Title of Authorized Representative(s)

LIQUIDATION OF ADVANCE

Signature of Authorized Representative(s)

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippines

Attention: Loan Administration Division, Controller's Department (CTLA)

Appendix 13 56

Appendix 11 56

Guidelines for Calculating Project Progress A. Introduction 1. To ensure that all implementation activities are reflected in measuring implementation progress against the project implementation schedule, the term "physical completion” in the Grant Assistant Report has been changed to "project progress.” 2. Physical and pre-commencement activities are considered in calculating project implementation progress. These activities, which may include recruitment of consultants, capacity building, detailed design, preparation of bid and prequalification documents, etc., could constitute a significant proportion of overall implementation and therefore should be counted. 3. Each activity in the implementation schedule will be weighted according to its overall contribution (using time as a reference) to progress of project implementation. These weights will then be used to calculate the percentage of project progress along the entire time span of the project. This is to provide a holistic view of the pace of implementation. B. Framework for Compiling Activity List and Assigning Weights 4. As implementation activities (with corresponding weights) will vary in terms of project, and project officer will be responsible for incorporating them in the Grant Implementation Manual. The actual project implementation progress of these activities should be reported regularly through the EA’s quarterly project progress report. To ensure ADB-wide consistency, the following framework has been established.

1. Compilation of Activity List 5. Project officer will identify and include major implementation activities in the implementation schedule which is attached as an appendix in the Grant implementation schedule. The implementation schedule should follow the critical path of the project’s major activities in project implementation taking account of various project constraints.

2. Assignment of Weights 6. Corresponding weights for each activity should be assigned to ensure that “project progress" measures the percentage of achievement (nonfinancial except when the project has credit components) for all events during the entire duration of the implementation schedule. To avoid disproportionate assignment of weights, to the extent possible these should be evenly distributed along the implementation schedule. When activities are concurrent, avoid “double counting.”

3. Computation of Project Progress

7. Once all activities are identified and corresponding weights assigned, project progress should be calculated using the following steps: (i) Determine the actual percentage progress (non-financial) of each activity. (ii) Multiply these percentages by the assigned weight of each activity to arrive at the weighted progress. (iii) Add the resulting weighted progress of all activities to determine the project progress.

The percentage of project progress by weighted activity should then be plotted in a figure and compared with disbursement and time elapsed since grant effectiveness.

Appendix 13 57

Appendix 11 57

Sample Table for Calculating Weighted Project Progress

Appendix 13 58

Appendix 11 58

Computation Percentage of Grant Implementation Progress

No. Description Weight (a)

Progress (b)

Weighted Progress

(a)/(b) I

Component A: Safe and Child-Friendly Learning Environments

975,354 (40%)

II

Component B: Teaching and School Leadership Capacity Building

61,289 (30%)

III

Component C: Sustainable Partnerships with Communities and Civil Society

224,623 (15%)

IV

Component D: Project Management, Monitoring, and Impact Evaluation

165,186 (15%)

V Contingencies 73,548

Total weight and progress

1,500,000

(100%)

Appendix 14 59

Appendix 11 59

JAPAN FUND FOR POVERTY REDUCTION (JFPR)

GRANT STATUS REPORT

(Note: To be received by OCO within one month after the end of the reporting period)

A. Basic Grant Data DMC: Grant Number: Name of Grant:

Approved Grant Amount: $

Responsible Project Officer and Division {name, position, e-mail, phone}:

Grant Commencement Date (Date LoA was signed):

Original Closing Date / Revised Closing date (after extension):

Executing Agency {Names, Address, Contact Persons, E-mail, Phone, Fax}:

Implementing Agency(ies) {Names, Address, Contact Persons, E-mail, Phone, Fax}: B. Grant Status Period of Reporting {date from/to}:

Date when this report was prepared:

General Status (Summary)

A B C D E8

Specify:______________________________

Grant Development Objective:

Grant Components

Targeted/Expected Output

Physical Accomplishments

Notes - Remarks:

(%) Rating9

(HS,S,PS,U)

8 A = Financially Closed; B = Implementation already started or is ongoing; C = LOA signed but implementation has not started yet;

D = ADB Approved but LOA not yet signed; E = Others, (please briefly specify, e.g. extension, or issues that need to be flagged)

9 HS=Highly Satisfactory, S=Satisfactory, PS=Partly Satisfactory, U=Unsatisfactory

Appendix 14 60

Appendix 11 60

C. Grant Utilization

Grant Committed: $

Cumulative Disbursements: $

Balance: $

Notes - Remarks:

Annual Disbursements (from ADB to Grant Accounts):

1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.

Projected: $ $ $ $

Actual: $ $ $ $

Procurement of Goods and Services:

Goods

Services

Notes - Remarks:

No. of contracts

Total Amount

No. of Contracts

Total Amount

Contracts Awarded:

Outstanding Contracts:

D. Major Issues / Problems {please add extra sheet if necessary}

Problems / Issues Action Taken / Proposed

Prepared By: Name / Division / Signature Comments

Project Officer:

Cleared By: Name / Division / Signature Comments

Appendix 14 61

Appendix 11 61

1. Director General:

2. Director:

Appendix 15 62

Appendix 11 62

SUGGESTED FORMAT FOR OTHER PROGRESS REPORTS

Quarterly Progress Report Guidelines

A. Introduction and Basic Data Provide the following: • ADB grant number, project title, borrower, executing agency(ies), implementing agency(ies); • Total estimated project cost and financing plan; • Status of project financing including availability of counterpart funds and cofinancing; • Dates of approval, signing, and effectiveness of ADB grant; • Original and revised (if applicable) ADB grant closing date and elapsed grant period based

on Original and revised (if applicable) grant closing dates; and • Date of last ADB review mission. B. Utilization of Funds (ADB Grant, Cofinancing, and Counterpart funds) Provide the following: • Cumulative contract awards financed by the ADB grant, cofinancing, and counterpart funds

(commitment of funds to date), and comparison with time-bound projections (targets); • Cumulative disbursements from the ADB grant, cofinancing, and counterpart funds

(expenditure to date), and comparison with time-bound projections (targets); and • Reestimated costs to completion, need for reallocation within ADB grant categories, and

whether an overall project cost overrun is likely. D. Project Scope Provide the following: • An assessment of the likelihood that the immediate development objectives (project

purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements;

• An assessment of changes to the key assumptions and risks that affect attainment of the development objectives; and

• Other project developments, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives.

D. Implementation Progress

Provide the following: • Assessment of project scope/implementation arrangements compared with those in the

Grant Assistance Report, and whether major changes have occurred or will need to be made;

• information relating to other aspects of the EA’s internal operations that may impact on the implementation arrangements or project progress;

• progress or achievements in implementation since the last progress report; • assessment of the progress of each project component, such as, recruitment of consultants

and their performance; • procurement of goods and works (from preparation of detailed designs and bidding

documents to contract awards);

Appendix 15 63

Appendix 11 63

• the performance of suppliers, manufacturers, and contractors for goods and works contracts;

• assessment of progress in implementing the overall project to date in comparison with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets.

E. Compliance with Covenants

Provide the following: • the Government's compliance with policy grant covenants such as sector reform initiatives

and EA reforms, and the reasons for any noncompliance or delay in compliance; • the Government's and EA’s compliance with financial grant covenants including the EA’s

financial management, and the provision of audited project accounts or audited agency financial statements; and

• the Government's and EA’s compliance with project-specific grant covenants associated with implementation, environment, and social dimensions.

F. Major Project Issues and Problems • Summarize the major problems and issues affecting or likely to affect implementation

progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues

Appendix 15 64

Appendix 11 64

Quarterly Report Template Enhancing Access to Quality Early Childhood Education Services for Children in Poor

Communities 1. Introduction JFPR Grant Number: 9161-PHI Grant Amount: US$ 1.5 million Estimated Project Cost: USD ($)3.543 million Date of Grant Effectiveness: Project Implementation Period: Time Elapsed Since Grant Effectiveness: Overall Implementation Progress: ___% Date of Last ADB Review Mission: Project Expenditures by Quarter: JFPR: US$ Government Contribution: US$ Q1 (JFPR): $___ Q2 (JFPR): $___ Continue for all project quarters Total: US$ Project Scope: Summary of Project Progress:

2. Project Organization and Management

Implementation Arrangements:

Establishment of PIU: Organization and Staffing of PIU:

3. Assessment of Implementation Progress

Assessment of progress made during the reporting period (by project component) Component A: Component B: Component C: Component D: Problems encountered and remedial actions taken or proposed to be taken: Proposed program of activities during the next quarter: Modifications to proposed implementation schedule: Percentage of implementation progress, time elapsed and disbursement: 4. Consultant Recruitment and Performance:

Summary of status of recruitment of consultants:

Appendix 15 65

Appendix 11 65

Details of consultants’ inputs and general performance:

Performance

Position Main Inputs Highly Satisfactory Satisfactory Not

Satisfactory

Repeat rows as necessary

5. Procurement of civil works, equipment and materials

List contract packages, indicating the following: a) procurement procedures to be used: b) value of contracts (estimate): c) specifications:

Status of preparation of prequalification bid/documents:

Schedule of advertising of prequalification, bid invitations: Prequalification/bid evaluation: Status of contract awards:

6. Implementation of Physical Works

Physical progress of each civil work contract: Estimated completion of each civil work: Performance and Efficiency of Contractor(s) and Quality of Work: Land Use and Resettlement: Information on Initial Environmental Examination:

7. Operation and Maintenance of Project Facilities

Status of implementation of O& M: Development of O&M manuals and on-the-job training for O&M: Equipment for O&M: Budget for O&M:

8. Training, Survey and Capacity Building Programs

Summary of training activities and participation: Training courses undertaken during the quarter, with costs, etc: Training courses schedules for next quarter: Survey and planning activities:

9. Community Participation

Appendix 15 66

Appendix 11 66

Summary of community workshops, activities and community stakeholder training and community involvement in the project design and O&M of project supported facilities:

10. Administration and Finance

Budget allocations and counterpart funding arrangements (attached schedule of counterpart funds allocated and disbursed during the period, with projections for the next quarter: Project disbursements: Financial position Status of imprest fund account:

11. Monitoring and Evaluation (M&E)

Status and establishment of the project’s M&E system: Status of establishment of baseline conditions: Status of data collection, analysis collection: Reports submission:

12. Compliance with Grant Covenants/Government Assurances

Major covenants and status of compliance: Government assurances and status of progress: 13. Consulting services utilized

14. Outcome of activities undertaken during this reporting period:

a. Training b. Infrastructure c. Gender Action Plan Activities d. Others

15. Amount of funds liquidated during the period:

a. Project funds b. Matching government funds

16. PCU financial position:

a. Status of imprest account b. Total expenditure ( from SOE) for the reporting period c. Projected budgetary expenditure for next quarter

17. Subcontracts and partnerships: 18. Difficulties encountered and lessons learned: 19. Requests and recommendations for next quarter: 20. Other issues

Appendix 15 67

Appendix 11 67

21. List of attachments: a. Percentage of Project Progress by Weighted Activity b. Record of Training & Workshops c. Semi-annual Work plan with Percentage of Output Targets Achieved: d. Name of PIU personnel and project consultants e. List of subcontracts awarded f. Statement of Expenditure (SOE)

Prepared by: Approved by:

Appendix 16 68

Appendix 11 68

PLANNING AND REPORTING TEMPLATES

AGAPP

Japan Fund for Poverty Reduction: Enhancing Access to Quality Early Childhood Education Services for Children in Poor Communities

(add DepED, AGAPP and JFPR logos)

Project Activity Proposal

Title of Activity: Date(s): Objective/Justification: Location: Implementing personnel/partner: Participants: Methodology: Budget: Subcontract: Remarks: List of attachments:

a. detailed budget b. schedule/agenda c. other attachments as appropriate

Recommendations/actions: Prepared by: Approved by:

Appendix 16 69

Appendix 11 69

AGAPP Japan Fund for Poverty Reduction: Enhancing Access to Quality Early Childhood

Education Services for Children in Poor Communities

(add DepED, AGAPP and JFPR logos)

Project Activity Report

Title of Activity: Date(s): Location: Implementing personnel/partner: Methodology: Outcome: Lesson learned: Actual budget expenditures: Subcontract: Remarks: Attachments:

a. Detailed list of expenditures b. list of participants in workshops c. related technical materials/notes d. others (list as appropriate)

Recommendations/follow-up actions: Prepared by: Approved by:

Appendix 17 70

Appendix 11 70

ASIAN DEVELOPMENT BANK

Southeast Asia Department Social Sector Division

[Date]1

[The Borrower] Dear Sir or Madam: Subject: [Loan No. and Project Title]

FINANCIAL REPORTING AND AUDITING REQUIREMENTS This letter is to ensure your timely compliance with the loan covenants and the quality of financial information as required by ADB. ADB's Handbook for Borrowers on the Financial Governance and Management of Investment Projects Financed by the ADB (the Booklet) is enclosed to guide you. ADB, by its Charter, is required to ensure that the proceeds of any loan made, guaranteed, or participated in by ADB are used for the purposes for which the loan was approved. ADB requires accurate and timely financial information from its borrowers to be assured that expenditure was for the purposes stated in the loan agreement. For this particular loan, the requirements are stipulated in sections _____2 and _____3 of the Loan Agreement of ______________ between ADB and [the Borrower] and sections ______4 and _____5 of the Project Agreement6 of _____________ between ADB and [name of the EA].7 Copies of the Loan/Project Agreements are enclosed for onward transmission by your office to your EA and the auditor(s), together with a copy of this letter. The following are the main requirements:

ADB requires the EA to maintain separate project accounts and records exclusively for the Project to ensure that the loan funds were used only for the objectives set out in the Loan or Project Agreements. The project accounts comprise the following:8

- -

- The first set of project accounts to be submitted to ADB covers the fiscal year ending ________________. As stipulated in the Loan or Project Agreements, they are to be submitted up to _________________ months after the end of the fiscal year. For this loan, the deadline is by _________________. A sample report format with explanatory notes, is attached as Annex A.

The accounts and records for the project are to be consistently maintained by using sound accounting principles. Please stipulate that your external auditor is to express an opinion on whether the financial report has been prepared using international or local generally accepted accounting standards and whether they have been applied consistently.

Appendix 17 71

Appendix 11 71

ADB prefers project accounts to use international accounting standards prescribed by the International Accounting Standards Committee. Please advise your external auditor to comment on the impact of any deviations, by [name of the Executing Agency] from international accounting standards.

Please ensure that your external auditor specifies in the Auditor's Report the appropriate auditing standards they used, and direct them to expand the scope of the paragraph in the Auditor's Report by disclosing the key audit procedures followed. Your external auditor is also to state whether the same audit procedures were followed for all supplementary financial statements submitted.

ADB wishes that auditors conform to the international auditing standards issued by the International Federation of Accountants. In cases where other auditing standards are used, request that your external auditor to indicate in the Auditor's Report the extent of any differences and their impact on the audit.

The external auditor's opinion is also required on whether

the proceeds of the ADB's loan have been utilized only for the project as

stated in the Loan Agreement; the financial information contains data specifically agreed upon between

[name of the Borrower or EA] and ADB to be included in the financial statements;

the financial information complies with relevant regulations and statutory requirements; and

compliance has been met with all the financial covenants contained in the Loan or Project Agreements.

The Auditor's Report is to clearly state the reasons for any opinions that are qualified, adverse, or disclaimers. Actions on deficiencies disclosed by the external auditor in its report are to be resolved by [name of Borrower or Executing Agency] within a reasonable time. The external auditor is to comment in the subsequent Auditor’s Report on the adequacy of the corrective measures taken by [name of Borrower or EA].

Compliance with these ADB requirements will be monitored by review missions and during normal project supervision, and followed up regularly with all concerned, including the external auditor.

Yours sincerely,

Director Social Sectors cc: (EA) (External auditor of the Borrower or EA)

Appendix 17 72

Appendix 11 72

1 The audit letter, with the loan and project agreements, is sent to the borrower when the auditor has been appointed or when the agreements are sent by the program department to the Ministry of Finance or other authority of the borrower.

2 Specify section no. in the loan agreement on maintaining project accounts and records. 3 Specify section no. in the loan agreement on the audit requirements. 4 Specify section no. in the project agreement on maintaining project accounts and records. 5 Specify section no. in the project agreement on the audit requirements. 6 If there is a project agreement. 7 When more than one project agreement, provide similar information. 8 Listed are standard accounts required from nonrevenue-earning entities. Try to identify specific titles

of financial statements expected to be submitted by the Borrower and EAs. For revenue-earning entities, the submissions consist of the entities’ audited financial statements. For nonrevenue-earning entities, the submissions consist of audited project accounts.

Appendix 17 73

Appendix 11 73

Model Audit Opinion for a Non-Revenue-Earning Project To: Borrower (or designated agency)

We have audited the accompanying financial statements (pages ___ to___ ) of the __________ Project financed under the Asian Development Bank Loan # ________as of December 31, 20__, and for the year then ended.

These financial statements are the responsibility of the management of the _________EA.

Our responsibility is to express an opinion on the accompanying statements based on our audit. We conducted our examination in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of misstatement. Our audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audit also includes assessing the accounting principles and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion.

The ____ (EA’s) policy is to prepare the accompanying statements in the format agreed between the Asian Development Bank and the Government of _________as noted in the Minutes of Negotiations for the Loan, [on a cash receipts and disbursements basis in which cash is recognized when received and expenses are recognized when paid, rather than when incurred] / [on an accruals basis in which expenses are recognized when incurred and revenue is reported when income is due.]

In our opinion, (A) the aforementioned financial statements and appended notes that were also the subject of the audit, fairly present in all material respects the financial position of the _________ project as at__________20__and the results of its operations for the year ended _________ 20__, in conformity with _____________accounting standards, applied on a basis consistent in all material respects with that of the previous year; (B) the [Borrower] [EA] has utilized all proceeds of the loan withdrawn from the Asian Development Bank only for purposes of the Project as agreed between the Asian Development Bank and [the Borrower] in accordance with the Loan Agreement; and no proceeds of the loan have been utilized for other purposes; and (C) the [Borrower] [EA] was in compliance as at the date of the balance sheet of the year of audit with all financial covenants of the Loan Agreement.

In addition:

(a) (1) With respect to Statements of Expenditures, adequate supporting documentation has been maintained to support claims to the Asian Development Bank for reimbursements of expenditures incurred; and (2) which expenditures are eligible for financing under Loan Agreement No.______ .

(b) (1) The Imprest Accounts (page____ ) give a true and fair view of the receipts collected and payments made during the year ending _____ ; and (2) these receipts and payments support Imprest Account liquidations/replenishments during the year.

[(a) and (b), above, are to be provided where the Loan Agreement requires separate Imprest Account and Statement of Expenditures audits and audit opinions.]

Appendix 18 74

JAPAN FUND FOR POVERTY REDUCTION (JFPR) IMPLEMENTATION COMPLETION MEMORANDUM (ICM)10

Background Information A. Objective and Scope 1. The main objective of a JFPR Implementation Completion Memorandum (ICM) is to learn from the experiences of the Recipients, executing agencies (EAs), implementing agencies (IAs) and ADB in implementing grants, and to use the lessons learned to improve the performance of ongoing and future ADB-financed projects in poverty reduction. The ICM will also be used as a measure of ADB’s development effectiveness and as an input to country strategy formulation. An ICM

• evaluates the rationale for the JFPR; adequacy of preparation; appraisal and design; implementation arrangements; and performance of the recipient, EA, IAs and ADB, including how problems were handled, whether they were foreseen as potential risks, and the adequacy of the solutions adopted during implementation;

• provides a preliminary evaluation of achievements of the immediate objectives (purpose) and the impact and contribution to the overall objectives (goal);

• provides a preliminary evaluation of the sustainability of the grant interventions and benefits; and

• makes recommendations—based on the evaluation and lessons learned—for dissemination and scaling-up of the grant interventions for future ADB operations.

B. Timing and Preparation of ICM 2. An ICM is prepared within six months after Grant Closing Date11

.

3. The Recipient (EA and/or IA) first prepares the ICM for self-evaluation and also helps with the preparation of ADB’s section of the ICM. If the Recipient’s contribution of the ICM is delayed and the grant implementation is considered complete, the division/country director concerned may, after consultation with the latest review mission and responsible project staff, decide to proceed with preparing ADB’s part of the ICM in the absence of the recipient’s section of the ICM. 4. When the grant implementation is approaching completion, an ADB review mission should agree with the Recipients on the outline and timing for the Recipient’s section of the ICM. Assistance in preparing the Recipient’s section of the ICM is usually a part of the terms of reference of the grant implementation unit (GIU). C. Length and Content of ICMs

10 Policy and procedures are based on the JFPR guidelines, topic 29, in combination with the principles of PAI

6.07 - Grant Completion Report for ADB Loans. 11 Grant Closing Date is the date when all implementation, consolidation and other related physical activities end,

as shown in the JFPR Grant Proposal and the Letter of Agreement, up to a maximum of four years after JFPR grant effectiveness, including extensions.

Appendix 17 75

5. Staff of the unit administering the grant (sector division, regional department or resident mission) must ensure that any problems or issues that arose during grant implementation are recorded in the ICM. Grant status reports and back-to-office reports (BTORs) prepared during preparation and implementation will provide the input for this. Such issues or problems should not go unnoticed and thus lessons ignored. Therefore, all ICMs are to be detailed. Appendixes are limited to those that are essential for explaining the text. 6. An ICM is kept concise by

• concentrating on analyzing grant inputs and activities, implementation arrangements, costs, outputs, and impacts;

• focusing on the principal determinants of performance; • using condensed analytical tables and supporting appendixes; • using cross-referencing to source documents; and • avoiding repetition.

D. Intended Use of the Implementation Completion Memorandum (ICM) 7. ICMs are intended for use by and will be circulated to the

• The Government of Japan • Directors General and Directors of relevant departments, Divisions and offices; • Country director, RM concerned; and • Recipients, concerned DMC agency, executing and implementing agencies.

Implementation Completion Memorandum

Project Number: {XXXXX} {Loan } Number: {XXXX} {Month Year}

{Short Country Name}: {Project or Program Title} (Financed by the Japan Fund for Poverty Reduction)

JAPAN FUND FOR POVERTY REDUCTION (JFPR) IMPLEMENTATION COMPLETION MEMORANDUM (ICM)1

I. BASIC INFORMATION

1. JFPR Number and Name of Grant:

2. Country (DMC): 3. Approved JFPR Grant Amount: $

4. Grant Type: Project / Capacity Building

5-A. Undisbursed Amount $

5-B. Utilized Amount $

6. Contributions from other sources {convert in-kind contributions into US$}

Source of Contribution: Committed Amount Actual Contributions: Remark - Notes:

DMC Government $ $

Other Donors (please name) $ $

Private Sector $ $

Community/Beneficiaries $ $

7-A. GOJ Approval Date: 7-B. ADB Approval Date: 7-C. Date the LOA was signed (Grant Effectiveness Date):

8-A. Original Grant Closing Date: 8-B. Actual Grant Closing Date:

8-C. Account Closing Date:

9. Name and Number of Counterpart ADB (Loan) Project:

10. The Grant Recipient(s): {Names, address, contact persons, e-mail, phone, fax numbers of the agency(ies) and/or institutions that signed the Letter of Agreement with ADB}

11. Executing and Implementing Agencies: {Names, Address, Contact Persons, E-mail, Phone, Fax}

II. GRANT PERFORMANCE ASSESSMENT

1 The ICM has to be prepared under responsibility of the ADB Project Officer with contributions from the

Recipient, EA/IAs, and the grant project manager/coordinator at the PIU.

12. Description (Background rationale): {Extract information on background and rationale from the approved JFPR Grant Proposal and summarize}

13. Grant Development Objective and Scope: {Briefly describe the Grant Development Objectives (purpose) and scope (outputs and activities). Assess the relevance of the Grant design (including appropriateness of objectives, components, implementation arrangements and schedule) and formulation (including extent of stakeholders’ participation and ownership)}

14. Key Performance Indicators {list each original indicator as mentioned in the

approved JFPR Grant Proposal}

{rate the accomplishments, describe any changes and evaluate each indicator for its relevance,

achievements and sustainability}

i)

ii)

12 HS=Highly Satisfactory; S=Satisfactory; PS=Partly Satisfactory; U=Unsuccessful

iii)

iv)

v)

15. Evaluation of Inputs (Adequacy of formulation, terms of references, inputs and performance of the Recipient(s), EA, IA(s), NGOs and ADB, performance of consultants, other inputs, review missions):

{Evaluate, among others: (i) The economy of input provision (the relative cost of input provision); (ii) the productivity of the inputs (conversion into outputs); (iii) the quality of the inputs; (iv) reasons for deviating from planned inputs and activities; (v) client satisfaction with the inputs provided; (vi) the performance of ADB, the Recipient, the EA, IA(s) and NGOs as highly satisfactory (HS), satisfactory (S), partly satisfactory (PS), or Unsatisfactory (U); (vii) any other inputs.}

b. 16. Evaluation of Outputs and Results (Reports generated, institution building, training, analysis of quality, comparison with terms of references, sustainability and exit strategy):

{Evaluate performance issues, such as (i) efficiency in the production of outputs (cost and process); (ii) effectiveness or efficacy (compare actual to planned results); (iii) quality of outputs (refer to qualitative benchmarks where possible); (iv) recipient and client (beneficiaries) satisfaction with the outputs/ results; (v) timeliness of delivery of outputs; and (vi) effectiveness of the exit strategy and related transfer of activities for sustainability.}

17. Overall Assessment and Rating (HS,S,PS,U):

{Provide an overall assessment including the issues of sustainability, and categorize the Grant activities as highly successful (HS), successful (S), partly successful (PS), or unsuccessful (U) following OED’s guidelines.}

18. Major Lessons Learned: {Discuss the significant lessons learned that can help improve the formulation and implementation of similar JFPR grant investments and as an input for recommendations and for scaling-up the pilot interventions under this Grant, particularly in relation to the overall objective of poverty reduction.}

19. Recommendations and Follow-up Actions: {Include project-specific and general recommendations (scaling up) of any interventions, activities and action required, and make suggestions for changes to policies and strategies that can improve the effectiveness of the counterpart loan, future JFPR grants, and/or that can generally be applicable to ADB practices.}

20. Additional Remarks, Comments and Suggestions:

{Present here any additional remarks, comments and suggestions that have not been dealt with or mentioned in earlier paragraphs, but which may contribute to this memorandum.}

. III. PREPARATION AND APPROVAL

Prepared by: Name of Person and designation / Name of Institution / Signature . Date

1. Representative from the Recipient:

2. Manager, JFPR-GIU13

:

3. Project Officer, ADB: {the Project Officer consolidates the inputs from the Recipient and the PIU}

Approved Name of Person and designation / Name of Institution / Signature

1. Director General, Department, ADB:

2. Division/Country Director, ADB:

3. Head of the Recipient:

4. Head of the Executing Agency:

13 GIU=grant implementation unit (formerly called PIU=project implementation unit)

5. Head of Implementing Agency:

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LINKS TO RELEVANT PROJECT ADMINISTRATION DOCUMENTS

1. Procurement Guidelines: http://www.adb.org/Documents/Guidelines/Procurement/default.asp 2. Guidelines on Use of Consultants by ADB and Its Borrowers http://www.adb.org/Documents/Guidelines/Consulting/default.asp In Vietnamese http://www.adb.org/Documents/Translations/VietNamese/Guidelines-Consultants-vn.pdf 3. Templates for engagement of consultants: ( including submission templates) http://www.adb.org/Consulting/loan-rfp.asp 4. Harmonized RFP (Loans) http://www.adb.org/Consulting/all-methods-loan.asp 5. Sample Individual consultant contract http://www.adb.org/Consulting/ICS-Contract-Loan.pdf 6. Consulting Services Operations Manual http://www.adb.org/Documents/Manuals/Consulting-Services-Operations-Manual/CSOM.pdf 7. Toolkits and Templates for Consultants: http://www.adb.org/Consulting/toolkit-template.asp 8. User's Guide ( Procurement of Goods) http://www.adb.org/Documents/Manuals/Bidding_Documents/Goods/SBD-Goods-Users-Guide.pdf 9. User's Guide (Small Civil Works - below 10 Mln USD) http://www.adb.org/Documents/Manuals/bidding_documents/prequalification/SBDWorks-sml-UserGuide.pdf 10. Guide on Bid Evaluation www.adb.org/Procurement/guide-bid-apr06.pdf 11. Procurement Plans http://www.adb.org/Projects/reports.asp?key=reps&val=PP 12. Electronic Procurement http://www.mdbegp.org/www/eGPInteractiveus/tabid/69/language/en-US/Default.aspx 13. E-GP (Electronic Government Procurement) Toolkit http://www.mdbegp.org/www/eGPToolkitus/tabid/67/language/en-US/Default.aspx 14. Project Administration Instructions http://www.adb.org/Documents/Manuals/PAI/default.asp 15. E-Handbook on Project Implementation http://www.adb.org/Documents/handbooks/project-implementation/default.asp?p=proj 16. Anticorruption and Integrity http://www.adb.org/Integrity/default.asp 17. How to report fraud and corruption http://www.adb.org/Integrity/howto.asp

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GRANT COVENANTS

Reference Covenants 1 LOA, Clause 3 The Government and AGAPP shall carry out the JFPR Project

with due diligence and efficiency, in accordance with the arrangements described in the Grant Assistance Report, and as provided below

2 LOA, Clause 5 The Government and AGAPP shall make available, promptly as needed, the funds, facilities, services, equipment, land and other resources which are required, in addition to the funds to be provided under the JFPR Assistance (the JFPR Funds), for the carrying out of the JFPR Project.

3 LOA, Clause 6 Except as ADB may otherwise agree, AGAPP shall apply the JFPR Funds and any interest or the income earned on the imprest account to the financing of expenditures specified in the Grant Assistance Report

4 LOA, Clause 7 Except as ADB may otherwise agree, AGAPP shall ensure all goods, services and other items of expenditure financed out of the JFPR Funds are used exclusively in the carrying out of the JFPR Project.

5 LOA, Clause 8 The procurement by AGAPP of any goods and services (excluding consulting services) financed under the JFPR Assistance shall be carried out in accordance with the ADB Procurement Guidelines (2010, as amended from time to time). The engagement of any consulting services financed under the JFPR Assistance shall be carried out in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers (2010, as amended from time to time).

6 LOA, Clause 9 No local taxes or duties payable by public entities (whether the central government, any local government or any public institution) shall be financed under the JFPR Assistance

7 LOA, Clause 10 AGAPP shall maintain, or cause to be maintained, records and accounts adequate to identify the goods, services and other items of expenditure financed out of the JFPR Funds, to disclose the use thereof in the JFPR Project, and to record the progress of the JFPR Project (including the cost thereof).

8 LOA, Clause 11 (a) AGAPP shall (i) maintain or cause to be maintained, separate accounts for the JFPR Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the JFPR Funds, compliance with the financial covenants of this Letter of Agreement, and the operation of any imprest account and the

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application of any statement of expenditures (SOE) procedure authorized under the JFPR Project), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request. (b) AGAPP shall enable ADB, upon ADB’s request, to discuss AGAPP financial statements for the JFPR Project from time to time with the Government’s auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB.

9 LOA, Clause 12 The Government and AGAPP shall enable ADB’s representatives to inspect the JFPR Project, and the goods, services and other items of expenditure financed out of the JFPR Funds, and any relevant records and documents.

10 LOA, Clause 13 (a) The JFPR Funds shall not be disbursed by ADB after 15 September 2015, six months after the expected completion date of the JFPR project, or such other date as ADB may agree up to a maximum of four years from the date of this letter of agreement.

11 LOA, Clause 13 (b) AGAPP shall follow, or cause to be followed, procedures acceptable to ADB to facilitate disbursement of the JFPR Funds under the JFPR Project. These provisions shall include detailed arrangements to be agreed upon between AGAPP and ADB on applications for withdrawal, evidence of authority to sign such applications, evidence to support such applications, and sufficiency of such applications.

12 LOA, Clause 13 (c) AGAPP shall, establish, immediately upon its confirmation of this Letter of Agreement or such later date as ADB may agree, an imprest account at a commercial bank acceptable to ADB. The imprest account shall be established, managed, replenished and liquidated in accordance with ADB’s “Loan Disbursement Handbook” dated January 2007, as amended from time to time, and detailed arrangements agreed upon between AGAPP and ADB. The initial amount to be deposited into the imprest account shall be based on 6 months estimated expenditure to be funded from the imprest account or 10% of the grant amount, whichever is lower, as agreed between ADB and AGAPP.

14 LOA, Clause 13 (d) The statement of expenditures (SOE) procedure may be used for reimbursement of eligible expenditures for the JFPR Project and to liquidate advances provided into the imprest account, in accordance with ADB’s “Loan Disbursement Handbook” dated January 2007, as amended from time to time, and detailed arrangements agreed upon between the Government and ADB. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed an amount agreed upon by AGAPP and ADB. Any individual payment to be reimbursed of liquidated under the SOE procedure shall not exceed the ceiling amount of USD 10,000 per payment.

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15 LOA, Clause 14 (a) The Government through AGAPP shall furnish, or cause to

be furnished, to ADB all such reports and information as ADB shall reasonably request concerning (i) the use of the JFPR Funds; (ii) the goods, services and other items of expenditure financed out of the proceeds of the JFPR Funds; (iii) the JFPR Project; and (iv) any other matters relating to the purposes of the JFPR Assistance.

16 LOA, Clause 14 (b) Without limiting the generality of the foregoing, AGAPP shall furnish, or cause to be furnished, to ADB and the Government quarterly reports, as agreed by ADB, on the carrying out of the JFPR Project. Such reports shall be submitted in such form and detail as ADB shall reasonably request.

17 LOA, Clause 14 (c) Within three months after physical completion of the JFPR Project, the Government jointly with AGAAP shall prepare and furnish to ADB a report, in such form and detail as ADB shall reasonably request, on the accomplishment of the purposes of the JFPR Assistance.

18 LOA, Clause 15 The Government and AGAPP shall cooperate with ADB to ensure that the JFPR Project is carried out promptly and effectively, and for this purpose, shall issue appropriate instructions to its officials, agents and representatives.

19 LOA, Clause 16 The Government and ADB shall, from time to time, at the request of either party, exchange views on the JFPR Project, and consult on any reports prepared by consultants or others and the implementation of any recommendation made in those reports.

20 LOA, Clause 17 ADB may use any reports prepared by consultants for any purpose which ADB may consider appropriate, and those reports may be made public unless otherwise agreed by the Government and ADB.

21 LOA, Clause 18 The Government may at any time request ADB in writing to terminate the JFPR Assistance.

22 LOA, Clause 19 (a) ADB may at any time suspend or, after consultation with the Government, terminate the JFPR Assistance if any circumstances arise which, in the opinion of ADB, interfere or threaten to interfere with the successful implementation of the JFPR Project, the accomplishment of its purposes, or the execution of the JFPR Project in accordance with the terms and conditions of this Letter of Agreement.

23 LOA, Clause 19 (b) ADB may cancel the JFPR Assistance if implementation of the JFPR Project and related disbursements do not start within six months after the execution of this Letter of Agreement.

24 LOA, Clause 19 (c) ADB may cancel the JFPR Assistance if any ADB loan operations related to the JFPR Project are cancelled.

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25 LOA, Clause 19 (d) If at any time ADB determines, (i) after consultation with

the Government, that any amount of the JFPR Assistance will not be required for the purposes of the JFPR Project, or (ii) that corrupt, fraudulent, collusive or coercive practices, as determined by ADB, were engaged in by representatives of the Government or any beneficiary under the JFPR Project during the implementation of the JFPR Project or as part of the procurement or consultant selection, or the execution of a related contract, for the JFPR Project, without the Government having taken timely and appropriate action satisfactory to ADB to remedy the situation, or (iii) that the procurement of any goods and services, and recruitment of consultants to be financed out of the JFPR Assistance is inconsistent with the procedures set forth or referred to in this Letter of Agreement including the Annex, ADB may by notice to the Government terminate the right of the Government to make withdrawals from the JFPR Assistance. Upon the giving of such notice, the JFPR Assistance or the relevant portion thereof may be cancelled by ADB.

26 LOA, Clause 20 20. Upon completion of the JFPR Project, (i) any equipment financed under the JFPR Funds may be transferred by ADB to the Government or any agency designated by the Government on terms and conditions satisfactory to the Government and ADB, and (ii) any remaining balance in the imprest account, including interest of the income earned thereon will be returned to ADB.

27 LOA, Clause 21 21. ADB shall monitor the outcomes of the JFPR Project so that the results are fed back into the country’s poverty reduction operations.