Grant Assistance Proposal

Project Number: 44135-01 February 2011

Proposed Grant Assistance

Improving Gender-Inclusive Access to Clean and

Renewable Energy in Bhutan, Nepal, and Sri Lanka (Financed by the Japan Fund for Poverty Reduction)

ABBREVIATIONS

ADB – Asian Development Bank BPC – Bhutan Power Corporation CEB – Ceylon Electricity Board CSP – country strategy and program DOE – Department of Energy DMC – developing member country EA – executing agency EUC – electricity users cooperative kV – kilovolt kWh – kilowatt-hour ICTAD – Institute for Construction, Training, and Development IEC – information, education, and communication NCB – national competitive bidding NEA CRED – Nepal Electricity Authority Community Rural Electrification Department NGO – nongovernment organization O&M – operation and maintenance PIU – project implementation unit JICA – Japan International Cooperation Agency JFPR – Japan Fund for Poverty Reduction PPMS – project performance and monitoring system SAEN – South Asia Energy Division SAOD – South Asia Office of the Director General SARD – South Asia Department SHS -- solar home systems SOE – statement of expenditures

NOTES

In this report, "$" refers to US dollar

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Vice-President X. Zhao, Operations 1 Director General S. H. Rahman, South Asia Department (SARD)

Director Y. Zhai, Energy Division, SARD Team leaders F. Tornieri, Senior Social Development Specialist (Gender and

Development), SARD P. Van Houten-Castillo, Social Development Specialist, SAEN

Team members M. Khamudkhanov, Senior Energy Specialist, SAEN K. Ogino, Senior Energy Specialist, SAEN P. Wijayatunga, Senior Energy Specialist, SAEN S. Subba, Social Development and Gender Officer, Nepal Resident Mission N. Gunasekera, Social Development and Gender Officer, Sri Lanka Resident Mission

JAPAN FUND FOR POVERTY REDUCTION (JFPR)

JFPR Grant Proposal I. Basic Data

Name of Proposed Activity Improving Gender-Inclusive Access to Clean and Renewable Energy in Bhutan, Nepal, and Sri Lanka

Countries Bhutan, Nepal, Sri Lanka

Grant Amount Requested $3,000,000

Project Duration 3 years

Regional Grant Yes / No

Grant Type Project Capacity building

II. Grant Development Objectives and Expected Key Performance Indicators

Grant Development Objectives: The project aims to increase access for poor rural women to affordable and reliable clean and renewable energy sources and technologies by supplementing three current and future Asian Development Bank (ADB) energy projects in Bhutan, Nepal, and Sri Lanka. The project‘s outputs will be (i) the good practices it identifies for incorporating pro-poor and gender-inclusive provisions in energy sector policies, laws, and regulations in the developing member countries of the South Asia Department (SARD); (ii) the effective interventions it achieves to support gender-inclusive access to clean and renewable energy in the projects sites, which can then be replicated; and (iii) the data generated through the project performance and monitoring system (PPMS) on social and gender-equality results. The outcome will be more systematic integration of gender issues and approaches in the design of energy operations in all SARD DMCs. The project impact will be increased access to affordable and reliable clean and renewable energy sources and technologies for poor rural women

1.

Expected Key Performance Indicators: Expected key impact performance targets and indicators in the project areas include (i) reduced time and labor required for household chores, a 30% increase in time saving by women, and

30% increase in time spent by women on rest, relaxation, and learning activities (from 2010 baselines);

(ii) reduced amount of money spent by men and women to obtain energy supplies such as fuel wood and charcoal (from 2010 baseline);

(iii) increased income generation and a 30% increase in the number of women‘s and men‘s microenterprises using electrical appliances and technologies (from 2010 baseline); and

(iv) increased involvement of women in community decision making, with 10% of women in project communities involved in project activities.

III. Grant Categories of Expenditure, Amounts, and Percentage of Expenditures

Category Amount of Grant Allocated ($)

% of Expenditures

1. Training (for energy-related employment generation) and workshops

1,326,340 44.2

2. Equipment (for energy-related livelihoods) 375,425 12.5

3. Support to grid connection for the poor 520,000 17.3

4. Consulting services 453,100 15.1

5. Grant management 186,000 6.2

6. Contingencies 139,135 4.6

TOTAL 3,000,000 100.0

1 The project districts will be selected based on pro-poor and gender criteria, including (i) a high incidence of poverty,

low socioeconomic status, and gender indicators based on district and national data; (ii) limited opportunities to access electricity through grid connectivity or off-grid electrification; (iii) located in conflict-affected areas; and (iv) have already been mobilized through local and/or community-based structures and institutions.

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JAPAN FUND FOR POVERTY REDUCTION

JFPR Grant Proposal Background Information

A. Other Data

Date of Submission of Application August 8, 2010

Project Officers F. Tornieri, Senior Social Development Specialist (Gender and

Development)

P. Van Houten-Castillo, Social Development Specialist

Project Officers’ Division

E-mail, Phone

Office of the Director General, South Asia Department (SARD),

ftornieri@adb.org, +632 632 5983

Other Staff Who Will Need Access

to Edit and/or Review the Report

S. Subba, Social Development and Gender Officer, NRM;

N. Gunasekera, Social Development and Gender Officer, SLRM

Sector Energy

Subsectors Renewable energy

Theme Gender equity, environmental sustainability

Subthemes Gender equity in economic opportunities, eco-efficiency

Targeting Classification General intervention

Was JFPR seed money used to

prepare this grant proposal?

Yes ( ) No ( )

Have SRC comments been reflected

in the proposal?

Yes ( ) No ( )

Name of Associated ADB Financed

Operation

(i) Bhutan: Rural Renewable Energy Development Project,2

(ii) Nepal: Energy Access and Efficiency Improvement Project

(Phase 2),3 and

(iii) Sri Lanka: Sustainable Power Sector II Project4.

Executing Agency ADB through the South Asia Department (SARD)

Grant Implementing Agencies

(i) Components A and C: international nongovernment

organization (NGO).

(ii) Component B:

(a) Bhutan: Department of Energy (DOE), Renewable Energy

Division (RED), through its head (M. Gyeltshen, Tel. +975

2 334741); and Bhutan Power Corporation, through the

general manager, Distribution and Customer Service

Department (K. Dorjee, Tel. +975 2 325095-6);

(b) Nepal: Nepal Electricity Authority (NEA), Electrification

Group, through the General Manager (R. Yadav, Tel.

+977 1 4153158);

(c) Sri Lanka: Ceylon Electricity Board through the Additional

General Manager Region 2 (F.K. Mohideen, Tel. +94 11

2431598).

The international NGO will provide overall guidance to the

implementation of Component B-related activities.

2 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Grant to Bhutan for

Rural Renewable Energy Development Project. Manila (Grant 0228, approved on 29 October 2010). 3 ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loan and

Administration of Grants to Nepal Energy Access and Efficiency Improvement Project. Manila (L2587, approved on 21 October 2009, Phase 1 is ongoing) and Phase 2 of the Project is being prepared.

4 ADB. 2011 Report and Recommendation of the President to the Board of Directors: Proposed Loans and

Administration of Technical Assistance Grant to Democratic Socialist Republic of Sri Lanka Sustainable Power Sector Support Project. Manila (approved on 27 January 2011).

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B. Details of the Proposed Grant

1. Description of the Components, Monitorable Deliverables and/or Outcomes, and Implementation Timetable

Component A

Component Name Regional review of pro-poor and gender-inclusive energy sector policies and programs

Cost ($) $500,800

Component Description 1. Review of energy sector policies, legal and regulatory frameworks. The project will take stock of existing energy sector policies, legal and regulatory frameworks in Bhutan, Nepal, and Sri Lanka, focusing on clean and renewable energy5. The institutional and organizational structures for the delivery of clean and renewable energy will be assessed, as well as the pro-poor, social, and gender-related aspects of fare structures and subsidy schemes. The review will include a comparative analysis of all SARD DMCs. This will include the three participating SARD DMCs (Bhutan, Nepal, and Sri Lanka) and Bangladesh, the Maldives, and India.

2. Review of energy sector programs and projects6. Under this component, gender-inclusive, energy-related programs and projects implemented by governments, ADB, and other development partners will be reviewed and emerging good practices across all SARD DMCs identified, assessed, and documented.

3. Regional Workshops. Under this component three regional workshops will be conducted: (i) project inception consultation workshop, where the overall approach and methodology for the review will be submitted to 40 key energy sector stakeholders for their inputs; (ii) mid-term review, where project progress reports will be presented and the regional review and comparative analysis of SARD DMC policies, legal and regulatory frameworks will be disseminated for endorsement by 40 key energy sector stakeholders; and (iii) a regional conference will be organized in Bhutan after the completion of the project to present results and findings, with the possible planning of follow-up activities.

4. Peer exchange through lateral learning. National knowledge-sharing workshops will be organized among peers in the three participating DMCs, with a target of 20 government, civil society, and NGO participants from the energy sector. The workshops will (i) share results and findings of the country-specific gender review; (ii) seek feedback from selected participants (government agencies, project and ADB staff, civil society, NGOs, and development

5 For the purpose of this project, clean energy refers to on-grid electricity. Renewable energy refers to solar and

hydro energy. 6 These will include energy-related projects that are not categorized as energy sector projects—i.e. they will include

urban and rural development projects that have built-in energy components, such as the provision of street lighting, household electrification, or pumped tap water.

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partners); and (iii) outline mechanisms for greater incorporation of pro-poor, gender, and social inclusion aspects in the design, implementation arrangements, and impact assessment of investments related to the energy sector.

The services of an international NGO will be retained in compliance with ADB's Guidelines on Use of Consultants, using the quality- and cost-based selection method.

Monitorable Deliverables/Outputs

1. Three regional workshops conducted (40 participants) for project inception consultation, midterm review and project completion

2. Regional gender review of energy sector policies, legal and regulatory frameworks in SARD DMCs (45 pages) will be prepared and disseminated

3. A regional conference will be organized in Bhutan after the completion of the project to present results and findings. This will possibly include planning follow-up activities.

Implementation of Major Activities: Number of months for grant activities

Regional inception consultation workshop organized [Months 1-3] Finalization of gender review report [Months 1–6] Dissemination of country-level results and findings at national lateral learning workshops [Months 6–10] Regional mid-term review workshops conducted [Month 18--20] Final regional conference organized [Months 33–36]

Component B

Component Name Country-specific pilot interventions supporting gender-inclusive access to clean and renewable energy

Cost ($) $2,317,565

Component Description This component will support three grant-financed interventions that supplement three ADB energy sector loan projects in Bhutan, Nepal, and Sri Lanka, to develop innovative approaches to rural poor women‘s equitable access to energy services and energy-based livelihood opportunities. The three projects have been selected in consultation with the SARD energy division because they offer greater opportunities than others to integrate gender equality and women's empowerment features. These projects are (i) the recently approved rural renewable energy development project in Bhutan, (ii) the proposed second phase of the energy access and efficiency improvement project in Nepal, and (iii) the recently approved second sustainable power sector project in Sri Lanka. A detailed description of the direct interventions in component B is in Appendix 8.7

7 Should projects to which the JFPR-financed activities are to be attached not be approved by ADB, the geographic

focus of the direct interventions under Component B of the JFPR grant will be realigned to similar ongoing ADB energy-related projects in Bhutan, Nepal, and Sri Lanka.

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1. Bhutan: Training female village technicians to support sustainable solar power

operational systems

Cost ($) $605,090

(i) Training of women village technicians. Women in remote rural communities will be trained in the operation and maintenance (O&M) of off-grid solar home systems (SHS) and the maintenance of the grid system under a village technicians' training program by the Bhutan Power Corporation. The project will expand the program outreach and enhance pilot modalities for greater gender-related results and sustainability. Gender targets are for 40% of the village technicians to be trained to be women; for 30% of the trained women to improve their livelihoods through SHS maintenance; and to expand the focus of the training from grid system maintenance to include off-grid SHS O&M to enhance the skills and employability of the village technicians. A national consultant (technical trainer) will be recruited by the RED of the DOE to provide training, in compliance with ADB's Guidelines on the Use of Consultants.

(ii) Gender-sensitive user-education program. This will involve developing a gender-sensitive, audio-visual user education program and a users‘ manual in Bhutan‘s national language (Dzongkha) and English to be distributed to 4,500 SHS users to ensure sustainable maintenance of solar systems at the village level.

(iii) Developing community organizations and institutions and enhancing women’s livelihood opportunities. This will support (a) developing community organizations and institutional mechanisms; and (b) providing livelihood opportunities for 200 women in four districts through access to electrical appliances and technologies for production and marketing of traditional crafts, and through enhanced energy efficiency of local mills, grinding tools, driers, and solar water disinfectants.

The services of a national NGO will be retained for the implementation of activities under Component B.1(iii), in compliance with ADB's Guidelines on Use of Consultants, using the quality- and cost-based selection method.8

2. Nepal: Strengthening community management of rural electrification

Cost ($) $627,300

(i) Ensuring electricity access for the rural poor and vulnerable groups. This will involve support for a community rural electrification program at the NEA Community Rural Electrification Department (CRED)9 to provide electricity access to 10 electricity users cooperatives (EUCs), or approximately 10,000 households. Under the program, cooperatives formed in communities bear 20% of the cost of installation, while the government invests on the remaining 80%. Special attention will be paid to ensuring that access to electricity, including household connections, is provided to households headed by women and/or belonging to castes and ethnic and religious groups that are socially marginalized—i.e., Dalits, Janajatis, Madhesis, and Muslims.

(ii) Strengthening technical, organizational, and end-user capabilities. Support will be provided for strengthening the technical and organizational capabilities of the EUCs under the CRED program while also increasing end user capabilities. This will include (a) community cooperatives training for 5 people from 10 the EUCs, with a target of at least 15 women participants (30%); and (b) user training. The first 50 people will receive instruction in training other trainers and will, in turn, educate 10,000 households in nine

8 One of the underlying objectives of the JFPR grant is to strengthen the capacity of national NGOs to deliver

gender-responsive services to poor and vulnerable groups and women more effectively. National NGOs will be retained for the provision of services for Component B-related activities in Bhutan, Nepal, and Sri Lanka.

9 The CRED is under the Electrification Business Group of the NEA. It was established to conduct community-based

rural electrification works.

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districts, with at least half of all participants targeted to be women. Education materials will be developed and disseminated among target groups. This may include both print and audio-visual material. A gender-sensitive user education module developed by the project will be used by the NEA and other organizations working in the energy sector.

(iii) Developing women-led microenterprises. Improved women‘s livelihood opportunities will be provided for 500 women in 10 communities (9 districts) covered by the EUCs targeted for support in Component B.1.

The services of a national NGO, will be retained for the implementation of the activities under Component B.2 (ii)(a) and (b) above, in compliance with ADB's Guidelines on Use of Consultants, using the quality- and cost-based selection method.

3. Sri Lanka: Improving rural women’s access to electricity and improving service delivery in Eastern Province

Cost ($) $1,085,175

(i) Increasing access to clean energy for rural communities. This will provide energy access for approximately 2,200 households from deprived and vulnerable households in the Ampara District of Eastern Province. Candidate beneficiaries from poor families will be proposed by divisional secretariats, certified by district secretariats, and submitted to the project implementation unit for consideration. Free connectivity will be considered for community centers that provide services to rural communities.

(ii) Enhancing Ceylon Electricity Board training skills and service delivery. Four sets of training opportunities will be offered: (a) Building the capacity of the board’s training department. This will involve the

formation of a team of 15 mostly Tamil-speaking trainers to strengthen the capacity of the Ceylon Electricity Board (CEB) training department to provide field training in the Tamil language. Tamils and Muslims who mostly speak Tamil, are the two main ethnic minority groups in Ampara District.

(b) CEB-related training. About 1,000 people from deprived and vulnerable households in Eastern Province, 30% of them women, will be trained in CEB-related skills.

(c) Energy-related livelihood training. About 750 local people in Ampara District (30% of them women) will be trained to repair televisions, mobile phones, household equipment, sewing machines, and three-wheelers10.

(d) Awareness-raising on efficient use of energy for newly electrified households. The strategy will include raising the awareness of an estimated 10,000 newly electrified households about (i) safe and efficient use of electricity (incl. use of compact fluorescent lamp (CFL); (ii) energy-related livelihood opportunities; and (iii) energy consumption habits and patterns for household tasks. The national NGO will support the implementation of these activities.

The services of a national NGO will be retained for the implementation of the activities under Component B.3 (ii)(c) above, in compliance with ADB's Guidelines on Use of Consultants, in accordance with the quality- and cost-based selection method.

Monitorable Deliverables/Outputs

(i) Bhutan: (i) 120 village technicians trained, with 40% of participants women, and 30% of trained women increasing their livelihoods through this business (ii) improved women‘s livelihood opportunities for 200 women in four districts; and (iii) sustainable functioning of 4,500 solar home systems (SHS) in remote off-grid villages.

(ii) Nepal: (i) 10 rural communities (10,000 households in 9 districts) access electricity; (ii) 1,500 local people trained, of

10

These are battery-operated, three-wheeled electric vehicles commercially used to ferry passengers.

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whom 30%–50% are women; and (iii) improved livelihood opportunities for 500 women in 9 districts.

(iii) Sri Lanka: (i) free electricity connections for 2,200 deprived and vulnerable households, including households headed by war widows and the disabled; (ii) improved livelihood opportunities for 750 local people in one district, 30% of whom are women; (iii) 1,500 people trained (30% women) in construction, operation, and maintenance activities.

Implementation of Major Activities: Number of months for grant activities

The direct interventions will be implemented over a period of 30 months. More specifically:

National NGOs recruited [Months 1–3] Baseline data levels established in project sites [Months 4–5] Training activities started and ongoing [Months 6–12] Microenterprise development activities started and ongoing [Months 6–7]

Component C

Component Name Gender mainstreamed Project Performance and Monitoring System informed by regional good practice

Cost ($) $42,500

Component Description This component supports the following activities: (i) development of a Project Performance and Monitoring System (PPMS) with gender equality targets and indicators; (ii) impact-oriented, ‘before-‘ and ‘after-‘ project surveys; (iii) a comparative assessment of the direct interventions in the three DMCs; and (iv) a regional conference as the final workshop. The component will be implemented by an international NGO, with a team of international experts. (i) PPMS system. A gender mainstreamed PPMS template will

be developed for the project to monitor the progress toward an improved gender equality indicators, targets, and outcome. The PPMS template will be adapted to the specific DMCs and project sites. Monitoring field trips will be conducted every 6 months and progress reports will be prepared.

(ii) Surveys. Before- and after-project surveys will be conducted in select project sites to establish baseline data and assess results and the project‘s impact on (i) time spent by poor women on household chores, (ii) livelihood activities for women and men based on the use of electrical appliances and technology, and (iii) the participation and employment of rural women in energy operations.

(iii) Comparative assessment. This will be based on the (i) results and data generated by the project PPMS system, (ii) data collected through monitoring field visits to the direct intervention projects, and (iii) the before- and after-project surveys in select project sites.

Monitorable Deliverables/Outputs

(i) The PPMS template produced and monitoring reports generated every 6 months

(ii) A report produced on comparative assessment of direct

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interventions in the three DMCs (iii) A final workshop organized upon project completion

Implementation of Major Activities: Number of months for grant activities

PPMS template developed [Months 1–5] Direct interventions monitored and progress reports prepared [Months 1–6]

2. Financing Plan for Proposed Grant to Be Supported by JFPR

Funding Source Amount ($)

JFPR 3,000,000

Government 114,000

Community (in-kind) 543,000

Total 3,657,000

3. Background

a. Energy and Poverty in South Asia

1. Energy is a critical factor in any poverty reduction strategy. Energy services help meet basic human needs for cooked food, comfortable living temperatures, lighting, work-saving appliances, piped water and sewage systems, modern health care, educational and communication opportunities, and swift transportation. Energy is also essential for generating production, income, and employment. A minimum consumption of 4,000 kilowatt hours (kWh)11 per capita is required for a country to attain a decent rating on the Human Development Index (HDI)12 of about 0.9. For the G8 countries13 (excluding the Russian Federation), the average is over 11,300 kWh per capita, or almost three times higher. Among the SARD DMCs, Bhutan and Nepal are at the lower end of the HDI scale (i.e., at or below 0.7). They stand to benefit most from increased access to electricity supplies. 2. Rural communities that do not have access to electricity or cannot afford it rely on such traditional energy sources as fuel wood, dung, agricultural waste, charcoal, and kerosene. In rural South Asia, fuel wood is the most important source of primary energy for household needs and many non-household activities rely on it as well. Women generally do the work of collecting, transporting, and processing these traditional energy sources. It consumes a lot of their time and physical energy. The consequences for women and their children from the progressive depletion of these fuel resources in South Asia are serious. They must cover longer distances and spend more time and effort in providing their households with energy sources. Studies have shown that they also suffer disproportionately from the negative health and morbidity impacts that traditional fuel use brings. Women spend much of their time in the smoke polluted air of the home doing household chores and caring for their children at the same time.

b. Energy, Poverty and Gender

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The kilowatt-hour is a unit of energy equivalent to one kilowatt of power expended for one hour. 12

The Human Development Index is a composite statistic used as an index and/or glossary to rank countries by level of human development and to categorize developed (high development), developing (middle development), and underdeveloped (low development) countries. The index is composed from statistics on life expectancy, education, standard of living, and GDP collected at the national level.

13 This includes Canada, France, Germany, Italy, Japan, the Russian Federation, the United Kingdom, and the United States.

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3. ADB‘s Energy for All initiative acknowledges that access to energy and the forms of energy used have gender-differentiated impacts and that modern energy services have the potential to improve gender imbalances and the position of women in poor communities14. The growing use of renewable energy presents special opportunities to promote the involvement of women in the energy sector and to enhance their income and livelihood opportunities. Rural electrification can benefit women by reducing their household labor time and improving their health, security, and incomes. While wider electricity coverage through expanded and strengthened transmission and distribution networks in rural areas is essential, it is important to ―go beyond the meter‖, that is, to go beyond counting the new connections installed, and ensure that these connections include poor and disadvantaged communities. In Sri Lanka and Nepal, where some project sites are located in conflict-affected areas, these targeted interventions include women-headed households or households headed by women widowed by war. 4. Access to modern energy sources can enhance women‘s livelihoods by providing electricity for their microenterprises, which tend to be heat-, labor-, or light-intensive. Experience in Bhutan, Nepal, and Sri Lanka shows, however, that additional gender-inclusive interventions are required through NGOs to maximize the opportunities for higher incomes and better livelihoods that rural electrification brings for both the women and men of newly electrified rural communities. The needs of the women and men in the poor, isolated rural communities that will be part of the project in Bhutan, Nepal, and Sri Lanka include greater access to clean and renewable energy sources and technologies and energy-based livelihood opportunities.

c. Country Context: Bhutan, Nepal, and Sri Lanka 5. In Bhutan, the government has set the goal of electrifying all rural households during the Tenth Five Year Plan (2008-2013) and the Department of Energy has pursued a program of off-grid electrification of scattered and remote rural households -- mainly through stand-alone solar home systems -- where mountainous terrain and the difficulties of grid extension have kept a large percentage of rural households without access to modern energy services. The use of traditional fuels, such as fuelwood and kerosene, has contributed to indoor air pollution causing health burdens especially for women and children. A study conducted of sample households in 18 districts found that the number of working days lost due to respiratory infections and eye problems, mainly due to smoke emissions from wood fires and kerosene-wick lamps, was higher for women than for the male members of the same households. All of the sample households used firewood for cooking. It was also the primary heating fuel. Dependence in these rural areas on wood energy was almost complete. Respondents also reported how much firewood household members carried in their full backloads, indicating the hard work involved in collecting this traditional fuel. The study concluded that rural electrification is a weapon in the fight against poverty and that electrification reduces the time spent by women on domestic chores and improves their health. It also reported that special interventions would be necessary to ensure that the very poor reap the full benefits of electrification.15 6. In Nepal, the government declared a national electricity crisis in 2008. According to a NEA-CRED study, only about 49% of the population has access to electricity. The study said the slow pace of electrification in the rural areas needed to be accelerated to ―uplift the rural economy.‖ The key challenges facing the NEA rural electrification program were related to rural poverty. The rural poor were unable to pay electricity bills. Consumption rates were low and maintenance costs were high. This presented efficiency and sustainability problems for the NEA.

14

ADB. 2007. Energy for All: Addressing the Energy, Environment, and Poverty Nexus in Asia. Manila 15

ADB. 2009. Social Economic Analysis, Rural Renewable Energy Development Project. Manila.

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Increasing income generating activities is one possible solution, according to the CRED.16 A gender audit of the Renewable Energy Development Program in Nepal found that poor women heads of households and marginalized Dalit families are facing these affordability issues in the project sites.17 7. In Sri Lanka, the World Bank‘s energy, poverty, and gender study found that time saved was a major benefit for woman from electrification. About 80% of interviewees reported to have saved one to two hours a day on household and travel-related activities for energy needs.18 The results from the ADB‘s Power Fund for the Poor project in Sri Lanka showed that electricity connections have greatly improved quality of life. Half of new clients realized energy cost savings. Student study hours increased from 1.8 hours to 3.2 hours a day.19 In the conflict-affected Eastern Province, which will be targeted by the project, mean incomes, employment levels, and access to electricity (67% electrified compared with 84% nationally in 2009) are all lower than in the rest of the country. Child and maternal under-nutrition rates were higher. Many women in the conflict-affected areas have been abruptly forced to be heads of their households and bear a disproportionate share of the burden of raising families as sole income earners and caregivers.20

d. Improving Gender-Inclusive Access 8. The project will support three direct interventions aimed at widening women‘s energy access and enhancing energy-based livelihood opportunities within the context of particular conditions in the three DMCs and in the three ADB energy projects to which it will be attached (p. 2). The three direct interventions will be integrated as grant-financed outputs within the three energy sector loan and grant projects enumerated in the description of Component B on page 6. The project will draw extensively from the lessons learned in the implementation of energy sector projects with inclusive social development and gender features, such as the Rural Electricians Training Program in Bhutan, 21 which trained uneducated, rural women in the assembly of solar panels (dubbed the ―solar warriors‖), the Power Fund for the Poor22 project in Sri Lanka, which provided microcredit support to poor households for electricity connections, as well as development partner programs in Nepal in the small hydro and biogas energy sectors. The project will take stock of the existing energy policies, strategies, and practices of the selected DMCs, including relevant institutional arrangements, and assess the extent to which they address and focus on increasing access to modern energy services for the rural poor and vulnerable groups, with a specific focus on women and on gender issues. The policy analysis will lay the basis for the direct interventions in the three DMCs and future activities to be identified in component C.

16

Community Rural Electrification Department, NEA. Knowledge Management and Sustainable Development of Rural Electrification in Nepal, Kathmandu.

17 Rural Women‘s Development and Unity Centre. 2009. Internal Gender Audit of the Rural Energy Development Program. Kathmandu.

18 World Bank. 2003. Energy, Poverty and Gender: Impacts of Rural Electrification on Poverty and Gender in Sri Lanka. Washington, D.C..

19 Energy Forum. 2007. Final Report on the Grant Assistance to Sri Lanka: Power Fund for the Poor. Colombo.

20 ADB. 2008. Country Gender Assessment: Sri Lanka. Manila.

21 Under TA 9093, the project trained 35 women in a six-month training program in India in the installation and repair of solar panels. The implementing agency was Barefoot College (India) and the women returned to their villages as ‗Barefoot engineers‘. See http://www.adb.org/Documents/Information/Energy-for-All/Women-Become-Solar-Warriors.pdf for further details.

22 Under JFPR 9045, micro-credit support was provided for household electricity connections. The project is now completed and a Final Report on benefits and impact assessment has been prepared by the Energy Forum for the ADB.

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4. Innovation

9. The project is innovative because it will support the mainstreaming of gender-related concerns and approaches in the energy sector, which has largely untapped opportunities for promoting gender equity and improving the lives of women. The project will enable the gender specialists of SARD to (i) engage with energy service providers in the three DMCs on critical issues related to the accessibility and affordability of beyond-the-meter23 energy resources and services; (ii) carry out pilot initiatives in collaboration with participating public sector energy providers to demonstrate the important connections between poverty, gender, and energy; (iii) promote a range of pilot initiatives to support equitable access for women to energy-based livelihoods; (iv) facilitate a forum among SARD DMCs for possibly incorporating evidence-based project results in policy dialogue and reform; (v) facilitate dialogue among public sector providers in SARD DMCs on long-term options and solutions for greater accessibility and affordability of energy resources and services; and (vi) encourage dialogue and strategic partnerships between government agencies responsible for energy provision and civil society NGOs involved in pro-poor, gender-inclusive, socially-responsible access to energy resources and services. Through its focus on clean and renewable energy, the project will also support ADB‘s engagement with long-time government partners toward low-carbon and more efficient renewable energy solutions.

5. Sustainability

10. The project was designed to be operationally, technically, financially, and institutionally sustainable in the following ways:

(i) The project‘s attachment to the three ADB energy projects will help ensure sustainability by linking its small, community-based operational systems to the technical expertise and O&M systems of these larger projects. This will also provide these systems with ties to government energy sector agencies and operators and their distribution infrastructure and services, including technical expertise for O&M services in the field and technical training programs.

(ii) The focus on strengthening O&M systems at the community-level through technical training and capacity development aims to build operational sustainability for the small, community-managed systems.

(iii) The project‘s gender focus will strengthen the level of O&M participation, knowledge, and awareness and build operational sustainability of the small energy systems through wider community ownership.

(iv) The project will help increase energy-related income opportunities, which will in turn raise the consumption of electricity by the poor and enable them to pay their electricity bills. This will make sustaining the small-scale systems a more financially viable option for electricity authorities.

(v) The user-education programs will also educate the community on proper O&M, as well as on electricity leakage, thus contributing to equipment sustainability and the systems‘ financial health.

(vi) The project‘s activities also include capacity enhancement on gender issues in the energy sector through lateral-learning approaches based on knowledge-sharing workshops. The project will also strengthen electricity providers institutionally through programs that emphasize the participation of women in training and build understanding of gender issues among the staff of the executing and implementing agencies. This will

23

See paragraph 3.

12

contribute to sustainability and other longer-term gender-related interventions in the energy sector.

6. Participatory Approach

11. A participatory approach is necessary and even essential for gender-inclusive design, development, and implementation of a project. The project‘s target beneficiaries are poor women from rural communities, including women in conflict-affected areas who are vulnerable war widows and single heads of households. Where relevant, other vulnerable groups, such as groups marginalized due to ethnicity and caste and disabled women and men in conflict-affected areas will also be integrated into project activities. The project will identify existing community-based practices in the energy sectors of the three DMCs, such as the use of community-managed groups, committees, or cooperatives for small energy systems, and aims to promote participation by the vulnerable and disadvantaged in these local structures. It will also encourage their involvement in decision making. The livelihood activities to be organized under the project will be based on collective approaches through the establishment or strengthening of women‘s livelihood groups. Targets have been set for the number of poor women to take part in training, education- and awareness-raising. The project also promotes collaboration between different actors at the community, village, district, and national government levels as well as in the private sector and civil society.

7. Coordination

12. Project preparation has involved close step-by-step coordination with the team leaders of the three larger ADB energy sector operations that the project is linked to. This is to ensure that the project‘s gender features will be integrated effectively into these project operations.24 In each of the three DMCs, the project and the larger operation to which it is attached have the same national executing agency to simplify coordination. National coordination was also achieved through field visits, interviews, and consultations with the relevant government ministries, departments, and agencies in the three DMCs (finance, energy, renewable energy, power corporations). The project has also coordinated with development partners Japan International Cooperation Agency (JICA), United Nations Development Program (UNDP), World Bank, Danish International Development Agency (DANIDA), international and national NGOs, the private sector, engineers and technicians in the field, and the embassies of Japan in Sri Lanka, Nepal, and India (which services Bhutan). Discussions with (JICA and staff at the embassies touched upon the scope, geographic focus, and approaches under the grant. Inputs provided by JICA included suggested revisions of the project components and greater visibility and incorporation of good practices emerging from the implementation of JICA-financed projects in the participating DMCs, such as the Sri Lanka Tsunami-Affected Area Recovery and Takeoff (STAART) project. Discussions with JICA and the embassies confirmed their support for the objective, scope, and implementation arrangements of the JFPR-funded project. The South Asia Department, Office of the Director (SAOD), the Nepal Resident Mission (NRM) and the Sri Lanka Resident Mission (SLRM) will be closely associated with project implementation. ADB will regularly update relevant staff in the embassies of Japan and JICA offices on progress, challenges, and results during the implementation through email and direct visits during JFPR review missions

24

These are the three energy-related projects for Bhutan, Nepal, and Sri Lanka, described earlier in Component B on page 2.

13

8. Cost Table

13. The total cost of the project will be the equivalent of $3,657,000. ADB will contribute $3,000,000 financed on a grant basis by the JFPR. Other financing through government and community (in-kind) contributions will be $114,000 and $543,000, respectively. Summary cost table estimates are in Appendix 2. C. Link to ADB Strategy and ADB-Financed Operations

1. Link to ADB Strategy

Document Objective(s)

Strategy 2020: The Long-Term Strategic Framework of ADB 2008-2020

Inclusive growth is one of the strategic agendas and gender equality and women‘s empowerment are identified as fundamental to achieving inclusive growth. The project supports these priorities by focusing on improving women‘s access to energy services and increasing women‘s participation in the energy sector, which will improve women‘s livelihood and income through opportunities based on electrification.

(i) Country Strategy and Program (CSP) Bhutan (2006–2010)

Poverty reduction through economic diversification is the overarching goal of this CSP and rural electrification is identified as a priority area. Increasing opportunities for women through time savings and improvement in health and education indicators is also a priority in the infrastructure sector. The project directly contributes to reducing women‘s time burden by making energy services accessible to poor women.

(ii) Country Partnership Strategy (CPS) Nepal (2010–2012)

Inclusive social development is a country development goal, with special priority given to outcomes that increase opportunities for women and socially excluded groups. The project contributes to these CPS priorities through activities aimed at providing energy-based income-raising opportunities to disadvantaged and vulnerable groups, with a focus on women.

(iii) Country Partnership Strategy (CPS) Sri Lanka (2009–2011)

Inclusive economic growth is a national priority and access to grid electricity for the poorest households is a priority outcome. The project directly contributes to these CPS priorities through free electricity connections to deprived and vulnerable households, including households headed by women who are war widows.

2. Link to Specific ADB-Financed Operations

14. The project will be linked to three ADB energy sector projects in the three participating SARD DMCs: Project Name Bhutan: Rural Renewable Energy Development Project

Project Number 42252-02

Date of Board Approval 30 September 2010

Loan Amount $21.59 million (ADF Grant)

Project Name Nepal: Energy Access and Efficiency Improvement Project (Phase 2)

Project Number 41155-01

Date of Board Approval Scheduled for approval in 2011

Loan Amount $43.6 million (ADF Loan)

Project Name Sri Lanka: Sustainable Power Sector Project II

Project Number 39415-01

Date of Board Approval 27 January 2011

Loan Amount $90 million (OCR Loan)

14

3. Development Objectives of the Associated ADB-Financed Operation

15. The development objectives of the three associated ADB-financed operations are to sustain inclusive economic growth by supporting the generation, transmission, and distribution of reliable and affordable clean and renewable energy resources. The JFPR will complement the development objectives of the associated operations by financing three direct interventions aimed at supporting innovative approaches to advancing equitable access by poor rural women to clear and renewable energy sources and energy-based livelihood opportunities. The project gender features will be integrated in the outputs of each of the three loans and a Gender Action Plan will be prepared for each associated operation.

4. List the main components of the associated ADB-Financed Operation:

No. Project Name Brief Description

1. Bhutan: Rural Renewable Energy Development Project

(a) On-grid rural electrification sources from hydropower (5,075 households)

This component will help electrify 5,075 households in six districts (Lhuentse, Mongar, Samdrup Jongkhar, Trashigang, Trashiyangtse, and Zhemgang).

(b) Off-grid rural electrification sources from solar power (1,896 households)

This component will support the distribution and installation of solar home systems (SHS) to 1,896 households now without electricity.

(c) Pilot wind-power generation plants (360 kilowatts) connected to grids

This component will support two pilot projects for wind-power generation in Tshimalakha (Chuka).

(d) Pilot domestic biogas plants (1,600 households)

This component will support biogas subprojects in four districts, targeting 1,600 households.

2. Nepal: Energy Access and Efficiency Improvement Project (Phase 2)

(a) developing public-private partnership (PPP)-based small- and medium-capacity hydropower plants;

(b) power transmission assisting cross-border import and export;

(c) energy efficiency and demand management; and

(d) distribution strengthening.

n/a

3. Sri Lanka: Sustainable Power Sector II

(a) Transmission system strengthening (i) New Galle power transmission development. Construction of New Galle 94.5-megavolt ampere (MVA), 132/33 kV grid substation and Ambalangoda-to-New Galle 40-kilometer (km), double-circuit 132 kV transmission line.

(ii) North East power transmission development. Construction of Mahiyangana-to-Vavunativu (via Ampara) 129 km and Monaragala-to-Madagama 16 km, double-circuit 132 kV transmission lines; stringing of second circuit of existing Kotmale-to-New Anuradhapura 163 km, 220 kV transmission line; construction of Monaragala 31.5 MVA, Vavunativu 63 MVA, and Pollonnaruwa 31.5 MVA, 132/33 kV grid substations; and augmentation of Ampara 132/33 kV grid substation.

(b) Rural electrification expansion and distribution system improvement

(i) Ampara district distribution development in Eastern Province. Construction of 165 km, 33 kV and 593 km, 0.4 kV distribution lines including 67 of 33/0.4 kV and 11/0.4 kV distribution substations

15

to electrify 12,190 households in 113 remote villages under various rural electrification schemes.

(ii) Ampara district distribution network reliability improvement. Reliability improvement of 33 kV network comprising installation of 75 auto-reclosers and 100 load break switches.

(iii) Eastern Province distribution capacity development. Purchase of tools and specialized utility vehicles for construction and maintenance for 30 line gangs in Ampara, Batticaloa, and Trincomalee districts to enable implementation of rural electrification and distribution network maintenance.

(iv) Strengthening of distribution system in Uva Province: Strengthening of the distribution system in Haldummulla and Ragala areas in Uva Province, including construction of 45 km, 33 kV primary distribution backbone line reinforcements and upgrading 9 km of existing 33 kV line to remove network constraints and improve voltage conditions to existing rural customers.

(c) Energy efficiency improvement and renewable energy development

(i) Estate micro-hydro rehabilitation and repowering pilot. Consulting support to develop detailed technical specifications and funding eligibility criteria for micro-hydro rehabilitation and grid connection, and engineering assessment and environmental and social monitoring of the pilot; and a credit line of $1.29 million to private developers for about 19 micro-hydro projects providing about 1.3 megawatt (MW) of grid connected capacity on a net metering basis.

(ii) Energy appliance testing laboratory. Purchase of lighting appliance testing equipment.

(iii) Reactive power management. Installation of 40-megavolt ampere reactive (MVAr) breaker switched capacitor banks for loss reduction at Aniyakanda, Ambalangoda, and Katunayake grid substations.

(iv) Moragolla hydropower station. Preparation of a detailed engineering design of about a 30 MW, run-of-river hydropower station estimated at $6.35 million, including $6 million to be financed by ADB and $0.35 million by the government for possible financing under a subsequent ADB loan.

5. Rationale for Grant Funding Versus ADB Lending

16. Addressing gender issues in South Asia‘s energy sector is a new endeavor arguably not yet ripe for lending support but suitable for and strongly deserving of grant assistance. ADB's Energy for All initiative is trailblazing in this regard, directly addressing the energy, poverty, and gender nexus and providing a guiding framework for ADB energy sector operations. Another illustration of cutting edge developments in this area is the International Network on Gender and Sustainable Energy (ENERGIA)-Asia's 2009 collaboration with India‘s Ministry of Renewable

16

Energy in the first gender analysis of renewable energy.25. Nonetheless, lending-based energy sector operations still focus on physical and civil works for power generation and transmission and research on gender-differentiated needs for and impacts from energy access is still developing. Grant funding in this context will spur needed innovation in interweaving gender and socially inclusive poverty reduction concerns with energy sector development in a manner that currently available lending assistance may not.

17. The project grant offers the otherwise unavailable opportunity to apply the Energy for All framework in the design of three separate energy projects in three South Asia DMCs. It will make possible direct engagement with energy sector line agencies and public power corporations to promote deeper understanding of gender-differentiated impacts of energy policies and access. It will facilitate consultations with rural communities and national NGOs with a view to acknowledging such gender-differentiated needs and constraints. Finally, it will pilot-test innovative modalities for providing women with equitable access to clean and renewable energy sources and energy-related livelihood opportunities, in partnership with national NGOs. In addition to providing these concrete benefits, the grant will promote practices for potential replication in the energy sectors of these DMCs.

D. Implementation of the Proposed Grant

18. All procurements under the JFPR grant will be conducted in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). The implementing agencies will be recruited by ADB in accordance with ADB‘s Guidelines on the Use of Consultants (2010, as amended from time to time) to provide the services for implementation, management, and progress monitoring of the JFPR grant. National NGOs and consultants will be contracted by the grant implementation unit in accordance with ADB‘s Guidelines on the Use of Consultants.

1. Provide the Name of the Implementing Agencies

(a) Bhutan: Department of Energy (DOE), Renewable Energy Division (RED); and the Bhutan Power Corporation (BPC);

(b) Nepal: Nepal Electricity Authority (NEA), Electrification Group;

(c) Sri Lanka: Ceylon Electricity Board (CEB).

2. Risks Affecting Grant Implementation

Type of Risk Brief Description Measure to Mitigate the Risk

(a) Understanding and appreciation of gender.

Gender considerations are not well understood by project implementing agencies and therefore gender considerations are not adequately addressed

(i) An international organization with substantial, successful experience in addressing gender considerations in the energy sector in South Asia will be recruited to coordinate and

25 Integrated Research and Action for Development (IRADe). 2009. Gender Analysis of Renewable Energy in India:

Present Status, Issues, Approaches and New Initiatives. Delhi.

17

Type of Risk Brief Description Measure to Mitigate the Risk

support project activities. (ii) National NGOs with proven

capacity in addressing gender issues and demonstrated experience in project implementation in remote rural communities will be recruited to support project implementation

(b) Local involvement and participation

Women and men in local communities do not unite to plan, construct, and manage the systems.

(i) Community-based, gender-inclusive, participatory approaches have been integrated into project development and implementation. This will enable wide, substantive community consultation and participation. Activities to raise community awareness and provide education and training will be targeted at community-level structures, organizations, and management systems.

(ii) National NGOs will be recruited to implement these activities.

(c) Sustainability Sustainability issues are not adequately addressed

Please see paragraph 10 on sustainability features in the project.

NGO = nongovernment organization.

3. Incremental ADB Costs

Component Incremental Bank Cost

Amount requested Not applicable

Justification Not applicable

Type of work to be rendered by ADB Not Applicable

4. Monitoring and Evaluation

Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E

Component A

20% of energy sector projects in SARD DMCs with significant gender mainstreaming by 2011 and 30% by 2012 (2009 baseline: 0%)

a

ADB project performance reports.

Project completion Reports

JFPR semiannual status report, to be submitted to ADB by the EA. Quarterly progress report to the EAs and ADB Semiannual project review missions Midterm review in Year 2

Component B

In the project areas:

Number or percentage of women and men accessing clean and

ADB country and regional strategy documents,

18

Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E

renewable energy increased 50% from 2010 baseline

Number or percentage of women and men adopting energy-saving technologies increased 50% from 2010 baseline

Number or percentage of women and men involved in energy-related employment and training increased 25% from 2010 baseline

Number or percentage of women trained to maintain energy structure and technologies, including construction and O&M, increased 25% from 2010 baseline

RRPs, monitoring reports, project completion reports

Six-monthly PPMS reports

EA annual reports

Final report, Year 3

Component C:

A PPMS template produced with gender targets and indicators, adapted to each DMC

Field surveys

ADB = Asian Development Bank, DMC = developing member country, EA = executing agency, JFPR = Japan Fund for Poverty Reduction, O&M = operation and maintenance, PPMS = Project Performance and Monitoring System, RRP = Report and Recommendation of the President to the Board of Directors, SARD = South Asia Department. a The term significant gender mainstreaming refers to projects categorized as gender equity as a theme (GEN) and

effective gender mainstreaming (EGM). Guidelines for Gender Mainstreaming Categories of ADB Projects (2010)

set out the requirements for GEN and EGM projects. Source: Asian Development Bank estimates.

5. Estimated Disbursement Schedule

Fiscal Year (FY) Amount

($)

FY 2011 500,000

FY 2012 1,000,000

FY 2013 1,000,000

FY 2014 500,000

Total Disbursements 3,000,000

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Appendices 1. Design and Monitoring Framework 2. Summary Cost Table 3. Detailed Cost Estimates 4. Fund Flow Arrangement 5. Implementation Arrangements 6. Summary Poverty Reduction and Social Strategy (SPRSS) 7. Outline Terms of Reference for Consultants 8. Detailed Description of Direct Interventions (Component B) 9. Procurement Plan

Appendix 1 20

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets/Indicators

Data Sources/ Reporting

Mechanisms

Assumptions and Risks

Impact Assumptions Giving the poor, women, and vulnerable groups access to energy is a priority for DMCs.

Risks

Governments will be preoccupied by other development priorities.

Gender considerations will not be adequately addressed.

Increased access to affordable and reliable clean and renewable energy sources and technologies by poor rural women

In the project areas:

Reduced time and labor required for household chores (i) 30% increase in time saving by women

a; and

(ii) 30% increase in time spent by women on rest, relaxation, and learning activities from 2011 baseline

b

Reduced amount of money spent by men and women to obtain energy supplies (fuel-wood, charcoal) from 2011 baseline

Increased income generation. A 30% increase in the number of microenterprises run by women and men using electrical appliances and technologies, from 2011 baseline

c

Increased involvement of women in community decision making. 10% of women in project communities involved in project activities

Project performance monitoring system data and reports

Before- and after-project surveys of select project sites

Outcome Assumptions

Government commitment to universal access to clean and renewable energy sources and technologies is sustained.

More systematic integration of gender issues and approaches in the design of energy operations in all SARD DMCs

20% of energy sector projects in SARD DMCs with significant gender mainstreaming by 2012 and 30% by 2013, up from 2009 baseline of 0%

d

RRPs, monitoring reports and project completion reports.

Outputs Assumptions Acceptance and understanding of gender issues among executing and implementing agencies is sustained.

Local communities sustain commitment to take part in planning, constructing, financing, and/or managing energy systems.

1. Regional good practices in pro-poor and gender-inclusive energy sector policies and programs, identified

Quality country-specific papers for SARD DMCs (6) produced on time, in consultation with government and civil society stakeholders

Quality comparative analysis among SARD DMCs produced on time

DMC policies, strategies, laws, and regulations (including fare structures and subsidy schemes)

Appendix 1

21

Design Summary Performance Targets/Indicators

Data Sources/ Reporting

Mechanisms

Assumptions and Risks

2. Direct interventions supporting gender-inclusive access to clean and renewable energy piloted, for replication

In the project areas:

Number/percentage of women and men accessing and using clean and renewable energy increased 50% from 2011 baseline

Number/percentage of women and men adopting and using energy-saving technologies increased 50% from 2011 baseline

Number/percentage of women and men involved in energy-related employment, enterprises and training. increased 25% from 2011 baseline Number/percentage of women trained to maintain energy structure and technologies (including construction and O&M) increased 25% from 2011 baseline

ADB country and regional strategy documents, RRPs, monitoring reports, project completion reports

PPMS reports every 6 months

EA annual reports

Final report, Year 3

Risks Gender considerations are not well understood by project EAs and IAs and therefore gender considerations are not adequately addressed.

Local institutional capacity for project implementation is weak.

Women and men in the communities do not unite to plan, construct, and manage the systems.

Sustainability issues are not adequately addressed.

3. Project Performance and Monitoring System -reflecting regional good practices in place, for effective monitoring of the social and gender-related results of the direct interventions.

A PPMS template produced with gender targets and indicators, adapted to each DMC

Field surveys

Activities with Milestones

1. Component A

1.1. Recruitment of an international organization with gender and energy sector expertise by month 3 from start of project. Recruitment of the team leader by month 3.

1.2. Regional inception workshop organized by month 3. 1.3. Review of energy sector policies, legal and regulatory frameworks by months 1 to 6. 1.4. Review of energy sector programs and projects during months 1 to 6. 1.5. Conduct of lateral learning workshops in months 6–10. 1.6. Conduct of regional midterm review workshop by month 18. 1.7. Conduct of regional conference/ workshops conducted during months 33–36.

2.1. Recruitment of the research coordinator by month 3 and of the national NGOs recruited by month 3.

2.2. Identification of project sites by month 3. 2.3. Design of before- and after-project surveys and establishing baseline data levels in the

project sites by months 4–5. 2.4. Bhutan

2.4.1 Mobilization of communities for project orientation, organizational strengthening and livelihood creation (target: 50% women) from months 4–6.

2.4.2 Preparation of the gender action plan by international and national NGOs by months 4–5).

Inputs

$3,000,000 for proposed financing by JFPR $114,000 for Government $543,000 for Community (in- kind)

36 person-months of individual international consultants through international NGO

4 person-months of individual international consultants (for Bhutan-related activities)

Appendix 1 22

Design Summary Performance Targets/Indicators

Data Sources/ Reporting

Mechanisms

Assumptions and Risks

2.4.3 Identification of women and men village technicians by DOE (RED) and national NGO by months 4–5 2.4.4 Training of village technicians started by DOE (RED) and BPC during months 6–9 2.4.5 Microenterprise development by national NGO for 200 women (20 days) by month 6 and ongoing until month 30.

2.4.4 Conduct of a gender-sensitive user education program by RED for 4,500 users (target: 50% women) by months 12–18.

2.4.5 Installation of new electricity connections for poor and women-headed households by months 9-18.

2.5. Nepal

2.5.1. Mobilization of communities for project orientation (target: 30% women), organizational strengthening, and livelihood creation from months 4–6.

2.5.2. Designing of Gender action plan by months 4-5 by international and national NGO. 2.5.3. Installation of on-grid connections to ten communities by months 9–18 (by NEA-

CRED). 2.5.4. Training for 14 days for EUCs/450 rural electricity operators (target: 30% women)

by months 6–9 (by NEA–CRED). 2.5.5. Skills training and livelihood enhancement by national NGO for 500 women (20

days each) by month 6 and ongoing until month 30. 2.5.6. Legal empowerment training for 10 days for 100 EUC members (target: 30%

women) in months 6–12 (by NEA–CRED and national NGO). 2.5.7. Enhancing and conducting user education program by NEA–CRED and national

NGO (target: 30% women) by months 12–18.

2.6. Sri Lanka

2.6.1. Mobilization of communities mobilized for project orientation (target; 50% women), organizational strengthening, and livelihood creation from months 4 to 6.

2.6.2 Gender action plan prepared by international and national NGO by months 4–5. 2.6.3 Installation of free on-grid connections to 2,200 households from deprived and

vulnerable communities in the Ampara District from months 9–30. 2.6.4 Establishment of a CEB training unit by month 6 and provision of training from

months 6–30. 2.6.5 CEB-related training activities for 1,000 persons (target: 30% women) from months

9–12. 2.6.6 Skills training and microenterprise development for 20 days for 750 local

community members (target: 30% women) from months 6–30.

3. Component C

3.1. Development of a gender-inclusive PPMS template by month 5. 3.2. Conduct of impact-oriented ‗before-‗ and ‗after-‗ project surveys by months 1-5 (‗before-‗)

and months 30-35 (‗after-‗). 3.3. Comparative assessment of the results of direct interventions in the three DMCs. 3.4. Monitoring of direct interventions and preparation of first progress reports by month 6.

90 person-months of national NGOs

60 person-months of individual national consultants (for Sri Lanka-related activities)

4.5 person-months of individual national consultants (auditors) Governments and NGOs in-kind contributions through provision of office space, transportation costs, and staff salaries

Communities will provide in-kind contributions through participation in training and community activities.

ADB = Asian Development Bank, BPC = Bhutan Power Corporation, CEB = Ceylon Electricity Board, DMC = developing member countries, DOE = Department of Energy, EA = executing agency, EUC = electricity users cooperative, IA = implementing agency, JFPR = Japan Fund for Poverty Reduction, NEA = Nepal Electricity Authority, NGO = nongovernment organization, O&M = operation and maintenance, PPMS = project performance and monitoring system, RED = Renewable Energy Division, RSDD = Regional and Sustainable Development Department, SARD = South Asia Department. a Household activities include firewood collection, cooking, ironing, boiling water, house cleaning and chimney cleaning and

time spent on journeys such as taking batteries to be recharged and going into town to buy kerosene. The surveys conducted will also study the impact on men‘s activities and gender roles.

b An agreed set of outcome targets and indicators for 2011 will be finalized and incorporated, based on baseline surveys to

be conducted by the international Research Coordinator (under component C) in project sites in the three DMCs. c This will also enable a comparative assessment of the role and income of women and men in the use of electrical

equipment and technologies for home-based income generating activities. d

Sources: SARD and RSDD estimates.

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SUMMARY COST TABLE ($)

ADB = Asian Development Bank, JFPR = Japan Fund for Poverty Reduction. Source: Asian Development Bank.

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DETAILED COST ESTIMATES ($)

Amount Method of

Procurement

1 Subtotal(A) 500,800 500,800

1.1 34 10,000 340,000 340,000

1.2 Lateral learning workshops (2 days, 20 persons, 3 DMCs) 13,200 13,200

(a) Lodging and board ($100/day) person 60 200 12,000 12,000

(b) Workshop room rentals ($200/day) day 6 200 1,200 1,200

1.3 147,600 147,600

person 120 450 54,000 54,000

Regional transportation costs (40 participants/each = 120) person 120 750 90,000 90,000

Workshop room rentals ($400/day, 3 day/each)=9 day 9 400 3,600 3,600

2 Subtotal(B) 2,974,565 2,317,565

2.1 Subtotal

(BHU)

620,090 605,090

2.1.1 Village technicians training 179,900 179,900

(a) Off-grid solar (150 persons, 30 days)

Travel expenses/person person 150 67 10,050 10,050

person 150 233 34,950 34,950

Daily allowance (3 batches) day 30 133 4,000 4,000

person 150 6 900 900

Trainers labor costs/month: 2 trainers, $5,000/per month 2 5,000 10,000 10,000

150 130 19,500 19,500

150 130 19,500 19,500

(b) On-grid training (120 village technicians, 60 days)

Travel expenses/person person 120 60 7,200 7,200

Stipend 120/month/person x 2 months person 120 240 28,800 28,800

Food and snacks 5/person/per day person 120 300 36,000 36,000

Trainers allowance (incl. per diem) 30/day, 5 trainers, 60 person-days person 5 1,800 9,000 9,000

2.1.2 Equipment 204,590 204,590

2.1.2.1 Off-grid solar, 150 persons (DOE)

unit 150 89 13,332 13,332 Shopping

unit 150 16 2,400 2,400 Shopping

-

Carrying bag unit 150 33 5,000 5,000 Shopping

Safety belt unit 150 44 6,666 6,666 Shopping

Hydrometer unit 150 67 9,999 9,999 Shopping

unit 150 3 417 417 Shopping

Magnetic compass unit 150 13 2,000 2,000 Shopping

Soldering kit unit 150 167 24,999 24,999 Shopping

Inclinometer with bubblelevel unit 150 56 8,333 8,333 Shopping

Government Other Donors

Component A: Regional stocktaking of good practices in pro-poor and gender-

inclusive energy sector policies and programs

Supplies and Services Rendered JFPRTOTAL ($)Unit Quantity

(Unit)

Bhutan

Consultancy services

Regional workshops (3) (3 days, 40 persons), at project onset, mid-term review and

completion

Code

Lodging and board (40 participants/each = 120), $150/day (3 day/each)=9

Stipend/day/person

QCBSPerson-month

(Lump Sum)

Recruitment of international NGO

Training materials/set

DETAILED COST ESTIMATES

Multimeter (0-20 DC & 0-10A DC)

Twin wire blockscrew connectors

Tool Kit (wire stripper; adjustable spanner; pliers; cross-head screwdrivers; flat-

blade screwdrivers)

CommunitiesCost (Unit)

Component B: Direct interventions supporting gender-inclusive access to clean

and renewable energy piloted, for replication

COSTS

Person-month

(Lump Sum)

CONTRIBUTIONS

Refresher training 1 (2012) (7-day, 150 persons (120 village technicians

plus 30 BPC backup support engineers), by Begana Training Center's trainers

Refresher Training 2 (2013) (7-day, 150 persons (120 village technicians

plus 30 BPC backup support engineers), by Begana Training Center's trainers

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40 86 3,440 3,440

lump sum 6,649 6,649 6,649

100,000 100,000

(b) 64,446 64,446

person 14 2,500 35,000 35,000

lump sum 29,446 29,446 Shopping

4 125 500 500

4 650 2,600 2,600

1 1,400 1,400 1,400

4 250 1,000 1,000

1 550 550 550

1 850 850 850

1 1,750 1,750 1,750

150 150 150

2 356 712 712

2 1,157 2,314 2,314

2 223 445 445

2 1,113 2,225 2,225

2 5,250 10,500 10,500

2 2,225 4,450 4,450

(c) CEB engineers and staff 105,000 105,000

2.3.5 Grant management (local NGO) person-month 30 1,000 30,000 30,000 QCBS

2.3.6 Skills training and livelihood enhancement (750 participants) 170,000 160,000

20 days training; per person/day/$10 person 750 200 150,000 150,000

Equipment lump sum 10,000 10,000

In-kind (time) contribution by trainees 10,000 10,000

2.3.7 Community awareness raising, education and mobilization 31,200 21,200

Awareness campaigns lump sum 20,000 20,000

Workshop room rentals ($400/day) 3 400 1,200 1,200

In-kind (time) contribution by trainees 10,000 10,000

3 Subtotal (C) 42,500 42,500

3.1 2 10,000 20,000 20,000

3.2 Appointment of auditors person-month 4.5 5,000 22,500 22,500

4 JFPR contribution 3,517,865 2,860,865 114,000 543,000

5 Contingency 139,135 139,135

6 Total grant costs 3,657,000 3,000,000 114,000 543,000

Source: Asian Development Bank.

QCBS

Consultancy services

Consumables: 250 sessions, 14 persons/each, $10/person/day

Consultancy services (3), 1.5 person-months/each SARD DMCs (3)

Component C: PPMS for effective monitoring of the social and gender-related

results of the direct interventions

Formal Training of Crews

ABC crimping tool

MV detectors

Hydrolic crimping tool 12T hand-operated

Draw vice

Earthing equipment MV

In-kind (time) contribution by trainees

Clip on ammeter

Chain block (3T)

HV ammeter

Recruitment of international NGO Person-month

(lump sum)

Safety shoes, gloves, helmet, boots, loose tools

Mechanical crimping tool 5T

Safety belt

BPC= Bhutan Power Corporation, CEB= Ceylon Electricity Board, DOE= Department of Energy, DMC= developing member country, EUC= Electricity Users' Cooperative, gewog = cluster village, JFPR= Japan Fund for Poverty

Reduction, NEA= Nepal Electricity Authority, NGO= nongovernment organization, PPMS= Project Performance and Monitoring System, SARD= South Asia Region Department.

ICS

Phase sequence meter

Load break tool

Eart resistance tester

Insulation tester

Thermal image detector

Equipment and tools

28 Appendix 4

FUND FLOW ARRANGEMENT 1. The Asian Development Bank (ADB) will channel the Japan Fund for Poverty Reduction (JFPR) funds directly to JFPR imprest accounts, which will be established in Bhutan, Nepal, and Sri Lanka and managed, replenished, and liquidated by the implementing agencies in accordance with ADB‘s Loan Disbursement Handbook (2007, as amended from time to time) and detailed arrangements agreed upon between the government and ADB. More specifically, after opening the imprest accounts at the central bank for each of countries, counter-imprest accounts will be established and managed by (i) the Department of Energy (DOE) for off-grid activities and the Bhutan Power Corporation (BPC) for on-grid activities in Bhutan1; (ii) the Ceylon Electricity Board (CEB) in Sri Lanka; and (iii) the Nepal Electricity Authority (NEA) in Nepal. Direct payment procedures will be used for the international and the national NGOs selected in Bhutan, Nepal, and Sri Lanka.

2. The implementing agencies will adopt an imprest fund procedure under which ADB makes an advance disbursement from the grant account for deposit to an imprest account at commercial banks acceptable to ADB to be used exclusively for ADB‘s share of eligible expenditures. The amount to be deposited into the imprest account will not exceed 10% of project amount or 6 months‘ estimated expenditures, whichever is lower. The statement of expenditures (SOE) procedure may be used for reimbursement of eligible expenditures and to liquidate advances in the imprest account, provided that each individual payment does not exceed the equivalent of $10,000. 2 The payments in excess of the SOE ceiling will be replenished based on full supporting documentation. The national governments and their respective project implementing agencies have established financial management capacity to establish adequate accounting procedures and controls to efficiently administer the imprest fund and SOE procedure, as indicated in the financial management assessments attached to ADB‘s ongoing projects in the energy sector, namely: (i) Bhutan—Green Power Development (2009) and the upcoming Rural Renewable Energy Development Project (2010); (ii) Nepal—Energy Access and Efficiency Improvement (2009); and (iii) Sri Lanka—Clean Energy and Access Improvement Project (2009) and the upcoming Sustainable Power Sector Support Project II (2011). The assessments report satisfactory financial management performance. 3. Detailed implementation arrangements, such as the flow, replenishment, and administrative procedures, will be detailed in the grant implementation manual and will be established through the JFPR Letter of Agreement. Furthermore, the implementing agencies shall (i) maintain separate accounts for the JFPR project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards, by independent auditors acceptable to ADB; (iii) furnish as soon as available but not later than 6 months after the end of the fiscal year, certified copies of such audited accounts and financial statements and the reports of the auditors relating thereto, including auditor‘s opinions on the use of the JFPR funds as well as on the use of the JFPR imprest account and the SOE procedure provided under the project; 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 request.

1 The funds will be transferred from the imprest account to the government budget fund account administered by the

Department of Public Accounts (DPA). Upon the DOE's request for funds, DPA will release the funds to the project account through a project letter of credit account.

2 Since the Government of Japan is not financing taxes and duties, the implementing agencies should ensure that

SOE claims are submitted to ADB without taxes and duties.

Appendix 4

29

4. Interest earned on the JFPR imprest accounts can be used for the project, subject to ADB approval, within the approved total amount of JFPR. Upon completion of the JFPR project and before closing of the JFPR imprest account, any unutilized interest should be returned to the JFPR fund account maintained at ADB. If the remittance fee and other bank charges are higher than the amount of interest earned, there will be no need to return such interest to the JFPR account maintained at ADB.

5. The funds flow arrangements are shown in Figure A4.

JFPR Imprest Accounts ($1,644,065)

Direct Payments ($1,216,800) Contingency = $139,135 Total JFPR Grant = $3,000,000

ADB = Asian Development Bank, BHU = Bhutan, JFPR = Japan Fund for Poverty Reduction, NGO = nongovernment organization, NEP = Nepal, SRI = Sri Lanka. Source: Asian Development Bank estimates.

Figure A4: Funds Flow Arrangements

ADB Imprest Accounts

$190,000

$272,300

$211,200 Component B(3):

SRI: National NGO

Component B(2): NEP: National NGO

Component B(1): BHU: National NGO

Components A and C International NGO

$520,800

$415,090

$873,975 Component B(3): SRI: Ceylon Electricity

Board (CEB)

Component B(1): BHU: Department of Energy (DOE) and Bhutan Power Corporation (BPC)

Component B(2): NEP: Nepal Electricity

Authority (NEA) $355,000

$22,500 Components C Individual national consultants (auditors)

Appendix 5

30

IMPLEMENTATION ARRANGEMENTS A. Executing and Implementing Agencies 1. ADB will be the executing agency for the project [with the South Asia Department (SARD) Office of the Director General (SAOD) as the focal point], responsible for the overall management and monitoring of the project. An international nongovernment organization (NGO) will be recruited by the ADB for the implementation of the activities under components A and C. The international NGO will be recruited in compliance with the ADB‘s Guidelines on the Use of Consultants (2010, as amended from time to time), in accordance with the quality- and cost-based selection method, based on biodata submitted in specific terms of reference for assignments. The implementation team of the international NGO will consist of two international experts: (i) a team leader and field coordinator (30 person-months); and (ii) a research coordinator (6 person-months), for a total of 36 person-months. 2. For the direct interventions in the three participating SARD developing member countries (DMCs) under component B, the implementing agencies will be the following three national government agencies:

(i) Bhutan: Department of Energy (DOE), Renewable Energy Division. (ii) Nepal: Nepal Electricity Authority, Community Rural Electrification Department (CRED),

under the Electrification Business Group. (iii) Sri Lanka: Ceylon Electricity Board (CEB). The CEB will implement the project through

the additional general manager (Region 2), which includes the Eastern Province. A project implementation unit (PIU) will be responsible for the day-to-day implementation of project activities. It will include a project coordinator (30 person-months) and a social and community development program officer (30 person-months). The PIU will be based in the CEB office at Ampara and will be led by a CEB engineer.

3. National NGOs (one per DMC) will be responsible for the implementation of community mobilization, education and awareness raising, livelihood enhancement, as well as developing and/or strengthening community-based organizations and institutional mechanisms relevant to the project (30 person-months each, or 90 person-months). They will be recruited by ADB in compliance with the ADB‘s Guidelines on the Use of Consultants (2010, as amended from time to time), in accordance with the quality- and cost-based selection method, based on biodata submitted in specific terms of reference for assignments. International consultancy services will also be recruited in compliance with the ADB‘s Guidelines on the Use of Consultants to support the implementation of the village technicians training program in Bhutan (under component B), for the maintenance of off-grid solar home systems (4 person-months). B. Implementation Schedule 4. The grant is to be implemented over a period of 36 months. An inception mission will finalize the grant implementation manual and review and endorse the proposed schedule of activities. All disbursements under the grant will be implemented within this period. The detailed implementation schedule is in Figure A5.

Ap

pe

ndix

5 31

Figure A5: Schematic Implementation Arrangement

Team Leader

BHU: Department of Energy

(DOE)

NEP: Nepal Electricity Authority (NEA)

EAs:

SRI: Ministry of

Power and Energy

BHU: DOE – Renewable Energy

Division BPC – Bhutan Power

Corporation

NEP: NEA – Electrification

Business Group

SRI: Ceylon Electricity Board

(CEB)

IAs:

Community Rural Electrification

Department (CRED)

International NGO

PIU

Ampara District

National NGOs

Research Coordinator

IAs:

Components A-C:

Component B:

ADB Executing Agency (SARD/SAOD as

focal point)

ADB = Asian Development Bank, BHU = Bhutan, EA = executing agency, IA = implementing agency, NGO = nongovernment organization, NEP = Nepal, PIU = Project Implementation Unit, SARD = South Asia Region Department, SAOD = Office of the Director General, SARD, SRI = Sri Lanka. Source: Improving Gender-inclusive Access to Clean and Renewable Energy in Bhutan, Nepal and Sri Lanka.

32 Appendix 5

C. Procurement and Consulting Services 5. All procurement under the grant will be in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). The implementing agencies will procure goods and services in consultation with ADB. Contract packages below $100,000 will be procured on the basis of shopping procedures. Contracts for goods estimated to cost the equivalent of or more than $100,000 shall be procured on the basis of national competitive bidding (NCB) procedures. There is no international competitive bidding envisaged under the project. For NCB, the first draft English language version of the procurement documents should be submitted for ADB review and approval. The ADB-approved procurement documents should then be used as a model for all NCB procurement financed by ADB for the project and need not be subjected to further review. ADB will review the bid evaluation report and award of contract on a post-review basis. For shopping, ADB will review the award of contract on a post-review basis. The procurement plan is in Appendix 928.

6. All agencies involved in the implementation of the grant activities appear to have adequate capacity for the procurement activities under the grant, from the standpoint of transparency and accountability. This is indicated in the capacity assessment report and recommendations attached to ongoing ADB projects in the energy sector to which the JFPR-financed direct interventions will be attached. These are: (i) the Energy Access and Efficiency Improvement (2009) in Nepal (Supplementary Appendix E); and (ii) the Clean Energy and Access Improvement Project (2009) in Sri Lanka ( Supplementary Appendix B(1). With respect to Bhutan, the Department of Energy (DOE) and the Bhutan Power Corporation (BPC), which will be the executing agencies, have been successfully involved in the implementation of ADB‘s Rural Electrification Project, Sustainable Rural Electrification Project, and the Rural Electrification and Network Expansion projects. They will also be involved in the implementation of the Rural Renewable Energy Project. In the implementation of these loans, the DOE and the BPC demonstrated adequate capacity for involvement in the procurement activities under the grant. 7. The project will involve 40 person-months of individual international consultant services: 36 person-months of international consultants through international NGO (30 person-months for a team leader and field coordinator, and 6 person-months for a research coordinator); and 4 person-months of individual international consultant for a technical trainer in Bhutan. The project will engage 90 months of national NGOs recruited under the quality- and cost-based selection method (30 months in each of the three participating DMCs) and 60 person-months of individual national consultants (30 person-months for a project coordinator and 30 person-months for a social and community development program officer) for Sri Lanka-related activities. All consultants will be recruited in accordance with ADB‘s Guidelines on the Use of Consultants (2010, as amended from time to time). No activity will be financed in any member country under this TA, unless and until a letter of no objection in respect of such activity has been received from the government of such member country. Terms of reference for consultants are outlined in Appendix 7. Disbursements under the TA will be made in accordance with ADB‘s Technical Assistance Disbursement Handbook (2010, as amended from time to time).

28

A bid evaluation committee must be established at the national level to ensure that a transparent and efficient process is used for procurement under the project. It is recommended that members include (at a minimum) representatives of the executing and implementing agencies. Final composition of the bid evaluation committee will be determined through consultations with the governments of the participating DMCs, considering their national procurement requirements.

Appendix 5 33

D. Compliances

8. Anticorruption. The governments were advised of ADB‘s Anticorruption Policy (1998, as amended to date) and its Policy on Combating of Money Laundering and the Financing of Terrorism (2003). Consistent with its commitment to good governance, accountability, and transparency, ADB will require the governments to institute, maintain, and comply with internal procedures and controls following international best practice standards for the purpose of preventing corruption or money laundering activities or the financing of terrorism and covenant with ADB to refrain from engaging in such activities. The project documentation between ADB and the governments will further allow ADB to investigate any violation or potential violation of these undertakings.

9. Environment. The project has a thematic classification of Environmental Sustainability, with eco-efficiency as a subtheme. The project has been classified as Category C under the ADB‘s categorization system. The project has been prepared in accordance with the Safeguard Policy Statement (2009) of ADB. In case there are any changes in scope, an environment assessment should be carried out. 10. Social safeguards. With respect to involuntary resettlement, the Project has been classified as Category C under the ADB‘s categorization system. As no land acquisition will take place under the Project, there will be no impact on Involuntary Resettlement. With respect to indigenous peoples, the Project has been classified as Category C under the ADB‘s categorization system. E. Reporting Requirements

11. JFPR status report to ADB. ADB requires that a semiannual JFPR status report be submitted to ADB by the executing agencies. 12. Quarterly progress report by email. The implementing agencies will prepare quarterly progress reports addressing project implementation progress, problems, and concerns. The reports should be concise, and kept to a maximum of five pages, to be circulated by email to the executing agencies and ADB. 13. Audited grant accounts. The implementing agencies will maintain separate accounts for all project components financed by the JFPR and the governments and have these audited by an auditing agency approved by ADB. The audited project accounts and the auditors‘ reports will be furnished to ADB within 6 months after the end of each financial year. The governments of the selected DMCs have been informed of ADB requirements regarding the timely submission of audited project accounts and financial statements, including the suspension of disbursements in case of noncompliance. The audit report should include the auditor‘s opinion on the use of the imprest account and application of statement of expenditure procedure. 14. Implementation completion memorandum. The project implementation completion memorandum should be prepared by the executing agencies within 6 months after the grant closing date.

34 Appendix 5

F. Grant Monitoring and Evaluation 15. Contract awards, commitments and disbursement projections. Consistent with the project schedule and procurement plan, the disbursement of the JFPR fund is spread over the implementation period, with the corresponding disbursement amount for each year to be detailed in the inception report. 16. Grant reviews. To determine the efficiency and effectiveness of the use of the grant, grant reviews will be conducted by ADB through semiannual project review missions. Such reviews will ensure that the grant is used prudently in each stage of project implementation. 17. Monitoring indicators. The monitoring indicators will be composed of output indicators, and project benefit indicators (key performance indicators). These indicators must be referenced in all required reports, except the monthly progress reports. Where necessary, the project manager will collect and confirm baseline values for the indicators at the beginning of project implementation. 18. Midterm review. ADB and the governments will carry out a midterm review of project implementation in year 2. The midterm review will focus on project impacts, particularly those relating to (i) institutional, administrative, organizational, and technical aspects; (ii) environmental and social safeguards (including involuntary resettlement and indigenous peoples); and (iii) poverty, social, and gender-related results and impacts. At a minimum, it will (i) review the original project scope, design, implementation arrangements, and other relevant issues in light of the governments‘ development strategies and policy frameworks and the strategic concerns of ADB, including any modifications, as needed, (ii) examine progress toward achieving the measurable objectives of the project and agree on minor changes in the project design and implementation; (iii) assess compliance with the JFPR Letter of Agreement; (iv) identify problems and constraints; (v) formulate appropriate recommendations for corrective actions, and (vi) develop a revised project implementation schedule for effective implementation of the project.

Appendix 6 35

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Improving Gender-inclusive Access to Clean and Renewable Energy in Bhutan, Nepal, and Sri Lanka

Lending/Financing Modality:

Japan Fund for Poverty Reduction (JFPR) Department/ Division:

SARD/SAOD

I. POVERTY ANALYSIS AND STRATEGY

A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy

The proposed JFPR-funded project directly supports the poverty alleviation mandate of the Asian Development Bank (ADB) and the focus of Strategy 2020 on inclusive growth. It aligns with ADB's Energy Policy (2009), which identifies maximizing access to energy as one of the three pillars of ADB support to the energy sector. Increasing access to energy also aligns with the policies and programs of the participating developing member countries (DMCs), which all have universal electrification targets. Poverty reduction through economic diversification is the overarching goal of the Country Strategy and Program (CSP) for Bhutan and rural electrification is identified as a priority area. Increased opportunities for women through time savings and improvement in health and education indicators have also been identified by ADB as a priority outcome in the infrastructure sector. The project directly contributes to improving time burdens of women by increasing access to energy services for poor women. Inclusive social development is a country development goal for the Government of Nepal, with special priority given to outcomes with increased opportunities for women and socially excluded groups. The project contributes to the ADB Country Partnership Strategy (CPS) priorities in Nepal through activities to improve the income opportunities for poor women and socially excluded groups through electrification. For the Government of Sri Lanka, inclusive economic growth is a national priority and access to grid electricity for the poorest households a priority outcome. The project directly contributes to these CPS priorities through free electricity connections for deprived and vulnerable households, including households headed by women, some of whom are war widows and disabled. The project includes direct interventions in poor and isolated communities in Bhutan and Nepal and poor communities in conflict-affected areas in Sri Lanka. A particular focus of the project will be to ensure energy access for poor households headed by women in the project sites. The project also emphasizes training for these women as meter readers and in routine maintenance tasks and seeks to improve their access to microcredit services and the productive use of microcredit to improve their employment and livelihood opportunities through the energy sector.

B. Poverty Analysis Targeting Classification: TI-G

1. Key Issues Bhutan: Women have made numerous gains in Bhutan. They include the right to vote, equal criteria for employment and

training in the civil service, rapid progress in girls‘ education and vocational training. Important gender gaps persist, however. Male participation rates in the labor force are significantly higher than those of women, in part because of women‘s traditional ties to the land and cultural stereotypes. Almost half of all pregnant women continue to deliver at home without the assistance of trained health workers. Women remain under-represented in public decision making. Gender disparities exist in education between urban and rural areas and poor and non-poor households. Nepal: While notable efforts have been made to improve gender equality and empower women, discriminatory institutions,

structures, ideology, and social norms continue to limit the progress of women. Although the number of economically active women has grown, their earned income is much lower than men‘s and women continue to have low access to property ownership, financial credit, and political power. The drudgery of their workload in rural areas is a key gender–poverty issue dimension that can be addressed by improving rural infrastructure. The low literacy rate and numeric skills of women and their limited access to market information are barriers to non-farm employment and marketing. Sri Lanka: While women in Sri Lanka are better positioned than those in many other economically developing South Asian

countries, persistent poverty, armed conflict, and gendered social norms have disproportionately negative impacts on their lives. Women still suffer from widespread inequality and gender discrimination in employment. Their unemployment rates have been double those of men since the 1970s. They are concentrated in unpaid labor in the agricultural sector, the plantations, labor intensive industries inside and outside the export processing zones, often unviable informal self-employment, and in overseas domestic service, where they are vulnerable to sexual abuse and other forms of violence. Hence women have limited income and mobility.

36 Appendix 6

1 ADB. 2007 Energy for All – Addressing the Energy, Environment and Poverty Nexus in Asia. Manila

Energy is a critical factor in any poverty reduction strategy. Energy services help meet basic human needs for cooked food, comfortable living temperatures, lighting, work-saving appliances, piped water and sewage systems, modern health care, educational and communication opportunities, and swift transportation. Energy is also essential for generating production, income, and employment. A minimum consumption of 4,000 kilowatt-hours (kWh) per capita is required for a country to attain a decent rating on the Human Development Index (HDI) of about 0.9. For the G8 countries (excluding the Russian Federation), the average is over 11,300 kWh per capita, or almost three times higher. Among South Asia‘s developing member countries (DMCs), Bhutan and Nepal are at the lower end of the HDI scale (i.e., at or below 0.7). They stand to benefit the most from increased access to electricity supplies. As much as 57% of the population in the DMCs had a per capita consumption of less than 1,000 kWh in 2002, compared 43% worldwide. It is clear that developing Asia represents the least energy-developed region of the world. With over half of the world‘s people, it is home to 70% of global population living on less than 1,000 kWh per capita consumption.

1

Traditional biomass fuels are a major source of energy for the poor in South Asia. In Bhutan, Nepal, and Sri Lanka, women tend to be primarily responsible for the collection and household management of biomass fuels. Biomass fuels can have deleterious health effects when used indoors (for cooking, for instance) and are time- and labor-intensive to procure and use. Because of inconvenience or biomass scarcity, users seldom boil water for drinking purposes. Using this fuel can drive up healthcare costs and detract from more productive, income-generating use of available work hours, reducing a household‘s net disposable income. Biomass use can also lead to unsustainable harvesting practices and serious environmental consequences, effects that are more felt more severely and immediately by the poor. This also drives up their future fuel costs. Women bear the brunt of this lack of access to modern energy and of the resulting inefficient energy use. They are often the main users of fuel for cooking and invariably do the hard work of collection. This not only deprives poor households of one half of their income-earning potential but also detracts from the vital role of mothers in child rearing. Children, especially girls, deprived of proper care and often co-opted into fuel gathering, are even more susceptible to poor health and lack the time for education, or such facilities as proper lighting, and have future prospects for gainful employment diminished.

2. Design Features

The project aims to reduce the drudgery and time burden imposed on women by household and other daily tasks by increasing their access to clean and renewable energy sources and livelihood opportunities in project sites. The outcomes will be achieved through direct interventions in Bhutan, Nepal, and Sri Lanka. The project outputs will be (i) a gender review of energy policies, programs, and strategies in the three DMCs (ii) direct interventions in project sites in remote, rural communities, to widen the access of poor women to energy and energy-related livelihood opportunities; and (iii) a gender mainstreamed project performance and monitoring system (PPMS). The project will be linked to the following upcoming ADB energy sector operations and will integrate gender features with their designs: (i) the Rural Renewable Energy Development Project in Bhutan (ii) the Energy Access and Efficiency Improvement Project (Phase II) in Nepal; and (iii) the Sustainable Power Sector II Project in Sri Lanka.

II. SOCIAL ANALYSIS AND STRATEGY

A. Findings of Social Analysis

The needs of the poor women and men in poor, remote rural communities who are the potential project beneficiaries in the participating DMCs include greater access to clean and renewable energy sources and technologies and energy-based livelihood opportunities, particularly for women. Bhutan: A study conducted of sample households in 18 districts found that the number of working days lost due to respiratory

infections and eye problems, mainly due to smoke emissions from firewood and kerosene-wick lamps, was higher among women than the men in the same households. All of the sample households used firewood for cooking. It was also the primary heating fuel. Dependence in these rural areas on wood energy was almost complete. Respondents also reported how much firewood household members carried in their fuel backloads, indicating the hard work involved in collecting this traditional fuel. The study concluded that rural electrification is a weapon in the fight against poverty and that electrification reduces the time spent by women on domestic chores and improves their health. It also reported that special interventions would be necessary to ensure that the very poor reap the full benefits of electrification. Nepal: According to study conducted by the Nepal Electricity Authority (NEA‘s) Community and Rural Electrification

Department (CRED), only about 49% of the population has access to electricity. The study said the slow pace of electrification in the rural areas needs to be accelerated to ―uplift the rural economy.‖ The key challenges facing the NEA rural electrification program were related to rural poverty. The rural poor were unable to pay electricity bills. Consumption rates were low and

Appendix 6 37

maintenance costs were high. This presented efficiency and sustainability problems for the NEA. The CRED sees increasing income generating activities as one possible solution. A study conducted by the United Nations Development Program (UNDP‘s) Renewable Energy Development Program specifically identifies poor women heads of households and marginalized low-caste groups as facing affordability problems. Sri Lanka: The World Bank‘s Energy Poverty and Gender study found that a major benefit of household electrification for

women was time saved. Of the interviewees, 80% reported to have saved one to two hours a day on household activities and travel related to energy needs. The results from the ADB‘s Power Fund for the Poor project in Sri Lanka found that quality of life improvements have been significant as a result of connectivity. Half of the clients realized energy cost savings and the number of hours spent by students on study increased from 1.8 hours to 3.2 hours a day after connectivity. In conflict-affected Eastern Province, where the project will be located, mean incomes, labor force participation, employment, and access-to- electricity rates (67% compared with 84% nationally in 2009) are all lower than elsewhere in the country. Child and maternal under-nutrition rates were also higher that the national average. Women in the conflict-affected areas have been abruptly forced to be heads of their households and thus bear a disproportionate share of the burden of raising families as sole income earners and caregivers.

B. Consultation and Participation

1. Provide a summary of the consultation and participation process during the project preparation. National consultations took place during the fact-finding mission with government ministries, departments, and agencies in the three DMCs. Development partners (Japan International Cooperation Agency (JICA) United Nations Development Program (UNDP) World Bank, Danish International Development Agency (DANIDA)), were also consulted and meetings and interviews were conducted with international and national NGOs, the private sector, engineers, and technicians in the field. 2. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring?

Information sharing Consultation Collaborative decision making Empowerment Given the project‘s focus on gender-inclusive and community-based approaches, a consultative and participatory approach is essential for project development and implementation. Several approaches have been included in the project design to enable this to happen. National NGOs with demonstrated experience in gender-inclusive community organization will be mobilized for project implementation. Before- and after-project surveys will be developed based on consultative and participatory approaches. The project performance and monitoring system (PPMS) system will also be designed using gender-inclusive participatory approaches and implemented through six monthly field trips. The project design is based on strengthening existing community structures and institutions, which includes increasing the participation and the decision-making role of poor women and marginalized groups, thus enhancing the involvement of and consultation with a wider cross section of the community. Additionally, a key aspect of integrating gender features in the energy sector operations linked to the project will be the inclusion of gender-equity-based participatory approaches in the main operations. 3. Was a C&P plan prepared? Yes No If a C&P plan was prepared, describe key features and resources provided to implement the plan (including budget, consultant input, etc.). If no, explain why. A C&P plan will be prepared by the 3 national NGOs for the select project sites.

C. Gender and Development

1. Key Issues

Modern energy services have the potential to reduce gender imbalances and improve the position of women in poor communities. Clean and renewable energy (grid and off-grid) through small or micro, community-based systems provides good opportunities to address the need for women to have access to electricity in rural households. While improving coverage by expanding and strengthening rural transmission and distribution networks is essential, it is important to ―go beyond the meter‖, that is, to go beyond merely counting the number of new connections installed, but to ensure that these connections include disadvantaged and vulnerable communities who are also provided with the means to sustain their connections.. In Sri Lanka and Nepal, where project sites include conflict-affected areas, these targeted interventions include women-headed households. In Bhutan and Nepal and some communities in Sri Lanka (such as the island communities off the Eastern Province coast) economies of scale make it prohibitive to bring energy services to remote rural communities, thus making off-grid small or micro renewable energy systems (hydro, solar, and wind) a viable alternative. In all three countries, evidence is emerging to show that the introduction of new technologies does provide opportunities to increase women‘s participation in the energy sector both in the supply and distribution of electricity. This includes employment opportunities in routine operation and maintenance, as junior level technicians, and even as engineers. However, gender strategies are needed to tap into and maximize these opportunities.

38 Appendix 6

Similarly, gender-inclusive strategies are also needed to maximize the livelihood opportunities for poor women and men that result from access to electricity. Examples in all three countries indicate that special livelihood-based interventions are required through the support of international and/or national NGOs to increase incomes in electrified rural communities. These include the use of electrical appliances and technologies, market information and access, training in financial management, and access to microcredit and community-based collective structures and/or institutions—i.e., women‘s groups, cooperatives, and others. The community management of small or micro energy systems needs to be strengthened to make these systems sustainable. This includes ongoing technical support for routine operation and maintenance, especially in remote rural communities. It also includes community-wide user-education for the safe and efficient management of these systems. In all three countries, greater engagement is needed between NGOs working in the energy sector and government agencies and corporations. The project will encourage more such interaction, thereby contributing to raising the awareness and capacity of the energy sector agencies on social and gender issues, as well as the understanding of the NGOs on the nature of the challenges and constraints faced by these agencies. This could strengthen a working partnership between civil society and government in the energy sector.

2. Key Actions Measures included in the design to promote gender equality and women‘s empowerment—access to and

use of relevant services, resources, assets, or opportunities and participation in decision-making process: Gender plan Other actions/measures No action/measure

Considering the specific gender focus of the proposed grant and the integration of all gender-related activities, targets, and indicators in the design and monitoring framework (DMF), the preparation of a project-specific gender action plan (recommended under the Updated Guidelines for Gender Classification, 2010) is not necessary. Component A:

Gender Review of energy sector policies and energy projects in the three DMCs

Case studies of at least 3 gender-inclusive ADB energy-related projects

Capacity building on gender issues through lateral learning Component B:

Direct interventions carried out in a timely and effective manner in the three participating SARD DMCs. Bhutan: (i) 120 village technicians trained (target: 40% women); (ii) improved women‘s livelihood opportunities for 200 women in four districts; and (iii) sustainable functioning of 4,500 solar home systems (SHS) in remote off-grid villages. Nepal: (i) 10 rural communities (10,000 households in 9 districts) access electricity; (ii) 1,500 local communities trained (target: 30 to 50% are women); and (iii) improved women‘s livelihood opportunities (target: 500 women) in 9 districts. Sri Lanka: (i) free electricity connections for 2,200 deprived and vulnerable households (including households headed by war widows and the disabled); (ii) improved women‘s livelihood opportunities for 500 women in one district; (iii) 1,500 people trained (target: 30% women) in construction and operation and maintenance (O&M) activities.

Component C:

Project PPMS template developed with gender equity targets and indicators.

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Significant/Limited/ No Impact

Strategy to Address Issue

Plan or Other Measures Included in Design

Involuntary Resettlement No impact Full Plan Short Plan Resettlement Framework No Action

Indigenous Peoples

No impact Plan

Other Action Indigenous Peoples

Framework No Action

Appendix 6 39

Issue Significant/Limited/ No Impact

Strategy to Address Issue

Plan or Other Measures Included in Design

Affordability . Affordability issues have been addressed under this project through the provision of free and subsidized connections for poor and vulnerable households in the project sites.

Action No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human trafficking Others(conflict, political

instability, etc), please specify

The NGOs will conduct information education campaigns (IEC) to raise awareness amongst women and other vulnerable groups to mitigate potential risks from the implementation of the larger energy projects, including the health and social risks associated with large-scale infrastructure projects.

Plan Other Action No Action

IV. MONITORING AND EVALUATION

Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes No

40 Appendix 7

OUTLINE TERMS OF REFERENCE FOR CONSULTANTS A. International Consultants 1. An international nongovernment organization with gender and energy sector expertise will be retained and be responsible for the implementation of activities in Component A (the review of the energy sector portfolios of the three participating developing member countries (DMCs) and Component C (the Project performance and monitoring system). It will provide overall guidance for Component B. The implementation team of the international organization will consist of two international experts: (i) team leader and field coordinator (30 person-months), and (ii) research coordinator (6 person-months), for a total of 36 person-months. International consultancy services will also be needed to support the implementation of the village technicians training program in Bhutan (under Component B) that will facilitate future maintenance of off-grid solar photovoltaic systems (4 person-months).

(a) Team Leader and Field Coordinator (30 person-months) 2. The team leader will be a gender and development (GAD) specialist with experience in energy. She/he will have overall responsibility for the direction of the grant project, the research, and the implementation of the direct interventions under Component B and the relevant outputs summarizing the findings, recommendations, and lessons learned from the project. The team leader will have a postgraduate university degree in social sciences or public administration. An additional degree in engineering will be an advantage. She/he will have formal training in GAD and demonstrated experience, skills, and expertise in mainstreaming gender in the infrastructure sector, preferable the energy sector. The team leader will be familiar with the energy sector in South Asia and issues of vulnerability, accessibility, and affordability related to energy resources and services. She/he will be familiar with research analysis, as well as tools and methodologies addressing gender issues in the energy sector. She/he should have consulted for international organizations or NGOs supporting GAD work in the energy sector and be familiar with ADB's policies and strategies on GAD, the energy sector, and the business and project cycles. 3. More specifically, she/he will be responsible for:

(i) implementing project Component A and Component C; (ii) providing overall guidance for Component B, including (a) assisting in designing

gender sensitive baseline surveys for the three direct interventions, preparing a note or memo on how to conduct a gender sensitive baseline survey, reviewing baseline survey instruments, and providing guidance on analyzing data; (b) reviewing the baseline survey reports; (c) assisting the country teams to develop a gender action plan that identifies specific gender-focused activities and ensures that the interventions planned are appropriate and in line with the ground realities; and (d) reviewing the training package and communication material for its gender responsiveness;

(iii) organizing the inception consultation to discuss the project and the methodologies to be followed in the research and implementation of the direct interventions in Component B;

(iv) organizing the national and regional workshops as knowledge-sharing lateral learning activities to present findings and lessons learned and any follow-up activities;

Appendix 7 41

(v) visiting the project countries to consult and liaise with the government agencies, national NGOs recruited for project implementation, ADB project staff, and other stakeholders;

(vi) undertaking field trips every 6 months to monitor the direct interventions under Component B;

(vii) providing overall support for the implementation of the project; (viii) coordinating the activities of the project with relevant government agencies,

development partners, and ADB; (ix) managing the grant funds allocated to Components A and C; and (x) following Components and preparing an inception report and a detailed work plan

within 4 weeks of project commencement, preparing a report reviewing the energy sector portfolio of the selected DMCs within 3 months of project commencement, preparing semiannual individual country progress reports, preparing the PPMS template, and preparing at least three case studies of good practice drawn from the ADB supported energy sector interventions in the three DMCs.

(b) Research Coordinator (6 person-months)

4. The research coordinator will have a post-graduate university degree, preferably in applied social sciences, and significant prior experience with survey research and other social science research tools and methodologies. She/he will have experience in gender and development work in South Asia. More specifically, she/he will be responsible for:

(i) leading the technical discussion with the team leader and other core staff on the research tools and methodology to be adopted in the design and implementation of the direct interventions under Component B in the three DMCs;

(ii) preparing draft questionnaires for and leading the implementation of before and after baseline surveys, impact-oriented surveys, follow-up surveys, and qualitative interviews and discussions that will be used in the development and implementation of the activities under Component B;

(iii) working closely with the national NGOs in the implementation of the specific tasks, as well as coordinating the activities of the tasks with the relevant district and local government agencies, development partners, and ADB.

(c) Technical Trainer (4 person-months)

5. She/he will have a graduate degree in electrical engineering or physics. She/he will have at least 5 years of experience in the field of solar PV, specifically in overseeing the implementation of off-grid solar PV systems in rural settings in Asia. She/he must have extensive knowledge of the design, development, and operations and management (O&M) of off-grid solar PV systems for various applications, specifically in community and household electrification and lighting. She/he must have knowledge and experience of solar PV training systems and modules and should have participated in the development and use of these training modules. Experience working in the energy sector in Bhutan would be a distinct advantage. More specifically, she/he will be responsible for:

(i) developing a training module on the routine operation and maintenance of solar PV systems, in partnership with the Renewable Energy Division, Department of Energy;

(ii) carrying out the training of trainers; (iii) supporting the Renewable Energy Division in the implementation of the training

activities.

42 Appendix 7

B. National Consultants

(a) Service Delivery Nongovernment Organizations (1 for 30 person-months in each participating SARD DMC, for a total of 90 person-months)

6. To be eligible for funding, the service delivery nongovernment organization (NGO) must:

(i) be a non-profit organization legally registered (at least 5 years) as an NGO; (ii) have at least 5 years of experience in planning, implementing, and managing

donor-funded projects, with a focus on rural electrification projects in the energy sector;

(iii) have a demonstrated commitment to the principles of gender equality, women's empowerment, and community-based and/or community-driven development;

(iv) have experience in gender programming and developing sustainable income-generating activities;

(v) have a track record of collaborative partnerships with national and, possibly, provincial and district government agencies;

(vi) have a long-term presence and credibility in, and a commitment to, local communities, preferably in the selected project sites; and

(vii) maintain a proper accounting and financial system. 7. The NGO will take responsibility for implementing the direct interventions in Component B of the project in partnership with the implementing agency and the team of international consultants. Specifically this will include, but not be limited to

(i) identifying and selecting the target beneficiaries based on pro-poor, gender equity, and social inclusion criteria, in partnership with the government implementing agency and the international team leader;

(ii) community mobilization, including information, education, and communication (IEC) activities to orient and prepare women and men in the community for the upcoming project activities;

(iii) preparing relevant gender-sensitive IEC materials, as they are required at various stages of project implementation;

(iv) developing and implementing strategies and activities for women‘s livelihood activities in the selected project sites, including the relevant training programs;

(v) supporting the preparation and implementation of the user-education activities at the community-level, in partnership with the implementing agency;

(vi) developing gender-inclusive participatory strategies for strengthening community-based management of small-scale energy systems, including the relevant training programs;

(vii) preparing a gender action plan incorporating the above project design features, including activities and targets and indicators;

(viii) supporting the international research coordinator in the preparation and implementation of the before and after baseline surveys, follow-up and impact-oriented surveys, including the conduct of focus group discussions to gather qualitative gender data;

(ix) supporting the team leader (international) in the implementation of the PPMS, including the preparation and conduct of the field trips and the preparation of the monitoring reports every 6 months;

(x) preparing and maintaining records in relation to tools and materials, and physical and financial reports;

(xi) submitting yearly reports on the project activities conducted by the organization;

Appendix 7 43

(xii) engaging in a collaborative partnership with the government implementing agency in the implementation of project activities during the project;

(xiii) conducting IEC campaigns, where relevant, to raise awareness among the poor, women, and other vulnerable groups to mitigate potential risks from the larger energy sector projects, such as health and social risks associated with large-scale infrastructure projects.

(b) Sri Lanka: Project Implementation Unit Staff

1. Project Coordinator (30 person-months) 8. The project coordinator is the head of the project implementation unit, which is responsible for the day-to-day project implementation activities. The project coordinator‘s specific responsibilities are (i) liaising with the Ceylon Electricity Board, relevant provincial councils, pradeshiya sabhas 1 (municipal councils), government agencies, and ADB and ensuring timely and effective access to information and data; and (ii) coordinating the PIU staff and technical supervisors. She/he will (i) report to the CEB‘s additional general manager (region 2) secretary; and (ii) develop and maintain a good working relationship with relevant agencies and NGOs and function as the main contact between the project, the CEB, the international consultants, the national NGOs, ADB‘s Sri Lanka Resident Mission, and the main stakeholders. Main activities include carrying out the procurement of goods and services and recruitment of project staff. 2. Social and Community Development Program Officer (30 person-months) 9. The tasks will involve (a) supporting the international consultants in the implementation of the surveys and the monitoring field visits every 6 months; (b) using the surveys to identify gender-related concerns of the target beneficiary communities with respect to energy access, CEB-related training activities, and livelihood-related skills development; (c) monitoring and supporting implementing partner NGOs in addressing gender concerns in project activities; (d) contributing to monitoring and evaluation of project outputs and outcomes; (e) preparing reports on the social and gender development dimensions of the project; and (f) liaising with relevant officers at the pradeshiya sabha and divisional secretariats on building capacity in gender mainstreaming in development work.

(c) Auditors (4.5 person-months) 10. The public accounting firm will be engaged to conduct an annual internal audit of project accounts, covering all operations at all levels. The key internal audit functions will be to ascertain (i) whether the operating systems of internal checks and controls are effective, (ii) the reliability of financial and physical reports, (iii) the extent to which the systems in place prevents misuse of project assets, and (iv) that the financial rules and procedures of ADB are followed. The auditors will be required to report on the findings of the audit. The audit will be conducted in accordance with internationally accepted accounting and auditing standards and financial reporting systems. The scope of annual auditing should encompass the examination and evaluation of the adequacy and effectiveness of the internal control system and the quality of performance in carrying out assigned responsibilities. Annual auditors should do the following: (i) review the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information; (ii) review the project accounts and

1 Elected local government administration unit covering a few villages.

44 Appendix 7

procurement procedures to check compliance with ADB and government guidelines; (iii) review the means of safeguarding the assets, including civil works, goods, equipment, consultancy services, and other assets procured under the project, and, as appropriate, verify the existence of such assets; (iv) appraise the economy and efficiency with which project resources are employed; and (v) review the project activities to ascertain whether results are consistent with established objectives and targets and whether the project activities are being carried out as planned. The public accounting firm should submit reports annually, within 1 month after completion of the audit at the end of each financial year, to the executing agencies, the Nepal Resident Mission, the Sri Lanka Resident Mission, and the ADB project officer in South Asia Region Department (SARD), Office of the Director General (SAOD). The report should contain a letter indicating the purpose, scope, results, and major findings of the audit, and an expression of the audit opinion.

Appendix 8 45

DETAILED DESCRIPTION OF DIRECT INTERVENTIONS (COMPONENT B)

Component B

Country-specific pilot interventions supporting gender-inclusive access to clean and renewable energy

1. Bhutan: Training female village technicians to support sustainable solar power operational systems

(a) Training of women village technicians

Women in remote rural communities will be trained in the O&M of off-grid solar home systems (SHS) and

the maintenance of grid systems.1 To meet the government‘s target of 100% electrification by 2013, an

additional 120 village technicians need to be trained in off-grid SHS. The training is expected to be carried

out by the BPC, a government-owned corporation, which recently launched a village technicians' training

program aimed at training village-based crews in grid system maintenance at the local level. The project

will expand the program and pilot modalities for greater gender-related results and sustainability by (i)

seeking to ensure that 40% of village technicians trained will be women2 and that 30% of trained women

increase their livelihoods through SHS maintenance; and (b) expanding the focus of the training from grid

system maintenance to include off-grid SHS O&M to enhance the skills and employability of the village

technicians. The training program will also include the training of 30 BPC backup support technicians for

SHS O&M. Trained female village technicians will be integrated into the village maintenance crews. They

will also receive a full tool and safety equipment kit funded under the project. Women with basic literacy

skills will be targeted for training. Women who have been trained under ADB‘s rural electricians training

program (also referred to as the solar warriors) will be integrated, as relevant, into the training program.

(b) Gender sensitive user education program

This will involve developing a gender-sensitive audio-visual (video), user-education program, targeting the

specific needs faced by women and other disadvantaged groups in ensuring sustainable maintenance of

SHS at the village level. The audio-visual program will be complemented by a user manual to be

published in Bhutan‘s national language (Dzongkha) and English and distributed to 4,500 SHS users.

(c) Developing community organizations and institutions and enhancing women’s livelihood opportunities

This component has two main elements:

(i) One is the development of suitable community organizations and institutional mechanisms within

the framework of which project deliverables such as training and management activities can be

organized. The NGO will draw from successful models developed in existing community-based

management of PV systems, such as those established in the Phobjikha Valley. Attention will be

paid to enhancing women‘s roles in community organizations and local institutions.

(ii) The second will support livelihood opportunities for 200 women in four districts through access to

electrical appliances and technologies for production and marketing of traditional crafts and will

enhance the energy efficiency of local mills, grinding tools, driers, and solar water disinfectants.

Livelihood activities will include the development of marketing strategies for community products,

linking with local financing options such as microfinancing institutions, and attention to service

support and customer care. They will be designed and implemented within a sustainable

livelihoods framework.

1 A transmission grid is a network of power stations, transmission circuits, and substations. Electricity consumers on-

grid are those linked up to the electricity distribution system networks that carry electricity from the transmission system and deliver it to consumers. Off-grid systems are stand-alone systems independent of the transmission grid, usually associated with renewable energy sources, such as solar, wind, and hydro power.

2 The training program will run for 90 days (30 days for off-grid solar home systems and 60 days for on-grid

distribution systems). Trained village technicians are expected to receive an allowance of $128/month (or BTN 6,000) from the BPC. It will complement training sessions carried out by CEB for on-grid systems in 22 village technicians, with no women‘s participation.

46 Appendix 8

2. Nepal: Strengthening community management of rural electrification

(a) Ensuring electricity access for the rural poor and vulnerable groups

This will involve complementary support to the Community Rural Electrification Program of the Community Rural Electrification Department (CRED) of the Nepal Electricity Authority (NEA) to provide electricity access to 10 electricity users cooperatives (EUCs)

3 that cover approximately 10,000 households in 9

districts. The districts included are Parbat, Palpa, Kavre, Gulmi, Banke, Parsa, Kailali, Udayapur, and Khotang. The CRED program promotes a community-managed distribution model and provides a government subsidy of 80% from a revolving fund of soft loans for on-grid community distribution systems, matched by community contributions of 20%. Distribution infrastructure expenditure for up to 50 communities can be provided under the ADB‘s Energy Access and Efficiency Improvement Project in Nepal. Training will include legal empowerment support

4 to raise awareness among beneficiaries of the

revolving fund and how to access it, as well as related regulations under the Community Rural Electrification Bylaw 2065 (incl. the O&M Fund provisions). Special attention will be paid to ensuring electricity access, including household connections, for households headed by women and from socially marginalized castes, ethnic and religious groups.

5

(b) Strengthening technical, organizational, and end-user capabilities

Support will be provided for strengthening the technical and organizational capabilities of EUCs under the CRED program while also increasing end-user capabilities. The support will have several components: (i) Community cooperatives training. Fifty people will be trained (5 people from each of the 10

EUCs with a target of 30% women). The training course will run from 2 to 4 weeks. Subjects will include business management of community-based organizations; energy efficiency and technical standards; design and maintenance of distribution networks; practical skills and techniques for O&M and safety; use of end-use technologies and microfinance

6. Organizations such as the

National Association of Community Electricity Users (NACEUN) will also be consulted. Special measures to encourage women‘s participation will include training in provincial centers, rather than in Kathmandu, and special live-in facilities to cater to women trainees and their children. Trainees will include electricity systems operators, cooperative managers, and accounts staff.

(ii) User education training. The training of trainers will benefit 50 people (5 each from the 10 EUCs, 30% women). A total of 10,000 households (target: 30% women-headed households) will benefit from 100 user education events in 9 districts. Training and education events will be conducted to address safe use of electricity and end-use technologies; reduction and prevention of electricity leakage; legal empowerment on leasing agreements and related energy-sector regulations; decision making structures processes; and conflict management and resolution provisions. A gender-sensitive user-education module will be developed by the project for ongoing use by the NEA and other organizations working in the energy sector.

3 Currently around 100 community-managed systems run by EUCs are operational, 100 are under construction and

50 are in the pipeline to be serviced. The 10 target EUCs under the project are (i) Parbat District, Shree Bachchha Community Small Electricity Consumer Committee; (ii) Palpa District, Damsing Danda Tallung Pela Chaur Community Small Electricity Consumer Committee; (iii) Kavre District, Shree Digo Bikas Community Small Electricity Project; (iv) Gulmi District, Madankudari Shree Darbar Devisthan Community Small Electricity Consumer Committee; (v) Kavre District, Shree Bita Deurali Community Small Electricity Cooperative; (vi) Banke District, Shree Sonari Baghauda Community Small Electricity Consumer Committee (II phase); (vii) Parsa District, Shree Ma Electricity Consumer Committee, Hasodir Janaki Tol; (viii) Kailali District, Shree Ghoda Ghodi Community Electricity, Distributor, Co-operative Sanstha Ltd; (ix) Udayapur District, Shree Thoksila Agriculture and Community Electricity Center; and (x) Khotang District, Shree Community Electricity Supplier Centre, Dubekol.

4 For the purposes of this project, legal empowerment is defined as the ability of women and disadvantaged groups

to use legal and administrative processes and structures to access services and opportunities. Examples of legal empowerment activities in the project design include awareness-raising, training, capacity building, and user education of beneficiaries related to project interventions.

5 Historically, the Dalits have represented the lowest rank in the Hindu caste system. The Janajatis are an ethnic or

indigenous nationality and the Madhesis are the southern plain dwellers who, until recently, were not mentioned in the Constitution. Poverty incidence among these marginalized groups remains high: Dalits 46%, Muslims 41%, hill Janajati 44%, compared with 18% among the upper caste Brahmins and 14% for the Newars. [Source: ADB. 2010. Country Gender Assessment Nepal. Manila: 14].

6 Efforts will be made to link up with the National Association of Community Electricity Users of Nepal, which also

plays an important role in developing and strengthening the capabilities of EUCs.

Appendix 8 47

(c) Developing women-led microenterprises

Improved women‘s livelihood opportunities will be provided for 500 women in 10 communities (9 districts) covered by the EUCs targeted for support in Component B (i). They will benefit from skills training and capacity building for livelihood activities based on the use of electrical appliances and technologies. Livelihood development activities will include socioeconomic assessment of investments and soft loan requirements, access to microcredit services, and training in finance and business management of microenterprises. Opportunities for microenterprise interventions in the following areas will be assessed: milk chilling centers; bakeries; agroprocessing units; pumped water for irrigation and drinking; poultry units; ice-cream making; and electrical appliance shops. Other innovative enterprises will be identified based on the needs assessment of the target communities and groups. Measures will be taken to specifically target poor women heads of households and women from the following marginalized groups: the Dalits, the Janajatis and Madhesis, and the Muslims. Consultation will also take place with other agencies and organizations working in the microenterprise sector, such as local and district microfinancing institutions, district development committees, women development offices and training centers,

7 as well as with development partners programs, such as the

UNDP‘s rural energy and microenterprise development programs. The savings and credit cooperatives operating in the local areas and at the district level are microfinance service providers that will be accessed in providing investment credit.

3. Sri Lanka: Improving rural women’s access to electricity and improving service delivery in the Eastern Province

(a) Increasing access to clean energy for rural communities

The Project will improve the energy access of approximately 2,200 households from deprived and vulnerable households.

8 This will be based on successful practices established by the CEB through the

Tsunami Affected Area Recovery and Take-off Project (STAART) financed by the Japan Bank for International Cooperation in the post-tsunami support program. It provided free electricity connections for approximately 33,000 households, including in the tsunami resettlement housing schemes.

9 This project

will draw from lessons learned and good practices in the implementation of the JFPR Power Fund for the Poor project, which provided microcredit support for electricity connection of rural poor communities,

10 and

from similar experiences elsewhere. The activities will be implemented in the Ampara District in the Eastern Province. Based on information provided by local authorities, including the heads of the Grama Niladari (the smallest administrative units under the divisional secretariats), and verified by locally-based NGOs and the CEB, a list of deprived and vulnerable households will be prepared. Beneficiaries from poor families will be proposed by the divisional secretariats, certified by the district secretariats and submitted to the PIU for consideration. Free connectivity for selected community centers providing services to rural communities will be considered.

(b) Enhancing CEB training skills and service delivery in the Eastern Province:

Three sets of training opportunities will be offered for:

(i) Building the capacity of the CEB training department

This will involve the formation of a team of mostly Tamil-speaking trainers (15), to strengthen the capacity of the CEB training department to provide training in the field in the Tamil language, which is used by the two main ethnic minority groups that live in the Ampara District, i.e. the Tamils and the Muslims.

11 A team

of 15 additional trainers (8 full-time and 7 part-time trainers) will be deployed in the field until the

7 The women‘s development offices are under the Ministry of Women and Social Welfare. The training centers are

under the Ministry of Local Development and the Department of Cottage and Village Industries. 8 Deprived and vulnerable households include households that are living below the poverty line, war widows, households headed by poor single women, and households headed by disabled men and women.

9 Under the STAART project, 15,640 new house connections were provided and 17,162 existing connections were

restored. 10

Lessons include targeting issues, such as the non-participation of eligible households in the Power Fund for the Poor; the need for demand-driven interventions focusing on end users; and better assessment of microfinance institutions to ensure that their overall project portfolios are suited to the ADB project aims and activities.

11 According to the government‘s population data (2007), the ethnic composition of Ampara District is: Muslims (Tamil speaking), 44%; Tamils, 18.3%; and Sinhalese, 37.5%. Thus, the majority of the people are Tamil speakers.

48 Appendix 8

completion of the project to support the implementation of the CEB-related training activities in the community, including the training of construction and maintenance crews.

12 This team will initially target

the Eastern Province and later extend its services to the Tamil-speaking Northern Province, thus generating additional benefits from the project. Specific measures will be designed and implemented to promote women's participation in the training team and to ensure that the training packages offered are gender-sensitive. Courses will be offered by the CEB training department at its training centre in Colombo, specializing in electricity distribution and transmission, and at the Castlereagh Training Centre in Hatton, Central Province, specializing in power generation. Both centres provide courses for the general public on a cost-recovery basis.

13

(ii) CEB-related training

This will involve the training of approximately 1,500 people (target: 30% women) from deprived and vulnerable households in the Eastern Province in CEB-related skills through a range of modules, which include (i) construction and maintenance of service connections, bare and insulated low-voltage overhead electricity distribution lines, overhead medium voltage distribution lines and distribution substations; (ii) vegetation clearing in overhead distribution lines; (iii) disconnection of consumer electricity supply; and (iv) household electricity meter reading. The training will fall under two categories: (i) on-the-job training of crews to be trained in rotation; and (ii) formal training, involving class-room teaching and on-site practical training, four training modules. This training will create a pool of service providers (contractors) eligible for CEB- and energy sector-related employment.

(iii) Energy-related livelihood training

This will involve training of 750 local community members (target: 30% women) in the Ampara District in TV, mobile phone repairs; household equipment repairs; sawing machines operations; three-wheelers' repairs. This will be done through existing training institutions and through links with relevant government agencies, such as the Industrial Development Board, the Department of Small Industries, and the Agricultural Department. Beneficiaries from deprived and vulnerable households will be identified through CBOs (including women rural development societies) for skills training in processing food and agricultural products, carpentry, sawing, hand-loom manufacturing, and tailoring. Electrical appliances and material will be provided, based on the results of the surveys.

(iv) Awareness-raising on efficient use of energy for newly electrified households

The strategy will include raising the awareness of an estimated 12,000 newly electrified households on (i) safe and efficient use of electricity (i.e. use of compact fluorescent lamps; (ii) energy-related livelihood opportunities; (iii) energy consumption habits and patterns for household tasks, and: (iv) women community motivators. Local consultants will support the implementation of these activities.

12

The full-time trainers will be electrical engineers of supervisory grade, equivalent to the electrical superintendents in the CEB. The part-time trainers will be qualified and experienced engineers or electrical superintendents with relevant background and experience.

13 In Sri Lanka, there are national vocational qualification standards available in technical and non-technical areas. CEB is an authorized assessor for national vocational qualification candidates and performs tests. CEB tracks are as follows: (a) technician track (trainee technical mate; semi-skilled workers; skilled workers), with limited representation of women [referred to as 'gangs', led by a skilled worker]; (b) supervisor track (electrical superintendent; engineer; chief engineer; (c) management track: deputy general manager; and (d) clerical grades (office employees), 80% women. Curriculum is based on yearly training needs assessment. One of the critical issues is the availability of Tamil-speaker trainers. CEB employees' training in the Tamil language resumed in 2010, with the use of translators.

Appendix 9 49

PROCUREMENT PLAN Basic Data

Project Name: Improving Gender-Inclusive Access to Clean and Renewable Energy in Bhutan,

Nepal and Sri Lanka Countries: Bhutan, Nepal, Sri Lanka Executing Agency: Asian Development Bank

(ADB) – South Asia Region Department (SARD) JFPR Grant Amount: $3,000,000 Grant Number: 44135 Date of First Procurement Plan: August, 2010 Date of this Procurement Plan: August, 2010

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

1. Project Procurement Thresholds

1. Except as the 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 for Goods Above 100,000 but below 500,000 Shopping for Goods Below 100,000

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

National Competitive Bidding (NCB) for Goods

Prior/Post NCB requires prior review for the 1

st batch [Project Administration

Instructions (PAI) 3.04, para. 12] Shopping for Goods Post

Recruitment of Nongovernment organizations

Quality- and Cost-Based Selection Prior

Recruitment of Individual Consultants

Individual Consultants Prior

3. Goods and Works Contracts Estimated to Cost More Than $1 Million

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

General Description

Contract Value

Procurement Method

Prequalification of Bidders (y/n)

Advertisement Date (quarter/year) Comments

None None

4. Consulting Services Contracts Estimated to Cost More Than $100,000

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

General Description Contract Value Recruitment Method

Advertisement Date

(quarter/year)

International or National Assignment

Comments

Component A: Regional review of pro-poor and gender-inclusive energy sector policies and programs

Nongovernment Organization (NGO)

360,000 Quality- and Cost-Based

Selection (QCBS)

1st qtr 2011 International Quality Cost

Ratio 80:20

50 Appendix 9

General Description Contract Value Recruitment Method

1

Advertisement Date

(quarter/year)

International or National Assignment

Comments

Component B: Country-specific pilot interventions supporting gender-inclusive access to clean and renewable energy

Bhutan

National NGO 190,000 Quality- and

Cost-Based Selection (QCBS) (Biodata)

1st qtr 2011 National Quality Cost

Ratio 80:20

Nepal

National NGO 272,300 QCBS

(Biodata) 1

st qtr 2011 National Quality Cost

Ratio 80:20

Sri Lanka

National NGO 211,200 QCBS

(Biodata) 1

st qtr 2011 National Quality Cost

Ratio 80:20

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

5. 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 Method

Comments

Direct Interventions (Component B)

Bhutan

Equipment (tools and safety equipment)

204,590 Various

Shopping

Individual consultant 40,000 1 Individual consultant selection (ICS) (international assignment)

Sri Lanka

Equipment (tools and safety equipment)

118,335 Various Shopping

Individual consultants for PIU

1

51,000 2 ICS (national

assignment)

Full-time trainers 67,200 8 ICS (national

assignment)

Part-time trainers (1,500 person-days)

37,500 Various ICS (national

assignment)

B. Indicative List of Packages Required Under the Project

6. The following table provides an indicative list of all procurement (goods, works, and consulting services) over the life of the project.

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Domestic Preference Applicable

Comments

Goods

(a) Equipment (tools and safety equipment)

204,756 Various Shopping

(b) Equipment (tools and safety equipment)

118,335 Various Shopping

1 Project Coordinator and Social and Community Development Officer.

Appendix 9 51

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Domestic Preference Applicable

Comments

Consulting Services

(a) Individual consultant (Bhutan)

30,600 1 ICS (international assignment)

Biodata

(b) Nongovernment organization (NGO)

520,800 1 QCBS (international assignment)

Biodata

(c) NGOs 673,500 3 QCBS (national assignment)

Biodata Quality Cost Ratio

80:20

(d) Sri Lanka Project Implementation Unit (PIU) individual consultants

51,000 2 ICS (national assignment)

Biodata

C. National Competitive Bidding (Bhutan)

1. General

7. The procedures to be followed for national competitive bidding shall be the open tendering/bidding method set forth in the Procurement Manual, Rules and Procedures 2007 issued by Finance Minister of the Royal Government of Bhutan with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of ADB‘s Procurement Guidelines (2010, as amended from time to time).

2. Registration (i) Bidding shall not be restricted to pre-registered firms under the national

registration system of the Construction Development Board (CDB), and such registration shall not be a condition for the submission of bids in the bidding process.

(ii) Where registration is required prior to award of contract, bidders (i) shall be allowed a reasonable time to complete the registration process; and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

3. Prequalification

8. Postqualification shall be used unless prequalification is explicitly provided for in the loan agreement/procurement plan. Irrespective of the procedure applied (whether prequalification or post-qualification), no domestic or foreign contractor shall be precluded from participation.

9. If prequalification is undertaken, the prequalification criteria should include "Eligibility Requirements," "Financial Situation," "Pending Litigation," and "Experience." Technical Capacity (personnel and equipment) should not be part of the prequalification criteria.

52 Appendix 9

10. A minimum period of 28 days shall be allowed for the preparation and submission of prequalification applications. The 28-day period is to be counted from either (i) date of publication of the prequalification invitation in a local newspaper or website, or (ii) commencement date for issue of the prequalification documents to interested parties, whichever of the two dates is the latest up to the date set for the deadline for submission of the prequalification applications.

4. Procurement Process 11. The one envelope process shall be used unless two-stage process is explicitly provided for in the loan agreement/procurement plan.

5. Advertising

12. 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 on ADB‘s website via the posting of the Procurement Plan.

6. Bidding Documents 13. Procuring entities shall use standard bidding documents acceptable to ADB for the procurement of goods, works, and related services, based ideally on the standard bidding documents issued by ADB.

7. Packaging 14. Slicing or splitting of contracts within a package shall not be used to change the contract sizes and the corresponding methods of procurement indicated in the loan agreement/procurement plan.

8. Bid Security and Performance Security

15. Where required, bid security (earnest money), retention money (or security deposit), and performance security (or performance guarantee) shall be in the form of a demand draft, certified check, letter of credit, or bank guarantee from a reputable bank.

16. The terms and conditions of bid security as well as retention money and performance security shall be clearly specified in the forms provided and/or conditions of contract in terms of periods of validity and grounds for forfeiture, or release of the bank guarantees, or refund of the cash security deposits.

9. Preferences

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

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

Appendix 9 53

10. Rejection of All Bids and Re-bidding

17. Bids shall not be rejected and new bids solicited without the ADB‘s prior concurrence.

11. Low Bids and Unbalanced Bids

18. Bids shall not be rejected solely because the bid price (a) is lower by a certain percentage of the contract cost estimate or (b) seriously unbalanced or front loaded. Instead of rejection of the bids, the bidder whose bid is determined to be the lowest evaluated substantially responsive bid may be required by the executing agency/implementing agency to provide a higher performance security to a level sufficient to protect the executing agency/implementing agency against financial loss in the event of default of the successful bidder under the contract.

12. Participation by Government-Owned Enterprises 19. Government-owned enterprises in Bhutan shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity or the project executing agency or implementing agency.

13. Member Country Restrictions 20. Bidders must be nationals of member countries of ADB, and offered goods, works, and services must be produced in and supplied from member countries of ADB.

14. Exclusion of Bidders 21. Exclusion of bidders for reasons cited in paragraph 2.1.1.2 of the Bhutan Procurement Manual, including inclusion on national sanction lists may be applied only with prior approval of ADB. Rejection of bids on account of "past poor performance" of bidders shall also be subject to ADB's prior approval.

15. Disclosure of Decision on Contract Awards 22. At the same time that notification on award of contract is given to the successful bidder, the results of bid evaluation shall be published in a local newspaper or a well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each bidder who submitted a bid, (ii) bid prices as read out at bid opening; (iii) name of bidders whose bids were rejected and the reasons for their rejection, and (iv) name of the winning bidder, and the price it offered, as well as duration and summary scope of the contract awarded. The executing agency/implementing agency/contracting authority shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected.

D. National Competitive Bidding (Nepal)

1. General

54 Appendix 9

23. The procedures to be followed for national competitive bidding shall be those set forth in Financial Administration Rules, 1999, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of ADB‘s Procurement Guidelines.

2. Prequalification

(i) Normally, post-qualification shall be used unless prequalification is explicitly

provided for in the loan agreement/procurement plan. Irrespective of whether post qualification or prequalification is used, eligible bidders (both national and foreign) shall be allowed to participate.

(ii) Qualification criteria (in case pre-qualifications were not carried out) shall be stated in the bidding documents and, if a registration process is required, a foreign firm declared as the lowest evaluated bidder shall be given a reasonable opportunity of registering, without let or hindrance.

3. Bidding Period

24. The minimum bidding period is twenty-eight (28) prior to the deadline for the submission of bids.

4. Bidding Documents (i) The bidding documents provided with the government‘s Procurement Manual

shall be used to the extent possible. The first draft English language version of the procurement documents shall be submitted for ADB review and approval, regardless of the estimated contract amount, in accordance with agreed review procedures (post and prior review). The ADB-approved procurement documents will then 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.

(ii) Bid documents shall be made available, by mail, in person, or electronically to all who are willing to pay the required fee.

5. Preferences

25. No domestic preference shall be given for domestic bidders or for domestically manufactured goods.

6. Advertising

26. Invitations to bid shall be advertised in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of twenty-eight (28) days for the preparation and submission of bids. 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 on ADB‘s website via the posting of the Procurement Plan.

7. Performance Security and Bid Security

(i) If required, bidders/contractors shall provide bid/performance security as indicated in the bidding/contract documents.

Appendix 9 55

(ii) A bidder‘s bid security shall apply only to a specific bid and a contractor‘s performance security shall apply only to the specific contract under which it was furnished.

8. Bid Submission

27. There shall not be any restrictions on the means of delivery of the bids.

9. Bid Opening and Bid Evaluation

(i) Bids shall be opened in public in one place, immediately after the deadline for submission of bids.

(ii) Evaluation of bids shall be made in strict adherence to the criteria disclosed in the bidding documents, in a format and specified period agreed with ADB.

(iii) Foreign bidders shall not be precluded from bidding. (iv) No firm, regardless of its class of registration, shall be denied participation in

bidding for reasons unrelated to its capability and resources to successfully perform the contract, nor shall it be disqualified for such reasons.

(v) Contracts shall be awarded to the lowest evaluated bidder whose offer has been determined to be the lowest evaluated bid and is substantially responsive to the bidding document, and who meets the qualifying criteria set out in the bidding documents.

(vi) Post-bidding negotiations shall not be allowed with the lowest evaluated bidders or any other bidders.

(vii) Bids shall not be rejected merely on the basis of a comparison with an official estimate, without the prior concurrence of ADB.

(viii) Split award or lottery in award of contracts shall not be carried out. When two or more bidders quote the same lowest price, an investigation shall be made to determine any evidence of collusion, following which: (i) if collusion is determined, the parties involved shall be disqualified and the award shall then be made to the next lowest evaluated and qualified bidder; and (ii) if no evidence of collusion can be confirmed, then fresh bids shall be invited after receiving the concurrence of ADB.

(ix) Extension of bid validity shall not be allowed without the prior concurrence of ADB.

(x) Bids shall not be invited on the basis of percentage premium or discount over the estimated cost.

10. Rejection of All Bids and Rebidding

(i) Contracts shall not be awarded on the basis of nationally negotiated rates. (ii) Bids shall not be rejected and rebidding shall not be carried out without the prior

concurrence of ADB.

11. Participation of Government-Owned Enterprises

28. Government-owned enterprises in Nepal shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the project executing agency or the project implementing agency.

12. ADB Member Country Restrictions 29. Bidders must be nationals of member countries of ADB, and offered goods, works, and

56 Appendix 9

services must be produced in and supplied from member countries of ADB.

E. National Competitive Bidding (Sri Lanka)

1. General

30. National competitive bidding shall conform to the provisions for "National Competitive Bidding" as prescribed in the Procurement Guidelines 2006 for Goods and Works issued in January 2006 by the National Procurement Agency, and the specific procedures prescribed by the Procurement Manual issued on March 2006, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of ADB‘s Procurement Guidelines.

2. Registration

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

(ii) Where registration is required prior to award of contract, bidders (i) shall be allowed a reasonable time to complete the ICTAD registration process and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

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

3. Prequalification

31. Postqualification shall be used unless prequalification is explicitly provided for in the loan agreement/procurement plan. When used for large or complex works contracts, i.e., turnkey, design and build, or management contracts, or for custom-designed equipment, industrial plants, and specialized services, prequalification evaluation shall not include the evaluation of equipment and personnel. This assessment shall be undertaken at the bid evaluation stage. Irrespective of the procedure applied (whether prequalification or postqualification), no domestic or foreign contractor shall be precluded from participation.

4. Advertising

32. 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 on ADB‘s website via the posting of the Procurement Plan.

5. Bidding Documents

33. Procuring entities shall use standard bidding documents acceptable to ADB for the procurement of goods, works, and consulting services, based ideally on the standard bidding documents issued by ADB.

6. Packaging

34. Slicing or splitting of contracts within a package shall not be used to change the contract sizes and their corresponding methods of procurement as approved in the Procurement Plan.

Appendix 9 57

7. Bid Security

35. Where required, bid security shall be in the form of a bank guarantee from a reputable bank.

8. Preferences

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

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

9. Procurement of Works

(i) Specifications for works may be based on specifications recommended by ICTAD, to the extent possible, but ICTAD approval shall not be required for adoption of specifications in a particular procurement activity.

(ii) The determination of the financial capacity of a bidder for award of the contract in postqualification evaluation shall take into account current contract commitments and shall not be confined, for domestic bidders, to the ICTAD registration.

10. Bid Rejection for Unrealistic Rates

36. Bids shall not be subjected to a test for unrealistic rates. No lowest evaluated and substantially responsive bid shall be rejected on the basis of comparison to rates, including but not limited to market, historical, or agency established rates, without prior approval of ADB.

11. Rejection of All Bids and Rebidding

37. Bids shall not be rejected and new bids solicited without the ADB‘s prior concurrence.

12. Price Negotiations

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

13. Participation by Government-Owned Enterprises

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

14. Member Country Restrictions

40. Bidders must be nationals of member countries of ADB, and offered goods, works, and services must be produced in and supplied from member countries of ADB.