government of the punjab project management unit (pmu …

EXPRESSION OF INTEREST (EOI) HIRING AN INDEPENDENT VALIDATION AGENCY (IVA)

PREQUALIFICATION DOCUMENT

The Project Management Unit (PMU), Energy Department intends to hire an Independent Validation Agency to satisfy the requirements of Asian Development Bank for the validation of Solar System being installed in 10861 schools of South Punjab and also for the validation of energy audits of 150 buildings. The validation requirements are set by the Asian Development and given in the prequalification document.

Expression of Interests (EOIs) are invited from the interested firms fulfilling the following minimum requirements.

i. The firms having International Program Lead, Environmental & Social Safeguards Expert, Gender Expert, Performance Auditing Expert, Monitoring & Evaluation (M&E) Expert, Power Sector Validator and whose qualifications, independence are acceptable to the Asian Development Bank.

ii. Certificate of registration with concerned professional body (PEC). iii. Copy of registration with Security Exchange Commission of Pakistan (SECP). iv. Copy of Registration with Income Tax Department / NTN / Sales Tax Number. v. Copy of registration with Punjab Revenue Authority (PRA). vi. List of permanent professional staff along with CVs or relevant core staff showing project wise experience with

exact time duration for each project. CVs of maximum 6 core staff members who will be made responsible for the project. Maximum size of each CV should be 4 pages.

vii. At least two (02) similar works completed by the firm during last ten (10) years. viii. Audited financial statements of accounts for the last three (03) years. ix. Annual turnover of Rs. 30.00 Million or above for last three years. x. A certificate / affidavit that the firm is not blacklisted by any public sector organization and has not been or

involved in litigation during the last ten (10) years with any public sector organization in & outside Pakistan.

The interested firms may purchase pre-qualification document @ Rs. 500/-(Non-refundable) immediately after the publication of this advertisement from the address given below.

The PQD details are also available on the website of the PPRA www.ppra.punjab.gov.pk and Energy Department www.energy.punjab.gov.pk.

The firms may submit the EOIs at the address given below within 15 days after the publications of this advertisement during working hours.

The RFP shall only be issued to shortlisted Consulting firms

Project Director

Project Management Unit (PMU),

Energy Department,

1/C, Block B, New Muslim Town, Lahore

Email: [email protected] Phone: +92-42-99332699

http://www.ppra.punjab.gov.pk/

mailto:[email protected]



A. Background

1. The Government of the Province of Punjab (GoPb) has initiated a Program for the increasing access to electricity to non-or poorly electrified areas. This Program includes the installation of Solar Photovoltaic Systems on roof top of schools in South Punjab. Government has requested Asian Development Bank (ADB) to co-finance a portion of the program. ADB through its result-based lending (RBL) program modality has approved financing $87.69 million in November 2016. The ADB will support broader GoPb provincial government program for providing uninterrupted access to affordable and clean energy, as set out in the respective power sector master plan. The RBL program will support the provincial program, notably those portions that cover community-based renewable energy initiatives. The scope of work for IVA under the RBL program will be as under:

Solarization of schools: The scope of KPUP Southern Punjab involves the solarization of 10,861 schools in South Punjab. The installed solar plants will provide electricity to more than 1.3 million students, power generation capacity from clean energy resources in increase by an additional amount of approximately 17 MW including 30% girl’s schools. The IVA will validate the results related to the solarization of schools and submit report for approval of ADB. For list of schools please see Appendix 5

Energy Audits of Public Identified Buildings

Punjab Energy Efficiency and Conservation Agency has conducted energy audits of 150 identified buildings. These buildings were identified by Punjab Energy Department. The IVA will validate the results of Energy Audited Buildings and submit report for approval to ADB.

The consultant will only proceed on each scope once given a “notice to proceed” by the client.

In addition, the detail of The RBL program will exclude activities that would be classified as category A under the ADB Safeguard Policy Statement (2009), and those that would involve procurement of works, goods, or services under contracts whose estimated value exceeds specified monetary amounts as per ADB’s RBL policy.

2. The Program major objectives shall be implementation of off-grid decentralized solar solutions for education in Punjab. The targets for each of the major objectives are defined in the program indicators which will be assessed during and after implementation. The Program is to be partially financed by a Results Based Loan from ADB where the degree of completion of special indicators (Disbursement Linked Indicators - DLIs) shall determine the amounts to be disbursed at each stage as specified in Appendix 1.



2. The GoPb has appointed Energy Department (ED) as the Executing Agency (EA) which shall

implement a Monitoring and Evaluation System supported by dedicated software (Program Performance Monitoring System – PPMS) that shall, among others, accrue and monitor for the progress of the different DLIs. As agreed between the GoPb, ADB, an Independent Verification Agency (IVA) will be engaged to provide independent results verification of the progress and / or completion of the indicators linked to the Program. The IVA will independently verify the results of the indicators from the Monitoring and Evaluation (M&E) and the DLIs under the ADB results-based lending (RBL) program. Overall, the IVA will prepare a report that shall be submitted to ED for approval and later distribution with the ADB. In particular, the IVA will validate the ED’s results of (i) base line data verification; ii) the indicators in the program Design and Monitoring Framework (DMF) (Appendix 2), and DLIs (Appendix 1) ; (iii) the Program Action Plan (Appendix 3); and (iv) compliance with the RBL and program agreements.

3. The IVA’s Team will be supervised by an experienced and international Monitoring and

Evaluation (M&E) Leader who will monitor the overall progress versus the program indicators. The IVA will ensure adequate consultations on each independent verification deliverable in the form of report review, one-on-one meetings, focus group meetings, site visits or broad stakeholder consultations.

B. Scope of Work, Outputs and key Activities

4. The outputs are selected from ED key performance indicators and DLIs; their achievement will set the progressive steps to meeting the overall program outcome target. The expected outputs from the IVA are:

a. Task 1: Base line Verification and Confirmation of Compliance with PAP Actions. The

IVA will verify the base line information and confirm the compliance with different actions agreed between ADB with ED. IVA experts will collect the existing baseline information from ED and project management consultants (PMC), validate the information collected and update/correct the information where discrepancy exists with support from ED and PMC consultants. Level of detail for the Baseline data will be defined as necessary references for ascertaining the achievement against each of the results of the program. Confirmation of compliance with PAP actions will include an assessment of level of compliance supported with relevant documents as proof of compliance.

b. Task 2: Results Verification - Verify relevant pre-agreed indicators as evidence of achievement of results claimed. In order to validate results claimed by ED, the IVA will verify all pre-agreed indicators as evidence of the achievement of the results claimed, through an exhaustive desk review of the ED’s records. Specifically, this review is intended to certify that (i) verified results claimed are consistent with output definition specified in Appendix 1, (ii) claimed output reimbursement is consistent with agreed unit reimbursement, and (iii) facilities are in operation and handed over to operators as per business model and operating successfully and delivering the outputs as agreed in the DLIs framework and DMF. For verification of performance indicators, verification protocols will be applied as specified in Appendix 1. In addition, IVA will also confirm that ED’s monitoring system is working effectively and evaluating the success of the project.



c. Task 3: Physical Verification. The IVA will carry out on-site random physical

verification of at least 30% of project sites for which disbursement is requested. For each [output], the IVA will physically certify that it is properly installed and functioning according to the applicable regulation/required standards stated in the Operational Manual, and will verify the plant outputs and performance indicators of each as specified in the DLIs in Appendix 1 according to verification protocols as defined in Appendix 1. In addition, the IVA will ask a short questionnaire on 1) service quality, and 2) gender aspects, (i.e. the impact of program on the lives of women/girls). Sequence of the work may be as follows:

i) Physical verification of completion and functionality of installations

ii) Test/verification of conformity of installations with applicable law or regulation, effective operation of the plants.

iii) Pictures of each verified installation. iv) Questions to beneficiary members.

d. Task 4: Sustainability of Quality Service Verification. Verify plants are operational and

service delivery is as per acceptable standards, through both documentation review and physical checks. Verify that adequate operations and maintenance procedures are set up, and implemented by suitably trained personnel. Verify that all provisions concerning social and environmental safeguard according to PAP are fulfilled.

5. Implementation Arrangements and Support from ED. The ED in Punjab is the executing agency for the RBL program. Having the responsibility for overall program results monitoring and evaluation. A specific M&E Team is set up within ED’s structure. Multiple data will be collated and analyzed by the dedicated M&E staff who, in turn, will report to the project director. While ED’s evaluation capacity and established procedures are reasonable the program will bring added value by helping ED to further strengthen its monitoring and evaluation methodologies and capacity through the assistance of a third-party verification agent (IVA).

6. Verification Protocols. In line with the guidelines for RBLs, ED will retain an IVA on terms of reference acceptable to ADB to verify the achievement of DLI results. The IVA will verify results through financial audit, procedural verification, and physical inspection that will test the accuracy and quality of results claimed by ED. In accordance with good audit practice, physical verification will take place against a sampling framework and frequency. The level of calibration will be detailed in the terms of reference or verification protocol that is satisfactory to ADB. The IVA will use the verification protocol as the basis for preparation of a program results verification report that will be submitted to ADB by ED. The IVA will also adopt M&E practices in line with international standards when conducting audits or other work as appropriate.

7. Disbursements. The loan proceeds will be disbursed against submission` to ADB of the IVA’s program results verification report on the achievement of DLIs. ED will present the program results verification report to ADB on regular basis. ADB will use the program results verification report to determine the amount of the eligible disbursements to be made based on the results achieved.

8. Team Composition. The IVA team will compose of the following experts who will be responsible, as a team, to deliver all four Tasks as mentioned in para 4 above.



The consulting team will be hired intermittently over a period of 12 months with the following duration for each section of the project.

Team Composition and Number of

Experts

Duration for Solarization of

Schools

Duration for Energy

Audit

Program Lead - INTERNATIONAL One Expert for 25 days One Expert for 5 days

Environmental and Social Safeguards

Expert - NATIONAL

One Expert for 60 days One Expert for 10

days

Gender Experts - NATIONAL One Expert for 60 days Not applicable

Performance Auditing Experts -

NATIONAL


days

(If required)

Monitoring and Evaluation (M&E) Experts

- NATIONAL


days

Power Sector Validators - NATIONAL Two Experts for 60 days

(each)

One Expert for 15

days

It is the consultant’s responsibility to ensure adequate local manpower is mobilized and available for carrying out surveys, site visits etc.

Program Lead (international) The Team Leader represents the consulting firm in all contract-related matters, such as contractual, personnel, scheduling and technical performance issues. He or she will attend meetings with the ED, ADB and other institutions and individuals as required, to discuss the status of contract implementation, provide general direction and support to the Consultant Team, and assist in the quality assurance of verification reports. The Consultant should be M&E expert / RBL specialist having master degree and at least 10 years of work experience in managing official development assistance projects preferably in the Asia and Pacific region. The Consultant must have very good analytical skills and be excellent in writing and presenting in English. Experience of working in the energy sector of Pakistan will be a merit. The Team Leader’s duties, include, but are not limited to:

(i) Liaising with ED and keeping ADB apprised of any issues or concerns that could impact project performance and/or completion, and ensuring direction of the Consultant’s work toward achieving the intended objectives and timelines;

(ii) Coordinating the inputs per agreed work plans, advising team members of changes to the work plans;

(iii) Ensuring outputs of team members are in accordance with the contract’s terms of reference



and ADB quality expectations, and reviewing, commenting on, and approving such outputs, as needed;

(iv) Ensuring all contracted deliverables are prepared in a timely manner, and managing project scheduling;

(v) Briefing team members on (a) quality management, (b) safety and security issues, and (c) integrity and professional conduct, and keeping the team updated on changes in the operating environment or procedures;

(vi) Approving timesheets and expense claims of team members, managing any emerging issues, and leading the firm’s work on contract administration;

(vii) Submitting the inception report, and completion report to ADB for approval. The completion report shall include lessons learned, a sustainability plan, and other recommendations that would ensure that the gains achieved are fully institutionalized; and

(viii) Developing and submitting when required (in case targets are met earlier than scheduled or partial completion and ED needs to submit withdrawal application more than once a year) program results validation reports in accordance with agreed formats, as per the details required in para 4 above and Appendix 1, and based on inputs by the team members as required by ED and ADB.

Environmental and Social Safeguards Expert (national)

The safeguard expert will validate health, safety and environmental and social safeguards compliance with requirements as set for in the program design and in the Program Action Plan. He or she should have a university degree in Environmental Sciences or Environmental Engineering/Management or related social sciences and prior experience of 8 years in environment and social safeguards related with civil works and energy sector. The Consultant/expert must have very good analytical skills and be excellent in writing and presenting in English. Experience of working in Pakistan with ED and/or ADB will be a merit. The specialist/expert will conduct these tasks:

(i) Review the assessments from an environmental safeguards and climate change adaptation perspective as agreed with the Team Leader;

(ii) Review the assessments from a social adaptation perspective as agreed with the Team Leader; and

(iii) Validate the environmental and social safeguards and plans implementation and confirm if they are in line with the actions agreed in the program action plan and program implementation document (PID) attached as Appendix 4.

(iv) Confirm no project included in the verification list comes under activities that would be classified as category A under the ADB Safeguard Policy Statement (2009).

Gender Expert (National)

He or she should have a university degree, preferably with a Master degree in social sciences or gender studies and prior experience of 7 years in gender mainstreaming across sectors preferably in the energy and renewable energy sectors, with demonstrated ability to engage in and implement community-driven/based approaches. Experience of working in Pakistan with ED and/or ADB will be a merit. The specialist will conduct these tasks:

(i) Perform field surveys to assess the impact of the project in terms of gender; and

(ii) Validate program results in terms of the gender indicators, as mentioned in Appendix 1 and as detailed in para 4 above, performance audits focusing on the effectiveness of its internal



control system under the M&E team and the results.

Performance Auditing Expert (National)

The auditor/financial analyst will be a well-experienced professional with experience in the power sector and also function as a deputy Team Leader and represent the Team Leader in his/her absence on all tasks including consulting firm in all contract- related matters, such as contractual, personnel, scheduling, and technical performance issues. He or she will attend meetings with ED, ADB, and other institutions and individuals as required, to discuss the status of contract implementation, provide general direction and support to the Consultant Team, and assist in the quality assurance of project deliverables. The Consultant will have a finance-related postgraduate degree and at least 7 years of work experience in project performance auditing preferably in power project monitoring, and having some exposure to auditing for bilateral, multilateral, and/or government agencies. The Consultant must have very good analytical skills and be excellent in writing and presenting in English. Experience of working in Pakistan with ED and/or ADB will be of merit. The auditor/financial analyst’s duties, include, but are not limited to:

(i) Review ED system audits focusing on the effectiveness of its internal control system under its M&E Team;

(ii) Perform field surveys to assess the impact of the project and obtain framework information required for the validation of the performance audit reports; and

(iii) Undertake all the necessary tasks, as mentioned in para 4 above, related to the audit, performance audit and financial due diligence that is required in the monitoring and evaluation of the results indicators and achievement of the DLIs.

Monitoring and Evaluation (M&E) Expert (national)

The M&E experts will attend meetings with the ED, ADB and other institutions and individuals as required, to discuss and assist in the quality assurance of the status of the indicators. The Consultant should be M&E expert / RBL specialist having Master degree and at least 5 years of work experience in managing official development assistance projects. The Consultant must have very good analytical skills and be excellent in writing and presenting in English. Experience of working in Pakistan with ED and/or ADB will be a merit. The M&E analyst’s duties, include, but are not limited to:

(i) Perform field surveys to assess the impact of the project and obtain framework information required for the validation of the M&E reports;

(ii) Conduct an analysis of ED’s internal monitoring, evaluation, and verification systems and make recommendations for improvements; and

(iii) Undertake all the necessary tasks, as mentioned in para 4 above, related to the validation of program results and DLIs as per verification protocols provided in Appendix 1. Support the team leader in developing validation report as per international standards for such programs. Evaluate the program results and its indicators to verify the targets set in DMF and the achievements of the DLIs.

Power Sector Validators (national).

The power sector validators will attend meetings with the ED, ADB and other institutions and individuals as required, to discuss and assist in the verification of the targets set for each indicator and results as envisaged for each DLI, as well as confirmation of service quality assurance and operational sustainability. The power sector validator will be an experienced professional with experience in the power sector. The Consultant will have a power-related postgraduate degree



and at least 10 years of work experience in power plant performance verification/operations/quality assurance in the power sector. The Consultant must have very good analytical skills and be excellent in writing and presenting in English. Experience of working in Pakistan with ED and/or ADB will be a merit. The power sector validator’s duties, include, but are not limited to:

(i) Perform field surveys to assess the impact of the project, confirm it compliance with operational and performance standards, verify it delivers the outputs as confirmed in the project completion reports and obtain framework information required for the validation of the energy audit reports;

(ii) Conduct an analysis of program’s internal monitoring, evaluation, and energy performance verification systems and make recommendations for improvements; and

(iii) Undertake all the necessary tasks, as defined in para 4 above, related to the physical validation of project outputs and performance. Confirm figures and numbers relating to plant outputs, connectivity, service delivery and usage, and confirm maintenance schedules and tariff collection regime and provisions for contingencies and renewal are in place.

9. Deliverables

The inception report for each phase will be prepared once the “notice to proceed” is issued by the client

a) Solarization of Schools: Inception Reports: The Consultant shall deliver the first Report within 15 days of mobilization,

including but not limited to providing detailed verification methodology, verification protocol, model for data gathering and analysis, draft template for Program Results Verification Report, status of compliance with PAP actions, status of operationalization of PPMS software, status of monitoring and evaluation setup at ED PMU, IVA updated work program and travel schedule.

Program Results Verification Reports: The Consultant shall prepare for ED and the ADB’s review reports following meeting of each DLI, the prior achievement of DLI, and results indicator targets through a program results verification report the structure of which is to be agreed upon by ED, and ADB and including all four tasks as mentioned in para 4 above.

b) Energy Audits

Inception Reports: The Consultant shall deliver the first Report within 05 days of mobilization, including but not limited to providing detailed verification methodology, verification protocol, model for data gathering and analysis, draft template for Program Results Verification Report, status of compliance with PAP actions, status of operationalization of PPMS software, status of monitoring and evaluation setup at ED PMU, IVA updated work program and travel schedule.

Program Results Verification Reports: The Consultant shall prepare for ED and the ADB’s review reports following meeting of each DLI, the prior achievement of DLI, and results indicator targets through a program results verification report the structure of which is to be agreed upon by ED, and ADB and including all four tasks as mentioned in para 4 above.

10. Duration of Contract. The duration of the contract will be 12 months on intermittent basis.

Duration for each portion of contract is mentioned in para 8.



11. Payment Schedule. Contract will output based and the following payment milestone will apply:

a) For 10861 Schools Solarization

Sr. Payment Deliverable Payment

Percentage

Condition

1. Upon approval of inception report 20% Report Approval from

PMU and ADB

2. Submission of progress report (Each

progress report will include 25% of the

schools)

80% Payable in 4 equal

installments upon

approval of each

progress report by ED

and ADB

Total 100%

b) Energy Audit of buildings

Sr. Payment Deliverable Payment

Percentage

Condition

1. Upon Mobilization and approval of

inception report

20% Acceptance of

inception report by

PMU and ADB

2. Submission of final report as per

Appendix 1 and any other relevant

document(s)

80 % Upon approval of final

report by ADB and

ED

Total 100%



PART C: ELIGIBILITY REQUIREMENTS OF FIRMS

Please provide information about the eligibility of your organization, as per criteria defined above, using the

following form. Attach relevant documents where required.

Code Requirements Response

A.1

Please mention the name of Registration / Affiliation Authority / Authorities and provide Proof of Registration of your organization with any Government authority. In case of consortium partners please also provide name of Registration / Affiliation Authority / Authorities and provide copy / copies of registration or Certificate / Proof of Registration with any Government authority of each partner, if available.

Name of Organization/country Name of Registration Authority

A.2

Does your organization have valid National Tax Number (NTN) or Free Tax Number (FTN)? Attach Proof.

☐Have NTN in the name of Organization

☐Have FTN in the name of Organization

☐Have applied for NTN or FTN.

☐Do not have NTN or FTN

A.3 Does your organization have valid registration with Punjab Revenue Authority (PRA)? Attach Proof.

☐Have registration

☐Have not registration

☐Have applied for registration

☐Have not applied for registration

A.4

Please check the appropriate box. Attach copies of audited financial statements of last three years issued by a licensed Chartered Accountant.

☐Accounts of last three financial years audited by a licensed

Chartered Accountant

☐Accounts of last three financial years not audited

(Public sector organizations / institutions have exemption of this condition)

A.5 Is your organization has ever been black listed by any organization? Provide affidavit

☐We solemnly declare that our organization has never been

blacklisted.

☐Our organization or any member of consortium has been

blacklisted once or more than once.

A.6

Is your organization or any member of consortium has ever been involved in litigation with any public sector organization in & outside Pakistan? Provide Affidavit

☐We solemnly declare that our organization or any member of

consortium has never been involved in litigation with any public sector organization in & outside Pakistan.

☐ Our organization or any member of consortium has been involved

in litigation with any public sector organization in & outside Pakistan once or more than once.



APPLICANT DECLARATION

I, (Name of authorized person), hereby certify that:

The information provided in this document is factually correct in all material respects.

I am duly authorized to submit this application on behalf of ( N a m e o f O r g a n i z a t i o n )

Name and Designation:

Date and Place:

Mobile & E-Mail:

Signature:

A.7

Is your organization completed two (2) similar assignments during the last ten (05) years? Provide evidence.

☐Yes

☐No

A.8

Is your organization have annual turnover of Rs. 30.0 Million and above? Provide documentary evidence.

☐Yes

☐No

A.9

If you have previously worked with this office, has your contract been cancelled (in part or in full)? Or was the payment withheld for non-fulfillment of contract

☐Yes

☐No



Annex-A

EOI CHECK LIST

Sr. No Required Documents Checkbox

1 Copy / Copies of Registration(s) / Affiliation certificates attached ☐

2 National Tax Number / Free Tax Number Certificates in the name of organization mentioned and certificate attached

☐

3 Copy of registration with PRA attached ☐

4 Audited Financial Statements/Accounts Statements showing Financial Position

of Last Three Years; (Public organizations have exemption of this condition) ☐

5 Letter of Association / Consortium, if applicable attached. ☐

6 Declaration by authorized person to submit the EOI signed & attached. ☐

7 CVs of Minimum Six (06) Core Staff Members attached ☐

8

Certificate/Affidavit that the firm is not blacklisted by any public sector organization and has not been or involved in litigation during the last ten (10) years with any public sector organization in & outside Pakistan attached.

☐

9 Any other document attached, please specify.

☐



Annex B

Curriculum Vitae (CV) for Proposed Professional Staff

1. Proposed Position:

2. Name of Firm [Insert name of firm proposing the staff]:

3. Name of Staff [Insert full name]:

4. Date of Birth: Nationality:

5. Education [Indicate college/university and other specialized education of staff member, giving names of

institutions, degrees obtained, and dates of obtainment]:

6. Membership of Professional Associations:

7. Other Training [Indicate significant training since degrees under 5 - Education were obtained]:

8. Countries of Work Experience: [List countries where staff has worked in the last ten years]:

9. Languages [For each language indicate proficiency: good, fair, or poor in speaking, reading, and writing]:



10. Employment Record [Starting with present position, list in reverse order every employment held by staff member

since graduation, giving for each employment (see format here below): dates of employment, name of employing

organization, positions held.]:

From [Year]: To [Year]:

Employer:

Positions held:

11. Detailed Tasks Assigned

[List all tasks to be performed under this assignment]

12. Work Undertaken that Best Illustrates Capability to Handle the Tasks Assigned

[Among the assignments in which the staff has been involved, indicate the following information for those

assignments that best illustrate staff capability to handle the tasks listed under point 11.]

1) Name of assignment or project & Location:

Cost of Project:

Date of Start: Date of Completion:

Actual time spent on the project: in months



Client:

Main project features:

Positions held:

Activities performed:

Assignment’s Time Period:


Cost of Project:



Client:


Positions held:




Cost of Project:



Client:


Positions held:




Cost of Project:



Client:


Positions held:






Cost of Project:



Client:


Positions held:



PART-D

EVALUATION/ SELECTION CRITERIA

Requirements

The interested firms should attach the following documents with their applications:

i. The firms having International Program Lead, Environmental & Social Safeguards Expert, Gender Expert, Performance Auditing Expert, Monitoring & Evaluation (M&E) Expert, Power Sector Validator and whose qualifications, independence are acceptable to the Asian Development Bank.

ii. Certificate of registration with concerned professional body (PEC). iii. Copy of registration with Security Exchange Commission of Pakistan (SECP). iv. Copy of Registration with Income Tax Department / NTN / Sales Tax Number. v. Copy of registration with Punjab Revenue Authority (PRA). vi. List of permanent professional staff along with CVs or relevant core staff showing project wise experience with

exact time duration for each project. CVs of maximum 6 core staff members who will be made responsible for the project. Maximum size of each CV should be 4 pages.

vii. At least two (02) similar works completed by the firm during last ten (10) years. viii. Audited financial statements of accounts for the last three (03) years. ix. Annual turnover of Rs. 30.00 Million or above for last three years. x. A certificate / affidavit that the firm is not blacklisted by any public sector organization and has not been or

involved in litigation during the last ten (10) years with any public sector organization in & outside Pakistan.



The firms who have not submitted the above information required as in EOI advertisement, may be excluded and the remaining

complying firms shall be evaluated according to the following criteria.

S/N Description Requirement / Points

1 Experience and standing of firm 30 points

a) Establishment of firm Points for 3 years 05 Points

Point for 4 years 07 points

(Max. 05 points) Point for 5 years 09 points

6 years & above 10 Points

b) Number of similar nature projects completed during last ten years (min. value of projects is 100 Million or above)

For every project 10 points

02 & more projects 20 points

c) Number of similar nature projects completed during last ten years (min. value of projects is 70 Million or above)

For every project 05 points

No marks are awarded for project less than specified limit.

02 & more projects 10 points

(Max. 20 Points)

2 Qualifications and competency of staff 60 Points

a)Qualification Masters/ Engineering (International/Local)

For each person 4 / 3

Relevant Experience:

a) 5 years and above For each person 02

b) 1 - 4 Years For each person 01

Relevant Project:

a) 3 - 4 Projects For each person 04

b) 1 - 2 Projects For each person 02

(Max 60 points) Points shall given to only one highest level of qualification

3 Financial Position of the firm 10 points

a) Average Annual Sales of last 03 years Over Rs.30 to 50 Million 05 Points

Over Rs.50 to 70 Million 07 Points

(Amount may be in Pak rupees or equivalent in USD)

Over Rs.70 - Rs.90 Million 09 Points

(Max. 10 Points) Over Rs.90 Million 10 Points

Total Points 100 Points

Note: Only firms scoring an aggregate of 65 % marks & above in evaluation of EOIs shall be pre-qualified / shortlisted for

the project.

***********

APPENDIX 1

Disbursement-Linked Indicator

Definition and Description of Achievement and Verification

Information Source and Time Frame

Verification Agency and

Procedure DLI 1. By 2021, access to electricity is provided to an additional 240,000 households and 2,600,000 students in un-electrified and poorly electrified areas. 2016 baseline: 0 All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Disbursement targets for KPP: Households: 2017: 40,000 2018: 80,000 2019:120,000 2020: 180,000 2021: 240,000 Students: 2017: 160,000 2018: 320,000 2019: 480,000 2020: 640,000 2021: 800,000

Disbursement targets for Punjab Students: 2017: 340,000 2018: 780,000 2019: 1,120,000 2020: 1,460,000 2021: 1,800,000

Definition: For MHP, the DLI refers to the total households connected to the MHP grids provided by the RBL program. For solar sources, the DLI refers to the total number of students in schools provided with solar electricity by the RBL program, to be obtained from education authorities.

Conditions for disbursement are met when (i) the total number of households provided with electricity by the program from MHPs equals or exceeds the annual cumulative target specified, and (ii) when the total number of students in beneficiary schools is equal to or exceeds the annual cumulative target specified. In KPP, MHP component counts for 80% of full disbursement and solar sources component counts for 20% of full disbursement. For example, if all the household targets are achieved but student targets are not, then 80% of the target amount allocated for KPP for that year will be disbursed.

Partial disbursement: The DLI is scalable and partial disbursement is allowed for each of the above components. If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement for that component. The following formula will be applied: Partial DLI disbursement = planned DLI disbursement for the period (actual achievement of the current period – targeted achievement of the previous period) / (targeted achievement of the current period – targeted achievement of the previous period).2

Disbursements are allowed for early or late achievement of the DLI. This means that the planned disbursement amount for a given year can be released when the set target is fully achieved, even if the achievement is a year or more late, as long as this is within the loan period. If the target achievement is early, early disbursement can be made.

KPP: PEDO reports drawn from its PPMS.

Punjab: EDP reports drawn from its PPMS. Frequency for reporting will be annual.

PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year first, from the administrative records. These will be the number of consumers per site and schoolchildren in connected schools in KPP and the number of schoolchildren in connected schools in Punjab. Second, the IVA will back this up with random spot checks of communities, and schools in field visits. Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip.

Within three weeks of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 2. By 2021, power generation capacity from clean energy sources is increased by an additional amount of 182 MW. 2016 baseline: 0 All targets are cumulative and provide the minimum threshold

Definition: Clean energy sources mean MHPs and solar plants installed by the RBL program in KPP, and solar plants installed by the RBL program in schools in

KPP: PEDO reports drawn from its

PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant

2 For each year, the baseline (representing 0% disbursement) is taken from the previous period’s planned target, while the current year’s target (representing

100% disbursement) is taken from the current year’s planned target.





Procedure for disbursement without prejudice to the arrangements for partial disbursement. Disbursement targets for KPP: 2017: 31 MW 2018: 61 MW 2019: 92 MW 2020: 122 MW 2021: 153 MW Disbursement targets for Punjab: 2017: 6 MW 2018: 12 MW 2019: 17 MW 2020: 23 MW 2021: 29 MW

Punjab, and the University of Bahawalpur. For each province, installed power generation capacity will be added up. There is no need to disaggregate by type of renewable sources.

Conditions for disbursement are met for each province when the total installed capacity from the above sources reach or exceed the megawatts specified in the annual target for that province.

Partial disbursement: The DLI is scalable and partial disbursement is allowed. If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement. The following formula will be applied: Partial DLI disbursement = planned DLI disbursement for the period (actual achievement of the current period – targeted achievement of the previous period) / (targeted achievement of the current period – targeted

3 achievement of the previous period). Disbursements are allowed for early or late achievement of the DLI. This means that the planned disbursement amount for a given year can be released when the set target is fully achieved, even if the achievement is a year or more late, as long as this is within the loan period. If the target achievement is early, early disbursement can be made.

PPMS.


report. The IVA will verify the results each year through (i) a review of program records on delivery, installation and capacity of power source and (ii) backed up by field spot checks. The verification process will take into account the different capacities of each source. Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three weeks of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 3: By 2021, at least 26,587 sites have renewable energy-based power plants installed. 2016 baseline: 0 All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Disbursement targets for KPP: Total MHPs installed: 2017 : 200 2018 : 400 2019 : 600 2020 : 800 2021 : 1,000 Solar plants installed: 2017: 1,637

Definition: Renewable energy sources mean MHPs in KPP, and solar plants in schools and PHFs in both KPP and Punjab. These are considered installed when the plant is operational and producing electricity. Whatever the installed capacity of the MHP or solar plants, each plant is counted as an entity.

Conditions for full disbursement are met for each province when the total number of installations (MHPs and solar plants in KPP and solar plants in Punjab) is equal to or exceed the annual target for that province. For KPP, the MHPs account for 80% and solar plants for 20% of full disbursement. For example, if all the MHP installation targets are achieved but not the solar plant targets are achieved, then from the target amount allocated for DLI 3 for KPP for that year, 80% disbursement will be made for the full achievement of MHP installation.



PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year, in the same process as for DLIs 1 to 5 (review of records backed up by field spot checks). For DLI 3, field checks will focus on the installation and operationalization of plants. Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the







Procedure 2018: 3,275 2019: 4,912 2020: 6,550 2021: 8,187 Disbursement targets for Punjab: Solar plants installed: 2017: 3,480 2018: 6,960 2019: 10,440 2020: 13,920 2021: 17,400

Partial disbursement: The DLI is scalable and partial disbursement is allowed for each component. If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement for that component. The following formula will be applied: Partial DLI disbursement = planned DLI disbursement for the period (actual achievement of the current period – targeted achievement of the previous period) / (targeted achievement of the current period – targeted achievement of the previous period).4


same field trip. Within three weeks of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 4: By 2021, at least 30% of schools with solar plant installed are girls’ schools. 2016 baseline: No school connected to solar plant. All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Disbursement targets (Share of girls schools within the total number of schools having received solar plants): for KPP: 2017: 6% 2018: 12% 2019: 18% 2020: 24% 2021: 30% for Punjab: 2017: 6% 2018: 12%

Definition: The numerator for this indicator is the number of girls-only schools (“girls’ schools”) connected to a solar plant. The denominator is the total number of schools connected to a solar plant. Each year, the numerator and denominator are measured on a cumulative basis.

Conditions for disbursement are met for each province when the percentage share of girls’ schools equals or exceeds the annual percentage target for that province.

Partial disbursement: The DLI is scalable and partial disbursement is allowed. If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement. The following formula will be applied: Partial DLI disbursement = planned DLI disbursement for the period (actual achievement of the current period – targeted achievement of the previous period) / (targeted achievement of the current period – targeted

5 achievement of the previous period). Disbursements are allowed for early or late achievement of the DLI. This means that the planned disbursement amount for a given year can be released when the set target is fully achieved, even if the achievement is a



PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year, in the same two stage process as for DLIs 1 to 5 (first, review of program and school records; second, random spot checks conducted in the field). Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.


100% disbursement) is taken from the current year’s planned target. 5 For each year, the baseline (representing 0% disbursement) is taken from the previous period’s planned target, while the current year’s target (representing






Procedure 2019: 18% 2020: 24% 2021: 30%

year or more late, as long as this is within the loan period. If the target achievement is early, early disbursement can be made.

DLI 5: By 2021, at least 7% of target households newly connected to electricity are women-headed households. 2016 baseline: 0 All targets are cumulative Disbursement targets for KPP: All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Share of women-headed households within the total number of households in KPP having received electricity generated from MHPs: 2017: 2% 2018: 4% 2019: 5% 2020: 6% 2021: 7%

Definition: The denominator for this indicator, the “target households”, means the households in the communities selected by the RBL program that have received electricity generated from MHPs. The numerator is the number of women-headed households provided with electricity from MHPs under the RBL program. Women-headed households mean any household headed by: (i) a single woman living on her own, with or without children, or (ii) a widow, or woman separated from her husband for any reason, including migration, with or without children.

Conditions for disbursement are met when the percentage share of women-headed households equals or exceeds the annual cumulative target for KPP.

Partial disbursement: The DLI is scalable and partial disbursement is allowed. If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement. The following formula will be applied: Partial DLI disbursement = planned DLI disbursement for the period (actual achievement of the current period – targeted achievement of the previous period) / (targeted achievement of the current period – targeted achievement of the previous period).6




PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year, in the same two stage process as for DLIs 1 to 5 (first, review of program records, and second, random spot checks conducted in the field). Checks for this DLI will focus on the number of women-headed households in MHP beneficiary communities. Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 6: By 2021, governance, financial management and procurement functions are improved. 2016 baseline: No procurement unit, no internal audit department. Disbursement targets for KPP: 2017: (i) Corporate

Definition: The actions under DLI 6 in terms of institutional strengthening are measured by the results produced, as follows: a) An internal audit department must meet the following criteria. The department (i) independently assesses the organization's risk management,

KPP: PEDO reports

Punjab: EDP reports

PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report and the following as applicable:







Procedure governance structure implemented, including dedicated procurement unit, (ii) Internal audit department established and operationalized, (iii) procurement manual adopted (iv) business model adopted for micro-hydroelectricity plants, (v) program management unit strengthened.

2018: First internal audit report approved by PEDO board.

2021: PEDO internal performance audit report on the program produced.

Disbursement targets for Punjab: 2017: (i) Dedicated

procurement unit established, (ii) Internal audit department established and operationalized, (iii) Procurement manual adopted, (iv) Program management unit strengthened.

2018: EDP internal audit report produced.

2021: EDP internal performance audit report on the program produced.

governance and internal control system, (ii) reports regularly on these to the highest level in the organization (e.g., head of the organization, management and the audit committee), and (iii) is made up of qualified and skilled people able to work in accordance with the requirements contained within the International Professional Practices Framework. Most importantly, the internal audit report (2018) and performance audit report (2021) produced by the internal audit department must meet the standards set by the Auditor-General of Pakistan. b) A dedicated procurement unit must meets the following criteria: (i) it is established as a permanent unit of the organization with supplementary procurement staff in the Program Management Unit, (ii) its functions are procurement planning, procurement process, contract management and procurement monitoring and reporting, and (iii) the roles and accountabilities are clearly defined within the unit as well as with the rest of the organization. c) The procurement manual must be able to guide all PEDO/EDP activities in procurement and contracting practices and must meet provincial regulatory requirements in the procurement of all goods, services and works, as well as in the internal controls and standards of conduct for all personnel involved in the procurement process. d) The business model adopted for MHPs means the KPP government has to review, select and adopt one of a number of business models developed as part of the due diligence report under ADB’s TA 9047 PAK. e) A strengthened program management unit means a unit that has been established and staffed in line with the organogram in the PPTA report, which means having the operational strength to implement PAP (Appendix 5).

Conditions for disbursement are met for each province when the institutional action(s) specified for that year has been completed and the entities or products set up or produced meet the criteria set out in (a) to (d) above. For 2017, each of the 5 actions required of the KPP government accounts for 20% of the full disbursement allocation for that year, while for Punjab, each of the 4 actions required accounts for 25% of the full disbursement allocation for that year. That is, if Punjab completes only the action on internal audit and no other in 2017, then it will receive only 25% of the full allocation for that year.

Partial disbursement is not allowed: The DLI is not scalable. The action has to be completed before any disbursement. Disbursements are not allowed for late achievement of the DLI. This means that all actions and reports must be completed on time. Early payment against an earlier than scheduled completion date is allowed.

Frequency for reporting will be annual.

(a) for the implementation of the corporate governance structure: a copy of the new corporate governance structure in place, with an indication of the names of the staff occupying the various positions reflected in the structure, and a copy of the document which describes the functions and responsibilities of each unit and position in the structure; (b) for the establishment of the dedicated procurement unit or internal audit department: a certification from the appropriate officer of PEDO or EDP confirming that the procurement unit or internal audit department has been established and operationalized with a copy of the document which describes the functions and responsibilities of the unit or department and a list of the names of the staff occupying each position in the unit or department; (c) for the adoption of the procurement manual or business model: a copy of the notification or other order of the appropriate body or officer in PEDO or EDP adopting the procurement manual or business model, and a copy of the manual or model; (d) for the strengthening of the program management unit: a certification of the appropriate





Procedure officer in PEDO or EDP listing

the actions that were completed in order to strengthen the program management unit, with an indication of the dates of completion and other supporting details.

The IVA will verify the results in 2017, 2018 and 2021 on the basis of the required reports. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 7: From 2017, ICT-driven program performance monitoring system (PPMS) is operationalized, to produce annual performance monitoring reports on all indicators and PAP actions. 2016 baseline: No PPMS Disbursement targets for KPP: 2017: PPMS set up in PEDO,

2017 report issued 20182021: annual performance

monitoring report issued on all indicators and PAP actions

Disbursement targets for Punjab: 2017: PPMS set up in EDP,

2017 report issued 20182021: annual performance

monitoring report issued on all indicators and PAP actions

Definition: Operationalization of PPMS means the establishment of the PPMS in EDP and PEDO, with the required software and capacity in place to (i) conduct performance monitoring of all DMF indicators as well as additional indicators, as required, for the procurement, installation and functioning of MHP and solar plants, and (ii) to implement all the PAP actions as agreed. The PPMS should be a web-based monitoring system, to allow for data transmission and collection from remote locations. “All indicators” mean all the indicators agreed on by all stakeholders in the early part of 2017.

Conditions for disbursement are met for each province when the actions specified for that year are met. For 2017, full disbursement requires (a) PPMS to be set up (50% of full disbursement allocation for that year) and (b) a 2017 report to be produced on all indicators (50% of full disbursement allocation for that year).

Partial disbursement is not allowed: The DLI is not scalable. Disbursements are also not allowed for late achievement of the DLI.



PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year on the basis of the performance monitoring reports. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 8: By 2019, energy audits are conducted on 100% of identified public sector buildings and a model net zero building is constructed. 2016 baseline: No energy audits

Disbursement targets for

Definition: “Identified public sector buildings” are all those in the list developed by EDP in the first quarter of 2017 and acceptable to ADB. The number of buildings

EDP reports drawn from its PPMS.

EDP prepares an attestation that the DLI is met and attaches the relevant report.





Procedure Punjab: 2017: 30% of identified public sector

buildings have conducted energy audits

Construction of model net zero building initiated

2017: 100% of identified buildings

have conducted energy audits 2018: Methodology developed and

approved for follow-up on energy audit recommendations

Construction of model net zero building completed and government standards and design for net-zero buildings notified.

on this list constitutes the denominator for this indicator for 2017 and 2018. The numerator is the number of buildings from the list that have had energy audits conducted. “net-zero building” means a 62% reduction from current average level for net emission.

Conditions for disbursement for the energy audits are met when the percentage targets for 2017 and 2018 are achieved, and when the institutional actions specified for each year have been completed. For the net-zero building, condition for disbursement for the 2017 target is met when civil works are started and target for 2019 is met when the building has been completed, furnished, equipped and Energy Department staff shifted to the building. For each year, the institutional actions relating to energy audits are allocated 15% of the full disbursement amount and institutional actions relating to net-zero building are allocated 85% of the full disbursement amount for that year.

Partial disbursement: For 2017 and 2018 energy audits percentage targets, the DLI is scalable and partial disbursement is allowed. However, partial disbursement is not allowed for the institutional actions. Disbursements are allowed for early or late achievement of the DLI. This means that the planned disbursement amount for a given year can be released when the set target is fully achieved, even if the achievement is a year or more late, as long as this is within the loan period. If the target achievement is early, early disbursement can be made.

Frequency for reporting will be annual.

The IVA will verify the results for energy audits in 2017, 2018 and 2019 on the basis of the energy audit reports produced in 2017 and 2018, and the approval of follow up on energy audit recommendations in 2019. For the construction and government standards on net- zero building, the IVA will conduct checks of the site and the notification of standards. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

ADB = Asian Development Bank, DLI = disbursement-linked indicator, EDP = Energy Department of Punjab, ICT = Information and Communication Technology, IVA = independent verification agent, KPP = Khyber Pakhtunkhwa province, MHP = micro-hydropower plant, MW = megawatt, PAP = program action plan,7 PEDO = Pakhtunkhwa Energy Development Organization, PPMS = program performance monitoring system, PPTA = program preparatory technical assistance, RBL = results-based lending. Sources: Asian Development Bank, Energy Department of Punjab, and Pakhtunkhwa Energy Development Organization.

7 Program Action Plan (accessible from the list of linked documents in Appendix 2)

DESIGN AND MONITORING FRAMEWORK

Impact the Results-Based Lending Program is Aligned With Inclusive economic growth achieved through sustainable energy access (Pakistan Vision 2025: One Nation–One Vision)a

Results Chain

Performance Indicators with Targets and Baselines Data Sources

and Reporting Mechanisms

Risks

Outcome Access to sustainable and more reliable electricity services increased, particularly for vulnerable communities in KPP and Punjab

a. By 2021, access to electricity is provided to an additional 240,000 households and 2.6 million students in unelectrified and poorly electrified areas. (DLI 1) (2016 baseline: 0)

a. PPR of PEDO and EDP

Provincial governments have financing shortfalls. Communities and/or district authorities are unable and/or unwilling to carry out operation and maintenance of solar plants as planned.

b. In previously electrified areas, the number of targeted schools and PHFs affected by load shedding is reduced to zero by 2021. (2016 baseline: 13,000 schools, 1,900 PHFs)

b. PPR of PEDO and EDP

Outputs 1. Renewable energy-based power plants installed

1a. By 2021, power generation capacity from clean energy sources is increased by 182 MW. (DLI 2) (2016 baseline: 0 MW)


1b. By 2021, at least 26,587 sites have renewable energy-based power plants installed. (DLI 3) (2016 baseline: 0 installed)


2. Opportunity for women and girls to obtain energy services and benefits increased

2a. By 2021, girls’ schools account for at least 30% of schools with solar plant installed. (DLI 4) (2016 baseline: %, no school)


Resistance from local communities impedes identification and targeting of households headed by women and girls schools.

2b. By 2021, households headed by women account for at least 7% of target households that are newly connected to electricity.b (DLI 5) (2016 baseline: 0 households connected)


2c. By 2021, 500 PHFs used by women for delivery or antenatal care are equipped with solar plants.c (2016 baseline: 0 facilities equipped)

c. PPR of PEDO and EDP

2d. By 2021, 3,000 women are trained to equip them in using energy benefits.d (2016 baseline: 0 women trained)

d. PPR of PEDO

3. Institutional capacity to foster sustainability enhanced

3a. By 2021, PEDO and EDP’s governance, financial management, and procurement functions are improved. (DLI 6) (2016 baseline: No dedicated procurement unit or internal audit function)


Institutional inertia and vested interests impede the required changes.

3b. By 2021, 100% of identified energy and finance department staff of both provinces are trained on technical issues, gender, project management, financial management, contract management, energy audit, environmental and social management, and climate risk management. (2016 baseline: 0 staff trained)


3c. Annual performance monitoring reports are produced on all indicators and PAP actions based on the internet-based PPMS starting in 2017. (DLI 7) (2016 baseline: no PPMS)

c. PPR of PEDO and EDP

4. Public sector energy efficiency promoted in Punjab

4a. By 2019, energy audits are conducted on 100% of identified public sector buildings and a model net-zero energy building is constructed. (DLI 8) (2016 baseline: no energy audits, no net-zero energy building)


Standards and recommendations for net-zero energy buildings and energy audits are delayed or rejected due to cost implications.

Appendix 2

Key Program Actions 1. Renewable energy-based power plants installed 1.1 Consult with and mobilize communities for participation in MHP initiatives (2017 onward). 1.2 Install MHPs with business model in KPP (2017 onward). 1.3 Consult with communities on solar plants (2017 onward). 1.4 Install solar plants in schools and PHFs in KPP and Punjab provinces (2017 onward). 1.5 Set up operation and maintenance arrangements for solar plants (2017 onward). 2. Opportunity for women and girls to obtain energy services and benefits increased 2.1 Map, identify, and target households headed by women in KPP for MHP connection (2017 onward). 2.2 Identify and prioritize girls’ schools in the allocation of solar plants (2017 onward). 2.3 Identify and prioritize PHFs providing antenatal care and/or delivery services in the allocation of solar plants (2017

onward). 2.4 Identify women beneficiaries, and develop and implement multiyear training plans to equip women with skills in the use

of energy benefits (2017 onward). 3. Institutional capacity to foster sustainability enhanced 3.1 Establish internal audit and strengthen internal controls (2017 onward). 3.2 Establish procurement unit and adopt improved procurement manual (2017 onward). 3.3 Develop and implement training plans for energy and finance staff of KPP and Punjab (2017 onward). 3.4 Set up PPMS in PEDO and EDP, establish baselines and monitoring mechanisms, and produce reports (2017

onward). 4. Public sector energy efficiency promoted in Punjab 4.1 Develop construction standards and a design for a net-zero energy building, implement construction (2017 onward). 4.2 Finalize government building standards and design for net-zero energy buildings, and notify all relevant stakeholders

(2019). 4.3 Conduct energy audits and develop methodology for follow-up on energy audit recommendations (2017 onward). Financing Plan Total program financing from 2017 to 2021: $454.3 million Government of Pakistan: $40.8 million Asian Development Bank: $325 million (loan) Communities: $9.9 million

Assumptions for Partner Financing AFD is cofinancing the results-based lending program on a joint collaborative basis ($78.6 million). The cofinancing will be in support of outputs in a common results framework agreed between the government, ADB, and AFD. AFD = Agence Française de Développement, DLI = disbursement-linked indicator, EDP = Energy Department of Punjab, KPP = Khyber Pakhtunkhwa Province, MHP = micro-hydropower plant, MW = megawatt, PAP = program action plan, PEDO = Pakhtunkhwa Energy Development Organization, PHF = public health facility, PPMS = program performance monitoring system, PPR = program performance report. a Government of Pakistan. Ministry of Planning, Development & Reform. 2014. Pakistan Vision 2025: One Nation–One

Vision. Islamabad. b Households headed by women mean any household headed by (i) a single woman living on her own; and (ii) a widow or

woman separated from her husband for any reason, including migration, with or without children. c Not every health facility or unit is equipped for antenatal care or delivery care. The minimum requirement to qualify is the

presence of a trained midwife or nurse certified to conduct antenatal care. d Training of community beneficiaries to be conducted by nongovernment organization community mobilizers. Sources: Asian Development Bank, Energy Department of Punjab, and Pakhtunkhwa Energy Development Organization.

Access to Clean Energy Investment Program (RRP PAK 49056)

PROGRAM ACTION PLAN

Action Responsible

Agency Time Frame for

Implementation

A. Khyber Pakhtunkhwa

1. Institutional and regulatory

1.1 Strengthen implementing agency’s institutional setup to achieve program results.

Implementing agency

By December 2016

1.2 Implement a strong capacity building program covering (i) MHP and solar programs, (ii) M&E, (iii) procurement and anticorruption, (iv) program management, (iv) gender and safeguards, and (v) financial management. Internal staff of implementing agency, executing agency, development contractor, and beneficiaries to participate.

Implementing agency

January 2017–June 2021

1.3 Develop and adopt procedures for registering and addressing grievances related to procurement and asset operation.

Implementing agency

February 2017

1.4 Implementing agency to be restructured into a corporate entity through an amendment to the PEDO Act by approving and adopting the restructuring plan.

Executing agency,

Implementing agency

Approval: Jan 2017

Implementation: January–September 2017

1.5 Recruit PMC to provide technical, financial and administrative support to the implementing agency throughout program implementation.

Implementing agency

Start recruitment:

October 2016

Mobilize: January 2017

1.6 Decide on method for MHP transfer to operator and/or community, and have this method approved by PEDO board

Implementing agency

December 2016

1.7 Government of KPP to notify mechanism for registering the MHP communities as legal entities with PEDO. PEDO to start implementing and registering all the communities that are connected through MHPs and operating PEDO’s plants.

Chief Minister’s Office,

Executing agency,

Implementing agency

December 2016

2. Technical

2.1 Finalize and accept technical documents delivered by the project preparatory TA.

Implementing agency

PPTA report approval:

November 2016

2.2 Hire an independent verification agent who is well familiar with the validation requirements, and whose qualifications and independence are acceptable to ADB.

Implementing agency

At least 3 months before results are to be verified.

2.3 Approve and adopt guidelines and manual for (i) site selection; (ii) feasibility study (including screening tool to ensure no Category A, or involuntary resetlement project is funded); (iii) detailed design; (iv) operation and maintenance; (v) procurement; (vi) screening checklist for climate change mitigation; and (vi) tariff setting (sanction of tariff, PEDO account for tariff collection) based on the documents delivered by the project preparatory TA

a

Implementing agency

Approval : December 2016–March 2017

Adoption: Throughout program implementation

2.3 Engage structural engineer to certify the school and PHC roof structures’ reliability and bearing capacities for the solar plant loads. No solar work on the roofs will be undertaken until the roofs are certified.

Implementing agency

Before starting installation works at any school or PHF

3. Financial management

3.1 Implementing agency will strengthen its internal controls, and establish an internal audit with professional staff.

Implementing agency

Procurement: December 2016

Audit: June 2017

3.2 Develop annual internal audit plan, and produce annual internal audit reports.

Implementing agency

Initial internal audit plan: June 2017

a Asian Development Bank project preparatory technical assistance (TA-9047) for the Access to Clean Energy

Investment Project.

Appendix 3

2

Annual audit report: December 2017 and annually thereafter

3.3 PEDO will set up a separate assignment account at National Bank of Pakistan for the RBL program.

Executing agency (prime),

Implementing agency

November 2017

3.4 PEDO will prepare and update the accounting manuals following relevant laws and international best practices.

Implementing agency

June 2017

3.5 Evaluate and implement insurance coverage for MHPs to cover major damages, machinery breakdown, and refurbishment and/or replacement of major equipment at the end of the project life.

Implementing agency

Evaluation: Feb 2017

Implementation: April 2017 on

3.6 Allocate funds for O&M of solar plants installed at schools and PHCs, and outsource O&M to a contractor for the next 3 years.

Education and health

departments of KPP

Allocation: July 2020

Contract: September 2020

4. Procurement

4.1 Approve and upload procurement plan prepared by project preparatory TA on the websites of the executing agency and KPP PPRA, and implement the plan.

Implementing agency

Approval: October 2016

Upload: November 2016

Invitation for bids: November 2016

4.2 Introduce a complaint mechanism for second-tier grievance redressal independent from the KPP PPRA.

Executing agency,

Implementing agency

January 2017

4.3 Ensure customized standard bidding documents are used to address the risks identified, and encourage competition.

Implementing agency

December 2016

4.4. Ensure institutional setup for procurement and contract management skills is strengthened with professional staff.

Implementing agency

December 2016

4.5 Conduct market analysis to ensure successful bidding and program implementation.

Implementing agency

through PPTA

December 2016

5. Anticorruption

5.1 Implement and maintain a risk management plan to mitigate fraud and corruption risks. Implementing agency to ensure proper implementation of (i) project design and specification, (ii) project selection, (iii) project costing, (iv) component quality, (v) inspection & validation, (vi) payment requests, and (vii) asset management.

Executing agency,

Implementing agency

By March 2017

5.2 Develop and implement a proactive policy and practical actions to strengthen the anticorruption system, such as: (i) demonstrate management’s commitment, (ii) increase awareness of anticorruption, and (iii) strengthen staff accountability on key decisions and expenditure approval.

Implementing agency

June 2017

5.3 Ensure that process to provide the necessary information to NAB for all large procurement amounts is followed at every stage as per NAB guidelines.

Implementing agency

Throughout program implementation

6. Monitoring and evaluation

6.1 Structure and adopt the program performance monitoring system. The system will incorporate the project preparatory TA’s recommendations to ensure all program indicators are effectively monitored and reported on during the entire program.

Implementing agency

Structure: Dec 2016

Adopt: January 2017

Implement: Throughout program implementation

6.2 Implementing agency will adopt a centralized internet-based M&E system, with access provided to education and health departments, and ADB.

Implementing agency,

education and health

departments of KPP

Implementing agency, ADB: March 2017

Education and health departments: December 2018

6.3 Implementing agency will submit program progress reports bi- Implementing reports by June and

3

annually to ADB agency, education and

health departments of

KPP

December each year (starting 2017)

7. Gender

7.1 Implement Gender Mainstreaming Strategy for the Program and include the implementation progress in the implementing agency’s bi-annual monitoring report.

7.2 Community consultations include consultations with women beneficiaries as well on site selection and project benefits.

7.3 Collect data and information necessary for verification of gender indicators as mentioned in the DMF, at the outset as well as at completion.

b

Implementing agency


8. Environmental and social safeguards

8.1 Improve and apply the environmental assessment checklist for MHPs to all projects for which the regulatory IEE is not carried out.

Implementing agency

By December 2016

8.2 Work with KPEPA to finalize the checklist under Regulation 5 of the IEE-EImplementing agency Regulations 2000.

Implementing agency

By December 2016

8.3 Identify and engage companies that can recycle batteries to ensure environmental protection, and workers’ health and safety.

Executing agency

Identify: December 2016

Engage: October 2019

8.4 Develop and adopt procedures to register and address grievances regarding environmental and social safeguards

Implementing agency

Develop: January 2017

Adopt: March 2017

8.5 Ensure transparency of land donation process for MHPs by monitoring the consultations and documenting the consensus reached by NGOs and land owners during the design stage, and reporting in the bi-annual reports

Implementing agency

Throughout the program life.

8.6 Prepare, disclose and implement IPPs for subprojects with indigenous peoples impacts

Implementing agency

Throughout the program life

8.7 Implement guiding principles for voluntary land donation as described in PID for MHPs

Implementing agency

Throughout the program life

B. Punjab

1. Institutional and regulatory

1.1 Strengthen Implementing agency’s institutional setup to achieve program results.

Implementing agency

By December 2016

1.2 Implement a strong capacity building program covering (i) M&E, (ii) procurement and anticorruption, (iii) program management, (iv) gender and safeguards, and (v) financial management. Internal staff of implementing agency, executing agency, PMC, development contractor, and beneficiaries to participate.

Implementing agency

January 2017–June 2021

1.3 Issue directives to conduct energy audit of selected government buildings.

Implementing agency, electrical inspector

March 2017

1.4 Recruit PMC to provide technical, financial and administrative support to the implementing agency throughout program implementation.

Implementing agency

Start recruitment:

October 2016

Mobilize: January 2017

2. Technical

2.1 Finalize and accept technical documents delivered by the project preparatory TA.

Executing agency, PEECA

PPTA report approval:

November 2016

2.2 Hire an independent verification agent who is well familiar with the validation requirements, and whose qualifications and independence are acceptable to ADB.


Executing

At least 3 months before results are to be verified.

b Appendix 1 (Design and Monitoring Framework) in the Report and Recommendation of the President.

4

agency

2.3 Engage structural engineer to certify the school and PHC roof structures’ reliability and bearing capacities for the solar plant loads. No solar work on the roofs will be undertaken until the roofs are certified.

Implementing agency

Before starting installation works at any school or PHC

3. Financial management

3.1 Implementing agency will strengthen its internal controls, and establish an internal audit with professional staff.

Finance department of

Punjab, Executing agency,

Implementing agency

Procurement: December 2016

Audit: June 2017

3.2 Develop an annual internal audit plan, and produce annual internal audit reports.

Implementing agency

Initial internal audit plan: June 2017

Annual audit report: December 2017 and annually thereafter

3.3 Set up a separate assignment account at National Bank of Pakistan for the RBL program.

Executing agency (prime),

Implementing agency

November 2017

3.4 Allocate funds for O&M of solar plants installed at schools and PHCs, and outsource O&M to a contractor for the next 3 years.


departments of Punjab

Allocation: July 2020

Contract: September 2020

4. Procurement

4.1 Approve and upload procurement plan prepared with project preparatory TA on the websites of the executing agency and Punjab PPRA, and implement the plan.

Implementing agency

Approval: October 2016

Upload: November 2016

Invitation for bids: November 2016

4.2 Approve and adopt procurement manual. Executing agency

December 2016

4.3 Introduce a complaint mechanism for second-tier grievance redressal independent from the Punjab PPRA.

Executing agency,

Implementing agency

January 2017

4.4 Ensure customized standard bidding documents are used to address the risks identified, and encourage competition.

Implementing agency

Decemeber 2016

4.5 Ensure institutional setup for procurement and contract management skills is strengthened with professional staff.

Implementing agency

December 2016

5. Anticorruption

5.1 Implement and maintain risk management plan to mitigate fraud and corruption risks

Executing agency,

Implementing agency

By March 2017

5.2 Ensure that process to provide the necessary information to NAB for all large-scale procurement is followed at every stage as per NAB guidelines.

Implementing agency


6. Asset transfer

Develop and set up a protocol for exit strategy. Executing

agency By June 2017

7. Monitoring and evaluation

7.1 Develop and adopt the program performance monitoring system. The system will incorporate the project preperatory TA’s recommendations to ensure all program indicators are effectively monitored and reported on during the entire program.

Implementing agency

Develop: December 2016

Adopt: January 2017

Implement: Throughout program implementation

7.2 Implementing agency will adopt a centralized internet-based M&E system, with access provided to education and health departments, and ADB.


education and

Implementing agency and ADB: March 2017


5

health departments of

Punjab

departments: December 2018

7.3 Implementing agency will submit program progress reports bi-annually to ADB


education and health

departments of Punjab

Reports by June and December each year (starting 2017)

8. Private sector engagement

Engage private sector companies to conduct energy audits, and develop a methodology to introduce and incentivize the ESCOs to implement the audit recommendations through innovative financing models.

PEECA, Executing

agency

June 2017–December 2020

9. Gender

9.1 Prioritize the installation of solar plants in girls’ schools and PHCs with post-maternal facilities.

9.2 Implement the program Gender Mainstreaming Strategy and include implementation progress in the implementing agency’s bi-annual monitoring report.

9.3 Collect data and information needed for verification of the gender indicators as mentioned in the DMF, at the outset and at completion.

Implementing agency


10. Environmental and social safeguards

10.1 Identify and engage companies that can recycle batteries to ensure environmental protection, and workers’ health and safety.

Executing agency,

Implementing agency

Identify: November 2016

Engage: October 2019 for 36 months

10.2 Negotiate with squatters to resettle them on nearby land with assistance if needed.

Executing agency

before mobilization of contractor

10.3 Develop and adopt procedure for registering and addressing grievances relating to environmental and social safeguards.

Implementing agency

February 2017

10.4 Conduct safeguards due diligence and report findings on relocation of informal settlers and relocation assistance provided

Implementing agency

Before mobilization of contractor on site of net-zero building

ADB = Asian Development Bank, DMF = design and monitoring framework, EDP = Energy Department of Punjab, EIA = environmental impact assessment, ESCO = Energy Service Companies, IEE = initial environmental examination, KPP = Khyber PakhtunKhwa province, KPEPA = Khyber Pakhtunkhwa Environmental Protection Agency, M&E = monitoring and evaluation, MHP = micro-hydropower plant, NAB = National Accountability Bureau, O&M = operations and maintenance, PEDO = Pakhtunkhwa Energy Development Organization, PEECA = Punjab Energy Efficiency and Conservation Agency, PHC = primary healthcare facility, PID = Program Implementation Document, PMC = program management consultant, PPRA = Public Procurement Regulatory Authority, RBL = results-based lending, TA = technical assistance. Source: Asian Development Bank.

Project Number: 49056 November 2016

PAK: Access to Clean Energy Investment Program

Program Implementation Document

Appendix 4

CONTENTS Page

I. Program Description 1 II. Results and Disbursement 2 A. The RBL Program’s Overall Results including Disbursement Linked Indicators is in

Table 2 and 3 below. 2 B. Disbursement Allocation and Status 12 III. Expenditure Framework and Financing 14 A. Expenditure Framework 14 IV. Program Systems and Implementation Arrangements 14 A. MHP Implementation Business Model 14 B. Monitoring and Evaluation System 17 C. Fiduciary Systems 20 D. Satisfying Procurement Member Country Eligibility Restrictions 22 E. Safeguard Systems 22 F. Suggested Guiding Principles for Voluntary Land Donations 23 G. Gender and Social Dimensions 23 H. Communication and Information Disclosure Arrangements 23 I. Development Coordination 24 V. Integrated Risks and Mitigating Measures 24 VI. Program Action Plan 24 VII. Technical Assistance 24 A. Summary 24 B. Consulting Service Requirement 25 VIII. Monitoring of Key Program Covenants 25 IX. Summary of Key Outstanding Issues 25 X. Accountability Mechanism 25 XI. Program Organizational Structure and Focal Staff 25 A. Organizational Structure 25 B. Program Officers and Focal Persons 26

PURPOSE OF THE PROGRAM IMPLEMENTATION DOCUMENT

1. The Islamic Republic of Pakistan is wholly responsible for implementing the program supported by

results-based lending. The Asian Development Bank staff support the results based lending program design and implementation.

The program implementation document (PID) consolidates the essential program implementation information. The PID is a management tool which supports effective program implementation, monitoring, and reporting. It is developed throughout the program processing, and should be discussed with the developing member country at loan negotiations. It is a living document that should be refined and kept up to date during program implementation.

Abbreviations

ACE - Anti-Corruption Establishment

ADB - Asian Development Bank

AFD - Agence Française de Développement

BPEEL - best-practice energy efficiency legislation

AGP - Auditor General of Pakistan

APFS - audited program financial statement

DC - development contractor

DDO - Drawing and Disbursement Office

DMF - design and monitoring framework

DLI - disbursement-linked indicator

EA - executing agency

EAD - Economic Affairs Division

EDP - Energy Department of Punjab

EIA environmental impact assessment

ERC - Energy Resource Center

FD - Finance Department

FABS - Financial Accounting and Budgeting System

FS feasibility study

IA - implementing agency

ICT - Information Communication Technology

IEE initial environmental examination

KPEPA Khyber Pakhtunkhwa Environmental Protection Agency

KPP - Khyber Pakhtunkhwa Province

M&E - monitoring and evaluation

MHP - micro-hydropower plant

MW - megawatt

NAB - National Accountability Bureau

NAM - New Accounting Model

NBP - National Bank of Pakistan

OCR - ordinary capital resources

O&M - operations and maintenance

PAP - program action plan

P&D - Planning and Development

PEC - Pakistan Engineering Council

PEDO - Pakhtunkhwa Energy Development Organization

PEECA - Punjab Energy Efficiency and Conservation Agency

PHC - primary healthcare facility

PID - program implementation document

PMU - program management unit

PbPR - Punjab procurement rules

PMC - program management consultant

PPMS - program performance monitoring system

PPR - program progress report

PPRA - Public Procurement Regulatory Authority

PPTA project preparatory technical assistance

PSSA - program safeguards system assessment

RBL - results-based lending

RRP - report and recommendation of the president

SBD - standard bidding document

SBP - State Bank of Pakistan

TA - technical assistance

WA - withdrawal application

Access to Clean Energy Investment Program (RRP PAK 49056)

I. Program Description

1. The results-based lending (RBL) program will support the Government of Pakistan’s national and provincial goals of providing uninterrupted access to affordable and clean energy by financing a slice of the provincial power sector plans in Khyber Pakhtunkhwa Province (KPP) and Punjab. The program scope, defined by community-based renewable energy initiatives and public sector energy efficiency programs, is summarized in Table 1. The RBL program will exclude activities that would be classified as category A in the Safeguard Policy Statement (2009),1 and activities that would involve procurement of works, goods, and services under contracts whose estimated value exceeds specified monetary amounts.2

Table 1: Program Scope (As of November 2016)

Item Broader Government Programs Results-Based Lending Program

Outcome Uninterrupted access to affordable and clean energy for all sections of the population.

Increased access to sustainable and more reliable electricity services, particularly for vulnerable communities in KPP and Punjab.

Key outputs

(i) Expanded generation capacity, (ii) increased electrification rates, (iii) increased renewable energy generation, and (iv) increased private sector investment in energy sector development.

(i) Renewable energy-based power plants are installed, (ii) increased opportunity for women and girls to obtain energy services and benefits, (iii) enhanced institutional capacity to foster sustainability, and (iii) public sector energy efficiency is promoted.

Activity types (i) Development of renewable and thermal energy resources, (ii) development and enforcement of policies and regulations, (iii) (iv) provision of reliable electricity to all population, and (v) demand-side management and energy efficiency initiatives.

(i) Installation of micro-hydropower plants in rural KPP, (ii) introduction of sustainable business models for off-grid power, (iii) implementation of off-grid decentralized solar solutions for education and primary health care facilities in KPP and Punjab, and (iv) support to energy efficient initiatives in Punjab.

Program expenditure

$26 billion: $10 billion for KPP $16 billion for Punjab

$ 454.3 million $ 330.3 million for KPP $ 124.0 million for Punjab

Main financiers and respective financing amounts

Provincial government $25.3 billion Community $30 million ADB $ 325 million AFD $ 78.6 million

Provincial government $ 40.8 million (9%) Community $9.9 million (2.2%) ADB $ 325 million (71.5%), OCR Funding AFD $ 78.6 million (17.3%)

Geographic coverage

KPP and Punjab KPP and Punjab

Implementation period

20172021 20172021

ADB = Asian Development Bank, AFD = Agence Française de Développement, KPP = Khyber Pakhtunkhwa province, OCR = ordinary capital resources. Source: Asian Development Bank, Energy Department, KPP and Punjab

1 Asian Development Bank, 2009. Safeguard Policy Statement. Manila.

2 The amounts are currently $50 million for works, turnkey and supply, and installation contracts; $30 million for

goods; $20 million for information technology systems and non-consulting services; and $15 million for consulting services. ADB, 2013. Piloting Results-Based Lending for Programs. Paragraph 66. Manila.

2

II. Results and Disbursement

A. The RBL Program’s Overall Results including Disbursement Linked Indicators is in Table 2 and 3 below.

Table 2: RBL Program Results Framework (As of November 2016)

Results Indicators

DLI Yes/no

Baseline value Year 2017 2018 2019 2020 2021

Outcome: Access to sustainable and more reliable electricity services increased, particularly for vulnerable communities in KPP and Punjab

1. By 2021, access to electricity is provided to an additional 240,000 households and 2.6 million students in unelectrified and poorly electrified areas:

Yes DLI 1

0 2016 40,000 households 80,000 households

120,000 households

180,000 households

240,000 households

0 500,000 students 1,100,000 students

1,600,000 students

2,100,000 students

2,600,000 students

KPP: households (cumulative) 0 40,000 80,000 120,000 180,000 240,000 KPP: total students (cumulative) 0 160,000 320,000 480,000 640,000 800,000 Punjab: total students (cumulative) 0 340,000 780,000 1,120,000 1,460,000 1,800,000

2. In previously electrified areas, the number of targeted schools and PHFs affected by load shedding is reduced to zero by 2021:

No 13,000 schools, 1900 PHFs

2016 10,400 schools 1,520 PHFs

7,800 schools

1,140 PHFs

5,200 schools 760 PHFs

2,600 schools

380 PHFs

0 schools 0 PHFs

KPP (cumulative) 3,000 schools 120 PHFs




600 schools 24 PHFs

0 schools 0 PHF

Punjab (cumulative)

10,000 schools 1,780 PHF

8,000 schools 1,424 PHFs

6,000 schools

1,068 PHFs


2,000 schools

356 PHFs

0 schools 0 PHF

Output 1 Renewable energy-based power plants installed

3. By 2021, power generation capacity from clean energy sources is increased by an additional amount of 182 MW:

Yes DLI 2

0 MW 2016 36 MW 73 MW 109 MW 146 MW 182 MW

153 MW in KPP (MHP and solar) (cumulative)

0 MW 31 MW 61 MW 92 MW 123 MW 153 MW

29 MW in Punjab (solar) (cumulative) 0 MW 5 MW 12 MW 17 MW 23 MW 29 MW 4. By 2021, at least 26,587 sites have renewable energy-based power plants installed, of which:

Yes DLI 3

0 installed 2016 5,317 10,635 15,952 21,270 26,587

KPP: 1,000 MHPs installed (cumulative)

200 400 600 800 1,000

KPP: 8,187 solar plants installed (cumulative)

1,637 3,275 4,912 6,550 8,187

3

Results Indicators

DLI Yes/no


Punjab: 17,400 solar plants installed (cumulative)

3,480 6,960 10,440 13,920 17,400

Output 2. Opportunity for women and girls to obtain energy services and benefits increased

5. By 2021, at least 30% of schools with solar plant installed are girls schools:

Yes DLI 4

0%; no school connected to solar plant

2016 6% 12% 18% 24% 30%

KPP (cumulative) 6% 12% 18% 24% 30% Punjab(cumulative) 6% 12% 18% 24% 30%

6. By 2021, at least 7% of target households newly connected to electricity are women-headed households

1 (cumulative, KPP)

Yes DLI 5

0 %; no newly connected households

2016 2% 4% 5% 6% 7%

7. By 2021, 500 PHFs used by women for delivery or antenatal care (ANC) are equipped with solar plants.

No 0 PHFs equipped with solar plants

2016 50 PHFs 150 PHFs 275 PHFs 400 PHFs 500 PHFs

KPP (cumulative) 10 PHFs 30 PHFs 50 PHFs 60 PHFs 70 PHFs

Punjab (cumulative) 40 PHFs 120 PHFs 225 PHFs 340 PHFs 430 PHFs

8. By 2021 3000 women are trained to equip them in using energy benefits.

No 2016: 0 women trained

2016 500 trained 1500 trained 2000 trained 2500 trained 3000 trained

KPP (cumulative) 500 trained 1500 trained 2000 trained 2500 trained 3000 trained

Output 3. Institutional capacity to foster sustainability enhanced.

9. By 2021, governance, financial management and procurement functions are improved.

KPP energy department (PEDO)

Yes DLI 6

No procure-ment unit, no internal audit

2016

Corporate governance structure implemented, including dedicated procurement unit

Internal audit department established and operationalized

Procurement manual adopted

Business model adopted for micro-hydroelectricity plants

Program management unit strengthened.

First internal audit report approved by PEDO board

PEDO internal performance audit report on the program produced

1 Women-headed households mean any household headed by: (i) a single woman living on her own, (ii) a widow, or woman separated from her husband for any

reason, including migration, with or without children.

4

Results Indicators

DLI Yes/no


Energy department of Punjab (EDP) No procure-ment unit, no internal audit

Dedicated procurement unit established.

Internal audit department established and operationalized

Procurement manual adopted

Program management unit strengthened.

EDP internal audit report produced

EDP internal performance audit report on the program produced

10. By 2021, 100% of identified energy and finance department staff of both provinces trained on technical issues, gender, project management, financial management, contract management, and environmental and social management.

No 0% trained 2016 20 % staff trained 40 % staff trained

60 % staff trained

80 % staff trained

100 % staff trained

KPP (cumulative) 20 % staff trained 40 % staff trained

60 % staff trained

80 % staff trained

100 % staff trained

Punjab (cumulative) 20 % staff trained 40 % staff trained

60 % staff trained

80 % staff trained

100 % staff trained

11. From 2017, ICT-driven program performance monitoring system (PPMS) is operationalized to produce annual performance monitoring reports on all indicators and PAP actions.

Yes DLI 7

No PPMS 2016

KPP PPMS set up, 2017 report issued

2018 report issued on all indicators and PAP actions




Punjab PPMS set up, 2017 report issued





Output 4. Public sector energy efficiency promoted in Punjab

5

Results Indicators

DLI Yes/no


12. By 2019, energy audits are conducted on 100% of identified public sector buildings and a model net zero building is constructed.

Yes DLI 8

No energy audits, no model net zero building

2016 30% of identified public sector buildings have conducted energy audits


100% have conducted energy audits

Methodology developed and approved for follow-up on energy audit recommendations

Construction of model net zero building completed and government standards and design for net zero buildings notified.

ADB = Asian Development Bank, DLI = disbursement-linked indicator, EDP = Energy Department of Punjab, ICT = Information and Communication Technology, IVA = independent verification agent, KPP = Khyber Pakhtunkhwa province, MHP = micro-hydropower plant, MW = megawatt, PEDO = Pakhtunkhwa Energy Development Organization, PPMS = program performance monitoring system, RBL = results-based lending. Sources: Asian Development Bank, Energy Department of Punjab, and Pakhtunkhwa Energy Development Organization.

Table 3: Disbursement-Linked Indicator Verification Protocols

(As of November 2016)

Disbursement-Linked Indicator Definition and Description of Achievement and Verification


Verification Agency and Procedure

DLI 1. By 2021, access to electricity is provided to an additional 240,000 households and 2,600,000 students in un-electrified and poorly electrified areas.

2016 baseline: 0 All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Disbursement targets for KPP: Households:

2017: 40,000

2018: 80,000

2019:120,000

2020: 180,000

2021: 240,000 Students:

Definition:

For MHP, the DLI refers to the total households connected to the MHP grids provided by the RBL program. For solar sources, the DLI refers to the total number of students in schools provided with solar electricity by the RBL program, to be obtained from education authorities. Conditions for disbursement are met when (i) the total number of households

provided with electricity by the program from MHPs equals or exceeds the annual cumulative target specified, and (ii) when the total number of students in beneficiary schools is equal to or exceeds the annual cumulative target specified. In KPP, MHP component counts for 80% of full disbursement and solar sources component counts for 20% of full disbursement. For example, if all the household targets are achieved but student targets are not, then 80% of the target amount allocated for KPP for that year will be disbursed.

KPP: PEDO reports drawn from its PPMS. Punjab: EDP reports drawn from its PPMS. Frequency for reporting will be annual.

PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year first, from the administrative records. These will be the number of consumers per site and schoolchildren in connected schools in KPP and the number of schoolchildren in connected schools in Punjab. Second, the IVA will back this up with random spot checks of communities, and schools in field visits. Field trips may be combined

6




2017: 160,000

2018: 320,000

2019: 480,000

2020: 640,000

2021: 800,000 Disbursement targets for Punjab Students:

2017: 340,000

2018: 780,000

2019: 1,120,000

2020: 1,460,000

2021: 1,800,000

Partial disbursement: The DLI is scalable and partial disbursement is allowed

for each of the above components. If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement for that component. The following formula will be applied:

Partial DLI disbursement = planned DLI disbursement for the period (actual achievement of the current period – targeted achievement of the previous period) / (targeted achievement of the current period – targeted achievement of the previous period).

2


as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three weeks of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 2. By 2021, power generation capacity from clean energy sources is increased by an additional amount of 182 MW.

2016 baseline: 0 All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Disbursement targets for KPP:

2017: 31 MW

2018: 61 MW

2019: 92 MW

2020: 122 MW

2021: 153 MW Disbursement targets for Punjab:

2017: 6 MW

2018: 12 MW

2019: 17 MW

2020: 23 MW

2021: 29 MW

Definition:

Clean energy sources mean MHPs and solar plants installed by the RBL program in KPP, and solar plants installed by the RBL program in schools in Punjab, and the University of Bahawalpur. For each province, installed power generation capacity will be added up. There is no need to disaggregate by type of renewable sources. Conditions for disbursement are met for each province when the total

installed capacity from the above sources reach or exceed the megawatts specified in the annual target for that province. Partial disbursement: The DLI is scalable and partial disbursement is allowed.

If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement. The following formula will be applied:


3

Disbursements are allowed for early or late achievement of the DLI. This means that the planned disbursement amount for a given year can be released when


PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year through (i) a review of program records on delivery, installation and capacity of power source and (ii) backed up by field spot checks. The verification process will take into account the different capacities of each source. Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three weeks of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.


100% disbursement) is taken from the current year’s planned target. 3 For each year, the baseline (representing 0% disbursement) is taken from the previous period’s planned target, while the current year’s target (representing


7




the set target is fully achieved, even if the achievement is a year or more late, as long as this is within the loan period. If the target achievement is early, early disbursement can be made.

DLI 3: By 2021, at least 26,587 sites have renewable energy-based power plants installed.

2016 baseline: 0 All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Disbursement targets for KPP: Total MHPs installed:

2017 : 200

2018 : 400

2019 : 600

2020 : 800

2021 : 1,000 Solar plants installed:

2017: 1,637

2018: 3,275

2019: 4,912

2020: 6,550

2021: 8,187 Disbursement targets for Punjab: Solar plants installed:

2017: 3,480

2018: 6,960

2019: 10,440

2020: 13,920

2021: 17,400

Definition:

Renewable energy sources mean MHPs in KPP, and solar plants in schools and PHFs in both KPP and Punjab. These are considered installed when the plant is operational and producing electricity. Whatever the installed capacity of the MHP or solar plants, each plant is counted as an entity. Conditions for full disbursement are met for each province when the total

number of installations (MHPs and solar plants in KPP and solar plants in Punjab) is equal to or exceed the annual target for that province. For KPP, the MHPs account for 80% and solar plants for 20% of full disbursement. For example, if all the MHP installation targets are achieved but not the solar plant targets are achieved, then from the target amount allocated for DLI 3 for KPP for that year, 80% disbursement will be made for the full achievement of MHP installation. Partial disbursement: The DLI is scalable and partial disbursement is allowed

for each component. If the target is not fully achieved, then disbursement is proportional to the increase made from the previous period’s targeted achievement for that component. The following formula will be applied:


4



PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year, in the same process as for DLIs 1 to 5 (review of records backed up by field spot checks). For DLI 3, field checks will focus on the installation and operationalization of plants. Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three weeks of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 4: By 2021, at least 30% of schools with solar plant installed are girls’ schools.

2016 baseline: No school connected to solar plant. All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the

Definition: The numerator for this indicator is the number of girls-only schools

(“girls’ schools”) connected to a solar plant. The denominator is the total number of schools connected to a solar plant. Each year, the numerator and denominator are measured on a cumulative basis.


PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year, in the same two stage process as



8




arrangements for partial disbursement. Disbursement targets (Share of girls schools within the total number of schools having received solar plants): for KPP:

2017: 6%

2018: 12%

2019: 18%

2020: 24%

2021: 30% for Punjab:

2017: 6%

2018: 12%

2019: 18%

2020: 24%

2021: 30%

Conditions for disbursement are met for each province when the percentage

share of girls’ schools equals or exceeds the annual percentage target for that province. Partial disbursement: The DLI is scalable and partial disbursement is allowed.



5



for DLIs 1 to 5 (first, review of program and school records; second, random spot checks conducted in the field). Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 5: By 2021, at least 7% of target households newly connected to electricity are women-headed households.

2016 baseline: 0 All targets are cumulative Disbursement targets for KPP: All targets are cumulative and provide the minimum threshold for disbursement without prejudice to the arrangements for partial disbursement. Share of women-headed households within the total number of households in KPP having received electricity generated from MHPs:

2017: 2%

2018: 4%

2019: 5%

2020: 6%

2021: 7%

Definition:

The denominator for this indicator, the “target households”, means the households in the communities selected by the RBL program that have received electricity generated from MHPs. The numerator is the number of women-headed households provided with electricity from MHPs under the RBL program. Women-headed households mean any household headed by: (i) a single woman living on her own, with or without children, or (ii) a widow, or woman separated from her husband for any reason, including migration, with or without children. Conditions for disbursement are met when the percentage share of women-

headed households equals or exceeds the annual cumulative target for KPP. Partial disbursement: The DLI is scalable and partial disbursement is allowed.


Partial DLI disbursement = planned DLI disbursement for the period (actual achievement of the current period – targeted achievement of the previous


PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year, in the same two stage process as for DLIs 1 to 5 (first, review of program records, and second, random spot checks conducted in the field). Checks for this DLI will focus on the number of women-headed households in MHP beneficiary communities. Field trips may be combined as appropriate for DLIs 1 to 5, with checking of different elements for each DLI on the same field trip. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of



9




period) / (targeted achievement of the current period – targeted achievement of the previous period).

6


disbursement.

DLI 6: By 2021, governance, financial management and procurement functions are improved.

2016 baseline: No procurement unit, no internal audit department. Disbursement targets for KPP:

2017: (i) Corporate governance structure implemented, including dedicated procurement unit, (ii) Internal audit department established and operationalized, (iii) procurement manual adopted (iv) business model adopted for micro-hydroelectricity plants, (v) program management unit strengthened.

2018: First internal audit report approved by PEDO board.

2021: PEDO internal performance audit report on the program produced.

Disbursement targets for Punjab:

2017: (i) Dedicated procurement unit established, (ii) Internal audit department established and operationalized, (iii) Procurement manual adopted, (iv) Program management unit strengthened.

2018: EDP internal audit report produced.

2021: EDP internal performance audit report on the program produced.

Definition:

The actions under DLI 6 in terms of institutional strengthening are measured by the results produced, as follows: a) An internal audit department must meets the following criteria. The department (i) independently assesses the organization's risk management, governance and internal control system, (ii) reports regularly on these to the highest level in the organization (e.g., head of the organization, management and the audit committee), and (iii) is made up of qualified and skilled people able to work in accordance with the requirements contained within the International Professional Practices Framework. Most importantly, the internal audit report (2018) and performance audit report (2021) produced by the internal audit department must meet the standards set by the Auditor-General of Pakistan. b) A dedicated procurement unit must meets the following criteria: (i) it is established as a permanent unit of the organization with supplementary procurement staff in the Program Management Unit, (ii) its functions are procurement planning, procurement process, contract management and procurement monitoring and reporting, and (iii) the roles and accountabilities are clearly defined within the unit as well as with the rest of the organization. c) The procurement manual must be able to guide all PEDO/EDP activities in procurement and contracting practices and must meet provincial regulatory requirements in the procurement of all goods, services and works, as well as in the internal controls and standards of conduct for all personnel involved in the procurement process. d) The business model adopted for MHPs means the KPP government has to review, select and adopt one of a number of business models developed as part of the due diligence report under ADB’s TA 9047 PAK. e) A strengthened program management unit means a unit that has been established and staffed in line with the organogram in the PPTA report, which means having the operational strength to implement PAP.

KPP: PEDO reports Punjab: EDP reports Frequency for reporting will be annual.

PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant reportand the following as applicable:. (a) for the implementation of the corporate governance structure: a copy of the new corporate governance structure in place, with an indication of the names of the staff occupying the various positions reflected in the structure, and a copy of the document which describes the functions and responsibilities of each unit and position in the structure; (b) for the establishment of the dedicated procurement unit or internal audit department: a certification from the appropriate officer of PEDO or EDP confirming that the procurement unit or internal audit department has been established and operationalized with a copy of the document which describes the functions and responsibilities of the unit or department and a list of the names of the staff occupying each position in the unit or department; (c) for the adoption of the



10




Conditions for disbursement are met for each province when the institutional

action(s) specified for that year has been completed and the entities or products set up or produced meet the criteria set out in (a) to (d) above. For 2017, each of the 5 actions required of the KPP government accounts for 20% of the full disbursement allocation for that year, while for Punjab, each of the 4 actions required accounts for 25% of the full disbursement allocation for that year. That is, if Punjab completes only the action on internal audit and no other in 2017, then it will receive only 25% of the full allocation for that year. Partial disbursement is not allowed: The DLI is not scalable. The action has

to be completed before any disbursement. Disbursements are not allowed for late achievement of the DLI. This means that all actions and reports must be completed on time. Early payment against an earlier than scheduled completion date is allowed.

procurement manual or business model: a copy of the notification or other order of the appropriate body or officer in PEDO or EDP adopting the procurement manual or business model, and a copy of the manual or model; (d) for the strengthening of the program management unit: a certification of the appropriate officer in PEDO or EDP listing the actions that were completed in order to strengthen the program management unit, with an indication of the dates of completion and other supporting details. The IVA will verify the results in 2017, 2018 and 2021 on the basis of the required reports. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

DLI 7: From 2017, ICT-driven program performance monitoring system (PPMS) is operationalized, to produce annual performance monitoring reports on all indicators and PAP actions.

2016 baseline: No PPMS Disbursement targets for KPP:

2017: PPMS set up in PEDO, 2017 report issued

20182021: annual performance monitoring report issued on all indicators and PAP actions.

Disbursement targets for Punjab:

2017: PPMS set up in EDP, 2017 report issued

20182021: annual performance monitoring report issued on all indicators and PAP actions.

Definition:

Operationalization of PPMS means the establishment of the PPMS in EDP and PEDO, with the required software and capacity in place to (i) conduct performance monitoring of all DMF indicators as well as additional indicators, as required, for the procurement, installation and functioning of MHP and solar plants, and (ii) to implement all the PAP actions as agreed. The PPMS should be a web-based monitoring system, to allow for data transmission and collection from remote locations. “All indicators” mean all the indicators agreed on by all stakeholders in the early part of 2017. Conditions for disbursement are met for each province when the actions

specified for that year are met. For 2017, full disbursement requires (a) PPMS to be set up (50% of full disbursement allocation for that year) and (b) a 2017 report to be produced on all indicators (50% of full disbursement allocation for


PEDO or EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results each year on the basis of the performance monitoring reports. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

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that year). Partial disbursement is not allowed: The DLI is not scalable. Disbursements

are also not allowed for late achievement of the DLI.

DLI 8: By 2019, energy audits are conducted on 100% of identified public sector buildings and a model net zero building is constructed.

2016 baseline: No energy audits Disbursement targets for Punjab: 2017:

30% of identified public sector buildings have conducted energy audits


2017:

100% of identified buildings have conducted energy audits

2018:

Methodology developed and approved for follow-up on energy audit recom-mendations

Construction of model net zero building completed and government standards and design for zero-net buildings notified.

Definition:

“Identified public sector buildings” are all those in the list developed by EDP in the first quarter of 2017 and acceptable to ADB. The number of buildings on this list constitutes the denominator for this indicator for 2017 and 2018. The numerator is the number of buildings from the list that have had energy audits conducted. “Net zero building” means a 62% reduction from current average level for net emission. Conditions for disbursement for the energy audits are met when the

percentage targets for 2017 and 2018 are achieved, and when the institutional actions specified for each year have been completed. For the net-zero building, condition for disbursement for the 2017 target is met when civil works are started and target for 2019 is met when the building has been completed, furnished, equipped and Energy Department staff shifted to the building. For each year, the institutional actions relating to energy audits are allocated 15% of the full disbursement amount and institutional actions relating to net-zero building are allocated 85% of the full disbursement amount for that year. Partial disbursement: For 2017 and 2018 energy audits percentage targets,

the DLI is scalable and partial disbursement is allowed. However, partial disbursement is not allowed for the institutional actions. Disbursements are allowed for early or late achievement of the DLI. This means that the planned disbursement amount for a given year can be released when the set target is fully achieved, even if the achievement is a year or more late, as long as this is within the loan period. If the target achievement is early, early disbursement can be made.

EDP reports drawn from its PPMS. Frequency for reporting will be annual.

EDP prepares an attestation that the DLI is met and attaches the relevant report. The IVA will verify the results for energy audits in 2017, 2018 and 2019 on the basis of the energy audit reports produced in 2017 and 2018, and the approval of follow up on energy audit recommendations in 2019. For the construction and government standards on net zero building, the IVA will conduct checks of the site and the notification of standards. Within three week of receiving the independent verification report, ADB confirms that the target is met and initiates the process of disbursement.

ADB = Asian Development Bank, DLI = disbursement-linked indicator, EDP = Energy Department of Punjab, ICT = Information and Communication Technology, KPP = Khyber Pakhtunkhwa province, MHP = micro-hydropower plant, MW = megawatt, PEDO = Pakhtunkhwa Energy Development Organization, PAP = program action plan, PHF = primary health care facility, PPMS = program performance monitoring system, RBL = results-based lending. Sources: Asian Development Bank, Energy Department of Punjab, and Pakhtunkhwa Energy Development Organization.

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B. Disbursement Allocation and Status

Table 4: Disbursement Schedule for Khyber Pakhtunkhwa ($ million)

Disbursement Linked Indicator

Total ADB Financing Allocation

Share of total ADB financing

(%) 2017 2018 2019 2020 2021

DLI 1 By 2021, access to electricity is provided to an additional 240,000 households and 800,000 students in un-electrified and poorly electrified areas.

44.65 20% 8.93 8.93 8.93 8.93 8.93

DLI 2 By 2021, power generation capacity from clean energy sources is increased by an additional amount of 153 MW.

55.85 25% 11.17 11.17 11.17 11.17 11.17

DLI 3 By 2021, at least 9,187 sites have renewable energy-based power plants installed.

44.65 20% 8.93 8.93 8.93 8.93 8.93

DLI 4 By 2021, at least 30% of schools with solar plant installed are girls schools.

15.65 7% 3.13 3.13 3.13 3.13 3.13

DLI 5 By 2021, at least 7% of target households newly connected to electricity are women-headed households.

17.85 8% 3.57 3.57 3.57 3.57 3.57

DLI 6 By 2021, governance, financial management and procurement functions are improved.

22.34 10% 13.40 4.47 0.00 0.00 4.47

DLI 7

From 2017, ICT-driven program performance monitoring system (PPMS) is operationalized to produce annual performance monitoring reports on all indicators and PAP actions

22.32 10% 11.16 4.47 2.23 2.23 2.23

DLI 8 By 2019, 100% of identified public sector buildings have conducted energy audits and the methodology for follow-up on energy audit recommendations has been approved.

0.00 0% 0.00 0.00 0.00 0.00 0.00

Subtotal 223.31 100% 60.29 44.67 37.96 37.96 42.43

Interest and Commitment Charges 14.00

Total 237.31

ADB = Asian Development Bank, DLI = disbursement-linked indicator, ICT = Information and Communication Technology, MW = megawatt. Sources: Asian Development Bank and Energy Department of Punjab.

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Table 5: Disbursement Schedule for Punjab ($ million)

Disbursement Linked Indicator

Total ADB financing allocation

Share of total ADB financing

(%) 2017 2018 2019 2020 2021

DLI 1 By 2021, access to electricity is provided to an additional 1,800,000 students in un-electrified and poorly electrified areas.

16.75 20% 3.35 3.35 3.35 3.35 3.35

DLI 2 By 2021, power generation capacity from clean energy sources is increased by an additional amount of 29 MW.

20.90 25% 4.18 4.18 4.18 4.18 4.18

DLI 3 By 2021, at least 17,400 sites have renewable energy-based power plants installed.

16.75 20% 3.35 3.35 3.35 3.35 3.35

DLI 4 By 2021, at least 30% of schools with solar plant installed are girls schools.

6.70 8% 1.34 1.34 1.34 1.34 1.34

DLI 5 By 2021, at least 7% of target households newly connected to electricity are women-headed households.

0.00 0% 0.00 0.00 0.00 0.00 0.00

DLI 6 By 2021, governance, financial management and procurement functions are improved.

8.36 10% 5.02 1.67 0.00 0.00 1.67

DLI 7

From 2017, ICT-driven program performance monitoring system (PPMS) is operationalized to produce annual performance monitoring reports on all indicators and PAP actions

7.54 9% 4.18 0.84 0.84 0.84 0.84

DLI 8 By 2019, 100% of identified public sector buildings have conducted energy audits and the methodology for follow-up on energy audit recommendations has been approved.

6.69 8% 1.67 2.51 2.51 0.00 0.00

Subtotal 83.69 100% 23.09 17.24 15.57 13.06 14.73

Interest and Commitment Charges 4.00

Total 87.69

ADB = Asian Development Bank, DLI = disbursement-linked indicator, ICT = Information and Communication Technology, MW = megawatt. Sources: Asian Development Bank, Energy Department of Punjab, and Pakhtunkhwa Energy Development Organization.

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III. Expenditure Framework and Financing

A. Expenditure Framework 2. Program expenditures. The broader government programs’ expenditures are estimated to be $26,280 million from 2017 to 2021, of which the RBL program expenditures are estimated to be $454.3 million. 3. Program financing plan is summarized in Table 6. The co-financing from AFD will be loan. The cofinancing will be joint and collaborative, and will not be administered by ADB.

Table 6: Program Financing Plan

Source Punjab KPP

($ million) Program Share of Total

(%)

Government Provincial government 13.8 26.9 40.8 9.0

Community contribution - 9.9 9.9 2.2

Development partners

Asian Development Bank

Ordinary capital resources (loan) 87.6 237.3 325.01 71.5

Agence Française de Développement 22.4 56.2 78.6 17.3

Total 124.0 330.3 454.3 100.0

KPP = Khyber Pakhtunkhwa. Sources: Asian Development Bank estimates, Energy Department of Punjab, and Khyber Pakhtunkhwa.

IV. Program Systems and Implementation Arrangements

A. MHP Implementation Business Model 4. Under the RBL program, the MHPs will provide electricity to around 1.5 million people in rural areas of KPP, and solar plants installed at schools will provide electricity to more than 2.6 million students, including 1.2 million girls. The MHP program will be implemented with the assistance of NGOs, hired through a competitive procurement process serving as the lead partner of the contractor, and responsible for site selection, conducting feasibility study and community mobilization. The contractor team will together be responsible for construction of the plant and training of the community team on operation and maintenance. The community organizations will be responsible for operation and maintenance of the plant and collection of cost recovery tariff to ensure sustainability. Four possible business models have been developed by the project preparatory technical assistance consultant. In all possible business models, the following essentials to ensure successful project implementation and a sustained long term operation are to be address:

(i) Tariff: Application of proper tariff scheme covering all costs of direct expenses for operation and maintenance, financial contingency for unexpected events and the accumulation of funds for future renewal of the asset.

(ii) Licencing: All projects independent from the ownership has to ensure that they dispose all the necessary licences and approvals according to federal and provincial regulation.

1 The interest and other charges during construction to be capitalized in the loan.

15

(iii) Fulfil provision for operation and maintenance: To ensure a safe and stable operation and to enable a maximal lifetime of the micro-hydropower plant the provisions for operation and maintenance are to fulfil.

(iv) Funds: The owners and the operators have to ensure – observed by PEDO – that they allocate the dedicated shares of tariffs for contingency and renewal in the foreseen accounts.

(v) Social and Environmental Safeguard: All provisions concerning social and environmental safeguard are to fulfil.

5. Based on the above essentials for sustainability, Table 7 shows different models.

Table 7: Options to Structure the Business Model Business

Model Development and Construction Asset Management and Operation No. Project Owner Project Developer Asset Owner Asset Operator

A.I PEDO Development Contractor Community Community A.II PEDO Development Contractor PEDO Community A.III PEDO Development Contractor Community O&M Provider A.IV PEDO Development Contractor PEDO O&M Provider B PEDO Development Contractor Private

Investor/Operator Private Investor/Operator

C Private Investor Private Investor Private Investor Private Investor/Operator

6. Four different business models have been proposed by the PPTA consultants. Details are as below:

Figure 1: Business Model for Plants with Generation Capacity Up to 200 KWs

COMITY=group of people nominated by a community, HDF= Hydel Development Fund, PEDO= Pakhtunkhwa Energy Development Organization. Source: Asian Development Bank project preparatory technical assistance (TA-9047) for the Access to Clean Energy Investment Project consultants’ report.

A. Funds out of Hydro Power Fund of Government of KP are allocated to PEDO

B. PEDO selects the developer/Mobilizer to perform the works.

C. Development Contractor/Mobilizer shall direct interact with Community for social mobilisation and project development

D. PEDO shall approve technical proposals, ensure the process follows the rules and receive the final works when commissioned.

E. PEDO is transferring the asset to the COMITY -in the form of COMITY- and ultimate responsible of the Operation and Maintenance as owner of the plant as all liabilities* are transferred to COMITY

*in case of full ownership transfer

PEDO

Development Contractor/Mobilizer

Community

HDF

A

B

C

D

E

Development Operation

COMITY

Business Model – Privatisation

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Figure 2: Business Model for Plants with Generation Capacity from 200 to 500 KWs (Option 1)

COMITY= group of people nominated by a community, HDF= Hydel Development Fund, KP= Khyber Pakhtunkhwa, O&M=operations and maintenance, PEDO= Pakhtunkhwa Energy Development Organization. Source: Asian Development Bank project preparatory technical assistance (TA-9047) for the Access to Clean Energy Investment Project consultants’ report.

Figure 3: Business Model for Plants with generation capacity from 200 to 500 KWs (Option 2)

HDF= Hydel Development Fund, O&M=operations and maintenance, PEDO= Pakhtunkhwa Energy Development Organization. Source: Asian Development Bank project preparatory technical assistance (TA-9047) for the Access to Clean Energy Investment Project consultants’ report.





E. PEDO is transferring the asset to the COMITY -in the form of COMITY- and ultimate responsible of the Operation and Maintenance as owner of the plant as all liabilities* are transferred to COMITY

F. COMITY is undertaking an operation & maintenance agreement with an private service provider

PEDO


Community

HDF

A

B

C

D

E

O&M Prov.


COMITY


F





E. PEDO shall undertake a Lease Agreement for operation and maintenance with a private sector O&M provider.

PEDO shall be ultimate responsible of the Operation and Maintenance as owner of the Plant. Community is beneficiary of the operation.

All liabilities are by PEDO.

PEDO


Community

HDF

A

B

C

D

E

O&M Prov.


Community

Business Model – Lease-Out

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Figure 4: Business Model for Plants with Generation Capacity from 500 – 1000 KWs

HDF= Hydel Development Fund, KP= Khyber Pakhtunkhwa, O&M=operations and maintenance, PEDO= Pakhtunkhwa Energy Development Organization. Source: Asian Development Bank project preparatory technical assistance (TA-9047) for the Access to Clean Energy Investment Project consultants’ report.

B. Monitoring and Evaluation System 7. This section describes the monitoring and evaluation (M&E) system that will apply to the rest of the program period with RBL financing, and incorporates the recommendations of the program M&E system assessment on ongoing M&E activities.

1. Summary of Monitoring and Evaluation System

8. Institutional arrangements. Similar M&E systems to track program progress for KPP and Punjab are managed in parallel and will report on program progress to ADB; and coordinate with the relevant provincial departments. The M&E responsibilities are summarized in Table 8.

Table 8: M&E Responsibilities by Agency Agency Responsibilities PEDO, EDP, and PEECA

Populate the web-based M&E system with field information.

Verify and confirm the field information.

Maintain the M&E system.

Issue and approve the quarterly reports.

Submit disbursement requests to ADB.

Coordinate with provincial finance, education, and health departments.

ADB Process disbursements based on fulfillment of DLIs.

Monitor the program status.

Periodically deploy TA consultants to validate PEDO and EDP’s reports on DLIs (see para __).

Provincial health, finance and education departments

Facilitate data collection of field information during the operations and maintenance stage for the solar program.

Provide inputs on status of indicators in the solar-powered schools and primary healthcare facilities.

ADB = Asian Development Bank, DLI = disbursement-linked indicator, DMF = design and monitoring framework, EDP = Energy Department of Punjab, M&E = monitoring and evaluation, PEDO = Pakhtunkhwa Energy Development Organization, PEECA = Punjab Energy Efficiency and Conservation Agency, TA = technical assistance.

9. M&E indicators. The expanded M&E indicators for the rest of the program period, which





E. PEDO is privatizing and transferring the asset to an private investor

F. Private investor is undertaking the operation & maintenance by himself or he is awarding an private service provider with an operation & maintenance agreement

PEDO


Community

HDF

A

B

C

D

E

O&M Prov.


Private Investor


F

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will be monitored by PEDO, EDP and PEECA. The agencies will update the status of the program DMF, DLIs, and PAP; and compliance with the loan agreement. The key indicators are in Table 9. The M&E systems will be web-based, where the data on indicators will be aggregated in quarterly progress reports for the entire program, and for specific indicators. 10. Organizational setup and information flow for M&E. Figure 5 illustrates this process. 11. Data collection, analysis, and reporting with web-based M&E system. A web-based M&E system is being designed,2 which will enable PEDO, EDP and PEECA to effectively monitor the expanded M&E indicators. The system will allow large volumes of data to be collated, analyzed and captured in the program progress reports to be submitted to (i) the provincial energy, health and education department secretaries; and (ii) ADB bi-annually. 12. Program evaluation. Within two years after RBL effectiveness, ADB will field a midterm review to report on the progress against the program indicators, and agree on catch-up measures for any delays. Within one year from RBL closing, the program EAs will submit program completion reports to ADB and the Government on the results of the programs in KP and Punjab. Within two years from RBL closing, ADB, in consultation with the EAs, will prepare its own program completion report, and share the same with the Government.

Table 9: Key M&E Indicators

Key Indicator

Program Indicator

Responsible Monitoring Agency

Minimum Monitoring Frequency

Deliverable to External Parties

DMF DLI PEDO EDP PEECA DC PPR WA

Number of approved feasibility studies * * Quarterly *

Energy produced * * * Monthly *

Commissioned capacity * * * * Monthly * * Beneficiary population * * * * Monthly * * Female population benefited * * * * Monthly * * Percentage of women-headed households * * * Monthly * *

Number of women trained on using energy benefits * * * Quarterly * *

Percentage of private operators * * Quarterly *

Number of jobs created * * * Yearly *

GHG mitigation * * * Monthly *

Final capacity expected * * * Quarterly *

Number of created utilities * * * * Monthly * *

Aggregated cost * * * Monthly *

Percentage of annuity recovered * * Quarterly *

Global availability * * * Quarterly *

Number of complaints * * * Quarterly *

Percentage of girl schools * * * Monthly * *

Number of PHFs with delivery and antenatal care * * * Monthly * *

Percentage of compliance with BPEELs * Yearly * * Compliance with energy efficiency audits in public building plan

* Yearly * *

Compliance with construction work plan for the ERC * Quarterly * * BPEEL = best-practice energy efficiency legislation, DC = contractor, DLI = disbursement-linked indicator, DMF = design and monitoring framework, EDP = Energy Department of Punjab, ERC = Energy Resource Center, M&E = monitoring and evaluation, PEDO = Pakhtunkhwa Energy Development Organization, PEECA = Punjab Energy Efficiency and Conservation Agency, PHF = primary healthcare facility, PPR = program progress report, WA = withdrawal application.

2 The system is being developed by the project preparatory TA consultants under TA 9047-PAK: Access to Clean

Energy Investment Project, and finalized with PEDO and EDP.

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Figure 5: M&E Organizational Setup and Information Flow

ADB = Asian Development Bank, DLI = disbursement-linked indicator, EDP = Energy Department of Punjab, M&E = monitoring and evaluation, PEECA = Punjab Energy Efficiency and Conservation Agency, PEDO = Pakhtunkhwa Energy Development Organization, TA = technical assistance.

Table 10: M&E Responsibilities of Energy Department/Agency Staff and External Parties Staff/External Party

Number of Staff

Responsibility PEDO EDP PEECA

Energy department/ agency head

1 1 1 Effectively operate M&E system, and approve quarterly progress reports.

Project director 1 (solar) 1 (MHP)

1 1 Coordinate the activities of the field supervisors, and smart meter operators (as needed); manage contractors; and draft program progress reports on M&E indicators.

M&E head 1 1 1 Coordinate M&E activities, including overseeing the web-based M&E system to guarantee its reliability; circulate M&E data; and flag issues that require mitigation measures.

M&E analysts 3 3 Review (i) consistency of information on completed sites, and raise alarms as needed; (ii) reports from smart meters to ascertain the operational status of the power plant; and (iii) system alarms, and provide relevant staff with the information for solutions.

Prepare comprehensive reports for approval by M&E head, and subsequently by the project director, and then energy agency head.

Field supervisors 12 10 Verify field information from the contractors on site progress, ensure that information from finished power plants are complete and accurate, and uploaded to the web-based M&E system.

Finance department 1 1 1 Input data related to contractors’ payments in the web-based M&E system.

Smart meter operator

1 1 Collect data on power generation and availability from the on-site smart meter and camera in each power plant, and submit reports.

Program beneficiary

Report any major incident.

Ensure that smart meters are operational.

Contractor Upload comprehensive data from each power plant during feasibility, construction and commissioning

EDP = Energy Department of Punjab, M&E = monitoring and evaluation, MHP = micro-hydropower plant, PEDO = Pakhtunkhwa Energy Development Organization, PEECA = Punjab Energy Efficiency and Conservation Agency.

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13. Public disclosure. PEDO, EDP and PEECA will publicly disclose the status of the M&E indicators by publishing the program progress reports on their websites. The energy department secretaries of KPP and Punjab will also circulate the reports among their district and municipal authorities, and through media programs (TV and/or radio) to disseminate the results. The program completion reports (para 13) will be published on the Government and ADB websites.

2. Monitoring and Evaluation System-Related Program Action 14. Implementing the web-based M&E system is included in the program action plan (PAP).3 ADB’s capacity development TA will support training on monitoring and verifying the program indicators. The TA is described in Chapter VII. C. Fiduciary Systems 15. The financial management assessment confirms that an adequate financial management exists in KPP and Punjab governments with sound budgeting, accounting and financial reporting, and auditing procedures and practices. Improvements are needed to strengthen internal control and establish internal audit function. 16. Internal controls. The Government’s internal control system for expenditure is based on a series of regulations including the New Accounting Model (NAM), Financial Rules, Treasury Rules, Delegation of Financial Powers and Rules of Business. Auditor Generals set up a small internal audit department with the mandate of payroll audits only. Internal control for non-salary expenditure is strong on expenditure commitment control, but less effective on comprehensiveness, relevance and rules and procedures. 17. Accounting and financial reporting. The government has adopted International Public Sector Accounting Standards (IPSAS) on cash accounting basis. The Department of Auditor General of Pakistan follows International Standards of Supreme Audit Institutions (ISSAI). The use of FABS, NAM application, and capacity building of accounting staff strengthened financial reporting. Using a uniform chart of accounts for budget formulating and execution at federal, provincial and district levels enables uniform data classification and direct comparison with the original budget estimates. Monthly civil accounts are prepared based on these reports, and posted on the Finance Department, Auditor General and Controller General of Accounts websites. For this RBL, separate assignment accounts and records for the program will be maintained in each implementing agency who will prepare the RBL program annual financial statements for each fiscal year commencing on program effectiveness date and have them audited annually by the Auditor General of Pakistan (AGP). The RBL program will follow the government accounting and financial reporting system. In the case of MHP, community contributions such as land, labor and transportation will not be included in the financial statements due to remote areas and difficult to measure.

18. Internal audit. There are no internal audit units in provincial government departments. Capacity constraints as well as the pre-audit arrangement resting with the Controller General of Accounts slows down establishing the internal audit function in line ministries or departments. 19. Independent audit. The AGP submits audit reports to the governor of the respective province who lays it before the Provincial Assembly. The external audit is conducted using auditing standards of the International Organization of Supreme Audit Institutions. The AGP will

3 The Program Action Plan is in linked document 12 in Appendix 2 of the RRP.

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also conduct external audit of the program’s funds for EDP and PEDO. 20. Disbursement and fund flow mechanism. Disbursement by ADB will be subject to achieving key results in the DLI matrix, and submission of withdrawal applications with verifiable evidence of DLI achievements. Fund flows for both EDP and PEDO are as in Figures 6 and 7.

Figure 6: Fund Flow from ADB to PEDO

APFS = audited program financial statement, DLI = disbursement-linked indicator, EAD = Economic Affairs Division,

FD = Finance Department, IA = implementing agency, KPP =Khyber Pakhtunkhwa Province, MoF = Ministry of

Finance, NBP = National Bank of Pakistan, P&D = Planning and Development, PEDO = Pakhtunkhwa Energy

Development Organization, PMU = program management unit, RBL = results-based lending, SBP = State Bank of

Pakistan.

Figure 7: Fund Flow from ADB to EDP

APFS = audited program financial statement, DLI = disbursement-linked indicator, EAD = Economic Affairs Division, FD = Finance Department, IA = implementing agency, KPP = Khyber Pakhtunkhwa Province, MoF = Ministry of Finance, NBP = National Bank of Pakistan. P&D = Planning and Development, PEDO = Pakhtunkhwa Energy Development Organization, PMU = program management unit, RBL = results-based lending, SBP = State Bank of Pakistan.

21. EDP and PEDO will maintain books and records for all expenditures incurred on the RBL

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program. EDP and PEDO will prepare separate RBL program financial statements following the government's accounting laws and regulations. 22. EDP and PEDO will cause their RBL program financial statements to be audited by the AGP. They will submit separately the audited program financial statements in the English language to ADB within six months of the end of the fiscal year. 23. Public disclosure of the RBL program financial statements, including the audit report on the RBL program financial statements, will be guided by ADB’s Public Communications Policy (2011).4 After review, ADB will disclose the RBL program financial statements for the program and the opinion of the auditors on the financial statements no later than 14 calendar days of ADB’s confirmation of acceptability. The Audit Management Letter will not be disclosed. 24. The audited accounts will be submitted in the English language to ADB within 6 months after the close of Pakistan’s fiscal year. ADB reserves the right to require a change in the auditor (in a manner consistent with Pakistan laws and regulation), or require additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. 25. Improvements are needed to strengthen internal control and establish internal audit function for EDP and PEDO. Details are in the PAP. 26. Summary of the Procurement System Anticipated contracts under the program include works, goods and consulting services below currently applicable maximum thresholds for RBL eligibility. 27. The assessment at provincial level found that procurement procedures and practices are guided by sound procurement principles of economy and efficiency, transparency, fairness and equal opportunity. The rules incorporate adequate provisions for competition whereby open competitive bidding is the principal method of procurement (other methods of procurement allowed only under certain conditions). However, some discrepancies with international best practices were identified in PAP and should be mitigated. 28. Key program actions are required in order to mitigate the identified risks in the respective provincial procurement rules, and strengthen PEDO and EDP and have been included in PAP. 29. Summary of Anticorruption System and Actions. At EA level, there is no overall integrated and proactive approach to anti-corruption. Staff refer to their obligation to adhere to appropriate rules which govern respective activities and the codes of conduct for public officials in KPP and Punjab Provinces. These rules include service rules and various accounting and financial manuals. In service rules, applicable details include classification of employees, devotion to duty, misconduct, inquiry procedure and sanctions and penalties. The accounting and financial manuals refer that authorizing expenditure is guided by high standards of financial propriety. Public reporting of corruption allegations could be made clearer. D. Satisfying Procurement Member Country Eligibility Restrictions 30. The RBL program is co-financing with AFD. Universal procurement will be applied. E. Safeguard Systems

4 Available from http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications.

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

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31. Summary of Safeguard System. The program has a safeguard categorization of B for environment, indigenous peoples, and involuntary resettlement. The program will have no adverse impacts on indigenous people, and may even benefit indigenous communities in Chitral. Screening at site selection stage will be conducted to exclude environment category A as well as involuntary resettlement. Environmental assessment studies, including environmental management plans, will be performed for each site. The PAP provides the mitigating actions. 32. Status of the key safeguards actions which will be implemented throughout program implementation are in the PAP (Chapter VI). F. Suggested Guiding Principles for Voluntary Land Donations

33. Depending upon relevant assessment of current program intent and implementation the

following voluntary land donation principles may be further spelled out and applied in the

proposed RBL:

(i) During initial consultations, conducted during the screening phase, potential land donors will be informed that they have the power of choice and ability to say “no” if they do not agree with such donation;

(ii) There is often more than one suitable location for an MHP in a particular community and the project screening report will include an evaluation of the alternatives with an emphasis on requirement for land donation

(iii) Land should be identified by community through a participatory approach, and this needs to be reflected in the records of consultations.

(iv) The screening report needs to indicate that there are no squatters, encroachers, or other claims to the land donated;

(v) Written agreement must be obtained from each affected person donating the land;

(vi) Detailed records must be kept on all consultative meetings, and all grievances, and actions taken to address such grievances, must be recorded in a grievance log.

34. There should be confirmation through an independent third party that the process has been transparent and inclusive. G. Gender and Social Dimensions 35. The RBL program is classified as “General Intervention,” which supports poverty reduction indirectly. The program will also entail social mobilization, awareness raising and skill development programs for poor and vulnerable women in the targeted communities. 36. The program is classified as Effective Gender Mainstreaming, having output indicator for women and girls, and three gender specific DLIs. Other actions under the program include conducting training programs for PEDO and EDP on gender-inclusiveness and program designed for consultations with men and women groups. Gender actions and program indicators will be monitored as part of the overall monitoring framework and evaluated as part of the independent impact assessments and ex-post evaluation studies. H. Communication and Information Disclosure Arrangements

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37. The program progress will be publicly disclosed by publishing the program progress reports on the government websites. The energy department secretaries of KPP and Punjab will also circulate the reports among their district authorities, and through media programs. The program completion reports will also be published on the Government and ADB websites. I. Development Coordination 38. The program builds on lessons from previous ADB and development partner project investment and policy based loans to Pakistan and the successes generated by their complementary approach and multi partner dialogue. ADB will continue working with existing development partners, while co financing opportunities with other partners will be explored.

V. Integrated Risks and Mitigating Measures

Table 11: Summary Integrated Risk Assessments and Mitigating Measures (As of November 2016)

Risks Ratings Key Mitigating Measures

Results. Issues relating to site access, and the

failure of communities and local authorities to undertake O&M of plants

Substantial Ensure back-up plans for site selection and access, and implement robust monitoring.

Expenditures and financing. Government may not

include any budget for the O&M for solar plants

Moderate Include O&M for the first t3 years in the installation contract and ensure another O&M contract for next 3 years is awarded.

Fiduciary. Absence of internal audit in Punjab

Energy Department and PEDO Procurement. Institutional procurement, project

management and contract administration capacity is limited.

Substantial High

FD will establish internal audit system and prioritize implementation in ED. IAs will (i) establish capacity and procurement specific skills, (ii) prepare procurement manual, (iii) prepare customized SBD’s with due attention to discretion and eligibility, (iv) strengthen contract management capacity, (v) establish procurement monitoring system.

Operating environment. Some sites may not be

implemented due to security risks.

Moderate Undertake extensive consultations with community elders to find solutions for extreme high security risk areas. Ensure sufficient insurance of assets is made.

Overall RBL program risk Substantial

ED = Energy Department, FD = Finance Department, IA = implementing agency, O&M = operations and management, PEDO = Pakhtunkhwa Energy Development Organization, RBL = results-based lending. Source: Asian Development Bank.

VI. Program Action Plan

39. Status of Program Action Plan, Issues and Challenges. This section will be updated during program implementation.

VII. Technical Assistance

A. Summary 40. The TA will support program implementation, particularly to achieve Outputs 2 and 3 of the DMF. The TA will (i) strengthen M&E by the executing agencies (EAs) Energy Department of Punjab and Khyber Phaktunkhwa (KPP), and implementing agencies (IAs), Chief Engineer (Power) in Punjab and Phaktunkhwa Energy Development Organization (PEDO) in KPP, (ii) improve safeguards management, (iii) support ADB staff in verifying results of sample sites, and (iv) assist in sample validating the IVA’s verification reports on the program indicators.

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41. The TA is estimated to cost $800,000, out of which $750,000 will be financed on a grant basis by ADB’s Technical Assistance Special Fund. The government will support the TA in the form of counterpart staff, office facilities and other in-kind contributions. B. Consulting Service Requirement 42. This section will be updated during program implementation.

VIII. Monitoring of Key Program Covenants

43. This section will be updated during program implementation.

IX. Summary of Key Outstanding Issues

44. This section will be updated during program implementation.

X. Accountability Mechanism

45. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted operations can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures.5 People who are, or may in the future be, adversely affected by a program supported by RBL may submit complaints to ADB’s Accountability Mechanism (2012). 46. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to resolve their problems and/or issues by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, they approach the Accountability Mechanism.

XI. Program Organizational Structure and Focal Staff

A. Organizational Structure

Table 12: Key Organizations’ Roles Role Organization Responsibility

Borrower Economic Affairs Division

Lender Asian Development Bank Finance portion of the Government’s program through results-based lending

Program steering committees

Headed by the Additional Chief Secretary, Planning and Development of the respective provinces

Monitor development results.

Executing agencies

Energy department of KPP

EDP

Monitor overall program results, and report to the program steering committees.

Implementing agencies

PEDO

Office of Chief Engineer (Power)

Punjab Energy Efficiency and Conservation Agency

Execute the MHP and solar programs in KPP through PMUs.*

Execute the solar and energy efficiency programs in Punjab through PMUs.*

Finance Finance departments Ensure adequate budget appropriation and smooth

5 ADB. 2012. Review of the Accountability Mechanism Policy. Manila.

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Role Organization Responsibility

managers fund flows.

Monitoring and evaluation experts

EDP and PEDO

Independent verification agents

ADB TA consultants

Update status of program indicators.

Verify results.

Verify results.

Contractors Private sector Develop and operate MHPs.

Program beneficiaries

Vulnerable communities, basic health units, schools

Contribute to program financing, donate land for MHPs, and provide field information.

* May be supported by program implementation, monitoring, and capacity development consultants. ADB = Asian Development Bank, EDP = Energy Department of Punjab, KPP = Khyber Pakhtunkhwa Province, MHP = micro-hydropower plant, PEDO = Pakhtunkhwa Energy Development Organization, PMU = program management unit, TA = technical assistance.

B. Program Officers and Focal Persons

Table 13: Program Officers and Focal Persons (As of November 2016)

Key Government Staff and Positions

Key ADB Staff and Positions

1 P. Ahmed Junejo, Senior Joint Secretary, EAD F. Cleo Kawawaki, Director, Energy Division, Central and

West Asia Department (CWEN)

2 Engr. M. Naeem, Secretary, Energy and Power Development of Khyber Pakhtunkhwa

A. Tareen, Senior Energy Specialist, CWEN

3 A. Ayub Khan, Chief Executive Officer, PEDO D. Pham, Financial Management Specialist, CWEN

4 A. Rehman Gillani, Secretary, Energy Department of Punjab

Sr# Contract(South) NoofSchools1 LODHRAN 5372 MULTAN 7273 MUZAFFARGARH 13744 BAHAWALNAGAR 12005 KHANEWAL 6396 VEHARI 8527 D.G.KHAN 10668 LAYYAH 6669 RAJANPUR 904

10 BAHAWALPUR 119211 RAHIMYARKHAN 1704

TotalSouth 10,861

APPENDIX 5