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Karachi Bus Rapid Transit Red Line Project (RRP PAK 47279)

Project Number: 47279-002 Loan Number: LXXXX June 2019

Islamic Republic of Pakistan: Karachi Bus Rapid

Transit Red Line Project

Project Administration Manual

http://www.adb.org/Documents/RRPs/?id=47279-002-3

ABBREVIATIONS

ADB – Asian Development Bank AFD – Agence Française de Developpement AIIB – Asian Infrastructure Investment Bank AP – affected person EA – executing agency EMP – environmental management plan EPCM – engineering, procurement and construction management GAP – gender action plan GCF – Green Climate Fund IA – implementing agency LRP – livelihood restoration plan ODBM – operation design and business model PAM – project administration manual PIU – project implementation unit PMCCB – project management, coordination, and capacity building PMCSC – project management and construction supervision

consultants RP – resettlement plan SMTA – Sindh Mass-Transit Authority

CONTENTS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 1

A. Project Readiness Activities 1 B. Overall Project Implementation Plan 2

III. PROJECT MANAGEMENT ARRANGEMENTS 3

A. Project Implementation Organizations: Roles and Responsibilities 3 B. Key Persons Involved in Implementation 4 C. Project Organization Structure 5

IV. COSTS AND FINANCING 7

A. Cost Estimates Preparation and Revisions 8 B. Key Assumptions 8 D. Detailed Cost Estimates by Expenditure Category 10 E. Allocation and Withdrawal of Loan Proceeds 11 F. Detailed Cost Estimates by Financier 13 G. Detailed Cost Estimates by Outputs and/or Components 14 H. Detailed Cost Estimates by Year 15 I. Contract and Disbursement S-Curve 16 J. Fund Flow Diagram 19

V. FINANCIAL MANAGEMENT 20

A. Financial Management Assessment 20 B. Disbursement 22 C. Accounting 25 D. Auditing and Public Disclosure 25

VI. PROCUREMENT AND CONSULTING SERVICES 27

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

VII. SAFEGUARDS 28

A. Resettlement 28 B. Environment 30 C. Indigenous Peoples 31

VIII. GENDER AND SOCIAL DIMENSIONS 32

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 35

A. Project Design and Monitoring Framework 35 B. Monitoring 38 C. Evaluation 39 D. Reporting 39 E. Stakeholder Communication Strategy 39

X. ANTICORRUPTION POLICY 41

XI. ACCOUNTABILITY MECHANISM 41

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 41

Attachments

PROCUREMENT PLAN 42

TERMS OF REFERENCE 46

Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

2. The Sindh Mass-Transit Authority (SMTA) and the TransKarachi are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by SMTA and TransKarachi of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

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

4. After ADB Board approval of the project's report and recommendations of the President (RRP),

changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM.

I. PROJECT DESCRIPTION

1. The proposed project will help increase the use of quality public transport in Karachi by delivering the 26.6-kilometer (km) Red Line Bus Rapid Transit (BRT) corridor and associated facilities, directly benefiting 1.5 million people.1 The project is economically justified by major time savings for BRT passengers; vehicle operating cost savings; and better air quality and reduced carbon emissions, which will improve the health of Karachi’s citizens and mitigate climate change. It will also make Karachi safer, greener, and more competitive and inclusive. 2. The project is aligned with the following impact: quality of life in Karachi improved. The project will have the following outcome: use of quality public transport in Karachi increased.

3. The project outputs are (i) Red Line BRT corridor and associated facilities constructed, and (ii) BRT operations established.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 1: Project Readiness Activities

Indicative Activities

2019 Responsible Unit Feb Mar Apr May Jun Jul Aug Sep Oct

Advance contracting actions

∆ ∆ ∆ ∆ ∆ ADB

Retroactive financing actions

∆ ∆ ∆ ∆ ∆ ∆ ADB, TransKarachi

Establish project implementation arrangements

∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ADB, SMTA, TransKarachi

ADB Board approval

∆ ADB

Loan signing ∆ ADB, EAD

Government legal opinion provided

∆ MOJ

Government budget inclusion

∆ MOF

Loan effectiveness ∆ ADB

ADB = Asian Development Bank, EAD = Economic Affairs Division, MOF = Ministry of Finance, MOJ = Ministry of Justice, SMTA = Sindh Mass-Transit Authority. Source: Asian Development Bank.

1 About 1.5 million people (10% of Karachi’s population) live within 1 km of a bus rapid transit (BRT) station, including

off-corridor services, and would potentially benefit from the proposed system.

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B. Overall Project Implementation Plan

Table 2: Project Implementation Plan

BRT = bus rapid transit, SMTA = Sindh Mass-Transit Authority, ITS = intelligent transportation system Source: Asian Development Bank.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

A. DMF

Output 1: Karachi’s first sustainable BRT corridor and associated facilities constructed

1.1 Prepare detailed design under the project design advance and tender bid documents

1.2 Complete implementation of resettlement plan and obtain environmental clearances

1.3 Award civil works contracts

1.4 Complete full restructuring of the Karachi BRT corridor

Output 2: Sustainable and effective BRT operations are established

2.1 Recruit staff and prepare the business models of the SMTA and TransKarachi

2.2 Conduct a capacity building program for staff at the SMTA and TransKarachi

2.3 Complete the BRT operational plan and the BRT communication plan

2.4 Procure and install ITS as part of the BRT infrastructure

2.5 Procure the BRT fleet for Red Line operations

2.6 Monitor the 2-year maintenance contract with the bus supplier

2.7 Negotiate with existing private bus operators

2.8 Set up a compensation mechanism and fleet scraping program for excluded operators

2.9 Prepare and ensure the signing of service contracts with private company(ies) to run BRT operations

2.10 Train bus drivers and test BRT operations

2.11 Begin BRT operations

2.12 Conduct awareness campaigns on traffic rules and BRT safety

2.13 Conduct socioeconomic and perception surveys

B. Management Activities

Procurement plan key activities to procure contract packages

Consultant selection procedures

Environment management plan key activities

Gender action plan key activities

Communication strategy key activities

Annual and/or midterm review

Project completion report (2024)

Recruitment / Design and Bid Period Implementation

2023 20242021 2022Indicative Activities 2019 2020

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 3: Roles and Responsibilities Project Implementation Organizations

Management Roles and Responsibilities

Economic Affairs Division under Ministry of Finance

Representative of Borrower

Sindh Mass-Transit Authority ➢ Executing Agency

• SMTA’s Board of Directors will act as the overall Project Steering Committee

• Responsible for policy, regulations and planning of public transport networks for all major cities of Sindh

TransKarachi (BRT Company)

➢ Implementing Agency

• Appoint a Project Director and establish a PIU for project coordination, account maintenance, loan disbursement, audit, and reporting to ADB

• Review and approve inputs of ODBM, EPCM and PMCCB consultants

• Oversee all procurement and consultant recruitment activities under the Project loan

• Implement construction phase of project implementation, including compliance with safeguards requirements

• Implement the project resettlement plan, including environmental safeguards due diligence, in accordance with ADB’s Safeguard Policy Statement (2009) and local requirements. PIU will submit required safeguards monitoring reports during project implementation

• Accountable and responsible for the administration of the Advance Account and the proper use of advanced funds

• Prepare and submit withdrawal applications to ADB

• Prepare and submit quarterly project progress report to ADB with copy to SMTA

• Manage operations of BRT

ADB ➢ Provide financing

• Guide the EA, IA, PIU during project implementation

• Review and approve all procurement and consultant recruitment actions

• Conduct regular loan review missions, including midterm and project completion missions

• Monitor compliance with all loan covenants, including safeguards

• Review annual audit reports and follow-up on audit recommendations

Agence Française de Developpement and Asian Infrastructure Investment Bank

➢ Provide co-financing ➢ Disburse funds directly to contractors and suppliers based on

ADB’s review of corresponding withdrawal applications.

Green Climate Fund ➢ Provide co-financing

ADB = Asian Development Bank, BRT = bus rapid transit, EA = executing agency, EPCM = engineering, procurement, and construction management, IA = implementing agency, ODBM = operation design and business model, PMCCB = project management, coordination and capacity building, PIU = project implementation unit, SMTA = Sindh Mass-Transit Authority. Source: Asian Development Bank.

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B. Key Persons Involved in Implementation

Executing Agency Sindh Mass-Transit Authority Officer's Name: Iqtidar Ahmed

Position: Managing Director Telephone: +92 21 35865391 Email address: [email protected]

Office Address: Suite No. 201, 2nd Floor, The Doctor’s Plaza (near 2 Talwar), Plot No. G-7, Block-9, KDA Scheme 5, Kehkashan Clifton, Karachi, Pakistan

Implementing Agency TransKarachi Officer's Name: A. Rasheed Mughal

Position: Interim Project Director Telephone: +92 21 35865392 Email address: [email protected]

Asian Development Bank

Office Address: Suite No. 201, 2nd Floor, The Doctor’s Plaza (near 2 Talwar), Plot No. G-7, Block-9, KDA Scheme 5, Kehkashan Clifton, Karachi, Pakistan

Urban Development and Water Division

Staff Name: Yong Ye Position: Director Telephone No.: +632 632 4444 Email address: [email protected]

Mission Leader Staff Name: David Margonsztern Position: Principal Urban Development Specialist (Transport) Telephone No.: +632 632 5787 Email address: [email protected]

mailto:[email protected]




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C. Project Organization Structure

Project Agreements

On-lending

Agreements Government of

Sindh

Government of Pakistan

Asian Development Bank AIIB – AFD - GCF

Loan & Grant Agreements

TransKarachi BRT Company

(Implementing Agency)

SMTA (Executing Agency)

ODBM Consultants

EPCM Consultant

s

PMCCB Consultants

Construction Supervision Consultants

Contractors Suppliers

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PMU and PIU Functions and Responsibilities

Note: Only key positions are listed in the diagram. ADB = Asian Development Bank, PIU = project implementation unit, PMU = project management unit, PPIT = project planning and implementation team RP = resettlement plan. Source: Asian Development Bank.

PMU under SMTA PMU Director

Responsible for overall coordination of the project

PIU under TransKarachi PIU Director

Financial Manager Procurement Specialist Safeguards Specialist

Safeguards - Implement and monitor Environmental Management Plan during construction - Implementation and monitoring of RP

Finance and Audit - Maintain financial records and documents relating to the Project and PPIT (TransKarachi) operations - Submit withdrawal applications to ADB and AIIB - Prepare annual project financial statements

Reporting - Prepare and submit quarterly project progress reports to ADB and SMTA - Submit safeguards monitoring reports (Environment) - Submit safeguards monitoring reports (RP) to ADB

Procurement - Submit bid documents and bid evaluation report to ADB for procurement of goods, civil works - Submit consultant recruitment form requests to ADB

Contracts Management - Monitor implementation of contracts of suppliers, contractors and consultants - Submit request for contract variation to ADB, if needed - Oversee delivery and acceptance of goods - Oversee overall construction progress and consultants’ inputs

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IV. COSTS AND FINANCING

4. The project is estimated to cost $572 million (Table 5). Detailed cost estimates by expenditure category and financier are in Tables 7 and 8. To help finance the project, the government has requested (i) a regular loan of $235 million from ADB’s ordinary capital resources, (ii) a loan of $100 million from AIIB, (iii) a loan of $100 million from AFD, (iv) a loan of $37.2 million from GCF, and (v) a grant of $11.8 million from GCF.2 5. The ADB regular loan will have a 22-year term, including a grace period of 5 years; an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility; a commitment charge of 0.15% per year (the interest and other charges during construction to be capitalized in the loan); and such other terms and conditions set forth in the draft loan and project agreements. Based on the straight-line method, the average maturity is 15.97 years, and the maturity premium payable to ADB is 0.10% per year. 6. Cofinancing. The AIIB loan is expected to have a 22-year term, including a grace period of 5 years; an annual interest rate determined in accordance with AIIB’s sovereign-backed loan pricing; a commitment charge of 0.25% per year; a one-time front-end fee of 0.25% charged on the loan principal; and such other terms and conditions to be set forth in the draft loan agreement between the government and AIIB. ADB will partially administer the AIIB loan.3

7. The AFD loan is expected to have a 20-year term, including a grace period of 5 years; an annual interest rate determined in accordance with AFD’s Euro interbank offered rate (Euribor)-based lending facility; a one-time front-end fee of 0.25% charged on the loan principal; and such other terms and conditions set forth in the draft loan agreement between the government and AFD. ADB will partially administer the AFD loan.4

8. The GCF loan and GCF grant will be fully administered by ADB as an accredited entity. The GCF loan will have a 20-year term, including a grace period of 5 years; a fixed annual interest rate of 0.75%; a commitment charge of 0.5% per year; a service fee of 0.5% per year; and such other terms and conditions set forth in the draft GCF loan agreement.5 The financial charges during construction under the GCF loan will be capitalized in the ADB loan.6

9. The summary financing plan is in Table 6. The GCF grant will finance climate change adaptation measures (innovative drainage features such as bioswales), feeder e-vehicles, and post-project emissions’ monitoring activities. The GCF loan will finance the biogas plant and the incremental cost for the transition from basic diesel bus technology to the biomethane-hybrid bus technology. ADB, AIIB, and AFD will jointly finance civil works and equipment costs (excluding components financed exclusively by GCF) on a cost-sharing basis, and related contingencies and financial charges during implementation. ADB will solely finance consulting services, the bus industry transition program, and TransKarachi’s 3-year operating costs. The government will finance expenditures related to taxes and duties, relocation of utilities, and environmental and

2 The governments of Sindh and Pakistan approved such financing plan for the project, which is mentioned in the

approved PC-I, a Planning Commission pro forma form that is used for internal approvals of projects. 3 AIIB and AFD will enter into separate loan agreements with the Government of Pakistan. These terms are indicative

and subject to the negotiation and conclusion of such loan agreements. 4 Footnote 3. 5 The project was approved during the GCF 21st Board Meeting on 18 October 2018 and is the first transport-related

initiative ever approved by the GCF. 6 The interest charge, service fee and commitment charge under the GCF loan are incidental expenditures, and

estimated to be 0.003% of the ADB loan amount.

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social impact (resettlement) mitigation measures. ADB will conclude cofinancing agreements with each participating organization.7 A. Cost Estimates Preparation and Revisions

10. Cost estimates were prepared based on the detailed design, bill of quantities and technical analysis by the engineering design, procurement and construction management (EPCM) consultants under the Project Design Advance (PDA) and were refined with the ADB project team, Project Implementation Unit, and Sindh Mass-Transit Authority (SMTA) in January 2019 for the purpose of the revised PC-1. The final estimates, based on National Highway Authority rates (2014) and current market prices, were reviewed by ADB and endorsed by SMTA. B. Key Assumptions

11. The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: PRs 138 = $1.00 (as of 22 January 2019). (ii) Price contingencies based on expected cumulative inflation over the

implementation period are as follows:

Table 4: Escalation Rates for Price Contingency Calculation Item 2018 2019 2020 2021 Average

Foreign rate of price inflation 1.5% 1.5% 1.5% 1.6% 1.525% Domestic rate of price inflation 4.5% 4.8% 5.0% 5.0% 4.825%

Source: Asian Development Bank. C. Summary Cost Estimates and Financing Plan

Table 5: Summary Cost Estimates ($ million)

Item Amounta

A. Base Costb 1. Output 1: Karachi’s Red Line bus rapid transit corridor and associated facilities constructed 327.6 2. Output 2: Bus rapid transit operations established 173.3 Subtotal (A) 500.9 B. Contingenciesc 50.5 C. Financial Charges During Implementationd 20.6 Total (A+B+C) 572.0

a Includes taxes and duties of $60.32 million to be financed by the Government of Sindh, partly through exemptions and partly through cash contributions. Such amount does not represent an excessive share of the project cost.

b In 2019 prices as of 22 January 2019. Includes a $9.7 million project design advance. c Physical contingencies are computed at 10% for civil works and equipment. Price contingencies are computed at

average, 1.525% on foreign exchange costs and 4.825% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

d Includes interest, commitment charges and other fees to be incurred under the Asian Development Bank, Asian Infrastructure Investment Bank, Agence Française de Développement, and Green Climate Fund loans.

Source: Asian Development Bank estimates.

7 ADB’s full administration will entail oversight with respect to procurement, safeguards, and disbursement, and partial

administration will entail oversight with respect to procurement and safeguards.

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Table 6: Summary Financing Plan Amount

($ million) Share of Total

(%) Source

Asian Development Bank Ordinary capital resources (regular loan)a 235.0 41.08

Asian Infrastructure Investment Bank (loan)b 100.0 17.48 Agence Française de Développement (loan)b 100.0 17.48 Green Climate Fund (loan)c 37.2 6.50 Green Climate Fund (grant)c 11.8 2.08 Government of Sindh 88.0 15.38

Total 572.0 100.00 a Inclusive of a $9.7 million project design advance. b Joint and contractual cofinancing to be partially administered by the Asian Development Bank. c Fully administered by the Asian Development Bank as an accredited entity. Source: Asian Development Bank estimates.

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D. Detailed Cost Estimates by Expenditure Category

Table 7: Detailed Cost Estimates by Expenditure Category ($million)

Foreign Currency

Local Currency

Total Cost

% of Total Base Cost

A. Investment Costs 1. Civil works 57.9 231.8 289.7 57.8

a. Relocation of Utilities 4.6 18.5 23.2 b. Main Corridor (24.2 km) and 2 depots a 41.7 166.7 208.3 c. Common Corridor Section (2.4 km) a 4.8 19.0 23.8 d. Off-Corridor Bus Stops and Improvements 1.1 4.5 5.6 e. Staging Facility (KGA) and Mezzanine Floor 5.3 21.0 26.3 f. BRT Network Expanded Control Center 0.5 2.0 2.6

2. Equipment 97.1 0.0 97.1 19.4 a. Rolling Stock 60.3 0.0 60.3 b. Feeder E-Vehicles 3.8 0.0 3.8 c. Other equipment (ITS, fare collection, etc.) 22.8 0.0 22.8 d. Biogas Plant for Waste-to-Fuel 10.2 0.0 10.2

3. Environment and Social Mitigation 0.0 4.5 4.5 0.9 a. Environmental Plan 0.0 0.6 0.6 b. Resettlement Plan 0.0 3.9 3.9

4. Bus Industry Transition Program 0.0 15.4 15.4 3.1 5. Consultants 24.7 0.0 24.7 4.9

a. Project Management and Construction Supervision 12.0 0.0 12.0 b. Project Design Advance 9.7 0.0 9.7 c. SMTA and TransKarachi Capacity Building 1.0 0.0 1.0 d. Conceptual Design of Network Integration 1.0 0.0 1.0 e. Post-Project Emissions’ Monitoring (GCF) 1.0 0.0 1.0

6. Taxes 0.0 60.3 60.3 12.0 Subtotal (A) 179.7 312.0 491.8 B. TransKarachi Operating Costs 0.0 9.2 9.2 1.8 Subtotal (B) 0.0 9.2 9.2 Total Base Cost 179.7 321.2 500.9 100 C. Contingencies

1. Physical 15.0 21.3 36.4 2. Price 2.7 11.5 14.1

Subtotal (C) 17.7 32.8 50.5 D. Financial Charges During Implementation

1. Interest During implementation 19.1 0.0 19.1 2. Commitment Charges 1.4 0.0 1.4

Subtotal (D) 20.6 0.0 20.6 Total Project Cost (A+B+C+D) 218.0 354.0 572.0

GCF = Green Climate Fund, ITS = intelligent transportation system, KGA = Karachi Goan Association, SMTA = Sindh Mass-Transit Authority. a Categories 1b. and 1c. include climate change adaptation costs equivalent to an estimated $20 million, and related to (i)

improved drainage infrastructure along the BRT corridor; (ii) bioswales and water retention measures, such as lane strips pavement for at-grade BRT lanes, vegetation in station verge, bioswale strip as delineator barrier, and permeable pavements for pedestrian paths and cycle ways. These will be partially funded by the Green Climate Fund grant.

Notes: Numbers may not sum precisely because of rounding. Sources: Asian Development Bank and Sindh Mass-Transit Authority estimates.

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E. Allocation and Withdrawal of Loans and Grant Proceeds

ALLOCATION AND WITHDRAWAL OF ADB LOAN PROCEEDS

Number

Item Total Amount Allocated for ADB Financing ($)

Percentage and Basis for Withdrawal from the

ADB Loan Account Category Subcategory

1 Works a/ b/ c/ 121,320,000 100% of total expenditures claimed*

2 Equipment b/c/ 26,220,000

2a Rolling Stock b/ c/ 15,540,000 100% of total expenditures claimed*

2b BRT Systems Equipment b/ c/ 10,680,000 100% of total expenditures claimed*

3 Bus Industry Transition Program, TransKarachi Operating Cost,b/

and Consultants

38,580,000 100% of total expenditures claimed*

4 PDA 10,200,000

4a PDA Principal 9,700,000 100% of amount due

4b PDA Interest 500,000 100% of amount due

5 Interest and Commitment Charges 11,190,000

5a ADB Interest and Commitment Charges

10,550,000 100% of amount due

5b GCF service charge, interest charge and Commitment Charges d/

640,000 100% of amount due

6 Unallocated 27,490,000

Total 235,000,000 a

Exclusive of utilities’ relocation to be borne 100% solely by the Government of Sindh. b No withdrawals shall be made from the Loan Account for Categories 1, 2 and 3 (except for consultants) until (a)

TransKarachi has appointed a chief executive officer (CEO), chief financial officer (CFO), general manager (GM) of planning, GM of operations, procurement officer, and an environment and social safeguards officer with qualifications and experience acceptable to ADB; and (b) ADB has completed integrity due diligence on the following members of the management team of TransKarachi: the CEO, CFO, GM of planning, and GM of operations and any issues arising have been addressed to ADB’s satisfaction.

c For categories 1 and 2 (Civil Works and Equipment) which will be jointly financed by ADB, AIIB, AFD, and GCF, the indicated percentage and basis for withdrawal from the ADB loan account is based on the fact that all four loans and the GCF grant will not be made effective at the same time. The Government of Pakistan may request for a phased financing of the project, with (i) the ADB loan and ADB-administered GCF loan and grant to be signed and declared effective in Fiscal Year July 2019 to June 2020; and (ii) the AFD and/or AIIB loans to be signed and declared effective in Fiscal Year July 2020 to June 2021. During the time when only ADB loan and GCF loan and grant are effective, ADB and GCF will finance 100% (exclusive of taxes and duties) of these two categories. Once AIIB and AFD loans have been declared effective, the respective percentages for ADB, AIIB, GCF and AFD financing will be revised, based on the remaining amounts to be financed for these two categories at the date of effectiveness of AIIB and AFD loans.

d No withdrawal shall be made from the Loan Account for category 5b until the Funded Activity Agreement (FAA) has been signed between ADB and the GCF, and the GCF Loan and Grant Agreements have been signed with the Government.

* Exclusive of taxes and duties imposed within the territory of the Borrower.

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ALLOCATION AND WITHDRAWAL OF GCF GRANT PROCEEDS

Number Item

Total Amount Allocated for GCF Financing ($)

Percentage and Basis for Withdrawal from the

GCF Grant Account Category Subcategory

1 Civil Works a/ b/ c/ 7,000,000 100% of total expenditures claimed*

2 Equipment (Feeder E-Vehicles) a/ 3,800,000 100% of total expenditures claimed*

3 Consultants 1,000,000 100% of total expenditures claimed*

Total 11,800,000 a No withdrawals shall be made from the Grant Account for categories 1 and 2 (Civil Works and Equipment) until (a)

TransKarachi has appointed a chief executive officer (CEO), chief financial officer (CFO), general manager (GM) of planning, GM of operations, procurement officer, and an environment and social safeguards officer with qualifications and experience acceptable to ADB; and (b) ADB has completed integrity due diligence on the following members of the management team of TransKarachi: the CEO, CFO, GM of planning, and GM of operations and any issues arising have been addressed to ADB’s satisfaction.

b No withdrawals shall be made from the Grant Account for category 1 (Civil Works) until SMTA and ADB have confirmed satisfactory use and installation of the innovative drainage features for BRT lanes, bicycle lanes and sidewalks constructed under the project.

c For categories 1 (Civil Works) which will be jointly financed by ADB, AIIB, AFD, and GCF, the indicated percentage and basis for withdrawal from the ADB loan account is based on the fact that all four loans and the GCF grant will not be made effective at the same time. The Government of Pakistan may request for a phased financing of the project, with (i) the ADB loan and ADB-administered GCF loan and grant to be signed and declared effective in Fiscal Year July 2019 to June 2020; and (ii) the AFD and/or AIIB loans to be signed and declared effective in Fiscal Year July 2020 to June 2021. During the time when only ADB loan and GCF loan and grant are effective, ADB and GCF will finance 100% (exclusive of taxes and duties) of these two categories. Once AIIB and AFD loans have been declared effective, the respective percentages for ADB, AIIB, GCF and AFD financing will be revised, based on the remaining amounts to be financed for these two categories at the date of effectiveness of AIIB and AFD loans.


ALLOCATION AND WITHDRAWAL OF GCF LOAN PROCEEDS

Number Item Total Amount Allocated for GCF Financing ($)

Percentage and Basis for Withdrawal from

the GCF Loan Account Category Subcategory

1 Equipment a/ b/ 37,200,000

1a Rolling Stock a/ b/ 27,000,000 100% of total expenditures claimed*

1b Biogas Plant for Waste-to-Fuel a/ b/ 10,200,000 100% of total expenditures claimed*

Total 37,200,000 a No withdrawals shall be made from the Loan Account for category 1 (Equipment) until (a) TransKarachi has appointed

a chief executive officer (CEO), chief financial officer (CFO), general manager (GM) of planning, GM of operations, procurement officer, and an environment and social safeguards officer with qualifications and experience acceptable to ADB; and (b) ADB has completed integrity due diligence on the following members of the management team of TransKarachi: the CEO, CFO, GM of planning, and GM of operations and any issues arising have been addressed to ADB’s satisfaction.

b For categories 1 (Equipment) which will be jointly financed by ADB, AIIB, AFD, and GCF, the indicated percentage and basis for withdrawal from the ADB loan account is based on the fact that all four loans and the GCF grant will not be made effective at the same time. The Government of Pakistan may request for a phased financing of the project, with (i) the ADB loan and ADB-administered GCF loan and grant to be signed and declared effective in Fiscal Year July 2019 to June 2020; and (ii) the AFD and/or AIIB loans to be signed and declared effective in Fiscal Year July 2020 to June 2021. During the time when only ADB loan and GCF loan and grant are effective, ADB and GCF will finance 100% (exclusive of taxes and duties) of these two categories. Once AIIB and AFD loans have been declared effective, the respective percentages for ADB, AIIB, GCF and AFD financing will be revised, based on the remaining amounts to be financed for these two categories at the date of effectiveness of AIIB and AFD loans.


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F. Detailed Cost Estimates by Financier

Table 8: Detailed Cost Estimates by Financier ($million)

GCF = Green Climate Fund, ITS = intelligent transportation system, KGA = Karachi Goan Association, SMTA = Sindh Mass-Transit Authority. Note: Numbers may not sum precisely because of rounding. Sources: Asian Development Bank and Sindh Mass-Transit Authority estimates.

Item

ADB AIIB AFD GCF Government Total Cost

Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount Taxes and

Duties

A. Investment Costs 1. Civil Works 121.32 39 68.4 22 69.8 23 7.00 2 43.01 14 309.56 19.86

a. Relocation of Utilities 0.00 0 0.00 0 0.00 0 0.00 0 23.15 100 23.15 0.00 b. Main Corridor (24.2 km) and 2 Depots 94.11 42 53.07 24 54.15 24 7.00 3 15.52 7 223.85 15.52 c. Common Corridor Section (2.4 km) 11.13 44 6.28 25 6.40 25 0.00 0 1.77 7 25.58 1.77 d. Off-corridor routes’ Bus Stops and Improvements 2.61 44 1.47 25 1.50 25 0.00 0 0.42 7 6.00 0.42 e. Staging Facility (KGA) and Mezzanine Floor 12.28 44 6.93 25 7.07 25 0.00 0 1.96 7 28.24 1.96 f. BRT Network Expanded Control Center 1.19 44 0.67 25 0.69 25 0.00 0 0.19 7 2.74 0.19

2. Equipment 26.22 19 14.79 11 15.09 11 41.00 30 38.51 28 135.61 38.51 a. Rolling Stock 15.54 20 8.76 11 8.94 11 27.00 34 18.08 23 78.33 18.08 b. Feeder E-Vehicles 0.00 0 0.00 0 0.00 0 3.80 64 2.11 36 5.91 2.11 c. Other Equipment (ITS, fare collection, etc.) 10.68 30 6.02 17 6.15 17 0.00 0 12.67 36 35.52 12.67 d. Biogas Plant for Waste-to-Fuel 0.00 0 0.00 0 0.00 0 10.20 64 5.66 36 15.86 5.66

3. Environment and Social Mitigation 0.00 0 0.00 0 0.00 0 0.00 0 4.53 100 4.53 0.00 a. Environmental Plan 0.00 0 0.00 0 0.00 0 0.00 0 0.62 100 0.62 0.00 b. Resettlement Plan 0.00 0 0.00 0 0.00 0 0.00 0 3.91 100 3.91 0.00

4. Bus Industry Transition Program 15.40 100 0.00 0 0.00 0 0.00 0 0.00 0 15.40 0.00 5. Consultants 23.70 89 0.00 0 0.00 0 1.00 4 1.95 7 26.65 1.95

a. Project Management and Construction Supervision 12.00 88 0.00 0 0.00 0 0.00 0 1.56 12 13.56 1.56 b. Project Design Advance 9.70 100 0.00 0 0.00 0 0.00 0 0.00 0 9.70 0.00 c. SMTA and TransKarachi Capacity Building 1.00 88 0.00 0 0.00 0 0.00 0 0.13 12 1.13 0.13 d. Conceptual Design of Network Integration 1.00 88 0.00 0 0.00 0 0.00 0 0.13 12 1.13 0.13 e. Post-Project Emissions’ Monitoring (GCF) 0.00 0 0.00 0 0.00 0 1.00 88 0.13 12 1.13 0.13

Subtotal (A) 186.64 38 83.20 17 84.90 17 49.00 10 88.00 18 491.75 60.32 B. Operating Costs – TransKarachi 9.18 100 0.00 0 0.00 0 0.00 0 0.00 0 9.18 0.00

Total Base Cost 195.82 39 83.20 17 84.90 17 49.00 10 88.00 18 500.93 60.32 C. Contingencies 27.49 54 11.40 23 11.63 23 0.00 0 0.00 0 50.51 0.00

1. Physical 19.55 54 8.32 23 8.49 23 0.00 0 0.00 0 36.36 0.00 2. Price 7.93 56 3.08 22 3.14 22 0.00 0 0.00 0 14.15 0.00

D. Financial Charges During Implementation 11.69 57 5.40 26 3.47 17 0.00 0 0.00 0 20.56 0.00 1. Interest During Implementation 10.75 56 5.16 27 3.23 17 0.00 0 0.00 0 19.14 0.00 2. Commitment Charges 0.94 66 0.24 17 0.24 17 0.00 0 0.00 0 1.42 0.00 Total Project Cost (A+B+C+D) 235.00 100.00 100.00 49.00 88.00 572.00 60.32 % Total Project Cost 41% 17% 17% 9% 15% 100%

14

G. Detailed Cost Estimates by Outputs

Table 9: Detailed Cost Estimates by Outputs ($ million)

Item Total Cost

Output 1 Output 2

Amount

% of Cost

Category Amount

% of Cost

Category

A. Investment Costs 1. Civil Works 289.70 289.70 100 0.00 0 a. Relocation of Utilities 23.15 23.15 100 0.00 0 b. Main Corridor (24.2 km) and 2 Depots 208.33 208.33 100 0.00 0 c. Common Corridor Section (2.4 km) 23.81 23.81 100 0.00 0 d. Off-corridor Bus Stops and Improvements 5.58 5.58 100 0.00 0 e. Staging Facility (KGA) and Mezzanine Floor 26.28 26.28 100 0.00 0 f. BRT Network Expanded Control Center 2.55 2.55 100 0.00 0 2. Equipment 97.10 0.00 0 97.10 100 a. Rolling Stock 60.25 0.00 0 60.25 100 b. Feeder E-Vehicles 3.80 0.00 0 3.80 100 c. Other Equipment (ITS, fare collection, etc.) 22.85 0.00 0 22.85 100 d. Biogas Plant for Waste-to-Fuel 10.20 0.00 0 10.20 100 3. Environment and Social Mitigation 4.53 4.53 100 0.00 0 a. Environmental Plan 0.62 0.62 100 0.00 0 b. Resettlement Plan 3.91 3.91 100 0.00 0 4. Bus Industry Transition Program 15.40 0.00 0 15.40 100 5. Consultants 24.70 12.00 49 12.70 51 a. Project Management and Construction Supervision 12.00 12.00 100 0.00 0 b. Project Design Advance 9.70 0.00 0 9.70 100 c. SMTA and TransKarachi Capacity Building 1.00 0.00 0 1.00 100 d. Conceptual Design of Network Integration 1.00 0.00 0 1.00 100 e. Post-Project Emissions’ Monitoring (GCF) 1.00 0.00 0 1.00 100 6. Taxes 60.32 21.42 36 38.90 64 Subtotal (A) 491.75 327.65 67 164.10 33 B. Operating Costs – TransKarachi 9.18 0.00 0 9.18 100 Subtotal (B) 9.18 0.00 0 9.18 100 Total Base Cost 500.93 327.65 65 173.28 34 C. Contingencies 1. Physical 36.36 26.66 73 9.71 27 2. Price 14.15 11.28 80 2.86 20 Subtotal (C) 50.51 37.94 75 12.57 25 D. Financial Charges During Implementation 1. Interest During Implementation 19.14 14.63 70 4.51 30 2. Commitment Charges 1.42 0.76 70 0.66 30 Subtotal (D) 20.56 15.40 75 5.17 25 Total Project Cost (A+B+C+D) 572.00 380.98 67 191.02 33


15

H. Detailed Cost Estimates by Year

Table 10: Detailed Cost Estimates by Year ($ million)


Item Total Cost Year 1 Year 2 Year 3 Year 4

A. Investment Costs 1. Civil Works 289.70 79.33 103.18 107.19 0.00

a. Relocation of Utilities 23.15 11.58 11.58 0.00 0.00 b. Main Corridor (24.2 km) and 2 Depots 208.33 62.50 62.50 83.33 0.00 c. Common Corridor Section (2.4 km) 23.81 0.00 11.91 11.91 0.00 d. Off-corridor Bus Stops and Improvements 5.58 0.00 2.79 2.79 0.00 e. Staging Facility (KGA) and Mezzanine Floor 26.28 5.26 13.14 7.88 0.00 f. BRT Network Expanded Control Center 2.55 0.00 1.28 1.28 0.00

2. Equipment 97.10 0.00 39.64 57.46 0.00 a. Rolling Stock 60.25 0.00 27.11 33.14 0.00 b. Feeder E-Vehicles 3.80 0.00 1.29 2.51 0.00 c. Other Equipment (ITS, fare collection, etc.) 22.85 0.00 7.77 15.08 0.00 d. Biogas Plant for Waste-to-Fuel 10.20 0.00 3.47 6.73 0.00

3. Environment and Social Mitigation 4.53 4.12 0.21 0.20 0.00 a. Environmental Plan 0.62 0.21 0.21 0.20 0.00 b. Resettlement Plan 3.91 3.91 0.00 0.00 0.00

4. Bus Industry Transition Program 15.40 0.00 0.00 15.40 0.00 5. Consultants 24.70 15.10 5.60 4.00 0.00

a. Project Management and Construction Supervision 12.00 4.80 4.80 2.40 0.00 b. Project Design Advance 9.70 9.70 0.00 0.00 0.00 c. SMTA and TransKarachi Capacity Building 1.00 0.30 0.40 0.30 0.00 d. Conceptual Design of Network Integration 1.00 0.30 0.40 0.30 0.00 e. Post-Project Emissions’ Monitoring (GCF) 1.00 0.00 0.00 1.00 0.00

6. Taxes 60.32 5.75 22.64 31.94 0.00 Subtotal (A) 491.75 104.30 171.27 216.18 0.00

B. Operating Costs - TransKarachi 9.18 3.06 3.06 3.06 0.00 Subtotal (B) 9.18 3.06 3.06 3.06 0.00

Total Base Cost 500.93 107.36 174.33 219.24 0.00 C. Contingencies

1. Physical 36.36 6.78 13.12 16.46 0.00 2. Price 14.15 3.20 4.65 6.29 0.00

Subtotal (C) 50.51 9.98 17.78 22.76 0.00 D. Financial Charges During Implementation

1. Interest During Implementation 19.14 1.67 5.84 11.64 0.00 2. Commitment Charges 1.42 0.95 0.34 0.13 0.00

Subtotal (D) 20.56 2.62 6.18 11.77 0.00 Total Project Cost (A+B+C+D) 572.00 119.96 198.29 253.76 0.00 % Total Project Cost 100% 21% 35% 44% 0.00

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I. Contract and Disbursement S-Curve8

Contract Awards and Disbursement – ADB Loan

Contract Awards (in $ million) Disbursements (in $ million)

Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total

2019 0.00 0.00 0.00 9.70 9.70 2019 0.00 0.00 0.00 7.28 7.28

2020 106.91 0.00 12.20 42.75 161.86 2020 17.46 15.38 18.49 23.53 74.87

2021 3.26 0.00 16.09 0.00 20.16 2021 28.07 26.56 31.15 16.70 102.48

2022 1.50 0.00 1.50 0.00 3.00 2022 7.03 0.40 1.90 0.15 9.48

2023 7.10 7.10 7.28 7.10 28.59 2023 10.18 10.18 10.36 10.20 40.90

Total 223.31 Total 235.00

Projected Contract Awards and Disbursement

Contract Awards and Disbursement – GCF Grant



2019 0.00 0.00 0.00 0.00 0.00 2019 0.00 0.00 0.00 0.00 0.00

2020 6.80 0.00 3.80 0.00 10.60 2020 1.02 0.96 1.53 1.61 5.13

2021 0.00 0.00 0.00 0.00 0.00 2021 1.61 1.61 1.61 0.65 5.47

2022 0.00 0.00 0.00 0.20 0.00 2022 0.00 0.00 0.00 0.00 0.00

2023 0.05 1.05 0.05 0.05 1.20 2023 0.05 0.20 0.48 0.48 1.20


8 Projections include contract award and disbursement amounts of project design advance. The amount in Q4 2019 is

the actual contract awards and disbursement under the project design advance.

0

50

100

150

200

250

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2019 2020 2021 2022 2023

Cumulative Contract Awards Cumulative Disbursement

17


Contract Awards and Disbursement – GCF Loan



2019 0.00 0.00 0.00 0.00 0.00 2019 0.00 0.00 0.00 0.00 0.00

2020 0.00 10.20 0.00 27.00 37.20 2020 0.00 1.53 2.17 6.22 9.92

2021 0.00 0.00 0.00 0.00 0.00 2021 7.91 7.91 5.74 5.74 27.29

2022 0.00 0.00 0.00 0.00 0.00 2022 0.00 0.00 0.00 0.00 0.00

2023 0.00 0.00 0.00 0.00 0.00 2023 0.00 0.00 0.00 0.00 0.00



0

4

8

12


2019 2020 2021 2022 2023


0

10

20

30

40


2019 2020 2021 2022 2023


18

Contract Awards and Disbursement – AIIB Loan



2019 0.00 0.00 0.00 0.00 0.00 2019 0.00 0.00 0.00 0.00 0.00

2020 51.55 0.00 6.02 24.11 81.68 2020 7.73 7.30 8.21 11.94 35.18

2021 1.12 0.00 0.00 0.00 1.12 2021 13.62 13.61 13.61 6.31 47.14

2022 0.00 0.00 0.00 0.00 0.00 2022 0.16 0.16 0.16 0.00 0.48

2023 2.95 2.95 2.95 2.95 11.80 2023 4.30 4.30 4.30 4.30 17.20



Contract Awards and Disbursement – AFD Loan



2019 0.00 0.00 0.00 0.00 0.00 2019 0.00 0.00 0.00 0.00 0.00

2020 52.60 0.00 6.15 24.60 83.35 2020 7.89 7.45 8.37 12.19 35.90

2021 1.12 0.00 0.00 0.00 1.12 2021 13.89 13.88 13.88 6.43 48.09

2022 0.00 0.00 0.00 0.00 0.00 2022 0.16 0.16 0.16 0.00 0.48

2023 3.02 3.02 3.02 3.02 12.06 2023 3.88 3.88 3.88 3.88 15.53



0

20

40

60

80

100


2019 2020 2021 2022 2023


0

20

40

60

80

100


2019 2020 2021 2022 2023


19

J. Fund Flow Diagram

*PMU at SMTA will not be financed by ADB. SMTA will have overall responsibility and oversight but will not have financial or procurement activities. ADB = Asian Development Bank, AFD = Agence Française de Developpement, AIIB = Asian Infrastructure Investment Bank, GCF = Green Climate Fund, SMTA = Sindh Mass-Transit Authority

ADB / AIIB / AFD / GCF

Government of Pakistan

SMTA* Executing Agency

Government of Sindh

Suppliers of Goods

Contra

ct In

voic

e

Direct payment by ADB/GCF, AIIB, and AFD

Contractors

Consultants

Advance Payment / Replenishment / Liquidation by ADB

Document flow

Funds flow

TransKarachi Implementing

Agency

Withdrawal Applications for Direct Payment to ADB and AIIB

Withdrawal Applications for Advance Fund to ADB (1 Advance Account)

Contra

ct In

voic

e

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V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

12. The financial management assessment (FMA) was conducted in April and May 2018 in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due Diligence: A Methodology Note. The FMA considered the capacity of the implementing agency, TransKarachi, including funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. Based on the assessment, the key project financial management risks identified as moderate or substantial are (i) compliance risk due to lack of knowledge by TransKarachi on ADB policies and procedures; (ii) execution risk due to staff not having understanding of financial management requirements; and (iii) accounting procedures for TransKarachi to be developed and implemented and likelihood of errors and omissions are expected. While considering the present internal control environment, present staffing, company’s experience in implementing development projects, supervisory procedures and technical and financial capability, it is concluded that the overall premitigation financial management risk of the implementing agency is ‘Substantial’. 13. Although TransKarachi is still being established as a commercial business entity and its financial management system is not yet in place, the Project Management, Coordination and Capacity Building (PMCCB) consultants engaged under the Project Design Advance (PDA) are developing the structure and necessary tools to establish a solid financial management system in TransKarachi, and will provide operational guidelines such as project management, budgeting and reporting. PMCCB is also in the process of hiring highly qualified staff to ensure strong financial management of the company. We conclude that these measures will ensure appropriate use of the advance account and statement of expenditure procedures for which the thresholds set are currently at minimum levels.

Table 11: Risk Assessment and Risk Mitigation Measures

Risk Type Risk

Assessment Proposed Mitigating Measures

Inherent Risks

Country–Specific S When TransKarachi becomes functional, an Internal Audit Committee will be constituted. An Internal Auditor is included in TransKarachi’s organogram, who will report to BOD for all internal audit matters.

The IA will be required to prepare monthly budget monitoring reports. TransKarachi will be deployed with a cost control system (software) to monitor project’s budget management.

IA will liaise with Administrative Department and AGP for convening of DAC. ADB will liaise with IA on settlement of audit observations.

The government agreed to allocate funds timely to TransKarachi.

Entity–Specific M Adequate staff are being hired for TransKarachi with assistance of PMCCB consultants. Moreover, manuals outlining procedures policies roles, responsibilities are also being devised by PMCCB for smooth functionality of TransKarachi. Also, FMM will be adopted by IA for guidance on BRT’s financial management matters. Regular trainings and hand holding will be provided by ADB in project’s implementation through supervision missions and workshops.

Overall Assessment S

21

Risk Type Risk

Assessment Proposed Mitigating Measures

Control Risks

1. Implementing Entity

M FMM will be adopted by IA for guidance on BRT’s financial management matters.

Regular trainings and hand holding will be provided by ADB in project’s implementation through supervision missions and workshops.

2. Staffing M PMCCB is in the process of hiring staff for TransKarachi with advanced recruitment methods to attract the best talent in the market. Moreover, trainings and technical hand holding will be provided to staff at TransKarachi to adapt with ADB’s FM requirements.

3. Accounting and Reporting

S FMM developed by ADB will be adopted by IA as technical back-stopping. Subsequently, regular supervision missions and trainings by ADB will further enhance the capacity to build and establish an effective financial management system.

PMCCB will deploy an accounting software for cost control which will be a stepping stone in establishment of a financial management system for the project and TransKarachi.

4. Internal Audit S TransKarachi will use the MIS under PIFRA. The MIS will stop payments that are not budgeted and raise red flags. Automatic weekly and monthly reports show the management where problems originate so internal financial processes can be improved. Finance section to perform budget and compliance checks before any payment is processed.

5. External Audit L The ADB-funded program will be audited annually in accordance with international standards by the AGP, with audit reports provided to ADB.

6. Reporting and Monitoring

M PMCCB will deploy an accounting software for cost control which will be a stepping stone in establishment of a financial management system for the project and TransKarachi. PMCCB will provide operational guidelines such as project management, budgeting and reporting. PMCCB is also in the process of hiring staff with advanced recruitment methods to attract the best talent in the market.

TransKarachi will adopt ADB’s FMM in preparing financial reporting.

7. Information Systems

M PMCCB will deploy an accounting software for cost control which will be a stepping stone in establishment of a financial management system for the project and TransKarachi.

8. Internal Controls

M A comprehensive section is included in FMM which describes step-wise guidance on expenditure management defining the service standards and pre-requisite supporting documentation for payment processing. FMM will be adopted by TransKarachi.

Overall Assessment of Control Risk

S

M = Moderate, S = Substantial ADB = Asian Development Bank, AGP = Auditor General of Pakistan, BOD = board of directors, BRT = bus rapid transit, DAC = Departmental Accounts Committee, FMM = financial management manual, IA = implementing agency, MIS = management information system, PIFRA = Project for Improvement of Financial Reporting and Auditing, PMCCB = project management, coordination and capacity building. Source: Asian Development Bank

14. The borrower, SMTA and TransKarachi have agreed to implement an action plan as key measures to address the deficiencies. The financial management action plan is provided in Table 12.

22

Table 12: Financial Management Action Plan Action Responsibility Resources Timeline

1. Adopt Financial Management Manual and tailor it as per the need of the project

TransKarachi CFO TransKarachi Within 1 month after hiring of CFO

2. Hire Accounts Officer and Assistant Accounts Officer

TransKarachi Project Director Within 1 month after effectiveness

3. Dedicate full-time staff to PIU to execute project activities

TransKarachi CEO TransKarachi Within 1 month after effectiveness

4. Timely opening of Advance Account

TransKarachi CFO TransKarachi Start opening process upon effectiveness

5. Deployment of software to ensure cost control in project management

PMCCB/ TransKarachi

CFO TransKarachi Within 12 months after CFO appointment

PMCCB = Project Management, Coordination and Capacity Building, CEO = Chief Executive Officer, CFO = Chief Financial officer. Source: Asian Development Bank.

B. Disbursement

1. Disbursement Arrangements for ADB and GCF Funds

15. The loan and grant proceeds (including ADB-administered GCF funds) will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time),9 and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.10 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.

16. Direct payment procedure. This procedure will be used for payment to contractors, suppliers of goods, and supervision consultants. There are 4 anticipated large civil works contracts which will be administered by TransKarachi. The contractors will submit an invoice along with an interim progress certificate (IPC) showing the completed civil works for the period. The construction supervision consultants will review the interim progress certificate against the contract and endorse the invoice to TransKarachi. Upon satisfactory review, TransKarachi will prepare a withdrawal application (WA) for direct payment to the contractor, for signature of loan authorized signatories. ADB will make payment to the contractor based on the submitted WA.

17. Direct payment procedure will also be used for payment to consultants, notably the Project Management and Construction Supervision Consultant (PMCSC), whose contract is to be administered by TransKarachi. PMCSC will submit its invoices to TransKarachi for verification. Once the invoices and inputs are verified, TransKarachi’s will prepare a WA for direct payment, for signature of the loan authorized signatories. ADB will make direct payment to the account of the consultant based on the WA.

18. The contracts for supply of equipment and vehicles will be administered by TransKarachi. The suppliers will prepare their invoices according to the conditions in the contract and submit these to TransKarachi for approval. Upon approval, TransKarachi will prepare a WA for direct payment to the supplier, for signature of the loan authorized signatories.

9 Available electronically from ADB website: http://www.adb.org/documents/ loan-disbursement handbook 10 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning

http://wpqr4.adb.org/disbursement_elearning

23

19. Commitment letter procedure. Under the commitment procedure, ADB, at the request of the Borrower, irrevocably agrees to reimburse a commercial bank for payments made or to be made to a supplier against a letter of credit opened by the IA. The letter of credit issued by the IA’s bank (letter of credit issuing bank) becomes operative only if and when ADB issues its Commitment Letter to the advising or negotiating bank. ADB Commitment Letter can only be issued for the share of ADB funds and funds under ADB full-administration.

20. Advance fund procedure. This procedure will be used for small payments of eligible project expenditures. The advance account for TransKarachi will be established at the National Bank of Pakistan, in accordance with “Revised Accounting Procedure for Revolving Fund Account (Foreign Aid Assignment Account) dated 2 August 2013 issued by the Finance Division, Government of Pakistan. Separate advance accounts should be established and maintained by TransKarachi for each funding source. The currency of the advance account is the US dollar. The advance account is to be used exclusively for ADB’s share of eligible expenditures. TransKarachi who administers the advance account is accountable and responsible for proper use of advances to the advance account including advances to any sub-accounts.

21. The total outstanding advance to the advance account should not exceed the estimate of ADB’s share of expenditures to be paid through the advance account for the minimum of forthcoming 6 months and maximum of $1.5 million. TransKarachi may request for initial and additional advances to the advance account based on an Estimate of Expenditure Sheet11 setting out the estimated expenditures to be financed through the account for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by TransKarachi in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time) when liquidating or replenishing the advance account.

22. Statement of expenditure procedure.12 The SOE procedure may be used for reimbursement of eligible expenditures or liquidation of advances to the advance account(s). The ceiling of the SOE procedure is the equivalent of $100,000 per individual payment. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the WA to ADB.

23. Before the submission of the first WA, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the WA on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per WA is stipulated in the Loan Disbursement Handbook (2017, as amended from time to time). Individual payments below such amount should be paid (i) by TransKarachi and subsequently claimed to ADB through reimbursement, or (ii) through the advance fund procedure, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract

balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements (CPD)13 system is encouraged for submission of WA to ADB.

11 Estimate of Expenditure sheet is available in Appendix 8A of ADB’s Loan Disbursement Handbook (2017, as

amended from time to time), 12 SOE forms are available in Appendix 7B and 7D of ADB’s Loan Disbursement Handbook (2017, as amended from

time to time). 13 The CPD facilitates online submission of WA to ADB, resulting in faster disbursement. The forms to be completed

by the Borrower are available online at https://www.adb.org/documents/client-portal-disbursements-guide.

https://www.adb.org/documents/client-portal-disbursements-guide

24

24. Cofinancing. For AIIB and AFD funds partially-administered by ADB, the borrower should submit one original of the WA and copies of supporting documents to AIIB and AFD, and one original of the WA and copies of supporting documents to ADB. ADB will review each WA and advise AIIB and AFD to make the necessary payment, if any.

25. For Civil Works and Equipment categories to be jointly financed by ADB, AIIB, AFD, and GCF, the indicated percentage and basis for withdrawal from the ADB loan account is based on the fact that all four loans and the GCF grant will not be made effective at the same time. The Government of Pakistan may request for a phased financing of the project, with (i) the ADB loan and ADB-administered GCF loan and grant to be signed and declared effective in Fiscal Year July 2019 to June 2020; and (ii) the AFD and/or AIIB loans to be signed and declared effective in Fiscal Year July 2020 to June 2021. During the time when only ADB loan and GCF loan and grant are effective, ADB and GCF will finance 100% (exclusive of taxes and duties) of these two categories. Once AIIB and AFD loans have been declared effective, the respective percentages for ADB, AIIB, GCF and AFD financing will be revised, based on the remaining amounts to be financed for these two categories at the date of effectiveness of AIIB and AFD loans.

26. Conditions for withdrawal. No withdrawals shall be made from the ADB Loan Account and GCF Loan and Grant Accounts for Categories 1, 2 and 3 (except for consultants) until (a) TransKarachi has appointed a chief executive officer (CEO), chief financial officer (CFO), general manager (GM) of planning, GM of operations, procurement officer, and an environment and social safeguards officer with qualifications and experience acceptable to ADB; and (b) ADB has completed integrity due diligence on the following members of the management team of TransKarachi: the CEO, CFO, GMs of planning and operations, and any issues arising have been addressed to ADB’s satisfaction. ADB also reserves the right to discontinue disbursements in case any change in the TransKarachi Board of Directors composition or change in the Management team has taken place during implementation without ADB’s prior approval.

27. No withdrawal shall be made from the ADB Loan Account for category 5b until the Funded Activity Agreement (FAA) has been signed between ADB and the GCF, and the GCF Loan and Grant Agreements have been signed with the Government.

28. No withdrawals shall be made from the GCF Grant Account for category 1 (Civil Works) until SMTA and ADB have confirmed satisfactory use and installation of the innovative drainage features for BRT lanes, bicycle lanes and sidewalks constructed under the project.

2. Disbursement Arrangements for Counterpart Fund

29. All disbursements under government financing will be carried out in accordance with regulations of the Islamic Republic of Pakistan relevant to co-financing of the projects financed by the Multilateral Financing Organizations. The Government will finance local taxes. Value added tax (VAT) will be claimed by the contractors, suppliers, and consultants in their IPC, and TransKarachi will approve invoices including VAT. TransKarachi will pay the claimed VAT to Sindh Revenue Board. TransKarachi will arrange for payment for the rest of the amount to the contractors, suppliers and consultants. The deducted income tax will be paid by TransKarachi to the Federal Board of Revenue. The deducted income tax will be reflected in the income of contractors, suppliers, and consultants when submitting their finance balance sheets to Sindh Revenue Board.

25

C. Accounting

30. TransKarachi will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following International Public Sector Accounting Standard for cash-based accounting. TransKarachi’s PIU will prepare project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices. D. Auditing and Public Disclosure

31. TransKarachi will cause the project financial statements to be audited in accordance with International Standards for Supreme Audit Institutions, by an independent auditor acceptable to ADB, such as the Auditor General of Pakistan. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by TransKarachi. 32. The audited entity financial statements, together with the auditor’s report and management letter, will be submitted in the English language to ADB within 1 month after their approval by the relevant authority.

33. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the loans and grant were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable). 34. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

35. The government, SMTA and TransKarachi have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.14 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for 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. ADB reserves the right to verify the project's financial accounts to confirm that ADB’s financing share is used in accordance with ADB’s policies and procedures.

14 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months.

(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.

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36. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.15 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.16

15 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications 16 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2011.

Public Communications Policy. Paragraph 97(iv) and/or 97(v).

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

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VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

37. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Guidelines (2015, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, Sindh Mass-Transit Authority (SMTA) and TransKarachi have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. 38. Advance contracting. Advance contracting will be undertaken for the construction of the BRT corridor and buildings, notably Package 1 (Lot–1: Reach 1: Numaish Churangi to Askari Park; Lot–2: Reach 2: Darul Uloom Ghosia Trust to Jamia Masjid Al-Raheem Trust including Bus Depot at Mosmiyat; and Lot–3: Reach 3: Shumail Complex to Malir Halt Bus Depot at Malir Halt. Prior to loan effectiveness (i) bid documents will be drafted and agreed, (ii) invitation for bids will be advertised and (iii) evaluation of proposals will be carried out. 39. Retroactive financing. Retroactive financing will be applied for payment of the maximum amount of eligible expenditures from October 2018 to September 2019 (12 months) up to equivalent of 20% of the total ADB loan, incurred for a period not exceeding 12 months before loan signing.

B. Procurement of Goods, Works, and Consulting Services

40. All procurement (including consulting services) will be undertaken in accordance with ADB’s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). As the AIIB will co-finance the project and ADB will administer the co-financing, universal procurement will apply for civil works, goods and consulting services financed under the project.17 The terms of reference (TOR) for all consulting services are detailed in Section D. 41. Open competitive bidding procedures will be used for civil works contracts estimated to cost $15 million or more, and supply contracts valued at $2 million or higher. Request for quotations Shopping will be used for contracts for procurement of works and equipment worth less than $0.10 million. 42. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. 43. The TOR of the consultants for engineering design, procurement and construction management (EPCM) under the project design advance (PDA) loan indicate that Phase 2 of the EPCM assignment may include construction supervision of the civil works in the ensuing loan. However, due to the size of the proposed Project Management and Construction Supervision Consultants (PMCSC) package ($12 million), this option was disallowed by the Procurement, Portfolio and Financial Management Department (PPFD). The Procurement Regulations for ADB Borrowers (2017, as amended from time to time) specifies that if the downstream assignment is substantially larger in value compared to the initial assignment, a competitive process acceptable

17 ADB. 2015. Enhancing Operational Efficiency of the Asian Development Bank. Manila.

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to ADB shall be followed. Therefore, quality and cost-based selection method will be used to recruit the PMCSC with a quality-cost ratio of 90:10. An estimated 1,935 person-months (57 international, 1,878 national) of consulting services are required to supervise civil works under the project. 44. PPFD has endorsed the use of direct contracting method in the recruitment of the consultant for the “Conceptual Design of Network Integration”, based on the principle of continuity and best practices in BRT network design. This will ensure consistency of design and interoperability of BRT routes among all BRT corridors. Logit, in association with the Rebel Group and Exponent Engineers was originally recruited to prepare the final conceptual design and operational plan of the BRT Red Line (the proposed Project). C. Procurement Plan

45. The Procurement Plan is detailed in Attachment 1. D. Consultant's Terms of Reference

46. The draft TOR for the Project Management and Construction Supervision Consultant (PMCSC) is in Attachment 2. The TORs for (i) Conceptual Design of Network Integration; (ii) SMTA and TransKarachi’s Capacity Building; and (iii) Post-Project Emissions Monitoring will be drafted at a later stage prior to loan effectiveness.

VII. SAFEGUARDS

A. Resettlement

47. The project is categorized as A for Involuntary Resettlement. The government through TransKarachi, on behalf of Sindh Mass Transit Authority (SMTA), shall ensure that the design of the Karachi BRT minimizes land acquisition and resettlement impacts by exploring design alternatives that limits most works within the existing right of way and un-encroached sections and all other activities under the project are carried out in full compliance with all applicable laws and regulations of Pakistan, ADB’s Safeguards Policy Statement (SPS) 2009, and the approved resettlement plan and livelihood restoration plan (LRP). SMTA shall ensure that:

(i) the final and implementation-ready resettlement plan (RP) and detailed livelihood restoration plan (LRP) following the detailed design is submitted to ADB for review prior to awarding of civil works contracts;

(ii) the final and implementation ready RP and LRP duly endorsed by SMTA are disclosed through information brochures to affected persons (APs) in their local language in accordance with ADB’s SPS;

(iii) handling over of site/commencing of civil works in sections/civil work packages with involuntary resettlement impacts is made only upon completion of RP implementation as verified by an external monitor;

(iv) all land and rights of way required by the project shall be cleared and made available in a timely manner (in accordance with the schedule as agreed in the relevant civil works contract);

(v) without limiting the application of the Involuntary Resettlement Safeguards or the RP, SMTA shall ensure that no land shall be acquired for the purpose of the project under the emergency acquisition provisions of the Land Acquisition Act and Regulations of Sindh Province, as amended from time to time;

(vi) the activities of the civil works contractor for the project are in compliance with the approved RP and no physical displacement or economic displacement shall occur

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and section or part of a section is handed over to the civil works contractor until: (a) compensation at full replacement cost has been paid to all affected persons in accordance with the final RP for relevant civil works contract packages or sections that are ready to be constructed; (b) other entitlements listed in the updated and final RP have been provided to affected persons; and (c) RP implementation report is submitted to ADB and determined as satisfactory;

(vii) ensure that alternative sustainable replacement stalls at overhead and underground pedestrian bridges are constructed and sufficient time is provided to relocating microbusinesses to move and re-establish their livelihood. If required, temporary vending sites during construction will be provided to ensure continuation of their livelihood activities.

48. Any unanticipated land acquisition and resettlement (LAR) impacts encountered during implementation of project will be dealt in accordance with the ADB approved RP and ADB’s SPS 2009 requirements. However, change to the scope, location or alignment of the project shall be avoided and if during design review or implementation of the project, any such change to the scope, location or alignment of the project is identified, shall not be made without prior approval of ADB. Any new LAR-related impacts as a result of final detail engineering design or changing in project scope, location or alignment will require a new RP which should be submitted to ADB for its approval. The additional plan should be prepared following ADB’s SPS and its required guidelines. No construction activities shall be commenced in the sections with new/additional LAR impacts before full implementation of ADB approved RP is confirmed and cleared by ADB. 49. TransKarachi, with support from the Project Management and Construction Supervision Consultants (PMCSC), will implement the RP livelihood restoration plan, and corrective actions, as needed. TransKarachi will build necessary capacity for supervising RP management and internal monitoring of its implementation. At least four specialists will be hired by TransKarachi under the Project Planning and Implementation Unit (PPIU), a Director for Environment and Social Safeguards (DESS), Assistant Director – Resettlement (ADR), Assistant Director – Environment (ADE), and Assistant Director – Gender and Community Mobilization (ADGCM). These specialists will oversee implementation and conduct internal monitoring of social and environment safeguard instruments RP, gender action plan (GAP) and environmental management plan (EMP), livelihood restoration program (LRP) and grievance redress mechanism (GRM) by all concerned parties of the project, throughout project operations and ensure the quality of services provided by CSC. Staff with relevant qualification and experience will be hired for all positions under Environment and Social Unit and will eventually be absorbed in the TransKarachi. The ADR and ADGCM will work jointly with international and national Resettlement Specialists under the CSC throughout the project implementation of RP.

50. Grievance Redress: TransKarachi shall ensure (i) efficient grievance redress mechanisms are in place and functional prior starting RP implementation and contractor’s mobilization to assist affected persons resolve queries and complaints, if any, in a timely manner; (ii) all complaints are registered, investigated and resolved in a manner consistent with the provisions of Grievance Redress Mechanism as agreed in the ADB approved resettlement plan; (iii) the complainants/aggrieved persons are kept informed about status of their grievances and remedies available to them; and (iv) adequate staff and resources are available for supervising and monitoring the implementation progress of the RP and LRP. 51. Information Disclosure and Stakeholder Participation: TransKarachi shall ensure that the RP and monitoring reports are disclosed by: (i) uploading the draft and ADB approved final RP on SMTA and ADB websites, (ii) placing information brochures on the approved RP translated

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into Urdu in the offices of SMTA, TransKarachi, Planning and Development Department and representatives of APs, and (iii) translating the executive summary of the ADB approved RPs, bearing information on project impacts, asset valuation, entitlements, compensation budget and provisions with institutional arrangements in place and providing to the APs. 52. A continued process of gender-inclusive consultation and participation of stakeholders particularly with APs will be followed to ensure transparency in implementation of RP and to keep the stakeholders informed and receiving and incorporating their feedback at various stages of project implementation. It will provide a good measure to improve the social acceptability of the project and ensure effective participation of the stakeholders especially APs in the process of RP implementation, and the Project. Public consultation will assist obtaining cooperation from informed APs and other stakeholders, to avoid cost and time in dealing with complaints. TransKarachi and SMTA will continue the public consultation process by taking following steps (Details on the consultation plan is provided in the approved RP):

(i) ADR, ADGCM of TransKarachi, and CSC National Resettlement Specialist and other staff will keep a close liaison with the stakeholders including women, particularly with APs; record and address their cancers relating to the implementation of RP and construction related works.

(ii) The project will engage a female social staff to ensure ongoing consultations with women and address their issues, and to ensure that women and girls are equally benefitted from the project. During the RP implementation, TransKarachi will consider women and young girl’s views as a result of planned consultations.

(iii) Consultations with male and female of affected households (AHs) for formulating and implementing detailed LRP involving activities related to improving access to project-related jobs, training, development and relocation of affected businesses to new/alternative market sites, and other related activities.

(iv) Organize public meetings particularly with APs and AHs and appraise them about implementation progress of RP, particularly payment of compensation, resettlement and rehabilitation assistance, and other social activities.

(v) Make extra efforts to ensure that vulnerable APs understand the process and their entitlements, and mitigation measure will be taken by the project authorities to address APs and other stakeholder concerns in accordance with the ADB SPS 2009 and ADB PCP 2011.

(vi) Detail and outcome of all consultation activities will be included in Bi-Annual and Annual Monitoring Reports.

(vii) Disclose all monitoring reports of the RP implementation in the same manner as that of the RP at SMTA and TransKarachi website and to the APs, and other stakeholders.

B. Environment

53. The project is categorized as A for environment safeguards. The environmental impact assessment (EIA) has been prepared by the Government of Sindh’s (GoS) Transport and Mass Transit Department (TMTD) following ADB’s SPS 2009, and the Sindh Environmental Protection Act (2014). 54. To ensure compliance with the ADB’s SPS 2009 and the country environmental legislation, GoS through the PMU, will follow the EIA and environmental management plan (EMP). The PIU will ensure that:

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(i) updated EIA report, and EMPs are prepared for the detailed design as required under the SPS, the Sindh Environmental Protection Act (2014), and other provincial environmental rules and regulations;

(ii) the environmental impact assessment reports are submitted to the Sindh Environmental Protection Agency and environmental approval is sought thereof before starting civil works;

(iii) updated EIA reports are submitted to ADB for review and disclosure; (iv) the EMPs are included in bidding documents for all contracts; (v) all contractors prepare, and submit to the PIU for approval at least 10 days before

taking possession of any work site, and implement site-specific EMPs; (vi) no access to the site will be allowed until the site specific EMPs is approved by PIU; (vii) implementation of the site-specific EMPs is regularly monitored through PIU, and

ADB consultants; (viii) non-compliance notice will be issued to the contractor if the PIU requires action to

be taken. The contractor is required to prepare a corrective action plan which is to be implemented by a date agreed with the PIU;

(ix) the environment-related documents, specifically EIA, EMP and Environmental Monitoring Reports, are disclosed on the project website;

(x) in case of unpredicted environmental impacts occurring during project implementation, corrective action plans are prepared and implemented; and semi-annual safeguard monitoring reports are submitted to ADB within 1 month after the reporting period.

C. Indigenous Peoples

55. The project will not adversely affect people classified as indigenous people as defined by the ADB’s SPS 2009. 56. Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the Safeguard Policy Statement (2009).

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VIII. GENDER AND SOCIAL DIMENSIONS

57. The project is classified as effective gender mainstreaming (EGM) and has outlined concrete actions and targets that increase women’s share in BRT ridership, institute measures to ensure women’s security and safety, and improve women’s meaningful participation in BRT operations, among others. The project’s gender action plan (GAP) details specific measures that will ensure a social and gender-inclusive BRT operation. The proposed plan for the implementation of the GAP is such as follows:

(i) A full-time social and gender specialist will be hired as part of the staff of TransKarachi to ensure the timely and quality implementation of the GAP.

(ii) This gender specialist will be supported by one full-time gender consultant under the “SMTA and TransKarachi Capacity Building” consulting package, financed under the project.

(iii) In addition, TransKarachi will use its operational expenditures (ADB-financed) to hire an NGO to conduct the proposed gender-specific campaigns and surveys.

(iv) The Project Management and Construction Supervision Consultant (PMCSC) will include staff dedicated to compliance with ADB’s social, gender and environmental safeguards during implementation.

(v) Technical gender support may be provided by PRM-based gender specialist consultant and HQ-based gender specialist, as needed. Regular consultation meetings with various stakeholders will be done throughout project implementation.

(vi) Progress towards the achievement of gender targets in the DMF as well as those in the GAP will be monitored and reported regularly by TransKarachi’s gender staff and included in semi-annual monitoring reports, with a distinct section that provides sex-disaggregated data demonstrating the extent of implementation of gender activities, and describing challenges met and actions taken to overcome them.

(vii) The cost of implementing the GAP is included in the project’s Cost and Financing section.

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GENDER ACTION PLAN

Activities Targets and Indicators Responsibility Timeframe

Outcome: Quality of public transport in Karachi is improved

0.1 Establish a ‘Safe BRT Travel Program’ campaign addressing all forms of harassment, violence, bullying, theft, and other security concerns.

0.1.1 Mechanisms to report and address incidents of sexual and other forms of harassment or crimes, developed and disseminated to the riding public. 0.1.2 All BRT employees trained to handle and record incidents of sexual harassment and other crimes. 0.1.3 A database of incidents is established, with periodic analysis conducted to identify ‘hot spots’ and new measures to curb them.

• PMCCB consultants support

• SMTA (Gender specialist)

• TransKarachi (PIU Social and gender staff)

Q3 2019–Q4 2021

0.2 Conduct periodic rapid ridership surveys to track changes in (i) size and diversity of riders, and (ii) their satisfaction level.

0.2.1 Two rapid ridership surveys conducted and analysed according to sex, age, and general employment status (employed, self-employed, not employed, student) 0.2.2 At least 15% female ridership in the first year of operation, and increased to 20% in the last year of project implementation (2022). 0.2.3 At least 50% of each surveyed group (male vs. female respondents) are satisfied with (i) reliability; (ii) security/safety; (iii) comfort; (iv) access; (v) connectivity; (vi) affordability; and (vii) information provision of BRT services. (2015 Baseline: only 15% women and 28% men have positive perceptions of the reliability, security and safety, and comfort of public buses).

1st survey: at the end of first year of operations (2021) 2nd survey: on the last year of project implementation (2022)

0.3 Conduct impact study of the use of the BRT for women, men, children, people with disabilities, the elderly, and other vulnerable groups.

0.3.1 One video documentary produced capturing the pre- and post- BRT commuting experiences and perceptions of equal number of male and female interviewees. 0.3.2 A full report documenting the impact of the BRT on the (i) lives of the commuting public, segregated by sex, age, ability, and general employment status, and (ii) economic situation of Karachi.

Q1–Q4 2022

Output 1. Karachi’s first sustainable BRT corridor and associated facilities constructed

1.1 Construct social and gender-inclusive BRT stations according to international standards.

1.1.1 All BRT stations have (i) platform level boarding, tensile marking, ramps or escalators; (ii) separate queuing spaces for women and men; (iii) marked priority seating in waiting areas for the elderly, people with disabilities, and pregnant women; (iv) separate restrooms for males and females, with diaper-changing facilities; and (v) well-lit and unobstructed floor design with visible and operational CCTVs, 1.1.2 All BRT stations have visible anti-harassment and bullying features that also deter other crimes, such as (i) staffed help desks; (ii) visible hotlines / helpline numbers, (iii) posters with messages against sexual harassment and other crimes; (iv) signages with clear instructions and help lines for those experiencing any harassment and other crimes in the station; and (v) tv monitors (as feasible), that constantly play (in Urdu, Pashto and/or Hindko) short campaign ads discouraging any form of harassment and promoting a respectful public space for all regardless of sex, age, ethnicity, and cultural affiliations. 1.1.3 At least 10% of shops/commercial spaces established by TransKarachi in the whole mezzanine of the staging facility, allocated to women entrepreneurs.

• ODBM consultants

• EPCM consultants



• Contractors/suppliers

Q1 2019–Q2 2020

1.2 Construct social and gender-inclusive approaches to each BRT station

1.2.1 Approaches to all BRT stations include (i) delineated bike lanes protected from encroaching 4 (or more) wheeled motorized vehicles; (ii) parking areas for bikes; (iii) shaded and well-lighted walkways for pedestrians, with provisions for

Q1 2019–Q2 2020

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Activities Targets and Indicators Responsibility Timeframe

pram/wheelchair accessibility; and (iv) evenly paved, unobstructed access roads with speed humps, traffic lights, pedestrian crossings, and clear signages.

1.3 Ensure that every unit in the BRT fleet meets international standards for safe and comfortable travel for all types of passengers, especially women and other vulnerable segments of the riding public.

1.3.1 Each bus has (i) a segregated seating and standing section for women, with spaces for prams; (ii) specially marked seats for persons with disabilities; (iii) signages (in local languages) with clear messages on strict enforcement of priority seating and segregated spaces for women, as well as information on bus routes, stops, and schedules; (iii) visible CCTV (as feasible); and (iv) posters promoting a respectful public transport system and discouraging all forms of harassment, including hotlines / helpline numbers for victims.

Q1 2020

Output 2: Effective project management and sustainable BRT operations established

2.1 Institute a gender mainstreaming approach in SMTA and TransKarachi

2.1.1 Gender specialist position is created and filled, with clear TOR on incorporating gender concerns in SMTA’s programs, policies, and operations. 2.1.2 An Equal Opportunity, Gender and Social specialist position is created and filled with clear TOR on incorporating social and gender-inclusive concerns in TransKarachi’s programs, policies and operations. 2.1.3 At least 1 women appointed in TransKarachi’s Boards of Directors. 2.1.4 At least 10% female staff in SMTA and TransKarachi. 2.1.5 At least 10% female service providers/ contractors/ third party employees recruited for operations and maintenance, such as fare collection, janitorial, and security services. 2.1.6 All staff trained on social and gender-inclusive codes of practice and behaviour, with refresher courses conducted every 3 years. 2.1.7 Social and gender inclusive policies and practices integrated into the business plans and operational procedures manuals of SMTA and TransKarachi, including strategies to increase recruitment of female staff.

• PMCCB consultants



Recruitment and Appointments: from Q1 2019 Trainings: Q2 2019 – throughout operations

2.2 Ensure social and gender inclusiveness of BRT operations.

2.2.1 Some feeder routes and schedules cater to the travel needs of women and other vulnerable passengers, as determined by quick surveys and study. 2.2.2 All staff with direct passenger interaction (e.g. station and ticket staff, drivers and conductors, and security guards) are trained on passenger management, incl. enforcing segregation of women’s sections, child protection, addressing needs of vulnerable passengers, and proper handling of threats to passenger security. 2.2.3 Studies and trials on the feasibility of special buses for women and vulnerable passengers conducted, with recommendations submitted to TransKarachi and SMTA. 2.2.4 At least one female conductor or security guard is available on each BRT station, and in all buses for off-corridor services, at all times to provide support to women passengers. 2.2.5 80% of the projected 320,000 daily riders are aware of passenger safety actions, based on the multimedia behaviour campaigns on passenger safety, especially for women and children

Q2 2019 - throughout operations

BRT = bus rapid transit, CCTV = closed-circuit television, EPCM = Engineering, Procurement, Construction, and Monitoring consultants, ODBM = Operations, Design, and Business Model consultants, PIU = project implementation unit, PMCCB = Project Management, Communication, and Capacity Building consultants, Q = quarter, SMTA = Sindh Mass Transit Authority, TOR = terms of reference. Source: Asian Development Bank estimates.

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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework

Impact the Project is Aligned with Quality of life in Karachi improved (Karachi Strategic Development Plan 2020)a

Results Chain Performance Indicators with Targets

and Baselines Data Sources and

Reporting Mechanisms Risks

Outcome Use of quality public transport in Karachi increased

By 2023: a. Modern BRT buses operate at a maximum 6-minute headway over a 100 km-long network (2018 baseline: 0)

b. 320,000 passengers use BRT daily, of which 15% are women in 2022 (first year of operation) and 20% in 2024 (2018 baseline: 0)

c. Average bus commercial speeds on the BRT corridor increased to 25.0 km/hour (2018 baseline: 12.2 km/hour)

d. The BRT system using CNG hybrid buses avoids at least 77,979 metric tons of GHG emissions (CO2, methane, nitrous oxide, and halocarbons) annually (2018 baseline: 0)

a–c. TransKarachi and VOCs’ BRT operations annual reports

d. SMTA statistics

Outputs 1. Red Line BRT corridor and associated facilities constructed

By 2021: 1a. BRT Red Line infrastructure, including 29 stations and dedicated lanes along the 24.2 km main corridor and 2.4-km common corridor section, completed as designed and ranked as Gold according to the BRT Standardb (2018 baseline: 0)

1b. 100% of BRT stations and buses score maximum points on the BRT Standard for universal accessibility, and include gender-inclusive physical and operational design featuresc (2018 baseline: 0)

1c. Mixed-traffic lanes, sidewalks, and streetlights improved; bicycle lanes built; green areas and parking added in various places along the 26.6 km Red Line corridor (2018 baseline: Many and various)d

1d. BRT and pedestrian mall built; utilities buried; and historical facades restored along a 1.4 km stretch of the common corridor section (2018 baseline: 0)

1e. Two depots, one underground staging facility with commercial areas (10% reserved for businesses led by women), and one expanded BRT control center building built (2018 baseline: 0)

1a-b. BRT Standardb

1c-f. TransKarachi quarterly project implementation progress reports

Unexpected deterioration of the security situation delays project implementation.

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Results Chain Performance Indicators with Targets

and Baselines Data Sources and

Reporting Mechanisms Risks

1f. At least 200 bus stops installed along 80 km of off-corridor BRT routes (2018 baseline: 0)

2. BRT operations established

By 2022: 2a. Modern CNG-hybrid BRT buses (mix of 9-, 12-, or 18-meter lengths) and feeder e-vehicles delivered (2018 baseline: 0)

2b. A distance-based fare collection system, BRT control center, bicycle-sharing system, and other ITSs installed and commissioned by TransKarachi to operate BRT services (2018 baseline: 0)

2c. One biogas production plant built and operated through a DBO contract, ensuring at least 80% of the required fuel supply for the fleet (2018 baseline: 0)e

2d. TransKarachi and the SMTA are fully staffed (with 15% female staff), with all staff trained following gender-inclusive organizational business plans and operational procedures (2018 baseline: 0)

2e. At least 80% of BRT riders surveyed indicate increased awareness of safe practices through multimedia behavior campaigns on the safety of all riders, including women, children, the elderly, and PWDs (2018 baseline: 0)

2a–c. TransKarachi quarterly project implementation progress reports

2d. SMTA and TransKarachi staffing plans and annual reports

2e. TransKarachi annual passenger survey reports

Change in leadership in the Government of Sindh delays the buildup of the SMTA and TransKarachi, failing to provide the critical mass necessary to implement the project.

Key Activities with Milestones 1. Red Line BRT corridor and associated facilities constructed 1.1 Prepare detailed engineering design and tender bid documents for the main corridor (Q2 2019) and

for the common corridor section, staging facility and BRT expanded control center (Q2 2020) 1.2 Complete land acquisition and obtain environmental clearances (Q4 2019) 1.3 Award civil works contracts for the main corridor (Q1 2020) and for the common corridor (Q4 2020) 1.4 Complete full restructuring of the Karachi BRT Red Line corridor (Q4 2021)

2. BRT operations established 2.1 Recruit staff and prepare the business models of the SMTA and TransKarachi (Q2 2019–Q1 2020) 2.2 Conduct a capacity building program for SMTA and TransKarachi staff (Q2 2020–Q2 2022) 2.3 Complete the BRT operations plan, BRT business plan, and BRT communication plan (Q4 2019) 2.4 Negotiate with existing private bus operators (Q2 2020–Q1 2022), and set up a compensation

mechanism and fleet scrapping program for excluded operators (Q2 2021) 2.5 Tender (Q4 2020) and award service contracts (Q3 2021) with VOCs to run BRT operations 2.6 Tender (Q1 2020), award contract(s) (Q4 2020), and deliver (Q4 2021) the BRT fleet and e-vehicles 2.7 Monitor the 3-year maintenance contract with the bus supplier(s) (Q4 2021–Q2 2024) 2.8 Tender (Q4 2019), award the System Control Goods and Services contract (Q3 2020), and install

ITSs (Q2 2021) as part of the BRT infrastructure 2.9 Tender (Q4 2019), award the DBO contract (Q2 2020), and deliver (Q4 2021) the biogas plant 2.10 Tender (Q4 2020) and award (Q4 2021) the Fund Manager service contract, and the Advertising and

Property Management service contract 2.11 Train bus drivers and test BRT operations (Q4 2021-Q1 2022) 2.12 Begin BRT operations (Q2 2022)

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2.13 Conduct awareness campaigns on traffic rules and BRT safety (Q3 2021– Q4 2022) 2.14 Conduct socioeconomic and user perception surveys, with sex-disaggregated data (Q2 2023) 2.15 Monitor post-project implementation GHG emissions’ level (Q2 2023)

Project Management Activities Conduct all primary and baseline data surveys (Q4 2019) Establish a project monitoring and evaluation system and a project performance management system that allow sex-disaggregated data collection, analysis, and reporting for project activities (Q4 2019)

Inputs Asian Development Bank: $235 million (regular OCR loan) Agence Française de Développement: $100 million (loan) Asian Infrastructure Investment Bank: $100 million (loan) Green Climate Fund: $37.2 million (loan), and $11.8 million (grant) Government of Sindh province: $88 million

Assumptions for Partner Financing Not applicable. BRT = bus rapid transit, CCTV = closed-circuit television, CNG = compressed natural gas, CO2 = carbon dioxide, DBO = design–build–operate, GHG = greenhouse gas, ITS = intelligent transport system, km = kilometer, LED = light-emitting diode, PWD = person with disability, Q = quarter, SMTA = Sindh Mass Transit Authority, VOC = vehicle operating company. a Government of Sindh. 2007. Karachi Strategic Development Plan 2020. Karachi. b Institute for Transportation and Development Policy. 2016. The BRT Standard. New York. The BRT Standard is an

evaluation tool for BRT corridors based on international best practices. It is also the centerpiece of a global effort by leaders in BRT design to establish a common definition of BRT and to ensure that BRT corridors more uniformly deliver world-class passenger experiences, significant economic benefits, and positive environmental impacts. The standard functions as a planning tool, scoring system, and means of achieving a common definition of BRT.

c Examples of gender-inclusive design features include (i) separate queuing spaces for men and women; (ii) marked priority seating in waiting areas for the elderly, pregnant women, and PWDs; (iii) separate restrooms for men and women; and (iv) well-lit and unobstructed floor design with visible and operational CCTVs to discourage any form of harassment. Specific gender-inclusive design features and operational safety features in stations and buses are provided in the Gender Action Plan (accessible from the list of linked documents in Appendix 2 of the report and recommendation of the President).

d The 2018 baseline for the main corridor: (i) deteriorated and encroached sidewalks; (ii) various number of mixed-traffic lanes, from three to six lanes per direction, encroached by illegally parked vehicles that limit capacity to two or three effective lanes per direction; and (iii) wide unused roadway median. Because of the retrofitting of the BRT infrastructure in the median and full remodeling of the corridor over its entire width, mixed-traffic lanes will be shifted to the sides and their number reduced, while keeping the same effective capacity by removing illegally parked vehicles and encroachments. Bicycle lanes will be added on both sides, sidewalks will be rebuilt and improved, green areas, on-street parking and small markets for displaced informal vendors will be added in various locations wherever space permits, and streetlights will be improved through the introduction of energy-efficient LED lighting.

e Any CNG quantity required to fuel the BRT fleet that could not be provided through the proposed biogas plant will be purchased by TransKarachi on the market, where it is in widespread use.

Source: Asian Development Bank.

38

B. Monitoring

58. Project performance monitoring. The quarterly progress report will include progress monitoring of the following indicators: physical progress of BRT corridor construction in km, bus stops built in number, status of staffing recruitment for TransKarachi (gender-disaggregated), business model developed for TransKarachi, capacity building activities conducted for TransKarachi and SMTA, BRT operations’ and communication’s plans development, and results of socio-economic and perception surveys (gender-disaggregated). 59. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the EA and IAs quarterly progress reports and after each ADB review mission. These quarterly reports will provide information necessary to update ADB's project performance reporting system.18

60. Compliance monitoring. Loan covenants—policy, legal, financial, economic, environmental, and others—will be monitored during review and mid-term review missions.

61. Safeguards monitoring. For monitoring of environment safeguards, ADB will ensure that:

(i) monitoring and supervision activities are carried out on an ongoing basis until a project completion report is issued;

(ii) project review missions visit project sites to ascertain the status of implementing the EMP with detailed review by ADB's safeguard specialists, and/or consultants

(iii) updated environmental impact assessment reports are timely reviewed and disclosed on the ADB website; and

(iv) semi-annual safeguard monitoring reports are timely reviewed to disclosed on the ADB website.

62. For monitoring social safeguards, the internal monitoring of RP and LRP implementation will be the responsibility of the TransKarachi through ADR and with the support of SRS under CSC. TransKarachi shall submit the RP internal monitoring reports to ADB on 6-monthly basis during RP and LRP implementation. The PPIU will engage the services of a firm/NGO or an individual expert, with approval of ADB, to undertake semi-annual external monitoring of RP implementation. An evaluation of outcomes of the RP will be carried out after completion of RP implementation to assess whether activities achieved their objectives. All resettlement monitoring reports will be disclosed to the public through the websites of SMTA, TransKarachi and ADB. The monitoring reports may cover RP and LRP implementation progress with implementation gaps, identified social issues (if any) and recommended corrective actions to ensure implementation of the project is fully in consonance with the loan covenants on social safeguards and ADB’s SPS requirements as outlined IR safeguards requirement-II. Specific monitoring benchmarks for LAR monitoring include (i) information campaign and consultation with affected persons; (ii) status of grievance/complaints recorded and grievances redressed during monitoring period; (iii) compensation for affected structures and other assets; (iv) relocation of APs; (v) payments for loss of income; and (vi) living standard and income restoration activities. 63. Gender and social dimensions monitoring. Progress towards the achievement of gender targets in the design and monitoring framework as well as those in the GAP will be monitored and reported regularly by the social and gender specialist in TransKarachi and included in semi-annual monitoring reports, with a distinct section that provides sex-disaggregated data

18 ADB's project performance reporting system is available at

http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool

http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool

39

demonstrating the extent of implementation of gender activities, and describing challenges met and actions taken to overcome them. The cost of implementing the GAP is included in the project’s Cost and Financing section. C. Evaluation

64. After the loan is declared effective, ADB will field an inception mission to discuss the PAM in detail, orient the PMU and PIU on its roles and responsibilities, discuss implementation arrangements, procurement processes, disbursement arrangements, audit, and reporting requirements for the project. 65. ADB will field review missions during the duration of project implementation to review the project progress and address issues, if needed, to ensure that the project is completed as planned.

66. A midterm review mission will be fielded by ADB between the first and second year of implementation to assess whether attainment of the project’s immediate objective (design and monitoring framework) is still likely to be achieved and if changes in project may be needed.

67. A project completion review mission will be fielded by ADB to prepare ADB’s project completion report. Within 6 months of physical completion of the project, TransKarachi will submit the government’s project completion report to ADB. 19 D. Reporting

68. TransKarachi will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

69. During project design, extensive dialogues and negotiations were held with potentially disposed persons and affected households in the project to address resettlement issues and resolve them amicably. In the preliminary design of BRT, adjustments have been made to minimize displacement and resettlement of people. Potentially disposed persons and stakeholders’ concerns and suggestions have been incorporated in the RP, EMP and GAP. Consultations were continued during fact-finding and will be continued and reported during project implementation.

19 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-

Sector-Landscape.rar

http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-%20%20Sector-Landscape.rar

http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-%20%20Sector-Landscape.rar

40

Project information and activities to be

communicated

Means of communication

Who will provide

information Target audience Frequency

Project information on advantages of the BRT system and encouraging the general public, especially women, to use the BRT, are disseminated.

Public information / awareness raising campaigns; various media (such as video on social media)

ADR and ADGCM of TransKarachi

General public During project design and implementation

Project team presentation of project preliminary design and impacts on stakeholders

Face to face dialogues

ADB TransKarachi

Project stakeholders (public, private entities, concerned government entities)

During project design

Consultations and negotiations to address resettlement issues

Dialogues with potentially displaced persons and project affected households

SMTA/ TransKarachi

General public During project conceptualization, design and implementation prior to start of civil works

Results of satisfaction survey on use of BRT Results of satisfaction survey for women on safety of BRT

Survey tools PPIU TransKarachi

General Public During first year of operation

EIA Report ADB website, SMTA/ TransKarachi website, public consultation and leaflets for affected persons

ADB SMTA/ TransKarachi

General public and project affected persons

EIA posted on ADB website on 30 May 2018. Monitoring reports are updated semi-annually. EMP will be prepared before civil works and implemented during construction period.

RP ADB website, SMTA/ TransKarachi websites, public consultation and leaflets for affected persons

ADB TransKarachi on behalf of SMTA

General public and project affected persons

RP posted on ADB website on XX Month 2018

Project RRP ADB website Posted no later than 14 days from ADB Board approval

General public

41

Project information and activities to be

communicated

Means of communication

Who will provide

information Target audience Frequency

Project legal agreements

ADB website Posted no later than 14 days from ADB Board approval

General public

Project Administration Manual

ADB website Posted no later than 14 days from ADB Board approval

General public

ADB = Asian Development Bank, BRT = bus rapid transit, EIA = Environmental Impact Assessment, EMP = environmental management plan, RP = resettlement plan, PIU = project implementation unit, PMU = project management unit, RRP = report and recommendation of the President, SMTA =Sindh Mass-Transit Authority.

X. ANTICORRUPTION POLICY

70. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.20 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency, implementing agency, and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.21

XI. ACCOUNTABILITY MECHANISM

71. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.22

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

72. All revisions and/or updates during the course of implementation will be retained in this section to provide a chronological history of changes to implemented arrangements recorded in the PAM, including revision to contract awards and disbursement s-curves.

20 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 21 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp 22 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf

http://www.adb.org/integrity/unit.asp

http://www.adb.org/Accountability-Mechanism/default.asp

42 Attachment 1

PROCUREMENT PLAN

Basic Data

Project Name: Karachi Bus Rapid Transit Red Line Project

Project Number: 47279-002 Approval Number:

Country: Pakistan Executing Agency: Sindh Mass Transit Authority (SMTA)

Project Procurement Classification: Category B Implementing Agency: TransKarachi

Project Procurement Risk: High

Project Financing Amount: US$ 572,000,000 ADB Financing: US$ 235,000,000 Cofinancing (ADB Administered): US$249,000,000 Non-ADB Financing: US$ 88,000,000

Project Closing Date: 31 December 2023

Date of First Procurement Plan: 30 May 2019 Date of this Procurement Plan: 30 May 2019

Procurement Plan Duration (in months): 18 Advance Contracting: Yes

eGP: No

A. Methods, Review and Procurement Plan Except as the Asian Development Bank (ADB) may otherwise agree, the following methods shall apply to procurement of goods, works, and consulting services.

Procurement of Goods and Works Method Comments

Open Competitive Bidding (OCB) for Goods Request For Quotation for Goods Open Competitive Bidding (OCB) for Works

Consulting Services Method Comments

Quality- and Cost-Based Selection for Consulting Firm Direct Contracting for Consulting Firm

Attachment 1 43

B. Lists of Active Procurement Packages (Contracts) The following table lists goods, works, and consulting services contracts for which the procurement activity is either ongoing or expected to commence within the procurement plan duration.

Package Number General Description Estimated

Value (in US$) Procurement

Method Review Bidding Procedure

Advertisement Date

(quarter/year) Comments

KBRT-CW-01

BRT Corridor and Buildings Construction:

202,359,000.00 OCB Prior 1S2E Q2 / 2019 Advertising: International No. Of Contracts: 3

Prequalification of Bidders: No

Lot 1: Lot–1: Reach 1: Numaish Churangi to Askari Park

22,431,500.00

Domestic Preference Applicable: No

Lot 2: Lot–2: Reach 2: Darul Uloom Ghosia Trust to Jamia Masjid Al-Raheem Trust, including depot 1

77,003,000.00

Advance Contracting: Yes

Lot 3: Lot–3: Reach 3: Shumail Complex to Malir Halt, including depot 2

102,924,500.00

Bidding Document: Large Works

KBRT-CW-02

Construction of (i) Common Corridor 2.4 km section, (ii) Off-Corridor Bus Stops and Improvements, (iii) Underground Staging Facility, and (iv) BRT Network Expanded Control Center

54,226,400.00

OCB Prior 1S2E Q2 / 2020 Advertising: International

No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: No Bidding Document: Large Works

KBRT-CW-03

Design, Supply, Install and O&M of “Waste-to-Fuel” Biogas Plant

10,200,000.00

ICB Prior 1S2E Q4 / 2019 Advertising: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: Yes Bidding Document: Others Comments: Draft DBO SBD will be used.

KBRT-CW-04

Renovation of historical monuments along the 2.4 km common corridor and beautification

4,000,000.00

NCB Prior 1S1E Q3 / 2020 Advertising: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: No Bidding Document:

44 Attachment 1

Small Works KBRT-Goods-BRT System Control-01

Procurement of BRT System Control Goods and Services including “Design, Installation, Testing, Commissioning, and Maintenance of Intelligent Transportation System (ITS), Fare System, Station Management, and Bicycle Sharing System Equipment (Hardware)

26,600,000.00

ICB Prior 1S2E Q1 / 2020 Advertising: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: No Bidding Document: Others Comments: Customized bidding documents for a supply-maintenance contract will be used. Only the goods component amounting to $26.6 million will be financed by ADB. Total contract value for goods and services is more than the estimated value indicated.

KBRT-Goods-Equipment-01

Vehicles, Office Equipment and Furniture under TransKarachi Operational Expenditures

570,000.00

RFQ Prior Q2 / 2019 No. Of Contracts: 10

Advance Contracting: Yes

KBRT-Goods-Feeder E-Vehicles-01

Procurement of Feeder E-Vehicles

3,800,000.00

OCB Prior 1S2E Q1 / 2020 Advertising: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: No Bidding Document: Small Works

KBRT-Goods-Fleet-01

Procurement of the rolling stock (BRT fleet)

60,250,000.00

ICB Prior 1S2E Q2 / 2020 Advertising: International No. Of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No Advance Contracting: No Bidding Document: Goods

Comments: Customized bidding documents for a supply-maintenance contract will be used.

Attachment 1 45

Consulting Services

Package Number

General Description

Estimated Value (in US$)

Selection Method Review Type of

Proposal

Advertisement Date

(quarter/year) Comments

KBRT-Cons-01

Project Management and Construction Supervision

12,000,000.00 QCBS Prior FTP

Q2 / 2019 Type: Firm

Assignment: International Quality-Cost Ratio: 90:10

Advance Contracting: Yes Comments: Highly technical nature of assignment.

KBRT-Cons-02

SMTA and TransKarachi Capacity Building

1,000,000.00 QCBS Prior FTP


Assignment: International Quality-Cost Ratio: 80:20 Advance Contracting: Yes

KBRT-Cons-03

Conceptual Design of Network Integration

1,000,000.00 DC Prior FTP


Assignment: International Advance Contracting: Yes Comments: Director, PFP1 endorsed the use of DC on the basis of continuity in technical approach and experience acquired by the ODBM consultants originally engaged under the PDA.

C. Indicative List of Packages (Contracts) Required Under the Project

The following table lists goods, works, and consulting services contracts for which procurement activity is expected to commence beyond the procurement plan duration and over the life of the project (i.e., those expected beyond the current procurement plan duration).

Goods and Works Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/Post)

Bidding Procedure

Comments

None

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method

Review (Prior/ Post)

Type of Proposal Comments

None

46 Attachment 2

TERMS OF REFERENCE

PROJECT MANAGEMENT AND CONSTRUCTION SUPERVISION CONSULTANTS (PMCSC)

1. The terms of reference of the consultants for engineering design, procurement and construction management (EPCM) under the project design advance loan indicate that Phase 2 of the assignment will include construction supervision of the civil works in the ensuing loan. To conduct the Phase 2 assignment, the use of the Single Source Selection (SSS) method may be considered to recruit the same consulting firm as the one selected for Phase 1, if the performance of such firm under Phase 1 has been assessed as satisfactory. Otherwise, quality and cost-based selection method will be used to recruit the supervision consultants. Details of the requested outputs and scope of work, deliverables and reporting requirements, indicative staffing, consultant positions, qualifications and key tasks, and contract administration and reporting for this Contract are provided in the following sections. 1.1 Project Objectives 2. With the aim of timely project completion, the Contractor is to carry out construction works in two (02) shifts with eight hours in each shift i.e. 1st Shift: 9:00 AM to 5:00 PM; and 2nd Shift: 7:00 PM to 4:00 AM. Accordingly, the Employer shall require adequate manpower for site supervision. The selected consulting firm shall provide trained manpower in adequate number to carry out supervision of the construction in compliance with quality requirements. 3. The Consultants will be responsible to serve as the Engineer within the context of the conditions of the construction contracts, and to provide day-to-day contract administration, construction supervision, and quality assurance. The consultant will be responsible for supervising all construction works. As the Engineer, the consultant will administer the construction contracts and ensure that the contractual clauses for both quality and quantity of work are observed and the works are constructed in accordance with the provisions of the construction contracts. The Consultants will be responsible for measurement and certification of the works completed, and for certifying and recommending payments to the contractors. The consultant will be required to nominate Chief Resident Engineer(s)/Resident Engineers for the contract that will be a full-time resident in the area or located in the proximity of project area. The Consultant will work in close coordination with PDA and Design Advance Consultants i.e. Project Management, Coordination and Capacity Building (PMCCB) and Operations Design and Business Model (ODBM); and TA Consultant Team mobilized by ADB for ADB’s fiduciary risk management and social and environment safeguards compliance. 4. As part of these services, the Consultants will assist TransKarachi in the efficient administration and implementation of the subprojects, support and strengthen it in its tasks, monitor progress, carry out quality control and recommend any actions to be taken to remedy any delays, and assist in reporting on the project activities as per ADB requirements. The Consultants have a specific responsibility to ensure that the works are executed in accordance with detail design developed by the EPCM/ODBM teams, and are constructed to the prescribed quality in accordance with the specifications, bidding documents, and quality assurance systems.

5. The Consultant will report to the PIU Project Director. The Consultant will work under the overall guidance, coordination and directions of the Project Director and his team.

Attachment 2 47

1.2 Scope of Consultant’s Services

1.2.1 Engineering Services 6. The objective of these services is to ensure that the Works are carried out in accordance with the Contract and that the highest possible construction quality is achieved within the budget allocated. This will be done through strict supervision of the Contractor’s activities to ensure that all work is carried out in full compliance with the engineering designs, technical specifications and other contract documents, as well as to effectively assist the Government to carry out its supervision responsibilities. 7. The Consultant will be responsible for assisting the Client with project management and the construction supervision of the Works contract, and specifically for the Project Manager to act as the “Engineer” as defined in the Works contract documents.

8. During construction supervision, the Engineer may delegate some of his authority to a site resident Deputy Project Manager, who will act as "the Engineers Representative”. The road works contract will be supervised by a team with the appropriate professional skills as mentioned in the job descriptions.

9. The scope of the consultant services will generally be as follows:

(i) Assist the PIU in all activities required of the Engineer and Engineer's Representative to the Contract (as defined in the Contract) and assist the Engineer to administer the execution of the construction contract in accordance with Conditions of Contract. Prepare certificates of payments as required by the Contract. Maintain full and complete records of progress payments;

(ii) Provide such information as is necessary for the Contractor to set out the works and check that the setting out is correct;

(iii) Review and approve the Contractor's work proposals, working drawing drawings etc. to the extent required by the Contract, advise modifications where necessary and approve these proposals;

(iv) Review and approve the Contractor's work program and, where necessary, request revisions of this to account for the current status of the works and ensure adherence to the construction schedule;

(v) Agree with the Contractor on systems of measurement for interim payment certificates and verify the quantities for such certificates;

(vi) Make recommendations to the Client on the Contractor's claims for additional payment, extension of time and other matters, based on the Consultant's interpretation of the Contract documents, the relevant site conditions and the Contractor's detailed submissions;

(vii) In the event of variations to the works being required, prepare necessary documents, negotiate these with the Contractor and submit these to Client for approval;

(viii) Through inspectors of works and other site staff as may be required, supervise the day-to-day operations of the Contractor to ensure quality of workmanship and compliance with the Contract, including day-to-day monitoring of environmental compliance;

(ix) Oversee and verify laboratory and field tests undertaken by the Contactor during the construction period;

(x) Maintain detailed daily diaries, photographs and documents concerning relevant events and activities, call and keep minutes of routine site meetings between the parties to the Contract;

48 Attachment 2

(xi) Review for accuracy the 'As- Built' drawings prepared by the Contractor for all the works and translate such documents into a format suitable for the Client’s asset management system;

(xii) Prepare progress reports for the Contract in a form acceptable to ADB and the Client. These reports will include, as a minimum, details of the physical and financial status of the Contract, details of delays and the budgetary effect of particular problems with suggested solutions;

(xiii) Carry out final inspections of the works and recommend the issue of completion certificate;

(xiv) Check the Contractor's final accounts and certify them correct for payment; (xv) Prepare completion reports in a form acceptable to ADB and the Client; (xvi) Advise the Client with respect to carrying out the works following any appeal

to arbitration or litigation related to the works; and (xvii) Provide any other specialized services as may be necessary and agreed upon.

10. For this purpose, the consultants will

(i) Deploy field engineering personnel of qualification and experience as described in the core team for resident supervision to monitor the output of all stages of construction and ensure that the works are executed in full compliance with the approved engineering design, drawings, agreed work schedule, technical specifications and with the terms & conditions of all the contract documents and sound engineering practices;

(ii) Administer the Contractor’s Contract make engineering decisions and ensure that all clauses of the contract agreement between the client and contractor are respected;

(iii) Advise the Client on all matters relating to the efficient and successful execution of works;

(iv) Act at all time so as to protect the interest of client and will take all reasonable steps to keep all expenses to a minimum consistent with economic and engineering practices;

(v) Evaluate and finalize contractor’s work program, method statement, material sources, working/shop drawings and bar bending schedule prepared by the Contractor, setting out of works etc. and accord approval thereof;

(vi) Set up a project control system for monitoring, reporting physical and financial progress of the project as well as the forecasts;

(vii) Inspect and evaluate the Contractor’s resources regarding construction machinery, manpower, office/site staff establishment and laboratory facilities on regular basis to ensure their compliance with respect to the approved Construction Schedule;

(viii) Be responsible for quality control & ensure that all works are executed as approved specifications and standards;

(ix) Keep client informed of the progress on site, any existing impediments sustained in progress of likely to appear in the foreseeable future which might arise and cause delay in implementation. In view of the foregoing, the Consultants will prepare and issue progress on monthly basis.

(x) Recommend corrective actions and measures that need to be taken to ensure progress leading to a timely completion of works;

(xi) Provide general guidance, furnish timely assistance to the Contractor in all matters relating to the execution of works and facilitate the Contractor by providing necessary details of minor design changes as and when required during Construction of the project;

Attachment 2 49

(xii) Check, inspect, advise, approve and report on architectural finishing of materials being used by the Contractor and give comments in writing to the Client on quality of works. The Consultants will order for testing of materials to ensure adherence to Specifications.

(xiii) Attend and make measurements and computation of quantities of the completed works or any work which is about to be covered, and maintain permanent records of all such measurements as a basis of progressive payments to the contractor and keep the measurement documents and records in a safe custody.

(xiv) Maintain daily records of checks & approval, correspondence and site diaries supported with digital photographs. Submit the record of daily inspection reports, all the tests made, to the Client on fortnight basis in an electronic form as well as in hard copy.

(xv) Ensure and certify that the works executed by the Contractor are as per approved design, drawings, standards, specifications & within the provisions of the Contract Agreement.

(xvi) Ensure and certify the running / interim certificates for progressive payments based on approved / tendered rates and final payments to the Contractor that the works executed by the contractor has been completed in all respects.

(xvii) Assure the receipt of all warranties of materials / installations accepted and incorporated in project, required under the terms & conditions of the Contract Agreement and handover the same to the Client upon completion of the project.

(xviii) Give notice to the Contractor of any defects and deficiencies, and if required, order suspension of the work(s) and ensure removal and substitution of the improper works and recommend any additional appropriate actions against the Contractor to the Client.

(xix) Assist Client in settling disputes (if any) with the contractor and make recommendations to client for resolving the contractor’s claims regarding time extensions and additional cost.

(xx) Jointly inspect with Client the completed works and assist informal taking over the project.

(xxi) Provide the client with complete records, reports and review “As built” drawings & plans prepared by the Contractor and provide a completion report testifying to the satisfactory completion of the works including the measurement of final quantities and certifications for final payments due to the Contractor.

(xxii) Inspect the completed works periodically during the defect liability period, prepare list of deficiencies (if any), design and plan remedial works and carry out their supervision and issue the defect liability certificates after the rectification of defects by the Contractor.

(xxiii) Be responsible for providing all necessary services required for the efficient, effective and timely execution of the Consultancy Services.

1.2.2 Social and Environmental Safeguards

11. In addition to the engineering services described above, the Consultant will also assist in (i) implementation of environment and social safeguards instruments i.e. EIA, RP etc. and support in identification of additional or unforeseen impacts during construction and prepare addendums to mitigate environment and social issues; (ii) provide training to the PPIU staff to build their capacity; and (iii) monitor compliance with environmental and social safeguards, as described below.

50 Attachment 2

a. Construction Site Management – EMP

12. The Consultant shall:

• Supervise and monitor construction of all project components and ensure implementation of environmental management plan (EMP);

• Use non-conformance documentation with sufficient details to record and inform the contractors of improvements needed to mitigation measures;

• Respond to Contractors proposals and prepare corrective action plans and ensure that contractors take corrective actions where necessary and report corrective actions regularly, at least monthly; and

• Facilitate the resolution of public complaints through grievance redress mechanism.

b. Social, Environmental, Community Participation, Gender Issues and Information Dissemination

13. The Consultant shall:

• Assist the PPIU in implementation of Resettlement Plan (RP) and Livelihood Restoration Plan (LRP);

• Identify additional or unforeseen impacts during construction of BRT main corridor, allied structures and additional facilities and develop addendums to the RP;

• Monitor compliance of Resettlement Plan or any other social development issue identified during detailed design phase in coordination with PPIU, NGO, and other stakeholders;

• Monitor compliance of environmental management plan as well as any other environmental issues in coordination with PIUs and other stakeholders;

• Monitor compliance with ADB Core Labor Standards by the main contractor(s), sub-contractors and service providers;

• Provide training to SPO, contractors and PPIU personnel for environmental management and monitoring during construction and operation;

• Provide training to PPIU staff, contractors, sub-contractors and service providers staff to comply with RP and Gender Action Plan and other social safeguard instruments;

• Assist in stakeholder participation, awareness generation, social inclusion, and implementation of gender action plan;

• Assist PPIU to implement the Stakeholders Awareness and Participation Plan (SAPP), in disseminating information on the Project to various stakeholders of the Project;

• Assist the PPIU in designing and implementing activities for meaningful consultation, people’s participation, awareness generation and public education with emphasis on social safeguards issues, broader social, gender and environmental issues, etc., as required for sustained awareness of stakeholders particularly affected peoples (APs) during construction period;

• Assist PPIU in registering and addressing stakeholders and APs complaints and grievances; and

• Prepare monthly, quarterly, and bi-annual progress reports on implementation of environment and social safeguards and gender instruments i.e. EIA, RP(s), LRP, GAP, etc. and submit to PPIU for review and further improvements.

14. PMCSC services will comprise the following teams for providing assistance to the PDA in the implementation and management of the Project:

(i) The Project Management Team including Contract & Financial Team and

Attachment 2 51

Technical Support Team will be located in Karachi Office. The team will provide support in overall coordination and management of the project including procurement, progress and performance monitoring and reporting, financial management, safeguards compliance and training the PMU and other government staff to ensure effective project implementation.

(ii) Design Coordination Team will be located in Karachi Office. This team will carry out design recognizance of the feasibility studies of the subprojects and detailed engineering design, drawings, bill of quantities, construction schedules and tender documents prepared by EPCM team. Design Coordination Team will finalize the detail design and BoQs through joint survey carried out with Contractor staff and make changes as per site conditions.

(iii) Construction Supervision Teams will be located in Karachi office. The teams will be responsible for supervising the construction works, progress reporting, and quality assurance.

1.3 Staffing Requirement for Phase 2 15. The project implementation period of the consultant services is 18 months (Q1 2019 to Q2 2020). A total of 1,935 person months including 57 person-months of the International Key Experts; 147 person-months for the National Key Experts; and 1,731 person-months for Non-Key experts would be required. The estimated staffing and person-month requirements for the key experts are summarized in Table 1 below. 16. Similarly, the Technical/Support Staff requirements (non-key experts) are described in Table 2. The Consulting firms will propose the actual time allocation and the potential addition of team members. The actual time allocation will depend on the particular methodology and approach being proposed. The required qualifications and main tasks for each expert are provided in Tables 3 and 4.

Table 1: Summary of Key Staff (International / National)

List of Key Experts Person- Month

S.No Key Experts

A. International

1 Team Leader 9

2 Design Manager Roads 4

3 Design Manager Structures 4

4 Environmental Specialist 4

5 Financial and Accounting Specialist 6

6 Contract & Claim Expert 6

7 Drainage Engineer 6

8 Site Supervision Engineer 1 6



Total 57

B. National

1 Resident Engineer 1 (Roads) 9



4 Resident Engineer 1 (Buildings) 9



7 Chief Design Coordinator/Structures Engineer 6

52 Attachment 2

List of Key Experts Person- Month

8 Chief Contract Engineer 9

9 Financial and Accounting Specialist 1 9

10 Financial and Accounting Specialist 2 9

11 Contract and Claim Engineer 1 9

12 Contract and Claim Engineer 2 9

13 Resettlement Specialist 1 12

14 Resettlement Specialist 2 6

15 Environmental Specialist 1 6

16 Environmental Specialist 2 6

17 M&E Specialist 1 6

18 M&E Specialist 2 6

Total 147

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Table 2: Summary of Technical / Support Staff (Non-Key Staff)

S.No Positions (Non-Key Staff) No of

Position(s) Person Month

Total Person Months

i Construction Supervision Team

a. Reach I-BRT Road

1 Highway Engineer 2 9 18

2 QC Engineer 2 9 18

3 Material Engineer 2 9 18

4 Assistant Resident Engineer 4 9 36

5 Quantity Surveyor 2 9 18

b. Reach II-BRT Road






c. Reach III-BRT Road






d. Reach I – BRT Buildings



e. Reach II – BRT Buildings



f. Reach III – BRT Buildings



ii. Design Coordination

1 Design Engineers 4 6 24

2 AutoCAD Operator 8 9 72

iii. Contract & Financial Management Team

1 Disbursement Officer 4 9 36

iv. Technical Support Team

1 HSE Engineer 3 6 18

2 Road Safety Engineer 3 6 18

3 Drainage Engineer 3 9 27

4 Traffic Planning Engineer 3 9 27

5 Electrical Engineers 2 9 18

6 Social Development Specialist 3 9 27

7 Gender Specialist 2 4 8

8 Sr. Surveyor 3 6 18

9 Assistant Surveyor 6 6 36

10 Geo tech Engineer (Piling Supervision) 4 4 16

11 Support Engineers/Jr Professionals 15 9 135

12 Material Testing/QC Technicians/Site Inspector etc. 91 9 819

Total 1,731

54 Attachment 2

Table 3: Key Positions (International & National) Qualifications, Experience and Key Tasks

Position Qualifications and

Experience Key Tasks

International

Team Leader International 9 person-months

Qualified civil engineer (internationally recognized professional qualification) Preferably 20 years of professional experience with 15 years working in road and bridge construction, including specific experience in BRT project(s) The candidate must have demonstrated ability to lead teams composed of international and national consultants and create a strong working relationship with the Client. Excellent communication (written and oral) skills and strong inter-personal skills will be considered an asset.

The Team Leader will: (i) provide overall responsibility for technical support during implementation, including preparation and implementation of work plans; (ii) coordinate financial management; (iii) monitor progress against project implementation schedule and coordinate preparation and submission of periodic progress reports and technical reports; (iv) work closely with PIU and advise the Project Director; (v) maintain good coordination among ADB, PIU and others stakeholders and assure links with key institutions as SMTA, TransKarachi, and Local Authorities; (vi) Provide guidance to Team to ensure that the quality of works meet a required standard; (vii) monitor work of the Civil Works Contractors; (viii) assist PIU in contracts management; (ix) monitor financial performance of the Project; and (x) monitor the environment, health and safety, quality assurance & control, resettlement and social safeguards aspects to bring minimum delays to the project work.

Design Manager Roads International 4 person-months

Master’s degree in Civil Engineering (internationally recognized professional qualification) Preferably 15 years of professional experience with 10 years working in design of roads and associated structure’s construction, including specific experience in BRT project(s). Demonstrated ability to work in a multidisciplinary team and excellent communication skills in spoken and written English.

The international consultant will be responsible for design coordination during the construction supervision of civil works. The Expert will be responsible for production of the revised corresponding sections of the specifications and technical sections of the contract documents. The Expert will provide on the job direction and knowledge transfer to the local engineer.

Design Manager Structures International 4 person-months

Master’s degree in Civil Engineering (internationally recognized professional qualification) Preferably 15 years of professional experience with 10 years working in design of building structures and bridge construction, including specific experience in BRT

The Expert will be responsible for design coordination during the construction supervision of civil works. The Expert will be responsible for production of the revised corresponding sections of the specifications and technical sections of the contract documents. The Expert will provide on the job direction and

Attachment 2 55



project(s). Demonstrated ability to work in a multidisciplinary team and excellent communication skills in spoken and written English.

knowledge transfer to the local engineer.

Environmental Specialist International 4 person-months

Master’s degree environmental management or related field (internationally recognized professional qualification) Preferably 10 years of experience in environmental management, monitoring, and/or impact assessment; familiarity with ADB environmental safeguards requirements and national environmental management procedures;

The Expert will be responsible for monitoring the implementation of environmental management plan throughout the whole project implementation stage. The Expert will undertake remedial action in close consultation with respective EPA and ADB to handle unexpected environmental impacts. The Expert will submit the monitoring report on EMP to the relevant agencies and ADB.

Financial and Accounting Specialist International 6 person-months

Qualified chartered/cost management accountant or M.B.A. (finance) with preferably 10 years of relevant work experience including experience working with international consultants preferably in donor funded projects and government institutes. Experience in financial management and accounting of preferably on one ADB-financed project

The Expert will provide TransKarachi advice on establishing financial management system and train relevant staff in preparing withdrawal applications to ADB, and management of impress account, in accordance with ADB disbursement guidelines. The expert will develop procedures for financial disbursement, accounting, and reporting for the subprojects in accordance with procedural requirements of the Government and ADB; Assist TransKarachi in processing ADB loan withdrawal including certificates and reporting formats for efficient flow of funds between ADB, Government, and contractors.

Contract & Claim Expert International 6 person-months

Master’s degree in business administration, engineering or other related fields (internationally recognized professional qualification) Preferably 10 years’ experience in procurement of works and goods, preparation of tender and contract documents, evaluation of bids, and contracts managements of projects at least one ADB financed project. The specialist should have demonstrated experience with developing and managing FIDIC contracts for large works

The Expert will: - assist PIU in negotiations and finalizing contract agreements for works, goods - develop, and organize contract management capacity building and training covering FIDIC, and ADB procurement guidelines and procedures for the project implementation staff of the EA and PIU; - advise Team Leader/team on the progress reporting, quality control and inspection systems to be followed during execution of civil work contracts; and - advise PIU in evaluating/resolving contractor’s claims and contractual disputes.

56 Attachment 2



Drainage Engineer International 6 person-months

Master’s degree in Civil Engineering (internationally recognized professional qualification) Preferably 15 years of professional experience with 10 years working in roads, drainage, construction inspection, track, traffic signal, and/or lighting experience is expected The specialist should have demonstrated ability to work in a multidisciplinary team and excellent communication skills in spoken and written English.

The expert will be responsible for developing storm water management plan, quantity calculations, geometric design, pavement marking/signing, drainage design, traffic studies, traffic signal design, revising specifications, cost estimates, roadway lighting, and other related tasks.

Site Supervision Engineers (3 positions) International 18 person-months (6 person-months each)

Master’s degree in Civil Engineering (internationally recognized professional qualification) Preferably 10 years of relevant experience in road and bridge construction design and construction supervision (specific experience in BRT project(s) is desirable)

The Experts will: - supervise construction of the work and to test or order to test and examine any materials to be used or workmanship employed in connection with the works. - provide overall guidance and advice to construction supervision/contract administration team. - assist Team Leader in the compilation of a Project Progress Reporting providing details of Project implementation, problems encountered, and solutions adopted, and detailing and explaining any variation in Project costs and implementation schedules from the original estimates.

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National

Chief Design Coordinator/ Structure Engineer National 6 person-months

Master’s degree qualification in a relevant discipline (nationally recognized professional qualification) Preferably 15 years of professional experience with 10 years in design of roads/ bridges and buildings including specific experience in BRT Projects.

Responsible for design coordination during construction as head of team of design coordination. Under the supervision of Lead Design Coordinator, the Expert will be responsible for production of the revised corresponding sections of the specifications and technical sections of the contract documents.

Chief Contract Engineer National 9 person-months

Master’s degree qualification in a relevant discipline (nationally recognized professional qualification) Preferably 10 years working in similar assignments/positions. Knowledge of ADB or other IFI, and GoP’s requirements and procedures is desirable.

- Proactive risk/claim assessment and management for site construction contracts. - Provide proactively recommendations & advice on how to avoid any additional cost and where not possible how to minimize the costs of legitimate claims. - Ensuring the successful execution of site construction contracts according to agreed commercial obligations, financial and qualitative targets. - Assure that site portions of all contracts are followed & fulfilled to the benefit of the Client.

Financial and Accounting Specialists (2 positions) National 18 person-months (9 person-months each)

Master’s degree in Finance / Accounting Preferably 7 years of relevant work experience including experience working with international consultants’ preferably in donor funded projects and government institutes. He /she will have experience in financial management and accounting of preferably on one ADB financed project.

The Expert will be responsible for: - preparing monthly financial statements and project accounts; pre-audit and verification of all contractor/supplier bills prior to payment; - preparation of monthly project accounts and financial reports; - preparation of monthly internal auditing reports for ADB and the borrower;

- providing requisite financial input for the quarterly progress reports; - assisting the IA in preparation of complete and correct withdrawal applications and ensuring prompt submission to ADB; and - preparation of annual financial statements and accounts within one month of closing of the Government’s fiscal year and coordinating the external audit activity.

58 Attachment 2



Contract and Claim Engineers (2 positions) National 18 person-months (9 person-months each)

Master’s degree in Engineering or MBA in Finance / Accounting Preferably 7 years of relevant work experience including experience working with international consultants’ preferably in donor funded projects and government institutes. He /she will have experience in Contracts management of preferably on one ADB financed project.

The Expert will: - render necessary advice and help to the Team Leader/team in contract administration and procurement issues/assignments; - assist PMU in negotiations and finalizing contract agreements for works, goods and services; - develop, and organize contract management capacity building and training covering FIDIC, and ADB procurement guidelines and procedures for the project implementation staff of the PIU; - advise Team Leader/team on the progress reporting, quality control and inspection systems to be followed during execution of civil work contracts; - advice PIU in resolving contractual issues; - assists the Team Leader/team in reviewing and determining Contractors claims; and - assists in keeping the Employer informed of contractual issues both by direct contacts and through discussions or correspondence.

Resettlement Specialist (2 positions) National 18 person-months (12 and 6 person-months)

Master’s degree in a related discipline. Preferably 7 years’ experience working in similar assignments/positions. Knowledge of ADB or other IFI, and GoP’s requirements and procedures is desirable.

During the construction stage, he/she will supervise and monitor RP implementation, assist in identification of additional and unforeseen impacts during construction and prepare addendums to the RP, provide training to PPIU staff, assist in implementation of LRP and will prepare monthly, quarterly implementation progress and monitoring reports

Environmental Specialists (2 positions) National 12 person-months (6 person-months each)

Master’s degree in a related discipline. Preferably 7 years’ experience working in similar assignments/ positions Knowledge of ADB or other IFI, and GoP’s requirements and procedures is desirable.

During the construction stage, the specialist will review all monitoring reports of national consultants and advises on corrective actions, and monitors the environmental performance of the implementing agency (IA).

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M&E Specialist (2 positions) National 12 person-months (6 person-months each)

Master’s degree in a related discipline Preferably 10 years’ experience in designing system, carrying out monitoring and evaluation and preparing reports

The Expert will be responsible for: - developing and implementing project specific monitoring and evaluation systems including project performance monitoring system, including safeguards; - periodic information dissemination on website related to the project; - collating all the information and submit it on approved format to the PIU; - generate monthly and quarterly reports; and - update PPMS.

Resident Engineer(s) Roads and Buildings (6 Positions) National 54 person-months (9 person-months each)

Qualified civil engineers preferably BSc in Civil Engineering Preferably 10 years’ experience as a resident engineer in construction supervision of roads, bridges and building infrastructure projects in Pakistan whereas experience in Karachi would be preferable.

The Experts will supervise the work of assistant resident engineers and rest of construction supervision teams and will manage the construction milestones and quality control of works. They will provide assistance to the Team Leader in overall management, monitoring and reporting and will be responsible for day-to-day management of works.

Table 4: Non-Key Positions – Qualifications and Experience Requirements

S.No Positions (Non-Key Staff) Qualification Requirements Experience

Requirements

1 Highway Engineers BSc in Civil Engineering or Diploma in Civil 5 years

2 QC Engineers BSc in Civil Engineering or Diploma in Civil 5 years

3 Material Engineers BSc in Civil Engineering or Diploma in Civil 5 years

4 Assistant Resident Engineers BSc in Civil Engineering or Diploma in Civil 5 years

5 Quantity Surveyors Diploma in Civil 3-5 years

6 Disbursement Officers MBA/BSc in Finance and Accounts 3-5 years

7 HSE Engineers Qualified Engineer-BSc Engineering 3-5 years

8 Road Safety Engineers Qualified Engineer-BSc Engineering 5 years

9 Drainage Engineers BSc in Civil Engineering or Diploma in Civil 5 years

10 Traffic Planning Engineers BSc in Civil Engineering or Diploma in Civil 5 years

11 Electrical Engineers Qualified Engineer-BSc in Electrical Engineering

5 years

12 Social Development Specialists BSc in relevant discipline 3-5 years

13 Gender Specialists BSc in relevant discipline 3-5 years

14 Sr. Surveyors Diploma in Civil 7 years

15 Assistant Surveyors Diploma in Civil 3-5 years

16 Geo tech Engineer (Piling Supervision) BSc in Civil Engineering or Diploma in Civil 3-5 years

17 Support Engineers/Jr. Professionals BSc in Civil Engineering or Diploma in Civil 1-2 years Notes:

• The staffing requirements actually deployed by the consultants will be adjusted according to the shifts organized by the contract for timely completion of the BRT Project.

• The consultants would ensure comprehensive design coordination during the Project execution. This aspect is important specially under the situation that the conceptual designs which was a pre-requisite for detailed designs and also due to the fact that Detailed Designs have been carried out under a very condensed time scheduled by the EPCM Consultants.

60 Attachment 2

1.3.1 Reporting Requirement 17. The consultants will submit the following reports to the TransKarachi and ADB:

(i) An Inception Report, which covers at least initial findings and the work program including staffing plan and schedule for approval by the TransKarachi and ADB, 2 weeks after commencement of services;

(ii) Monthly progress report (the contents include at least briefing details of the works carried out during the previous month, the problems encountered or anticipated, together with the steps taken or recommendations for their correction, and financial and physical progress to date) within 10 days after each month subsequently;

(iii) Quarterly progress report (at least including detailed description of the achieved progress of works, difficulties and delays encountered or anticipated, contract awards and disbursement status, payments to the consultants and contractors, and remedial actions taken or suggested, the overall progress) within 14 days after each quarter subsequently;

(iv) A project completion report (covering at least detailed description of all the work by items of technical and non-technical matters, As-Built drawings, economic analysis, financial and disbursement data, analyses, difficulties and delays encountered and reasons, and remedial actions taken, the overall progress of the Project, including recommendations to TransKarachi and ADB) one month after the contract of consulting services completed; and

(v) All reports shall be submitted in Hard Copies and Soft Copies (Editable MS Office and PDF format) as well.

S.No Reports Submission Type Timelines Remarks

1 Inception Report First Draft (3 Copies +CD)

2 weeks Client will approve or comment within 7 days

of receipt of report

Final Report (3 Copies +CD)

within 7 days after receiving comments from

the Client

Approval or comments within 3 days

2 Monthly Progress Reports

(3 Copies + CD) each month within 10 days

3 Quarterly Progress Report

(3 Copies +CD) each quarter within 14 days

Client will approve or comment within 7 days

of receipt of report

4 Completion Report (3 copies each + CDs for each

Package)

within 1 month of Completion of Services

18. Reports shall be submitted to the Project Director. 1.4 Client’s input and counterpart personnel 19. Services, facilities and property to be made available to the Consultant by the Client:

(i) Fully operational Project Implementation Unit with dedicated staff shall be available for all inputs related to the Project (KBRTP);

(ii) All available project reports and data from the Design Advance Consultants and PPTA Consultants; and

(iii) Liaison and coordination at site with field formation for facilitation in supervision of works.