83024 BRIDGES IMPROVEMENT AND MAINTENANCE PROGRAM (BIMP) Third Implementation Review September 23-October 02, 2013 AIDE-MEMOIRE I. Introduction and Acknowledgments 1. A World Bank team1 (see Annex 1a), in partnership with staff from the Department of Roads (DOR), undertook an implementation review of the Bridges Improvement and Maintenance Program (BIMP) from September 23-October 02, 2013. The objective of the review was to: (i) assess progress against Action Plan items; (ii) review the status of Program activities that will trigger Disbursement Linked Indicators (DLIs); (iii) identify next steps for addressing challenges that may impact on the Program’s ability to achieve envisaged results. The Team visited several bridge sites to briefly assess their quality and to ascertain potential field implementation issues. 2. The Team is grateful for GON’s hospitality during this implementation review. However, the Team wished that the level of cooperation from the Department of Roads Bridge Project (BP) could have been like earlier implementation reviews. This has mirrored an overall trend of declining Program performance after the last review (May, 2013). The Bank task team remains committed to making this operation a success and stands ready to assist the Government in addressing impediments to effective implementation. 3. This Aide-memoire summarizes key findings along with an updated set of specific ‘next steps’ to position the Program on a positive trajectory. The content of this document reflects decisions agreed during wrap-up discussions with the Ministry of Physical Infrastructure and Transport (MoPIT) on October 02, 2013. As per the World Bank’s Access to Information Policy and the decision of t he wrap-up meeting, this Aide-memoire will be classified as a public document. II. Key Project Data 4. The following table provides the summary project data and the performance ratings: Project Data Project Performance Ratings Board Approval: 28-Jun-2012 Summary Ratings Last Now Effectiveness Date: 20-Dec-2012 Achievement of PDO MS MU ▼ Original Closing Date: 15-Jul-2017 Implementation Progress MS MU ▼ Original Ln./Cr. Amount: US$60.0m Action Plan MS MU ▼ Amount Disbursed: US$14.44m2 Disbursement Linked Indicators MS MS ◄► Technical MS MU ▼ Fiduciary MS MU ▼ Social and Environmental MS MU ▼ Counterpart Funding MS MU ▼ Notes: S- Satisfactory; MS – Moderately Satisfactory; MU - Moderately unsatisfactory; U – unsatisfactory; ▲ Improving trends; ▼ Deteriorating trends; ◄► Static. 5. The Program has achieved limited progress against next steps agreed in the last Program review. Noteworthy achievements include: (i) encouraging results from year 1 major maintenance works; (ii) progress in obtaining designs for major maintenance works; and (iii) delivery of Bridge Management System (BMS) orientation/training sessions to DOR divisions. However, the Program has fallen considerably behind in almost every key area. Many of the Program Action Plan activities remain incomplete (see Annex 3). It is to be noted that implementing the Program Action Plan is a covenant of the Program Financing Agreement (FA). 6. DOR is yet to engage Program Support Consultants and Capacity Building Consultants, although the Program became effective approximately 10 months ago. The Program DLIs and planned 1 Hereinafter referred as “the Team” 2 SDR 9,675,000.00 as of June 30, 2013 1 expenditures are designed for a volume of capital works that will require additional support. Continued delays therefore decrease the likelihood that DOR will achieve the Program DLIs on time. 7. Lastly, there has been a trend of decreasing cooperation between the Bridge Program and other major stakeholders including other units/divisions of DOR. Most notably, the collaboration between the BP and DOR’s Geo-Environmental and Social Unit (GESU) has not been optimal. This partnership is crucial in implementing the Environmental and Social Management Framework. The Team would like to reiterate that bridgeworks taken up under the Program will only be eligible for disbursement if their implementation complies with the ESMF. III. Achievement of Development Objectives Status 8. The Bank has secured funding from a trust fund source to carry out baseline data collection for the project impact study which will gauge progress against development objectives. Preparations are now underway to arrange for baseline data collection. However, the Program’s ability to facilitate this study depends on reasonably accurate and prioritized planning for bridgeworks. The agenda of new bridge construction that the BP has developed during year 1 does not follow BMS priorities (see below). This potentially leads to two deficiencies: (i) estimated impacts of new bridges could be atypically low as the locations chosen for new construction may not reflect economic priorities. Taking up lower priority bridges will likely cause an underestimation for the benefits that properly prioritized bridgeworks can provide; and (ii) the study’s ability to plan/select sites for data collection may suffer. Without the logic that BMS prioritization ensures, it will be difficult for the impact study to plan survey works in the right communities at the right time. IV. Current Implementation Status Action Plan Implementation 9. This section highlights the main concerns or necessary actions under each heading of the Program Action Plan. Annex 4 and Annex 6 provide assessment details and the agreed actions that will help in the achievement of Action Plan targets respectively. A. Technical Actions  DOR’s FY2013/14 SRN new construction program does not follow BMS priorities: Many of the FY2013/14 bridges being taken up for new construction do not appear in BMS priorities. Errors in BMS data have been cited as the reason for not following BMS priorities. However, the Team notes that BMS remains substantially functional despite gaps/other errors in bridge data. These gaps/errors do not impede the system’s overall usability. Moreover, the BP could also use excel-based prioritized lists of bridges (based on BMS data) to develop prioritized annual programs. The Bank task team has offered assistance to DOR on numerous occasions since Program inception to support the use of BMS. The Team expressed concerns at the approach taken to develop the FY2013/14 program of new bridges.  There has been continuous delay in engaging the Project Support Consultants whose support is necessary for Program implementation: Terms of reference for the Project Support Consultants (PSCs) have been finalized more than 10 months ago. The Team appreciates that the FY2012/13 budget impasse may have impacted on the initial months of Program implementation. However, even after the resolution of the budget impasse there was not any sense of urgency from DOR/BP to engage the PSCs. Support from these consultants is vital in the achievement of DLI targets and the Program has been designed keeping their support in mind.  Revised estimates for FY2012/13 expenditures show that DOR underspent on bridge design, feasibility study, and construction supervision: The Financing Agreement requires GON to allocate a minimum of 5% of the Program’s physical works expenditures for the purpose of bridge design, feasibility study, and construction supervision. This level of expenditure is particularly important to ensure design and construction qualities of bridge-works. FY2012/13 expenditures show that DOR spent only 3.9% on these functions. One of the reasons for this somewhat low expenditure is the non-engagement of PSCs. For FY2013/14, the Ministry of 2 Finance (MoF) has budgeted more than 5% of civil works expenditures for these activities. While this is welcome, the Team requests DOR to ensure that the amount is actually spent for its intended purpose.  Under budgeting relative to envisaged expenditure envelope: The Team has estimated that the FY2013/14 budgeted amount linked to potential expenditures for all SRN bridge Program activities is over a fifth (21%) lower than what would require to achieve the DLI targets. This will not help the Program in achieving its intended results. Furthermore, budgeted maintenance expenditures are roughly 42% lower than the level required for achieving the DLIs that relates to maintenance. The Team would like to call MoF/MoPIT’s attention in this regard. It is to be noted that 50% of IDA’s credit is tied to the major maintenance related DLI. B. Fiduciary Actions  Two trimester reports remain outstanding. DOR has missed target dates for BIMP’s last two consecutive trimester reports. DOR and the Bank task team have already agreed a report outline. The task team has sent a number of reminders to DOR/BP in this regard. Further delays in the submission of the reports may result in unilateral actions from IDA including the suspension of the Program.  Budget priority for Program items and position of IDA funding in the budget framework: The Team noted with concerns that budget head 337158 (Strategic Road's Bridges and Culverts Conservation) and 337159 (Feasibility Study of Strategic Road's Bridges) are classified as priority 2 in the FY2013/14 budget. These line items support critical Program activities. The Team requests MoF to re-classify them as priority 1 expenditures. The Team has also noted that the FY2013/14 budget is showing NPR 1 billion of IDA funding under heading 337157 (Local Road's Bridge Construction). This is possibly a mistake and it needs to be corrected at the earliest possible opportunity.  Low counterpart funding: BIMP’s DLI targets reflect and indicative GON contribution of approximately NPR 1.4 billion per year (beyond IDA’s contribution) over five years. The FY2013/14 budget is showing revised estimates for Program expenditures of approximately NPR 1.75 billion in FY12/13. In May of 2013 GON drew SDR 9.675m (NPR 1.26 billion) against the advance available under the BIMP Financing Agreement. This implies that GON’s net Program contribution in FY2012/13 was only about NPR 490 million (USD 5.1 million). This does not necessarily represent an immediate issue of GON’s underinvestment. However, it does suggest that GON’s contribution toward the project will need to be higher in later years, which may have impact on other MoPIT projects/programs. The Team expressed its willingness to support DOR/BP with further improvements to the Program’s draft five year investment. It will help to assess the level of contribution that GON will need to make in future years.  Concern regarding budget heading 337157 (Local Road's Bridge Construction): The FY2013/14 budget shows a budget allocation of NPR 1.7 billion (USD 17.6 million) for the construction of bridges on the Local Roads Network (LRN). The Team is concerned about this as this level of budgeted expenditure suggests that DOR might be continuing to take up new LRN bridges rather than winding down existing construction and transferring these bridges to the Department for Local Infrastructure Development and Agricultural Roads (DoLIDAR), which was agreed during the preparation of BIMP.  DOR’s audit committee appears to be functioning and making moderate progress at clearing past audit objections. As of September 2013, DOR has cleared 36% of FY2009/10 and 34 % of FY2010/11 audit objections. The Team is particularly pleased to note that the BIMP orientation workshops in Dhangadhi and Nepalgunj (September 2013) included instructions to division-level personnel on preventing /clearing audit objections. C. Environmental and Social Actions  Need to ‘jumpstart’ implementation of GESU’s business plan: The Team is pleased to note that GESU has prepared a draft business plan, which is now awaiting approval of Director General, 3 DOR. This plan envisages support from consultants those who will assist GESU in carrying out its responsibilities. However, GESU has struggled in consultants’ procurement due a scarcity of qualified candidates. The candidates who have submitted application could not clear an original set of qualification criteria. The procurement process has now restarted. It is expected that consultants will be onboard before the end of 2013.  Resourcing GESU: The Team is also pleased to note that the BP had allocated NPR 4 million to GESU in FY12/13. Unfortunately, delays in procuring additional consultants meant that GESU could only spend a small portion of the allocation (NPR 63,000). GESU’s FY2013/14 resource requirement is roughly NPR 10.7 million. However, actions are yet to be taken to authorize GESU that will allow it to make the expenditures. This has severely limited GESU’s ability to plan, resource, and execute its work program. The Team requests DG, DOR, to take immediate action to ensure that financial resources for FY2013/14 and all future years be signed over to the GESU Chief as soon as the BP receives its budget allocation from MoPIT/DOR.  Interface issues between GESU and the Bridge Project: During FY2012/13, the BP took two calendar months to provide a list of Program bridges to GESU following their request. Such a delay prevented GESU from working efficiently. The Team recommends that the BP and GESU begin to hold regular meetings (preferably monthly) from October 2013 onward for better coordination. The Team request DOR’s Director General to issue instruction in this regard.  Developing template for environmental and social assessments and initial environmental examinations: GESU has room to improve with respect to operational efficiencies when conducting standard bridgeworks assessments. As an initial first step, GESU will endeavor to reduce time for producing environmental or social reports (such as IEE/EIA) by developing standard user-friendly templates for TORs, report documents, clearances etc. The Team welcomes these initiatives and is willing to support GESU to achieve its efficiency objectives.  Institutionalizing GESU’s role and ensuring application of the ESMF: DOR has officially authorized GESU to oversee and manage the Program’s social and environmental aspects. However, the institutional mechanisms for ensuring this actually happens need to be made operational. Specifically, GESU should have a formal role in reviewing and clearing designs, procurement documents, and contract documents. Similarly GESU needs to have a formal role in monitoring contract compliance and clearing Defect Liability Certificates in any bridge contract before contract closure. In order to ensure efficiency, GESU will develop checklists for each clearance as per ESMF requirements. The Team requests that DG, DOR, issue guidance regarding how to operationalize GESU’s role before the end of 2013.  Ensuring that design and build contracts account for ESMF provisions: BP and GESU have agreed to review the existing procurement document for Design and Build style contracts. There is a need to ensure that these forms of contract have adequate mechanisms to ensure that DOR can enforce the provisions of the ESMF via design-build contractors. D. Disbursement Linked Indicators 10. Annex 5 contains a detailed table with updates on the Program’s Disbursement Linked Indicators. The Team has identified the following key issues relating to DLI achievement:  The Program appears relatively on track to meet first year DLI targets: This reflects the fact that initial targets were designed around completion of DOR’s existing backlog of bridgeworks. However, the Program’s ability to achieve DLI targets in subsequent years is in doubt. Most notably, slippages in planned major maintenance activities will delay outputs against DLI-1 (major maintenance) which accounts for 50% of IDA’s support to BIMP . Baring immediate action to correct this trajectory, it is likely that the Program will struggle to achieve DLIs from year 2 onwards.  BP/DOR still has not finalized dossiers for all bridges that will go for DLI verification in the present year: BP has developed checklists for screening bridges prior to DLI verification. This information (together with technical data) will form part of a bridge-specific dossier that will 4 guide verification efforts. The BP has missed the agreed June 30, 2013 deadline for submitting dossiers to the National Planning Commission (NPC). Verification and subsequent disbursement activities cannot take place until dossiers are available. This delay will impact on Program cash flows and will extend the delay that GON experiences between expenditures and IDA reimbursements. GON has already drawn the full amount of IDA’s advance allowable for the BIMP operation. There will be no further disbursement of IDA until the Program can evidence outputs that pass verification.  NPC is standing by to conduct verification activities: The Bank Team is pleased note that NPC has already received support from the Swiss Agency for Development and Cooperation (SDC) to engage consultancy resources needed to handle DLI verification. This team is now ready and standing by to proceed with DLI verification subject to DOR furnishing the bridge dossiers that will form the basis for the verification work program. Other Items for Attention 11. The following provides other items for attention, which are not covered earlier paragraphs.  The first audited Program financial statements for FY2012/13 is due on January 15, 2014: These are required as per the Program’s Financing Agreement. The scope of audit activities will include only program related expenditures under those line items that are specific to the Program’s scope of works.  The pilot initiative to monitor bridge construction, maintenance and management activities using mobile phones has made good progress: This initiative has started under a separate World Bank Trust Fund financing. The consultants have already been appointed and the system is planned to be piloted in the Central Region. The plan is to roll the system out to other regions. DOR Project Management Team (PMT) is working closely with the consultants’ team.  DOR has also made considerable progress in the development of an ICT based Grievance Redressal Mechanism (GRM): GRM policy for DOR has been prepared and MoPIT already approved it. The Bank has secured Trust Fund support to implement the GRM system. The Program Action Plan required the implementation of the GRM system by September 30 2013.  The Bank has been helping BP in developing a Program outreach strategy in line with the Right to Information Act, 2007: A consultant has been working closely with DOR in this regard. The consultant has submitted the draft report, which was shared with DOR. The next step is the operationalization of the report recommendations.  DOR has made significant progress in procuring a Bridge Inspection Vehicle: The Road Sector Development Project (RSDP) is supporting this expenditure. DOR has already awarded the bid and the vehicle is scheduled to be delivered by January 2014.  The Bridge Project has successfully delivered five regional training sessions on BIMP / BMS: Training sessions were held in five locations (Kathmandu, Hetauda, Dhanghadi, Nepalgunj and Biratnagar) July and early-October, 2013Officials from 20 DOR divisions (out of total 25) attended the sessions. The only remaining region is the western region. The session outcomes appear to be positive and field officials were enthusiastic regarding the use of BMS in bridge planning and management.  BMS server hosting and maintenance contract: The BP has made arrangements to host BMS on a private server. This has greatly improved reliability and reduced disruptions for online users. However, the BP is yet to let the complementary contract for maintaining BMS software. This contract is important for ensuring BMS software updating from time to time as it becomes necessary. The estimated cost of BMS maintenance is relatively low: approximately NPR 40,000 ($400 per month). The Team requests DOR to let the contract out given the important role that BMS plays in guiding the Program.  Strengthening maintenance capacity of Division Road Offices: Divisions are fully responsible for minor maintenance of bridgeworks. There is a similar opportunity to improve their capacity 5 and increase their role in non-urgent major maintenance. In the case of relatively simple works, Divisions could relieve some of the BP’s workload.  The Program might need a restructuring: An option of restructuring the Program is being considered by the Bank Task Team. Discussions have already started with DOR/ BP in this regard. An approach that would expand the Program’s maintenance targets, in an effort to build on positive performance in this area, is being considered. It may also be necessary to find ways of reshaping the Program’s scope of new construction given the issues that the Program is facing in the selection of new bridges. However, it may require sometime to work out the restructuring proposal. It is most likely that the next review will shed some light on the potential restructuring of the Program. VI. Key Issues in Implementation i. The Program has achieved only limited progress against steps agreed in the last review. Two noteworthy achievements worth mentioning: good progress in year 1 major maintenance bridgeworks and in procuring designs for major maintenance works, and the delivery of Bridge Management System (BMS) orientation sessions to DOR divisions. Nonetheless, the Program has fallen considerably behind in other key areas; ii. Many of the Program Action Plan activities remain incomplete. BP/DOR needs to be more proactive in the implementation of the Action Plan, which is a Financing Agreement covenant; iii. The Program appears to be on track to meet first year DLI targets. This is as initial targets were designed around completion of DOR’s existing backlog of bridgeworks. However, the Program’s ability to achieve DLI targets in subsequent years is in doubt. Baring immediate actions, the Program is likely to struggle to achieve DLIs from year 2 onwards; iv. DOR/BP needs to engage Program Support Consultants and Capacity Building Consultants without further delays. Program DLIs and planned expenditures are designed for a volume of bridgeworks that will require additional support. Therefore, continued delays will decrease the likelihood that the Program will achieve the DLIs on time; v. BP needs to strengthen cooperation with other major stakeholders including DOR’s Geo- Environmental and Social Unit (GESU), which is crucial in implementing the Environmental and Social Management Framework; vi. The Program could not fulfill its reporting requirements. Two trimester reports are now overdue. It is necessary for the Program to be mindful about the reporting requirements; and vii. The Program might need a restructuring. One of the options being considered is the expansion of the Program’s maintenance targets. However, the restructuring proposal needs careful thinking. The next review might take a decision regarding the proposal. Proposed timing and focus of the Next Review 12. The fourth Program review will take place in January 2013 and will again focus on: (i) the implementation status of the Program Action Plan; (ii) an assessment of the actions taken and progress made towards the achievement of DLIs; (iii) the status of actions agreed during this review. During this time the Bank task team will also make a decision on whether restructuring of the current operation would be beneficial to achieving the Program development objective or not. 6 Annex 1a Implementation Review Team (In alphabetical order) # Name Position 1 Anna P. Hebert Senior Operations Officer 2 Bibash Shrestha Team Assistant 3 Bigyan Pradhan Sr. Operations Officer 4 Deepak Shrestha Sr. Transport Specialist 5 Dominic Pasquale Patella Transport/Finance Specialist 6 Drona Ghimire Environmental Specialist Sr. Transport Specialist and Task 7 Farhad Ahmed Team Leader 8 Hiramani Ghimire Sr. Governance Specialist 9 Parthapriya Ghosh Sr. Social Development Specialist 10 Pradeep Kumar Shrestha Consultant Finance 11 Rekha Shreesh Social Development Consultant 12 Shambhu Uprety Procurement Specialist 13 Shubu Thapa Team Assistant 14 Vishnu Shrestha BIMP Consultant Annex P-1 Annex 1b List of Persons Met (in alphabetical order) # Name Position Organization 1 Mr. Bali Raj Malla Engineer DRO Charikot DOR 2 Mr. Devendra Karki DDG, Foreign Cooperation Branch DOR 3 Mr. Indra Mani Pokhrel Chief Accounts Controller, BP DOR 4 Mr. Naresh M. Shakya SDE, BP DOR 5 Mr. Purna Siddhi Lal Shrestha Unit Chief, GESU DOR Roads Board 6 Mr. Ramesh Nath Bastola Executive Director Nepal 7 Mr. Shiva Hari Sapkota Joint Secretary NVC 8 Mr. Shiva Raj Adhikari SDE, BP DOR 9 Mr. Sudarshan Ram Bhandari Joint Secretary MoPIT 10 Mr. Tulasi Prasad Sitaula Secretary MoPIT Annex P-2 Annex 2 Update on Monitoring Framework Indicators Baseline Date Progress To Date Date (of the End-of- Date Value data Project collection) Target Value PDO: to provide safe, reliable and cost effective bridges on Nepal’s Strategic Roads Networks A. PDO level Results indicators PDO Indicator 1: Improved condition of 53 October Not due yet TBD 75 bridges on SRN 2012 (The percentage of bridges on SRN rated as being in good or fair condition) PDO Indicator 2: Reduced number of 6 October Not due yet TBD 1 structurally unsafe bridges 2012 (The percentage of bridges on SRN rated as structurally unsafe) PDO Indicator 3: Strengthened performance Negligible October First assessment will be conducted in December, TBD 50 management in bridge sector (Percentage of 2012 2013 bridge works completed on planned schedule) B. Intermediate result indicators Intermediate Results Indicator 1: Completion 0 First assessment will be conducted in December, TBD 17,125 of major maintenance of bridges on SRN 2013 (Cumulative metres) Intermediate Results Indicator 2: Completion 0 First assessment will be conducted in December, TBD 3,500 of minor repairs of bridges on SRN 2013 (Cumulative metres) Intermediate Results Indicator 3: New 0 First assessment will be conducted in December, TBD 6,000 bridges built or improved on SRN 2013 (Cumulative metres) Annex P-3 Indicators Baseline Date Progress To Date Date (of the End-of- Date Value data Project collection) Target Value Intermediate Results Indicator 4: Improved 0  BMS fully operational in 20 Divisions TBD Bridge Asset Management (Number of  DOR has officially endorsed BMS for SRN actions completed) bridge planning and prioritization via letter from Director General on October 10, 2012  Bridge Project is in the process of employing full time BMS operator.  Public version of BMS is available via DOR website: http://www.dor.gov.np/  First formal assessment will be done in December, 2013 Intermediate Results Indicator 5: Increased 0  GRM policy developed and approved by TBD effectiveness of the institutions responsible MoPIT. for bridge sector management (Number of  Consultant is on-board for development of ICT actions completed) based GRM system and work is in progress.  First formal assessment will be done in December, 2013 Annex P-4 Annex 3 Action Plan Implementation Status RESPONSIBLE COMPLETION ACTION DESCRIPTION DLI DEADLINE UPDATE ON STATUS PARTY MEASUREMENT Technical Actions Accomplishments  BMS fully operational in 20 Divisions Personnel  DOR and MoPIT have officially endorsed BMS for SRN bridge trained in use planning and prioritization of BMS,  Bridge Project is in the process of employing full-time BMS Bridge conditions operator i. BMS, the basis for planning, prioritization Linked to Project/Regional surveys  Public version of BMS is available via DOR website: and M&E, to be continuously maintained DLI 1-3 On-going Directorate/Divisio updated and http://www.dor.gov.np/ and used for prioritization of the Program. and 5 nal Office annual Challenges / issues prioritized  Regular update of data from Divisions and their quality remain a programs major issue. available  Need to engage IT personnel for maintenance of the software  Need a dedicated server for hosting the BMS  Software modifications and training needed to link BMS and CMS Accomplishments  Consultant engaged to work on QA plans (Oct., 2012)  Consultants have developed actions for improving skills and facilities for quality monitoring and control Continued  DDG planning led committee to finalize and agree on actions for ii. DOR implements a Quality Assurance Plan. compliance will improvement in division lab facilities. Recently PM of ACQMP has All materials testing to be undertaken Bridge be monitored taken a lead to monitor implementation of agreed actions in according to specifications as described in On-going Project/DOR by technical coordination with Project Director/ BP, DDG maintenance and the Quality Assurance Plan and in the audit DOR Central Materials Lab. contract between DOR and the contractor. consultants Challenges / issues  Divisions struggling to find trained personnel for running labs (esp. material engineers)  Significant need to upgrade testing equipment  DOR need to assign dedicated responsible staff in the lab Annex P-5 RESPONSIBLE COMPLETION ACTION DESCRIPTION DLI DEADLINE UPDATE ON STATUS PARTY MEASUREMENT Accomplishments  BP issued department wide letter on 21 Aug. 2012 instructing iii. DOR will assign project management teams formation of PM teams with technical, social, and environmental for each contract that has value over Continued personnel for all bridges costing > NPR 10 mil. US$125,000 equivalent (roughly NPR10 October compliance will  BP is monitoring division compliance with instructions. million). The project management team will 31, 2012 be monitored DOR  BP agreed to include up-to-date list in the Trimester Report. comprise technical, social and environmental and by technical personnel. A team can manage multiple ongoing audit Challenges / issues contracts depending on operational consultants  Delay in engaging implementation support consultant to provide requirements. social and environmental expertise in the regions.  Need to monitor team composition and effectiveness  Need to link division teams with BIMP Coordinator at the BP. iv. through MOF, during the implementation of Accomplishments the Program, allocate at least five percent (5%) of its total civil works budget under the October  MOF has given authorization to spend to MoPIT which includes 31, 2012 5% allocation to functions agreed under FY 2013-14 budget. Program in each said Fiscal Year, for Increased and July Challenges / issues feasibility studies, design, supervision, MoPIT/MoF budgetary 31 in quality control, management of subsequen allocation  BP need to ensure that adequate resources are allocated for GESU environmental and social impacts, and other and NVC to perform functions under Program t years required inputs for the maintenance and construction of bridges under the Program. Accomplishments  Draft mid-term training plan prepared  Training conducted in Network Arch Bridge technology through Training Plan International Consultant experts prepared and  October training v. DOR prepares annual training plans for all Challenges / issues 31, 2012 implemented. SRN bridge related functions and DOR/Bridge implements these plans throughout the and Project Activities  Delay of engaging Capacity Building Consultants delayed the annually supported by preparation of training plan Program implementation period. thereafter capacity  Difficulties identifying local expertise in new / latest technologies building to provide training. This has impacted on planning consultants  Difficulty securing long term funding commitment for training  Need to develop a corps of qualified and trained internal staff with expertise in bridge sector works  Need to develop private contractor capacity Annex P-6 RESPONSIBLE COMPLETION ACTION DESCRIPTION DLI DEADLINE UPDATE ON STATUS PARTY MEASUREMENT Fiduciary Actions Separate budget Accomplishments lines for SRN i. Creation of separate budget heads for SRN Effectiven and LRN  MOF has revised expenditure framework on 18 Dec., 2012 to bridges which will provide the budget provide separation for SRN bridges ess MoF bridges appear allocation for expenditures under the SRN Challenges condition in annual Bridge Program. budget issued  Need to ensure that Program expenditures are auditable by MoF Accomplishments  Priority list of bridges generated from BMS  List of priority bridges available on DOR website Annual ii. Annual preparation and public disclosure of October  Five Year bridge to bridge investment plan is available in draft investment plan prioritized investment and maintenance plans Linked to 31, 2012 form and awaiting detail review and approval by DOR Bridge Project prepared and based on BMS and limited by identified DLI 1-3 and Challenges/ issues disclosed in budget envelop. annually DOR website  Delay in the review of investment plan and its approval Gaps between investment plans and capabilities to meet plans  Continuing pressures to deviate from investment plans  Accomplishments  BP has nominated procurement chief A memo from  DOR procurement training courses in place DOR with the October  BP agreed to include the list in the Trimester Report iii. Appoint and maintain a procurement unit list of 31, 2012 Challenges chief in each of the procuring entities with procurement and revise clear job descriptions and provide them with the list as DOR unit chiefs and  Limited monitoring – particularly, no comprehensive register of at least one-week training on procurement (if a confirmation appointed staff appropriat they are not already trained). e from DOR that  Concern that procurement unit chiefs may not have sufficient training has authority to meet responsibilities been provided  DOR Planning and Monitoring Unit to update register of nomination of procurement chiefs.  Annex P-7 RESPONSIBLE COMPLETION ACTION DESCRIPTION DLI DEADLINE UPDATE ON STATUS PARTY MEASUREMENT iv. through DOR, (i) establish an audit Accomplishments committee meeting the requirements of the Recipient’s Office of the Auditor General, to The committee  Committee established address outstanding audit observations from will have met  36% of objections from 2009/10 have been addressed similarly Fiscal Year 2009/2010 and those in following 34% of objections from 2010/2011 have been addressed subsequent years, if any, resulting from October receipt of the Challenges DOR DOR’s own operations; and (ii) ensure that 31, 2012 preliminary  Identifying reasons for offices that did not respond all said outstanding audit observations from report and  Developing systems to monitor and enforce requirement to respond Fiscal Year 2009/2010 are addressed responded  Lack of proper system to up-date data according to a time-bound action plan within 35 days acceptable to the Association and Recipient’s Office of the Auditor General. Environment and Social Actions i. through DOR, review and revise DOR’s Accomplishment current environmental and social Revised ESMF disseminated via web and hard copy of addendum management rules and procedures to circulated and available for circulation incorporate bridge specific environmental Revised ESMF and social impact mitigation measures, in October disseminated Challenges / issues DOR/GESU form and substance satisfactory to the 31, 2012 via web and The revised version needs to be circulated to all concerned divisions Association, and immediately thereafter hardcopy of DOR. implement said revised rules and procedures  Commitment of BP to follow ESMF strictly. in a manner satisfactory to the Association  Need to incorporate relevant elements of updated ESMF into civil throughout the Program implementation. works procurement and contract management documents of bridge Accomplishment ii. through DOR, provide the Geo-  DG has issued memo assigning GESU to environmental and social Environmental and Social Unit within DOR Memo from aspects of all road and bridge projects on 4 Oct. 2012 with power and adequate resources, DOR to  BP and GESU have agreed to meet monthly in or der to coordinate acceptable to the Association, to enable it to October DOR formally assign environment and social activities linked to BP. carry out the social and environmental 31, 2012 GESU to SRN Challenges / issues management measures in accordance with Bridge Program the revised rules and procedures referred to  Need to finalize agreed medium term budget for strengthening in action (i) above. GESU  Approval of DOR is required Annex P-8 RESPONSIBLE COMPLETION ACTION DESCRIPTION DLI DEADLINE UPDATE ON STATUS PARTY MEASUREMENT Accomplishments  Draft business plan developed for GESU and in its final stage of approval iii. Preparation of a plan, and subsequent October GESU is  BP has committed budget allocation to fund GESU support for implementation of that plan, to strengthen 31, 2012 DOR strengthened as Program GESU both in terms of manpower and and on- per agreed plan Procurement underway for individual social and environmental financial resources. going consultants to support GESU Challenges / issues  Cross-cutting Actions Accomplishments  Draft policy developed and approved by MoPIT. i. Grievance Redressal Mechanism (GRM) September GRM  Implementation of GRM related software underway with Bank trust developed, made operational, and 30, 2013 developed and fund support implemented in DOR for managing all type DLI-6 DOR and on- made Challenges / issues of complaints including technical, fiduciary going operational and social/environmental issues.  Envisaged need for trial and debugging period  Need to implement and maintain GRM policy ii. Preparation of a Bridge Operations Toolkit Accomplishments (with support from the Association) that will  Draft toolkit prepared and ready for review/approval summarize various bridge planning, Toolkit  Procurement process underway to develop CD-Rom version and December construction, maintenance and management Bridge Project developed and possibly web-based toolkit 31, 2012 procedures. The toolkit will be developed published Challenges / issues based on the existing procedures that exists in different DOR manuals, guidelines etc.  Envisaged need for shakedown period and revisions  Commitment to use toolkit Annex P-9 Annex 4 Status of Actions Agreed in the Last Review (May, 2013) Actions Responsibility Deadline Status Project Development Indicator  Funding already secured  Identify funding source to support baseline data  WB and process of baseline data collection collection started. Action Plan implementation Under technical action (i)  Linked to DLI-5  Completed, DOR hosted  DOR to arrange dedicated server or hosting service BMS using a third-party  DOR  May 31, 2013 for BMS host for 3 month.  Re-merging into IT facility of DOR is still under study  Linked to DLI-5  Completed, BP procured  BP to procure medium-term contract for BMS software maintenance  BP  May 31, 2013. software maintenance and updates contract in early June 2013  Long-term contract is yet to be finalized  Linked to DLI-5  Training program to include basic training in BMS,  Capacity building  August 31, 2013  Training program is yet to CMS, and other software consultants be developed Under technical action (ii)  During annual  Training program (see below) to include materials lab  Capacity building training period &  No action taken training consultants annually thereafter Under technical action (v)  Prepare ToR,  All documents prepared by Procurement Plan, June 30, 2013 and EoI notice,  Capacity Building Consultants engaged  BP/RSDP submitted for DOR Estimate, DOR approval approval and submit to RSDP by June 30, 2013 Under fiduciary action (i)  Not mobilized  Mobilized by  BP to engage and mobilize internal audit consultant  BP  Application of probable 4 August 31, 2013 candidates received after EoI notice on June15, 2013 Under fiduciary action (ii)  Draft by May 31,  WB to support BP with development of 5 year  Planning and  Not submitted for approval 2013 bridge-by-bridge investment plan and to seek MoF Design Branch,  Draft plan still under  Approval by June and NPC endorsement BP and WB review by BP 31, 2013 Annex P-10 Actions Responsibility Deadline Status Under fiduciary action (iii)  Continuous  DOR planning branch to maintain register of process  Planning and  Register only partly procurement unit chiefs and to include this within  Include updated Design Branch maintained. trimester reports list in BIMP Trimester Report Under fiduciary action (iv)  Achieved  All outstanding audit observations from 2009/10 to  DOR Audit  > 30% by June 30,  As of end-June, 2013, be addressed Committee 2013 36.47% achieved Under social and environmental action (i)  All activities completed  Print ESMF Addendum and circulate , and upload on  GESU / DG’s  Addendum copy of ESMF  June 30, 2013 DOR, GESU and project websites office printed and circulated and uploaded on DOR website.  Bridge Operation Toolkit will include social and environmental steps, process and procedures  BP, GESU, DOR  July 31, 2013  Already included consistent with ESMF Under social and environmental action (ii)  GESU / BP /  DOR to approve medium-term budget for  Draft GESU business plan Planning and  June 30, 2013 strengthening GESU is yet to be approved by Design Branch DOR Under social and environmental action (iii)  Task not completed due to  Social and environmental consultants to support  GESU  June 30, 2013 the lack of qualified GESU engaged applicants Cross cutting action (i)  Linked to DLI-6  DOR to report on complaints received via GRM and  GRM policy approved  DOR/ Divisions  June30, 2013 actions taken in trimester reports  GRM is being implemented Cross cutting action (ii)  Linked to DLI-4  Feedback and revision  BP to hold toolkit feedback and revision workshop  BP  May 31, 2013 workshop on bridge toolkit not held Disbursement Linked Indicators  Selection and  Linked to DLI-1  BP to procure contracts for 17 urgent maintenance  BP award by June30,  Completed before July 15, bridges that already have final designs 2013 2013  Selection and  BP to procure design services for 7 urgent major  Linked to DLI-1  BP award by June 30, maintenance bridges  Completed by July, 2013 2013  Identify bridges, prepare cost  Linked to DLI-2  BP to procure design services of additional 40 major estimate and call  Completed for only 17  BP maintenance bridges RfP from design major maintenance bridges Consultants by by July 2013 June 30, 2013 Annex P-11 Actions Responsibility Deadline Status  BP to assess from divisions whether 19 bridges  DLI-2 identified for minor maintenance in current FY are  BP  August 15, 2013  Data are yet to be received completed or not from DROs  BP to complete agreements of 9 new bridges under  DLI-3  BP  June 31, 2013 design/build contracts  Completed by July, 2013  Identify bridges and prepare cost  DLI-3  BP to take-up procurement of design services of 26 estimate by June  BP  No action additional new bridges 30, 2013  EOI published before July, 2013  Note: next steps for DLIs 4, 5, and 6 included within action plan items Others  No progress  BP, GESU and NVC to meet and finalize 3 year  BP, GESU, NVC  May 31, 2013  A spillover from last budget plan including TOR review actions  Not mobilized  Candidates for some position selected  Mobilization  7 positions need to be re-  Project Support Consultants engaged  BP before August, advertised (1 Contract and 2013 Procurement Specialist; 5 Construction Supervision Support Engineer, 1 Structural Engineer). Annex P-12 Annex 5 Update on Program DLIs DLI Period 1 targets Status Comments DLIs related to the achievement of PDO Indicator 1&2 Envisaged accomplishments  8 bridges (≈ 778 metres) to complete in current FY  27 bridges (≈1350metres) under  BP needs additional procurement of civil works in DLI-1: Completion of major designs & cost estimates current FY maintenance of bridges on 425 to stay on track for  7 bridges (≈ 350 meters) under SRN (cumulative metres) achieving targets in next procurement of design services in FY current FY 2012/13  17 bridges ( ≈ 850 meters) to take-up for procurement of designs services by FY 2013/14 Envisaged accomplishments  BP closely monitor DLI-2: Completion of minor  19 bridges (≈ 760 metres) to divisions to ensure maintenance of bridges on 700 complete in current FY achievement SRN (cumulative metres) Envisaged accomplishments  National budget issues  32 bridges (≈ 2000 metres) to have delayed backlog DLI-3: New bridges built or complete in current FY completion, but improved on SRN (cumulative 1,700  13 bridges (≈ 450 metres) under additional funds in later metres) procurement in current FY years can help to catch up if this DLI slips DLIs related to PDO Indicator 3 DLI-4: Strengthened performance management in 20  See action plan update  No action taken so far bridge sector (percent works complete on schedule) DLI-5: Improved Bridge Asset  BMS installed in 20 Management Divisions BMS fully operational in 15  See action plan update  5 training/briefing divisional/ regional offices program on BMS completed (1 remaining) DLI-6: Increased effectiveness Grievance redressal mechanism  GRM policy approved of the institutions responsible implemented in DOR and report by MoPIT for bridge sector management disclosed detailing status of  See action plan update  GRM software is being complaints and actions on fraud developed with Bank’s and corruption and those related to help social and environmental issues Annex P-13 Annex 6 Agreed Next Steps Next Step Responsibility Deadline Comments Project Development Indicator  The Bank team will  Funding secured, procurement process  WB finalize baseline date underway for study team collection plan Action Plan implementation Under technical action (i)  RfP to be issued  Linked to DLI-5  DOR to arrange dedicated server or for short listed  Eventual aim is to  DOR hosting service for BMS Consultants by Oct merge with DOR’s IT 31, 2013 facility if possible  RfP to be issued  Linked to DLI-5  BP to procure medium-term contract for short listed  Agreed on August 15 for BMS software maintenance and  BP Consultants by to procure a contract updates Oct. 31, 2013. for 1 year    Linked to DLI-5  BP intending to hire  Training program to include basic  Capacity consultants from Staff  December 30, training in BMS, CMS, and other building College to develop 2013 software consultants training program (in process) Under technical action (ii)  Training program (see below) to  Capacity  During annual include materials on lab operations / building training period & specific tests consultants annually thereafter Under technical action (v)  RSDP to get WB’s  Capacity Building Consultants NOL by Nov.15,  BP/RSDP engaged 2013  EoI publish by Nov.30, 2013 Under fiduciary action (i)  BP to engage and mobilize internal  Mobilized by  RfP issued on Sept.4,  BP audit consultant Nov.15, 2013 2013 Under fiduciary action (ii)  WB to support BP with development  Planning and of 5 year bridge-by-bridge investment  DOR approval by Design Branch, plan and to seek MoF and NPC Dec 30, 2013 BP and WB endorsement Under fiduciary action (iii)  Continuous throughout  DOR planning branch to maintain implementation  Planning and register of procurement unit chiefs and  All BIMP Design Branch to include this within trimester reports Trimester Reports to include updated register Under fiduciary action (iv) Annex P-14 Next Step Responsibility Deadline Comments  All outstanding audit observations  DOR Audit  > 40% by Oct 30,  As of June, 2013 only from 2009/10 to be addressed Committee 2013 36.47% achieved Under social and environmental action (i)  DOR/BP implement revised ESMF incorporating into bridge Project Implementation Cycle (PMC) and  BP and GESU agreed ensures inclusion of ESMF through  BP/GESU  On-going process to coordinate in a review/ acceptance and compliance recent meeting monitoring by the GESU till release of Defect Liability Period (DLP) Certificate  BP and GESU maintain close coordination for effective implementation of revised ESMF by  1st meeting on conducting formal meeting at least  BP/GESU Oct.9, 2013 once in a month with maintaining  Every month minutes. Progress status to be included each Trimester Report  GESU to develop templates for environmental social assessments  GESU/BP  Nov.15, 2013 reports including IEE and other review and compliance monitoring reports Under social and environmental action (ii)  GESU / BP /  DOR approval for  DOR to approve medium-term budget Planning and business plan by for strengthening GESU Design Branch end October 2013  BP to allocate dedicated budget from  DOR approval of the share of 5% of budget head 337-  BP/GESU/DOR budget by 320-4 with authorization in name of Oct.31,2013 Unit Chief, GESU Under social and environmental action (iii)  Social and environmental consultants  Mobilized by Nov.  GESU to support GESU engaged 30,2013 Cross cutting action (i)  DOR to report on complaints received  DOR/  Linked to DLI-6 via GRM and actions taken in  Dec 31, 2013 Divisions trimester reports Cross cutting action (ii)  Final review by  Linked to DLI-4  BP to hold toolkit feedback and  BP mid-November,  BP has completed 2nd revision workshop 2013, round of review Disbursement Linked Indicators  BP to procure design services of  Design Consultants additional 56 urgent major  BP on board by Oct31,  Linked to DLI-2 maintenance bridges 2013,  BP to confirm whether 19 bridges  Mid-November,  Linked to DLI-2 identified for minor maintenance in  DROs, BP 2013 FY 2012/13 are completed or not  BP to confirm whether 19 bridges for minor maintenance in FY 2013/14 are  DROs, BP  Oct.31, 2013 identified or not Annex P-15 Next Step Responsibility Deadline Comments  Preparation of document including cost  DLI-3 estimate , tender  Design of 13 bridges  BP to complete agreements of 29 new document etc for completed and under bridges under appropriate procurement procuring design completion  BP procedures including design/build services, civil  Design to be procured contracts option works under for 9 bridges Design and Build,  Design and build and for bridges option for 7 bridges having design by Nov.15, 2013 Note: next steps for DLIs 4, 5, and 6 included within action plan items Others  BP, GESU and NVC to meet and  BP, GESU,  A spillover from last finalize 3 year budget plan including  Oct.31, 2013 NVC review TOR  Mobilize by end-  A spillover from last  Project Support Consultants engaged  BP December, 2013 review actions  Submit to NPC by  Submission of Dossiers for DLI  BP December 15, verification to NPC for Year 1 2013 Annex P-16