93460 BRIDGES IMPROVEMENT AND MAINTENANCE PROGRAM (BIMP) (IDA Credit 5138-NEP) Sixth Implementation Review and Support Mission November 13-24, 2014 AIDE MEMOIRE I. Introduction and Acknowledgments 1. A World Bank team1 led by Farhad Ahmed (Sr. Transport Specialist and Task Team Leader) (see Annex A), in partnership with Department of Roads (DOR) staff, undertook an implementation review of the Nepal Bridges Improvement and Maintenance Program (BIMP) from November 13-24, 2014. The objectives of the review were to: (i) assess progress against Action Plan items; (ii) review the status of Program activities that will trigger Disbursement Linked Indicators (DLIs); and (iii) identify next steps for addressing challenges that may impact on the Program’s ability to achieve envisaged results. The Team visited two bridges sites in the Eastern Region to briefly assess their quality and to ascertain results achieved and potential field implementation issues (Annex I provides field visit notes). 2. The Team is grateful for support from DOR and the Ministry of Physical Infrastructure and Transport (MoPIT) to conduct this review (Annex B provides the list of persons met). The Bank reiterates its commitment to making this Program a success. It stands ready to support the Government of Nepal’s (GON’s) actions to address the issues identified in this Aide Memoire. 3. This Aide Memoire summarizes key findings along with an updated set of specific “next steps” to advance Program implementation. Contents of this document reflect decisions agreed during wrap-up discussions chaired by the Secretary, MoPIT on November 23, 2014. As per the World Bank’s Access to Information Policy and the decision of the wrap-up meeting, this Aide Memoire will be classified as a public document. II. Summary of Program Progress and Program Status Program Data Program Performance Ratings Board Approval: 28-Jun-2012 Summary Ratings Last Now Effectiveness Date: 20-Dec-2012 Achievement of PDO U MS ▲ Original Closing Date: 15-Jul-2017 Implementation Progress U MS ▲ Original Cr. Amount: SDR2 38.7m Action Plan U MU ▲ (US$56.38m) Amount Disbursed (as of SDR 13.3m Disbursement Linked Indicators MU MU ◄► December 11, 2014): (US$19.72m3) Technical U MS ▲ Fiduciary U MU ▲ Social and Environmental U MS ▲ Counterpart Funding MU MS ▲ Overall Program Rating U MS ▲ Notes: S -Satisfactory; MS - Moderately Satisfactory; MU - Moderately Unsatisfactory; U - Unsatisfactory; ▲ Improving Trends; ▼ Deteriorating Trends; ◄► Static. 4. The Government of Nepal has taken action to correct the Program’s performance. Annex C provides a summary assessment of individual program areas that justifies ratings against each of the areas including Program Development Objective (PDO) and overall implementation progress. The Team is pleased to acknowledge the following positive achievements: a) DOR has deployed a new project team with bridge-specific expertise. Members of this team helped design BIMP; 1 Hereinafter referred as “the Team” 2 Special Drawing Rights 3 35% of the total credit amount 1 b) The Program is now implementing the Environmental and Social Management Framework. Geo-Environmental and Social Unit (GESU) has increased its human resource strength and has received adequate budget to discharge its Program related functions; and c) DOR has separated the Program’s management responsibilities from Local Road Network bridge initiatives. Budget and expenditure show a downward trend that implies a potential gradual winding down of spending on LRN bridges. 5. Nevertheless, there remain several areas where the Program needs to improve further, including: a) Spending sufficient resources on design, supervision and quality control; b) Development and delivery of training programs as agreed in the Program Action Plan; and c) Implementation of quality control measures as agreed in the Program Action Plan. 6. While the Program is demonstrating a noteworthy turnaround, there are lingering risks that could still jeopardize intended results. Most notably, DOR continues to take up new bridges on the Local Roads Network (LRN). In FY13/14, DOR took up 149 new LRN bridges – more than in FY12/13. While the Team welcomes the reduction of LRN budgets, there is a risk that DOR may end up carrying an ever larger backlog of incomplete LRN bridges into the future. Transferring LRN bridge related responsibilities to DoLIDAR may provide GON with a better option for the development and management of these bridges. III. Progress in Achieving Development Objective 7. It is possible to achieve the development objective if the Program’s upward trend continues Annex D provides details of progress made towards achieving the Program Development Objective. DOR and MoPIT have recently appointed a new Program management team. Recent improvements have evidenced that the new team is committed to Program’s objectives. GON’s continued attention to supporting the Program team can help to continue recent positive trends. 8. Baseline data collection is underway to help measure the impact of BIMP. The Government of Australia is supporting baseline data collection through a Bank-managed trust fund. As previously discussed with DOR, adhering to Bridge Management System (BMS) priorities is important to ensure that the impact evaluation properly captures benefits of bridge investments. Another key factor to consider is the importance of completing works in a timely fashion so that the evaluation has time to measure incremental changes in the livelihoods of target communities. 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 E provides the Action Plan implementation status. Annex F and Annex H, respectively provide status of agreed last review actions and the actions agreed during this review that will help in the achievement of Action Plan targets. A. Technical Actions 10. The Program has successfully reversed a downward maintenance expenditures trend. The Team is pleased to note that maintenance spending has recovered in FY13/14 following the sharp drop observed in 2012/13 (see the figure below). The Bridge Branch (BB) 4 is reporting preparations to take up a further 60 bridges for major maintenance during FY 14/15 which will further increase future spending on maintenance. This is a positive development that the Team views as evidence of a renewed commitment to the Program’s core objective. 4 GON has recently upgraded Bridge Project to a full-fledged branch and renamed it as Bridge Branch 2 700,000 Maintenance Budget & Expenditure Trends 600,000 76% increase in 500,000 maintenance expenditures 400,000 SRN maintenance budgets 300,000 SRN maintenance expenditures 200,000 100,000 - 2009/10 actual 2008/09 actual 2011/12 actual 2010/11 actual 2013/14 revised 2012/13 actual Sources: MoF redbooks and BIMP unaudited accounts FY13/14 11. Progress made in delivering physical results: The Bridge Branch has reported promising progress in physical results for major bridge maintenance and new construction. Verification is now complete for US$ 5.39 million worth of physical results under these DLIs. This is a noteworthy milestone in the Program’s achievements. DOR is projecting a further approximately US$ 10 million of verified results by February 2015 with a potential follow on tranche late in the fiscal year. The Team is particularly pleased to see that 748 meters of major bridge maintenance have been verified. While this is less than envisaged for year 2 of the program, it is a large improvement over the previous pace of bridge maintenance in Nepal. The following table provides progress regarding verification. Item Verified [m] Awaiting verification [m] DLI-1 Major Bridge Maintenance 748 500 DLI-2 Minor Bridge Maintenance 0 Unknown DLI-3 new construction 1,360 2,500 12. The Program’s unaudited financial statement shows no expenditures on design feasibility study and quality control during FY 13/14 despite an original budget of NPR 100 million (US$ 100,000). If accurate, this indicated gross disregard for virtually all items under the Program Action Plan and overall bridge quality in general. MoPIT and Ministry of Finance’s (MoF’s) diligent oversight to ensure this does not happen again will be critical to ensure the Program’s success. 13. The budget for design, feasibility study, and quality control in FY14/15 is approximately 5.8% of civil works budgets. This complies with the agreed item in the Program Action Plan and the associated covenant in the Program Financing Agreement. Further to the observation noted above about actual expenditures in FY13/14, the Team requests MoF to monitor expenditures under this budget heading closely. 14. MoPIT and DOR have established a new management structure for bridges that separates LRN and SRN programs. The Team welcomes this development as it was a condition of IDA’s continued support to BIMP. Under DOR’s new structure a dedicated branch under a Deputy Director General now heads bridge related initiatives with separate program management teams for LRN and SRN bridges. This structure is expected to be more efficient in the optimum use of limited human resources. 15. The FY 14/15 program of bridge works is precisely following BMS priorities: The Team welcomes this development as it is a condition for continued IDA support to BIMP. It is particularly noteworthy that all new bridge construction is following BMS priorities as this was historically more challenging than following BMS for maintenance works. Continued vigilance by DOR and MoPIT’s management to ensure that BMS remains the basis for all Program works will be highly appreciated as this is critical to achieving BIMP’s intended results. 3 16. The BB is preparing to update BMS software and condition data. DOR has previously noted minor bugs in the BMS software. While these have not compromised the overall functionality of BMS, they have reduced its user friendliness and performance. The BB is also planning to develop an interface in order to use BMS data for developing Annual Road Maintenance Plans (ARMPs). The Team welcomes this approach as it represents an important step in improving the efficiency of DOR’s maintenance systems. 17. The BB is taking initiatives to upgrade laboratories and testing capabilities. These initiatives appear to be at a preliminary stage. However, the Team welcomes this as it evidences a renewed commitment to the quality of bridge works. One option that DOR may wish to consider is including laboratory facilities within a revised program scope following the Program’s midterm review, which is potentially to be conducted before June, 2015. 18. Efforts needed to develop and implement training plans. Since BIMP’s approval DOR has made no significant progress on developing training plans to improve technical capacity in bridge works throughout the department. This is critical to improve the quality of completed works and the capabilities of division offices to support the Program. The Team will look for evidence of progress on this item during the next Program review. 19. There is evidence that DOR is reducing budgets for its LRN bridge construction program BUT simultaneously increasing the number of LRN bridges taken up. An analysis of the past three fiscal years’ expenditures and budgets shows that DOR is reducing budgets for its LRN bridge development program (see the figure below). This is an important step for reducing, and eventually quitting, DOR’s involvement in the LRN bridges. However, the number of new LRN bridges undertaken by DOR has been showing an upward trend (149 LRN bridges taken up in FY13/14 vs 114 in FY12/13). If this trend continues DOR may end up carrying a large backlog of LRN bridges indefinitely. The Team is pleased to note overall positive trends in budgets and expenditures for the Program and SRN bridges vs. LRN bridges. 3,000,000 LRN construciton budget LRN new construciton exp. Budget & Expenditure: 2,000,000 LRN New Construction 1,000,000 0 2012/13 actual 2013/14 revised 2014/15 budget B. Fiduciary Actions 20. Expenditures under new construction and maintenance are now merged under a single budget head (337320), although these expenditures were under separate budget heads in the last financial year. Expenditures for feasibility studies, for both LRN and SRN bridges, are budgeted under a single budget heads. These arrangements could create potential problems in tracking expenditures for new construction and maintenance, as well as between feasibility studies for SRN and LRN bridges. The allocated amount (NPR 1.75 billion) for FY 2014/15 under new construction and maintenance budget head (excluding ADB’s portion) seems to be adequate. 21. Although there are no outstanding trimester reports, unaudited project account for FY 2013/14 is overdue, which was due on October 15, 2014. The BB has agreed to submit the report by end-November, 2014. 22. There are outstanding audit issues from FY 2010/11 and 2011/12 that required BB’s attention. The status of cleared audit observations by the Audit Committee is the following: 74% (FY 2009/10); 54% (FY 2010/11); 50% (FY 2011/12); and 34% (FY 2012/13). Although the 4 District Treasury Controller Offices (DTCOs) have conducted the internal audit for FY 2013/14, the World Bank has not yet received a copy of the overall report. 23. Although the BB has reported that it has prepared a Procurement Plan (PP) and has submitted it to the National Planning Commission (NPC), it could not be made available to the Team during the review. The Team has emphasized the need to follow the Public Procurement Act/Public Procurement Regulations and Financing Agreement provisions completely. In particular the following actions need immediate implementation by the BB: (i) the preparation, documentation and publication (on DOR website) of the Master Procurement Plan and Annual Procurement Plans; (ii) the preparation, updating and maintenance of a list of all contract awards under the Program; (iv) the maintenance of a log of procurement complaints received and responded; (v) the planning and implementation of procurement training activities for Program officials on a regular basis. C. Environmental and Social Actions 24. GESU staffed and provided with adequate budget: DOR has successfully hired experts (one social specialist and one environmental specialist) to support GESU’s role in the Program. There are also six social mobilisers in place regionally to conduct site assessments for Program works. The Association has previously provided these experts with classroom and field training. GESU has also received a budget of NPR 10million to discharge its FY 2014/15 functions. These are positive developments that provide the basis for implementing the Program’s Environmental and Social Management Framework effectively. The BB has also reiterated its commitment to including GESU in all aspects of planning and preparation of Program works. The Team will continue to monitor this collaboration as it is fundamental to achieving the Program’s objectives. 25. GESU-BB coordination improving but further work needed: The BB and GESU’s most recent coordination meeting took place on November 6, 2014 and the next meeting is planned for end-November 2014. Following these discussions, trimester reports will now include an update on social and environmental issues under the Program. The BB and GESU have also committed to enhancing coordination and communication with all DOR branches, divisions, and regional offices to ensure effective application of the Environmental and Social Management Framework (ESMF) on Program works. The Team welcomes these efforts and looks forward to improved collaboration in the future. BB (in coordination with GESU) has agreed to implement a number of activities (see Annex H for details). 26. The newly hired environmental and social specialists have developed templates for safeguard screening, monthly field monitoring and reporting by Social Mobilizers. These are now undergoing review and testing. The Team welcomes this effort. 27. Future need for improving bridge dossier ESMF provisions: Lessons learned from the Program’s first round of physical verification highlight the importance of improving ESMF provisions in bridge dossiers that go for verification. This was a source of delay in the most recent round of physical verification. BB and GESU’s combined efforts to ensure that all dossiers include accurate and complete information on environmental and social items will be important to facilitate timely future rounds of verification. 28. Budget provisions for basic health, safety, and environmental/social impact mitigation items in existing contracts: In April 2014, MoPIT has advised that ongoing contracts may receive an increase in scope of work and cost to accommodate social and environmental mitigations up to an amount not exceeding the lesser of 2% of total contract value or NPR 2.5 million (US$ 25,000). The Team welcomes this decision as many ongoing contracts originally failed to include such costs in their original bill of quantities. There is an immediate need to accelerate GESU’s involvement in revising ongoing contracts and managing contractor compliance with ESMF terms. Recent enhancements to GESU’s human and financial resources are a positive step. During the next Program review the Team will be keen to see GESU using these resources to play a more active role in Program delivery. 5 D. Cross Cutting Actions 29. DOR’s Grievance Redressal Mechanism (GRM) is functioning: DOR has launched and is implementing the Grievance Redressal Mechanism. So far 72 complaints have been lodged. Subject to verification by the National Planning Commission DOR is encouraged to claim this milestone against DLI-6. The Team will be keen to see that DOR’s management takes remedial actions to address complaints received by the next Program review. 30. Need to roll out the Bridge Operations Toolkit: DOR has developed an initial Bridge Operational Toolkit in FY2012/13 but has failed to fully integrate it into the management of bridge works. This tool is an essential part of managing the quality of Program works and supporting achievement of DLI-4 (bridges completed to schedule). Also the quality of completed bridge works remains a major issue in Nepal. DOR is strongly encouraged to accelerate the Bridge Operations Toolkit’s adoption. Disbursement Linked Indicators 31. Annex G 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: 32. DLI 4 (bridges completed to schedule) may require restructuring: Prior to BIMP, the BB never tracked the proportion of works completed to schedule. Target values under DLI-4 were therefore based on very rough estimates. Actual performance is far below envisaged targets and a more incremental approach to improving this aspect of contract management may be appropriate. The Team thinks that there is a case to restructure this DLI, which may be formalized during the midterm review. 33. DLI 2 (minor maintenance): The BB reports minor maintenance is taking place on Program bridges but has not received adequate support from division offices to report this in a way that could support verification. The Team notes that this DLI is among the easier ones to achieve. Support from DOR’s management to ensure that divisional offices support the BB will help evidence achievement against this DLI so that funds can disburse. V. Other Items for Attention 34. DOR needs to use the Bridge Inspection Vehicle effectively. DOR has taken delivery of one bridge inspection vehicle on April 6, 2014. The manufacturer’s experts have trained three operators and mechanics on its use. There is an immediate need to put this vehicle into service. A logical place to start would be to survey bridges along the East West highway as these tend to be high priority assets, many of which are reaching the end of their service lives. 35. International expert engaged to support standardization of designs: The BB has successfully engaged an Indian bridge expert to provide technical assistance and to support with the development of standard bridge designs for new construction of relatively simple bridges. This standardization will help to save considerable time in achieving the Program DLIs. The Team looks forward to this work reaching completion and also wish to see DOR pursue technical options such as pre-cast construction and segmented arch designs that offer potential time and cost savings. VI. Proposed timing and focus of next review 36. The seventh Program review will take place after approximately three months (February, 2014). The seventh review will again focus on: (i) progress on implementing the Program Action Plan; (ii) progress made towards the achievement of DLIs; and (iii) a review of the implementation of agreed actions in this review. The Team also proposes to use the February review as a basis for planning the Program’s mid-term review where restructuring and additional financing can be considered depending on the Program’s status at that time. 6 ANNEX A: IMPLEMENTATION REVIEW TEAM # Name Position 1 Annu Rajbhandari Environment Consultant 2 Bhagawan Shrestha Consultant (Quality Assurance) 3 Bibash Shrestha Team Assistant 4 Dominic Pasquale Patella Transport Specialist 5 Drona Ghimire Environmental Specialist 6 Farhad Ahmed Sr. Transport Specialist and Task Team Leader 7 Jun Zeng Sr. Social Development Specialist 8 Pradeep Kumar Shrestha Consultant (Financial Management) 9 Sachin Upadhyaya Consultant (Social Development) 10 Shambhu Uprety Procurement Specialist 11 Shubu Thapa Professional Associate 12 Vishnu Shrestha Consultant (BIMP) 13 Yogesh Bom Malla Financial Management Specialist Annex P-1 ANNEX B: PERSONS MET # Name Position Ministry of Physical Infrastructure and Transport (MoPIT) 1. Mr. Tulasi Prasad Sitaula Secretary 2. Mr. Bishnu Om Bade Joint Secretary Department of Roads (DOR) 1. Mr. Madhab Kumar Karki Director General Deputy Director General, Foreign 2. Mr. Sanjay Kumar Shrestha Cooperation Branch 3. Mr. Arjun Kumar Thapa Deputy Director General, Planning Branch 4. Mr. Saroj Pradhan Deputy Director General, Bridge Branch 5. Mr. Naresh Man Shakya Senior Divisional Engineer, Bridge Branch 6. Mr. Ram Chandra Raut SDE, Eastern Division Road Office No.3, Biratnagar 7. Mr. Shiva Prasad Nepal Unit Chief, GESU 8. Mr. Rajan Shrestha Environmental Expert, DOR/GESU (Consultant/BIMP) 9. Mr. Prabhakar Pandit Social Expert, DOR/GESU (Consultant/BIMP) 10. Mr. Udaya Nepal Financial Expert (Consultant/BIMP) National Planning Commission (NPC) 1. Mr. Gopi Nath Mainali Joint Secretary National Vigilance Center (NVC) 1. Mr. Ramesh Kumar Sharma Acting Secretary 2. Mr. Purna BhaktaTandukar Joint Secretary 3. Mr. Gaya Prasad Ulak Senior Divisional Engineer (Under Secretary) 4. Mr. Govinda Dumaru Engineer Annex P-2 ANNEX C: SUMMARY ASSESSMENT OF INDIVIDUAL PROGRAM AREAS Item Rating Key Points Program Development MS  Program’s trajectory has now been reversed and progress has Objective accelerated towards achieving objectives Action Plan (Overall) MU  Bridge Management System (BMS) priorities followed for 100% of Program work plan  Grievance redressal mechanism (GRM) functioning  Fiduciary, environmental, and social related actions now acceptable o Technical actions relating to quality management remain one of the main concerns Disbursement Linked MU  DLI-1: 748 meters verification complete. Procurement underway for Indicators design of major maintenance activities of 60 bridges o DLI-2: no progress in collecting information for minor maintenance bridge dossiers (though works reportedly took place)  DLI-3: 1,360 meters verification complete. Program of new construction works exactly following BMS priorities o DLI-4: no substantive progress – may require restructuring  DLI-5: BMS fully operational in all 25 divisions. Procurement underway for updates to software  DLI-6: GRM functioning. 72 complaints received so far Technical MS  76% increase in maintenance spending relative to prior FY  BMS in use as the basis for planning and prioritizing the Program  Budget for design, feasibility study, supervision and quality control above covenanted 5% of overall civil works budget  Construction site supervision engineers active in each region  New organizational structure to separate SRN and LRN programs in place o Progress slow on project management teams and other quality related actions o No progress on developing and implementing training plans Fiduciary MU  Planning and Design Branch managing a register of procurement unit chiefs as agreed  Incremental progress on clearing backlog audit objections  Trimester and audit reports up-to-date  Separate budgets maintained for construction on LRN and SRN  Unaudited Project Account for FY2013/14 is overdue Social and MS  Social mobilizers engaged for each region Environmental  GESU has engaged additional human resources at the central level to manage overall ESMF implementation for the Program  GESU has received requested budget to support the Program  MoPIT has authorized increase in ongoing contracts’ scope and budget to cover environmental/social mitigations not originally in bill of quantities (BoQs)  The Bridge Branch (BB) renewing efforts to engage GESU in all aspects of Program implementation Overall Program MS  New team in place has accelerated Program’s progress rating o Need for improvement on (i) spending on design feasibility study and quality control; (ii) implementing quality related actions; and (ii) training; Notes: S - Satisfactory; MS - Moderately Satisfactory; MU - Moderately Unsatisfactory; U – Unsatisfactory;  - Accomplishments;  - Concerns Annex P-3 ANNEX D: UPDATE ON PROGRAM MONITORING FRAMEWORK Indicators Baseline Date Progress To Date Date (of End-of- Date Value the 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: 53 Oct.  Not due yet (will be due TBD 75 Improved 2012 at the end of 3rd year – condition of target 60) bridges on SRN (The percentage of bridges on SRN rated as being in good or fair condition) PDO Indicator 2: 6 Oct.  Not due yet (will be due TBD 1 Reduced number 2012 at the end of 3rd year – of structurally target 3) unsafe bridges (The percentage of bridges on SRN rated as structurally unsafe) PDO Indicator 3: Negligible Oct.  First assessment will be TBD 50 Strengthened 2012 conducted in Dec., 2014 performance (Target 25%) management in bridge sector (Percentage of bridge works completed on planned schedule) B. Intermediate result indicators Intermediate 0  Dossiers have been TBD 17,125 Results Indicator verified by NPC for 1: Completion of 748.1m of urgent major major maintenance of bridges maintenance of and DOR has applied for bridges on SRN disbursement on 13th Oct. (Cumulative 2014. metres)  DOR is compiling more dossiers for submission to NPC Intermediate 0  No progress has so far TBD 3,500 Results Indicator been made for submission 2: Completion of of Dossiers to NPC. minor repairs of However, DOR is bridges on SRN assessing minor repairs (Cumulative carried out by field metres) divisions for the compilation of dossiers under this DLI. Annex P-4 Indicators Baseline Date Progress To Date Date (of End-of- Date Value the data Project collection) Target Value Intermediate 0  Dossiers have been TBD 6,000 Results Indicator verified by NPC for 3: New bridges 1360.1m of new bridges built or improved and DOR has applied for on SRN disbursement on 13th Oct. (Cumulative 2014 metres)  DOR is compiling more bridge dossiers for verification by NPC Intermediate 0  BMS fully operational in TBD Results Indicator 25 divisions. 4: Improved  DOR has officially Bridge Asset endorsed BMS for SRN Management bridge planning and (Number of prioritization via letter actions from Director General on completed) Oct. 10, 2012.  BB has employed a full time BMS operator.  Public version of BMS is available on DOR website: http://www.dor.gov.np  DOR has plan to make BMS compatible with ARMP for divisional planning and budgeting purpose by June 2015 and has also plan to update existing BMS and make it more robust by Dec. 2015.  DOR has submitted supporting documents to NPC in Dec. 2014 for formal verification of this DLI Annex P-5 Indicators Baseline Date Progress To Date Date (of End-of- Date Value the data Project collection) Target Value Intermediate 0  GRM policy developed TBD Results Indicator and approved by MoPIT. 5: Increased  DOR formally launched effectiveness of GRM system on Apr. 16, the institutions 2014. responsible for  A Help/Call Center has bridge sector been set-up in DOR to management provide system assistance (Number of to all DOR cost centers. actions  Work in progress to completed) mainstream GRM system in DOR as per an agreed Action Plan  GRM Procedural Manual has now been finalized.  DOR has submitted supporting documents to NPC in Dec. 2014 for formal verification of this DLI Annex P-6 ANNEX E: ACTION PLAN IMPLEMENTATION STATUS COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT Technical Actions i. BMS, the basis for planning, prioritization Linked On-going Bridge Project/Regional Personnel trained in Accomplishments and M&E, to be continuously maintained and to DLI Directorate/Divisional use of BMS, used for prioritization of the Program. 1-3 and Office conditions surveys  BMS fully operational in 25 divisions. 5 updated and annual  DOR and MoPIT have officially prioritized programs endorsed BMS for SRN bridge available planning and prioritization  A dedicated BMS operator with IT background engaged since early Mar., 2014  Public version of BMS is available on DOR website (http://www.dor.gov.np/) Challenges / issues  Regular update of data from divisions and ensuring their quality remain a major issue.  Protecting the system integrity remains a challenge  Need to train IT personnel engaged for BMS operation on the software maintenance  Need to make BMS compatible to ARMP for its effectively use by divisions and regions for system sustainability  Software modifications and training needed to link BMS and CMS.  DOR should seek financial assistance from Roads Board Nepal for BMS data updating and up keeping of the system. Annex P-7 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT ii. DOR implements a Quality Assurance Plan. On-going Bridge Project/DOR Continued compliance Accomplishments All materials testing to be undertaken will be monitored by according to specifications as described in the technical audit  Action Plan for improving skills and Quality Assurance Plan and in the contract consultants facilities for quality monitoring and between DOR and the contractor. control has been developed  DOR has taken actions for improving division laboratory facilities and has already completed gap assessment of division labs in eastern and central regions.  BB has a plan to purchase non- destructive testing (NDT) equipment in the FY 2014/15  GON has approved Policy Document in Quality Management  GON has also approved Updated Testing Manual Challenges / issues  DOR needs to strengthen its regional directorates and divisions in accordance with Policy Document on Quality Management including application of Quality Assurance Plan (QAP) in divisions and projects with the help of the project support consultants  DOR urgently needs to make provisions of trained personnel for running labs (especially material engineers, senior laboratory technician )  A significant need to upgrade testing equipment at division labs according to the gap analysis  DOR needs to decide where the Non- destructive Testing (NDT) equipment will be housed.  DOR needs to make concerned site engineer accountable for quality and periodically audit by independent verifiers Annex P-8 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT iii. DOR will assign project management teams Oct. 31, 2012 DOR Continued compliance Accomplishments for each contract that has value over and ongoing will be monitored by US$125,000 equivalent (roughly NPR10 technical audit  BB issued department-wide letter on 21 million). The project management team will consultants Aug. 2012 instructing formation of PM comprise technical, social and environmental teams with technical, social, and personnel. A team can manage multiple environmental personnel for all bridges contracts depending on operational costing > NPR 10 mil. requirements.  BB has assured to re-enforce formation of PM teams at sites through departmental instructions BB maintains monitoring division compliance with instructions.  BB agreed to include up-to-date list in Trimester Reports. Challenges / issues  BB needs to maintain up-dated register.  BB needs to monitor team composition and effectiveness regularly at sites.  BIMP coordinator needs close support to Construction Supervision Support Engineers (CSSEs) and Social Mobilizers (SMs) to link division PM teams iv. through MOF, during the implementation of Oct. 31, 2012 MoPIT/MoF Increased budgetary Accomplishments the Program, allocate at least five percent and Jul. 31 in allocation (5%) of its total civil works budget under the subsequent  MOF has provided authorization to Program in each said Fiscal Year, for years MoPIT to spend 5% allocation to feasibility studies, design, supervision, functions agreed under FY 2014-15 quality control, management of budget. environmental and social impacts, and other Challenges / issues required inputs for the maintenance and  BB needs to ensure that adequate construction of bridges under the Program. resources are allocated to GESU and NVC so they can perform their functions under Program  BB needs to ensure that the allocated resources are expended for their intended purposes. Annex P-9 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT v. DOR prepares annual training plans for all Oct. 31, 2012 DOR/Bridge Project Training Plan prepared Accomplishments SRN bridge related functions and implements and annually and training these plans throughout the Program thereafter implemented.  BB is preparing Annual Training Plan implementation period. Activities supported by incorporating other training needs such capacity building as BMS, GRM, CMS, out-reach consultants strategy, mobile monitoring, materials quality control etc.  A series of training on concrete bridge technology particularly on pre-stressed and post-tension is in progress after an international bridge technical expert joined the project on Sept.28, 2014.  BB has planned to develop long term training plan on the concrete technology with the assistance of the said expert. Challenges / issues  Difficulties in identifying local expertise in new / latest technologies to provide training. This has impacted on the planning of training.  Need to develop a groups of trained staff with expertise in bridge sector works.  Need to develop private contractor capacity.  Need to include training on quality management, and other software including GRM, CMS, MDCS in the training plan Annex P-10 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT Fiduciary Actions i. Creation of separate budget heads for SRN Effectiveness MoF Separate budget lines Accomplishments bridges which will provide the budget condition for SRN and LRN allocation for expenditures under the SRN bridges appear in  MOF has revised expenditure Bridge Program. annual budget issued framework on 18 Dec., 2012 that by MoF created separate budget heads for SRN bridges. This is continued in current Fiscal Year too, however it has combined new construction and maintenance expenditure for SRN in one single Budget Head. Challenges  MoF needs to maintain same level of commitment every year ii. Annual preparation and public disclosure of Linked Oct. 31, 2012 Bridge Project Annual investment Accomplishments prioritized investment and maintenance plans to DLI and annually plan prepared and based on BMS and limited by identified 1-3 disclosed on DOR  Priority list of bridges generated from budget envelop. website BMS  List of priority bridges available on DOR website  DOR followed BMS priority list for selection of bridges for FY 2014/15 annual program  Three-year bridge-by-bridge investment plan is available and awaiting detail review and approval of DOR. Challenges/ issues Delays of BMS data up-date and data quality improvement could affect annual planning budgeting including ARMP preparation by divisions. A delay in the approval of the investment plan may make the Program susceptible to political expediency. Annex P-11 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT iii. Appoint and maintain a procurement unit Oct. 31, 2012 DOR A memo from DOR Accomplishments chief in each of the procuring entities with and revise the with the list of clear job descriptions and provide them with list as procurement unit  BB has nominated procurement chiefs at least one-week training on procurement (if appropriate chiefs and a  BB agreed to include the list of they are not already trained). confirmation from procurement unit chiefs in the DOR that training has Trimester Reports been provided  MoPIT has designated a Sr. Divisional Engineer as SRN Coordinator and one of his tasks is to monitor this activity Challenges  DOR Planning, Monitoring and Evaluation Unit needs to maintain update register of nominated procurement chiefs. iv. Through DOR, (i) establish an audit Oct. 31, 2012 DOR The committee will Accomplishments committee meeting the requirements of the have met following Recipient’s Office of the Auditor General, to receipt of the  Committee established address outstanding audit observations from preliminary report and  All most all offices (>99%) responded Fiscal Year 2009/2010 and those in responded within 35 within 35 days after receipt of the subsequent years, if any, resulting from days OAG’s audit report DOR’s own operations; and (ii) ensure that  Approximately 45% of objections from all said outstanding audit observations from 2009/10 have been addressed till end of Fiscal Year 2009/2010 are addressed Oct., 2014 according to a time-bound action plan Challenges acceptable to the Association and Recipient’s  Identifying reasons for offices that did Office of the Auditor General. not respond to audit observations  Developing systems to monitor and enforce requirement to respond  Lack of proper system with up-to-date data Annex P-12 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT Environment and Social Actions i. Through DOR, review and revise DOR’s Oct. 31, 2012 DOR/GESU Revised ESMF Accomplishment current environmental and social management disseminated via web rules and procedures to incorporate bridge and hardcopy  Revised ESMF disseminated via web specific environmental and social impact and hard copy of addendum circulated mitigation measures, in form and substance and available for circulation satisfactory to the Association, and  GESU has disseminated the immediately thereafter implement said information on changes made to ESMF revised rules and procedures in a manner to all divisions and regions during satisfactory to the Association throughout the BIMP orientation including role of Program implementation. GESU in BIMP  The revised version has been circulated to all concerned divisions of DOR. Challenges / issues  BB requires following ESMF strictly.  There is expectation of better coordination between BB and GESU in coming days  BB has shown it commitment to incorporate relevant social and environmental issues into the contract documents including in bill of quantities ii. Through DOR, provide the Geo- Oct. 31, 2012 DOR Memo from DOR to Accomplishment Environmental and Social Unit within DOR formally assign GESU with power and adequate resources, to SRN Bridge  DG has issued memo assigning GESU acceptable to the Association, to enable it to Program to environmental and social aspects of carry out the social and environmental all road and bridge projects on 4 Oct. management measures in accordance with the 2012 revised rules and procedures referred to in  GESU and BB are holding monthly action (i) above. coordination meetings to discuss BIMP environment and social activities. Challenges / issues  BB and GESU needs to work together in resolving safeguard field issues Annex P-13 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT iii. Preparation of a plan, and subsequent Oct. 31, 2012 DOR GESU is strengthened Accomplishments implementation of that plan, to strengthen and on-going as per agreed plan GESU both in terms of manpower and  Business Plan for GESU has been financial resources. approved by DOR/MOPIT on Feb. 2014  BB has allocated roughly 10million budget for FY 2014/15 to fund GESU’s Program related activities  Social and Environmental Experts (individual consultant) have joined GESU from Oct.19. 2014. Challenges / issues  Need to maintain continuity in budget allocation by BB as per approved Business Plan  BB needs to ensure that GESU plays it due Program related roles and maintain proper coordination Annex P-14 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT Cross-cutting Actions i. Grievance Redressal Mechanism (GRM) DLI-6 Sep.30, 2013 DOR GRM developed and Accomplishments developed, made operational, and and on-going made operational implemented in DOR for managing all type  Policy developed and approved by of complaints including technical, fiduciary MoPIT in Nov. 2012. and social/environmental issues.  DOR has formally launched GRM system on Apr. 16, 2014.  DOR GRM Procedural Manual has been circulated in DOR for their comments and recommendations  Further training on use of DOR GRM Procedural Manual is programmed to be held at the time of Contract Management Training in DOR In Dec. 2014 Challenges / issues  The software needs continued debugging while the Consultant’s input is available until end-Dec., 2014  Appropriate organizational structure within DOR needs to be established for sustainable implementation of GRM system  DOR needs to conduct public awareness campaign program training/orientation to all stakeholders  Updating of GRM procedural manual is an issue  DOR needs to review GRM outputs of each Region during ARMP workshop for wider discussion and monitoring regional performance and take steps to control F&C. Annex P-15 COMPLETION ACTION DESCRIPTION DLI DEADLINE RESPONSIBLE PARTY UPDATE ON STATUS MEASUREMENT ii. Preparation of a Bridge Operations Toolkit Dec. 31, 2012 Bridge Project Toolkit developed and Accomplishments (with support from the Association) that will published summarize various bridge planning,  Review of toolkit completed and final construction, maintenance and management version is published and approval procedures. The toolkit will be developed including Standard Procedures for based on the existing procedures that exists in estimating Project Completion Period different DOR manuals, guidelines etc. (PCP)  Trial CD-ROM version of toolkit developed and ready to be hosted on DOR website. Challenges / issues  Full adaptation of the toolkit might take time  Commitment to use toolkit and meet DLI-4  Use of standard procedures to estimate project completion schedule in current contract agreements of civil works Annex P-16 ANNEX F: STATUS OF AGREED ACTIONS FROM LAST REVIEW [MAY, 2014] Next Step Responsibility Deadline Status Project Development Indicator  Funding secured,  WB  Baseline data collection procurement process on-going and the analysis underway for study team is expected to be completed by Mar., 2014 Action Plan implementation Under technical action (i)  DOR to arrange dedicated  DOR  A server for hosting  Linked to DLI-5 server or hosting service BMS for FY  Complied, hosting BMS for BMS 2014/15 arranged by has been arranged Jun. 30, 2014 through local available server  BB to procure medium-  BB  Procure a medium-  Linked to DLI-5 term contract for BMS term contract for  Not complied. BB is yet software maintenance and BMS software to carry out the updates maintenance and a procurement of consulting contract for BMS services to up-date BMS updates by Jun. 30, and software 2014. maintenance. However, the TOR is being developed and is expected to be finalized soon.  Training program to  Capacity building  During annual  Linked to DLI-5 include basic training in consultants training period &  Not complied, no annual BMS, CMS, and other annually thereafter training program software  Consulting services prepared. engaged for the  Currently a Bridge preparation of Technical Expert is annual training conducting training on program by May 31, RCC bridge designs 2013  RSSDU conducted SRN bridge relevant trainings under their program including in quality control Under technical action (ii)  Quality Assurance Plan  DOR/BB  On-going process  Partially complied, implemented by DOR  Confirmed Construction Supervision application of QAP Support Engineers in divisions and (CSSEs), are helping the Projects through field offices in the Project Support application of QAP Consultants by Jun. 30, 2014 Annex P-17 Next Step Responsibility Deadline Status  Training program (see  Capacity building  During annual  Partially complied, below) to include materials consultants training period & training on materials on laboratory operations / annually thereafter laboratory operations and specific tests specific tests included in the DOR training program Under technical action (v)  Capacity Building  BB/RSDP  Bridge Tech. Expert  Complied, Bridge Consultants engaged (consultant) on- Technical Expert board by Jun. 30, (consultant) on-board 2014 since Sept. 28, 2014  Re-publish notice  Not complied, due to for the post of time limitation of RSDU, Strategic Program the plan to hire an Advisor by May 31, Strategic Program 2014 Advisor has been dropped by DOR Under fiduciary action (i)  BB to engage and mobilize  BB  Audit consultant on-  Complied, audit internal audit consultant board by Jun. 30, consultant has been on- 2014 board since Sept.4, 2014 Under fiduciary action (ii)  WB to support BB with  Planning and  MoF and NPC  Partially complied, development of 5 year Design Branch, endorsed the 5-year endorsing bridge to bridge-by-bridge BB and WB bridge-by-bridge bridge investment plan is investment plan and to investment plan by still in discussion. BMS seek MoF and NPC Jun. 30, 2014. priority list has been endorsement followed to select bridges in FY 2012/13 and 2014/15  Public disclosure of 5 year  Planning  Public disclosure  Not complied, only BMS bridge-by bridge Branch/BB made by Jun. 30, is available on DOR investment plans based on 2014 website BMS including approved annual program Under fiduciary action (iii)  DOR planning branch to  Planning and  Register maintained  Partially complied, filed maintain register of Design Branch by Planning Branch based DOR offices procurement unit chiefs and included in maintain record of and to include this within trimester reports nominated procurement trimester reports  On-going process unit chiefs and compliance monitoring are carried out by CSSEs. Maintaining register at the Planning Branch is yet to be initiated Under fiduciary action (iv)  All outstanding audit  DOR Audit  > 40% by end of FY  Complied, DOR has observations from 2009/10 Committee 2013/14 successfully met to be addressed outstanding audit observation of nearly 43% till FY 2013/14 Annex P-18 Next Step Responsibility Deadline Status Under social and environmental action (i)  DOR/BB implement  BB/GESU  On-going process  Partially complied, revised ESMF  Social and GESU/Social Mobilisers incorporating into bridge environmental assessed safeguard needs Project Implementation measures in of 32 bridges under Cycle (PMC) and ensures currently running 32 urgent major maintenance inclusion of ESMF urgent major running contracts through review/ maintenance however failed to acceptance and compliance contracts incorporate mitigation monitoring by the GESU incorporated by measures fully as most of till release of Defect May 31, 2014 the contracts were near Liability Period (DLP) completion. Certificate  SMs has been monitoring the occupational health and safety measures and child labor related issues at the site  BB and GESU maintain  BB/GESU  BB and GESU  Complied, BB and GESU close coordination for meets every month have been holding effective implementation and minutes the monthly coordination of revised ESMF by decisions meetings regularly. The conducting formal meeting last meeting was held on at least once in a month Nov.6, 2014 with maintaining minutes. Progress status to be included each Trimester Report  GESU to develop  GESU/BB  To be commenced  Partially complied, draft templates for after the templates developed by environmental social engagement of GESU team for (i) assessments reports individual safeguard screening for including IEE and other consultants those bridges not review and compliance requiring IEE,(ii) monthly monitoring reports reporting by SMs, (iii) regular compliance monitoring at site  GESU is working on the development of templates for IEE (simplified version) Under social and environmental action (ii)  BB to allocate dedicated  BB/GESU/DOR  BB allocated budget  Complied, allocated with budget from the share of as per approved authorization to GESU as 5% of budget head 337- Business Plan per approved Business 320-4 with authorization in annually Plan name of Unit Chief, GESU Under social and environmental action (iii)  Social and environmental  GESU  Consultants  Complied, Social Expert consultants to support mobilized by Jun. and Environmental GESU engaged 30, 2014 Expert (individual consultants) mobilized on Sept.17, 2014 Annex P-19 Next Step Responsibility Deadline Status Cross cutting action (i)  DOR to report on  DOR/ Divisions  On-going  Linked to DLI-6 complaints received via  Partially complied GRM and actions taken in  GRM system nationwide trimester reports implementation started from Apr. 16, 2014  System generates customized report of any period including trimester report  DOR initiating actions to address grievances  Inclusion in Trimester report is not done Cross cutting action (ii)  BB to provide toolkit  BB  Toolkit approved  Linked to DLI-4 feedback and hold revision by Jun. 30, 2014  Partially complied, workshop Toolkit is developed and published and e-copy is in final stage of completion by Dec.2014 Disbursement Linked Indicators  BB to procure design  BB  Consultant for  Linked to DLI-2 services of additional 56 design of 19 bridges  Partially achieved, BB urgent major maintenance mobilized by Jun. has published EOI for bridges 30, 2014 hiring Design Consultants for major maintenance bridges  BB to submit dossiers for  DROs, BB  Jun. 30, 2014  Linked to DLI-2 bridges that already  Not complied, BB has undergone minor instructed CSSEs to maintenance collect DLI-2 data from the respective divisions.  BB to complete  BB  Procurement of civil  Linked to DLI-3 agreements of 29 new works completed Complied, procurement bridges under appropriate (including those of civil works completed procurement procedures under design and including in Design and including design/build build option ) by Built (D&B) option contracts option Jun. 30, 2014 Note: next steps for DLIs 4, 5, and 6 included within action plan items Others  BB, GESU and NVC to  BB, GESU, NVC  Draft 3 year budget  Complied, MoPIT/DOR meet and finalize 3 year plan for NVC has already allocated budget plan including developed by Jun. budget based on 3 year TOR 30, 2014 budget plan submitted by NVC. Annex P-20 Next Step Responsibility Deadline Status  Project Support  BB  Engaged  Not complied, PCME & Consultants engaged Procurement and GE have not been Contract engaged yet. Management expert Mobilized till date are: (PCME)and  6 Social Mobilizer Geotechnical  1 Hydrologist Engineer (GE) by  1 Structure Engineer May 31, 2014  6 CSSE  Submission of Dossiers for  BB  Submitted all  Partially complied, 1st DLI verification to NPC Dossiers (20 Year 1 lot of Dossiers submitted for Year 1 retroactive/new during Mar.-2014 has bridges and 19 been verified by NPC and minor maintenance) the Bank is in the process and other eligible of disbursement disbursements to  Compilation of Dossiers NPC by Jun. 30, for 2nd lot of submission 2014 to NPC is in progress Annex P-21 ANNEX G: UPDATE ON PROGRAM DLIS DLI Period 2 targets Status Comments DLIs related to the achievement of PDO Indicator 1&2 DLI-1: Completion of 2150 Envisaged accomplishments  Completed major maintenance of  Maintenance works of 35 maintenance bridges on SRN bridges (≈3445 meters) works of 35 (cumulative metres) running since FY bridges by Feb. 201213/14/15 2015  Completed design  Consultants mobilized for works of design of 56 bridges (≈2000 remaining target metres) in current FY by FY 2014/15  Finalized designs  EOI noticed published for of all 56 bridges consulting services of 60 by Mar., 2015 bridges in Nov. 2014 DLI-2: Completion of 1400 Envisaged accomplishments  Completion of minor maintenance of minor bridges on SRN  19 bridges (≈ 760 metres) to maintenance (cumulative metres) complete in current FY works by  Additional 19 bridges ((≈ 760 divisions needs to metres) to complete from last be verified and FY confirmed as per DLI-2 requirements.  BB needs to mobilized CSSEs and SMs for above activities  BB needs to coordinate with divisions for standard and unified designs in all divisions and to expedite works DLI-3: New bridges 2200 Envisaged accomplishments  11 bridges under built or improved on  Assessing completion data of taken in SRN (cumulative 20 existing backlog bridges of FY2012/13 and metres) last FY (2012/13) have followed  20 existing backlog bridges to 80% BMS priority complete in the current FY list  11 new bridges (≈ 400 metres)  29 bridges under construction since FY undertaken in FY 2012/13 2013/14 and  13 new bridges civil works (≈ failed to follow 500 meters) to be procure in BMS priority list. FY 2013/14  34 bridges under  13 new bridges civil works (≈ taken in F/Y 500 meters) to be procured for 2014/15 have FY 2014/15 followed nearly 90% from BMS priority list Annex P-22 DLI Period 2 targets Status Comments DLIs related to PDO Indicator 3 DLI-4: Strengthened 20  See action plan update  Insignificant performance progress management in bridge  Standard sector (percent works Procedures for complete on schedule) estimating project completion period developed the Bank’s help. The procedures are yet to be used for the estimation of completion periods DLI-5: Improved BMS fully  See action plan update  BMS installed in Bridge Asset operational in 30 25 divisions. Management divisional/ regional  Orientation on offices BIMP completed in all 5 Regions. DLI-6: Increased GRM implemented in  See action plan update  GRM policy effectiveness of the DOR and report approved by institutions responsible disclosed detailing MoPIT and for bridge sector status of complaints translated into management and actions on fraud Nepali. and corruption and  DOR has formally those related to social launched GRM and environmental system nationwide issues on Apr. 16, 2014  A Help/Call Center has been set up in DOR to provide assistance to all DOR cost centers  DOR GRM Procedural Manual is being finalized Annex P-23 ANNEX H: AGREED NEXT STEPS Next Step Responsibility Deadline Comments Project Development Indicator  Complete the baseline  WB End-Mar.,  Baseline data collection, studies 2015 analysis and reporting completed. Action Plan implementation Under technical action (i)  BB updates BMS and  BB  By Sept. 30,  Linked to DLI-5 procures medium-term 2015. contract for BMS software maintenance  BB prepares annual training  BB/Bridge Technical  By May 31,  Linked to DLI-5 plans for SRN bridge related Expert 2015  Annual Training Plans functions incorporating basic will have to be prepared trainings in BMS, CMS, in coordination with GRM, Mobile Monitoring, RSSDU in DOR. Outreach Strategy, QAP/quality control, new bridge technology in designs and construction etc. Under technical action (ii)  Quality Assurance Plan  DOR/BB  Confirmed  Status of QAP implemented by DOR application of implementation to be QAP in reported monthly by divisions and CSSE on their monthly projects by progress report, the end of similarly reported in each month Quarterly Progress through CSSE Report by BB Under fiduciary action (i)  Public disclosure of 3year  Planning Branch/BB  By January bridge-by bridge investment 31, 2015 plans based on BMS  Thereafter to including approved annual be presented program on DOR website as and when updated Under fiduciary action (ii)  DOR planning branch to  Planning and Design  By Dec. 31  To be included status in maintain register of Branch 2014 Quarterly Progress procurement unit chiefs and  Thereafter to Report reports to include this within be updated as trimester reports and when required Under fiduciary action (iii)  All outstanding audit  DOR Audit  > 50% by end  Consider audit observations from 2009/10 to Committee of FY observation target set by be addressed 2014/15 MoPIT for FY 2014/15. Under social and environmental action (i) Annex P-24 Next Step Responsibility Deadline Comments  Completed safeguard  BB/GESU  By Apr. 30, screening of 56 urgent major 2015 maintenance (UMM) bridges and review Condition of Contract documents  Inclusion of safeguard  By May 31, measures in non-urgent 2015 major maintenance of 60 bridges whose EOI has been recently published  Carry out IEE or screening of  On-going till all new crossings from FY Jun. 30, 2015 2012/13/14/15 and review Condition of Contracts  GESU to endorse the Social  On-going and Environment section of dossiers before submission to the NPC  Developed site visit plan for  BB/GESU  Develop  Project social expert GESU’s team in each GESU’s Site plus environmental contract particularly at the Visit Plan by expert prepared site time of (a) start of project (b) Dec. 31, 2014 visit plan and equally before issuing Certificate of  Contiune prepared visit reports Substantial Completion, (c) thereafter including reporting in before issuing Defect QPR and confirmed Liability Certificate including inclusion of issues in final payment. Implemented monthly coordination above plan and report meeting agenda. included in (1) Quarterly Progress Report and (2) issues arise during visits to be well discussed in Coordination meeting  BB conducts formal meeting  BB/GESU  BB and  BIMP Coordinator at least once in a month with GESU meets prepared the meeting GESU for better coordination every month agenda and the  Issues arise during site decisions are visits by GESU’s team minuted to be included in such agenda for management level discussion between GESU and BB  Carry out test run of  GESU/BB  By Dec. 31, templates developed for 2014 safeguard screening for those bridges not requiring IEE Annex P-25 Next Step Responsibility Deadline Comments  Prepare Environmental and  GESU/BB/Consultants  Process to be Social Screening Report; commenced Environmental and Social and continued Assessment, Environmental Management Plan, Social Action Plan for each sub- project  Review of design and  GESU/BB  Process to be contract/bidding documents commenced from social and and continued environmental perspectives  Provide concurrence to the  GESU/BB  Process to be documents prior to tendering commenced to ensure that social and and continued environmental issues are addressed  Conduct monitoring,  GESU/BB  Process to be implementation of mitigation commenced measures and reporting social and continued and environmental status in each trimester report  Provide no objection while  GESU/BB  Process to be issuing defect liability commenced certificate to confirm that no and continued remaining issues linked to social and environment Under social and environmental action (ii) Cross cutting action (i)  Respond to complaints  DOR/ Divisions  On-going  Linked to DLI-6 received and reports actions taken in Quarterly Progress Report Cross cutting action (ii)  DOR Bridge Operation  BB  By Dec. 31,  Linked to DLI-4 Toolkit made available on 2014 DOR website  BB uses an objective  BB  As and when  Linked to DLI-4 method in deriving total required  Implementation status project completion time in to be included in the case of all up-coming Quarterly Progress contracts, including Report maintenance and new construction Disbursement Linked Indicators  Finalize the design of 56  BB  By May 31,  Linked to DLI-2 UMM bridges 2015  A carry–over designs of last FY  Finalize the procurement of  BB  By FY consultants for designs 2014/15 end services of 60 major maintenance bridges Annex P-26 Next Step Responsibility Deadline Comments  Submit dossiers of the  DROs, BB  Dossier  Linked to DLI-2 already completed minor submission to  CSSEs to be mobilized maintenance bridges to NPC NPC by Jun. for assessment of DLI-2 30, 2015 work completed in their respective divisions  Complete agreements of 34  BB  By Jun. 30,  Linked to DLI-3 new crossings (FY 2014/15) 2015  BB uses the objective with contractors including method in the bridges selected under the calculation of the total design/built contract option project completion time. Note: next steps for DLIs 4, 5, and 6 included within action plan items Others  Engage a Procurement and  BB  By Jan 31, BB already engaged the Contract Management Expert 2015 following experts: and a Geotechnical Engineer  6 Social Mobilizer engaged  1 Hydrologist engaged  1 Structure Engineer engaged  6 CSSE engaged  Submit dossiers for DLI  BB  By Jan 15,  BB has projected an verification to NPC for 2015 estimated disbursement tranche 2. figure under 2nd tranche: $10m Annex P-27 ANNEX I: FIELD VISIT NOTES A team of GON and World Bank officials visited two new bridge sites in two districts: Sunsari and Jhapa, Eastern Region under Biratnagar and Damak division road offices on Nov. 18, 2014. A list of participating officials is annexed. The bridge details and the field visit observations are provided below. Bridge Site-1: Bridge No. 10-H008-003 Road Link/ Name Koshi Highway River Name Seuti Khola District Sunsari Bridge is eligible for BIMP (New bridge - DLI-3); contracted on Oct. 20, 2008 and the original schedule completion date was July 12, BIMP Status 2010; the revised completion date was July16, 2014; nearly 90% of works completed at time of visit (Nov.18, 2014) 2x18m (two Bridge Type RCC Bridge Span (m) spans) 88% paid, Designed by Consultants and Final Final Payment Designed and Supervised by Supervised by District Road payment is Amount (NPR) Office, Biratnagar yet to be made. Notes Work Quality Workmanship has been found to be poor as a whole. The Bank’s quality monitoring team has previously reported that the contractor was not aware of QAP. However the supervision team was aware of QAP and had a copy of QAP (unapproved). The supervision team explained difficulties they faced in the application of the QAP with the contractor and in maintaining frequency of tests as per the QAP. Safety  Pedestrian Safety and Footpath: There is no separate provision for pedestrian footpath within the bridge carriageway width. It is advised to make footpath provision as a standard in all future bridges. Hydrological Issues  Waterway It looks there are serious hydrological problems linked to this bridge. It requires an expert hydrological engineer’s advice before attempting any mitigation measures. A detailed study might be required. Contract Management Issues  Weak Contract Management The hydrological problems have been multiplied due the poor construction management. It appears that improper practices in the erection of scaffolding for formworks of the 2 nd span deck might have augmented the hydrological problems. Also slab casting in the rainy season did not help as well. A. Safeguards: A. Environmental Safeguard Soil Erosion Land Slides Annex P-28 Remarks: Drainage Erosion by Drainage Flow Remarks: bank erosion, bed scouring, high risk to bridge Waste Disposal Remarks: Some construction wastes (e.g. bamboo, used cement bags etc.), have been noticed in the river. In addition, wastes, which are not-likely to have been generated by construction process, were also observed in the river. These wastes might have come from the upstream. All the construction waste required to be cleared before concluding the work/contract. Traffic disruption due to material storage and construction activities Remarks: As the traffic is using the existing old bridge there are no traffic movement disruptions. Public/ Workers Safety Remarks: One of the laborers involved in the construction period reported that workers safety was not ensured during the construction period. Apart from safety jackets the laborers were not given safety related gears. Workers Insurance Remarks: It was reported that the workers involved in the construction period had insurance. The provision of workers’ insurance was also verified in BoQ document during previous site visit (sept 7, 2014). Minor River Training Works Remarks: Protection of Forest Remarks: The approach road and bridge site is located in the forest. About 68 numbers of trees may have felled as reported by the DOR Divisional Engineer of the Eastern Divisional Office. The divisional office has already initiated the process to get permission from Ministry of Forest for clearing the trees along the Right of Way (ROW) of the approach road on both sides. Forest Office has already completed tree marking stamping. Protection of Wildlife Remarks: This is a forest area where wildlife is likely to be found. However, the road has been in existence from a long time. Wildlife is occasionally seen near the road and bridge site. However, workers were prohibited from hunting wildlife and birds and forest authority or other sources have not reported hunting by the workforce. Protection of Aquatic Life Remarks: Seuti Khola is a seasonal river and there is no significant water flow during the dry seasons. Therefore, any important/protected aquatic life/fish are unlikely to be affected during the construction period. Slope Protection on Embankment Area Remarks: There is no high embankment in the bridge. There are natural plants and trees in the adjoining areas of the bridge. River training works are needed. The DRO technical team is considering different options in this regard. Proper Signboard in Proper Location Annex P-29 Remarks: Management of Borrow Pit/Quarries Remarks: The Divisional Engineer mentioned that Seuti river had been a source for gravels, stone and sand. Flash floods also bring a lot of sand and aggregates. No sign of quarry sites has been observed during the visit. The extraction of excessive materials from the river beds during construction of the bridge might have aggravated the scour near the pier. Landscape Remarks: A huge drop of level has been observed right after the existing bridge. This might be due to the extraction of construction materials from this site and excessive rainy season water flow from upstream. The cut-off wall and launching apron of the existing bridge have been washed away. There is also a slope cutting related to protection work in the north western side of the bridge. Dust/Air Pollution Remarks: As the major construction work is completed there is no air/ dust pollution in the bridge site and it is like during pre-construction status. Noise/ Vibration Remarks: There is no noise/vibration in the bridge site due to construction activities as major construction activities has already been completed. However, there is noise pollution due to vehicular movement as the location in along the highway in the forest area. Impact on Adjunct Area Remarks: Lack of proper management for quarry site and not protection of high embankment area and sweeping in of waste materials from the upstream area likely to increase soil erosion, landslides and pollution not only in the bridge area also in the downstream forest area causing multiple impacts on the nearby flora and faunas. Disruption to Public Utilities Remarks: A drinking water pipe (underground) to Dharan city has crossed the river at a distance of approximately 100 meter upstream / north east side of the bridge. Divisional Road Office is planning to demolish the old bridge. Utility management of the water supply and DRO are discussing shifting of the water pipe approximately 500 m upstream from the bridge site. While shifting the water supply pipe, it is suggested to have close coordination with the agencies, and to ensure that there is no disruption to the water supply. Public Awareness Remarks: B. Social Issues Land Acquisition: No land acquisition was required as the construction of bridge as well as approach road is being carried out in government land along the forest area. Annex P-30 Old and new bridges of Seuti river Check dam constructed in Seuti river for flood control BIMP review team member inspecting the Seuti bridge Annex P-31 New Bridge site 2: Bridge No. 04-H001-033 Road Link/ Name Mahendra Rajmarga River Name Geuriya River Bridge District Jhapa This bridge is eligible for BIMP financing (new bridge; DLI-3). It was contracted BIMP Status on June 23, 2011; scheduled completion date was June 22, 2013; revised completion date was May 10, 2014; the bridge is nearly completed Bridge Type RCC T-Beam Span (m) 1x20.6m Final payments Consultants and Supervised Final Payment Amount Bridge Designed by are yet to be by Division, Damak (NPR) made Notes Work Quality The workmanship appeared to be better than Seuti Khola Bridge. Placing of expansion joints between the decks slabs requires to be corrected. Safety  Road and Pedestrian Safety: Design of footpaths needs revisiting for safety of pedestrians. Inadequate traffic signs at bridge approaches have been noticed. Hydrological Issues  Left over dismantled concrete blocks and Hume pipes in the downstream of the bridge have been noticed. These have been obstructing the natural water flows causing noticeable scour on the river bed. It is advised to remove those concrete blocks while dismantling the diversion access before monsoon. A. Safeguards: A. Environmental Safeguard Soil Erosion Land Slides Remarks: Located in plain Terai area. No landslide and soil erosion has been noticed. Drainage Erosion by Drainage Flow Remarks: Though the river seems to be small and seasonal small scale drainage erosion/ cutting was observed in the river banks due to increase in water discharge during rainy seasons. Waste Disposal Not Applicable Remarks: Old pipes, concrete blocks and other construction wastes have been observed thrown in the river in the upstream and downstream of the bridge. These need to be cleared before concluding the contract. Traffic disruption due to material storage and construction activities Remarks: Completed major works except slope protection in the embankment area of the bridge approach. No material storage noticed. Traffic flow already resumed. During construction, however, traffic was diverted through a diversion. Public/ Workers Safety Annex P-32 Remarks: As noted above, most of the construction is over. Workers Insurance Remarks: No workers at site now. Minor River Training Works Remarks: Gabion work was observed done towards southern part of the bridge for the protection of land in adjoining area and bridge approach Protection of Forest Remarks: There is no forest in the bridge site. Protection of Wildlife Remarks: No forest and wildlife area Protection of Aquatic Life Remarks: The stream is a small one, and no important aquatic life is known or expected to exist. Slope Protection on Embankment Area √ Remarks: There seems need of some protection work such as plantation of grass/turfing in the slope area at connecting point of bridge approach and deck. Proper Signboard in Proper Location Remarks: No signage has been noticed. Management of Borrow Pit/Quarries Remarks: No borrow pit or quarry site has been observed in and around the bridge site. Landscape Remarks: Dust/Air Pollution Remarks: Not applicable now as construction is over. No settlements or sensitive receiver near the bridge. Noise/ Vibration Remarks: Not applicable now as construction is over and pre-construction status resumed. (Current noise/ vibration is as it was before the rehabilitation of the bridge). No settlement or sensitive receiver near the bridge. Impact on Adjunct Area Remarks: See above for waste disposal related issue. Waste disposal is aesthetically bad as well as may affect the stream integrity (although no known protected aquatic life is likely to exist). See following paragraph for issues related to cultural sites and drinking water lines. Disruption to Public Utilities and cultural site: Remarks: (i) During the site visit a drinking water pipe was observed existing across the Geuriya Khola (river). Divisional Road Office (DRO) need to consult local people to assess if they are having any problem in the water supply due to bridge construction activities. Any problem, if exist, needs to be addressed; (ii) The diversion/bypass road towards the north side of the bridge constructed during the Annex P-33 implementation phase has not yet been cleared/reinstated. DRO need to clear the diversion road in consultation with local people. While doing so, people in local area using the land adjoining to bypass road as graveyard for burying dead bodies also need to be consulted to ensure they also don’t have any problem due to construction and clearing of the diversion/bypass road. Public Awareness Remarks: B. Social Issues Land Acquisition: The construction of bridge is being carried out in existing Mahindra Raj Marg (East-West Highway) – within the right-of-way. According to the DRO, the diversion/ bypass road is located in the barren public/government land. So, no acquisition of land was required. Construction materials dumped in Geuriya river Geuriya bridge Diversion road in public land constructed during bridge project implementation phase and the public land also being used for burying dead bodies Annex P-34 Field Visit List of Participants: Name of Participants Position/Organization Mr. Saroj Pradhan DDG Bridge Branch, Department of Roads (DOR) Mr. Ramchandra Raut SDE, Eastern Division Road Office No.3, Biratnagar, DOR Mr. Farhad Ahmed TTL, World Bank Mr. Drona Ghimire Environmental Specialist, World Bank Mr. Vishnu Shrestha Consultant, World Bank Mr. Sachin Upadhyaya Consultant, World Bank Mr. Shanker Thakur Consultant (Construction Supervision Support Engineer), DOR Mr. Rajan Shrestha Consultant (Environmental Expert), DOR Mr. Prabaker Pandit Consultant (Social Expert), DOR Annex P-35