Grant Implementation Manual: Indonesia, Rice Fortification for the ...

Grant Implementation Manual

The grant implementation manual is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project changes. This grant implementation manual (GIM) shall be read along with the Grant Assistance Report. This GIM incorporates agreements reached between SESS and Executing Agency as of October 2010.

Project Number: 41059 Grant Number: 9132 Revised October 2010

Grant Assistance Republic of Indonesia: Rice Fortification for the Poor (Financed by the Japan Fund for Poverty Reduction)

TABLE OF CONTENTS Page MAP i LIST OF ADDRESSES AND PERSONNEL CONCERNED ii CURRENCY EQUIVALENTS iv ABBREVIATIONS iv GRANT PROCESSING HISTORY v I. GRANT DESCRIPTION 1

A. Grant Area and Location 1 B. Grant Objectives 1 C. Grant Components 1

II. COST ESTIMATES, FINANCING PLAN & ALLOCATION OF LOAN 5 PROCEEDS III. IMPLEMENTATION ARRANGEMENTS 5 A. Grant Organization and Management 5 B. Coordination 7 IV. IMPLEMENTATION SCHEDULE 7 V. PROCUREMENT 7 VI. CONSULTING SERVICES 7 VII. DISBURSEMENT PROCEDURES 8 VIII. REPORTING REQUIREMENTS 8

Reports 8 Audited Grant Accounts 9 Benefit Monitoring Evaluation 9 IX. GRANT MONITORING AND EVALUATION 9 A. Contract Awards/Commitments and Disbursement Projections 9 B. Grant Reviews 10 C. Mid-term Review 10 D. Implementation Completion Memorandum (ICM) 10 X. COVENANTS 10 XI. ADB ANTICORRUPTION POLICY 11

APPENDIXES 1. Design and Monitoring Framework 12 2. Summary Cost Table 14 3. Detailed Cost Estimates 15 4. Fund Flow Arrangement 19 5. Organizational Structure 21 6. Implementation Schedule 22 7. 3-Year Procurement Plan 26 8. Procurement Method 29 9. Terms of Reference for Consulting Services 32 10. Selection Methods for Consulting Services 43 11. Disbursement Procedures 45 12. Instructions For Preparing Withdrawal Application For Imprest Fund 47 13. Withdrawal Application Form For Imprest Fund 49 14. Statement of Expenditures (SOE) Form 50 15. Decree of Director General of Treasury No. Per- 28/PB/2010 55 16. Reporting Requirement 64 17. Audit Requirement and Guidelines 71 18. Performance Monitoring System Guidelines 75 19. JFPR Implementation Completion Memorandum (ICM) 76 20. Signed Letter of Agreement 82 21. List of ADB Reference Materials 87 22. Bibliography 88 23. Anemia Rates in Indonesia (Riskesdas 2007) 89

Map

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LIST OF ADDRESSES AND PERSONNEL CONCERNED A. ADB Staff Social Sectors Division (SESS) : Ms. Shireen Lateef Southeast Asia Department (SERD) Director Fax: (632) 636 2228; (632) 636 2408 : Ms. Barbara Lochmann Senior Social Sector Specialist Tel. (632) 632 6705 E-mail: [email protected] : Ms. Ruchel Marie Grace R. Roque Assistant Project Analyst Tel. (632) 632 6341 E-mail: [email protected] : Ms. Joji M. Bautista Administrative Assistant Tel. (632) 632 6705 E-mail: [email protected] Loan Administration Division (CTLA-6) : Hyun Chol Park Controller's Department Financial Control Specialist Tel. (632) 632 1993 E-mail: [email protected] : Ms. Purificacion L. Liwanag Control Officer Tel. No. (632) 632 6780 E-mail: [email protected] Address : Asian Development Bank P.O. Box 789 0980 Manila, Philippines 6 ADB Avenue Mandaluyong City 0401 Metro Manila, Philippines

Website : http://www.adb.org B. EXECUTING AGENCY & IMPLEMENTING AGENCY Executing Agency : National Development Planning Agency

(BAPPENAS) Ms. Nina Sardjunani Deputy Chairman for Human Resources Development and Cultural Affairs Address: Jl. Taman Suropati No. 2 Jakarta 10310

Tel. No.: (021) 3928585 Fax No.: (021) 3156156

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Implementing Agency : Directorate of Health and Community Nutrition (DHCN), Deputy Ministry for Human Resources Development and Cultural Affairs, BAPPENAS DR. Arum Atmawikarta, SKM, MPH Director for Health and Community Nutrition Address: Jl. Taman Suropati No. 2 Jakarta 10310

Tel. No.: (62-21) 31936207, 3905650 ext. 374 Fax No.: (62-21) 3926603, 3145374

Center for Food Consumption and Food Safety

(CFCFS), Agency for Food Security, Ministry of Agriculture Ir. Mulyono Machmur, MS Head of Center for Food Consumption and Food Safety Address: Jl. Harsono RM No. 3, E Building 6th,

Ragunan, Jakarta 12550 Tel. No.: (62-21) 7804406

Fax No.: (62-21) 7804406

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CURRENCY EQUIVALENTS (as of 1 January 2009)

Currency Unit - rupiah (Rp) Rp1.00 = $0.0000850 $1.00 = Rp11,770.00

ABBREVIATIONS

ADB – Asian Development Bank BAPPENAS – Badan Perencanaan dan Pembangunan Nasional (National

Development Planning Agency) BPOM – Badan Pengawas Obat dan Makanan (National Agency for Drug and

Food Control) BPKP - Badan Pengawas Keuangan dan Pembangunan (Agency for

Development Finance Auditors) CFCFS

DHCN - –

Center for Food Consumption and Food Safety, Ministry of AgricultureDirectorate of Health and Community Nutrition, Bappenas

EA – Executing Agency EAR – Estimated Average Requirement IA – Implementing Agency IDA – Iron-deficiency Anemia IPB – Institut Pertanian Bogor (Bogor Agricultural University) JFPR – Japan Fund for Poverty Reduction KFI – Koalisi Fortifikasi Indonesia (Coalition for Fortification in Indonesia) Kg

MI – -

Kilogram Micronutrient Initiative

MCOP MOA MOF

– - -

Ministry Coordinator of Prosperity Ministry of Agriculture Ministry of Finance

MOH – Ministry of Health MOHA – Ministry of Home Affairs NGO – Non-government Organization PERUMBULOG – Perusahaan Umum BULOG (National Logistic Agency) PMU – Project Management Unit RASKIN – Beras Untuk Keluarga Miskin (Subsidized Rice Program for The Poor) SEAMEO-

TROPMED – Southeast Asia Ministers of Education Organization-Tropical

Medicine SRC

SUSENAS – -

Staff Review Committee Survei Sosial Ekonomi Nasional (National Social Economic Survey)

TA – Technical Assistance WHO – World Health Organization

NOTES

In this report, "$" refers to US dollars.

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GRANT PROCESSING HISTORY

1. SRC : 16 July 2008 2. Submission of Application : 1 September 2008 3. Appraisal Mission : 14-21 September 2008 4. Approval of Government of Japan : 1 December 2008 5. Approval of ADB : 20 March 2009 6. Signing of Letter of Agreement : 31 December 2009 7. Closing Date of Grant : 31 December 2012

This Manual was prepared by Barbara Lochmann (Team Leader), Angela Francesca O. Bernaldo (Assistant Project Analyst) and

Ruchel Marie Grace R. Roque (Assistant Project Analyst) Southeast Asia Department

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I. GRANT DESCRIPTION

A. Grant Area and Location

1. The Project will be implemented in the districts of Karawang and Bekasi, in the province of West Java, Indonesia.

B. Grant Objectives 2. The goal of the Project is prevention and reduction of iron-deficiency anemia (IDA) among the poor in Indonesia. Its purpose is to assess the feasibility, cost, and impact of providing iron-fortified rice under the world's largest subsidized rice program for the poor (RASKIN). 3. The specific objectives are to (i) identify the most acceptable and cost-effective rice fortification technologies; (ii) build the capacity of rice mills contracted by PERUM BULOG to blend fortified rice concentrate (rice premix) with RASKIN rice; (iii) advocate support for the program with decision makers and raise awareness of the benefits of fortified rice among RASKIN recipients, local government at project location, national decision makers, and the private sector; (iv) evaluate the impact of rice fortification; and (v) identify strategies for the sustainable expansion of rice fortification under the RASKIN program. 4. Expected Key Performance Indicators The performance and outputs (see Design and Monitoring Framework on appendix 1) of the Project will be monitored and evaluated with the following indicators:

(i) capacity to produce fortified rice built at six rice mills; (ii) 24,000 metric tons of quality assured iron-fortified rice delivered to approx.

800,000 people in two project areas over 12 months; (iii) daily intake of iron of 80% target beneficiaries increased to 30%– 40% of the

World Health Organization (WHO) estimated average requirement (EAR) in the project areas;

(iv) reduction of anemia prevalence (hemoglobin and serum ferritin levels) at least 20% among RASKIN recipients from baseline; and financing and policy recommendations prepared for the expansion of rice fortification.

C. Grant Components

5. The description of the components, monitorable deliverable/outcomes, and implementation table are as follows: Component A Component Name Identify Appropriate Technology for Rice Fortification Cost ($) 237,000 Component Description Over the first 10 months of project implementation, the aim is

to develop detailed technical guidelines for rice fortification for the RASKIN program, a subsidized rice program for the poor. Activities in this component will define and build stakeholder consensus on the most appropriate fortification technologies. Specifically, they will (i) evaluate options for an iron fortificant compound including projected costs, efficacy, and consumer acceptance; (ii) define a proposed fortification

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level for RASKIN rice, sufficient to provide 30%–40% of the WHO’s EAR for iron to RASKIN recipients; (iii) identify the capacity-building needs for the most cost-effective domestic production of rice premix; (iv) assess the training and equipment needs of rice mills supplying the RASKIN program; (v) reach a formal agreement for technical support with a technology partner experienced in the hot extrusion technology for rice fortification; (vi) build awareness and consensus among partners for rice fortification including PERUM BULOG, Ministry of Agriculture (MOA,) Ministry of Industry (MOI), National Agency for Drug and Food Control(BPOM), and Ministry of Health (MOH); (vii) establish the regulatory basis for iron fortification in the RASKIN program; and (viii) publish and disseminate technical guidelines for rice fortification in Indonesia. A major focus of these activities will be assessing the consumer acceptability of ferrous sulfate as an iron-fortificant compound. Ferrous sulfate offers superior bioavailability and is available at about half the cost of alternative iron compounds used in rice fortification.

Monitorable Deliverables/Outputs

(i) Appropriate rice fortification technology identified and implemented;

(ii) Capacity-building needs assessed and training plan developed for rice mills supplying RASKIN rice in the project areas;

(iii) Technical guidelines developed for rice fortification; (iv) Consumer acceptability of fortified rice;and (v) Report on efficacy study.

Implementation of Major Activities: Number of months for grant activities

10 months

Component B Component Name Capacity Building, Production and Distribution of

Fortified Rice Cost ($) 725,200 Component Description The aim of this component is to build domestic capacity to

produce fortified rice concentrate (premix) and provide equipment and training to six mills supplying the RASKIN program in the two pilot areas over the next 20 months of project implementation. There will be three main activities in this component. First, the Project will work with a local food company or institution experienced in extrusion processing such as in pasta, infant food, or snack food production. In cooperation with the identified technology partner, the Project will provide appropriate equipment, training, and quality assurance guidelines. An estimated 120–160 metric tons of rice premix (the volume will depend on the specific technology selected in component A) will be produced. Second, six mills three owned by PERUM BULOG and three contracted rice mills) in the pilot areas supplying rice to the RASKIN program will be equipped to fortify rice and their staff trained in the fortification technology. PERUM BULOG

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will offer these mills contract incentives to compensate for their added production costs and opportunity costs in supplying the pilot program and to guarantee timely milling, blending, and delivery of about 24,000 metric tons of fortified rice for 12 months. While incremental operational costs will be provided by the Project, incentives to guarantee the supply of fortified rice will be considered government counterpart contribution. The production of iron-fortified rice in these mills will be subjected to quality assurance procedures at the district level by BULOG and relevant agencies including BPOM. Third, in the two project areas rice warehouses will identify appropriate inventory, storage, and delivery processes including special tags for bags of fortified rice. BULOG will oversee the delivery of about 14,000 metric tons of fortified rice to 188 villages covering an estimated 117,000 households in the rice-producing areas. An additional 10,000 metric tons of fortified rice will be shipped from the mills in the pilot area to a nonproducing district with 147 villages and a projected 83,000 households. Transport costs incurred will be considered part of the government counterpart contribution. Because transport costs will be borne by the RASKIN program, which does not own or operate its own vehicles, it will be important to identify a non-rice-producing district that is now being supplied from mills in the pilot area so that the transport costs do not add significantly to current transport costs. The villages selected must meet the following criteria: (i) committed local governments, (ii) large number of RASKIN recipients, and (iii) history of regular and full RASKIN distributions.


(i) Feasibility of rice premix assessed; (ii) Feasibility of rice fortification assessed; (iii) Production of rice fortification established; (iv) Quality assurance guidelines developed for rice

fortification;and (v) Costs and benefits of rice fortification assessed.


20 months

Component C Component Name Advocacy, Monitoring and Evaluation Cost ($) 390,000 Component Description The aim of this component is to create awareness of the

benefits of iron-fortified rice among decision makers in the national and local governments, and among RASKIN recipient households in the project areas. Throughout project implementation, advocacy will be carried out with the national and local governments, and the public and private sectors. Advocacy will be directed at village leaders in about 335 villages supplied with iron-fortified rice to ensure their participation in the program. RASKIN recipients will be informed through public education about the adverse affects of iron deficiency anemia and the benefits of consuming iron

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fortified rice. Through extensive monitoring and evaluation, data on health impact, cost-effectiveness, and consumer awareness and perception will be collected and analyzed. This process will include baseline and post intervention biological assessment as well as consumer research and behavior change communication. The data will be used in analyzing costs and benefits, assessing sustainability, and determining evidence-based regulatory changes needed to facilitate the adoption of iron-fortified rice; which will be summarized in a policy paper developed by a third party for the project based on data collected during the project. Further, specific recommendations for expanding rice fortification in the RASKIN program will be prepared with the stakeholders, and disseminated at workshops and consultation meetings with the public and private sectors.


(i) Public awareness and information on the benefits of consuming fortified rice increased;

(ii) Report on effectiveness study to compare baseline and endline for policy development;

(iii) Strategy developed for the expansion of rice fortification; and

(iv) At least one operation research activity carried out. 1) Baseline and endline survey and evaluation conducted; (v) Biological impact assessed


30 months

Component D Component Name Grant Management, Monitoring and Audit Cost ($) 379,000 Component Description This component will support the operations of a project

management unit (PMU). The PMU will be established in the Directorate of Health and Community Nutrition of BAPPENAS and will be responsible for (i) overseeing planning, administration, financing, procurement, training activities and coordinating with relevant stakeholders and the Asian Development Bank (ADB); and (ii) coordinating activities among local implementing partners including the rice mills, the PERUM BULOG warehouse, local governments, village leaders, community-based organizations, and other relevant project partners in the districts. This component will include inception and midterm reviews, consultations, and a national roundtable to discuss and disseminate the findings, analyses, and recommendations of the Project.


(i) PMU established (ii) Midterm and final evaluation reports prepared; (iii) Three external audits conducted.and (iv) Two national roundtable meetings conducted.


30 months

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II. COST ESTIMATES, FINANCING PLAN & ALLOCATION OF LOAN

PROCEEDS 6. The financing plan and categories, amounts, and percentage of expenditure are shown in the table below:

Table 1: Financing Plan

Funding Source Amount ($)

Japan Fund for Poverty Reduction 2,000,000

Government 220,340

Other Sources (Please identify) 0

Total 2,220,340

Table 2: Grant Categories of Expenditure, Amounts, and Percentage of Expenditures

Category Amount of Grant Allocated ($)

Percentage of Expenditures

1. Equipment and Supplies 725,200 36,3

2. Training, Workshops, Seminars 226,000 11,3

3. Consulting Services 272,000 13,6

4. Management, Monitoring and Evaluation

192,000 9,6

5. Other Project Inputs 316,000 15,8

6. Contingencies 268,800 13,4

TOTAL 2,000,000 100

Incremental Cost 60,000 7. Please refer to Appendix 2 for the summary of project costs, Appendix 3 for detailed cost estimates, and Appendix 4 for outline of fund flow arrangements.

III. IMPLEMENTATION ARRANGEMENTS A. Grant Organization and Management 8. The Executing Agency (EA) will be the National Development Planning Agency (BAPPENAS) cq. Deputy Ministry for Human Resources Development and Cultural Affairs, as it is responsible for national food and nutrition policies. It will provide overall strategy and policy guidance for the Project. There will be two implementing agencies, BAPPENAS Directorate of Health and Community Nutrition (DHCN), Deputy Ministry for Human Resources Development and Cultural Affairs and MOA Center for Food Consumption and Food Safety (CFCFS), Agency for Food Security. DHCN will administer and all policy related activities with local government and ADB and will work in close cooperation with BULOG, MOH, MOI, MOA, MOHA, and MCOP. CFCFS will take responsibility of the procurement of equipment, premix, and materials for the fortification of RASKIN with iron. 9. A project steering committee, chaired by BAPPENAS Deputy Minister for Human Resources and Cultural Affairs as Project Director, consisting of representatives from MOA,

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MOH, MOI, Badan POM, MOHA, MCOP, and MOF. The Steering Committee will meet twice each year to discuss the progress of the Project, and to resolve various problems that arise in the implementation of the project. 10. In order to implement this project DHCN and CFCFS will be assisted by a Project Management Unit (PMU). The PMU, to be established in BAPPENAS and responsible to project manager, will oversee the technical and administrative aspects of project management. It will be responsible for overall planning, administration, financing, procurement, training, accounting, and disbursement, and will coordinate between the central and local governments and between the Government, the contractors, and ADB. The PMU will have a full-time executive secretary. The project will be supported by three staff with expertise in: (1) finance and grant administration; (2) monitoring and evaluation; (3) procurement. These consultants will be supervised closely by the project manager, the Director of DHCN. 11. A Technical Team in BAPPENAS will supervise the implementation of this project. The head of this team will be the Director for Health and Community Nutrition, who will be assisted by Director for Food and Agriculture, and six team members. Support for activities in BAPPENAS will be supported by the Budget of the Directorate of Health and Community Nutrition. Please see appendix 5 for the Project Management Structure. 12. In MOA, the Head of Center for Food Consumption and Food Safety will function as a project coordinator assisted by (i) the Head of the Food Consumption Division as the project implementation coordinator; (ii) an executive secretary that will help coordinate the relationship between MOA and BAPPENAS; and (iii) six project staff. Support for the MOA will be based on the budget of the Food Security section. 13. The implementing agencies and PMU will be assisted by two technical advisory NGOs with experience in food fortification: Koalisi Fortification Indonesia (KFI), and Micronutrient Initiative (MI). These NGOs will assist on technical details and in identification of fortification technology, dosage of fortificant, and indentification of the technology partner that will assist in the development of capacity (or procurement) of the premix to be mixed into the RASKIN at the rice mills. 14. The implementing agencies and PMU will also be assisted by four consultants with expertise in: 1) Rice fortication 2) Quality assurance, 3) Social Marketing 4) Legislation, regulation and standards. 15. BULOG will be a third party to the implementation of this project that will contract with MOA. Within the operationalizing BULOG will be responsible for field operations, and the Sub Division Regional (Subdivre) Karawang will manage and take responsibility for the production and distribution for the RASKIN rice that has been fortified.

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B. Coordination 16. The World Bank has no project in the nutrition or food fortification sector at present but supports the MOH in sector work on decentralization including nutrition. Neither the Japan International Cooperation Agency (JICA) nor the Japan Bank for International Cooperation (JBIC) is involved in the nutrition sector. The World Food Program (WFP) is very interested in the results of the pilot project, since it provides rice as part of its “food for work” programs. In the area of food fortification, the United Nations Children’s Fund (UNICEF) is directing its efforts at salt iodization, and has recently completed a “landscape analysis”. The scope and implementation of the proposed Project was discussed with the Embassy of Japan in Jakarta. As requested by the embassy, the mission leader confirmed on behalf of the Asian Development Bank (ADB) that no other organizations in Indonesia were financing such a pilot rice fortification project. The signed memorandum of understanding was shared with the embassy. Implementation of this project requires close coordination among BAPPENAS, MOA, PERUM BULOG, MOH, MOI, MOHA, MCOP, BPOM, research institutions, the food industry, and civil society. The involvement of the Ministry of Industry will be crucial as the ministry is responsible for technology approval and standard setting. The relevant agencies, local government, NGOs, and local religious leaders will participate in the development of locally relevant advocacy programs. Rice fortification will succeed only if women are willing to feed fortified rice to their families and especially their children. Consumer acceptance trials and advocacy are at the core of the program. The trials are needed to develop a product suited to local rice preparation methods and taste. Women who are RASKIN recipients will be involved in the trials so that the most acceptable and appealing style is developed. The fortification advocacy program must be easily understood and informative, and must address women’s concerns about product safety and adherence to religious dietary laws.

IV. IMPLEMENTATION SCHEDULE 17. The project is expected to be implemented over 3 years commencing with the signing of the Letter of Agreement on 31 December 2009 to 31 December 2012. The implementation schedule in Appendix 6 indicates the anticipated completion of project activities envisaged within the project period.

V. PROCUREMENT 18. All procurement under the Project will be conducted according to ADB’s Procurement Guidelines (2007, as amended from time to time). Consultants will be hired according to ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). Appendix 7 presents the Procurement Plan and Appendix 8 outlines the procurement method for equipment and fortification materials.

VI. CONSULTING SERVICES 19. The Project will require 5 person-months of international and 10 person-months of national consulting services. The consultants, with expertise in food fortification, milling and quality assurance, legislation, and social marketing, will be hired individually by ADB according to its Guidelines on the Use of Consultants (2007, as amended from time to time). Consulting service requirements, terms of reference for the consultants and selection methods are in Appendix 9 and 10. 20. KFI will provide overall technical advice to the Project and will be responsible for the development of technical guidelines. Operations research will be contracted to universities

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like IPB and University of Indonesia–SEAMEO1. The Micronutrient Initiative has confirmed its readiness to support the pilot project with $60,000, especially for technology transfer and advocacy.2 For the implementation of component 1, the EA and IA will jointly select an appropriate technology partner at project inception. The following technology partners have indicated an interest in participating in the pilot project: the Food and Nutrition Research Institute (Philippines), Buhler-DSM (People’s Republic of China), PATH (US), and ILSI (Japan).

VII. DISBURSEMENT PROCEDURES 21. Funds will be disbursed under the terms of a contractual arrangement with BAPPENAS, which will maintain an imprest account at a bank acceptable to the Asian Development Bank (ADB), for that purpose. The imprest account will be established, managed, replenished, and liquidated according to ADB’s Loan Disbursement Handbook (2007, as amended from time to time) and detailed arrangements agreed on between the Government and ADB. Total advances should not exceed ADB’s estimated share of eligible project expenditures to be financed through the imprest account for the next 6 months or 10% of the grant, whichever is lower. The Executing Agency may request an initial advance from ADB on the basis of approved contracts and planned expenditures for the first 6 months of the Project that are to be paid through the imprest account (see appendix 11). The initial advance, in any event, should not exceed the approved ceiling. The statement-of-expenditure (SOE) procedure will apply to all payments and transactions under $5,000 to speed up project implementation. 22. Interest earned on the JFPR imprest account can be used for the Project subject to ADB’s approval, within the approved total amount of the JFPR grant. Upon the completion of the Project and before the JFPR account is closed, any unused interest should be returned to the JFPR account maintained at ADB. If the remittance fee and other bank charges are higher than the amount of interest earned, there will be no need to return such interest to the JFPR account maintained at ADB. 23. Disbursement procedures are in Appendix 11 and the instructions for preparing withdrawal applications are in Appendix 12. , Withdrawal Application, SOE forms and other supporting documents are in Appendices 13 and 14. The Decree of Director General of Treasury No. 28/PB/2010 (“Perdirjen Perbendaharaan No. 28/PB/2010 tentang Petunjuk Pelaksanaan Penyaluran dan Pencairan Dana Hibah ADB No. 9132-INO”) for the establishment of the imprest account is shown in Appendix 15.

VIII. REPORTING REQUIREMENTS 24. Reports. The PMU will compile quarterly progress reports on the basis of inputs from the project and submit comprehensive semiannual progress reports to ADB. The PMU will also prepare and submit an annual project review report, including a poverty impact assessment. A final report will be submitted within 2 months of project completion. 25. The reports will further describe and evaluate the various activities conducted during the period, financial and physical accomplishments, as well as Project impacts and

1 The Coalition for Fortification in Indonesia provides technical advice on all related food fortification strategies and

projects in Indonesia. It has successfully supported the implementation of JFPR grant assistance for Enriching Lives of the Urban Poor through Food Fortification.

2 The Micronutrient Initiative has substantial experience in rice fortification.

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recommended solutions to address key problems in implementation. Reporting requirements and suggested quarterly progress report format are in Appendix 16. 26. Audited Grant Accounts. BAPPENAS, DHCN and CFCFS will maintain separate accounts for all project components financed by the JFPR and the Government, and have them audited by an independent auditor i.e Badan Pengawasan Keuangan dan Pembangunan (BPKP); Agency of Development Finance Auditors; that has adequate knowledge and experience in international accounting process and is acceptable to ADB. DHCN will submit the audited project account and the auditor’s report to ADB within 6 months after the end of each fiscal year. ADB will finance, through the JFPR project, annual audits by an independent audit company acceptable to ADB. Audit reports will include a separate opinion on the use of the Imprest Account and Statement of Expenditure procedure. Audit procedures, guidelines for the preparation of the audit report and guidelines for preparing the auditor’s opinion are provided in Appendix 17. 27. Benefit and Monitoring Evaluation. DHCN will prepare a monitoring and evaluation framework and produce quarterly monitoring reviews based on the following key performance indicators:

Key Performance Indicator Reporting Mechanism Plan and Timetable for Monitoring and Evaluation

Daily intake of iron 80% target beneficiaries increased to 30-40% WHO-EAR in the project areas;

Monitoring reports

Quarterly, semiannual and annual monitoring reports

24,000 metric tons of quality assured iron-fortified rice delivered

Monitoring report Quarterly, semiannual and annual monitoring reports

Reduction of anemia prevalence (hemoglobin) at least 20% among RASKIN recipients from baseline

Research study report monitoring reports based and end line report

Efficacy study repot Pre intervention and post intervention

Please see Appendix 18 for Performance Monitoring System Guidelines.

IX. GRANT MONITORING AND EVALUATION

A. Contract Awards/Commitments and Disbursement Projections 28. Projected commitments and disbursements are shown below:

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Quarterly Contract Awards Projections (in $000)

Fiscal Year Q1 Q2 Q3 Q4

Annual Totals

2010 - - 54,200 178,700 232,900 2011 73,450 563,900 548,790 132,700 1,318,840 2012 42,450 115,700 82,450 159,200 399,800

Contingency 268,800 Total 2,220,340

Quarterly Disbursement Projections Including Contingency (in $) Fiscal Year Q1 Q2 Q3 Q4

Annual Totals

2010 - - 45,200 167,200 212,400 2011 64,200 556,400 409,200 125,200 1,155,000 2012 33,200 108,200 73,200 149,200 363,800


B. Grant Reviews 29. ADB and BAPPENAS will jointly undertake reviews of the Project at least twice a year. The reviews will assess progress, identify issues and constraints, and determine necessary remedial actions and adjustment. C. Mid-term Review 30. A midterm review will be conducted at 1.5 years of implementation. The midterm review will examine the scope, design, and implementation; identify any adjustments required; assess progress of project implementation against performance indicators; and recommend changes in the design or implementation arrangements, if warranted. D. Implementation Completion Memorandum (ICM) 31. The PMU will provide an implementation completion memorandum to ADB within 3 months of physical completion of the JFPR Project. All reports will comprise an assessment of the project impact, and outputs, project performance monitoring and evaluation, as well as suggestions for improving project implementation. The format and instructions in preparing the ICM are in Appendix 19.

X. COVENANTS

32. The Government shall carry out the JFPR Project in accordance with the arrangements described in the Letter of Agreement as shown in Appendix 20

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XI. ADB ANTICORRUPTION POLICY 33. The Government has been advised of ADB’s anticorruption policy, particularly the provisions in the recently revised Guidelines for Procurement under Asian Development Loans and Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers, requiring governments as well as bidders, suppliers, contractors, and/or consultants to observe the highest standards of ethics during procurement and execution of the contracts financed under the Project. 34. The ADB Office of the General Auditor is the point of contact to report allegations of fraud and corruption among ADB-financed projects or its staff. Within that office, the Anticorruption Unit is responsible for dealing with all matters related to allegations of fraud and corruption. Please refer to the ADB’s Anticorruption Policy Handbook. Anyone coming across evidence of corruption associated with the Project may contact the Anticorruption Unit by telephone, facsimile, by mail, or by email as follows: Integrity Division (OAGI) Office of the Auditor General Asian Development Bank 6 ADB Avenue, Mandaluyong City 0401 Metro Manila, Philippines Postal Address: P. O. Box 789 0980 Manila, Philippines Telephone No.: (63-2) 632 5004 Facsimile No. : (63-2) 636 2152

E-mail : [email protected] or [email protected] 35. The GIM shall be read in conjunction with the JFPR Paper, Letter of Agreement, and relevant ADB documents listed in Appendix 21.

Appendix 1 12

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets and Indicators

Data Sources and Reporting

Mechanisms Assumption and Risks

Impact Reduced iron deficiency anemia among the poor

Prevalence of Anemia among children under 5 years reduced 20% from baseline

Food and nutrition surveillance system Baseline and final survey

Assumption Fortified rice is regularly distributed under the RASKIN program. Risk Overall food price increases which will undermine the nutrition status of the population

Outcome Assessment of the feasibility, cost and impact of providing iron-fortified rice under the RASKIN program in the project areas.

At least 800,000 RASKIN beneficiaries (200,000 households) consume fortified rice.

Baseline and final Survey

Assumption Government budget for RASKIN will be maintained Risk Trend of increasing rice prices will continue

Output 1 Identified appropriate rice fortification technology

Select the most effective technology out of four options; formal agreement reached with a technology partner

Biannual project reviews

Assumption Low Cost technology is identified Risk Cost of effective acceptable technology

Output 2 Strengthened capacity for the production and fortification of rice with iron

At least 80% of RASKIN households increase their daily intake to 30-40% of WHO EAR Rice Fortification technology adopted in six mills and staff trained in new technology

Baseline and final Survey

Assumptions Target household consume fortified rice Low-cost fortification technology is accepted by millers

Output 3 Increased awareness of the benefits of fortified rice

At least 70% of target households know about the adverse impact of IDA. Draft Strategy for expanding rice fortification developed

Baseline and final survey

Assumptions Fully fortified rice will be available and consumed by target households. Political and financial commitment of the Government to expand rice fortification.

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Design Summary Performance Targets and Indicators

Data Sources and Reporting

Mechanisms Assumption and Risks

Output 4 Strengthened grant implementation and monitoring and evaluation

Detailed implementation and monitoring guidelines are developed for the project implementation units

Project monitoring and evaluation report

Activities with Milestones 1. Indentify appropriate Rice Fortification 1.1. Recruit consultants (August 2010) 1.2. Conduct socialization workshops with public and private sector stakeholders (September-November 2010) 1.3. Evaluated options for introduction of iron fortificant compound (November 2010). 1.4 Conduct efficacy study (November 2010-February 2011). 1.5. Define proposed fortification level for RASKIN rice (September-October 2010). 1.6. Assess capacity building needs for cost-effective rice fortification production (September-October 2010). 1.7. Develop technical guidelines for rice fortification (December 2010). 2. Strengthen Capacity for the Production of Fortified Rice 2.1. Recruit consultants (August 2010). 2.2. Provide blending equipment to six mills (March 2011). 2.3. Train milling staff in blending technology (March 2011). 2.4. Repackage fortified Rice at warehouses (March 2011). 2.5. Develop quality assurance guidelines (May 2011). 2.6. Assess costs and benefits of rice fortification (October-December 2012).

Inputs: ADB/JFPR: $2,000,000 Government: $220,340

3. Raise Awareness of the Benefits of Fortified Rice 3.1. Recruit Consultants (February 2011). 3.2. Independent monitoring by NGO (July 2011 and February 2012). 3.3. Organize workshops and roundtable meetings with public and private stakeholders (December 2010 and December 2012). 4. Strengthen Grant Implementation and monitoring and evaluation 4.1. Conduct baseline and final surveys (January 2010 and June 2012). 4.2. Conduct endline survey including biological impact assessment (May-June 2011). 4.3. Conduct three external audits (annually). 4.4 Prepare midterms and final evaluation reports (October 2011 and December 2012)

SUMMARY COST TABLE

($)

No. Expenditure category Component A:

Assessment and Identification of New

Technologies

Component B: Capacity Building,

Production, and Distribution

Component C: Advocacy, Monitoring and

Evaluation, and Scaling-Up

Component D: Grant Management,

Monitoring, and Audit Total Share

(%)

1 Civil Works 0 0 0 0 0 0

2 Equipment and Supplies 10,000 635,200 80,000 0 725,200 36.3

3 Training, Workshops, and Seminars 55,000 20,000 79,000 72,000 226,000 11.3

4 Consulting Services 52,000 70,000 35,000 115,000 272,000 13.6

5 Project Management 0 0 0 192,000 192,000 9.6

6 Other Project Inputs 120,000 0 196,000 0 316,000 15.8

Contingencies 63,000 90,000 97,100 18,700 268,800 13.4

Subtotal JFPR financed 300,000 815,200 487,100 397,700 2,000,000 100.0 Government Contribution 10,000 130,340 0 80,000 220,340 Contributions from Other Donor(s) (e.g., NGOs, multilateral and bilateral agencies) 0 0 0 0 0

Community Contributions (mostly in kind) 0 0 0 0 0

Total 310,000 945,540 487,100 477,700 2,220,340 Incremental Cost

JFPR = Japan Fund for Poverty reduction, NGO = non-government organization. Source: Asian Development Bank estimates.

Quarterly Contract Awards Projections Including Contingency (in $000) Fiscal Year Q1 Q2 Q3 Q4 Annual Totals

2010 - - 54,200 178,700 232,900 2011 73,450 563,900 548,790 132,700 1,318,840 2012 42,450 115,700 82,450 159,200 399,800


Quarterly Disbursement Projections Including Contingency (in $) Fiscal Year Q1 Q2 Q3 Q4 Annual Totals

2010 - - 45,200 167,200 212,400 2011 64,200 556,400 409,200 125,200 1,155,000 2012 33,200 108,200 73,200 149,200 363,800


Appendix 2

DETAILED COST ESTIMATES

($)

Costs Contributions

Fiscal Years Code Supplies and Services Rendered

Unit Quantity Cost Per Unit Total JFPR GOI

Responsible Agency

2010 2011 2012

Component A: Assessment and Identification of New Technologies 247,000 237,000 10,000 75,000 138,500 28,500

1.1 Equipment and Supplies

1.1.1 Publication of fortified rice guidelines (premix, blending, distribution) publication 1 10,000 10,000 10,000 - MOA - 10,000 -

1.2 Training, Workshops, and Seminars

1.2.1 Stakeholder workshops: BULOG, MOH, BPOM, MOA workshop 6 6,667 40,000 30,000 10,000 BAP 13,000 13,500 13,500

1.2.2 Communications/Workshops for technology partners workshop 3 5,000 15,000 15,000 - MOA 5,000 5,000 5,000

1.2.3 Steering Committee Roadshow lump sum 2 5,000 10,000 10,000 - BAP 10,000 - - 1.3 Consulting Services

1.3.1 Fortification consultant (international) person-months 2 20,000 40,000 40,000 - MOA 40,000 - -

1.3.2 Development of Rice Fortification Technology Guideline (contracted to KFI) lump sum 1 12,000 12,000 12,000 - MOA 12,000 - -

1.4 Other Project Inputs 1.4.1 Consumer acceptance trials trial 4 5,000 20,000 20,000 - MOA - 10,000 10,000

1.4.2 Efficacy trials with 2 selected technologies/compounds trial 1 80,000 80,000 80,000 - MOA - 80,000

-

1.4.3 Feasibility analysis of blending technologies for BULOG-contracted rice mills

study 1 10,000 10,000 10,000 - MOA - 10,000 -

1.4.4 Testing of stability of fortified rice in BULOG warehouses evaluation 1 10,000 10,000 10,000 - MOA - 10,000 -

Costs Contributions

Fiscal Years Code Supplies and Services Rendered


Responsible Agency

2010 2011 2012

Component B: Capacity Building, Production, and Distribution 855,540 725,200 130,340 - 828,540 27,000

2.1 Equipment and Supplies

2.1.1 Blending and mixing equipment for fortification premix milling/extrusion capacity building

blender /mixer 1 250,000 250,000 250,000 - MOA - 250,000 -

2.1.2 Blending capacity at mills mills 6 20,000 120,000 120,000 - MOA - 120,000 - 2.1.3 Iron fortificant (MT rice) MT 24,000 2.8 67,200 67,200 - MOA - 67,200 -

2.1.4 Labeling and bags for fortified rice (15 kg/bag)

labels and bags 1,600,000 0.09 144,000 144,000 - MOA - 144,000 -

2.1.5 Quality assurance and operations for BPOM and mills mills/ Months 12 1000 12,000 12,000 - MOA - 6,000 6000

2.1.6 Operations (electricity, labor, and overhead at rice mills) mills 6 7,000 42,000 42,000 - MOA - 21,000 21,000


2.2.1 Training workshops for BULOG mills and quality assurance personnel workshop 2 5,000 10,000 10,000 - MOA - 10,000 -

2.2.2 Steering Committee Roadshow lump sum 2 5,000 10,000 10,000 - BAP - 10,000 - 2.3 Consulting Services

2.3.1 Fortification consultant (national) person-months 2 5,000 10,000 10,000 - MOA - 10,000 -

2.3.3 Milling and quality assurance consultant (international)

person-months 3 20,000 60,000 60,000 - MOA - 60,000 -

2.4 Other Project Inputs (Specify)

2.4.1 Broken rice for premix production (for 24,000 MT)

custom order/MT 380 343 130,340 - 130,340 MOA - 130,340 -

Costs Contributions

Fiscal Years

2010 Code Supplies and Services Rendered


Responsible Agency

2011 2012

Component C: Advocacy, Monitoring and Evaluation, and Scaling-Up 390,000 390,000 - 48,000 211,000 131,000

3.1 Equipment and Supplies 3.1.1 Consumer Education brochure 400,000 0.2 80,000 80,000 - BAP - 80,000 - 3.2 Training, Workshops, and Seminars

3.2.1 Advocacy with local governments meeting 12 2,000 24,000 24,000 - BAP 8,000 8,000 8000

3.2.2 Policy paper recommendations and workshops for policy development lump sum 1 30,000 30,000 30,000 - BAP - - 30,000

3.2.3 Workshops for policy development lump sum 3 5,000 15,000 15,000 - BAP 5,000 5,000 5,000 3.2.4 Steering Committee Roadshow lump sum 2 5,000 10,000 10,000 - BAP - - 10,000

3.3 Consulting Services (e.g., for management and monitoring/assessments)

3.3.1 Legislative regulatory consultant (national) person-months 3 5,000 15,000 15,000 - BAP - - 15,000

3.3.2 Social marketing and advocacy consultant (national)

person-months 4 5,000 20,000 20,000 - BAP 10,000 10,000 -

3.4 Other Project Inputs (Specify) 3.4.1 Baseline and endline survey evaluation 2 38,000 76,000 76,000 - BAP - 38,000 38,000 3.4.3 Social mobilization in each project area NGO 1 20,000 20,000 20,000 - BAP - 20,000 -

3.4.4 Operations Research (including poverty assestment) study 2 25,000 50,000 50,000 BAP 25,000 25,000 --

3.4.5 Independent Monitoring by NGO NGO 2 25,000 50,000 50,000 - BAP - 25,000 25,000

Costs Contributions

Fiscal Years Code Supplies and Services

Rendered Unit Quantity Cost Per

Unit Total JFPR GOI

Responsible Agency

2010 2011 2012

Component D: Grant Management, Monitoring, and Audit 459,000 379,000 80,000 104,900 140,800 213,300


4.1.1 Steering committee meetings meeting 6 2,000 12,000 12,000 - BAP 4,000 4,000 4,000 4.1.2 Lauching meeting meeting 1 10,000 10,000 10,000 - BAP 10,000 4.1.3 Midterm review meeting 1 10,000 10,000 10,000 - BAP 10,000 4.1.4 Final meeting meeting 1 10,000 10,000 10,000 - BAP 10,000 4.1.5 National roundtable meeting 2 17,500 35,000 30,000 5,000 BAP 17,500 17,500

4.2 Consulting Services (e.g., for management and monitoring/assessments)

4.2.2 Final publication report 1 40,000 40,000 40,000 - BAP - - 40000 4.2.3 Final reporting report 1 15,000 15,000 15,000 - BAP - - 15,000 4.3 External Audit audit 3 20,000 60,000 60,000 - BAP 20,000 20,000 20,000

4.4 Management and Coordination of Project

4.4.1 PMU staff month 30 5,000 150,000 150,000 - BAP 30,000 60,000 60,000 4.4.2 PMU office/operational costs month 30 1,833 55,000 30,000 25,000 BAP & MOA 11,000 22,000 22,000 4.4.3 PMU travel month 30 400 12,000 12,000 - BAP 2,400 4,800 4,800 4.5 Other project inputs (specify)

4.5.1 Supporting staffs at MOA and BAPPENAS month 30 1,667 50,000 - 50,000 BAP & MOA 10,000 20,000 20,000

Costs Contributions

Code Supplies and Services Rendered Unit Quantity Cost Per

Unit Total JFPR GOI2 2010 2011 2012

Subtotal, Components A to D 1,951,540 1,731,200 220,340 232,900 1,318,840 399,800 Contingency 268,800 268,800 - Total Grant Costs 2,220,340 2,000,000 220,340 Incremental Costs Total Incremental Costs 60,000

1) There are four components to premix: equipment, fortificant, broken rice, and transport of premix

2) The GOI contribution also includes the Raskin which is valued at 384$ per metric ton, or 8,256,000

Appendix 4 19

FUND FLOW ARRANGEMENT 1. Funds will be disbursed under the terms of a contractual arrangement with the National Development Planning Agency (BAPPENAS), which will maintain an imprest account at a bank acceptable to the Asian Development Bank (ADB), for that purpose. The imprest account will be established, managed, replenished, and liquidated according to ADB’s Loan Disbursement Handbook (2007, as amended from time to time) and detailed arrangements agreed on between the Government and ADB. Total advances should not exceed ADB’s estimated share of eligible project expenditures to be financed through the imprest account for the next 6 months or 10% of the grant, whichever is lower. BAPPENAS may request an initial advance from ADB on the basis of approved contracts and planned expenditures for the first 6 months of the Project that are to be paid through the imprest account. The initial advance, in any event, should not exceed the approved ceiling. The statement-of-expenditure (SOE) procedure will apply to all payments and transactions under $5,000 to speed up project implementation. Detailed implementation arrangements, such as funds flow, replenishment, and administrative procedures, will be detailed in the grant implementation manual to be prepared before project inception and to be established between ADB and the Government through a letter of agreement from the Japan Fund for Poverty Reduction (JFPR). 2. The use of the imprest account and the SOE procedure will be audited annually by auditors acceptable to ADB, and a separate audit opinion on the use of the JFPR account should be included in annual reports. All procurement under the Project will be conducted according to ADB’s Procurement Guidelines (2007, as amended from time to time). Consultants will be hired according to ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time) and other arrangements satisfactory to ADB for the hiring of national consultants. 3. Interest earned on the JFPR imprest account can be used for the Project subject to ADB’s approval, within the approved total amount of the JFPR grant. Upon the completion of the Project and before the JFPR account is closed, any unused interest should be returned to the JFPR account maintained at ADB. If the remittance fee and other bank charges are higher than the amount of interest earned, there will be no need to return such interest to the JFPR account maintained at ADB.

Appendix 4 20

Asian Development Bank

Grant Imprest Account Held at Grant Implementation Unit

$2,000,000 Component A:

Identification of New Technology

ICB/ICQ/LCB/LCQ procurements

(equipment in bulk, etc.)

Component B: Capacity Building, Production, and

Distribution

Component C: Advocacy, Social

Mobilization, Monitoring and Evaluation, and

Expansion

Component D: Grant Management,

Monitoring, and Audit

Overall Management and Coordination of

Project

Operation Research (including Poverty

Assessment)

Contingencies

$725,200

$227,000

$90,000

$260,000

$187,000

$192,000

$50,000

$268,800

ADB = Asian Development Bank, ICB = international competitive bidding, ICQ = international competitive quotation, LCB = local competitive bidding, LCQ = local competitive quotation.

Appendix 5 21

ORGANIZATIONAL STRUCTURE

Project Steering Committee

Chair: Deputy HRC, BAPPENAS

Members: BAPPENAS, MOH, MOA, BPOM,

MOHA, MCOP, MOF, and MOI

Technical Advisors: • KFI • MI • Consultants

Perum BULOG

PMU (Executive Secretary)

Project Manager Director, DHCN, BAPPENAS

Secretariat

Deputy Project Manager Director, CFCFS, MOA

Secretariat

Local Government

Appendix 6 22

IMPLEMENTATION SCHEDULE

Year

2010 2011 2012 Code Supplies and Services Rendered Resp.

7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Component A: Assessment and Identification of New Technologies 1,1 Equipment and Supplies

1.1.1 Publication of fortified rice guidelines (premix, blending, distribution)

MOA

1,2 Training, Workshops, and Seminars

1.2.1 Stakeholder workshops: BULOG, MOH, BPOM, MOA BAP

1.2.2 Communications/Workshops for technology partners MOA

1.2.3 Steering Committee Roadshow BAP

1,3 Consulting Services

1.3.1 Fortification consultant (international) MOA

1.3.2 Development of Rice Fortification Technology Guideline (contracted to KFI)

MOA

1,4 Other Project Inputs 1.4.1 Consumer acceptance trials MOA

1.4.2 Efficacy trials with 2 selected technologies/compounds

MOA

1.4.3 Feasibility analysis of blending technologies for BULOG-contracted rice mills

MOA

1.4.4 Testing of stability of fortified rice in BULOG warehouses MOA

Appendix 6 23

Year


7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Component B: Capacity Building, Production, and Distribution

2,1 Equipment and Supplies

2.1.1 Blending and mixing equipment for fortification premix milling/extrusion capacity building

MOA

2.1.2 Blending capacity at mills MOA 2.1.3 Iron fortificant (MT rice) MOA

2.1.4 Labeling and bags for fortified rice (15 kg/bag) MOA

2.1.5 Quality assurance and operations for BPOM and mills

MOA

2.1.6 Operations (electricity, labor, and overhead at rice mills) MOA


2.2.1 Training workshops for BULOG mills and quality assurance personnel

MOA


2,3 Consulting Services

2.3.1 Fortification consultant (nasional) MOA

2.3.3 Milling and quality assurance consultant (international) MOA

2,4 Other Project Inputs (Specify)

2.4.1 Broken rice for premix production (for 24,000 MT)1 MOA

Appendix 6 24

Year


7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Component C: Advocacy, Monitoring and Evaluation, and Scaling-Up

3,1 Equipment and Supplies 3.1.1 Consumer Education BAP


3.2.1 Advocacy with local governments BAP

3.2.2 Policy paper recommendations and workshops for policy development2

BAP

3.2.3 Workshops for policy development2 BAP


3,3 Consulting Services (e.g., for management and monitoring/assessments)

3.3.1 Legislative regulatory consultant (national) BAP

3.3.2 Social marketing and advocacy consultant (national)

BAP

3,4 Other Project Inputs (Specify)

3.4.1 Baseline and endline survey3 BAP

3.4.3 Social mobilization in each project area BAP

3.4.4 Operations Research (including poverty assestment)

BAP

3.4.5 Independent Monitoring by NGO BAP

Appendix 6 25

Year


7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Component D: Grant Management, Monitoring, and Audit


4.1.1 Steering committee meetings BAP

4.1.2 Launching meeting BAP 4.1.3 Midterm review BAP 4.1.4 Final meeting BAP 4.1.5 National roundtable BAP

4,2 Consulting Services (e.g., for management and monitoring/assessments)

4.2.2 Final publication BAP 4.2.3 Final reporting BAP 4,3 External Audit BAP

4,4 Management and Coordination of Project

4.4.1 PMU staff BAP

4.4.2 PMU office/operational costs BAP

4.4.3 PMU travel BAP

4.5 Other project inputs (specify)

4.5.1 Supporting staff at MOA and Bappenas BAP

Appendix 7 26

3-YEAR PROCUREMENT PLAN

A. CONSULTING SERVICES No.

Position

Inputs (person-months)

Budget (USD)

Proposed Fielding

Selection Procedure

Responsible Unit

I. International 1 Fortification consultant (international) 2 40,000 Dec 2010 Individual ADB 2 Milling and quality assurance consultant

(international) 3 60,000 June 2011 Individual ADB

II National 1 Fortification consultant (national) 2 10,000 June 2011 Individual BAP 2 Development of Rice Fortification

Technology Guideline (contracted to KFI) 1 12,000 Jan 2011 BAP and/or

MOA 3 Legislative regulatory consultant

(national) 3 15,000 May 2012 Individual BAP

4 Social marketing and advocacy consultant (national)

4 20,000 Nov 2010 May 2011

Individual BAP

III PMU Staff 105 150,000 Each month Individual BAP TOTAL 307,000

B. PROCUREMENT OF GOODS

No.

Item

Quantity

Unit Cost

Total

Target Completion

Date

Procurement Procedure

Responsible Unit

I Equipment and Supplies 1 Publication of fortified rice

guidelines (premix, blending, distribution)

1 10,000 10,000 April 2011 Shopping MOA

2 Blending and mixing equipment for fortification premix milling/extrusion capacity building

1 250,000 250,000 May 2011 ICB/NCB MOA

3 Blending capacity at mills 6 20,000 120,000 May 2011 Shopping/NCB

MOA

4 Iron fortificant (MT rice) 24,000 2.8 67,200 May 2011 Shopping/LCB

MOA

5 Labels and bags for fortified rice 1,600,000 0.09 144,000 July 2011 Shopping/NCB

MOA

6 Quality assurance and operations for BPOM and mills

12 1000 12,000 July 2012 Force account

MOA

7 Operations (electricity, labor, and overhead at rice mills)

6 7,000 42,000 July 2012 Force account

MOA

8 Consumer Education 400,000 0.2 80,000 July 2011 Shopping/NCB

BAP

9 Final Publication 1 40,000 40,000 Dec 2012 Shoping/NCB BAP 10 Final Reporting 1 15,000 15,000 Dec 2012 Shoping/NCB BAP 11 PMU Office/0perational cost 30 1,833 55,000 Each month Force

account BAP and

MOA TOTAL 835,200

Appendix 7 27

C. TRAINING, SEMINARS & WORKSHOPS

No.

Activity

Frequency/No. of Participants

Unit Cost

Total

Proposed Schedule

Selection Procedure

Responsible Unit

1 Stakeholder workshops: BULOG, MOH, BPOM, MOA

6 6,667 40,000 Sept & Dec 2010, Mar & July 2011, Mar & Aug

2012

Force account

BAP

2 Communications/Workshops for technology partners

3 5,000 15,000 Oct 2010, June 2011, June 2012

Force account

MOA

3 Steering Committee Roadshow 6 5,000 30,000 Sept & Dec 2010, July &

Oct 2011, Feb & Sept

2012

Force account

BAP

4 Training workshops for BULOG mills and quality assurance personnel

2 5,000 10,000 July 2011 Force account

MOA

5 Advocacy with local governments

12 2,000 24,000 Sept & Nov 2010, Apr & Oct 2011, Mar & July

2012

Force account

BAP

6 Policy paper recommendations and workshops for policy development

1 30,000 30,000 Oct 2012 CQS/SSS BAP

7 Workshops for policy development

3 5,000 15,000 Dec 2010, May 2011, Sept 2012

Force account

BAP

8 Steering committe meetings 6 2,000 12,000 Aug & Nov 2010, May & Nov 2011, Apr & Aug

2012

Force account

BAP

9 Launching meetings 1 10,000 10,000 Sept 2010 Force account

BAP

10 Midterm review meeting 1 10,000 10,000 Oct 2011 Force account

BAP

11 Final meeting 1 10,000 10,000 Dec 2012 Force account

BAP

12 National round table 2 17,500 35,000 Dec 2010 and Dec

2012

Force account

BAP

13 PMU travel 30 400 12,000 Each month Force account

BAP

TOTAL 253,000

Appendix 7 28

D. EXTERNAL AUDIT

No.

Item/Service

Quantity

Unit

Total

Target

Completion Date

Selection Procedure

Responsible Unit

1 External Audit (annual) 3 audit 60,000 Dec 2010, Dec 2011, Dec 2012

CQS/SSS BAP

TOTAL 60,000 E. OTHER PROJECT INPUTS

No.

Item/Service

Qty

Unit

Total

Target

Completion Date

Selection Procedure

Responsible Unit

1 Feasibility analysis of blending technologies for BULOG- contracted rice mills

1 study 10,000 July 2011 CQS/SSS MOA

2 Testing of stability of fortified rice in BULOG warehouses

1 evaluation 10,000 Jan 2012 CQS/SSS MOA

3 Consumer acceptance trials

4 trial 20,000 June 2012 CQS/SSS MOA

4 Efficacy trials with 2 selected technologies/compounds

1 trial 80,000 July 2011 CQS/SSS MOA

5 Broken rice for premix production (for 24,000 MT)

24,000 custom order/MT

130,340 July 2011 CQS/SSS MOA

6 Baseline and Endline Surveys 2 evaluation 76,000 Aug 2012 CQS/SSS BAP

7 Social mobilization 1 NGO 20,000 July 2012 CQS/SSS BAP 8 Operations Research

(including poverty assesstment)

2 study 50,000 Nov 2010, Nov 2011

CQS/SSS BAP

9 Independent Monitoring 2 NGO 50,000 Mar 2012 CQS/SSS BAP 10 Supporting Staff at MOA

and BAPPENAS 30 Month 50,000 Dec 2012 Individual BAP

TOTAL 496,340 GRAND TOTAL 1,951,540

Appendix 8 29

PROCUREMENT METHOD

1. National Competitive Bidding

National competitive bidding (NCB) is the competitive bidding procedure normally used for public procurement in the country of the grant recipient, and may be the most appropriate way of procuring goods or works which, by their nature or scope, are unlikely to attract foreign competition. To be acceptable for use in ADB-financed procurement, these procedures shall be reviewed and modified41 as necessary to assure economy, efficiency, transparency, and broad consistency with the provisions included in Section I of these Guidelines. NCB may be the most appropriate method of procurement where foreign bidders are not expected to be interested because (a) the contract values are small, (b) works are scattered geographically or spread over time, (c) works are labor intensive, or (d) the goods or works are available locally at prices below the international market. NCB procedures may also be used where the advantages of ICB are clearly outweighed by the administrative or financial burden involved.

Advertising may be limited to the national press or official gazette, or a free and open

access website. Bidding documents may be only in a national language of the grant receipient’s country (or the language used nation-wide in the grant recepient’s country for commercial transactions), and the currency of the country of the grant recipient is generally used for the purposes of bidding and payment. In addition, the bidding documents shall provide clear instructions on how bids should be submitted, how prices should be offered, and the place and time for submission of bids. Adequate response time for preparation and submission of bids shall be provided. The procedures shall provide for adequate competition in order to ensure reasonable prices, and methods used in the evaluation of bids and the award of shall be objective and made known to all bidders in the bidding documents and not be applied arbitrarily. The procedures shall also include public opening of bids, publication of results of evaluation and of the award of contract and rovisions for bidders to protest. If foreign firms wish to participate under these circumstances, they shall be allowed to do so.

When procurement is done under NCB procedures using the country system, it is

mandatory under an ADB-financed project to use the NCB Annex. Indonesia NCB Annex C. National Competitive Bidding

1. General

7. The procedures to be followed for national competitive bidding shall be those set forth in Presidential Decree No.80/2003 of the Republic of Indonesia, dated 3 November 2003, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines.

2. Registration

(i) Bidding shall not be restricted to pre-registered firms and such registration shall

not be a condition for participation in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (i) shall be allowed a reasonable time to complete the registration process; and (ii) shall not

Appendix 8 30

be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

3. Prequalification

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

4. Joint Ventures 9. A bidder declared the lowest evaluated responsive bidder shall not be required to form a joint venture or to sub-contract part of the supply of goods as a condition of award of the contract.

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

manufactured goods.

(ii) Regulations issued by a sectoral ministry, provincial regulations and local regulations which restrict national competitive bidding procedures to a class of contractors or a class of suppliers shall not be applicable.

6. Advertising

(i) Invitations to bid (or prequalify, where prequalification is used) shall be advertised in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of twenty-eight (28) days for the preparation and submission of bids and allowing potential bidders to purchase bidding documents up to at least twenty-four (24) hours prior the deadline for the submission of bids. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised on ADB’s website via the posting of the Procurement Plan.

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

(iii) Bidders domiciled outside the area/district/province of the unit responsible for procurement shall be allowed to participate regardless of the estimated value of the contract.

(iv) Foreign bidders from ADB member countries shall not be precluded from bidding.

7. Bid Security 10. Where required, bid security shall be in the form of a bank guarantee from a reputable bank.

Appendix 8 31

8. Bid Opening and Bid Evaluation (i) Bids shall be opened in public, immediately after the deadline for submission of

bids. (ii) Evaluation of bids shall be made in strict adherence to the criteria declared in the

bidding documents. (iii) Bidders shall not be eliminated from detailed evaluation on the basis of minor,

non-substantial deviations. (iv) No bid shall be rejected on the basis of a comparison with the owner's estimate or

budget ceiling without the ADB’s prior concurrence. (v) The contract shall be awarded to the technically responsive bid that offers the

lowest evaluated price.

9. Rejection of All Bids and Rebidding

(i) Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.

(ii) When the number of responsive bids is less than three (3), re-bidding shall not be

carried out without the ADB’s prior concurrence.

10. ADB Member Country Restrictions

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

2. Shopping

Shopping is a procurement method based on comparing price quotations obtained from

several suppliers (in the case of goods) or from several contractors (in the case of civil works), with a minimum of three, to assure competitive prices, and is an appropriate method for procuring readily available off-the-shelf goods or standard specification commodities of small value, or simple civil works of small value. Requests for quotations shall indicate the description and quantity of the goods or specifications of works, as well as desired delivery (or completion) time and place. Quotations may be submitted by letter, facsimile or by electronic means. The evaluation of quotations shall follow the same principles as of open bidding. The terms of the accepted offer shall be incorporated in a purchase order or brief contract.

The EA may also refer to ADB's Procurement Guidelines, Project Administration Instructions (PAIs) on Procurement (Section 3) and Procurement related documents from ADB website: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf http://www.adb.org/Documents/Manuals/PAI/default.asp http://www.adb.org/Procurement/prequalification-bid-documents.asp

Appendix 9 32

TERMS OF REFERENCE FOR CONSULTING SERVICES

I. Background

The goal of the Project is prevention and reduction of iron-deficiency anemia (IDA) among the poor in Indonesia. Its purpose is to assess the feasibility, cost, and impact of providing iron-fortified rice under the world's largest subsidized rice program for the poor (RASKIN). The specific objectives are to

(i) identify the most-acceptable and cost-effective rice fortification technologies; (ii) build the capacity of rice mills contracted by the National Procurement Corporation

(PERUM BULOG) to blend fortified rice concentrate with RASKIN rice; (iii) advocate support for the program with decision makers and raise awareness of the

benefits of fortified rice among RASKIN recipients, local government, national decision makers, and the private sector;

(iv) evaluate the impact of rice fortification; and (v) identify strategies for the sustainable expansion of rice fortification under the RASKIN

program. Expected Key Performance Indicators The performance and outputs of the Project will be monitored and evaluated with the following indicators:

(i) capacity to produce fortified rice built at six rice mills; (ii) 24,000 metric tons of quality-assured iron-fortified rice delivered to 800,000 people in two

project areas over 12 months; (v) daily intake of iron increased to 30%–40% of the World Health Organization (WHO)

estimated average requirement (EAR) in the project areas; (vi) reduction of anemia prevalence (hemoglobin and serum ferritin levels) among RASKIN

recipients in the project areas evaluated; and (vii) financing and policy recommendations prepared for the expansion of rice fortification.

In order to accomplish these objects the project will require nine consultants: four managerial consultants, and four technical consultants. The four managerial consultants will manage the project from the PMU in Bappenas are: :

1. Executive Secretary 2. Finance and Administrative Officer 3. Monitoring and Evaluation Officer 4. Procurement Officer

The four technical consultants will provide a more limited service focusing on specific technical issues which include:

5. Fortification Consultant (International) (2 assignments) 6. Milling and Quality Assurance Consultant (International) 7. Social Marketing Consultant (Domestic) 8. Legislation, Regulatory Consultant (Domestic)

Appendix 9 33

II. Terms of reference for Project Management Staff

1. PMU - Executive Secretary (30 person months) One full-time domestic consultant will be engaged and based at the PMU in BAPPENAS to take responsibility to insure all milestones within the project design are met on a timely fashion, and support the Central Steering Committee and Project Implementation Unit by managing other members of the secretariat during the entire Project implementation period. The executive secretary will also be responsible for the development of technical material to support consultant recruitment and arranging and managing a number of workshops for various project stakeholders. The executive secretary will be responsible for insuring the project is successful in meeting its objectives. The executive secretary will:

i) supervise the work of PMU staff to assist the Central Steering Committee and Central Technical Committee in planning, managing, and supervising the work under the Project at their designated responsibilities;

ii) facilitate adequate coordination and communication among relevant ministries including BAPPENAS, MOA, MOHA, MOH, Local Government, BULOG, other concerned institutions, including NGO’s (KFI, MI) and training institutions (SEAMEO) that will be assisting the Project;

iii) Oversee contracted firms consultants and insure that deliverables are of high quality and delivered in a timely manner.

iv) To arrange all workshops that will be undertaken by the project including scheduling, and recruiting technical support staff.

v) serve as a principle contact point between the Project director, the project secretariat and ADB; vi) facilitate the preparation of project proposals, RFP’s and budgets at the central level with the

Administration / Project Financial Management and Procurement Officer, to be discussed at PMU for submission to ADB;

vii) ensure that all proposals and budgets being processed for submission to ADB are in compliance with the respective GOI and ADB requirements.

viii) ensure that advocacy, stakeholders meetings, workshops, training, investment and implementation activities are appropriately planned in detail for implementation in a timely manner;

ix) work with and supervise the Monitoring officer to insure that all quarterly reports are well written in a comprehensive manner, and submitted to ADB on time.

x) carry out other duties as may be required by the Project Director and Project Manager. xi) work with the monitoring officer to insure that baseline and endline studies are completed on

project impact. xii) insure that international and domestic consultants are of highest quality, and that BAPPENAS

efficiently utilizes the consultants skills. xiii) develop activity implementation plans, including the delineation of allocated time and

responsibilities. Deliverables:

1. Eleven quarterly reports. 2. Project completion report 3. Summary and explanations of all annual audits to ADB, and BAPPENAS 4. Annual performance review of all CMU staff.

Qualifications:

1. Experience in managing loan funded health development projects, particularly nutrition improvement programs.

2. Good command of Indonesian and English language, and good communication skills in both languages..

Appendix 9 34

3. Proficiency on computer, and ability in all standard Micro-soft office applications. 4. The ability to manage and supervise staff. 5. Commitment to good governance. 6. Commitment to improving the nutritional status of Indonesia, particularly the poor and

disadvantaged. 7. Ability to work in a team.

2. Financial and Administrative officer (30 person months) The Finance and administrative will be based in the PMU to assist in financial management, procurement, and planning. The financial officer will ensure that all financial reports, reports on expenditures, and procurement are in line with ADB and government of Indonesia regulations. The consultant will be responsible for developing annual budgets, and arranging for annual independent audits of project activities. This officer will alsol be responsible for general office administration and procurement, particularly, procurement of fortification equipment and rice bagging supplies. The detailed responsibilities of the finance/procurement/planning officer are as follow:

2) To synchronize the planning, targeting, goals, implementation, and annual funding of Raskin Fortification project that had been decided by the head of the project are in line with the Grant implementation Manual.

3) To develop operational guidelines containing the detailed activities to ensure that it is within are reached.

4) To assist the executive secretary, monitoring and evaluation officer and the technical review team in planning the annual activity plans and budgets and also other activity plans, and work closely with the relevant planning officers in MOA/BAPPENAS in a timely manner to ensure that it is incorporated in the respective annual budgets.

5) To plan project final evaluation activities. 6) Undertake the necessary steps to ensure a timely and efficient procurement of goods and civil

works and also in the engagement of consultants for all project levels. 7) Setting proper accounting system and internal controls, and setting a budgeting process and

conduct variance analysis. 8) To have a detailed comprehension of all regulations applicable to the Project and the

management of flow of funds and payments from (ADB and GOI) for all level of the project. 9) Setting a proper Accounting Information System and ensuring adequate functioning of the

accounting software, and to provide the necessary inputs to the Executive Secretary on fund utilization plan for activities at all level.

10) Ensuring preparation of timely periodic consolidated financial management reports to ADB and GOI.

11) To cooperate with the planning monitoring and evaluation officer, and the technical working team in developing the activity funding plan needed by the project in line with regulations from ADB.

12) Coordinating, supervision, monitoring and evaluating all financial activities of the project, and to report technical difficulties being faced in implementation of the project activities periodically and to seek solutions for the problem being faced.

13) Work Closely with the Ministry of Finance, and KPKN. 14) Work closely with the IRM and ADB Manila on finance issues (budgeting). 15) Arrange for annual private and government audit.

Appendix 9 35

Qualifications 1. University graduate. 2. Five years experience in financial management/procurement/planning of foreign funded projects

especially with ADB projects. 3. Computer literate with detailed knowledge on all the programs in Microsoft office 4. Ability to communicate in oral or written English.

Output Indicators

1. The availability of quarterly financial expenditure and disbursement status report. 2. The availability of yearly financial budgets. 3. The availability of audit plan and report plans for quarterly, yearly and PCR-reports. 4. The availability of regularly updated financial management guidelines for all project levels. 5. The Availability of quarterly reports on the status of procurement of goods and services. 6. The availability of a list and status of consultants recruited 7. The availability of a list and status of mills working for BULOG. 8. The availability of a list and status of workshops/advocacy held. 9. The availability of a list of local and ADB approval of the activities.

3. Monitoring and Evaluation Officer (30 person months) Monitoring and evaluation officer will be based in Jakarta (PMU) to assist the development, socialization, and promotion of the regular use of a basic set of key program process and performance indicators at all levels, and to monitor the impact of project in order to promote expansion of fortification of RASKIN to other districts within West Java, as well as other provinces. The monitoring and evaluation officer will assist in identifying methods to evaluate and monitor program activities at all levels. The detailed responsibilities of the monitoring and evaluation officer are as follows:

1) Coordinate the monitoring and reporting of project implementation at all levels, including submission of progress reports to ADB within 30 days after the end of each calendar quarter, submission of a project completion report to ADB within three months after the loan closing date.

2) To identify problems in program implementation, and coordinate with other project officers in developing plans for corrective action.

3) To review all situational analysis and operations research and maintain a database of district level health status.

4) To set up a mechanism for reviewing the health impact of various program investments with health assessment/ effectiveness evaluation.

5) Cooperate with the planning procurement and financial officers and technical working team in evaluating and planning of the project’s budget channeling every year during the project.

6) Monitor implementation of plan of activities and in collaboration with other staff. Qualifications

1. University Graduate 2. Have five years experience in managing monitoring and reporting activities of foreign funded

projects 3. Computer literate. 4. Ability to communicate in both written and oral English. 5. Ability to work as a team member.

Output Indicators

1. The availability of quarterly reports of project implementation monitoring and evaluation status. 2. A data base on program contracts, and health status.

Appendix 9 36

3. A data base on rice mill location with project area. 4. The availability of information on health impacts. 5. The availability of project indicators and evaluation criteria.

4. Procurement officer (10 person months) he procurement officer will be responsible for the development of statement of interest, advertisement, completion of the long list of companies expressing interest in the procurement, development of the RFP, communications with ADB in review of RFP, and short listed firms, and in assist the procurement committee in the selection of the firm, from the proposal of the short listed firms. This consultant should ensure that all financial reports, reports on expenditures, and procurement are in line with ADB and government of Indonesia regulations. This person will be responsible for developing annual budget and will assist with the annual independent audits of project activities. The detailed responsibilities of the finance/procurement/planning officer are as follow:

1) To synchronize the procurement to support the Raskin Fortification project so that it can be implemented in a timely fashion.

2) To cooperate with the executive secretary, monitoring and evaluation officer and the technical review team in planning the annual activity plans and budgets and also other activity plans, and work closely with the relevant planning officers in MOA/BAPPENAS in a timely manner to ensure that it is incorporated in the respective annual budgets.

3) Undertake the necessary steps to ensure a timely and efficient procurement of goods and civil works.

4) Coordinate the preparation and submission of the project annual procurement plan for implementation approval based on the plans prepared by the provincial implementation units in a format acceptable to the MOA, MOF and ADB,

5) Monitor the compliance of all procurements with GOI and ADB requirements and the approved procurement plans for goods and services.

6) Monitor the bidding process, bid opening, evaluation, and award of contracts at all project levels. 7) Ensure that all project officers related to procurement have a working knowledge of the project

procurement guidelines in force. 8) Provide technical assistance as necessary for procurement processes at all project levels. 9) Setting proper accounting system and internal controls, and setting a budgeting process and

conduct variance analysis. 10) To have a detailed comprehension of all regulations applicable to the Project and the

management of flow of funds and payments from (ADB and GOI) for all level of the project. 11) Ensuring preparation of timely periodic consolidated financial management reports to PMU, and

ADB. 12) Coordinating, supervision, monitoring and evaluating all financial activities of the project, and to

report technical difficulties being faced in implementation of the project activities periodically and to seek solutions for the problem being faced.

13) Monitor the bidding process, bid opening, evaluation, and award of contracts at all project levels. 14) Ensure that all project officers related to procurement have a working knowledge of the project

procurement guidelines in force. 15) Coordinate the preparation and submission of the project annual procurement plan for

implementation approval based on the plans prepared by the provincial implementation units in a format acceptable to the MOH, MOF and ADB,

16) Monitor the compliance of all procurements with GOI and ADB requirements and the approved procurement plans for goods and services.

17) Provide technical assistance as necessary for procurement processes at all project levels.

Appendix 9 37

Qualifications 1. University graduate. 2. Five years experience in financial management/procurement/planning of foreign funded projects

especially with ADB projects. 3. Computer literate with detailed knowledge on all the programs in Microsoft office 4. Ability to communicate in oral or written English.

Output Indicators

1. The availability of quarterly financial expenditure and disbursement status report. 2. The availability of audit plan and report plans for quarterly, yearly and PCR-reports. 3. The availability of regularly updated financial management guidelines for all project levels. 4. The Availability of quarterly reports on the status of procurement of goods and services. 5. The availability of a list and status of consultants recruited 6. The availability of a list and status of mills working for Bulog. 7. The availability of a list of local and ADB approval of the activities.

III. Terms of Reference for Technical Consultants 1. Fortification Consultant (International Consultant-one person and Domestic Consultant-one person)

Iron Deficiency Anemia has long been known to be one of the most prevalent forms of micronutrient malnutrition in Indonesia. It reduces capacity of workers to be productive, students to learn, and increases the risk of mothers in childbirth and delivery, as well as reducing her capacity to take good care of her family. At the onset of the Asian financial crisis in 1997, the central Government launched a targeted national rice subsidy program for the poor, RASKIN, to cushion the effects of rising prices and declining employment. The National Procurement Corporation (PERUM BULOG) procures rice and hands it over to local governments for delivery to poor families. The RASKIN program complements other PERUM BULOG operations to stabilize the price of rice. It is proposed that as a demonstration project, that the RASKIN rice of two districts of West Java be fortified with iron. There are four approaches toward fortification of rice, two involve the development of a fortified premix using either hot or cold extraction, and then there is coating the rice, and washing the rice with the fortificant. The MI and KFI helped review some of the issues associated with rice fortification last December, and it was suggested to focus on hot extraction as the method of fortification of Raskin with iron. However, dosage and technical details for fortification need to be developed in the early stages of this project, along with insuring that hot extrusion is the most cost effective method of rice fortification, and for helping to establish standards with the Ministry of Industry for iron fortified rice. The project will require two different consultancies by an experienced fortification expert to assist with the technical details for the project on the project (2010 – 2 months), and to help set up the production of premix and its mixing with the RASKIN at the rice mills (2011 – 3 months). The use of the same consultant in the second period depends on evaluation of the consultants first assistance by the consultant. This consultant will be recruited by BAPPENAS but will work with the project director and executive secretary on the final selection of the fortification technology, and its implementation. The consultant will:

1. Evaluate options for an iron fortificant compound including projected costs, efficacy, and consumer acceptance;

Appendix 9 38

2. Define a proposed fortification level for RASKIN rice, sufficient to provide 30%–50% of the World Health Organization’s (WHO’s) estimated average requirement (EAR) for iron to RASKIN recipients;

3. Identify the capacity building/human resource needs for the most cost-effective domestic production of fortified rice premix or concentrate;

4. Assess the training and equipment needs of rice mills supplying the RASKIN program in the two project districts in West Java;

5. Help the project management and executive secretary reach a formal agreement for technical support with a technology partner experienced in the new extrusion technology for rice fortification;

6. Work with project secretariat to help build awareness and consensus among partners for rice fortification including PERUM BULOG, MOA, BPOM, and MOH;

7. Establish the regulatory basis for iron fortification in the RASKIN program, based on a ministerial decree from the SNI3 of the Ministry of Industry; and

8. publish and disseminate technical guidelines for rice fortification in Indonesia 9. Facilitate and contribute to the coordination and communication among relevant ministries

including BAPPENAS, MOA, MOHA, MOH as well as Local Government and BULOG as well as all other concerned institutions, including NGO’s (KFI, MI) and training institutions (SEAMEO) that will be assisting the Project;

10. A team player that enjoys building capacity in the project secretariat to continue on with many of their technical functions to insure that a high level of technical support to the project is maintained after the consultancy has ended.

Deliverables:

1. Inception report at end of first week. 2. Project report at end of consultancy 3. Appropriate Rice fortification technology identified 4. Capacity build needs and assessed and training plan developed for rice mills supplying RASKIN

rice in the project areas 5. Rice Fortification Guidelines 6. Policy issues that need to be addressed by the project in bringing the project up to scale

nationally. Qualifications:

1. Experience in managing fortification projects, particularly iron fortification of rice. 2. Ability to communicate, write and read in Indonesian and English. 3. Proficiency on computer, and ability in all standard Micro-soft office applications. 4. Ability to motivate and get along with young dynamic staff. 5. Commitment to good governance. 6. Commitment to improving the nutritional status of Indonesia, particularly the poor and


Duration of Assignment (International Consultant) – 3 months Duration of Assignment (Domestic Consultant) – 2 months

2. Milling quality assurance consultant (International Consultant one person)

3 SNI or Standard Nasional Indonesia is the standard set by the government for fortified products. Initially it should be

established for the Raskin from the two districts, but should be flexible enough to accommodate a wider distribution of fortified RASKIN

Appendix 9 39

Iron Deficiency Anemia has long been known to be one of the most prevalent forms of micronutrient malnutrition in Indonesia. It reduces capacity of workers to be productive, students to learn, and increases the risk of mothers in childbirth and delivery, as well as reducing her capacity to take good care of her family. The project will require three months of milling and quality assurance consultant. This expert is expected to assist with the technical insuring that fortified rice is produced according to the Guidelines developed by the Fortification consultant, and that the quality of the rice does not deteriorate during storage or distribution. This consultant will be recruited by Bappenas and will work with the project director and executive secretary to assist the CMU on working with the rice mills to insure that fortification is being done according to the guidelines, and that packaging and labeling of the fortified Raskin is following the guidelines. One full-time domestic consultant will be engaged and be based at the CMU in BAPPENAS to support the Central Steering Committee and Central Implementation Unit by managing other members of the secretariat during the entire Project implementation period. The consultant will:

1. The consultant will work with BULOG and BPOM to insure that production of iron-fortified rice are subject to quality assurance procedures at the district level.

2. The consultant will work with project staff to insure that project areas rice warehouses implement appropriate inventory, storage, and delivery processes including special tags for iron fortified rice bags.

3. The consultant will help the project secretariat establish indicators of product quality, and help socialize producers and millers to quality control procedures.

4. Insure that Raskin rice is getting levels of fortification proposed by the fortification consultant. 5. Identify the capacity building/human resource needs for the most cost-effective quality control

activities; 6. Assess the training and equipment needs of rice mills supplying the RASKIN program in the two

project districts in West Java; 7. Work with project secretariat to help build awareness and consensus among partners for rice

fortification including PERUM BULOG, MOA, BPOM, and MOH; 8. Establish the quality control guidelines for industry and quality assurance guidelines for BPOM to

insure good quality of iron fortification in the RASKIN program 9. Facilitate and contribute to the coordination and communication among relevant ministries

including BAPPENAS, MOA, MOHA, MOH as well as Local Government and BULOG as well as all other concerned institutions, including NGO’s (KFI, MI) and training institutions (SEAMOEO) that will be assisting the Project;

10. A team player that enjoys building capacity in the project secretariat to continue on with many of their technical functions to insure that a high level of technical support to quality control and quality assurance is maintained after the consultancy has ended.

Deliverables:

1. Inception report at end of first week. 2. Project report at end of consultancy 3. Quality control, quality assurance guidelines for Rice Mills, BULOG, and BPOM. 4. Policy issues that need to be addressed by the project in bringing the project up to scale

nationally. Qualifications:

1. Experience in managing fortification projects, particularly iron fortification of rice. 2. Ability to communicate, write and read in Indonesian and English. 3. Proficiency on computer, and ability in all standard Micro-soft office applications. 4. Experience with quality control quality assurance activities in rice milling.

Appendix 9 40

5. Ability to motivate and get along with young dynamic staff. 6. Commitment to good governance. 7. Commitment to improving the nutritional status of Indonesia, particularly the poor and

disadvantaged. 8. Ability to work in a team. Duration of Assignment – 3 months

3. Social Marketing and Advocacy consultant (Domestic Consultant – one person)

Iron Deficiency Anemia has long been known to be one of the most prevalent forms of micronutrient malnutrition in Indonesia. It reduces capacity of workers to be productive, students to learn, and increases the risk of mothers in childbirth and delivery, as well as reducing her capacity to take good care of her family. The goal of this consultant is to design an approach to create awareness of the benefits of iron-fortified rice among decision makers in the national, provincial and district local governments, and among RASKIN recipient households in the project areas. Throughout project implementation, advocacy will be carried out with the national and local governments, and the public and private sectors. Advocacy will be directed at village leaders in the 12-20 villages supplied with iron-fortified rice to ensure their participation, and positive response to the fortified product. RASKIN recipients will be informed through public education about the adverse affects of iron deficiency anemia and the benefits of consuming iron fortified rice. The consultant needs to help analyze baseline data on consumer orientation toward rice quality, and rather or not the consumer behavior change communication strategy is effective among target populations. The social marketing advocacy activities need to have adequate monitoring and evaluation so that mid-course corrections can be taken to improve the impact of the social marketing activity. The social marketing consultant must think through the stages necessary to bring fortification of Raskin to the national stage in Indonesia, and develop a cost-effective approach toward “motivating” consumers to demand fortified rice products. The consultant must develop specific recommendations for expanding rice fortification in the RASKIN. The results will be discussed and disseminated at workshops and consultation meetings with the public and private sectors, and two national roundtable meetings on rice fortification.

1. The consultant will design a social marketing strategy to encourage consumers to demand fortified RASKIN.

2. The consultant will design a schedule of advocacy for national, provincial, district level, and village level government officials to help them understand the need for fortified RASKIN.

3. The consultant will help the project secretariat establish indicators of social marketing performance, and work with the project secretariat in developing and instituting social marketing activities.

4. Identify the capacity building/human resource needs for the most cost-effective social marketing/advocacy activities;

5. Introduce anemia control awareness into community health programs, and develop the ability of various community health workers to promote fortified RASKIN;

6. Work with project secretariat to help build awareness and consensus among partners for rice fortification including PERUM BULOG, MOA, BPOM, and MOH;

Appendix 9 41

7. Help in the analysis of baseline consumer preference data in order to develop more precise social marketing approaches.

8. Facilitate and contribute to the coordination and communication among relevant ministries including BAPPENAS, MOA, MOHA, MOH as well as Local Government and BULOG as well as all other concerned institutions, including NGO’s (KFI, MI) and training institutions (SEAMEO) that will be assisting the Project;

9. A team player that enjoys building capacity in the project secretariat to continue on with many of their technical functions to insure that a high level of technical support to social marketing and advocacy is maintained after the consultancy has ended.

Deliverables:

1. Inception report at end of first week. 2. Project report at end of consultancy 3. Advocacy approaches for different levels of government. 4. Social marketing strategy for local consumers to build demand for fortified RASKIN. 5. Social Marketing approaches for bringing the project up to scale nationally.

Qualifications:

1. Experience in managing social marketing for fortification projects, particularly iron fortification projects.

2. Ability to communicate, write and read in Indonesian and English. 3. Proficiency on computer, and ability in all standard Microsoft office applications. 4. Experience with working with molding consumer preferences and orientation toward food

preferences. 5. Ability to motivate and get along with young dynamic staff. 6. Commitment to good governance. 7. Commitment to improving the nutritional status of Indonesia, particularly the poor and


Duration of Assignment – 1 months 4. Legislative regulatory consultant (Domestic Consultant one person)

Iron Deficiency Anemia has long been known to be one of the most prevalent forms of micronutrient malnutrition in Indonesia. It reduces capacity of workers to be productive, students to learn, and increases the risk of mothers in childbirth and delivery, as well as reducing her capacity to take good care of her family. The goal of this consultant is help enact Indonesian standards for RASKIN fortification, particularly as the project moves from demonstration project toward a national project. The consultant will work with the Project secretariat to work with the MOI, Director General of Food and Chemical Industries set up appropriate fortification standards for the demonstration project. While most fortification levels in Indonesia are established through Ministerial decree from MOA, because of the political nature of the RASKIN program, a political response, or law might also be required to get the project to a national program. The consultant will work with project management and BULOG to determine the appropriate level of response to institutionalizing this program.

Appendix 9 42

1. The consultant will help establish provisional SNI for the demonstration rice fortification project. 2. The consultant will help design the road map of meetings with the MOI for development of SNI for

RASKIN Fortification. 3. Work with project secretariat to help build awareness and consensus among partners for rice

fortification including PERUM BULOG, MOA, National Agency for Drug and Food Control (BPOM), and MOH;

4. Facilitate and contribute to the coordination and communication among relevant ministries including BAPPENAS, MOA, MOHA, MOH as well as Local Government and BULOG as well as all other concerned institutions, including NGO’s (KFI, MI) and training institutions (SEAMEO) that will be assisting the Project;

5. A team player that enjoys building capacity in the project secretariat to continue on with many of their technical functions to insure that a high level of technical support to the establishment of standards, and ensure that the capacity is there for pushing for mandatory national standards is in place at the end of the demonstration project.

Deliverables:

1. Inception report at end of first week. 2. Project report at end of consultancy 3. A road map for project standard setting. 4. A strategy for establishing national mandatory fortification standards for RASKIN at the end of the

project. Qualifications:

1. Experience in establishing fortification standards, particularly iron fortification. 2. Ability to communicate, write and read in Indonesian and English. 3. Proficiency on computer, and ability in all standard Micro-soft office applications. 4. Experience with establishing national legislation. 5. Ability to motivate and get along with young dynamic staff. 6. Commitment to good governance. 7. Commitment to improving the nutritional status of Indonesia, particularly the poor and


Duration of Assignment – 3 months

Appendix 10 43

SELECTION METHODS FOR CONSULTING SERVICES 1. Individual Consultant Individual consultants may be recruited directly (independent individual) or through and organization, such as a consulting firm, an academic institution, a government, or an international agency by the EA or ADB. Individual consultants are recruited on the basis of their qualifications for the assignment. The recruitment of consultants should be in accordance with the Guidelines on the Use of Consultants. Below is the flowchart for recruiting individual consultants for grant project assignment.

Appendix 10 44

2. Firm/NGO a. Consultants' Qualifications Selection (CQS) This method mayb be used for small assignments (usually less than $200,000) where (i) highly specialized expertise is required for the assignment and recruitment of "boutique" consulting firms that provide depth of expertise in specific areas is contemplated; (ii) recruitment time is critical and the assignment is, typically, short-term; (iii) few consultants are qualified; and (iv) the preparation and evaluation of competitive proposals is not justified. The EA or ADB shall (i) prepare the TOR, (ii) request amplified EOIs and information on the consultants' experience and competence relevant to the assignment, (iii) establish a shortlist of at least three firms, and (iv) select the firm with the most appropriate qualifications and references based on the EOIs. The selected firm shall be asked to submit a combined technical-financial proposal and then be invited to negotiate the contract. Should negotiations fail, the borrower or ADB shall start negotiations with the next ranked firm until an agreement is reached. b. Single Source Selection (SSS) This method does not provide the benefits of competition in regard to quality and costs, lacks transparency in selection, and could encourage unacceptable practices. Therefore, SSS shall be used only in exceptional cases. The justification for SSS shall be exmained the context of the overall interest of the client and the project, and ADB's responsibility to ensure economy and efficiency and provide equal opportunity to all qualified consultants. SSS may be appropriate only if it presents a clear advantage over competition: (a) for tasks that represent a natural continuation of previous work carried out by the firm, (b) in emergency cases, such as in response to disasters, (c) for very small (not exceeding $100,000) assignments, or (d) when only one firm is qualified or has experience of exceptional worth for the assignment. When continuity of downstream work is essential, the initial Request for Proposal (RFP) shall outline this project, and, if practical, the factors used for the selection of the consultant shall take the likelihood of continuation into account. Continuity in the technical appoach, experience acquired, and continued professional liability of the same consultant maymake continuation with the initial consultant preferable to new competition subject to satisfactory performance in the initial assignment. For such downstream assignments, the EA shall ask the initially selected consultant to prepare technical and financial proposals on the basis of TOR furnished by the A, which shall then be negotiated. If the initial assignment was not awarded on a competitive basis, or if the downstream assignment is substantially larger in value, a competitive process acceptable to ADB shall normally be followed in which the consultant carrying out the initial work is not excluded from consideration if it expresses interest. ADB will consider exceptions to this rule only under special circumstances and only when a new competitive process is not practicable.

The EA may also refer to ADB's consulting services guidelines and related documents from ADB website:

http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf http://www.adb.org/consulting/default.asp http://www.adb.org/Documents/Manuals/PAI/default.as

Appendix 11 45

DISBURSEMENT PROCEDURES

1. Establishment of Imprest Accou7nt. The EA shall, for the purpose of this project, open and maintain an Imprest Account at a designated commercial bank for the deposit of JFPR funds and for making payments for Project expenditures, following detailed arrangements and actions agreed upon by the Government and ADB in accordance with ADB’s Loan Disbursement Handbook (January 2007 revised edition). 2. Payments out of the Imprest Account shall be made exclusively for eligible expenditures in respect of the reasonable cost of goods and services required for the project. These payments will be financed from the proceeds of the JFPR Grant. The Imprest Account shall be denominated in US dollars. 3. Delegation of Authority for Withdrawal Applications. The Government delegates full authority to the EA to sign all applications for withdrawal of the JFPR Funds and to receive payment for all JFPR Funds. Such funds shall be deposited directly into the Imprest Account established by the EA. 4. Initial Advance and Ceiling. Before the submission of the first withdrawal application, MOF should submit to ADB sufficient evidence of the authority of the persons(s) who will sign the withdrawal applications on behalf of MOF, together with the authenticated specimen signatures of each authorized person. EA may request an initial advance from ADB based on approved contracts and planned expenditures to be paid through the imprest account for the first 6 months of the project or 10% of the grant amount, whichever is lower. The initial advance, in any event, is not to exceed the approved ceiling which can be mutually agreed by ADB and EA. 5. Replenishment and Liquidation. When applying for replenishment, the EA needs to submit a withdrawal application with statements of expenditure attached together with supporting documents deemed necessary and other evidence as ADB shall reasonably request, and showing that each payment was made for eligible expenditures. Any individual payment to be reimbursed or liquidated/replenished under the SOE procedure shall not exceed the equivalent of $5,000. Supporting documents do not need to be submitted (unless requested by ADB) for expenditures below the SOE ceiling. Full supporting documents should be submitted, i.e., contract or PO, invoice, bill, or proof of payment if the individual payment to be reimbursed/liquidated is greater than $5,000. 6. Withdrawal application must be prepared in the currency of the Account (US$) and should be submitted to ADB together with SOE sheet, imprest account reconciliation statement (supported by bank statement which shows the balance of the imprest account. Details of debit entries of such bank statements of Imprest Account should be shown on the statement of separate sheet and an imprest account reconciliation statement. 7. Accounts and Records. The EA shall ensure that all amounts received for or in connection with the Imprest Account and amounts withdrawn are recorded in a separate account in accordance with consistently maintained sound accounting principles. Upon receipt of monthly bank statements, the EA should reconcile its records against the bank statements and follow-up on any un-reconciled entries. The EA shall retain until one year after Closing Date for withdrawals from the JFPR Account or such other date as ADB may agree, all accounts and records including orders, invoices, bills, receipts and other original documents evidencing the expenditures paid out of the Imprest Account. The EA shall also maintain record of expenditures incurred under the project which are not financed through the imprest account. The EA shall enable ADB’s representatives to examine such accounts and records during disbursements and review missions. 8. On a quarterly basis, the EA will prepare a Physical Progress Report and Project Expenditures from all the implementing agencies as well as the Quarterly Project Expenditures (SOE-3 form). ADB will

Appendix 11 46

reserve the right not to replenish the Imprest Account if ADB has not received the latest quarterly report of the project. The EA shall cause an adequate independent auditor or government auditor acceptable to ADB to periodically audit the Imprest Account and SOE procedures and furnish the audit report thereon to ADB not later than 6 months after the end of each fiscal year. 9. Ineligible or Unjustified Payment. Where any withdrawal or payment from the Imprest Account is determined by ADB (i) to have been utilized for any purposes not eligible, or (ii) not justified by the evidence furnished, the EA shall promptly upon notice from ADB and unless otherwise agreed by ADB, prior to any further replenishments, deposit into the Imprest Account an amount equal to the amount of such payment to the portion thereof not so eligible or justified, in the same currency as that in which the amount was withdrawn from the JFPR Account. Alternatively, ADB may offset the unjustified payment against new withdrawal application for reimbursement. 10. Treatment of Interest Earned on Imprest Account. Any interest earned on the Japan Fund for Poverty Reduction imprest account can be used for the project subject to ADB’s approval, within the approved total amount of JFPR. Upon completion of the JFPR project and before closing of the JFPR account, any unutilized interest should be returned to the JFPR account maintained at ADB. If the remittance fee and other bank charges are higher than the amount of interest earned, there will be no need to return such interest to the JFPR account maintained at ADB. 11. Closing of the Imprest Account. Upon determination that the project components to be financed with payments from the Imprest Account are near completion, ADB may reduce the amount of any replenishment as ADB may deem appropriate with a view towards gradually closing the Imprest Account. 12. In the event that (a) ADB determines that the amount outstanding in the Imprest Account will not be required to cover eligible expenditures, or (b) any amount remains outstanding in the Imprest Account after the Closing Date specified in the JFPR Agreement, the EA shall, promptly upon notice from ADB, and unless otherwise agreed by ADB, refund to ADB such amount then outstanding in the Imprest Account. 13. ADB may at any stage by notice to the EA suspend further replenishments to the Imprest Account if the EA has failed to comply with any of the provisions of this Appendix.

Appendix 12 47

INSTRUCTIONS FOR PREPARING WITHDRAWAL APPLICATION FOR IMPREST FUND

A. General Instructions 1. Submit signed withdrawal application (W/A) to the Bank/Resident Mission in duplicate. Number W/As consecutively, not exceeding 5 characters followed by the last two digits of the year (e.g. 00001 to indicate the first W/A). When application is completed, verify completeness of supporting documentation and accuracy of details before passing to the authorized representative(s) for signature. Mistakes and omissions result in delayed payment. A separate W/A is required for each different currency. 2. Withdrawal applications, SOE forms, etc. can be downloaded on the adb.org website:

http://www.adb.org/documents/handbook/loan_disbursement/)

B. Withdrawal References 3. On the upper right hand side, enter date as signed by the authorized representative(s) and fill out JFPR Grant Number, application number (example Withdrawal Application No. 00001) and type of disbursement (initial advance, increase in ceiling or replenishment). C. Supporting Documents 4. Supporting documents such as billing or original invoices, receipts or other supporting documents acceptable to ADB should be attached to each individual payment above the SOE ceiling to substantiate the expenditures for which the advance under the Imprest Fund was used. D. Estimate of Expenditures Sheet (SOE) 5. Estimated expenditures should normally be based on the financial budget approved by ADB. As provided in paragraph 13(d) of the Letter of Agreement, “Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed $5,000.” No supporting documents are required to be submitted for those expenditures below the SOE ceiling, unless requested by ADB. For every liquidation and replenishment request of the imprest account, the EA will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Acccount Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the EA's records. E. Payment Instructions 6. The full name and address of the payee’s bank (including the designated bank, if any), must be clearly indicated, along with the account number and SWIFT code, if the payee’s bank is a member. The payee’s full name and address must also be indicated. 7. Where payment is to be made to a bank not located in the country of currency to be paid, indicate its correspondent bank’s full name and address, along with the account number and SWIFT code, if the payee’s bank is a member. 8. For Special Payment Instructions, indicate any particulars special instructions, or references to facilitate payment or identification of payment.

Appendix 12 48

9. Please indicate in the withdrawal application the name, address, bank account details of a correspondent bank if the Payee’s Bank is not located in the country whose currency is claimed (enter the name and address of their bank’s correspondent in the country whose currency is to be paid). 10. The Name of the Executing Agency, as it appears in the Letter of Agreement, is the National Development Planning Agency (BAPPENAS). 11. Only the authorized representative(s)’ signature will be honored. If the authorized representative(s) has been changed, the EA should convey the change to ADB prior to lodging the W/A.

Appendix 13 49

Appendix 14 50

Appendix 14 51

Appendix 14 52

SOE-3 Form

PAYMENT VOUCHER

No. Name of Payee: Paid: (currency and amount) (amount in words) To: (name of recipient) Purpose: By: Check number Cash Prepared by: name and signature date Authorized by: name and signature date Received by: name and signature date

Appendix 14 53

MONTHLY PROGRESS REPORT OF RECEIPTS & EXPENDITURES SOE-1 FORM Name of NGO: ____________________________________ From the Month of _____________to ______________

Category

(1)

Previous month

(2)

This Period

(3)

Cumulative total for the year

(4)

Cumulative Project total

(5)

Description

RECEIPTS

JFPR Funds received Government contributions Contributions from the poor Contributions from civil society Others Donation in kind*

TOTAL RECEIPTS

EXPENDITURES

Civil works Equipment, machinery, and other capital costs Supplies Training, workshops, seminars Consulting services Project management NGO services Others Donations in kind*

TOTAL EXPENDITURES

BALANCE

BALANCE CASH ON HAND AND AT THE BANK

Prepared by: Approved by:

_____________________ ___________________

Project Accountant Project Director This copy is retained by the GIU or EA for reference. If there is more than 1 payment or check please list all check numbers in a separate sheet. * Only matching entry

(This form is submitted by the NGO to GIU.)

Appendix 14 54

CONSOLIDATED STATEMENT OF ACCUMULATED RECEIPTS AND EXPENDITURES SOE-2 FORM

From the beginning of the Project to ______________ (date)

Category

(1)

Previous month

(2)

This Period

(3)

Cumulative total for the year

(4)

Cumulative Project total

(5)

Description

RECEIPTS

JFPR Funds received Government contributions Contributions from the poor Contributions from civil society Others Donation in kind*

TOTAL RECEIPTS

EXPENDITURES

Civil works Equipment, machinery, and other capital costs Supplies Training, workshops, seminars Consulting services Project management NGO services Others Donations in kind*

TOTAL EXPENDITURES

BALANCE

BALANCE CASH ON HAND AND AT THE BANK

Prepared by: Approved by: _____________________ ___________________ Project Accountant Project Director This copy is retained by the GIU or EA for reference. If there is more than 1 payment or check please list all check numbers in a separate sheet. * Only matching entry

Appendix 15 55

DECREE OF DIRECTOR GENERAL OF TREASURY NO. PER- 28/PB/2010

Appendix 15 56

Appendix 15 57

Appendix 15 58

Appendix 15 59

Appendix 15 60

Appendix 15 61

Appendix 15 62

Appendix 15 63

Appendix 15 64

REPORTING REQUIREMENTS

1. Description of Contents. Quarterly Progress Reports on the implementation of the Project should be prepared and submitted to ADB for the periods ending March, June, September and December, not later than thirty working days after the end of each reporting period, in a format comprising the following parts:

(i) Summary, (ii) Technical/Project Components, (iii) Financial Reporting, (iv) Management and Operation, (v) Other Miscellaneous Matters, and (vi) Conclusion.

The following paragraphs illustrate and highlight the type of information that ADB would like to receive on a semi-annual basis on the implementation of the project and the operation of the project facilities. 2. Summary. This part should contain a summarized version of the Project implementation status as detailed in subsequent part for immediate and ready reference. It should analyze original and revised schedules and actual achievements, shortfalls in terms of physical and financial targets and accomplishments, both during the reporting period and up to the next reporting period (preferably in terms of broad components of identifiable physical elements). It would also contain conclusions about the viability of the original (as indicated in the JFPR Paper) cost estimate and expected date of completion of the Project. 3. Technical/Project Components. The purpose of this part is to provide information on significant physical activities which took place during the reporting period with an assessment of progress achieved and a projection of progress expected to be achieved in the next reporting period. This should contain information at least in the following aspects:

(i) Physical works accomplished during the reporting period (ii) Comparison of the actual progress of activities as at the end of each reporting period

with that of the original forecast (iii) Changes in the original/ revised plan and schedules or deviations therefrom (actual or

expected), except that changes requiring ADB’s approval should be reported to ADB immediately and subsequently mentioned in the semi-annual report

(iv) Other changes, modifications, deviations or events which affected physical progress

during the reporting period which are likely to affect project implementation in the next reporting period.

4. Progress on each Project components should cover: (i) measures taken or planned to correct factors responsible for delay during the reporting period or which are likely to affect physical progress in the future; (ii) any delay or expected in the delivery of services and activities; and (iii) any unusual occurrences affecting the progress of the Project components.

5. Financial reporting. The annual financing plan for the Project and achievements in financial terms during the reporting should be supported by appendix/table. The details should at least cover the following:

Amount allocated from the JFPR Project $________________

Appendix 15 65

Amount contributed by Government through the EA in the annual budget $________________ Amount contributed by Civil Society $________________ Amount contributed by the community $________________ Total amount of funds received $________________ Amount of funds utilized to date (provide supporting schedules covering each component/sub component of the project) $________________ Balance of funds as at (date) $________________

6. A review of actual achievements during the reporting period and revisions of projected dates and amount in respect of contracts yet to be signed and activities yet to be done, with brief reasons for revisions should be made. 7. Management and Operation. This part meant to be descriptive and should highlight, among others: (i) actual or prospective changes in the organization of the EA and GIU, (ii) status of the project office, (iii) problems encountered, and (iv) measures taken and statement of the progress of such other activities, i.e. coordination with other implementing agencies. 8. Conclusion. The format of the Project and guidelines enunciated above are for guidance only and should be adjusted keeping view of the implementation status. The report will also summarize the main issues and findings.

Appendix 15 66

SUGGESTED OUTLINE FOR QUARTERLY PROGRESS REPORTS

1. Time Period (Quarterly Report Number)

2. Changes In Management

3. Budget/Loan Status

4. Financial Management System

5. General Procurement

6. Consultants And Staff

7. Organization Structure

8. Implementation 1. Identification Of Appropriate Technology

A Equipment And Supplies B Training, Workshops, And Seminars C Consulting Services D Other Project Inputs

2. Production And Distribution Of Fortified Rice A Equipment And Supplies B Training, Workshops, And Seminars C Consulting Services

3. Advocacy, Monitoring And Evaluation A Equipment And Supplies B Training, Workshops, And Seminars C Consulting Services D Other Project Inputs

4. Grant Management, Monitoring And Audit A Training, Workshops, And Seminars B Consulting Services C Project Management

9. Management Issues

Issue Corrective Action to be undertaken

Appendix 15 67

Report Section 2. Development Objectives

Objective Target Date Date Achieved Note

Impact Reduced iron deficiency anemia among the poor

Baseline Survey Anemia risk in children Endline Survey Anemia risk in children

Outcome Assessment of the feasibility, cost and impact of providing iron-fortified rice under the RASKIN program in the project areas.

Number of RASKIN beneficiaries: a. 800,000 Individuals b. 200,000 Household Consuming fortified rice rice.

Output 1 Identified appropriate rice fortification technology

a. At least two alternative technology options and their cost identified; b. formal agreement reached with a technology partner

Output 2 Strengthened capacity for the production and fortification of rice with iron

a. At least 80% of RASKIN households increase their daily intake to 30-40% of WHO EAR b. Rice Fortification technology adopted in at least six mills and staff trained in new technology

Output 3 Increased awareness of the benefits of fortified rice

a. At least 70% of target households know about the adverse impact of IDA. b. Draft Stragtegy for expandeing fice fortification developed

Output 4 Strengthened grant implementation and monitoring and evaluation

a. Detailed implementation and monitoring guidelines are developed for Bulog Karawang

Appendix 15 68

Section 3 Implementation Progress

Objective Target Date Date Achieved Note

Activities with Milestones 1. Indentify appropriate Rice Fortification 1.1. Recruit consultants 1.2. Conduct socialization workshops with public and private sector stakeholders 1.3. Evaluated options for introduction of iron fortificant compound 1.4 Assess project costs and efficiacy. 1.5. Define proposed fortification level for RASKIN rice. 1.6. Assess capacity bu8ilding needs for cost-effective rice fortifaction production 1.7. Develop technical guidelines for rice fortification

2. Strengthen Capacity for the Production of Fortified Rice 2.1. Recruit consultants 2.2. Provide blending equipment to six mills 2.3. Train milling staff in blending technology 2.4. Repackage fortified Rice at warehouses 2.5. Develop quality assurance guidelines 2.6. Assess costs and benefits of rice fortification (

3. Raise Awareness of the Benefits of Fortified Rice 3.1. Recruit Consultants). 3.2. Undertake surveys on consumer awareness and perceptions 3.3. Organize workshops and roundtable meetings with public and private stakeholders

4. Strengthen Grant Implementation and monitoring and evaluation 4.1. Conduct baseline and final surveys 4.2. Conduct biological impact assessment 4.3. Conduct three external audits (annually). 4.4 Prepare midterms and final evaluation reports

Appendix 15 69

Section 4 Quarterly Report Financial Performance

For last quarter For this year

Expenditure category Allocation Expenditure Allocation Expenditure Balance Remaining

Component A: Assessment and Identification of New Technologies Equipment and Supplies Training, Workshops, and Seminars Consulting Services Other Project Inputs Component B: Capacity Building, Production, and Distribution Equipment and Supplies Training, Workshops, and Seminars Consulting Services Other Project Inputs Component C: Advocacy, Monitoring and Evaluation, and Scaling-Up Equipment and Supplies Training, Workshops, and Seminars Consulting Services Other Project Inputs Component D: Grant Management, Monitoring, and Audit Training, Workshops, and Seminars Consulting Services Project Management Total

Appendix 15 70

Table A11.1

Percentage of Project Implementation Progress4

No. Description Weight (a)

Progress (b)

Weighted Progress

(a)/(b) I

Component A: Identify Appropriate Technology for Rice Fortification

237,000 (11.8%)

II

Component B: Capacity Building, Production and Distribution of Fortified Rice

725,200 (36.3%)

III

Component C: Advocacy, Monitoring and Evaluation

390,000 (19.5%)

IV

Component D: Grant Management, Monitoring and Audit

379,000 (18.9%)

V Contingencies 268,800 (13.4%)

Total weight and progress

2,000,000

(100%)

4 Suggested format only.

Appendix 17 71

AUDIT REQUIREMENTS AND GUIDELINES

A. Audit Program 1. The audit process should closely examine the following aspects: (i) verification of any cash amount on hand (cash count included), (ii) review of the internal control system and records maintained to ascertain compliance with the agreed Imprest system, (iii) review of records and controls over daily collections, (iv) review of records and management system covering donations in kind, (v) cash receipts and payments books, (vi) review on test basis the accuracy of the Bank reconciliation statements, (vii) review and provide comments on the progress financial reports, (viii) review records of fixed assets (including work-in-progress) and on test basis verify their existence. 2. Cash Count. A review of the cash receipts and bank records together with a cash count shall be done to determine if various funds in the possession of the Fund Custodian are accounted for. Cash on hand shall be counted in the presence of the Fund Custodian on a per fund basis, noting the various denominations and accompanying receipts for expenses taken from the fund. Review the associated cash records to determine if the fund has been used according to the stated purposes. 3. A Cash Count Form shall be accompanied by the Auditor for signing by the Fund Custodian when the counted cash on hand has been returned intact. Entries shall be adjusted for any shortage of or excess cash. Any shortage in cash on hand shall be charged to the concerned staff. Excess cash shall be considered as other income requiring the issuance of an Official Receipt (OR). 4. Compliance with the Imprest System. Through walk-through-tests, check whether the Imprest System is being followed. The system requires all cash received to be receipted [using the project receipt book(s)], deposited intact or latest the following banking day. Should this practice prove to be impractical, determine whether cash collections are deposited within a reasonable period, which should not be later than three days. Ensure that all withdrawals (by cheque/cash) from the Imprest Account have been duly authorized by the authorized signatories and properly supported by documented proposals from the requesting agency/IA. Arrange for direct confirmation and/verification of bank records and balances. 5. Daily Collection Report. Compare and verify the information in the Daily Collection Report with the entries of the Cash Receipts Book and confirm the validity of the entries from issued Official Receipts (OR). Carefully note cancelled ORs and ensure that original and duplicate copies are intact. Ensure that daily receipts have been deposited daily (or at the latest three working days from when they were dated) to the appropriate bank account and bank deposit slips retained in chronological order. Review the supporting documents accompanying all withdrawals from this account to ensure they have been used for the intended purpose(s). 6. Donations in Kind. Ensure that non-monetary contributions are properly accounted for in a register that will identify the name of donor, date and details. This may be further verified from Receiving Reports and Confirmation Receipts signed by donors. 7. Cash Receipts Book. Determine whether proper columns (credits) are maintained, Official Receipts are chronologically recorded, and accounted for. One may also be able to observe the record of deposits from this book to the bank account (check bank deposit receipts). Be sure to establish the proper cut-off points. 8. Bank Reconciliation Statements. Perform sample tests to check if bank statements are regularly prepared. Compare actual book balance with bank balance; ensure that cash collections are not exchanged for Third Party Checks; and ensure that collections are deposited to accounts maintained

Appendix 17 72

according to purpose, i.e., amount collected for payment of livelihood loans should be deposited in the livelihood fund savings account. B. Cash Disbursements 9. Petty Cash or Check Voucher. The following documents should be checked to determine whether cash disbursements have been according to Project policies and guidelines. Do sample tests to ensure the following criteria are met:

(i) Vouchers have been properly accomplished; vouchers are pre-numbered (form SOE-4) and used consecutively; documents have complete explanations and references concerning the transaction paid. These explanations should be readily understandable to any individual reading the document.

(ii) All signatures required for the release of the amount are present; a “No approval, no

payment” policy is applied. (iii) Payee/Creditor acknowledges payment made. In cases where payment is claimed by

person/s other than named Payee/Creditor, proper authorization should be attached to the Voucher; payment should be supported by the proper receipts and other necessary documents that establish the legitimacy.

(iv) Disbursements are according to the approved Proposal. All disbursements are within the

approved budget. In cases where disbursements have exceeded approved budget expenditures, check whether proper approval was secured.

(v) Perform a test check on cancelled or used checks. Using the Check Vouchers, determine

whether the person or the company named in the voucher did cash the check. (vi) Check and verify journal entries made on vouchers for inappropriate or improper charging

accounts. Recommend adjusting the journal entries if necessary; recommend a thorough investigation on unauthorized disbursement and bring the matter to the attention of Project Management.

10. Cash Disbursement Book. Perform a test check to ensure that all Check Disbursement Vouchers are properly recorded and that columns in the Disbursement Book for debits and credits for the proper charging of accounts are adequate. Entries for all Check Vouchers and checks issued including the name of the Payee and a brief explanation of the payment must be accurate. The chronological recording of Check Vouchers, taking note of cancelled vouchers. All footings at month-end are entered in the General Ledger; individual accounts paid are entered in the Subsidiary Ledger. C. Other Financial Records 11. General and Subsidiary Ledgers. Cross-check entries to the general ledger from various books of original entry to ensure accuracy. Subsidiary Ledgers must be individually maintained for: (i) Major accounts such as individual work-in-progress civil works, individual categories of fixed assets (including depreciation) such as equipment, machinery, individual consultancy costs, food, medical care, educational materials and supplies, transportation, and local counterpart contributions in cash or kind, social security, (SSS) loans, and Cash Advances. This will allow the monitoring of actual balances at any given time. For non-moving Receivable accounts, Project Management shall remind the concerned staff through writing and exert efforts to collect the amount. Management may also suggest a payment scheme if necessary.

Appendix 17 73

12. Report of the External Auditor. The audit report must authenticate the reliability of the accounting records and systems on which the project's regular and annual financial reports are based, verify the actual physical progress of the project as reported from time to time and ensure that the funds provided through the JFPR project have been utilized in accordance with the project agreement. The auditors are also expected to provide an audit management report that will highlight: (i) issues identified during the current audit that each IA or the EA should address in order to improve the systems of accounting, recording, reporting and project implementation; (ii) use of imprest fund and SOE procedures; (iii) what courses of action have been implemented by Project Management to comply with previous recommendations of the External Auditor, (iv) note any improvement that resulted from the External Auditor’s recommendations, and (v) study the External Auditor’s report and discuss with Project Management existing areas of concern, e.g., uncollected accounts; long-standing, non-liquidated cash advances; or discrepancies in the External Audit Report. 13. Lapsing Schedule or Inventory List. Perform a sample test to determine whether property or equipment listed in the Lapsing Schedule is accounted for. Check if property and equipment can still be utilized and retire the asset from the record if it has fully depreciated. Fully depreciated assets that continue to be usable have to be reported in the Notes to the Financial Statement. 14. Unaudited Financial Statements. For Project Management decision-making purposes, annual Unaudited Financial Statements can be an effective tool as it provides management with a provisional report on the financial status of the Project. 15. Bank Passbooks. Compare withdrawals against savings and determine if deposits made to the account tally with deposit slips filed. Note Interest Income earned and check if it is reflected in the books. Determine who is responsible for keeping these documents and arrange for direct confirmation of bank balances.

Appendix 17 74

GUIDELINES FOR AUDITOR’S OPINION A. IMPREST ACCOUNT 1. The auditor’s statement regarding the imprest account should include the following information:

(i) That the auditor has examined the Statement of Imprest Account of ADB JFPR Grant No. 9132-INO: Rice Fortification for the Poor;

(ii) The period (to include dates) that the statement covers, pursuant to the JFPR Agreement

signed between the Government and the Asian Development Bank on 31 December 2009;

(iii) A statement which indicates that the auditor’s examination was made in accordance with

generally accepted auditing standards emphasizing the adequacy and completeness of the supporting documents of the Imprest Account and claims under SOE procedure and other auditing procedures as we considered necessary in the circumstances;

(iv) The auditor’s opinion, with regard to support the application for reimbursement/payment in

accordance with the Bank’s requirements as set out in the JFPR Agreement;

(v) Auditor’s signature and date. B. STATEMENT OF EXPENDITURE 2. The statement of expenditure should include the following information:

(i) That the auditor has examined the Statements of Expenditures submitted to the Bank during the period in support of applications for liquidation of the Imprest, pursuant to the above mentioned JFPR Agreement;

(ii) That the auditor’s examination was made in accordance with generally accepted auditing

standards, and, accordingly included such tests of the accounting records, verification of assets and other such auditing procedures considered necessary;

(iii) The auditor’s opinion, that the Statement of Expenditures submitted, together with the

internal control and procedures involved in their preparation, can/cannot be relied on to support the applications for liquidations in accordance with the requirements of the above mentioned Agreements;

(iv) Auditor’s signature and date.

Appendix 18 75

PERFORMANCE MONITORING SYSTEM GUIDELINES

1. The Project performance management and evaluation system comprises Benefit Monitoring and Evaluation (BME) and Performance Monitoring and Evaluation (PME). 2. Benefit Monitoring and Evaluation. BME aims to ascertain the impact of the Project on the beneficiaries. It will be carried out at the Grant Implementation Unit (GIU) level. GIU will be responsible for the BME with assistance from all concerned IAs and will follow the ADB BME guidelines. 3. At the beginning of the Project, a baseline survey will be carried out to record benchmark information against which progress will be measured. The benchmark information will describe the average socioeconomic characteristics of target beneficiaries, and information about the existing sanitation situation and related infrastructures in the area. 4. The indicators sought and the information to be evaluated will include the progress in the Project implementation according to components and the work plan. Delivery constraints will be identified and solutions sought. The BME will include information from all project implementation units under the Project. 5. Performance Monitoring and Evaluation. PME is built upon current performance recording and evaluation systems within the delivery organization(s)/IAs which record delivery of inputs and responses. PME will provide the basis for the more detailed information concerning delivery of inputs, mobilization of families and communities and their responses. 6. The information gathered through PME will be aggregated, analyzed and used for planning support service activities. Delivery activities will be recorded in terms of materials applications received, materials granted and responses, surveys returned, numbers of various activities (training and community education awareness campaigns) and other support activities carried out as well as other promotional activities such as advertisement, campaigns, mass meetings, etc. Capability will be developed to record and monitor trends using key indicators, e.g. infrastructure maintenance, solid waste management practice, and composting activities. The activities and respondents’ data from those assisted under the Project will be collected, recorded, evaluated and used under the BME. Any issues and concerns requiring changes in the Project design and implementation plans will be identified and resolved through PME.

Appendix 19 76

JFPR IMPLEMENTATION COMPLETION MEMORANDUM (ICM)5 BACKGROUND INFORMATION

A. Objective and Scope 1. The main objective of a JFPR Implementation Completion Memorandum (ICM) is to learn from the experiences of the Recipients, executing agencies (EAs), implementing agencies (IAs) and ADB in implementing grants, and to use the lessons learned to improve the performance of ongoing and future ADB-financed projects in poverty reduction. The ICM will also be used as a measure of ADB’s development effectiveness and as an input to country strategy formulation. An ICM

• evaluates the rationale for the JFPR; adequacy of preparation; appraisal and design; implementation arrangements; and performance of the recipient, EA, IAs and ADB, including how problems were handled, whether they were foreseen as potential risks, and the adequacy of the solutions adopted during implementation;

• provides a preliminary evaluation of achievements of the immediate objectives (purpose) and the impact and contribution to the overall objectives (goal);

• provides a preliminary evaluation of the sustainability of the grant interventions and benefits; and

• makes recommendations—based on the evaluation and lessons learned—for dissemination and scaling-up of the grant interventions for future ADB operations.

B. Timing and Preparation of ICM 2. An ICM is prepared within six months after Grant Closing Date6. 3. The Recipient (EA and/or IA) first prepares the ICM for self-evaluation and also helps with the preparation of ADB’s section of the ICM. If the Recipient’s contribution of the ICM is delayed and the grant implementation is considered complete, the division/country director concerned may, after consultation with the latest review mission and responsible project staff, decide to proceed with preparing ADB’s part of the ICM in the absence of the recipient’s section of the ICM. 4. When the grant implementation is approaching completion, an ADB review mission should agree with the Recipients on the outline and timing for the Recipient’s section of the ICM. Assistance in preparing the Recipient’s section of the ICM is usually a part of the terms of reference of the grant implementation unit (GIU). C. Length and Content of ICMs 5. Staff of the unit administering the grant (sector division, regional department or resident mission) must ensure that any problems or issues that arose during grant implementation are recorded in the ICM. Grant status reports and back-to-office reports (BTORs) prepared during preparation and implementation will provide the input for this. Such issues or problems should not go unnoticed and thus lessons ignored. Therefore, all ICMs are to be detailed. Appendixes are limited to those that are essential for explaining the text. 6. An ICM is kept concise by

5 Policy and procedures are based on the JFPR guidelines, topic 29, in combination with the principles of PAI 6.07 - Grant

Completion Report for ADB Loans. 6 Grant Closing Date is the date when all implementation, consolidation and other related physical activities end, as shown in

the JFPR Grant Proposal and the Letter of Agreement, up to a maximum of four years after JFPR grant effectiveness, including extensions.

Appendix 19 77

• concentrating on analyzing grant inputs and activities, implementation arrangements, costs, outputs, and impacts;

• focusing on the principal determinants of performance; • using condensed analytical tables and supporting appendixes; • using cross-referencing to source documents; and • avoiding repetition.

D. Intended Use of the Implementation Completion Memorandum (ICM) 7. ICMs are intended for use by and will be circulated to the

• The Government of Japan • Directors General and Directors of relevant departments, Divisions and offices; • Country director, RM concerned; and • Recipients, concerned DMC agency, executing and implementing agencies.

Appendix 19 78

IMPLEMENTATION COMPLETION MEMORANDUM (ICM)

I. BASIC INFORMATION

1. JFPR Number and Name of Grant:

2. Country (DMC): 3. Approved JFPR Grant Amount: $

4. Grant Type: Project / Capacity Building

5-A. Undisbursed Amount $

5-B. Utilized Amount $

6. Contributions from other sources {convert in-kind contributions into US$}

Source of Contribution: Committed Amount Actual Contributions: Remark - Notes:

DMC Government $ $

Other Donors (please name)

$ $

Private Sector $ $

Community/Beneficiaries $ $

7-A. GOJ Approval Date: 7-B. ADB Approval Date: 7-C. Date the LOA was signed (Grant Effectiveness Date):

8-A. Original Grant Closing Date: 8-B. Actual Grant Closing Date:

8-C. Account Closing Date:

9. Name and Number of Counterpart ADB (Loan) Project:

10. The Grant Recipient(s): {Names, address, contact persons, e-mail, phone, fax numbers of the agency(ies) and/or institutions that signed the Letter of Agreement with ADB}

11. Executing and Implementing Agencies: {Names, Address, Contact Persons, E-mail, Phone, Fax}

II. GRANT PERFORMANCE ASSESSMENT

Appendix 19 79

12. Description (Background rationale): {Extract information on background and rationale from the approved JFPR Grant Proposal and summarize}

13. Grant Development Objective and Scope: {Briefly describe the Grant Development Objectives (purpose) and scope (outputs and activities). Assess the relevance of the Grant design (including appropriateness of objectives, components, implementation arrangements and schedule) and formulation (including extent of stakeholders’ participation and ownership)}

14. Key Performance Indicators {list each original indicator as mentioned in the

approved JFPR Grant Proposal}

Accomplishments Rating

(HS,S,PS,U7)

Evaluation of each Indicator: {rate the accomplishments, describe

any changes and evaluate each indicator for its relevance,

achievements and sustainability} i)

ii)

iii)

iv)

v)

15. Evaluation of Inputs (Adequacy of formulation, terms of references, inputs and performance of the Recipient(s), EA, IA(s), NGOs and ADB, performance of consultants, other inputs, review missions):

{Evaluate, among others: (i) The economy of input provision (the relative cost of input provision); (ii) the productivity of the inputs (conversion into outputs); (iii) the quality of the inputs; (iv) reasons for deviating from planned inputs and activities; (v) client satisfaction with the inputs provided; (vi) the performance of ADB, the Recipient, the EA, IA(s) and NGOs as highly satisfactory (HS), satisfactory (S), partly satisfactory (PS), or Unsatisfactory (U); (vii) any other inputs.}

7 HS=Highly Satisfactory; S=Satisfactory; PS=Partly Satisfactory; U=Unsuccessful

Appendix 19 80

16. Evaluation of Outputs and Results (Reports generated, institution building, training, analysis of quality, comparison with terms of references, sustainability and exit strategy): {Evaluate performance issues, such as (i) efficiency in the production of outputs (cost and process);

(ii) effectiveness or efficacy (compare actual to planned results); (iii) quality of outputs (refer to qualitative benchmarks where possible); (iv) recipient and client (beneficiaries) satisfaction with the outputs/ results; (v) timeliness of delivery of outputs; and (vi) effectiveness of the exit strategy and related transfer of activities for sustainability.}

17. Overall Assessment and Rating (HS,S,PS,U):

{Provide an overall assessment including the issues of sustainability, and categorize the Grant activities as highly successful (HS), successful (S), partly successful (PS), or unsuccessful (U) following OED’s guidelines.}

18. Major Lessons Learned: {Discuss the significant lessons learned that can help improve the formulation and implementation of similar JFPR grant investments and as an input for recommendations and for scaling-up the pilot interventions under this Grant, particularly in relation to the overall objective of poverty reduction.}

19. Recommendations and Follow-up Actions: {Include project-specific and general recommendations (scaling up) of any interventions, activities and action required, and make suggestions for changes to policies and strategies that can improve the effectiveness of the counterpart loan, future JFPR grants, and/or that can generally be applicable to ADB practices.}

20. Additional Remarks, Comments and Suggestions:

{Present here any additional remarks, comments and suggestions that have not been dealt with or mentioned in earlier paragraphs, but which may contribute to this memorandum.}

Appendix 19 81

(a) III. PREPARATION AND APPROVAL

Prepared by: Name of Person and designation / Name of Institution/Signature (b) Date

1. Representative from the Recipient:

2. Manager, JFPR-PMU8:

3. Project Officer, ADB: {the Project Officer consolidates the inputs EA/IAs}

Approved Name of Person and designation / Name of Institution / Signature

1. Director General, Department, ADB:

2. Division/Country Director, ADB:

3. Head of the Recipient:

4. Head of the Executing Agency:

5. Head of Implementing Agency:

8 PMU – Project Management Unit

Appendix 20 82

SIGNED LETTER OF AGREEMENT

Appendix 20 83

Appendix 20 84

Appendix 20 85

Appendix 20 86

Appendix 21 87

LIST OF ADB REFERENCE MATERIALS

A. Project Related 1. JFPR Paper B. Consultants. May be downloaded from the following website: http://www.adb.org/Opportunities/Consulting/Documents.asp

2. Guidelines on the Use of Consultants by ADB and Its Borrowers C. Procurement. May be downloaded from the following website: http://www.adb.org/Opportunities/Procurement/prequalification-bid-documents.asp

3. Guidelines on Procurement under ADB Loans 4. Guide on Bid Evaluation 5. Standard Bidding Documents

D. Disbursement

6. Loan Disbursement Handbook E. General. May be downloaded from the following website: www.adb.org/integrity/default.asp

7. Anticorruption Policy 8. Anticorruption Policy: Description and Answers to Frequently Asked Questions 9. JFPR Guidelines: www.adb.org/JFPR/JFPR-Guidelines-2010.pdf 10. ADB e-Handbook on Project Implementation

http://www.adb.org/Documents/Handbooks/Project -Implementation/ 11.

Appendix 22 88

12. Bibliography

Alavi S, Bugusu B; Cramer G, Dary O, Lee TQ, Martin L, McEntire J, Wailes E; (2008); Rice Fortification in Developing Countries: A Critical Review of the Technical and Economic Feasibility, A2Z Project, Academy for Educational Development, 1825 Connecticut Avenue, NW, Washington, DC 20009

Angeles-Agdeppa I, Capanzana MV, Barba CV, Florentino RF, Takanashi K.; (2008); “Efficacny of iron fortified rice in reducing anemia among school children in the Philippines. Hoz, C, Porcayo M, Onofre G, Garcia-Guerra A, Elliot, Jankowski S, Greiner T (2008); "Efficacy of iron fortified ultra Rice in improving the iron stores of women in Mexicao". Food Nutr Bull. Ju 29(2):140-9. Moretti D, Zimmermann MD, Muthayya S, Thankachan P, Lee TC, Kurpad AV, Hurrell RF (2006); “Extruded rice fortified with micronized ground ferric pyrophosphate reduces iron deficiency in Indian School Children: a double-blind randomized controlled trial”. Am J Clin Nutr 2006 Oct; 84(4):822-9 Path (2007); “Introduction of Fortified Rice using the Ultra Rice Technology, Frequently asked questions. Path 1255 NW Leary Way, Seattle, WA 98107 USA. Path(2009); “Ultra Rice Research Summary Table July 17, 2009”. Path 1255 NW Leary Way, Seattle, WA 98107 USA. Florentino, R, and Pedro R, Rice fortification with iron in the Philippines. (2009)

Appendix 23 89

Anemia rates in Indonesia (RiskesDas 2007)

Biomedical data was collected from vena blood check of 80% respondents in cities. One of the results is anemia data. Anemia check to respondents’ blood specimen was carried out in district/city’s laboratory. The measurement covering Hemoglobin (Hb), MCV (mean corpuscular volume), MCH (mean corpuscular haematocrit), and MCHC (mean corpuscular haematocrit concentration). The last three mentioned above were measured to determine anemia types that can possibly predict the cause of anemia.

Appendix 23 90

Table 3.92

Average Rate of Hemoglobin Concentration of Urban People by Province, Riskesdas 2007

Children Adult Woman Adult Man (< 14 years)

Pregnant Mother

Average rate

Average rate

Average rate

Average rate

Province ∑ specim

en Hb (g/dl)

∑ specimen

Hb (g/dl)

∑ specimen

Hb (g/dl)

∑ specimen

Hb (g/dl)

NAD 288 13.06 168 14.54 115 13.11 1 North Sumatera 691 12.86 533 14.23 433 12.69 15 West Sumatera 483 12.76 322 13.8 315 12.31 8 Riau 73 12.74 39 14.85 41 12.43 1 Jambi 178 13.33 157 15.25 77 12.75 10 South Sumatera 246 13.15 219 14.48 103 12.83 5 Bengkulu 229 13.12 221 14.74 175 12.87 2 Lampung 313 12.82 305 14.22 199 12.79 4 Bangka Belitung 232 12.91 226 14.21 147 12.36 0 Kepulauan Riau 48 13.26 57 14.36 20 13.41 0 DKI Jakarta 685 12.6 485 14.37 366 12.1 15 West Java 1631 13.07 1471 14.76 1136 12.65 50 Central Java 1841 12.82 1617 14.53 1075 12.66 37 DI Yogyakarta 253 12.76 207 14.54 115 12.53 4 East Java 2236 13.25 1953 15.01 1299 12.96 28 Banten 327 13.13 307 15.16 169 12.9 5 Bali 833 13.35 736 15.02 556 12.97 6 West Nusa Tenggara 359 13.07 337 14.63 286 12.59 8 East Nusa Tenggara 184 13.61 160 15.58 170 12.76 4 West Kalimantan 239 12.8 182 14.51 173 12.53 2 Central Kalimantan 268 13.11 218 14.8 123 13.06 11 South Kalimantan 295 12.73 253 14.45 181 12.78 11 East Kalimantan 405 12.75 331 14.44 323 12.48 6 North Sulawesi 265 13.9 220 15.52 198 13.17 7 Central Sulawesi 157 13.28 125 15.17 123 12.55 1 South Sulawesi 594 12.97 483 14.56 396 12.54 20 Southeast Sulawesi 205 12.22 157 14.03 144 11.67 10 Gorontalo 86 12.48 75 14.18 57 12.79 0 West Sulawesi 70 13.17 58 15.14 66 12.79 3 Maluku 83 12.27 47 13.77 45 12.06 0 North Maluku 95 11.62 70 13.32 57 10.49 3 West Papua 41 13.5 28 14.21 44 12.78 0 Papua 39 13.05 42 14.07 24 13.1 1

Indonesia 13.972 13.00 11.809 14.67 8.751 12.67 278 11.81

Appendix 23 91

As many as 34.810 blood specimens were collected and examined of which 13.972 were blood specimens of adult women (> 15 years) without pregnancy, 11.809 blood specimens of adult men (> 15 years) and 278 blood specimens of pregnant mothers.

Table 3.92 is presenting examination result such as the average number of Hb for adult women and men, children, and pregnant mothers in cities by provinces. Nationally, the average Hb of adult women was 13.00 g/dl, adult men was 14.67 g/dl, children was 12,67 g/dl, and pregnant mothers was 11.81 g/dl.

With those numbers and standard deviation for each average number, normal Hb range has been determined in Riskesdas version for those groups mentioned above (Table 3.93).

To determine whether a person is suffering from anemia or not, national normal standard as attached in SK Menkes RI No. 736a/Menkes/XI/1989 is used. The standards are:

Hb for adult man : > 13 g/dl Hb for adult woman : > 12 g/dl Hb for children : > 11 g/dl Hb for pregnant mothers : > 11 g/dl

A person is confirmed to have anemia if Hb level is less than the above mentioned standard.

If we use average Hb obtained in Riskesdas, a person is confirmed to have anemia if the Hb is fewer than Hb national standard value for a particular group (adult women, adult men, and children) deducted 1 SD (X – 1SD).

Table 3.93 Normal Rate Range of Hemoglobin Concentration of

Adult Woman and Man, Children and Pregnant Woman, Riskesdas 2007

Group Average No. Hb (g/dl)

No SD (g/dl)

Average ± 1SD (g/dl)

Adult Woman 13.00 1.72 11.28 – 14.72

Adult Man 14.67 1.84 12.83 – 16.51

Children (< 14 years) 12.67 1.58 11.09 – 14.25

Pregnant Mother 11.81 1.55 10.26 – 13.36

Table 3.94 shows anemia prevalence in adult women (without pregnancy) and adult men as well as children by province, based on Riskesdas average and a confidence interval of 1 SD and standard value of SK Menkes No. 736 year 1989.

It is seen that there was a difference in anemia prevalence referring to both standards above. Respectively referred to normal standard in Riskesdas and SK Menkes were 11.3% and 19.7% for anemia in urban adult women, 12.2% and 13.1% for urban adult men, 12.8% and 9.8% for children. Additionally, from 33 provinces totally, pregnant mothers who became biomedical respondent (whose blood was collected) was reported as many as 278 persons (not presented in Table 3.94); 68 persons (24.5%) of them were suffering from anemia as referred to SK Menkes while it was 39 persons based on Riskesdas (14.0%).

The prevalence of anemia in general, after adjusted into women, men, and children can be seen in Table 3.95.

It seems that nationally, the national prevalence for anemia was 14.8% (referring to SK Menkes) and 11.9% (referring to Riskesdas). There were 20 provinces with higher anemia prevalence from national

Appendix 23 92

rate. An extremely high prevalence was found in Southeast Sulawesi and North Maluku based on the above standards.

Table 3.94 Prevalence of Anemia of Adult People in Urban area

By Province, Riskesdas 2007

Woman Man Children

Province

Anemia (%) SK Menkes

<12g/dl

Anemia (%) Riskesdas <11,28g/dl


<13g/dl



<11g/dl


NAD 20.1 10.4 16.1 15.5 7.8 12.2 North Sumatera 25.0 15.6 26.8 25.3 14.5 17.1 West Sumatera 29.8 16.6 27.6 25.8 17.1 19.0 Riau 28.8 16.4 5.1 5.1 9.8 12.2 Jambi 9.0 9.0 5.1 5.1 5.2 19.5 South Sumatera 16.3 9.3 17.4 16.4 12.6 16.5 Bengkulu 16.2 7.9 11.3 11.3 8.0 10.3 Lampung 25.9 12.5 21.6 21.0 5.5 6.0 Bangka Belitung 21.1 12.9 17.7 16.8 16.3 19.7 Kepulauan Riau 12.5 8.3 19.3 15.8 5.0 5.0 DKI Jakarta 27.6 13.6 14.6 13.8 18.6 19.7 West Java 13.4 13.4 7.4 7.4 6.4 18.8 Central Java 22.8 12.4 14.4 12.8 9.1 10.4 DI Yogyakarta 20.9 9.1 11.6 10.6 8.7 10.4 East Java 15.6 7.7 8.9 8.1 5.4 6.2 Banten 19.3 11.3 8.8 7.8 8.9 10.7 Bali 10.8 4.6 8.0 7.7 4.7 5.4 West Nusa Tenggara 20.9 9.7 13.6 11.9 11.5 12.6 East Nusa Tenggara 28.8 19.0 8.1 8.1 18.2 19.4 West Kalimantan 23.4 10.5 13.7 12.6 12.1 13.3 Central Kalimantan 19.4 14.2 13.3 13.3 8.1 9.8 South Kalimantan 21.7 12.2 14.2 14.2 3.9 5.0 East Kalimantan 24.2 12.6 17.5 14.8 14.2 14.9 North Sulawesi 8.7 4.5 5.0 5.0 2.5 3.0 Central Sulawesi 13.4 7.6 8.8 8.8 8.9 17.1 South Sulawesi 19.7 10.3 16.1 15.3 11.9 13.1 Southeast Sulawesi 38.0 19.5 23.6 20.4 31.9 34.7 Gorontalo 31.4 17.4 18.7 18.7 8.8 10.5 West Sulawesi 12.9 2.9 5.2 5.2 10.6 10.6 Maluku 43.4 20.5 14.9 14.9 17.8 17.8 North Maluku 27.4 24.2 24.3 24.3 26.3 26.3 West Papua 14.6 7.3 17.9 17.9 4.5 9.1 Papua 17.9 12.8 23.8 23.8 12.5 16.7 Indonesia 19.7 11.3 13.1 12.2 9.8 12.8

Appendix 23 93

Table 3.95 Anemia Prevalence of Adult People in Urban Area

by Province, Riskesdas 2007

Province Anemia Prevalence (%) (adjusted with group of

adult woman, adult man and children)

Refers to SK Menkes Refers to Riskesdas NAD 16.4 12.2 North Sumatera 22.7 19.0 West Sumatera 25.4 19.8 Riau 17.5 12.3 Jambi 6.6 9.2 South Sumatera 15.9 13.3 Bengkulu 12.1 9.7 Lampung 19.2 14.0 Bangka Belitung 18.7 16.0 Kepulauan Riau 14.4 11.2 DKI Jakarta 21.1 15.0 West Java 9.4 12.6 Central Java 16.4 12.0 DI Yogyakarta 15.0 9.8 East Java 10.7 7.5 Banten 13.0 9.8 Bali 8.2 5.9 West Nusa Tenggara 15.6 11.2 East Nusa Tenggara 18.7 15.6 West Kalimantan 17.1 11.9 Central Kalimantan 14.7 12.7 South Kalimantan 14.5 10.9 East Kalimantan 19.0 13.9 North Sulawesi 5.7 4.2 Central Sulawesi 10.6 10.8 South Sulawesi 16.2 12.5 Southeast Sulawesi 31.2 23.6 Gorontalo 21.1 16.1 West Sulawesi 9.6 6.1 Maluku 29.1 18.3 North Maluku 25.8 24.4 West Papua 11.5 10.6 Papua 18.9 17.9 Indonesia 14.8 11.9

Appendix 23 94

According to erythrocyte formation and color (morphology) , some types anemia are known as follow:

Woman:

Anemia Microcytic : MCV <96 fl (fitoliter)

Anemia Normocytic : MCV = 96 – 108 fl

Anemia Macrocytic : MCV >108 fl

Man :

Anemia Microcytic : MCV <96 fl (fitoliter)

Anemia Normocytic: MCV = 96 – 108 fl

Anemia Macrocytic: MCV >108 fl

Woman and Man :

Anemia Hypochromic : MCHC <33 %

Anemia Normochromic : MCHC = 33 – 36%

Anemia Hyperchromic : MCHC >36 %

And combination of all types above.

Micrcytic – hypochromic anemia commonly occurred because of iron deficiency, advanced chronic disease or lead. Normocytic-normochromic anemia is commonly caused by early phase chronic disease or acute bleeding while macrocytic anemia is normally caused by Vitamin B12 deficiency.

Table 3.96 shows most types of anemia that occurred in adults and children is microcytic hypochromic anemia (60.2%). If it is compared between children and adults, this anemia is higher among children. On the other hand, normocytic normochromic anemia was pirmarialy found in adult men. The most frequent anemia in pregnant mothers was microcytic hypochromic anemia (53% of pregnant mothers suffering from this type of anemia).

In addition to Hb level and anemia types, another examination like hemocyte check, erythrocyte check, leukocyte check, and thrombocyte check were also carried out (Table 3.97). The result of Hb check and erythrocyte check on pregnant mothers tends to show lower values than among other adult groups. In contrast, leukocyte level of pregnant mothers was higher.

__________________________________________________ 1 Microcytic = erythrocyte size < normal Normochrocytic = erythrocyte size is normal Macrocytic = erythrocyte size > normal Hypochrome = erythrocyte color is lighter than normal Normochrome = erythrocyte color is normal Hyperchrome = erythrocyte color is darker than normal

Appendix 23 95

Table 3.96 Proportion of various kinds of Anemia

On Adult And Children

Group

N Anemia*

Anemia (%) Microcytic

Hypochromic

Anemia Normocytic

Normochromic

Anemia Macrocytic

Anemia Others

Adult Woman 1581 59.9 0.8 11.3 27.9

Adult Man 1445 33.4 31.1 14.5 20.9

Children 1118 70.1 4.1 1.5 24.2

Pregnant mother 39 59 0 10.3 30.8

TOTAL 4183 60.2 4.3 14.2 21.4 *Anemia refers to standards proportion of Riskesdas

Table 3.97

Average Rate ± of 1SD Result of other Hematology Check Riskesdas 2007

Group Hematocryte (%)

Erythrocyte (mio/µl)

Leukocyte (thousand/µl)

Trombocyte (thousand /µl)

Children 1 – 4 years 31.0 – 40.0 4.2 – 5.4 6.1 – 12.1 221.8 – 444.25 – 14 years 29.2 – 46.8 3.3 – 6.5 6.0 – 10.2 259.0 – 379.0

Adult

Man 38.1 – 48.7

4.4 – 5.8

5.3 – 9.7 174.6 – 321.4 Woman 33.8 – 43.8 4.0 – 5.2 5.7 – 10.1 193.5 – 354.5

Pregnant mother 30.7 – 39.3 3.5 – 4.7 6.7 – 11.9 187.1 – 342.9

Table 3.98 describes the prevalence of anemia by age group, education, occupation, and household expenditure level per capita per month. In terms of age, the highest prevalence was found in under fives that was 27.7% followed by elderly group (above 75 years old) as much as 17.7%.

Based on educational level, with higher levels of education, anemia prevalence became lower. It was seen that housewives were experiencing the highest anemia prevalence. According to household expenditure level per capita, the quintile 1 group had highest prevalence (11%). Higher household expenditure level led to lower anemia prevalence.

Appendix 23 96

Table 3.98 Prevalence of Anemia Refers to Respondent’s characteristic

Riskesdas 2007

Respondent’s characteristic Anemia Age group (year)

1-4 27.7

5-14 9.4

15-24 6.9

25-34 5.5

35-44 6.2

45-54 6.6

55-64 7.7

65-74 10.4

75+ 17.7

Education

No Schooling 10.4

Unfinished Primary School 8.0

Finished Primary School 7.1

Finished Junior High 6.0

Finished Senior High 6.3

Finished University 5.5

Job Jobless 8.9 Student 6.6 House wife 10.0 Employee 5.1 Entrepreneur 4.5 Farmer/Fisherman/Labor 5.6 Others 7.0

Level of expenditure per capita Quintile 1 11 Quintile 2 10 Quintile 3 9 Quintile 4 7.9 Quintile 5 7.4