Metro Manila Bridges Project: Project Administration Manual

Metro Manila Bridges Project (RRP PHI 52181-001)

Project Number: 52181-001 Loan Number: LXXXX November 2021

Republic of the Philippines: Metro Manila Bridges Project

Project Administration Manual

ABBREVIATIONS

ADB – Asian Development Bank BBB – Build, Build, Build BMC-UPMO

– Bridges Management Cluster – Unified Project Management Office

CEMP – construction environmental management plan COA – Commission on Audit DPWH – Department of Public Works and Highways DED – detailed engineering design EMP – environmental management plan EMoP – environmental monitoring plan ESSD Environment and Social Safeguards Division GRM – grievance redress mechanism IEE – initial environmental examination MRT – Metro Rail Transit NCR – National Capital Region NEDA – National Economic and Development Authority O&M – operations and maintenance PDP – Philippine Development Plan

CONTENTS I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 5 A. Project Readiness Activities 5 B. Overall Project Implementation Plan 6

III. PROJECT MANAGEMENT ARRANGEMENTS 7 A. Project Implementation Organizations: Roles and Responsibilities 7 B. Key Persons Involved in Implementation 8 C. Project Organization Structure 9

IV. COSTS AND FINANCING 9 A. Cost Estimates Preparation and Revisions 10 B. Key Assumptions 11 C. Detailed Cost Estimates by Expenditure Category 12 D. Allocation and Withdrawal of Loan Proceeds 13 E. Detailed Cost Estimates by Financier 13 F. Detailed Cost Estimates by Outputs and/or Components 15 G. Detailed Cost Estimates by Year 16 H. Contract and Disbursement S-Curve 17 I. Fund Flow Diagram 18

V. FINANCIAL MANAGEMENT 18 A. Financial Management Assessment 18 B. Disbursement 20 C. Accounting 21 D. Auditing and Public Disclosure 21

VI. PROCUREMENT AND CONSULTING SERVICES 23 A. Advance Contracting 23 B. Procurement of Goods, Works, and Consulting Services 23 C. Procurement Plan 23 D. Consultant's Terms of Reference 23

VII. SAFEGUARDS 23 A. Environmental Safeguards 23 B. Involuntary Resettlement 27 C. Indigenous People 29

VIII. GENDER AND SOCIAL DIMENSIONS 29

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 31 A. Project Design and Monitoring Framework 31 B. Monitoring 31 C. Evaluation 33 D. Reporting 33 E. Stakeholder Communication Strategy 33

X. ANTICORRUPTION POLICY 39

XI. ACCOUNTABILITY MECHANISM 39

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 39

APPENDIXES 1. Procurement Plan 40 2. Outline Terms of Reference (i) Consulting Services for the Construction Supervision 42

(ii) Operations And Maintenance Capacity Building Consultant 79

3. Design and Monitoring Framework 82

4. Audited Project Financial Statements 85

Project Administration Manual Purpose and Process

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

The DPWH through the Bridges Management Cluster – Unified Project Management Office (BMC-UPMO) is wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by DPWH and BMC-UPMO of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

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

After ADB Board approval of the project's report and recommendations of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM.

I. PROJECT DESCRIPTION

A. Rationale

1. The proposed loan will finance the construction of three bridges crossing Marikina River as part of the government’s effort to address the increasingly severe traffic problem of Metro Manila. The project will also help to strengthen the capacity of the executing agency in project management and operation and maintenance (O&M) of bridges and crossing structures using a holistic approach, factoring in climate change and disaster risk considerations. 2. Macroeconomic context. The gross domestic product (GDP) of the Philippines grew by an average 6.6% per annum in 2015–2019 and the national poverty rate declined to 16.7% in 2018 from 23.5% in 2015, lifting about 6 million Filipinos out of poverty. The Philippines has also enjoyed remarkable growth in employment, which grew at an average of 4.6% a year from 2015 to 2019. This rapid expansion led to a significant reduction in informal employment. However, in 2020, the coronavirus disease (COVID-19) pandemic and the unprecedented community quarantine measures used to contain the outbreak drove the economy into recession for the first time since the Asian financial crisis in 1998. GDP contracted by 9.5% and progress toward poverty reduction was reversed in 2020. The pandemic wiped out 1.7 million wage and salary jobs in the 12 months to January 2021.1 In contrast, employment in the informal sector rose by about 435,000. There are concerns that the pandemic could have long-lasting macroeconomic effects on the economy by lowering long-term economic growth and employment rates. Within this context, infrastructure investments are critical as they can provide a significant economic stimulus and have a strong multiplier effect on GDP growth and employment. The Philippine Development Plan (PDP), 2017–2022 places a strong emphasis on accelerating infrastructure development to promote inclusive growth, reduce poverty, and diminish income inequality. 2 The government’s aspirations have been translated in its Build, Build, Build (BBB) program, a comprehensive infrastructure development program launched in 2017.3 The BBB program aims to raise public spending on infrastructure from 5.1% of GDP in 2016 to 7.0% of GDP by 2022 to attract investments, connect regions and markets, generate jobs, and spur economic growth through infrastructure development. 3. Metro Manila and importance of its quality road-based transport infrastructure to the economy. Metro Manila comprises 16 cities and one municipality and covers a total land area of 620 square kilometers (km2). It is the country’s economic powerhouse, accounting for more than 31.8% of GDP.4 The recent growth in the Philippines economy has been associated with a rapid increase in urbanization. The population of Metro Manila is currently 12.9 million and is expected to reach 14 million by 2030.5 The city’s transport systems have been improved and expanded through investments in road-based transport (roads and bridges), railways, and other mass transit systems in and outside Metro Manila (footnote 2). However, despite these efforts, transport facilities still require further improvement in quality, capacity, and connectivity.

1 Asian Development Bank (ADB). 2021. Asian Development Outlook 2021: Financing a Green and Inclusive

Recovery. Manila. 2 Government of the Philippines, National Economic and Development Authority (NEDA). 2017. Philippine

Development Plan, 2017–2022. Pasig. Government of the Philippines, National Economic and Development Authority (NEDA). 2021. Updated Philippine Development Plan, 2017–2022. Pasig, Manila.

3 Government of the Philippines. 2018. Build, Build, Build. Manila. 4 Government of the Philippines, Philippine Statistics Authority. 2020. The PSA Releases Results of the Overall

Revision and Rebasing of the Regional Accounts. Quezon City. 5 Government of the Philippines. Philippine Statistics Authority. 2019. The Philippines in Figures 2019. Quezon City.

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4. The continuous economic development and urbanization of Metro Manila have brought about heavy traffic congestion that causes substantial loss of time and opportunities for commuters and businesses. Metro Manila’s total road length is 4,889 km (1,166 km national roads and 3,723 km local roads), and includes a well-articulated trunk road network comprising radial (R-1 to R-10) and circumferential (C-1 to C-5) roads, with interchanges providing grade separations at several intersections of the trunk roads.6 However, the current traffic demand of 12.8 million trips per day is overwhelming the capacity of the network. Metro Manila has only 1 km of road per 385 motor vehicles in 2019, and most commuters in Metro Manila travel at 10 km per hour on average.7 The government has estimated that the country lost ₽3.5 billion per day in 2017 because of Metro Manila traffic, and projects that this would rise to ₽5.4 billion per day in 2035 if no action is taken.8 In addition to these losses, the congestion affects women disproportionately as they comprise 50.5% of the population in Metro Manila. Most women work in the informal sector and need to travel both for work and for domestic and care-work-related related reasons, often during off-peak times.9 The lack of safe paths and bridges, along with the absence of adequate lighting in areas where these modes of transport are used, leads to gender–based violence, assault, and sexual harassment. In Metro Manila, three in women have experienced sexual harassment in public places and during transit at least once in their lifetime.10 5. Inadequate capacity of the existing bridges in Metro Manila. One of the major factors contributing to the inefficiency of Metro Manila’s Road network is the inadequate capacity of the existing 30 bridges crossing its major waterways: Pasig River, Marikina River, and Manggahan Floodway. These bridges currently accommodate around 1.3 million vehicles per day, and were operated at or near capacity and an unstable level.11 It is critical that additional crossing structures are built over these waterways to decongest the existing bridges, reducing the risk that existing bridges will be overloaded. New bridges will help extend the life of existing bridges and reduce their maintenance costs, in addition to providing safer and more accessible bridge crossings. The government, through its Public Investment Program, 2017–2022, identified building up to 12 new Metro Manila bridges across the Marikina and Pasig rivers as one of the key investments to be made in the NCR.12 5 bridges out of the 12 proposed are financed by the Government of the People’s Republic of China while the Sta. Monica Lawton bridge is funded through local funds and is currently under construction. Traffic assignment modeling conducted as part of due diligence in 2021 projected that future traffic volume on the adjacent existing bridges would decrease by 16%–33% following construction of the three bridges under the project.13

6 Government of the Philippines, Department of Public Works and Highways. 2019. National Road Length of Paved &

Unpaved Roads and Functional Classification per Region. 7 Association of Southeast Asian Nations (ASEAN). 2020. ASEAN Statistical Yearbook 2020. Jakarta. 8 Government of the Philippines, National Economic and Development Authority. 2014. Roadmap for Transport

Infrastructure Development for Metro Manila and Its Surrounding Area (Region III and Region IV-A). Manila. 9 Philippine Statistics Authority (2018). NCR Gender Factsheet. Manila. 10 A. Cabral. 2017. The Invisible Ways We Experience Sexual Harassment. CNN Philippines. 28 March (updated). 11 Japan International Cooperation Agency. 2017. Conduct of Feasibility Study for Proposed 12 Bridges on Pasig-

Marikina River and Manggahan Floodway. Manila. 12 Government of the Philippines. NEDA. 2018. 2017–2022 Public Investment Program. Pasig. This 6-year

programming document, which accompanies the PDP, sets out priority programs and projects to be implemented by the government, including all BBB transport projects. Through the Public Investment Program, the government has approved several large transport infrastructure investments in the NCR to reduce congestion, environmental pollution and associated high transport and logistics costs. These include: (i) rehabilitating Metro Rail Transit (MRT) line 3; (ii) extending Light Rail Transit (LRT) lines 1 and 2; and (iii) constructing MRT line 7 and MRT line 4 (15 km Ortigas–Rizal line); (iv) constructing a Quezon City–NAIA subway; (v) building elevated pedestrian walkways known as EDSA Greenways; (vi) building up to 12 new Metro Manila bridges across Pasig and Marikina River and Manggahan Floodway; and (vii) constructing additional connector roads.

13 ADB. Consultancy Services to Undertake the Detailed Engineering Design for the Three (3) Priority Bridges Crossing Pasig-Marikina River and Manggahan Floodway Bridges Construction Project. Consultant’s report. Manila (Loan 3589-PHI).

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6. Climate change and disaster risks. Metro Manila and its surrounding areas are at high risk from disasters, including floods, tropical cyclones, and earthquakes. Climate change is set to increase the exposure of people and assets due to rapid urbanization in flood-prone riverine and low-lying areas. Only 41.63% of waterways and drainage systems are unclogged and desilted, which increases the time for floods to subside.14 When flooding occurs, women are more likely to be affected than men as they perform both productive and reproductive work in restoring their homes following climate-related or other disasters. The transport infrastructure, especially roads and bridges, bears the brunt of impacts from disasters and climate change. Obvious impacts on the transportation systems include traffic disruptions due to flooding, increases in pavement maintenance because of frequent flooding, overflowing side drains and cross drainage works, submerged bridges because of floods, inundation of coastal roads because of sea level rise, and road closures due to landslides.15 Other consequences include collapsed embankments, eroded slope protection, and collapsed bridge approaches. The damage and loss suffered by the transport sector as a result of two typhoons in 2009 was estimated to be ₽7,500 million.16 7. Capacity of concerned authorities. DPWH is responsible for the planning, design, construction, and maintenance of the national highways, flood control, and water resources development system, and other public works. Its capacity is considered adequate for its current role and responsibility. However, with the launch of the BBB program, it is anticipated that the department’s responsibilities will increase, including the O&M of large cable-stayed and suspension bridges. DPWH’s mandate is ensuring the safety and level of service of transport infrastructure adhering to international standards and practices, but its capacity will need to be strengthened for increasing responsibility.17 There is a need to pass on the technical, managerial, and leadership knowledge and skills acquired throughout the years to a new generation of staff.

8. ADB’s experience and lessons learned in the Philippine’s operations. ADB’s country partnership strategy (CPS), 2018–2023 for the Philippines takes a holistic programmatic approach and aims to increase synergies across ADB operations.18 The focus of the CPS was largely built on the lessons learned from the previous CPS, 2011–2016, the final review validation report for which recommended a more focused and programmatic approach in a limited number of business lines related directly to priority national programs.19 The CPS, 2018–2023 notes that ADB intends to add value to the financing it provides by helping the government design, prepare, and implement priority public investment projects under the BBB program. Accordingly, ADB has approved the Infrastructure Preparation and Innovation Facility (IPIF) to support DPWH and the Department of Transportation to prepare high-quality, large, and complex infrastructure projects under the BBB program and to strengthen the capacity of these agencies to implement the projects.20 Preparation of the proposed project was supported by the IPIF.

14 Business Mirror. 2019. Metro Manila Floods Are Getting Worse. 6 August. 15 For example, the flooding from Typhoons Ondoy and Pepeng in September–October 2009, which caused the

Marikina River system including the Manggahan Floodway to burst its banks, resulted in widespread impact on the transport infrastructure. Several roads were flooded and, in some places, were impassable for extended periods and several bridges were washed away.

16 Government of the Philippines. 2009. Typhoon Ondoy and Pepeng: Post-Disaster Needs Assessment. Manila. 17 Government of the Philippines, NEDA. 2017. Approving the National Transport Policy. NEDA Board Resolution No.

5. Pasig. 18 ADB. 2018. Country Partnership Strategy: Philippines, 2018–2023—High and Inclusive Growth. Manila. 19 Independent Evaluation Department. 2017. Philippines: Country Partnership Strategy Final Review Validation, 2011–

2016. Manila: ADB. 20 ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Technical Assistance

Loan to the Republic of the Philippines for the Infrastructure Preparation and Innovation Facility. Manila; and ADB. 2019. Report and Recommendation of the President to the Board of Directors: Proposed Technical Assistance Loan to the Republic of the Philippines for the Infrastructure Preparation and Innovation Facility-Additional Financing. Manila.

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B. Project Description 9. The project is aligned with the following impact: transport sector enhanced to sustain economic growth and increase global competitiveness (PDP, 2017–2022, footnote 2). The project will have the following outcome: improved efficiency of Metro Manila’s road network.21 10. Output 1: three bridges crossing Marikina River constructed. The proposed three bridges crossing Marikina River are: (i) Marcos Highway–St. Mary Avenue Bridge (“Bridge No. 1”), (ii) Homeowners Drive–A. Bonifacio Bridge (“Bridge No. 2”); and (iii) Kabayani Street–Matandang Balara Bridge (“Bridge No. 3”) with a total of 3,023.7 meters. These additional bridges will alleviate traffic congestion and increase vehicle speeds on the existing crossing facilities over the Marikina River by providing alternative routes to users, and by increasing the capacity of the road network in the project area. 11. The bridges will incorporate climate and disaster-resilient features so they will contribute to building a flood- and disaster-resilient road network in Metro Manila. Taking into consideration the high number of pedestrians injured or killed in Metro Manila, the bridges and their approach roads will include sufficient sidewalks and access routes. These will be gender-responsive22 and meet international safety standards for pedestrians, including persons with disabilities, children, older people, and women. The project will improve the living conditions of the people in the riverine areas and create a more dynamic economy by providing more access to other parts of Metro Manila. The project bridges will have approach roads connecting to multiple connecting roads, including major arterial roads, in order to ensure the new bridges do not create localized congestion. While most of the transport using adjacent bridges crossing the Marikina River is private (cars, taxis, and motorcycles) the project bridges will provide additional options for travel routes for public transport and contribute to the broader transport system. 12. Output 2: capacity of DPWH in bridge O&M strengthened. A capacity building program will strengthen DPWH’s capacity for the O&M of the bridges and crossing facilities. The program will include staff training and updating of the O&M manual. The training will be included in the project to ensure sufficient and sustainable capacity of DPWH in O&M for bridge and crossing structures, and an assessment and rehabilitation plan for the existing bridges and crossing structures in Metro Manila will be carried out. A separate mentoring program will be developed and implemented for at least 80% of female technical staff across DPWH. 13. Proposed Solutions. In line with the government’s Roadmap for Transport Development for Metro Manila and Its Surrounding Areas to alleviate the traffic congestion in Metro Manila (footnote 8), partly caused by the constrained capacity of the existing bridges, and the Strategic Framework to Accelerate Infrastructure Development in the Philippine Development Plan 2017–2022, the Project will construct three (3) bridges crossing the Marikina River, which will increase the capacity of the road network in the project area. These new bridges will be designed to be resilient to disasters such as flooding and the adverse impacts of global warming. Despite the very limited space available in highly urbanized area of Metro Manila, the locations and alignments of the new bridges were carefully selected to ensure that (i) they contribute significant impact on traffic decongestion; and (ii) they create minimum social and resettlement impacts in the project area.

21 The design and monitoring framework is in Appendix 3. 22 See note a in Table 1 for an explanation of gender-responsive design features in this context.

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14. Taking into consideration the high number of pedestrians injured or killed in Metro Manila, the bridges and their approach roads will include sufficient sidewalks and access that meet international safety standards for pedestrians including disables, children, elders and women. In addition, a program for strengthening the capacity of DPWH will be included in the Project to ensure sufficient and sustainable capacity of DPWH in O&M for bridge and crossing structures of the country. An assessment and rehabilitation plan for the existing bridges and crossing structures in Metro Manila will be carried out under this capacity strengthening plan.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 1: Project Readiness Activities

Indicative Activities

Months

Apr -21

May -21

Jun -21

Jul -21

Aug -21

Sep -21

Oct -21

Nov -21

Dec -21

Jan -22

Feb -22

Mar -22

Responsible Individual/Un

it/Agency/ Government

Advance contracting actions

X DPWH

Establish project implementation arrangements

X DPWH

ADB Board approval X ADB

Loan signing X ADB, DPWH, DOF

Government legal opinion provided

X DOJ

Government budget inclusion X DPWH, DBM Loan effectiveness X ADB

ADB= Asian Development Bank, DBM= Department of Budget and Management, DOF= Department of Finance, DOJ= Department of Justice, DPWH=Department of Public Works and Highways Source: Asian Development Bank

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B. Overall Project Implementation Plan

Table 2: Overall Project Implementation Plan

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 3: Organization and Roles Project Implementation Organizations Management Roles and Responsibilities National Economic and Development Authority

- Program and Project Monitor

Department of Public Works and Highways

- Executing agency - Approve procurement plans, procurement actions such as bid

evaluation and contract awards - Approve working drawings, design documents, engineering

designs and cost estimates - Carry out consultant selections for detailed design and

construction supervision consultants - Procure civil works contracts - Obtain necessary environmental approval(s) from DENR and

other relevant agencies/organizations prior to award of civil works contracts

- Prepare project financial statements and arrange annual independent audits

- Submit audited project financial statements and audit reports to ADB

Bridges Management Cluster-Unified Project Management Office

- Project implementing office - Ensure that project implementation complies with Government

environmental policies and regulations, ADB safeguard policy and provisions of the EMP included in the IEEs cleared by ADB

- Ensure that environmental protection and mitigation measures in the EMP are incorporated in the detailed design, included in bid documents, implemented and monitored

- Submit disbursement projections, request budgetary allocations for counterpart funds

- Ensure implementation of the Gender Action Plan - Ensure compliance with Government policies and loan covenants - Maintain project accounts

Asian Development Bank - Provides financing - Implementation monitoring

ADB = Asian Development Bank, DENR = Department of Environment and Natural resources; DOF = Department of Finance; EMP = environmental management plan; IEE = initial environmental examination. Source: Asian Development Bank.

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B. Key Persons Involved in Implementation Executing Agency Department of Public Works and Highways (DPWH) thru the Bridges Management Cluster-Unified Project Management Office (BMC-UPMO)

Officer's Name: Emil K. Sadain, CESO I Position: Undersecretary for UPMO Operations Telephone: (632) 5304-3555 Email address: [email protected] Office Address: DPWH Central Office Bonifacio Drive Port

Area, Manila Officer's Name: Rodrigo I. delos Reyes Position: Project Director Telephone: (632) 5304-3925 Email address: [email protected] Office Address: BOM 2 Bldg., DPWH NCR Compound, 2nd

Street, Port Area, Manila Asian Development Bank

Transport and Communications Division

Staff Name: Hiroaki Yamaguchi Position: Director Telephone: (632) 8632-6745 Email address: [email protected]

Mission Leader

Staff Name: Chaorin Shim Position: Transport Specialist Telephone: (632) 8632 - 4097 Email address: [email protected]

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C. Project Organization Structure

DPWH = Department of Public Works and Highways, NEDA = National Economic and Development Authority, DBM = Department of Budget and Management, DOF = Department of Finance, PS = Planning Service, IMS = Information Management Service, FS = Finance Service, HRAS = Human Resource and Administrative Service, PrS = Procurement Service, LS = Legal Service, SRS = Stakeholders Relations Service, IAS = Internal Audit Service, BOC = Bureau of Construction, BOD = Bureau of Design, BOE = Bureau of Equipment, BOM = Bureau of Maintenance, BQS = Bureau of Quality and Safety, BRS = Bureau of Research and Standards, RO = Regional Office, CS = Construction Supervision, CW = Civil Works.

IV. COSTS AND FINANCING

15. The project is estimated to cost $247.50 million (Table 4). 16. The Government of the Philippines has requested a loan of $175.10 million from ADB’s ordinary capital resources, to help finance the project. The government will provide the equivalent of $72.40 million to finance resettlement cost, taxes and duties, project administration, associated contingencies and financial charges. 17. The OCR regular loan will have a 28-year term, including a grace period of 9 years, straight line repayment method, an annual interest rate determined in accordance with the ADB’s LIBOR-

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based lending facility, a commitment charge of 0.15%, a maturity premium of 0.20% and such other terms and conditions set forth in the corresponding loan agreement.23

Table 4: Summary Cost Estimates ($ million)

Item Amounta A. Base Costb 1. Output 1 203.06 2. Output 2 1.11 Subtotal (A) 204.17 B. Contingenciesc 34.19 C. Financial Charges During Implementationd 9.14 Total (A+B+C) 247.50 a Includes taxes and duties of $19.85 million. The government will finance 100% of taxes and duties in cash, and ADB

will not finance taxes and duties. b In early-2021 prices as of May 2021. c Physical and price contingencies, and a provision for exchange rate fluctuation are included. d Includes interest and commitment charges. Interest during construction for the OCR loan(s) has been computed at

the 5-year US dollar fixed swap rate plus an effective contractual spread of 0.51% and maturity premium of 0.20%. Commitment charges for the OCR loan are 0.15% per year to be charged on the undisbursed loan amount.

Source: Asian Development Bank 18. The summary financing plan is in Table 5. ADB will finance the expenditures in relation to civil works, construction supervision and O&M capacity development consultants, respective portion of estimated contingencies. The government will contribute $72.40 million equivalent to cover: (i) land acquisition and resettlement; (ii) incremental project administration costs; (iii) taxes and duties; (iv) respective part of estimated contingencies; and (v) financial charges. Climate adaptation is estimated to cost $4.24 million. ADB will finance 100% of such costs.

Table 5: Summary Financing Plan

Source Amount ($ million)

Share of Total (%)

Asian Development Bank Ordinary capital resources (regular loan) 175.10 70.75

Government 72.40 29.25 Total 247.50 100.00

Source: Asian Development Bank. A. Cost Estimates Preparation and Revisions 19. The cost estimates were prepared by an ADB Mission in consultation with the DPWH, based on the project’s preliminary design cost estimates issued by the detailed engineering design consultants on 31 March 2021 and updated during the loan fact finding mission on 26 April – 05 May 2021. Civil works unit costs and consultants cost estimates are based on prevalent market rates in Philippines as of mid-2020. The cost estimate model was prepared using Microsoft

23 The United Kingdom’s Financial Conduct Authority has indicated that all global market participants should assume

there will be no LIBOR publication after 2021. Therefore, ADB and other global market participants with LIBOR-linked financial products are preparing to shift to alternative reference rates by 31 December 2021. Further details available at <www.adb.org/what-we-do/public-sector-financing/libor-transition>. Currently, ADB LIBOR-based regular OCR sovereign loan pricing comprises (i) a cost base of 6-month LIBOR for USD or Yen, or 6-month EURIBOR for Euro-denominated loans, (ii) contractual spread of 0.50% p.a., (iii) a maturity premium, as applicable, and (iv) rebate or surcharge on the funding cost, as applicable. Further details available at <https://www.adb.org/documents/overview-libor-based-loans-sovereign-and-sovereign-guaranteed-borrowers>.

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Excel and is available from the project processing team. The cost estimates will be further revised during the implementation by the DPWH and the BMC-UPMO. B. Key Assumptions 20. The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: PHP 48.6 = $1.00 (average for April 2021)

(ii) Price contingencies based on expected cumulative inflation over the implementation period are as follows:

Table 6: Escalation Rates for Price Contingency Calculation

Item 2021 2022 2023 2024 2025 2026 Foreign rate of price inflation 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% Domestic rate of price inflation 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Source: Asian Development Bank, April 2021.

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C. Detailed Cost Estimates by Expenditure Category

Table 7: Detailed Cost Estimates by Expenditure Category Item

PHP Millions USD Millions % of Total Base Cost

Foreign Exchange

Local Currency Tax Total

Foreign Exchange

Local Currency Tax Total

A. Investment Cost

Land Acquisition and Resettlement - 1,496.85 - 1,496.85 - 30.80 - 30.80 15.1% Civil Works 4,134.44 2,347.09 901.82 7,383.34 85.07 48.29 18.56 151.92 74.4% Consulting Services - Construction Supervision

488.70 217.54 58.74 764.97 10.06 4.48 1.21 15.74 7.7%

Consulting Services - O&M Capacity Building

34.02 14.58 3.94 52.54 0.70 0.30 0.08 1.08 0.5%

Subtotal (A) 4,657.15 4,076.06 964.49 9,697.70 95.83 83.87 19.85 199.54 97.7% B. Recurrent Costs

Administration Cost - 225.02 - 225.02 - 4.63 - 4.63 2.3% Subtotal (B) - 225.02 - 225.02 - 4.63 - 4.63 2.3% Total Base Cost 4,657.15 4,301.08 964.49 9,922.72 95.83 88.50 19.85 204.17 100.0%

C. Contingencies

Physical 465.72 526.56 - 992.28 9.58 10.83 - 20.42 10.0% Price 257.89 411.27 - 669.16 5.31 8.46 - 13.77 6.7% Subtotal (C) 723.61 937.83 - 1,661.43 14.89 19.30 - 34.19 16.7%

D. Financial Charges During Implementation

Interest during construction 414.61 -

414.61 8.53

8.53 4.2%

Commitment charges 29.55 -

29.55 0.61

0.61 0.3% Subtotal (D) 444.16 - - 444.16 9.14 - - 9.14 4.5%

Total Project Cost (A + B + C + D) 5,824.91 5,238.90 964.49 12,028.31 119.85 107.80 19.85 247.50 121.2% Notes: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

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D. Allocation and Withdrawal of Loan Proceeds

Table 8: Allocation and Withdrawal of OCR Regular Loan Proceeds

Category ADB Loan ($) Percentage and basis for withdrawal

from loan account 1 Civil Works 133,360,000 100% of total expenditure claimed* 2 Consulting Services 15,530,000 100% of total expenditure claimed* 3 Unallocated 26,210,000

Total 175,100,000

* Exclusive of taxes and duties imposed in the territory of the Borrower. E. Detailed Cost Estimates by Financier

Table 9: Detailed Cost Estimates by Financier ADB Government Total

Item Amount Taxes Total Amount

% of Cost Category

Amount Taxes Total Amount

% of Cost Category

Amount % of Cost Category

A. Investment Costs

Land Acquisition and Resettlement

- - - 0.0% 30.80 - 30.80 100.0% 30.80 12.44%

Civil Works 133.36 - 133.36 87.8% - 18.56 18.56 12.2% 151.92 61.38% Consulting Services - Construction Supervision

14.53 - 14.53 92.3% - 1.21 1.21 7.7% 15.74 6.36%

Consulting Services - O&M Capacity Building

1.00 - 1.00 92.5% - 0.08 0.08 7.5% 1.08 0.44%

Subtotal (A) 148.90 - 148.90

30.80 19.85 50.64

199.54 80.62% B. Recurrent Costs

Administration Cost - - - 0.0% 4.63 - 4.63 100.0% 4.63 1.87% Subtotal (B) - - -

4.63 - 4.63

4.63

Total Base Cost 148.90 - 148.90 72.9% 35.43 19.85 55.27 17.4% 204.17 82.49% C. Contingencies

Physical 14.90 - 14.89 72.9% 5.53 - 5.53 27.1% 20.42 8.25% Price 11.31 - 11.31 82.1% 2.46 - 2.46 17.9% 13.77 5.56%

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ADB Government Total

Item Amount Taxes Total Amount

% of Cost Category

Amount Taxes Total Amount

% of Cost Category

Amount % of Cost Category

Subtotal (C) 26.21 - 26.20 12.8% 7.99 - 7.99 3.9% 34.19 13.81% D. Financial Charges During Implementation

- - - 0.0% 9.14 - 9.14 100.0% 9.14 3.69%

Total Project Cost (A + B + C + D)

175.10 - 175.10 70.7% 52.55 19.85 72.40 29.3% 247.50 100.0%

Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

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F. Detailed Cost Estimates by Outputs and/or Components

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

Output 1 Output 2

Item Total Cost Amount

% of Cost Category Amount

% of Cost Category

A. Investment Cost Land Acquisition and Resettlement 30.80 30.80 100.0%

0.0%

Civil Works 151.92 151.92 100.0%

0.0% Consulting Services - Construction Supervision

15.74 15.74 100.0%

0.0%

Consulting Services - O&M Capacity Building

1.08

0.0% 1.08 100.0%

Subtotal (A) 199.54 198.46 99.5% 1.08 0.5% B. Recurrent Costs

Administration Cost 4.63 4.60 99.5% 0.03 0.5% Subtotal (B) 4.63 4.60 99.5% 0.03 0.5% Total Base Cost without Taxes 204.17 203.06 99.5% 1.11 0.5%

C. Contingencies

Physical 20.42 20.31 99.5% 0.11 0.5% Price 13.77 13.69 99.5% 0.07 0.5% Subtotal (C) 34.19 34.00 99.5% 0.19 0.5%

D. Financial Charges During Implementation

9.14 9.09 99.5% 0.05 0.5%

Total Project Cost (A + B + C + D) 247.50 246.16 99.5% 1.34 0.5% Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

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G. Detailed Cost Estimates by Year

Table 11: Detailed Cost Estimates by Year ($ million)

Item Total Cost 2022 2023 2024 2025 2026

A. Investment Costs

Land Acquisition and Resettlement

30.80 19.26 11.54 - - -

Civil Works 151.92 19.28 44.06 50.05 28.30 10.24 Consulting Services - Construction Supervision

15.74 1.89 4.49 5.19 3.07 1.10

Consulting Services - O&M Capacity Building

1.08 - - 0.31 0.46 0.30

Subtotal (A) 199.54 40.43 60.08 55.56 31.83 11.64 B. Recurrent Costs

Administration Cost 4.63 0.59 1.34 1.53 0.86 0.31 Subtotal (B) 4.63 0.59 1.34 1.53 0.86 0.31 Total Base Cost 204.17 41.01 61.43 57.08 32.69 11.95

C. Contingencies

Physical 20.42 4.10 6.14 5.71 3.27 1.20 Price 13.77 1.62 3.53 4.14 3.09 1.39 Total Contingency 34.19 5.72 9.67 9.85 6.36 2.58

D. Financial Charges During Implementation

9.14 0.44 1.03 1.92 2.68 3.07

Total Project Cost (A + B + C + D)

247.50 47.18 72.13 68.85 41.73 17.60

% Total Project Cost 100.0% 19.1% 29.1% 27.8% 16.9% 7.1% Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

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H. Contract and Disbursement S-Curve

Table 12: Contract Award and Disbursement Projections (ADB Loan) Contract Awards (in $ million) Disbursements (in $ million)

Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total 2022 0.00 112.68 0.00 0.00 112.68 2022 0.00 0.00 10.63 10.63 21.26 2023 0.00 35.21 0.00 0.00 35.21 2023 12.41 12.41 12.41 12.41 49.65 2024 0.00 1.00 0.00 0.00 1.00 2024 14.47 14.47 14.47 14.47 57.86 2025 0.00 0.00 0.00 0.00 0.00 2025 8.44 8.44 8.44 8.44 33.76 2026 0.00 0.00 0.00 0.00 0.00 2026 3.14 3.14 3.14 3.14 12.56

Total 148.90 Total 175.10

Figure 1: Contract Awards and Disbursement Curve (ADB Loan)

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I. Fund Flow Diagram

ADB

DPWHUPMO

Project Management Supervision Consultant

ContractorsConsultants

DBM

ADB = Asian Development Bank, DBM = Department of Budget and Management; DPWH = Department of Public Works and Highways, IPC = interim payment certificates, UPMO = Unified Project Management Office, WA = Withdrawal Application

Authorized Government

Depository Bank di

rect

pay

men

t

counterpart financing

IP CIP

C a

nd a

ppro

ved

WA

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment 21. The financial management assessment (FMA) was conducted in March 2021 in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due Diligence: A Methodology Note. The FMA considered the capacity of the DPWH and BMC-UPMO, including funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. 22. Based on the assessment, the potential risks of the loan pertain to the lack of financial management capacity of the staff and lack of consistency in implementing procedural and documentation controls as evidenced by several audit findings reflected in the recent Commission on Audit (COA) opinions on the executing agency’s entity financial statements and project financial statements for ADB-financed projects involving accounting errors and deficiencies. These risks are considered manageable as the Project will finance the engagement of an

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individual FM consultant providing support to the BMC-UPMO in undertaking the Project, including assisting with the development of project Financial Management Manual (FMM) and compliance with monitoring and reporting requirements. 23. It is concluded that the overall pre-mitigation financial management risk of DPWH and BMC-UPMO is substantial. The DPWH and BMC-UPMO have agreed to implement an action plan as key measures to address the deficiencies identified. The financial management action plan is provided in Table 13.

Table 13: Time-Bound Action Plan

Risk Description Mitigation Measures Responsible

Parties Timeframe 1. Organization and Personnel (Staffing and Capacity) - Existing staff will be assigned to the project, meaning additional tasks will be given on top of their regular workload. This may result in delays in the preparation of and processing of documents and in the preparation of the annual project financial statements.

Engage FM consultant for BMC-UPMO to handle the financial reporting and monitoring requirements of the project.

DPWH Finance Service, BMC-UPMO with project financing ADB

Within 3 months after project effectiveness

Accounting and financial management procedural and documentation controls are not always properly and consistently implemented, and this results in delays and misstatements of some items in the financial reports.

Provide training on ADB's procedures and requirements to the BMC-UPMO and Finance Service including existing staff and FM consultant.

2. Accounting Policies and Procedures -The audited project financial statements of the ADB Projects are prepared in accordance with the COA mandated chart of accounts which are different from the expenditure categories in the ADB loan agreement. This leads to difficulties in presenting financial statements and reconciling them with the ADB LFIS data and thus, there is uncertainty on whether the loan funds were used for the purpose intended.

Develop and improve the BMC-UPMO Project Financial Management Manual as needed, including the (i) mapping of DPWH expenditures categories with ADB expenditure categories; (ii) ADB requirements on completeness of financial statements such as the statement of budgeted versus actual expenditures and (iii) project internal control and audit schedule.

DPWH Finance Service, BMC-UPMO (FM Consultant)

Within 6 months after project effectiveness

3. Internal Control and Audit - Accounting policies and procedures of the BMC-UPMO are deemed deficient in terms of ability to ensure the accuracy and completeness of accounting data, deter and detect errors, and produce reliable financial information. This is evidenced by the adverse opinions of the COA on the financial statements of the DPWH and qualified opinions on the ADB-financed projects being implemented by the BMC-UPMO. The internal audit staff members do not do pre-audit of transactions, only post-audit.

Develop and improve the BMC-UPMO Project Financial Management Manual as needed, including the (i) mapping of DPWH expenditures categories with ADB expenditure categories; (ii) ADB requirements on completeness of financial statements such as the statement of budgeted versus actual expenditures and (iii) project internal control and audit schedule. Discuss with the DPWH the possibility of including project internal audits in the

DPWH Finance Service, BMC-UPMO (FM Consultant)

Within 6 months after project effectiveness

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Risk Description Mitigation Measures Responsible

Parties Timeframe There is a possibility that irregularities and fraud may not be detected. The internal audit staff members are not familiar with the ADB Loan Disbursement Handbook or other ADB guidelines. They focus on compliance with applicable DPWH Department Orders and applicable issuances.

annual work program of the Internal Audit Service.

4. Information Systems - Not all financial reports can be generated from the system. The preparation of the statement of cash flows requires manual intervention and use of Excel. The accounting information system follows the chart of accounts mandated by the COA. Thus, expenditure categories used are different from those indicated in the ADB loan agreement. In order to prepare the project financial statements following ADB’s expenditure categories, data will have to be extracted from e-NGAS and transferred to Excel.

Develop the mapping of DPWH expenditure categories with ADB expenditure categories. Include this in the BMC-UPMO Project Financial Management Manual and submit to ADB.

DPWH Finance Service, BMC-UPMO (FM Consultant)

Within 6 months after project effectiveness

5. External Audit - The COA does not provide an opinion on whether the loan proceeds were used only for the purpose of the project as required by the loan agreement and project administration manual.

Develop audit terms of reference (TOR) for ADB-financed projects and share the TOR with the COA.

DPWH Finance Service, BMC-UPMO (FM Consultant)

Within 3 months after project effectiveness

ADB = Asian Development Bank, APFS = audited project financial statement, BMC-UPMO = Bridges Management Cluster – Unified Project Management Office, COA = Commission on Audit, DPWH = Department of Public Works and Highways, IGCMRSP = Improving Growth Corridors in Mindanao Road Sector Project, IPIF = Infrastructure Preparation and Innovation Facility, LFIS = Loan Financial Information System, RIIDP = Road Improvement and Institutional Development Project.

B. Disbursement

1. Disbursement Arrangements for ADB Funds 24. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time), and detailed arrangements agreed upon between the government and ADB. Project staff will avail of the ADB’s disbursement training to help ensure efficient disbursement and fiduciary control.

25. Direct payment procedure. The Project will use the direct payment procedure of ADB. The payments will be made directly by ADB, based on the payment requests of the DPWH (in the form of withdrawal applications along with the necessary supporting documents). The government will cover 100% of taxes and duties as well as the project management and administrative costs.

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26. Before the submission of the first withdrawal application request, the borrower will submit to ADB sufficient evidence of the authority of the persons who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is set in accordance with ADB’s Loan Disbursement Handbook. Individual payments below this amount will be paid by the implementing agencies and subsequently claimed to ADB through reimbursement of any such advance payments.

27. The BMC-UPMO will be responsible for preparing the annual contract awards and disbursement projections, requesting budgetary allocations for counterpart funds, preparing of withdrawal applications, and sending the withdrawal applications to ADB. The BMC-UPMO is responsible for collecting and maintaining supporting documents for the project expenditures they have incurred. The BMC-UPMO shall submit regular financial reports to the executing agency for consolidation and submission to ADB.

28. Sample forms for withdrawal applications of loan proceeds can be downloaded from the ADB website.24

2. Disbursement Arrangements for Counterpart Fund 29. The government counterpart funds for the project will be disbursed for payment to contractors through an authorized government bank, based on financing projections submitted by BMC-UPMO. The government will finance the land acquisition, administrative costs, local taxes and duties under the project, associated contingencies and interest during construction by cash.

C. Accounting 30. The BMC-UPMO will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following the International Public Sector Accounting Standard for accrual-based accounting. The DPWH will prepare project financial statements following project cost categories and in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices. D. Auditing and Public Disclosure 31. The DPWH will cause the detailed project financial statements to be audited in accordance with the International Standards of Supreme Audit Institutions (ISSAIs), by Philippines Commission on Audit – an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by the DPWH.

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

24 Available at: https://www.adb.org/documents/loan-disbursement-handbook.

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missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor. 34. The government, DPWH, and BMC-UPMO have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.25 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. 35. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.26 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.27

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

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

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

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

26 ADB Access to Information Policy, 2019 27 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2011.

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

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VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting 36. All advance contracting will be undertaken in accordance with ADB’s Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers: Goods, Works, Nonconsulting and Consulting Services (2017, as amended from time to time). The issuance of invitations to bid under advance contracting will be subject to ADB approval. The borrower, DPWH and BMC-UPMO have been advised that approval of advance contracting does not commit ADB to finance the project. Retroactive financing is not applicable. 37. Advance contracting. Advance contracting is expected for the procurement of civil works and the consulting services recruitment. B. Procurement of Goods, Works, and Consulting Services 38. All procurement of goods, works and services will be undertaken in accordance with ADB’s Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers: Goods, Works, Nonconsulting and Consulting Services (2017, as amended from time to time). 39. The detailed engineering design is being prepared by a consulting firm, financed through the IPIF Project. As such, the civil works will be procured through the standard approach of design, bid and build. The procurement of works will comprise three (3) separate packages, all will be undertaken through Open Competitive Bidding (OCB), single-stage: one-envelope, internationally advertised. Two (2) consultancy contracts will be undertaken through Quality-and Cost-Based Selection (QCBS) with a quality-cost ratio of 90:10. C. Procurement Plan 40. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is provided in Appendix 1. D. Consultant's Terms of Reference 41. Consultants’ outline terms of references are in Appendix 2.

VII. SAFEGUARDS

A. Environmental Safeguards 42. The project is classified as category B in accordance with the ADB SPS 2009. A single initial environmental examination (IEE) report was prepared for all three (3) bridges. The IEE includes an Environmental Management Plan (EMP) that outlines measures to avoid or mitigate anticipated environment impacts during project pre-construction, construction, and operation stages. The EMP will be included in the bid documents. The mitigation measures contained in the EMP are general in nature and are applicable to all bridges. As part of the EMP, an Environmental Monitoring Plan (EMoP) was prepared to guide all environmental quality measurement activities under the Project to assess the effectiveness of the mitigation measures in protecting air and water ambient qualities and the control of noise and vibration levels by

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comparing to applicable national standards. The EMoP also covers the status of tree planting to be undertaken by the Contractors as compensation to the trees that will be cleared under the project. Detailed construction environmental management plan (CEMP) will be prepared for each bridge by the respective Contractors that provides further details on the location and schedule of the mitigation measures, among others. The CEMP will be based on the EMP and EMoP approved by the DPWH and ADB. The CEMP preparation will be guided by the construction supervision consultant (CSC)-environmental specialist and the BMC-UPMO and subject to the approval of the DPWH and ADB. 43. The BMC-UPMO with the assistance from the Environment and Social Safeguards Division (ESSD) will be responsible for the overall compliance of the project to all the provisions of the IEE, including its environmental management plan (EMP) and EmoP, and overall compliance to ADB SPS 2009, national and local government unit’s regulations. The BMC-UPMO will be supported by a CSC-environmental specialist. 44. The BMC-UPMO will be responsible for the following:

(i) Ensure the EMP and EMoP are incorporated in the bidding documents; (ii) Ensure compliance with all environment-related statutory requirements; (iii) Ensure the conduct of necessary training and workshops on environmental

management to include site induction of all staff and workers involved in the construction. These include all staff and laborers of all contractors;

(iv) Endorse/sign key documents and file tree cutting permit, site development clearance, quarry and borrow area clearances, and other permits from relevant agencies;

(v) Ensure that all Contractors have complete permits and clearances for the workers’ camp, operation of mixing plant, borrow areas and quarries, among others, prior to implementation of construction activities;

(vi) Take proactive and timely measures to address any environment safeguards related challenges at the national or local levels such as delays in processing of clearances during pre-construction stage and significant grievances (during construction stage);

(vii) Help resolve grievances filed by affected stakeholders through the grievance redress mechanism set-up for the project;

(viii) Review with the support of the CSC-environmental specialist and approve all subplans identified in the EMP that contractor will prepare, such as solid waste management plan, wastewater management plan, camp layout plan, traffic management plan, and borrow area management plan;

(ix) Review with the support of the CSC-environmental specialist and approve monthly environmental monitoring reports prepared by the Contractor’s Safety, Health and Environment (SHE) expert;

(x) Conduct periodic site and follow – up inspections to verify the submitted monthly monitoring reports from the Contractor and direct contractor to follow EMP and EMoP in coordination with the CSC-environmental specialist and the Contractors’ SHE; 28

(xi) Lead the conduct of compliance conference with the Contractor to discuss non-compliance and agree on corrective measures with guidance from CSC; and

(xii) Ensure preparation, submission, and review of semi-annual environmental monitoring reports and seek approval from the ESSD for disclosure on ADB and DPWH websites.

28 Inspections may be announced or un-announced.

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45. The ESSD responsibilities are the following:

(i) Guide, review, and approve the Construction Environmental Management Plan (CEMP) prior to the start of construction, with support from the CSC-environmental specialist and the BMC-UPMO Environment Unit;

(ii) ESSD will review and approve all environment-related safeguards documents such as IEE, periodic monitoring report, and recommend revisions and request clarifications from CSC and Contractor on submitted documents; 29

(iii) Supervise through the CSC-environmental specialist the implementation of EMP and EMoP by the Contractors;

(iv) Assist periodic site and follow – up inspections to verify the submitted monthly monitoring reports from the Contractor and direct contractor to follow EMP and EMoP in coordination with the CSC-environmental specialist and the Contractors’ SHE; 30 and

(v) Recommend sanctions to BMC-UPMO in case the contractor is not complying with contract provisions.

46. Construction Supervision Consultant – Environment Specialist (CSC-ES). Will assist the BMC-UPMO and the ESSD in implementing the EMP and EMoP and all other environment-related provisions of the civil works contract. 47. The CSC-ES will be responsible for the following:

(i) Lead the preparation of the CEMPs guided by the general EMP and based on the more detailed survey for approval of the ESSD. This will include the preparation of templates to be followed by the Contractors and conduct of workshops with the Contractor’s SHE expert;

(ii) Advise the Contractor on the needed revisions on the CEMP and EMoP based on the changes on the engineering design and construction methodologies;

(iii) Guide the preparation and conduct review all sub-plans identified in the IEE and EMP to be prepared by the Contactor to include camp layout, drainage plan, solid waste management plan, traffic management plan, site restoration, and emergency plans, among others;

(iv) Ensure all Contractors secure permits and clearances in a timely manner and complies with the requirements of permits and clearances;

(v) Lead the conduct regular environmental site induction training to all contractors and site engineers to ensure understanding of the EMP, domestic environmental laws and regulations requirements particularly on the required clearances and permits, training on occupational and community health and safety, timely mobilization of the Contractor’s SHE;31

(vi) Conduct specialized trainings for the ESSD and BMC-UPMO on environmental monitoring, occupational and community health and safety;

(vii) Provide necessary technical assistance to the BMC-UPMO and Contractors in the effective implementation of the EMP and EMoP;

29 In case a revised IEE is required by the ADB in cases of material changes in the project design or identification of

unanticipated impacts, among other reasons 30 Inspections may be announced or un-announced 31 Site induction training includes but not limited to: i) discussion and review of EMP and EMoP detailing how specific

environmental risks associated with their Scope of Work will be managed legal compliance, inspection and audits, and progress tracking and reporting; ii) environmental training and awareness needs shall be determined and documented via a training needs analysis prior to commencement; iii) Health and Safety Awareness Course, which details general environmental awareness and specific performance requirements expected on site; and iv) GRM.

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(viii) Supervise the conduct of ambient monitoring of the Contractors to ensure compliance to the sampling and analysis protocols;

(ix) Validate the effectiveness of the mitigation measures based on the results of the EMoP, site-inspections, and grievances;

(x) Recommend immediate corrective measures to be implemented by the Contractors when non-compliances are identified;

(xi) Monitor the status of compliance of the Project with the conditions stated in the Environmental Compliance Certificate (ECC) throughout the period of the consultancy and make the necessary recommendations on environmental mitigation measures to DPWH and the Contractor;

(xii) Review the Contractor’s Environmental Management Plan (EMP) to ensure it meets all project objectives with respect to environmental and social issues;

(xiii) Prepare environmental monitoring report proforma for Contractor’s environmental self-monitoring reports;

(xiv) Prepare summary monthly, quarterly, and semi-annual monitoring reports from the monthly SHE self-monitoring reports, findings from the compliance inspections, results of ambient monitoring, and grievance and redress for the review and guidance of the BMC-UPMO and ESSD;

(xv) Lead the preparation of semi-annual environmental monitoring reports required by ADB for public disclosure;

(xvi) Lead the conduct compliance conference with the Contractor to discuss non-compliance and agree on corrective measures;

(xvii) Advise the Contractor through the BMC-UPMO/ESSD how to comply with requirements to address non-compliances;

(xviii) report apparent unanticipated impacts, recommend mitigation measures to be implemented by the BMC-UPMO and update the IEE report; and

(xix) recommend to BMC-UPMO sanctions in case of recalcitrant contractors. 48. Contractor. The Contractor, through its Safety, Health and Environment (SHE) expert is primarily responsible for implementing the EMP and EMoP during the pre-construction and construction phases of the project. The responsibilities of the Contractor include:

(i) Appoint Safety, Health and Environment (SHE) expert and attend the site induction training to be organized by the PMC;

(ii) Obtain necessary environmental license(s), permits etc. from relevant agencies for associated facilities for bridges works, quarries, hot-mix plant etc. prior to commencement of civil works contracts;

(iii) Prepare the CEMP with guidance from the CSC-ES and BMC-UPMO; (iv) Revise the CEMP and EMoP, as advised by the CSC-ES and BMC-UPMO based

on changes in the engineering design, construction methodology, grievances, and occurrences of unanticipated impacts;

(v) Implement all mitigation measures in the CEMP and activities in the EMoP; (vi) Submit monthly, quarterly, and semi-annual self-monitoring reports to the CSC-ES

and ESSD for their review and approval; (vii) Ensure that all workers, including site supervisors and managers participate in

training sessions conducted by CSC-ES; (viii) Ensure compliance with environmental statutory requirements and contractual

obligations; (ix) Participate in resolving issues as a member of the GRC; (x) Respond promptly to grievances raised by the local community or any stakeholder

and implement environmental corrective actions or additional environmental mitigation measures as necessary;

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(xi) Based on the results of EMP monitoring, cooperate with the CSC-ES, BMC-UPMO, and ESSD to implement environmental corrective actions and corrective action plans, as necessary.

B. Involuntary Resettlement 49. The Project has been classified as Category “A” for Involuntary Resettlement in accordance with ADB’s Safeguard Policy Statement 2009 (SPS, 2009). During the preparation of the project, land acquisition and involuntary resettlement impacts were assessed through detailed measurement survey (DMS), parcellary survey and socio-economic survey of the affected households. Three (3) draft resettlement plans (RPs) have been prepared in accordance with ADB Safeguard Policy Statement 2009 (SPS) and country’s laws and regulations. The project requires acquisition of an estimated total of 12.7 hectares (ha) land of which approximately three-quarters is private land and a quarter is public land. An estimated total of 86 households, 13 small businesses and 16 employees of displaced businesses will be affected due to permanent land acquisition for the project. Among the affected households, an estimated 80 households will be physically displaced, of whom 60 do not own the affected house, and 20 households are vulnerable. The final enumeration of losses and number of affected persons will be determined during the updating of the RP. Those with severely affected livelihoods will be provided with livelihood rehabilitation assistance comprising various forms of assistance, including technical assistance and vocational training as well as prioritization for project-related employment opportunities. 50. The draft RPs will be updated based on the detailed design, detailed measurement survey, replacement cost survey conducted by an Independent Property Appraiser procured by DPWH and consultations with affected persons. DPWH has overall responsibility for updating the RPs (including participating in DMS and engaging a qualified appraiser), approving the updated RPs and obtaining ADB concurrence, securing resources (including financial), overseeing RP implementation, monitoring, and liaison with relevant government offices as well as disclosing both draft and updated/final RPs to affected persons in an understandable and accessible manner. DPWH will not award any works contract until the RP for the relevant part of the project has been prepared and cleared by ADB, and will ensure that no construction commences, or physical or economic displacement occurs, until compensation at full replacement cost and other entitlements listed in the relevant RPs have been paid or provided to the displaced persons and DPWH has submitted a resettlement compliance report to ADB. 51. Consultations and disclosure of information were undertaken during the preparation of RPs. There were two (2) rounds of public consultation meetings held with affected persons from January to March 2021 for each of the project affected areas. The information shared and discussed with the meeting participants included: (i) an overview of the project; (ii) explanation of RP preparation activities; (iii) the scope of land acquisition and resettlement by the project; (iii) the principles of land acquisition and resettlement applied for the project (principles, eligibility, proposed entitlements); and (iv) the proposed Grievance Redress Mechanism (GRM). The Public Information Booklet (PIB) in Filipino was provided to all the meeting participants and disseminated to APs online. The draft RP will be disclosed in the ADB’s website. Consultations and disclosure process will be continued during detail design. 52. DPWH has overall responsibility for resettlement plan updating (including participating in DMS and engaging a qualified appraiser), approving the updated resettlement plan, securing resources (including financial), overseeing RP implementation, monitoring, and liaison with relevant government offices. These tasks will be implemented through several key units within DPWH and other offices. Bridges Management Cluster-Unified Project Management Office (BMC-

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UPMO) is the office of DPWH directly responsible for managing, supervising and monitoring the project, including resettlement activities and land acquisition. It shall ensure that funds for the timely implementation of the RP are available and that expenses are properly accounted. Under BMC-UPMO, the Right-of-Way (ROW) Committee is responsible for all land acquisition related activities, including conduct of inventories of affected properties and verification of APs’ assets. The Environmental and Social Safeguards Division (ESSD) of DPWH provides the BMC-UPMO with technical guidance and support in the implementation of the RP, including reviewing the RPs, preparing quarterly monitoring reports, and develop supplemental measures to the RPs where needed to address issues identified through monitoring. The Resettlement Implementation Committee (RIC) will be created through a Memorandum of Understanding (MOU) between DPWH and the Local Government Unit of Marikina City. It will be composed of representatives from the BMC-UPMO Technical Team, BMC-UPMO ROW Committee, city and barangay LGUs, and APs. The RIC supports DPWH in the preparation of the updated RPs and their implementation as well as monitoring and receiving grievances. 53. A GRM is set out in the resettlement plan. The GRM will ensure that all grievances and complaints by displaced persons and affected communities in regard to land acquisition, compensation, assistance, and relocation or any other aspects of the project are resolved in a timely and satisfactory manner, and that all avenues for airing grievances are available to them. Complaint receiving officers will be assigned in the BMC-UPMO Help Desk located in the local government unit to be established as well as in the BMC-UPMO Office. The GRM for the Project will build upon the existing DPWH GRM processes. BMC-UPMO has assigned dedicated GRM officers for the project. These GRM officers will be responsible in ensuring that all grievances have been attended to and corresponding resolutions have been provided. GRM officers will be supported by the Resettlement Implementation Committee (RIC), DPWH Environment and Social Safeguards Division (ESSD), and UPMO ROW Task Force (URTF) in addressing APs concerns. The GRM will be established prior to project loan effectiveness. 54. DPWH will ensure that:

(i) The draft RP is updated during the detailed design prior to its implementation and the updated RP is approved by DPWH and ADB and is disclosed;

(ii) the RPs, agreed between the government and ADB, are implemented in accordance with their terms and all applicable laws and regulations of the Philippines and ADB’s SPS;

(iii) in case of any inconsistency between government laws and ADB’s policy, the latter will prevail;

(iv) all affected persons are given adequate opportunity to participate in resettlement planning and implementation;

(v) counterpart funds for resettlement activities are provided according to the budget and project schedule;

(vi) any additional costs in excess of the resettlement plan budget estimates are met within the project schedule; and

(vii) adequate staff and resources are committed to supervising and monitoring implementation of the resettlement plan.

29

C. Indigenous People 55. The Project has been classified as Category “C” for Indigenous Peoples in accordance with ADB’s SPS, 2009. Due diligence during the preparation of the project confirmed that there are no ancestral domains nor indigenous peoples occupying the project areas. During the updating of the RPs, further due diligence will be undertaken to confirm the Categorization with respect to Indigenous Peoples. 56. Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the Safeguard Policy Statement (2009).

VIII. GENDER AND SOCIAL DIMENSIONS

57. Key gender issues that were identified relevant to the project include: (i) Regular occurrence of flooding which severely restricts mobility and commuting. Occurrences of rains and storms, even when light, immediately result to flooding in low-lying areas. In Metro Manila, only 41.63% of waterways and drainage systems are unclogged and desilted, resulting in more time for floods to subside. Women are more affected by flooding than men because when the floods recede, women perform both productive and reproductive work in bringing back their homes to normalcy, as well as securing supplies; (ii) Safety and security issues that women face when doing tasks on foot or via commute, such as going to and from work, and in doing their daily tasks and chores which include sending children to school, going to the market, going for health consultations, and paying bills, among others, due to frequent flooding and poor traffic management in the area which contribute to pedestrian injury and killings, vehicular accidents, and occurrences of road rage, drunk driving, etc. In addition, as women comprise 50.5% of the population in Metro Manila with their travels comprising work, non-work, and off-peak travel, walking and use of intermediate modes of transport such as tricycles serve more purpose to women’s travel, making them highly exposed to safety and security issues on the road. The COVID-19 pandemic exacerbated these, as the communities’ transport systems were affected – there is limited availability of public transportation as jeepneys were not allowed to ply and there are limited buses servicing commuters. Tricycles have become exclusive in that only one passenger can be ferried at a time instead of five pre-pandemic, which resulted in increased transport costs. Given this, women opted to walk and bear the heat of the sun and rain to save on transport costs; (iii) Lack of safe paths and bridges, along with lack of adequate lighting leading to occurrences of gender-based violence, assault, and sexual harassment; In Metro Manila, 3 in 5 women have experienced sexual harassment in public places and during transit at least once in their lifetime; and (iv) Women have less employment and upward career mobility opportunities in construction of infrastructure such as bridges than men. 58. The project proposes to address the key gender issues by: (i) Providing a safe space for walking and crossing, especially for women, children, persons with disabilities, and the elderly, through bridges with ramp access, adequately-sized footpaths enough for women with small children to pass, as well as wheelchairs and prams, safety signages, and adequate lighting, and confirming with them the safety and accessibility of these bridges through surveys; (ii) Institutionalizing a mentoring program to pass on the valuable technical, managerial, and leadership knowledge and skills from senior DPWH staff to female staff. (iii) Ensuring that at least 80% of all project staff and contractors, and at least 80% of the women hired during the project’s construction phase who participated in project-related gender sensitivity, HIV/AIDS, GBV-SEAH, and other related training report improved understanding of and practices towards these issues, and that these training are conducted prior to commencement of operations and annually

30

thereafter until end of work contract. Key community groups along the construction sites such as youth and women’s groups are also targeted for these trainings. Focus of the trainings are: (a) response to gender-based violence, (b) knowledge of available referral systems, (c) Sexual and Reproductive Health (SRH) awareness in the context of construction activities; and (d) availability of grievance redress mechanism services; (iv) Complement these capacity building activities by developing at least five information, education and communication (IEC) products per bridge, standardized and in accessible formats (e.g., infographics, videos, posters, etc. in Filipino and other local languages) which shall be disseminated to promote awareness on the above. (v) Ensuring that at least 15% women in skilled, and 25% women in unskilled positions are hired under the civil works contract of the project to provide a source of employment during construction activities, and that they report improved understanding of their basic rights and opportunities for GBV-SEAH protection, construction-related skills for employment, and leadership training as a direct result of on-the-job training. Prior the pandemic, men in the project affected barangays were engaged in paid work with average daily income of Php 300-500 per day depending on the type of work. Women on the other hand, continue to bear the burden of unpaid care work while undertaking livelihood activities and supporting community activities. In some instances, women work as barangay volunteers. With the pandemic, the use of time in domestic work, distribution of activities in the home, and intensity of housework changed. The displacement of livelihood activities and the strict quarantine measures resulted to more time spent at home. The project will open job opportunities for women and men in construction and civil works. While short-lived, the jobs can augment their respective family incomes. The construction of the bridges also have the potential to open new livelihood opportunities for women due to the newly-opened spaces provided within the vicinity of the bridges; and (vi) Conducting at least two community consultation meetings during construction activities, conducted in local languages/vernacular per bridge, ensuring at least 50% female participation in each meeting. 59. All the above gender activities and targets shall be complemented by the following project management and gender-specific activities: (i) A Gender Action Plan (GAP) will be developed, implemented, and monitored, and shall be integrated in the Annual Gender and Development Program (GAD) Plans and Budgets and Annual GAD Reports of DPWH for submission to the Philippine Commission on Women (PCW); (ii) a Gender and Development / Gender and Social Specialist is engaged by the IA early in project design and implementation; (iiI) GAP reports shall follow the ADB-prescribed format and include details on progress against the GAP (challenges, good practices, lessons learned, etc.); (iv) collection of sex-disaggregated and gender-related information relevant to the Design and Monitoring Framework and GAP is in integrated in the overall project performance monitoring system; (v) representatives of the GAD Focal Point System shall be tasked to oversee GAP implementation; (vi) at Midterm Review and Project Completion, the project is assessed as “gender-sensitive” at the minimum using the Project Implementation, Management, Monitoring, and Evaluation (PIMME) checklist of the Harmonized Gender and Development Guidelines (HGDG) tool; (vii) all civil works, bidding and procurement documents, and contracts require contractors to comply with RA 6685; apply core labor standards; and comply with GAD-related mandates, including prevention and response to gender-based violence, as well as conduct HIV/AIDS, STDs, Human Trafficking, SEA and GBV awareness trainings; (viii) develop/establish and implement a program and mechanism to adequately prevent and respond to incidents of sexual harassment and other forms of gender-based violence occurring in the context of civil works (at work and in surrounding communities). 60. Gender mainstreaming in the project shall be carried out in line with the guidance provided for in DPWH Department Order No. 48, series of 2011, Guidelines for Mainstreaming Gender Equality Actions in Road Infrastructure Projects and in other DPWH GAD policy documents. The DPWH GAD Guidelines and documents shall be applied together with the Harmonized GAD

31

Guidelines (HGDG) for project development, implementation, management, monitoring and evaluation as required under Philippine Commission on Women (PCW)-National Economic and Development Authority (NEDA)-Department of Budget and Management (DBM) Joint Memorandum Circular 2012-01.32

61. Implementation arrangements for the GAP: A GAP will be developed for the project. The IA will be responsible for its implementation, monitoring and reporting. A national gender consultant will be engaged by the IA for at least 30 person-months and will be part of the project management team to assist with GAP implementation, monitoring, and reporting. DPWH will monitor regularly and report (at least on a quarterly basis) on the progress of GAP implementation as part of the project progress reports to be submitted to the ADB. The GAP progress monitoring template included in Annex 4 will be used for this purpose. DPWH will ensure that adequate financial resources are allocated for GAP implementation and endeavor to accomplish all GAP targets and actions to achieve a successful rating from a gender perspective at project completion.33

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework 62. Project Design and Monitoring Framework (DMF) is presented in Appendix 3. B. Monitoring 63. Project performance monitoring. Project performance will be monitored using the targets, indicators, assumptions, and risks in the DMF Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the executing agency's quarterly progress reports and after each ADB review mission. These quarterly reports will provide information necessary to update ADB's project performance reporting system.

64. Compliance monitoring. Compliance monitoring will be provided through regular quarterly progress reports and during regular ADB review missions. 65. Safeguards monitoring. The status of the EMP implementation; compliance to the SPS 2009, national and local environmental laws and regulations; and grievances redress will be monitored through the submission by the DPWH of semi-annual monitoring reports consistent with the requirements set in the initial environmental examination. 66. Involuntary resettlement monitoring. ADB will assess the progress of resettlement activities during review missions. BMC-UPMO with support from CSC will prepare quarterly internal monitoring reports covering RP implementation progress, restoration of living conditions of affected persons, grievances and issues encountered along with proposed mitigative or corrective actions deemed necessary. The status of safeguards implementation, compliance issues, and progress of corrective actions, if any, are to be reviewed by ADB and disclosed on

32 Guidelines for the Preparation of Annual Gender and Development (GAD) Plans and Budget and Accomplishment

Report to Implement the Magna Carta of Women. 33 ADB through SDTC-GEN considers a gender mainstreamed project to have delivered its intended gender equality

results successfully if at least 80% of the quantitative gender targets and 80% of the gender actions/activities are achieved/completed, and that the reporting includes sex-disaggregated data.

32

ADB’s website. The BMC-UPMO supported by the CSC will also prepare a compliance report upon completion of compensation disbursement and assistance with regards to any given section to be handed over for civil works. The report will include verification that the resettlement implementation has been completed and is in compliance with the provisions defined in the approved updated RP. The report will include a section on vulnerable APs. The compliance report will be reviewed by ADB and disclosed on ADB website prior to DPWH issuance of Notice to Proceed for civil works commencement for any given section. The status of safeguards implementation will also be discussed at each ADB review mission with necessary issues and agreed actions recorded in Aide Memoires or MOU. In addition, an External Monitoring Agency (EMA) will be engaged by DPWH to monitor implementation of the RP. The EMA will be mobilized by commencement of land acquisition and resettlement activities. The EMA report will be submitted semi-annually to DPWH and ADB for review and disclosure. The types and frequency of monitoring reports covering resettlement are summarized below.

Table 14: Types and frequency of monitoring reports covering resettlement

Type of Report Internal

Monitoring External

Monitoring Frequency Preparer 1 Inception Report ✓ One month after

mobilization EMA

2 Quarterly Monitoring Report

✓ Quarterly submission from the commencement of RAP validation until completion of the project

CSC/ BMC-UPMO

3 Compliance Report

✓ Upon completion of payment of compensation and assistance (not including livelihood restoration assistance)

CSC/ BMC-UPMO

4 Semi-annual Monitoring and Evaluation Report

✓ Every six months until the end of the loan closing.

EMA

5 Final Report ✓ ✓ Upon loan closing CSC/ BMC-UPMO EMA

BMC-UPMO = Bridges Management Cluster–Unified Project Management Office, CSC = construction supervision consultant, EMA = external monitoring agency. 67. If any unanticipated social risks and impacts arise during the construction, implementation or operation of the Project or material changes in the design that were not considered in the IEE/EMP and the RPs, DPWH will promptly inform ADB of the occurrence of such risks or impacts, with a detailed description of the event and the proposed corrective and preventive measures/action plan. Furthermore, DPWH will report any actual or potential breach of compliance with the measures and requirements set forth in the EMP or the RPs promptly after becoming aware of the breach. 68. Gender and social dimensions monitoring. Regular monitoring of gender-related indicators/targets included in the DMF and the GAP will be done during project implementation. The IA will ensure that data disaggregated by sex is collected, analyzed, and reported on wherever relevant and will monitor women’s participation in all construction and capacity building activities supported by this project. GAP progress reports will be submitted by the IA to ADB at least on a quarterly basis using the GAP progress monitoring template and directions in Annex 4.

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Participatory monitoring of project impact will be implemented at the midterm of the project and this will include focus group discussion and interviews with women who are direct beneficiaries of activities supported by the project as well as women in households directly affected by construction activities and resettlement (if any) to obtain both quantitative and qualitative data. C. Evaluation 69. Review missions will be fielded to review the overall implementation status and resolve issues during implementation if any. The frequency of the review missions will be preferably twice a year if the need arises. The review missions will also help in checking budget utilization and cost overrun, and review compliance to loan covenants. 70. A project completion mission will be fielded after completion of the project when a project completion report (PCR) is submitted by the implementing agency to ADB. Within six (6) months of physical completion of the project, the executing agency will submit the PCR to ADB. The mission will evaluate the design and implementation of the project, performance of ADB and the borrower, financial and economic feasibility, and if the development impact has been made.

D. Reporting 71. The executing agency will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, (d) updates on implementation status of FM Action Plan, and (e) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

1. Objectives 72. The overarching objectives of the Stakeholder Communication Strategy include ensuring regular and proactive information sharing with affected communities, and developing community support for the project. Pursuant to the requirements of ADB’s Public Communication Policy, this will be done by:

(i) Identifying a primary focal point within DPWH for regular communication with affected people and other stakeholders, as well as broader communication responsibilities (i.e., media relations);

(ii) Ensuring that relevant project information is delivered to stakeholders in a culturally appropriate, gender-sensitive, and timely manner to raise awareness of the project’s scope, benefit and impacts, and to foster acceptance and understanding of the project;

(iii) Ensuring that accurate and timely feedback from stakeholders is obtained; (iv) Enabling an efficient and regular two-way flow of information between project

implementers and stakeholders, with information sharing and consultative mechanisms established;

34

(v) Involving and working with local leaders to help foster understanding and acceptance of the project;

(vi) Ensuring the timely full disclosure of all required documents; (vii) Monitoring the implementation of the Stakeholder Communication Strategy

throughout the project, ensuring corrective actions are taken where needed.

2. Key Stakeholders 73. The key stakeholders of the project include:

• Project affected persons (PAPs) • Project beneficiaries / public • Transport users and organizations • Community organizations • Local NGOs • Government officials: Barangay, Municipal, Provincial, Regional

3. Strategy

74. Face-to-face, community-level discussions and meetings will be regularly conducted with project affected persons and other stakeholders along the road to ensure they are aware of project developments and have meaningful opportunities to share their perspectives and concerns. Multiple communication channels will be utilized to ensure project affected persons and other stakeholders receive adequate notice of discussions and meetings. Channels will include information sharing through local authorities, as well as a project Facebook and website. 75. For all communication, consultation and outreach activities, gender-sensitive and culturally appropriate information, education and communication (IEC) materials will be developed (i.e., leaflets) to ensure all stakeholders, including the poor, vulnerable and low-literacy groups, clearly understand key project components, benefits and impacts. The Project Information Booklet (PIB) will indicate how stakeholders can get in touch with project implementers. Information in the PIB will also be shared through other culturally appropriate communication channels, including face-to-face meetings. A project FAQ will be developed and disseminated. 76. An agreed-upon system will be put in place by DPWH’s communication focal point to ensure stakeholder feedback is shared with relevant project staff, and considered as the project is implemented. This will include the establishment of project phone hotline numbers to receive inquiries and concerns, as well as regularly (at least monthly) two-way communications between designated DPWH communication focal points and communities along the highway. Inquiries and concerns will be logged. Key stakeholders will subsequently be informed how their feedback was shared, and what actions were taken based on the feedback. 77. Information, education and outreach on key project components, including consultation and Grievance Redress Mechanism (GRM) requirements, will also be conducted with community leaders and local officials to ensure they understand the project, its importance, and their responsibilities. 78. DPWH’s communication focal point will be responsible for implementing and monitoring all communication activities, including information dissemination and disclosure, and ensuring regular contact with affected people and other interested stakeholders.

35

79. A Stakeholder Communications Strategy matrix setting forth required communication activities, resource requirements, and responsible parties for implementation and monitoring is set forth in the matrix in Table 15, below.

36

Table 15: Stakeholder Communication Strategy Matrix Stakeholder Communication Strategy Matrix

Project communication objectives: To create a well-informed and supportive stakeholder community for the project, by: • Delivering relevant information to stakeholders in an appropriate and timely manner. • Obtaining accurate and timely feedback form stakeholders. • Ensuring a regular two-way flow of information between the project team and stakeholders, and establishing consultative information sharing mechanisms.

Stake-holders

Desired outcome Risks Information Activities Communications Timing Responsibility Resources

Project affected persons

Complete understanding and acceptance of the project and project impacts. Meaningful consultation on impacts and mitigation measures. Understanding of entitlements and grievance redress mechanism.

Accuracy, completeness and timeliness of information. Literacy barriers. Concerns addressed in timely manner

Project objective, project plans (IEE/EMP, RP), land acquisition impacts, entitlements, compensation rates, safeguard and resettlement policies, and grievance redress mechanism, as well as resettlement and income restoration strategies. Activities during project preparation and implementation. Broader project benefits.

Provide easily understandable, gender-sensitive and culturally appropriate and accessible information (leaflets and brochures) Community consultations: engage stakeholders in soliciting meaningful feedback. FGDs and KIIs Meetings with affected households – alignment surveys, ROW procedures, impact minimization, updated resettlement framework, GRM

Meetings with project affected persons Distribution of Public Information Booklet (PIB) and project FAQ Sustained and regular engagement with communities Project phone hotline number posted in communities and along highway. All hotline calls logged, and issues addressed as required. DPWH website and Facebook

Throughout project

DPWH Communication Focal Point Implementation Consultants

Sufficient funds to produce and disseminate information materials Sufficient funds for regular community engagement Sufficient funds for phone hotline and signage. Sufficient funds for establishment and upkeep of DPWH website, and Facebook. Sufficient dedicated human resources to ensure all functions can be fully carried out. Capacity building by project implementation consultants.

Establishment of a project information office under the

37

Stake-holders

Desired outcome Risks Information Activities Communications Timing Responsibility Resources

BMC-UPMO overseen by dedicated DPWH Communication Focal Point.

Project beneficiaries, regular road users, Transport Organizations

Understanding of project rational, and project implementation program. Understanding project commitment to transparency Link project benefits with transport services and operations. Made aware of possible construction/ traffic delays in advance.

Lack of understanding of project activities, implications and results. Lack of regular updates, information flow Disruption during construction period

Regular messages and information sharing activities on project developments. Construction developments, delays

Public information updates (leaflets and brochures) Establishment of a project information office. Notice of construction developments, delays Engage stakeholders in soliciting meaningful feedback.

PIBs, consultations Website, Facebook Local Media Notification of construction delays well in advance: along road and online Hotline number posted

Throughout project

DPWH Communication Focal Point Implementation Consultants

See above. Sufficient funding for activities implementation, and sufficient human resources Capacity building by project implementation consultants.

Government Officials

Understand and support project. Link project benefits with other development opportunities.

Alignment of project with local plans. Changes in leadership– lack of familiarity with project requirements Commitment to communications, engagement

Meetings and workshops Project plans, projected impacts, benefits. Protocol for meaningful consultation and grievance redress.

Meetings and workshops. Briefings on resettlement policies, etc. Monthly information sharing (e-newsletter) Meetings with DPWH on updated IEE and EMP, and their disclosure

PIB Engaging officials to ensure support for project objectives and requirements. Project performance reports.

Throughout project

DPWH Communication Focal Point Implementation Consultants

See above. Sufficient funding for activities implementation, and sufficient human resources

38

Stake-holders

Desired outcome Risks Information Activities Communications Timing Responsibility Resources

Local leaders

Understand and support project. Link project benefits with other development opportunities Involvement in consultation process Understanding of process for handling concerns, grievance redress

Accuracy, completeness, timeliness of information

Project plans, projected impacts, benefits

Meetings local leaders. Monthly information sharing Provide easily-understood information Establishment of a project information office.

DPWH’s designated communication focal point will provide local leaders with regular (at least monthly) project updates, which they in turn can share with local communities. Updates will be concurrently shared via the DPWH website and Facebook. PIB, information materials.

Throughout project

DPWH Communication Focal Point Implementation Consultants

See above. Sufficient funding for activities implementation, and sufficient human resources

Community organizations, local NGOs

Understand project rational, implementation program and ADB’s Safeguard Policy Statement. Understand project benefits for communities. Community participation

Relationship with project team, Accuracy, timeliness, completeness of information. Trust

Regular messages and information sharing activities. Project plans, impacts, procedures, etc.

Information dissemination Project information office Website, Facebook

PIB Consultations Project performance reports and project information documents Grievance Redress Mechanisms

Project Throughout project

DPWH Communication Focal Point Implementation Consultants

See above. Sufficient funding for activities implementation, and sufficient human resources

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X. ANTICORRUPTION POLICY

80. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.34 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.35 81. To support these efforts, relevant provisions are included in the loan agreement/regulations and the bidding documents for the project.

XI. ACCOUNTABILITY MECHANISM

82. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.36

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

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

34 Anticorruption Policy: https://www.adb.org/documents/anticorruption-policy 35 ADB's Office of Anticorruption and Integrity website: https://www.adb.org/site/integrity/main 36 Accountability Mechanism. https://www.adb.org/who-we-are/accountability-mechanism/main.

40 Appendix 1

PROCUREMENT PLAN

Basic Data Project Name: Metro Manila Bridges Project Project Number: 52181-001 Approval Number: XXX

Country: Republic of the Philippines Executing Agency: Department of Public Works and Highway (DPWH)

Procurement Risk: Medium Implementing Agency: Unified Project Management Office, Bridges Management Cluster

Project Financing Amount: $247.50 M ADB Financing: $175.10 M Non-ADB Financing: $72.40 M

Project Closing Date: 30 June 2027

Date of First Procurement Plan: 29 April 2021 Date of this Procurement Plan: 1 October 2021 Procurement Plan Duration: 18 months Advance contracting: Yes eGP: No

Methods, Review and Procurement Plan

1. Except as the Asian Development Bank (ADB) may otherwise agree, the following methods shall apply to procurement of goods, works, nonconsulting services, and consulting services

Procurement of Goods, Works and Nonconsulting Services Method Comments

Open Competitive Bidding (OCB) with international advertising

To be used for the procurement of all civil works contracts. Prior Review

Consulting Services

Method Comments Quality and Cost Based Selection’ 90:10. Prior Review

List of Active Procurement Packages (Contracts)

2. The following table lists goods, works, nonconsulting, and consulting services contracts for which the procurement activity is either ongoing or expected to commence within the procurement plan’s duration. Estimated value below excluded taxes and duties to be paid by the government in cash.

Table A1.1: Goods, Works, and Nonconsulting Services

Package Number

General Description

Estimated Value

($ million)

Procurement Method

Review Bidding Procedure

Advertisement Date

Comments

CW-1 Construction of Marcos Highway – St. Mary Avenue Bridge

35.21 OCB Prior 1S1E Q4 2022 Advertising: International PQ: No AC: No DPA: No eGP: No SBD: Works

CW-2 Construction of Homeowners Drive–A. Bonifacio Bridge

43.55 OCB Prior 1S1E Q4 2021 Advertising: International PQ: No AC: Yes DPA: No eGP: No SBD: Works

Appendix 1 41

Package Number

General Description

Estimated Value

($ million)

Procurement Method

Review Bidding Procedure

Advertisement Date

Comments

CW-3 Construction of Kabayani Street– Matandang Balara Bridge

54.60 OCB Prior 1S1E Q4 2021 Advertising: International PQ: No AC: Yes DPA: No eGP: No SBD: Works

AC = advanced contracting, DC = direct contracting, eGP = Use of eGovernment Procurement System, OCB = open competitive bidding, NCR = National Capital Region, PQ = pre-qualification, Q = quarter, SBD = standard bidding documents, UNOPS = United Nations Office for Project Services. Source: Asian Development Bank.

Table A1.2: Consulting Services

Package Number

General Description

Estimated Value

($ million) Selection Method Review

Type of Proposal

Advertisement Date Comments

CS-1 Construction Supervision Consultant

14.53 QCBS Prior FTP Q4 2021 Type: Firm AC: Yes eGP: TBC

CS-2 O&M Capacity Building Consultant – QCBS

1.0 QCBS Prior FTP Q4 2021 Type: Firm AC: No eGP: TBC

AC = Advance Contracting, BTP = Biodata Technical Proposal, CQS = Consultants Qualifications Selection, DC = Direct Contracting, DPA = direct procurement agent, eGP = Use of eGovernment Procurement System, EHS=environment, health, and safety; ICS = individual consultant system, PQ = pre-qualification, Q = quarter, SBD = standard bidding documents, TBC = to be confirmed. Source: Asian Development Bank.

42 Appendix 2

OUTLINE TERMS OF REFERENCE (1)

Consulting Services for the Construction Supervision

A. Project Background 1. The Government of the Philippines, through the Department of Public Works and Highways (DPWH), intends to engage the services of a consulting firm for the construction supervision of the Three (3) Priority Bridges Crossing Pasig–Marikina River and Manggahan Floodway Bridges Construction Project (herein referred to as “The Project”), with financial assistance from Asian Development Bank (ADB).1 2. The project is aligned with the following impact: (i) enhance transport sector to sustain economic growth and (ii) increase global competitiveness. Hence, the project will improve the efficiency of Metro Manila’s road network. 3. The proposed three (3) bridges, namely: (i) J.P. Rizal–St. Mary Bridge (proposed to be renamed as Marcos Highway–St. Mary Avenue Bridge), (ii) J.P. Rizal–Lopez Jaena Bridge (proposed to be renamed as Homeowners Drive–A. Bonifacio Bridge), and (iii) Marikina–Vista Real Bridge (proposed to be renamed as Kabayani Street–Matandang Balara Bridge) are among the DPWH’s identified 12 bridges crossing Pasig River, Marikina River and the Manggahan Floodway as an urgent priority to provide fix links over these water ways and consistent with the objectives of the Pasig–Marikina River Channel Improvement Project.2 The construction of additional bridges crossing these water ways not only create a more dynamic economy in Metro Manila, but also provide a flood and disaster-resistant road network that will alleviate traffic congestion in Metro Manila as well as the living conditions in the area. These bridges will be designed to be iconic and aesthetically pleasing bridges that will enhance the view of these rivers and will promote tourism development in the locality. 4. The objectives of the project are as follows:

(i) To improve road transport network capacity and efficiency in Metro Manila and alleviate traffic congestion by providing additional fix links (bridges) and alternative routes crossing the Pasig–Marikina River and Manggahan Floodway;

(ii) To contribute to a more sustainable social and economic development in Metro

Manila through an efficient road network linked by sufficient number of bridges; (iii) To enhance Metro Manila road network resiliency against disasters, e.g. flood and

earthquake, by providing additional bridges which are designed in compliance with the latest requirements in the DPWH Design Guidelines, Criteria and Standards (DGCS), including the new seismic design specifications and considerations of the impact of climate change; and

1 Also known as the Metro Manila Bridges Project (MMBP) in the ADB Country Operations and Business Plan (COBP,

2021-2023). 2 Request for change in name, among others, submitted to the National Economic and Development Authority (NEDA)

Investment Coordination Committee (ICC) on March 31, 2021.

Appendix 2 43

(iv) To extend the life of existing bridges by decongesting such bridges from heavy traffic, thus, reducing bridge maintenance cost.

5. The Government of the Philippines intends to use part of the proceeds of the loan for eligible payments for consulting services for which this Terms of Reference (hereinafter referred to as “TOR”) is issued.

6. The expected completion date of the Project, which covers three (3) bridges crossing Marikina River, namely: (i) J.P. Rizal–St. Mary Avenue Bridge (proposed to be renamed as Marcos Highway–St. Mary Avenue Bridge); (ii) J.P. Rizal–Lopez Jaena Bridge (proposed to be renamed as Homeowners Drive–A. Bonifacio Bridge); and (iii) Marikina–Vista Real Bridge (proposed to be renamed as Kabayani Street–Matandang Balara Bridge), is in December 2026 inclusive of one year Defect Liability Period after the completion of the civil works.

7. The executing agency for the Metro Manila Priority Bridges is the DPWH thru the Bridges Management Cluster – Unified Project Management Office (BMC-UPMO), hereinafter called the “Implementing Office (IO)”.

8. The Metro Manila Bridges Project profiles below: J.P. Rizal–St. Mary Bridge (Proposed to be renamed as Marcos Highway–St. Mary Avenue Bridge) Total Length : 1,606.3 m Project Description : 2-lane Pre-Stressed Concrete Box Girder Bridge that will

connect St. Mary Avenue and Marcos Highway in Marikina City

Project Schedule : 30 Months (Civil Works) J.P. Rizal–Lopez Jaena Bridge (Proposed to be renamed as Homeowners Drive–A. Bonifacio Bridge) Total Length : 691.0 m Project Description : 2-lane Pre-Stressed Concrete Box Girder that will

connect Homeowner’s Drive and A. Bonifacio in Marikina City

Project Schedule : 30 Months (Civil Works) Marikina–Vista Real Bridge (Proposed to be renamed to Kabayani Street–Matandang Balara Bridge) Total Length : 726.3 m Project Description : 4-lane Pre-stressed concrete Extradosed Bridge

connecting Kabayani St. in Marikina City and Matandang Balara in Quezon City

Project Schedule : 36 Months (Civil Works)

44 Appendix 2

B. Objective of Consulting Services 9. The consulting services shall be provided by a consulting firm (hereinafter referred to as “the Consultant”) in compliance with ADB’s Procurement Policy 2017 and the Procurement Regulations for ADB Borrowers 2017. The assignment shall be time-based with specific outputs and deliverables, as stipulated in the subsequent sections of the TOR. The consulting firm will be selected through the Quality-and Cost-Based Selection (QCBS). 10. The objective of the consulting services is to achieve the efficient and proper preparation and implementation of the Project through:

(i) Review of Detailed Design. Pre-construction phase will entail the review, if

necessary, of the plans and bid documents as assistance to the DPWH. (ii) Construction Supervision. The construction phase will include supervising,

inspecting, measuring and testing of all works and materials to ensure proper construction in conformity with the approved plans and specifications.

(iii) The post-construction phase (Defect Liability Period). It will include the submission of the “As-built Plans”, prepared by the contractor, for the inspection for the Acceptance Certificate and the Final Report.

(iv) Technology Transfer/Capacity Building C. Scope of the Project 11. The project includes the construction of three (3) bridges with an estimated 3,023.7 m. total gross length (including approaches) crossing Marikina River. The additional bridges will provide alternate routes to enhance the transportation capacity of the Marikina–Pasig River Crossing. It will also accelerate the economic development of Marikina and Quezon City. The pre-stressed concrete box girder structure will be adopted for the Marcos Highway–St. Mary Avenue Bridge and the Homeowners Drive–A. Bonifacio Bridge and pre-stressed concrete extradosed structure will be applied for the Kabayani Street–Matandang Balara Bridge. 12. Presented in Table A2.1 are the details of the bridge project. The location map for the projects is in Annex 1 and the proposed detailed implementation schedule is shown in Annex 2.

Table A2.1: Details of Bridge Project Bridge Name Length Scope of works

J.P. Rizal–St. Mary Bridge (Proposed to be renamed as Marcos Highway–St. Mary Avenue Bridge)

1,606.3 m

Approach Road: 1,103.8m

Approach Bridges

(including MSE Wall): 327.5m

Main Bridge (PSC Box Girder): 175.0m

2-lane Prestressed Concrete Box Girder Bridge that will connect St. Mary Avenue and Marcos Highway in Marikina City

Appendix 2 45

Bridge Name Length Scope of works J.P. Rizal–Lopez Jaena Bridge (Proposed to be renamed as Homeowners Drive–A. Bonifacio Bridge)

691.0 m

Approach Road: 117.1m

Approach Bridges

(including MSE Wall): 442.4m

Main Bridge (PSC Box Girder): 131.5m

2-lane Prestressed Concrete Box Girder that will connect Homeowner’s Drive and A. Bonifacio in Marikina City

Marikina–Vista Real Bridge (Proposed to be renamed to Kabayani Street–Matandang Balara Bridge)

726.3 m

Approach Road: 193.2m

Approach Bridges

(including MSE Wall): 419.1m

Main Bridge (Extradosed ):114.0m

4-lane Prestressed concrete Extradosed Bridge connecting Kabayani Street in Marikina City and Matandang Balara in Quezon City

D. Scope of Consulting Services 13. The Consultant’s main task shall be to review the detailed design, to provide construction supervision and other technical services during civil works construction of three (3) bridges project. Other civil works include corrective measures application of pavement markings and signage, among others. The Consultants shall likewise provide services during the post-construction phase (Defect Liability Period) of the project. Main tasks of the Consultants are listed below:

(i) To function as ‘the Engineer’ in administering all civil works and ensuring completion of construction of the components in accordance with the contract provisions;

(ii) To assist DPWH and its designated representatives in the implementation of resettlement and indigenous plans for all contracts under the Project;

(iii) To assist DPWH in the implementation of an HIV/AIDS Awareness and Prevention Program and a Human Trafficking Prevention Program for the Project;

(iv) To assist DPWH in the Benefit Monitoring Evaluation of the Project.The Consultant will develop systems and programs that will enable performance with regard to project implementation to be monitored and the impacts of the project relative to those expected to be assessed;

(v) To assist DPWH in ensuring compliance with the government’s and ADB Safeguard Policy Statement (SPS) 2009, and environmental management and

46 Appendix 2

monitoring including continued stakeholder engagement for all civil works contracts under the Project as described in Annex 4 of this TOR;

(vi) To assist DPWH in the implementation of the Gender Action Plan as described in Annex 4 of this TOR;

(vii) To provide project accounting services as described in Annex 5 to ensure claims are processed properly and provide inputs to for the project auditors and ensure that audited project accounts are submitted to ADB in a timely manner;

(viii) To assist in the implementation of the communications strategy in accordance with the PAM of the project; and, To provide on-the-job-training training to DPWH staff in project administration following ADB Guidelines on civil works construction administration, implementation of resettlement and indigenous and peoples plans, monitoring of environmental management plans, and others.

1. Activities Started Prior to Start of Construction 14. The following activities need to be started prior to construction of each civil works contract package:

1.1.1 Review of all contract documents of each contract package such as approved plans/drawings, technical specifications, construction contract and other documents to ensure its executability;

1.1.2 Ensure that the detailed engineering design of each contract reflect current

international and Philippine standards in the practice of road safety. The Consultant will undertake a road safety audit of the completed design and include the outcome of this in the project’s inception report;

1.1.3 Review the Contractor’s methods of work and work schedule or revision thereto

including a critical path diagram for implementation of the contract and any such plans or programs that the Contractor is obliged to submit, as well as the proper allocation of responsibilities of the Contractor’s work force;

1.1.4 Organize a material testing laboratory on the basis of the provisions in the

construction contract;

1.1.5 Conduct a pre-construction meetings, induction, orientation, and workshops with the Contractor and all project stakeholders to clarify issues such as environmental and social issues and other concerns, and initiate coordination with Environmental and Social Safeguards Division (ESSD), Planning Service, DPWH Field Offices, local government units and other concerned offices;

1.1.6 In coordination with the ADB, conduct training of all Contractors on the

preparation of Construction Environmental Management Plans (CEMP) that further details (location, timing, and resources needed) the approved and disclosed Initial Environmental Examination (IEE) Report and its environmental management and monitoring plans. Included in the CEMP training is the prescribed monitoring procedures, forms, and reporting requirements including deadlines and milestones.

Appendix 2 47

1.1.7 Prior to establishment of contractor’s facilities and commencement of civil works, undertake review the draft Construction Environmental Management Plans (CEMP) to be prepared by each contractor to ensure that these documents are consistent with the provisions of the EMP included in the IEE cleared by ADB. The CEMPs will be shared to ADB for review before these are approved by the Consultant.

1.1.8 Preparation, submission, and disclosure of semi-annual environmental

monitoring reports that will assess the contractor’s performance against the CEMP. The environmental monitoring report will identify any environmental harm and non-compliance issues, provide data to support compliance, and meet all government approval and permit conditions and the ADB requirements. The Engineer will cause the submission to the ADB and DPWH semi-annual monitoring reports that details the following:

i. Project implementation progress ii. Summary of environmental mitigation and compensation measures

implemented iii. Summary of environmental monitoring

a. Compliance inspections (summary of inspection activities, mitigation compliance, mitigation effectiveness)

b. Ambient monitoring program (summary of monitoring, results, and assessments)

iv. Key environmental issues (key issues identified, actions taken, additional action required)

v. Conclusion a. Overall progress of implementation of environmental management

measures b. Problems identified and actions recommended

vi. Appendices (Site inspection/monitoring forms, ambient monitoring results, photographs, permits, others)

1.1.9 Prepare and submit a Report on the Project Outcome/Impact in 14 copies with

electronic file to ensure the meeting/achievement of the project objective/s based on the NEDA Board Resolution No. 14, series of 1999, Guidelines on Results Monitoring and Evaluation (RME). The Consultant shall determine and provide baselines for monitoring of projects results in the report. The Consultant will:

i. Provide and maintain a computerized project management system that

will assist DPWH to implement the project and provide information on project progress for routine reports, review missions, and coordination meetings;

ii. Prepare a monitoring and evaluation program that will enable the effectiveness of implementation activities for all components of the project to be assessed, giving particular consideration to (a) the precise description, timeliness, cost and quality of physical infrastructure implemented in the project, (b) the integrity of resettlement and related programs, (c) the effectiveness of capacity building activities, and (d) the extent to which the project’s Social Action Plan is implemented as planned and its impacts;

48 Appendix 2

iii. Submit the proposed monitoring and evaluation program to DPWH and, through DPWH, to ADB for review and approval; and,

iv. Implement the approved monitoring and evaluation program using ‘before’ and ‘after’ studies and other forms of survey and analysis, giving regard to the project’s anticipated effect on economic and social development as indicated in the Design and Monitoring Framework for the Project including (a) per capita income in the project provinces, (b) the volume and type of freight and number of passengers using the road network in the project area, (c) passenger and freight vehicle operating costs on the project road and on the project area road network between key locations, (d) tariffs for freight and passenger movement between selected locations that indicate the impact of the project on target groups in the community, (e) the quantity and type of traffic on roads that form the network within which the project road will be constructed; (f) the origin and destination of vehicles and traffic at selected locations within the project area, and (g) the effectiveness of capacity building programs for DPWH staff associated with the Project.

1.1.10 Establish and implement social safeguards planning document monitoring

system and preparation of Quarterly Social Monitoring Report (SMR):

i. Ensure monitoring responsibilities are defined and allocated within the DPWH project management unit staff and coordinating agencies (i.e. NHA, and local government). This includes data collection, data analysis, verification, and preparation, submission, review and endorsement of SMRs;

ii. Establish procedures and methods for data collection and analysis; iii. Identify requirements for capacity building for monitoring, as well as

budgetary requirements for capacity building; iv. Define timelines for data collection and SMR preparation and submission; v. Assess and propose budget for monitoring, reporting, disclosure, and

evaluation; and, vi. Establish database and management information system about the

External Monitoring (semi-annual) and the preparation of Social Safeguard Completion Report as a requirement for issuance of NOL to commence construction.

1.1.11 Pursuant to ADB’s Public Communication Policy (PCP) 2011 and ADB Safeguard

Policy Statement 2009, the PAM contains a Stakeholder Communication Strategy (SCS) which aims to increase access to information about the project, and to improve communication and information sharing with project affected people and other concerned stakeholders (including women and vulnerable groups) throughout the course of the project. A national communications Consultant is expected to provide overall strategic communication guidance to the project, and:

i. Support implementation of the SCS and information sharing; ii. Supervise a local communication resource person in implementing SCS

activities; iii. Based on the project work plan, develop detailed Stakeholder Consultation

Plans that reflect detailed consultation needs for respective project activities for upcoming periods (e.g. semi-annual);

Appendix 2 49

iv. Actively work with designated project implementation consultant team and government staff in effectively carrying out the activities set forth in the SCS; and,

v. Reports directly to the Team Leader of the project implementation Consultants, and will work closely with ADB designated project staff, and ADB’s Principal Operations Communications Specialist (Southeast Asia Department). The overall framework and direction will be provided by the team leader. The Consultant is expected to perform independently, and take initiative in informing or consulting with the team leader on problem areas and major constraints.

1.1.12 In coordination with the designated ADB staff and DPWH focal point person,

provide support to implementing the SCS by:

i. Regular Information Sharing: Ensure a regular flow of information about the project to affected persons and other key stakeholders through a full range of communication channels, consistent with the methods set forth in the SCS. Ensure the project phone line number posted in villages and operable, with current named focal person (project communication focal point). Liaise with project supervision Consultant and DPWH to help ensure key project documents and information materials reach target recipients. Help ensure mechanisms are put in place to provide effective notification of project impacts (noise, dust, construction impacts, traffic flow impediments, etc.). Ensure project Facebook and website are regularly updated. Generate content for all information channels as needed. Support communication components of road safety awareness;

ii. Strengthen and Maintain Communication Network: Serve as a “community liaison” with local communication resource person to support and, where needed, lead SCS implementation. Strengthen and maintain a network of community/village liaisons, working with information sources trusted by different stakeholder groups to foster dialogue and information sharing;

iii. Support for Consultations and Dialogue: Support, and where needed, organize or facilitate, consultations and/or interactions between project staff and other stakeholders pursuant to the activities set forth in the SCS. Facilitate relationship-building between communities and project implementation Consultant / government staff involved in the project. Maintain regular contact with these stakeholders. Provide communications support for other project activities (safeguard, grievance, etc.) as needed. Ensure stakeholder concerns are identified, logged, and that key stakeholders understand how their inputs are being shared and responded to; and,

iv. Revising Information Materials: As needed, revise and/or prepare new materials, in coordination with designated ADB and government staff.

1.1.13 Under the supervision of the National Communication Consultant, and in

coordination with the Project Implementation Team, DPWH and designated ADB staff, the local resource person will support implementation of the SCS and information sharing, including:

i. Regular Information Sharing: Ensure a regular flow of information about

the project to affected persons and other key stakeholders at the

50 Appendix 2

community level and through other communication channels. Ensure project information materials reach target recipients, and are culturally appropriate. Help ensure mechanisms are put in place to provide effective notification of construction impacts. Gather information (facts, quotes, photos) for project their communication channels;

ii. Strengthen and Maintain Communication Network: Work to strengthen and maintain a network of community contacts trusted by different stakeholder groups to foster dialogue and information sharing;

iii. Support for Consultations and Dialogue: Support consultations and/or interactions between project staff and other stakeholders, pursuant to the activities set forth in the SCS. Join consultations conducted by the implementation Consultants and DPWH to help ensure questions and concerns identified during these interactions are meaningfully addressed. Facilitate relationship-building between communities and the project team. Maintain regular contact with these stakeholders. Provide communications support for other project activities (safeguard, grievance, etc.) as needed. Ensure stakeholder concerns are identified, logged, and that key stakeholders understand how their inputs are being shared and responded to; and,

iv. Revising Information Materials: As needed, revise and/or prepare new project information materials, in coordination with designated ADB and government staff, to ensure they are culturally appropriate and understood by target recipients.

1.1.14 Ensure that compensation and assistance required under the RP have been

provided to APs prior to civil works construction. i. Review the RP and Resettlement Compliance Report and monitor against

the situation on the ground to ensure that there are no residual encumbrances.

ii. Ensure that adequate plans are in place to ensure continuing access of properties adjacent. Any land locked areas

iii. Ensure that there are no land locked areas

1.1.15 Ensure that a grievance redress mechanism (GRM) is in place, including i. assignment of persons to receive and resolve complaints. ii. adequate training of assigned persons with respect to project

environmental and involuntary resettlement requirements, including eligibility and entitlements of affected persons.

iii. Information about the GRM and lodging grievances is publicly available in the project affected areas.

2. During Construction

15. The main civil works will be executed under the Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer, Multilateral Development Bank Harmonized Edition 2010, prepared by the Fédération Internationale des Ingénieurs-Conseil, or FIDIC (FIDIC MDB version 2010). The scope of the consulting services to be carried out to include but not necessarily limited to the following:

2.2.1 Undertake pre-construction survey jointly with the contractor and the UPMO

representatives. Validate and verify possible changes in the scope of works

Appendix 2 51

considering the actual field condition. Supervise the preparation of As-Staked Plans/Drawings, Quantities and other documents, and recommend for the approval of the required modifications or changes in the design, drawings and quantities due to actual (as-staked) field conditions, and review the said documents prior to the approval of the appropriate authorities of DPWH.

2.2.2 The Consultant shall always act as faithful adviser to the DPWH on matters

pertaining to the efficient implementation of the project and shall at all times support and safeguard DPWH legitimate interests in any dealings. Represent the interest of the government vis-à-vis the Contractor in any matter related to the construction contract and the proper execution.

2.2.3 The Project Consultant’s Team Leader herein referred to as “Engineer” will report

directly to the Project Director/Project Manager of BMC-UPMO of the DPWH who will then coordinate all works and issue guidelines from time to time for the purpose of establishing uniformity in the administrative as well as technical working procedures.

2.2.4 The Resident Engineer shall report directly to the Team Leader and shall also

closely coordinate with the Counterpart Project Manager/Project Engineer of the BMC-UPMO, DPWH, assigned to the project.

2.2.5 The Resident Engineer will provide on time to DPWH Counterpart Project

Manager/Project Engineer requests for clarification on issues/guidelines, which will be issued as the work progresses for close monitoring of the field performances of the Consultant.

2.2.6 Shortly after project start-up, but not beyond the first year of implementation, the

Consultant shall submit to DPWH a confirmed, updated Project Framework and baseline data on the performance indicators. Adjustments from the ICC-approved Project Framework shall reflect changes in actual/current project conditions, including those in the broader environment within which the project is situated. Any such deviation shall be explained clearly.

2.2.7 An annual Results Monitoring and Evaluation (RME) report on the project in 14

copies with electronic file shall be prepared and submitted to DPWH not later than 30 days at the end of each year of the project implementation.

2.2.8 Inspect and evaluate Contractor’s installations such as housing, shops,

warehouses and other accommodations to ensure compliance with the terms and conditions of the contract.

2.2.9 Conduct of preliminary inventory of facilities, equipment and other project items

in accordance with Department Order No. 7, series of 2006, Guidelines in the Purchase, Use and Transfer/Turn-over of Non expendable Properties for the Implementation of Local and Foreign Assisted Projects, together with BMC-UPMO and concerned DPWH Offices.

2.2.10 Conduct traffic impact study and review the traffic management and safety

schemes prepared by the Contractors. The Consultant shall see to it that an efficient traffic management and safety plan for the project is prepared, approved

52 Appendix 2

by concerned agency(ies), observed and implemented accordingly during construction period. Inspect the safety aspects of construction works and traffic management and methods to ensure that very reasonable measure has been taken to protect life and property.

2.2.11 The Consultant shall ensure that road safety measures including road safety

audits are implemented during and after project implementation and related information is posted on the DPWH website in a timely manner.

2.2.12 The Consultant shall facilitate monthly (or as needed) public meetings in

conjunction with DPWH and concerned local government units to address public concerns.

2.2.13 Inspect quarries and borrow pits and crushing plants to ensure adherence to

specifications.

2.2.14 Organize the supervision of the works with proper allocation of the responsibilities to the individual inspector and supervise their works in order to ensure that it is effectively executed.

2.2.15 Maintain and authorize a representative at the project sites at all times to

supervise the contractor’s work and to issue instructions/s as required. Give notice to the Contractors, through the DPWH of any defects and deficiencies and recommend appropriate actions.

2.2.16 Assist in claims and disputes that may be brought to the Consultant’s attention

by any concerned party in project implementation. Proper coordination with concerned agencies (government and private) shall be maintained by the Consultant. All reasonable measures shall be made use of Consultant to avoid unduly delay, thus ensuring the realization of the objectives of the project.

2.2.17 Provide timely assistance and direction to the Contractors in all matters related

to the interpretation of the contract documents, quality control testing, and other matters relating to contract compliance and progress of the project.

2.2.18 Supervise the operation by the Contractors of the materials testing laboratory,

witness the performance by the Contractors of all sampling, laboratory testing of materials and products needed to ensure that the quality as required by the plans and specifications is obtained and verify the accuracy of the testing results. Maintain proper and complete records of all test performed. Inspect works and check materials including testing of materials in accordance with DPWH standard specification requirements. The verification of the quality control results of the Contractor shall be undertaken with random quality assurance test. A summary of the results of the Contractors’ quality control as well as the result of the Consultant’s quality assurance control shall form a separate chapter in the monthly implementation progress reports. The Contractor shall make available their quality control testing facilities for the required acceptance control tests.

2.2.19 The Consultant shall reject or accept construction materials intended for use in

the project upon the recommendation of the Materials Engineer based on test results, and ensure that all necessary preparations and procedures have been

Appendix 2 53

undertaken in accordance with the Approval Plans and Specifications before the issuance and approval of the work request.

2.2.20 Review and approve all Contractors’ working drawings, shop drawings, erection

drawings, and drawings for temporary works.

2.2.21 Prepare additional standard drawings as necessary and furnish them to the Contractor on timely basis.

2.2.22 Assess the adequacy of all inputs such as materials and labor provided by the

Contractors and methods of works in relation to the required rate of progress. When required, take appropriate action in order to expedite progress. Keep and regularly update a list of the Contractors’ equipment and its condition to ensure compliance with the list of equipment, which the Contractors provided in his bid.

2.2.23 Propose and present to the DPWH for approval of any change in the plans, as a

result of any change in site condition due to weather and natural calamities, which may be deemed necessary for the completion of works including information or any effect the changes may have on the contract amount and the time of completion of the project, and prepare orders including altering plans and specifications and other details in accordance with DPWH existing issuances/policies. Inform DPWH of any problem or potential problems which may arise relating to the construction contract and make recommendation to the DPWH for possible solutions.

2.2.24 Assure the receipt of, and maintain record of all warrant required under the terms

of contract documents for materials incorporated in the project. All materials incorporated in the project and their sources will also be approved.

2.2.25 Compute quantities of approved and accepted works and materials and check,

certify and make recommendations to the DPWH on the Contractor’s monthly claim which is mandatory, and final payment.

2.2.26 Assume responsibility for the certification (quality and quantities) of completed

works for each contract.

2.2.27 Organize and facilitate the conduct of participatory audit for the inspection of works accomplished prior to payment.

2.2.28 Review, validate/confirm and facilitate the monthly billings of the Contractors for

the works accomplished for the period covered and submit to DPWH not later that every 5th day of the succeeding month.

2.2.29 Prepare monthly billings of Consultant’s completed services to be submitted to

BMC-UPMO every end of the month.

2.2.30 Organize monthly coordination meeting or whenever required to discuss and resolve issues and/or problems encountered during the execution of the works and other relevant/related concerns.

54 Appendix 2

2.2.31 The Consultant shall recommend and revise for approval of the Contractor’s Work Schedule or revision thereto that the contractor is obliged to furnish for the Engineer’s approval.

2.2.32 Provide engineering design support during construction when actual field

conditions require modifications in the approved design and/or formulation and developments of emergency remedial measures and works.

2.2.33 Determine the amount to be added to or to be deducted from payments to the

Contractor for any additional/omitted works, as the case maybe.

2.2.34 Arrange the prosecution of works related to the provisional sums in the contract and determine the value of such works within the scope of the said contract.

2.2.35 Inform immediately the DPWH through BMC-UPMO of the problems or potential

problems that might arise in connection with the prosecution of the contract and recommend possible solutions.

2.2.36 Ensure that the projects are constructed and monitored in strict conformity with

all applicable environmental laws and regulations, policies, procedures and guidelines of the Philippines, ADB’s Safeguard Policy Statement (SPS) dated 2009, agreed Initial Environmental Examination (IEE), and environmental mitigation and monitoring measures detailed in the EMP. In case of any discrepancy between the Philippines law and regulations and the SPS, the SPS shall prevail.

2.2.37 Ensure that Grievance Redress Mechanism (GRM) is functioning and that

procedures are known to the APs.

2.2.38 Ensure that social safeguards monitoring is periodically conducted and reports prepared, reviewed, disclosed to APs, and submitted to ADB. In the event of unanticipated impacts related to involuntary resettlement such as loss or damage to property, ensure that acceptable remedial actions are prepared and agreed with by DPWH and ADB.

2.2.39 Provide support to DPWH to ensure functioning of the livelihood restoration

program described in the RP, including promoting participation of eligible APs, delivery of training programs by designated service providers, and that suitably qualified APs are made aware of and supported to apply for project-related employment opportunities.

2.2.40 Ensure Contractors maintain records and report on employment in civil works and

core labor standard compliance with employee data separated by sex, age, minority standards and residency.

2.2.41 Carry out adequate supervision and monthly monitoring of the construction works

carried out by Contractor to ensure timely compliance with the environmental mitigation and monitoring measures and other conditions set forth in the EMP, to minimize any adverse environmental impacts arising from the construction and operation of the project.

Appendix 2 55

2.2.42 Consolidate the results of monthly monitoring into semi-annual environmental monitoring reports in 20 copies and electronic file to be submitted to DPWH and ADB in a timely manner.

2.2.43 Before start of civil works, the Consultant shall establish or adapt an

environmental grievance redress mechanism based on the IEE, acceptable to DWPH and ADB, to receive and facilitate resolution of the concerns, complaints, and grievances of the affected people about the project’s environmental performance, make public the existence of this grievance redress mechanism through public awareness campaigns, review and address environmental grievances of stakeholders in relation to the project, any of the service providers, or any person responsible for carrying out any aspect of the project, and proactively and constructively respond to such grievances.

2.2.44 Update, in a form and manner satisfactory to DPWH and ADB, the IEE, if any

unanticipated environmental risk and impacts arise, if there are any changes to project design that would cause environmental risk or impacts not within the scope of the IEE and submit such updated IEE to DPWH and ADB for review, clearance and public disclosure on ADB website prior to the implementation of such changes.

2.2.45 Prepare a new environmental assessment report in compliance with the SPS in

the event there are additional components that are expected to result in adverse environmental impacts. Such report shall be submitted to DPWH and ADB for review, clearance and public disclosure on ADB’s website prior to the implementation of the additional component.

2.2.46 Based on the results of environmental monitoring, identify environmental

corrective actions and prepare a time-bound corrective action plan, as necessary, for submission to and review by DPWH and ADB.

2.2.47 Perform any and all other items of work not specifically mentioned, but which are

necessary and essential to successfully supervise and control the construction activities in accordance with the plans and specifications and terms of contract.

2.2.48 The Consultant shall perform Project Information/Dissemination services but

not limited to the following services and instruments, in coordination with the BMC-UPMO and Stakeholders Relations Service (SRS) of DPWH, in compliance with the policies, and instructions of the DPWH:

i. Project leaflet and poster-electronic and paper-based materials will be

published to disseminate the project objectives and the planned outcomes, status and other relevant information;

ii. Articles to be published in national newspaper, journal, magazines, etc.;

and,

iii. Other forms of project information/dissemination regarding the project.

56 Appendix 2

2.2.49 Recommend and certify any liquidated damages to be imposed to the Contractors whenever appropriate due to his failure to complete the project at the approved contract time.

2.2.50 Prepare “punchlist” of defective and outstanding works and inspect and provide

assistance to DPWH during the assessment of the works at substantial completion as well as during the final acceptance of the completed works.

2.2.51 Before issuance of Taking-Over Certificate, the Consultant shall carry out the

necessary inspection, specify and supervise any remedial works to be carried out on any repair of defect or outstanding works and when completed, issue certificate of rectification, together with photographs (before, during and after) and recommend to the DPWH through BMC-UPMO for issuance of Certificate of Completion/Taking-Over Certificate of the Project.

2.2.52 Review Contractor’s request for Certificate of Taking-Over Certificate and

recommend such issuance.

2.2.53 Review, evaluate/examine and make recommendations to the DPWH any request/claims of Contractors for time suspension/extension, extra compensation of works or expenses and other similar items in accordance with applicable clause(s) of FIDIC General Conditions of Contract, June 2010.

2.2.54 The Consultant shall review quantities accomplished by the Contractor scheduled

for payment and ensure that “As-Built Quantities” are prepared as the work progresses and finalized.

2.2.55 Supervise, review and recommend for approval the “As-Built” drawings prepared

and submitted by the Contractors. The Consultant shall ensure that complete “As-Built” Plan/Drawings are submitted within two (2) months after project completion by the Contractors.

2.2.56 Ensure compliance with the Occupational Safety and Health Program in

accordance with the existing laws, guidelines and DPWH related issuances.

3. Post-Construction (Defects Liability Period)

3.3.1 Conduct of final inventory of facilities, equipment and other project items for turn-over to appropriate DPWH Offices in accordance with Department Order No. 07, series of 2006, together with BMC-UPMO and concerned DPWH Offices.

3.3.2 Assist the BMC-UPMO in finalizing the project accounts, preparation of other required documents and provide recommendations on any outstanding claims of the Contractors.

3.3.3 Make available Consultant’s services during the Defects Liability Period (DLP) should any problem or other concerns occur during the mandatory one (1) year DLP on the completed project, the Consultants shall assist the BMC-UPMO in resolving said problems/concerns. Supervise and ensure that the Contractors repair any defects in a proper and timely manner and recommend issuance of the Certificate of Acceptance.

Appendix 2 57

3.3.4 Review the “As-Built” Plans prepared and submitted by the Contractor and ensure that the DPWH has been provided with one (1) full size (A-3 Size) of plans on reproducible stale base materials (Mylar) and Electronic copy (E-copy) prior to the completion of the post-construction services, showing final details of 20m cross-section interval of the project as completed and blue print copy of revised plans indicating changes made through color coding, together with all data, records, field books, etc. properly indexed and catalogued.

3.3.5 Prepare and submit to BMC-UPMO fifteen (15) copies and electronic file of the Project Completion Report/Final Report after completion of each road improvement project (include but not limited to background description/scope, construction phase, disbursement, accomplishments, activities problems encountered during construction and actions taken, change orders/variations, time extension, photographs [before, during and after], GAP actions implementation and include qualitative and quantitative data, stories from beneficiaries including women, conclusion and recommendations, lessons learned and other substantive matters having an effect on the amount, cost and progress of the work). Beneficiary related data collected and reported on should be disaggregated by sex, age and minority status. The Report shall be prepared and submitted in a manner acceptable and satisfactory to DPWH and ADB.

3.3.6 Prepare a Project Completion Environmental Monitoring Report after completion of construction, detailing the status of EMP implementation, outstanding environmental issues and time-bound corrective action plan, as necessary.

3.3.7 The Consultant shall facilitate the consolidation and compilation of all necessary documents like Field Book, Weather Chart, Construction Progress Report, Summary of Laboratory Test and Test Reports and other as required of the construction to be submitted to BMC-UPMO.

3.3.8 Assist BMC-UPMO in the final inventory and turn-over of facilities, equipment and other project items to appropriate DPWH Offices.

3.3.9 Technology Transfer/Capacity Building. The Consultant shall carry out the technology transfer as an important aspect in design and construction works. The Consultant shall provide the opportunity to the DPWH officers and staff to be involved in the working team of the Consultant during the construction supervision stage for their capacity building wherever possible. If requested by DPWH, the Consultant shall brief and demonstrate the construction methodology and contract management process and procedures. The Consultant shall assist DPWH and its staff to build their capacity as a part of the On-the-Job Training (OJT) under the Project.

The Consultant shall transfer technologies including capacity enhancement on the________________, mainly through OJT as an important part in the construction supervision. The Consultant shall provide the opportunity to the DPWH officers and staff to be involved in the working team of the Consultant during the construction supervision.

Included in the Technology Transfer is the <Insert Country> Counterpart Training composed of one (1) Executive Batch and two (2) Non-Executive Batches.

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Table A2.2: Technology Transfer Participants and Duration

Batch Class No. of Participants

Training Duration (c.d.)

1 Executives 5 8 2 Non-Executives 8 15 3 Non-Executives 8 15

Each of the Technology Transfer shall be done in the form of OJT during construction and includes capacity enhancement on the following:

P2-1 Construction planning and traffic management; P2-2 Rapid construction technology. P2-3 <Insert Proposed Capacity Enhancement> P2-4 <Insert Proposed Capacity Enhancement>

E. Monitoring and Reporting

1. Reporting

(i) Carry out timely reporting to the employer for any inconsistency in executing the works and suggest appropriate corrective measures to be applied.

(ii) Prepare, compile, and submit to the employer all consolidated semi-annual reports (monthly and quarterly progress reports; periodic social and environmental monitoring reports; financial reports) as required that are related to the progress of the contractor’s performance, work quality, and financial forecast of work.

(iii) Prepare monthly reports on supervision works based on the inputs of regular site meetings, daily report, weekly report, and monthly report of the implementation works provided by the contractor.

(iv) Witness and report on any commissioning of the implementation works when the contractor has declared that the work has been completed and prepare a written report on the commissioning and stating the results of the tests measuring the status of the implemented facilities.

(v) Prepare reports on physical progress, maintenance liability, handing over, commissioning, and final acceptance of completed implementation works related to the development.

2. Monitoring

(i) Monitor the Contractor’s working methods for compliance with safety regulations and the project’s specific health and safety plan.

(ii) Monitor the Contractor’s compliance with the project’s specific social safeguard issues and environmental management plan, ensure all the environmental mitigation requirements are complied with, and prepare consolidated reports.

(iii) Monitor the Contractor’s compliance with the project’s gender activities and prepare consolidated reports.

(iv) Monitor and obtain from the Contractor their daily plant and labor returns. (v) Regularly monitor physical and financial progress, and take appropriate action to

expedite progress if necessary, so that the time for completion set forth in the contract will be duly respected by the Contractor.

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(vi) Regularly monitor physical and financial progress against the milestones as per the contract so as to ensure completion of the contract time.

(vii) Review the planned work schedule, monitor physical progress against the Contractor’s work program, and, when necessary, take appropriate actions to ensure that the Contractor maintains an adequate rate of progress to complete the work on schedule.

(viii) Monitor and witness all the testing and commissioning of the works, items, elements, and systems, including factory acceptance tests, site acceptance tests, and operational acceptance tests upon completion.

(ix) Based on the environmental impact assessment documents and environmental management and monitoring plan, monitor and report of any environmental non-compliance during construction, and undertake mitigation measures to correct the non-compliance. Periodically conduct environmental monitoring at designated sites.

16. The Consultant will prepare the following reports:

Table A2.3: Reporting Requirements Reports/Documents Deadline for Submission Inception Report. The report shall cover: (i) detailed work plan, expected staffing and assignment schedule of staff; (ii) proposed Quality Assurance Plan; (iii) details of reporting formats for physical and financial progress; and (iv) details of reporting formats for GAP, Resettlement Action Plan implementation, environmental management plan, and other related items. 10 copies electronic file, and two (2) copies to ADB.

Within thirty (30) days from the start of the construction supervision services.

Monthly Progress Reports. The report shall cover: (i) an overall summary, activities and reports produced during the month; (ii) any recommendations for actions to be taken; (iii) a summary of financial progress with details of payments to contractors. 10 copies to BMC-UPMO including electronic file, and two copies to ADB.

Within 4 days after the 25th of each month.

Monthly Progress Reports (Resident Engineer). The report shall cover:(i) description of resources mobilized, work done on each pay item during the month, physical and financial progress on each pay item; (ii) a summary of all quality control testing done by the Contractor and (separately) any check testing done by the Consultant, comparing the two sets of results; (iii) details of all payments to the contractors; (iii) highlighting when a contract is falling behind schedule and when timely completion is seriously endangered, with appropriate remedies recommended.

Within 2 days after the 25th of each month. The report is to be submitted by each Resident Engineer to the CSC Team Leader.

Quarterly Progress Report. The report shall include: (i) the work program (bar chart and S-curve) showing actual against scheduled progress by major work items; (ii) financial data, updated as appropriate, giving time, cost and financial forecast to include cost to completion; (iii) a schedule of certified payments, update of quantities and cost estimates for construction and supervision; (iv) the progress of the bridges, the work performed, variations issued, payments certified, equipment and manpower utilized by the contractor; (v) an outline of the work to be performed during the next reporting period; (vi) the causes of possible delays and the remedial measures taken and recommended; and (vii) the Consultant’s arrivals and departures. 10 copies to BMC-UPMO and two (2) copies to ADB including electronic file.

Within 5 days after the end of the quarter.

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Reports/Documents Deadline for Submission Final Report shall be prepared by the Resident Engineer for each civil works sub-project detailing all relevant aspects of project implementation including, physical progress, materials quality testing, quantities, environmental mitigation and monitoring, payments and certificates.

Semi-annual Environmental Monitoring Report (SEMR) shall include consolidated results of monthly environmental monitoring, environmental monitoring data (baseline and routine), review of the progress of environmental measures detailed in the EMP, details of complaints received and corresponding actions takes, as well as problems faced and corrective measures taken. SEMR includes detailed status of EMP implementation during the monitoring period. 15 copies and electronic file to BMC-UPMO, including a copy to ADB

Draft Final Report shall be submitted for each contract, highlighting the major issues and their resolution, method of construction, financial summary of the contract shall be included.

One month before the completion of the consulting services

Project Final Report (PFR). The PFR (10 copies to DPWH and two copies to ADB including electronic file) shall be submitted at the completion of services and is to include corrections or additions made in response to comments received on the draft final report.

At the completion of services

Technical Reports Over and Above the Reporting Required. Technical Reports is required to be submitted to allow the results of major work undertaken to be properly documented, and provided to the DPWH. Such reporting will be the normal professional method of documenting the results of work undertaken, and the individual topics/reports required that have not been separately identified.

Ongoing

Technology Transfer Plan (10 copies) To be submitted at appropriate timing in accordance with the Inception Report.

Technology Transfer Execution and Evaluation Report (10 copies) To be submitted within one (1) month after technology transfer.

Annual Project Financial Statements. To be submitted within three (3) months end of the fiscal year.

F. Duration of the Services 17. The required services shall have a duration of 54 months for construction supervision including, when necessary, the services for identification, validation and review of design plans/drawings, estimates and two (2) months post-construction.

18. The international and local Consultants shall commence work within thirty (30) days from the date of receipt of the Notice to Proceed (NTP) by the DPWH but not later than the date of the NTP to the Contractors to perform the civil works.

19. The Consultant has to be fully aware that to preclude any unnecessary additional expenses, staff should be mobilized in accordance with the actual commencement and requirements of the Project.

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20. In order to ensure the efficient deployment of the Consultant’s staff the mobilization of staff shall be confirmed and validated by DPWH. G. Key Staff and Person-Months Requirements 21. Ten (10) of International Experts and twenty-seven (27) of national experts will be engaged, over fifty-four (54) months duration of consulting services, for a total of three hundred and forty (340) person-months for International Experts and nine hundred and thirty (930) person-months for national experts. Total consulting input is one thousand two hundred and seventy (1,270) person-month. The consultant team shall consist of key personnel and supporting staff. 22. The allocation of person-month for the respective phases of consulting services for construction supervision is shown in Table A2.4.

Table A2.4: Allocation of Person-Month for the Respective Phases of Consulting Services (Construction Supervision)

Designation No. Phase wise Input in Months Total

Input in Months

Review and Construction

Phase

Post-Construction

Phase International Experts A-1 Team Leader 1 42 4 46 A-2 Sr. Bridge Engineer Bridge 1

1 30 4 34

A-3 Sr. Bridge Engineer Bridge 2 1 30 30

A-4 Sr. Bridge Engineer Bridge 3 1 36 36

A-5 Sr. Highway Engineer 1 42 4 46

A-6 Sr. Environmental Specialist 1 30 30 A-7 Sr. Social Safeguards Specialist 1 30 30 A-8 Sr. GAD Specialist 1 30 30 A-9 Sr. Capacity Development Specialist 1 12 - 12

A-10 Sr. Contract Specialist/ Document Control 1 42 4 46

Subtotal (Pro-A) 10 324 16 340 National Experts B-1 Deputy Team Leader 1 42 4 46 B-2 Bridge Engineer Bridge 1 1 30 4 34 B-3 Bridge Engineer Bridge 2 1 30 30 B-4 Bridge Engineer Bridge 3 1 36 36 B-5 Highway Engineer 1 1 30 4 34 B-6 Highway Engineer 2 1 30 30 B-7 Highway Engineer 3 1 36 36 B-8 Traffic Management Engineer 1 1 42 42 B-9 Safety and Health Officer 1 1 30 30 B-10 Safety and Health Officer 2 1 30 30 B-11 Safety and Health Officer 3 36 36 B-12 Materials Engineer 1 1 30 30 B-13 Materials Engineer 2 1 30 30

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Designation No. Phase wise Input in Months Total

Input in Months

Review and Construction

Phase

Post-Construction

Phase B-14 Materials Engineer 3 1 40 40 B-15 Quantity/Cost Engineer 1 1 30 4 34 B-16 Quantity/Cost Engineer 2 1 30 - 30 B-17 Quantity/Cost Engineer 3 1 36 - 36 B-18 Geotechnical Engineer 42 42 B-19 Geodetic Engineer 1 1 30 - 30 B-20 Geodetic Engineer 2 1 30 - 30 B-21 Geodetic Engineer 3 1 36 - 36 B-22 Hydrologist 1 26 - 26 B-23 Environmental Specialist 1 30 - 30 B-24 Social Safeguards Specialist 1 30 30 B-25 GAD Specialist 1 30 30 B-26 Financial Management Specialist 1 42 4 46

B-27 Document Controller 1 42 4 46 Subtotal (Pro-B) 27 906 24 930

Total 37 1230 40 1270 H. Assistance and Facilities to be Provided by DPWH 23. In connection with the services by the Consultants that require the cooperation of other government Agencies, the DPWH will provide liaison and will ensure that the Consultants have access to all information as maybe allowed by the laws for the performance of the services. 24. The DPWH shall make available survey data gathered during previous studies and detailed design, related and other needed reports and materials. 25. The DPWH shall assist in the maintenance of peace and order along the project when and if necessary, upon request of the Consultant. 26. The DPWH shall assist in obtaining the necessary work permits, visas and other documents necessary for the Consultant to carry out the services under the contract. 27. The DPWH shall provide the Consultants with an adequate office space in Manila for the use of the Consultants Core Team which shall be renovated/repaired to be charged against a provisional sum included in the consultancy services.

PAYMENT OF TAXES

28. Local staffs of the Consultants are subject to pay all taxes and duties as applicable in the Government of the Philippines.

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Annex 1

Location Map (To be inserted when advertised)

64 Appendix 2

Annex 2

Project Implementation Plan (To be inserted when advertised)

Appendix 2 65

Annex 3

ENVIRONMENTAL MANAGEMENT AND MONITORING PLANS

1. The environmental management plan (EMP) was prepared based on the policy principles outlined in SPS 2009. The plan includes proposed mitigation measures, requirements for environmental monitoring and reporting, the proposed institutional arrangement, capacity development and training needs, performance indicators, implementation schedule and cost estimates to implement the EMP. Mitigation of potential adverse impacts identified in Chapter V were proposed, with the objective of no significant harm and in consideration of the polluter pays principle. Table 24 provides the proposed EMP.

2. The EMP is the synthesis of all proposed mitigation and monitoring actions to avoid, minimize and mitigate adverse environmental impacts and enhance positive impacts of the project. The EMP defines institutional responsibilities for mitigation implementation and monitoring, reporting requirements, and a system to manage and provide speedy resolution of construction-related complaints through the grievance redress mechanism (GRM). The EMP is included in the bid documents to enable contractors to allocate human and financial resources for effective implementation and monitoring. The EMP will be distributed to potential contractors so that the noted mitigation and monitoring requirements can be evaluated and included in the specifications and cost proposals submitted for the proposed project. It enables the project to comply with the government and ADB requirements on environmental management. The project EMP may require updating to address unanticipated impacts or significant changes in the project scope to ensure that additional impacts could be effectively managed.

3. Contractors Environmental Management Plan. The EMP requires each contractor to prepare and submit a contractor’s environmental management plan (CEMP) consistent with the project EMP, prior to start of construction. It should be cleared by DPWH, construction supervision consultant (CSC) and ADB before any physical activity is started on the site.

4. The CEMP shall include the contractor’s management plans to mitigate construction impacts, such as air and water pollution, soil erosion, construction noise, solids, liquids and hazardous wastes, construction spoils, traffic, and community and workers’ health and safety. The contractor’s environment, health and safety officer (EHSO) has the primary responsibility for CEMP preparation hence it is important for the contractor to mobilize the EHSO upon receipt of the Notice to Proceed. The CSC will ensure that the CEMPs are in accordance with the EMP requirements before they are submitted for approval to PMO and to ADB.

5. Inasmuch as some of the associated project facilities such as borrow pits, quarry sites, construction camps, and batching plants will be identified by the contractors, the CEMPs will provide specific information on these facilities to identify potential impacts and the required remedial measures to address these environmental issues. The CEMP should provide details of activities and the location of facilities specific to the contract package. It should confirm and update the list of sensitive receptors in the IEE to identify locations where mitigation would be most required. Assessment should be conducted to determine the necessity for environmental baseline surveys prior to start of construction, to supplement secondary data available. If undertaken, the survey results shall be included in the CEMP and mitigation measures shall be adjusted accordingly based on the results.

6. CEMPs should be cleared by DPWH and ADB before civil works commence. The

66 Appendix 2

associated project facilities will also be subject to inspection by PMO and CSC to confirm that locations are appropriate and will not cause significant environmental and social issues. The CEMP should clearly state that the project will comply with relevant Philippine laws and the ADB Safeguard Policy Statement (SPS) 2009. The contractor will be responsible for CEMP compliance of the subcontractors.

7. COVID-19. The government has issued guidelines to mitigate the spread of the virus, but each sector is also encouraged to develop its own set of guidelines suited to the sector activities. DPWH has issued construction safety guidelines for infrastructure projects being implemented under the COVID-19 pandemic. Contractors are required to adopt these guidelines in the workplace. These should be incorporated in the CEMP and resources should be allocated for its implementation. A. Environmental Monitoring Plan 8. Monitoring the effectiveness of EMP entails environmental monitoring, which involves the collection of different environmental parameters (air, water noise, vibration, fauna and flora, and aquatic biota) to assess the impact of the project. Environmental monitoring entails the development and implementation of corrective actions if standards are breached, and disclosure of monitoring reports, as required in the SPS. The EMP is provided in the IEE.

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Annex 4

GENDER ACTION PLAN (GAP)

1. The project proposes to address the key gender issues identified through the Gender Action Plan (GAP) below:

Gender Objectives Activities / Targets Responsibilities Timeframe

Output 1: Three bridges crossing Marikina River completed (DMF 1) 1.1 Women’s time, poverty and drudgery reduced (OP 2.4)

1.1.1 Three climate and disaster resilient new bridges over the Marikina River, for a total of 3,023.7 meters including approach roads constructed, with gender-responsive and socially-inclusive sidewalks and pedestrian access,a (2018: not applicable). OP4.3. OP 2.4.1 (DMF 1a).

DPWH

Q3 2022-Q4 2024

1.1.2 At least 75% of women, people with disabilities and the elderly surveyed, confirm that the new bridge crossings are safer and more easily accessibleb. (2021 baseline: not applicable) OP 2.4.1, OP 2.2.3 (DMF 1b) 1.1.3 Road signages related to speed installed near busy sections (2021 baseline: not applicable)

DPWH

1.2 Women’s economic empowerment increased (OP 2.1)

1.2.1 At least 15% of skilled positions and at least 25% of unskilled positions are hired during the project’s construction phase (2021 baseline: not applicable) OP 2.1.1 (DMF 1c)

DPWH

Q1 2022-Q4 2026

1.2.2 Separate female and male toilet facilities following 2:1 ratio at the minimum where there should be two female toilets per one male toilet provided during construction and civil worksd (2021 baseline: not applicable)

Output 2: Capacity of DPWH in bridge O&M strengthened (DMF 2) 2.1 Gender

equality in human development enhanced (OP 2.2)

2.1.1 At least 70%of DPWH staff to be involved in the project, of which 20% are women, report increased knowledge on O&Mb (2021 baseline: not applicable) (DMF 2a)

DPWH Q1 2022- Q4 2026

2.1.2 Mentoring program developed and implemented for all female technical staff across DPWH to expand their technical,f managerial and leadership skills through on-the-job training with experienced senior DPWH staff, reporting at least 80% female participation (2021 baseline: not applicable) (DMF 2b)

DPWH Q1 2022-Q4 2026

2.1.3 At least 80% of project staff and contractors and at least 80% of the women hired during the project’s construction phase who participated in project-related gender sensitivity, HIV/AIDS, GBV-SEAH and other related training report having an improved

DPWH Q1 2022- Q4 2026

68 Appendix 2

Gender Objectives Activities / Targets Responsibilities Timeframe

understanding of, and practices and behavior toward, these issuesbde. (2021 baseline: not applicable) OP2.2 (DMF 2d) 2.1.4 At least 2 community consultation meetings are held per bridge during construction, in local languages, ensuring at least 50% female participation (2021 baseline: not applicable) OP 2.5.1

DPWH Q1 2022- Q4 2026

2.1.5 At least 5 information, education and communication (IEC) products developed and disseminated per bridge in accessible formats (e.g., infographics, videos, posters, etc. in Filipino and other local languages) to promote awareness on the above issues (see 2.1.1 to 2.1.3) (2021 baseline: not applicable)

DPWH Q1 2022- Q4 2026

Project Management and Gender-Specific Activities • GAP Implementation is integrated in the Annual GAD Plans and Budgets and Annual GAD Reports of

DPWH for submission to the PCW. • A Gender / Gender and Social Specialist is engaged by the IA early in project design and

implementation. • GAP reports shall follow the ADB-prescribed format and include details on progress against the GAP

(challenges, good practices, lessons learned, etc.) • Collection of sex-disaggregated and gender-related information relevant to the Design and Monitoring

Framework and GAP is in integrated in the overall project performance monitoring system. • Representatives of the GAD Focal Point System shall be tasked to oversee GAP implementation • At Midterm Review and Project Completion, the project is assessed as “gender-sensitive” at the

minimum using the PIMME checklist of the HGDG tool. • All civil works, bidding and procurement documents, and contracts require contractors to comply with

RA 6685; apply core labor standards; and comply with GAD-related mandates, including prevention and response to gender-based violence, as well as conduct HIV/AIDS, STDs, Human Trafficking, SEAH and GBV awareness and prevention trainings.

• Develop/establish and implement a program and mechanism to adequately prevent and respond to incidents of sexual harassment and other forms of gender-based violence occurring in the context of civil works (at work and in surrounding communities).

ADB = Asian Development Bank; DPWH = Department of Public Works and Highways; GAD = Gender and Development; GAP = Gender Action Plan; GBV = Gender-Based Violence; HGDG = Harmonized Gender and Development Guidelines PCW = Philippine Commission on Women; PIMME = Project Implementation, Management, Monitoring, and Evaluation; SEAH = Sexual Exploitation, Abuse, and Harassment; STD = Sexually-Transmitted Diseases a In this context, gender-responsive design features recognize the different needs and experiences of males and

females, and provides for time-saving and gender-responsive infrastructure that has well-lit, protected, and adequately-sized footpaths enough for women with small children to pass, wheelchairs, and prams; pedestrian crossings with lighting, and access features for PWDs such as ramps; and visible road signages near busy sections.

b To be measured through administration of pre-and-post tests and/or surveys. c To be measured through administration of pre-and-post-tests and/or surveys. Training can include protection from

and recourse for GBV-SEAH; skills training on basic construction roles/jobs for transfer to other future job opportunities; and leadership training for skilled hires.

d DPWH shall ensure that this will be included in procurement and bidding documents to ensure responsibility of contractors.

e HIV/AIDS, STDs, Human Trafficking and GBV-SEAH training will be delivered at the commencement of works and annually thereafter.

f Technical skills in this context cover project management skills and O&M, among other necessary skills relevant to the project.

Source: Asian Development Bank.

Appendix 2 69

2. To monitor regularly and report (at least on a quarterly basis) on the progress of GAP implementation as part of the project progress reports to be submitted to the ADB, DPWH shall utilize the GAP monitoring template below:

70 Appendix 2

GENDER ACTION PLAN (GAP) MONITORING MATRIX Date Submitted:

Activities / Targets Progress Issues / Concerns / Follow-up Output 1: Three bridges crossing Marikina River completed (DMF 1) 1.1.1 Three climate and disaster resilient new bridges over the Marikina River, for a total of 3,023.7 meters including approach roads constructed, with gender-responsive and socially-inclusive sidewalks and pedestrian access,a (2018: not applicable). OP4.3. OP 2.4.1 (DMF 1a).

1.1.2 At least 75% of women, people with disabilities and the elderly surveyed, confirm that the new bridge crossings are safer and more easily accessibleb (2021 baseline: not applicable). OP 2.4.1, OP 2.2.3 (DMF 1b)

1.1.3 Road signages related to speed installed near busy sections (2021 baseline: not applicable)

1.2.1 At least 15% of skilled positions and at least 25% of unskilled positions are hired during the project’s construction phase (2021 baseline: not applicable) OP 2.1.1 (DMF 1c)

1.2.2. Separate female and male toilet facilities following 2:1 ratio at the minimum where there should be two female toilets per one male toilet provided during construction and civil worksd (2021 baseline: not applicable)

Output 2: Capacity of DPWH in bridge O&M strengthened (DMF 2) 2.1.1 At least 70% of DPWH staff to be involved in the project, of which 20% are women, reported increased knowledge on O&Mb (2021 baseline: not applicable) (DMF 2a)

2.1.2 Mentoring program developed and implemented for all female technical staff across DPWH to expand their technical,f managerial and leadership skills through on-the-job training with experienced senior DPWH staff, reporting at least 80% female participation (2021 baseline: not applicable) (DMF 2b)

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Activities / Targets Progress Issues / Concerns / Follow-up 2.1.3 At least 80% of project staff and contractors and at least 80% of the women hired during the project’s construction phase who participated in project-related gender sensitivity, HIV/AIDS, GBV-SEAH and other related training report having an improved understanding of, and practices and behavior toward, these issuesbde. (2021 baseline: not applicable) OP2.2 (DMF 2d)

2.1.4 At least 2 community consultation meetings are held per bridge during construction, in local languages, ensuring at least 50% female participation (2021 baseline: not applicable) OP 2.5.1

2.1.5 At least 5 information, education and communication (IEC) products developed and disseminated per bridge in accessible formats (e.g., infographics, videos, posters, etc. in Filipino and other local languages) to promote awareness on the above issues (see 2.1.1 to 2.1.3) (2021 baseline: not applicable)

Project Management and Gender-Specific Activities GAP implementation is integrated in the Annual GAD Plans and Budgets and Annual GAD Reports of DPWH for submission to the PCW.

A Gender / Gender and Social Specialist is engaged by the IA early in project design and implementation.

GAP reports shall follow the ADB-prescribed format and include details on progress against the GAP (challenges, good practices, lessons learned, etc.)

Collection of sex-disaggregated and gender-related information relevant to the Design and Monitoring Framework and GAP is in integrated in the overall project performance monitoring system.

Representatives of the GAD Focal Point System shall be tasked to oversee GAP implementation

At Midterm Review and Project Completion, the project is assessed as “gender-sensitive” at the

72 Appendix 2

Activities / Targets Progress Issues / Concerns / Follow-up minimum using the PIMME checklist of the Harmonized Gender and Development Guidelines (HGDG) tool. All civil works, bidding and procurement documents, and contracts require contractors to comply with RA 6685; apply core labor standards; and comply with GAD-related mandates, including prevention and response to gender-based violence, as well as conduct HIV/AIDS, STDs, Human Trafficking, SEAH and GBV awareness and prevention trainings.

Develop/establish and implement a program and mechanism to adequately prevent and respond to incidents of sexual harassment and other forms of gender-based violence occurring in the context of civil works (at work and in surrounding communities).

ADB = Asian Development Bank; DPWH = Department of Public Works and Highways; GAD = Gender and Development; GAP = Gender Action Plan; GBV = Gender-Based Violence; PCW = Philippine Commission on Women; PIMME = Project Implementation, Management, Monitoring, and Evaluation; SEAH = Sexual Exploitation, Abuse, and Harassment; STD = Sexually-Transmitted Diseases.

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GENDER ACTION PLAN IMPLEMENTATION

1. A national GAP Implementation Consultant/Gender and Development (GAD) Specialist will be hired whose main responsibility is to support the DPWH-UPMO in the Gender Action Plan (GAP) implementation, monitoring, and reporting. Ultimately, GAP implementation, monitoring, and reporting is the responsibility of the IA. GAP progress reports shall be submitted by the IA to ADB during its submission of regular progress reports (ie at least every quarter). 2. The specialist will coordinate with responsible parties/other Consultants to ensure timeliness of and success in GAP implementation. Nature of the work contract will be intermittent for a total of 30 person-months across the whole duration of the project implementation. 3. The minimum qualification of the GAP Implementation Consultant/ Gender and Development Specialist will include: a university degree in gender, social development, and/or related field; at least 5 years progressive work experience as a gender specialist for a development program, preferably with experience in infrastructure projects; and with demonstrated knowledge of the geography and socio-cultural characteristics of the project sites. 4. General tasks of the Gender and Development Specialist will include the following:

(i) Orient the IA and partner agencies on the GAP targets and activities, partner’s roles and responsibilities, and expected deliverables. Refer to ADB Gender Tip Sheet No. 3 on implementing GAPs.

(ii) Conduct regular field visits to support and monitor GAP implementation, collect data reflecting progress on GAP targets and indicators, prepare and submit GAP progress reports (in table and narrative format) following ADB template, and maintain relevant records;

(iii) Ensure inclusion of the GAP implementation status in the periodic progress reports prepared by the IA for submission at least quarterly to ADB. Use the GAP monitoring template (ie “GAP Monitoring Matrix”) in Annex 4 to this effect. Refer to the ADB Gender Tip Sheet no. 4 on GAP monitoring and reporting;

(iv) Initiate and consult with the IA and ADB on adjustments and/or amendments to the GAP, if necessary;

(v) Provide support for ADB review mission teams to ensure that GAP implementation is being adequately assessed and reported on;

(vi) Act as the main focal point/contact for all gender-related activities between the project implementing agency, the ADB country office, NGOs and other Consultants;

(vii) Ensure that gender indicators of the GAP and those included in the DMF are incorporated into the project’s performance monitoring system and are duly reported on in the periodic and annual project progress reports;

(viii) Collect qualitative information for project implementation reports and write human interest stories or feature articles in relation to the project’s contribution to gender equality and women’s empowerment; and

(ix) Assist the IA in preparing the Project Completion Report (PCR) by drafting the Gender Appendix and by providing gender inputs to the main text and relevant appendices of the PCR. Refer to the ADB Gender Tip Sheet no. 5 on gender reporting in PCRs.

5. Specific tasks related to GAP Implementation include but are not limited to:

74 Appendix 2

(i) Review all civil works bidding documents and contracts and ensure that the relevant provisions in the GAP should be included in the documents such as the percentage of skilled and unskilled positions to be hired, conduct of HIV/AIDs, STDs, Human Trafficking, SEAH, and GBV awareness trainings are provided, among others.

(ii) Monitor contractors’ compliance on the above, as well as compliance to core labor standards as enshrined in Philippine labor laws and relevant ILO conventions; and on maintaining records and submission of reports on employment in civil works and on labor standards compliance and employee data disaggregated by sex, age, ethnicity, and residency;

(iii) Monitor gender targets in relation to construction activities and participation of female staff in trainings;

(iv) Ensure the conduct of the necessary surveys as indicated in the gender action plan, in cooperation with the IA;

(v) Develop and implement the mentoring program in coordination with the IA, ensuring that all female DPWH technical staff are enrolled and have access to the said program; and that the implementation of the said program is monitored in accordance with the relevant provision in the GAP.

(vi) Work closely with other CSCs to ensure awareness raising program on sexual harassment, STDs, HIV-AIDS, and human trafficking prevention as well as the road safety campaign are both gender-sensitive (review communication materials and messages) and reach out to the beneficiaries, including through specific targeting of women beneficiaries and community members where relevant. Provide support and technical advice to the CSC in this respect;

(vii) Liaise with community women’s groups and local government unit to ensure employment (skilled, unskilled, road safety facilitator, climate change activities) and community consultations/meetings (e.g. for road physical and safety design) related targets for women are met.

(viii) Document and consolidate reports and women’s participation in project activities and benefits;

(ix) Coordinate and cooperate with the social safeguards team on introducing project strategies that facilitate women’s equal access and benefits to the compensation payment allowance paid for affected properties, particularly common properties co-owned by male and female spouses or siblings, as applicable;

(x) Prepare, facilitate and support the gender trainings and follow-up mentoring (if needed) for IA staff and DPWH technical staff (on DPWH policies and Toolkit on making Road Infrastructure Projects Gender Responsive) in collaboration with the DPWH GAD Committee.

(xi) The Consultant shall comply with the guidelines and procedures of D.O. No. 48, series of 2011, Guidelines for Mainstreaming Gender Equality Actions in Road Infrastructure Projects, and Implement the project in accordance with ADB’s Policy on Gender and Development (1998). It will be ensured that women shall have equal access to project implementation and benefits including the opportunities to participate in project planning and implementation.

(xii) Ensure compliance with the Gender Action Plan (GAP), especially actions and targets that are related to construction and facilitate the work of the gender specialist including but not limited to regular monitoring and reporting on those specific actions and targets. HIV/AIDS and STDs prevention and anti-trafficking information for workers and communities; conduct of community consultation meetings during construction activities; employment related gender targets for skilled and unskilled positions, collection of disaggregated data.

Appendix 2 75

(xiii) Ensure that the “Project Management and Gender-Specific Activities” section in the GAP is complied with.

76 Appendix 2

Annex 5

FINANCIAL MANAGEMENT SPECIALIST

1. The objective of the Financial Management Specialist (FMS) assignment is to ensure that financial management arrangements of the project are efficiently maintained, including monitoring and implementation of FM Risk Mitigating Action Plan and submission to ADB, on an annual basis, of reliable, comprehensive, and timely information in the form of audited Annual Project Financial Statements (APFS) in English. 2. Scope of Work – development of Project Financial Management Manual, accounting and preparation of project financial statements; timely and accurate submission of financial statements and required financial information to the Commission on Audit (COA). 3. The project FMS will be under the direct supervision of the team leader and will be responsible for the following:

(i) Supporting UPMO in implementation of financial management arrangements – develop and improve the UPMO Project Financial Management Manual as needed, including the (i) mapping of DPWH expenditures categories with ADB expenditure categories; (ii) ADB requirements on completeness of financial statements such as the statement of budgeted versus actual expenditures and (iii) project internal control and audit schedule; (iv) funds withdrawal procedures, etc.

(ii) Budgeting – preparing the annual budget and maintaining the budget; perform regular actual to budget cost analysis.

(iii) Accounting and Financial Reporting

a. supporting DPWH Finance Division in development of mapping of ADB project

cost categories to DPWH Chart of Accounts; b. operating the financial accounting system of the project; c. ensuring that expenditures submitted to ADB are eligible for financing and all

necessary supporting documents, records, and accounts in support of credit withdrawals have been adequately maintained with clear linkages between the books of accounts and reports presented to ADB;

d. maintaining the advance account(s) in accordance with the provision of the relevant financing agreements and ensuring that funds disbursed out of the account were used only for the purpose intended in the financing agreement and other supporting documents;

e. manage banking transactions related to the project and preparing monthly bank reconciliation statements and reporting;

f. preparing project financial reports and project financial statements; and g. preparing inputs for the financial and performance/internal audits e.g.,

providing the auditor with access to all available data, information, legal documents, correspondence and any other information considered necessary by the auditor.

(iv) Control

Appendix 2 77

a. monitoring and ensuring that ADB financing and all external financing where ADB is not the only financier is used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided, as detailed in the supporting documents;

b. monitoring and ensuring that counterpart funds are provided and used in accordance with the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which they were provided;

c. monitoring and ensuring that goods, works, and services financed shall be procured in accordance with the relevant financing agreements including specific provisions of the ADB Procurement Policies and Procedures and relevant laws of the Borrower;

d. ensuring that funds disbursed are utilized for the purpose defined in the relevant financing agreement; and

e. supporting UPMO management in timely addressing/resolving findings and issues raised during internal audits and from Management Letters issued by COA

4. The content of the project financial statements is expected to include, as a minimum (guided by adopted accounting standards and Audit TOR):

(i) A summary of all sources of funds, as well as expenditures against a classification system that is responsive to the project’s objectives both for the current fiscal year and cumulative to date, showing ADB funds and counterpart funds and funding from other sources separately;

(ii) A summary of expenditures shown under the main project components and by

main categories of expenditures, both for the current fiscal year and accumulated to date;

(iii) A balance sheet showing accumulated funds of the project, bank balances, others

assets of the project, and liabilities, if any;

(iv) Supporting schedules to the financial statements which at least include: (i) actual vs. budget statement by sources of financing an by expenditure categories; (ii) a reconciliation of the amounts shown as “received by the project from the ADB” with those shown as being disbursed by ADB; and (iii) Statement of Expenditures (SOE) procedure listing individual SOE withdrawal applications by specific reference number and amount.

(v) The accounting policies adopted and explanatory notes.

(vi) An Advance Account Statement showing movement and reconciliation with the

bank statements. The movement in the advance account will usually comprise of: a. Deposits and replenishments received from ADB; b. Payments substantiated by withdrawal applications; c. Interest that may be earned from the balances and which belong to the

Borrower; d. The remaining balances at the end of each fiscal year.

78 Appendix 2

5. The annual project financial statements follow the requirements stated in PAI 5.07 (revised on June 2012) and should be submitted 30 days after the end of the fiscal year.

1. Qualification Requirements: Bachelor in Finance, Accounting or related field. 15 years total professional experience, 10 years of experience in accounting and financial reporting. Strong communication and writing skills. Relevant accounting qualification, experience working in public sector on ADB-financed projects would be preferable.

Appendix 2 79

OUTLINE TERMS OF REFERENCE (2) Operations and Maintenance Capacity Building Consultant

A. Scope of Services

1. The scope of services is described below. Task (01) Prepare a ready-to-use Operation Management Plan for the proposed project that

covers comprehensively all pertinent aspects, including administration, organization, budget and finance, user services and quality, inspection and maintenance procedures. The Consultant will review the O&M Strategy and Manual prepared by the Detailed Engineering Design Consultant.

Task (02) Update a practical Operations and Maintenance Manual for use in existing and to be built major bridges maintained by the DPWH, especially for prestressed concrete box girder bridge and prestressed concrete extradosed bridge. The Manual shall be replicable as model for other Regional and District Offices of the DPWH. The Task includes but not limited to conducting inspections and condition surveys, proposing suitable and cost-effective repair methods, prioritizing maintenance requirements, preparing cost estimates, and formulating rolling work plan and budget including periodic maintenance costs estimate.

For the purpose of this Task, major bridges are defined as [ ]. In addition, the consultant shall comprehensively review and duly consider the major bridges' specific design and construction features and specific circumstances, as applicable.

Task (03) Identify the current O&M needs of the DPWH and identify its gaps Task (04) Carry out on-the-job training of managers and technical staff, including

representatives from the DPWH Regional and District Offices, during Task (01) and Task (02), conduct in-house technical workshops and seminars on international best practices.

B. Implementation Arrangements 2. The consulting services will be implemented by an international consulting firm. An association with a suitable domestic consultant is encouraged to compliment consultant's local knowledge and experience. The consulting services will be carried out over about 30 calendar months on an intermittent basis. The inputs of international and national experts are summarized in Table A2.5.

Table A2.5: Summary of Experts Required Area of Expertise Duration (person-months) A. International 1. Bridge Maintenance Specialist (Team Leader) 9.00 2. Bridge Operation and Management Specialist 2.00 3. Bridge Maintenance Specialist 2.00 Subtotal (A) 13.00

80 Appendix 2

Area of Expertise Duration (person-months) B. National 1. Bridge Engineering and Maintenance Specialist 9.00 2. Bridge Operation and Management Expert 6.00 3. Bridge Engineer 9.00 4. Financial Analyst 1.00 Subtotal (B) [1] 25.00

Total (A+B) 38.00 C. Reports, Deliverables, and Time Schedule

3. The consultant will submit the reports listed in Table A2.6, in English, to DPWH. The reports must satisfy international best practice and acceptable to DPWH and ADB.

Table A2.6: Report Requirements Description and/or Technical Accomplishments Submission Deadline

(months after commencement) Inception Report 3 Interim Report (i) Draft O&M Manual for the concerned types of the bridges (ii) Training progress

10

Draft Final Report (i) Final O&M Manual for the concerned types of the bridges (ii) Summary of overall training results

24

Final Report 27 D. Data, Local Services, Personnel, and Facilities to be provided by the Government 4. The government will provide the consultant with the following:

(i) office space including furniture and utilities; (ii) access to data, records, and other information required to perform the assigned

tasks; and (iii) counterpart staff and engineers to coordinate with the consultant team.

E. Experts Input 5. Proposing entities will determine the number and the nature of experts they will require to achieve the objectives of the contract, in accordance with their proposed approach and methodology. However, below experts are required a minimum of three key international and four key national experts:

(i) Team Leader/ Bridge Maintenance Specialist (international). Bachelor in Civil/ Structural or equivalent relevant Engineering. 20 years total professional experience, 15 years experience of working as Bridge Maintenance/ Bridge Designer or similar post.

(ii) Bridge Operation and Management Specialist (international). Bachelor in Civil/ Structural or equivalent relevant Engineering. 20 years total professional experience, 10 years experience of working as Bridge Operation and Management Specialist or similar post.

(iii) Bridge Maintenance Specialist (international). Bachelor in Civil/ Structural or equivalent relevant Engineering. 20 years total professional experience, 10 years

Appendix 2 81

experience of working as Prestressed Concrete Box Girder or Prestressed Concrete Extradosed Bridge Designer/ Maintenance.

(iv) Bridge Engineering and Maintenance Specialist (national). Bachelor in Civil/ Structural or equivalent relevant Engineering. 20 years total professional experience, 10 years experience of working as Bridge Engineering and Maintenance Specialist or similar post. Working experience in international donor agency funded project would be preferable.

(v) Bridge Operation and Management Expert (national). Bachelor in Civil/ Structural or equivalent relevant Engineering. 20 years total professional experience, 10 years experience of working as Bridge Operation and Management Specialist or similar post. Working experience in international donor agency funded project would be preferable.

(vi) Bridge Engineer (national). Bachelor in Civil/ Structural or equivalent relevant Engineering. 20 years total professional experience, 10 years experience of working as Bridge Engineer or similar post. Working experience in international donor agency funded project would be preferable.

(vii) Financial Analyst (national). Bachelor in Engineer or Economics. 15 years total professional experience, 10 years experience in financial analysis or preparation of cost estimates and budgets on bridge projects or similar post. Working experience in international donor agency funded project would be preferable.

International Experts: 13 person-months/ National Experts: 25 person-months

82 Appendix 3

DESIGN AND MONITORING FRAMEWORK

Impact the Project is Aligned with Efficiency of the transport sector enhanced to sustain economic growth and increase competitiveness (Philippines Development Plan, 2017–2022)a

Results Chain Performance Indicators

Data Sources and Reporting

Mechanisms Risks and Critical

Assumptions Outcome By 2026: Efficiency of road travel in the project area improved

a. Average speed of vehicles in the project area increased by 5% (2020 baseline: 20.9 kilometers per hour) (OP 4.1)

a. Project progress and completion reports

R: Increase in the number of motor vehicles in the project area beyond the projected parameter R: The other six bridges in Metro Manila (project influence area) are not completed in time as plannedb

Outputs By 2026: 1. Three bridges

crossing the Marikina River constructed

1a. Three climate- and disaster-resilient new bridges over the Marikina River, for a total of 3,023.7 meters including approach roads, constructed, with gender-responsive and socially inclusive sidewalks and pedestrian accessc (2018 baseline: not applicable) (OP 1.3.1, OP 4.3, OP 2.4.1)

1b. At least 75% of women, people with disabilities, and older persons surveyed confirm that the new bridge crossings are safer and more easily accessible (2021 baseline: not applicable) (OP 2.4.1, OP 2.2.3)

1a.–c. Project progress, monitoring, and completion reports by DPWH

R: Low capacity of DPWH for implementation

1c. At least 15% of skilled positions and at least 25% of unskilled positions are occupied by women during the project’s construction phase (2021 baseline: not applicable) (OP 2.1.1)

Appendix 3 83

Results Chain Performance Indicators

Data Sources and Reporting

Mechanisms Risks and Critical

Assumptions 2. Capacity of DPWH

for bridge O&M strengthened

2a. At least 70% of DPWH staff involved in the project (of whom at least 20% are women) report increased knowledge of O&Md through the training program (2021 baseline: not applicable) (OP 2.2.1, OP 6.1) 2b. Mentoring program developed and implemented for all female technical staff across DPWH to expand their technical,f managerial, and leadership skills through on-the-job training with experienced senior DPWH staff, reporting at least 80% female participation (2021 baseline: not applicable) (OP 2.2.1)

2a.–d. Project progress, monitoring, and completion reports by DPWH

2c. Updated O&M manual on the prestressed concrete box girder and “extradosed”g bridges (2021 baseline: not applicable)

2d. At least 80% of project staff and contractors, and at least 80% of the women hired during the project’s construction phase who participated in project-related gender sensitivity, HIV/AIDS, GBV-SEAH, and other related training report having an improved understanding of, and practices and behaviors toward, these issuesc, d

(2021 baseline: not applicable) (OP 2.2.1, OP 2.2.3)

84 Appendix 3

Key Activities with Milestones 1. Three bridges crossing the Marikina River constructed 1.1 Prepare detailed engineering design by July 2021 1.2 Recruit construction supervision consultant by June 2022 1.3 Award civil works contracts for bridges no. 2 and no. 3 by June 2022 h 1.4 Complete construction works by December 2026, including 1 year of a defect liability period 2. Capacity of DPWH for bridge O&M strengthened 2.1 Recruit capacity building consultant by June 2024 2.2 Complete capacity strengthening program by December 2026 Inputs Asian Development Bank: $175.10 million (loan) Government of the Philippines: $72.40 million

DPWH = Department of Public Works and Highways; GBV-SEAH = gender-based violence and sexual exploitation, abuse, and harassment; O&M = operation and maintenance; OP = operational priority; R = risk. a Government of the Philippines, National Economic and Development Authority. 2017. Philippine Development Plan,

2017–2022. Pasig. b The Sta. Monica–Lawton bridge is locally financed and scheduled to be opened in August 2021; the remaining five

bridges are supported by the Government of the People’s Republic of China and will be opened from September 2021 to June 2024.

c In this context, gender-responsive design features recognize the different needs and experiences of males and females, and provide for time-saving and gender-responsive infrastructure. Well-lit, protected, and adequately sized sidewalks wide enough for women with small children to pass through with prams, and for wheelchairs will be provided. The bridge design also suggests pedestrian crossings with lighting, access features such as ramps for people with disabilities, and visible road signs near busy sections.

d To be measured through surveys. Training may include protection from, and recourse for, GBV-SEAH; skills training on basic construction roles and jobs to enable trainees to transfer to other future job opportunities; and leadership training for skilled staff.

e Training may include protection from, and recourse for, GBV-SEAH; skills training on basic construction roles and jobs to enable trainees to transfer to other future job opportunities; and leadership training for skilled staff.

f In this context, technical skills cover project management, O&M, and other necessary skills relevant to the project. g The “extra-dose” feature allows long-span construction with a relatively light girder and easier maintenance. h The civil works contract for Bridge No. 1 is scheduled to be awarded by June 2023. Contribution to Strategy 2030 Operational Priorities Expected values and methodological details for all OP indicators to which this operation will contribute are detailed in Contribution to Strategy 2030 Operational Priorities (accessible from the list of linked documents in Appendix 2). Source: Asian Development Bank.

Appendix 4 85

AUDITED PROJECT FINANCIAL STATEMENTS (APFS)

A. Draft Statement of Audit Needs (Auditor’s Terms of Reference 1)

1. Background

1. [A description of the project will be provided with a focus on the purpose for which the funds are intended consistent with broad project objectives and budget. A description of the executing agencies (EAs) and implementing agencies (IAs) will be included along with the related accounting and financial management practices, total loan and/or grant amount (share of ADB, cofinanciers, and government) subject to audit, financial reporting periods to be audited (whether it is the first audit or last audit), and other relevant information that should be brought to the attention of the auditors.] 2 B. Management Responsibility for Preparing Project Financial Statements 2. Management of the EAs/IAs is responsible for preparing and fairly presenting the project financial statements, and for maintaining sufficient internal controls to ensure that the financial statements are free from material misstatement, whether due to fraud or error. In addition, management is responsible for ensuring that funds were used only for the purpose(s) of the project, for compliance with financial covenants (where applicable), and for ensuring that effective internal controls, including over the procurement process, are maintained. In this regard, management must:

(i) Prepare and approve the Project Financial Statements, which is duly reconciled and consistent with ADB’s records

(ii) Prepare and sign a Statement of Compliance. (Annex 1) (iii) Prepare the project background and the EAs’ and/or IAs’ company description

(Annex 2) (iv) Ensure the completeness and accuracy of the relevant documents that may be

needed for the audit (Annex 3) C. Objectives of the Audit 3. The objectives of the audit of the projects financial statement of each project is to enable the Commission on Audit (COA) to (i) express a professional opinion on the fair presentation of project financial statements; and (ii) provide reasonable assurance opinion over certain specific representations made in the Statement of Compliance. D. Scope of Audit 4. The audits will comprise of (i) annual audit of the project financial statements 3and (ii) compliance audit. The audits should cover the entire project i.e. all sources and applications of funds by all parties and implementing agencies.

1 This statement of audit needs was developed to guide project teams and executing and implementing agencies in

communicating the Asian Development Bank’s (ADB) auditing requirements to the auditors. 2 Detailed background of the project and the executing agency and/or implementing agency should be included in

Appendix 2. 3 Annual audit requirement from project effectiveness date until loan closing date.

86 Appendix 4

E. Auditing Standards 5. The statutory audit is required to be conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAI). These standards require that the auditor comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the project financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the project financial statements. The procedures selected include such tests as the COA considers necessary. The audit will include a sufficient sample of disbursements made under reimbursement procedures to determine whether funds disbursed were utilized for the purposes defined by the financing agreement. Planning and conducting the audit will be in accordance with a risk-based framework with a detailed audit work program. The audit coverage will consider the risk of material misstatement as a result of fraud or error. The audit program should include procedures that are designed to provide reasonable assurance that material misstatements will be detected. F. Project Financial Statements Audit 6. Under the audit of the project financial statement, the following shall be conducted:

(i) An assessment of whether the project financial statements have been prepared in accordance with International Public Sector Accounting Standards Accrual Basis IPSAS (whichever is applicable) and give a true and fair view of the financial statements of the project during the fiscal year. Any material deviations from these standards, and the impact of such departures on the project financial statements as presented should be stated;

(ii) An assessment of the effectiveness of the overall control environment and the

systems of internal control over compliance with requirements that could have a direct and material effect on the financial statements including internal controls over the processes for financial reporting for the project; and

(iii) An assessment of compliance as indicated in Annex 1.

G. Audit Deliverables

1. APFS and the Auditor’s Report on the APFS

7. The auditor’s report shall contain the auditor’s opinion on whether the project’s financial statements fairly present the results of the project’s operations in accordance with the financial reporting standards adopted by the project. The APFS, auditor’s opinions on the APFS, and the management letter should be submitted, all in English, and should be received by ADB no later than six months after the end of the project’s fiscal year, subject to timely submission of project financial statements by the EA and/or IA. The COA shall submit the report to the EA and/or IA of the project which should then promptly forward one copy of the audited financial statements and auditor’s opinions to ADB. In order not to delay the submission of the auditor’s report, the EA and/or IA should submit the financial statements to COA no later than the 14th day of February after the end of each of the project’s fiscal year.

Appendix 4 87

8. The auditor’s report shall also contain separate auditor’s opinions providing reasonable assurance over the project financial statements following ISSAI 4000 “Compliance Audit Standard” for the following confirmations provided by Management in the Statement of Compliance (Annex 1):

(i) that the proceeds of the loan were used only for the purpose(s) of the project; (ii) that the borrower or executing agency was in compliance with the financial

covenants of the legal agreement(s), where applicable; (iii) that the advance account (and sub-accounts) gives a true and fair view of the

receipts collected and payments made and supports advance and sub-account- liquidations and replenishments during the year; and

(iv) that adequate supporting documentation has been maintained to support claims to ADB under Statement of Expenditure procedure and that the expenditures are eligible for financing under the loan or grant agreement.

9. For additional auditor’s opinion on the compliance with financial covenants, the auditor should confirm the level of compliance for each financial covenant contained in the legal agreement(s) for the project. The auditor will also indicate, where applicable, the extent of any non-compliance by reference to the specified (required) and actual performance measurements for each financial covenant for the fiscal year concerned.

2. Management Letter

10. The auditor will provide a management letter containing, at a minimum, the following:

(i) Any weaknesses in the accounting and internal control systems that were identified during the audit, including any irregularity in the use of the advance account and statement of expenditures (SOE) procedures (where applicable);

(ii) Any identified internal control weaknesses related to the procurement process such as, over the bidding, evaluation and contract management domains;

(iii) Recommendations to rectify identified weaknesses; (iv) Management’s comments on the audit recommendations along with the timeframe

for implementation; (v) The status of significant matters raised in previous management letters; (vi) Any other matters that the auditor considers should be brought to the attention of

the project’s management; and (vii) Details of any ineligible expenditure4 identified during the audit. Expenditure is

considered ineligible if it refers to (i) expenditures incurred for purposes other than the ones intended under the legal agreement(s); (ii) expenditures not allowed under the terms of the legal/financing agreements; and (iii) expenditures incurred in violation of applicable government regulations. If the auditor reports any ineligible expenditure in the management letter, the details of the findings should include the funding source to which the observation relates.

H. Specific Considerations 11. The auditor will, during the course of the audit, pay particular attention to the following:

4 If the auditor reports any ineligible expenditure in the management letter, the details of the findings should include

the funding source to which the observation relates.

88 Appendix 4

(i) The use of development partner and/or other cofinanciers’ funds in accordance

with the relevant legal and financing agreements; (ii) For parallel financing, each financier may audit its funded scope, except when

there is any agreement for joint audit with related financiers; (iii) The provision of counterpart funds in accordance with the relevant agreements

and their use only for the purposes intended; (iv) The maintenance of proper books and records; (v) The existence of project fixed assets and internal controls related thereto; (vi) Where the audit report has been issued under ISSAI 1800, it shall include the

mandatory paragraph alerting users of the audit report that the project financial statements are prepared in accordance with a special purpose framework and that, as a result, the project financial statements may not be suitable for another purpose. The auditor shall include this paragraph under an appropriate heading;

(vii) Where reasonable assurance has been provided using ISSAI 4200, the assurance report must contain, among others: - A statement that the engagement was performed in accordance with ISSAI

4200; - Subject matter; - Criteria for measurement; - A summary of the work performed; and - The auditor’s conclusion.

(viii) On the advance fund procedure (where applicable), audit procedures are planned and performed to ensure (a) the advance account (and any sub-accounts) has been managed in accordance with ADB’s Loan Disbursement Handbook, (b) the cash balance of the advance account (and any sub-accounts) is supported by evidence, (c) the expenditures paid from the advance account (and any sub-accounts) comply with the approved project purpose and cost categories stipulated in the loan agreement, and (d) the amount of expenditures paid from the advance account (and any sub-accounts) comply with disbursement percentages stipulated in the loan agreement;

(ix) Adequate supporting documentation has been maintained to authenticate claims stated in the SOE for reimbursement of eligible expenditures incurred and liquidation of advances provided to the advance account (where applicable);On the SOE procedure (where applicable), audit procedures are planned and performed to ensure that (a) the SOEs have been prepared in accordance with ADB’s Loan Disbursement Handbook, (b) the individual payments for expenditures stated in the SOE are supported by evidence, (c) the expenditures stated in the SOEs comply with the approved project purpose and cost categories stipulated in loan and/or grant agreement, and (d) the amount of expenditures stated in the SOEs comply with disbursement percentages stipulated in the loan agreement; and

(x) Any weaknesses in internal controls over the procurement process. 12. Public disclosure of the project financial statements, including the auditor’s opinion on the audited project financial statements, will be guided by ADB’s Access to Information Policy (2018). After review, ADB will disclose the audited project financial statements and the opinion of the auditor on the audited project financial statements no later than 14 calendar days of ADB’s

Appendix 4 89

confirmation of their acceptability by posting them on ADB’s website. The management letter and the additional auditor’s opinions will not be disclosed. 5 I. Other Matters

1. Statement of Access

13. COA will have full and complete access, at all reasonable times, to all records and documents including books of account, legal agreement(s), bank records, invoices, etc. as listed in Annex 3 and any other information associated with the project deemed necessary by the auditor. The ADB staff shall have access and be able to review the audit work papers applicable to the audit. 14. COA will be provided with full cooperation by all employees of the project’s EAs and/or IAs and the project implementing units, whose activities involve, or may be reflected in, the annual project financial statements. The auditor will be assured rights of access to banks and depositories, consultants, contractors and other persons or firms hired by the EAs and/or IAs.

2. Communication

15. It is expected that the COA will report matters that come to the COA’s attention during the audit which might have a significant impact on the implementation of the project; and any other matters that the COA considers pertinent, including reporting of indication of fraud and corruption requiring further follow up or investigation by the relevant agencies and units.

3. Exit Conference

16. The COA will hold a closing or exit conference with senior officials of the project prior to concluding the audit. Upon completion of the fieldwork, the auditor should present the results of the external audit to the relevant EAs and/or IAs. The COA should document the exit conference for inclusion in the audit work papers.

4. Organizational Arrangements

17. The COA will be responsible for consolidated audit reporting and making the necessary arrangements for field audit assignment involving the COA regional offices.

5 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2018.

Access to Information Policy.

90 Appendix 4

Annex 1

STATEMENT OF COMPLIANCE Management must prepare and sign a Statement of Compliance, which includes the following: (i) That project financial statements are free from material misstatements including omissions and errors, and are fairly presented; (ii) That the borrower or executing agency has utilized the proceeds of the loan only for the purpose(s) of the project; (iii) That the borrower or executing agency was in compliance with the financial covenants of the legal agreement(s) (where applicable); (iv) That the borrower or executing agency/implementing agency was in compliance with relevant laws and regulation; (v) That the advance fund procedure, where applicable, has been operated in accordance with the ADB Loan Disbursement Handbook; (vi) That adequate supporting documentation has been maintained to authenticate claims stated on the statement of expenditures (SOE), where applicable, for reimbursement of eligible expenditures incurred and liquidation of advances provided to the advance account; and (vii) That effective internal control, including over the procurement process, was maintained.

Appendix 4 91

Annex 2

PROJECT BACKGROUND / EXECUTING AGENCIES AND IMPLEMENTING AGENCIES’ DESCRIPTION

A. The Project to be Audited:

(i) Project No: (ii) Grant No: (iii) Project Name: (iv) Executing Agency: (v) Implementing Agencies: (vi) Total Project Costs: (from all financiers)

B. Project Description: 1. Describe the project here, in the context of its contribution to achievement of the EA’s economic goals. The auditor must understand the "purpose for which the funds are intended" in the context of the broad project objectives as well as in terms of the specific project budget. C. The Executing and the Implementing Agencies (EA/IAs): 2. A detailed description—both legal and generally informative—should be provided here to enable the auditor to understand fully the nature, location and objective of the executing and implementing arrangements among agencies (EA/IAs), and the entities under audit. Geographic characteristics should be described, together with organization charts; names of senior managers.

92 Appendix 4

Annex 3

DOCUMENTS TO BE REVIEWED BY THE AUDITOR A. General project documents

(i) Report and Recommendations of the President (ii) Loan/Grant Agreement (iii) Project Administration Manual (iv) Documents on appointments of Project Management Units (Director, Deputy

Director, Chief Accounts) and delegation of authorities (v) Documents on registration of VAT codes with local authorities (vi) Documents on registration of authorized signatories with the banks (vii) Annual budget and workplans, including all revisions, if any (viii) Annual procurement plans, if any (ix) Quarterly and annual progress reports (x) Comparison between actual expenses and budgets, if any, prepared by Project

management (xi) A summary of key financial covenants as indicated in the Loan/Financing

Agreements and the self-assessment of the Project management on these financial covenants

(xii) Copies of all meeting minutes of Project Steering Committee and Project management unit, if any

(xiii) Internal audit reports, prior year audited reports and management letter, if any External review reports.

B. Accounting books/records

(i) Annual Financial Statements for the year subject to audit, including the financial statements of the Central PMU and all PPMU (Summary sources of funds, Summary of expenditures, Balance sheet, IA statement…etc).

(ii) Accounting books and all original supporting documents (hard and soft copies) (iii) Confirmations of fund received from the ADB during the year (iv) Disbursements and payment vouchers with original supporting documentation (v) Bank statements, cash count minutes, periodic bank reconciliation documents

(signed by authorized personnel of the Project) (vi) Reports and supporting documents for counterpart expenditure for the year subject

to audit (vii) Documents on monthly VAT declaration and periodic VAT refund claims, if any (viii) List of outstanding advances at the year end and the related aging report, if any.

The total of this list should be reconciled to the advances of the balance sheet (ix) Summary of procurement contracts signed and ongoing during the year (x) Bidding documents (if any) (xi) Consultant contracts (local and international), minutes of evaluation board,

consultant reports (if any) (xii) Record of training courses, attendance lists and course evaluations (if any) (xiii) Fixed asset registers (xiv) Minutes recording annual physical checking of equipment (including all minutes

completed by PPMU) (xv) Logbooks for vehicles (if any)

Appendix 4 93

(xvi) Access to Programme’s/ Projects’ computers and other office equipment under the supervision of responsible Programme/ Project personnel (strictly for audit purposes only)

C. Personnel

(i) List of all Project’s contracted staff and their related recruitment documents, personnel records

(ii) Documents on PIT, Social Insurance and Health Insurance calculations and monthly declaration and payments