Amu Bukhara Irrigation System Rehabilitation Project (RRP UZB 44458)

Project Administration Manual

Project Number: 44458-013

Loan Number: L3025/L3026
11 September 2020 (revised/updated Version)

Republic of Uzbekistan: Amu Bukhara Irrigation

System Rehabilitation
 CONTENTS

Abbreviations i
I. Project Description 1
A. Impact and Outcome 2
B. Outputs 3
II. Implementation plans 4
A. Project Readiness Activities 4
B. Overall Project Implementation Plan 5
III. Project Management Arrangements 6
A. Project Implementation Organizations – Roles and Responsibilities 6
B. Key Persons Involved in Implementation 8
C. Project Organization Structure 10
IV. Costs and financing 15
A. Detailed Cost Estimates by Expenditure Category ($ Million) 16
B. Allocation and Withdrawal of Loan Proceeds 16
C. Detailed Cost Estimates by Outputs/Components ($ Million) 18
D. Detailed Cost Estimates by Financier 19
E. Contract and Disbursement S-curve 20
F. Fund Flow Diagram 21
V. Financial management 22
A. Financial Management Assessment 22
B. Summary of Findings 22
C. Disbursement 24
D. Accounting 26
E. Auditing and Public Disclosure 26
VI. Procurement and Consulting Services 28
A. Advance Contracting 28
B. Procurement of Goods, Works and Consulting Services 28
C. Procurement Plan 29
D. Consultant's Terms of Reference 37
VII. Safeguards 39
A. Environment 39
B. Land Acquisition and Resettlement, and Indigenous peoples 40
VIII. Gender and social dimensions 40
IX. Performance Monitoring, Evaluation, Reporting and Communication 41
A. Project Design and Monitoring Framework 41
B. Monitoring 41
C. Reporting 42
D. Stakeholder Communication Strategy 43
X. Anticorruption Policy 44
XI. Accountability Mechanism 45
XII. Record of PAM Changes 45
 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 Government and Asian Development Bank (ADB) policies and procedures.
The PAM should include references to all available templates and instructions either through
linkages to relevant URLs or directly incorporated in the PAM.

 The Ministry of Water Resources (MWR) of Uzbekistan, the executing agency, is

wholly responsible for the implementation of ADB financed projects, as agreed jointly
between the borrower and ADB, and in accordance with Government and ADB’s policies and
procedures. ADB staff is responsible to support implementation including compliance by
MWR 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 Loan1 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.

 The PAM does not apply to the parallel financing and full administration by Japan
International Cooperation Agency (JICA).

1 The name of the operational financing document may vary on a project to project basis; this reference shall be
deemed to encompass such variations, e.g., a Framework Financing Agreement, as applicable.
 i

Abbreviations

ABIS = Amu Bukhara Irrigation System

ABISA = Amu Bukhara Irrigation System Authority
ABMC = Amu Bukhara Main Canal
ADB = Asian Development Bank
ADF = Asian Development Fund
AFS = audited financial statements
AIWSP = Agency on Implementation of Water Sector Projects
BISA = Basin Irrigation System Administration
CDM = clean development mechanism
COM = Cabinet of Ministers
DSS = decision support system
DMF = design and monitoring framework
GHG = greenhouse gas
EA = executing agency
EMP = environment management plan
FMA = Financial Management Assessment
GoU = Government of Uzbekistan
ICB = international competitive bidding
IEE = initial environmental examination
IFI = International Financial Institutions
IPDP = Indigenous people’s development plan
ISA = International Standards on Auditing
ISA = Irrigation System Administration
JICA = Japan International Cooperation Agency
LAR = land acquisition and resettlement
LARP = land acquisition and resettlement plan
m3/s = Cubic meter per second
M&E = monitoring and evaluation
M&R = modernization and rehabilitation
MWR = Ministry of Water Resources of Uzbekistan
MOE = Ministry of Economy
MOF = Ministry of Finance
MWh = megawatt hours
NCB = national competitive bidding
OCR = ordinary capital resources
O&M = operation and maintenance
PAM = project administration manual
PIO = project implementation office
PMO = project management office
PPMS = project performance monitoring system
QCBS = quality- and cost based selection
SCADA = supervisory control and data acquisition
SOE = statement of expenditure
SPS = Safeguard Policy Statement
tCO2e = tonnes of carbon dioxide equivalent
WCA = water consumers’ association
 I. PROJECT DESCRIPTION

1. The project will address irrigated agriculture and water resources management issues in
Amu Bukhara Irrigation System (ABIS) in Bukhara and Navoi Provinces. The impact of the
project is sustained economic and social welfare in communities dependent upon ABIS. This will
be achieved by a sustainable and reliable water supply in ABIS through implementation of four
outputs; (i) one new pump station built and four existing ones modernized and rehabilitated, (ii)
conveyance efficiency in the ABIS main canal increased, (iii) the capacity of Basin Irrigation
System Administration (BISA), Irrigation System Administrations (ISAs), water consumers’
associations (WCAs), and farmers to adapt to climate change increased; and (iv) project and
ABIS managed efficiently.

2. ABIS Overview. The Bukhara Province is located in the central part of Uzbekistan, which
borders Turkmenistan. The population of the Province is 1.7 million in 2012, the population within
the command area is about 1.8 million, including entire Bukhara Province and two districts of
Navoi Province. Population growth of 1.7% a year in the ABIS command area will have a potentially
significant impact on the availability of water.2 The ABIS is located on the right bank of Amu Darya
River, has a command area of 315,000 ha, in which around 6,500 farmers are dependent on
agriculture activities with the support of 145 WCAs (as of 2011), and serves the irrigated lands of the
Bukhara-Zarafshan and Karakul oases and the Karaulbazar massif. The ABIS intake channel from
the Amu Darya River and about 22 kilometers (km) of the 385-km main canal from the intake
channel are located in neighboring Turkmenistan. Operation and maintenance (O&M) of these
sections is carried out by the Ministry of Water Resources (MWR) under a bilateral agreement
between the two countries.3 ABIS also provides domestic water supply for an estimated 725,000
people in the ABIS command area.4 The importance of reliable water supplies for ABIS is thus
significant, as 68% of the population live in rural areas and fully rely on irrigated agriculture.

3. During the last century, when cotton production reached its maximum scale in Uzbekistan,
large pump stations were constructed for irrigation which covered almost all regions of the country
including Bukhara and Navoi Provinces. After construction of the Amu Karakul Canal (1962) and
Amu Bukhara Canal (1964-1965, 1975), the Bukhara Province and a portion of the Navoi Province
came to be irrigated with water from the Amu Darya River, which is the Amu Bukhara Irrigation
System. Since 1990, cotton as a mono-crop has been gradually reduced due an increase in the
area for winter wheat, and its fields have been reduced by up to 55-60%, which is within the
recommended range of cotton-wheat crop rotation. Further, in recent years some trend has been
observed towards more crop diversification. In 2011 after harvesting almost half the area of wheat
was planted by double crops, including vegetables, melons and gourds, legumes, maize etc.5

4. The ABIS was commissioned in 1965, and its main pump stations covering 250,000 ha have
exceeded their design life spans. The system’s main, and inter- and on-farm canals have been
obsolete and in poor condition. Water supplies have become more unreliable due to: (i) continued
high expenditures (SUM154 billion including electricity cost of SUM122 billion in 20116) of the
O&M in ABIS, which led to several major failures of pumping equipment, and the likelihood of
2 Bukhara Province. 2012. Statistic Bulletin. Bukhara. http://www.buxoro.uz/
3 The Agreement on cooperation on water economics between Uzbekistan and Turkmenistan was signed in January
1996.
4 This figure was obtained from the statistics departments of Bukhara Province, Kizil Tepa, and Karmana districts.
5
In 2010/11, only 1 metric ton (MT) of cotton was produced in the country while approximately 1.6 MT was produced in
1990/91. The decrease in cotton area is attributed to issues concerning food security, problems with irrigation, and
generally the risks associated with monoculture and policy in favour of grain production.
6 O&M Cost Report of ABISOA for 2007-2011.
2

future declines in pumping capacity and ultimate failure of the system; and (ii) deteriorated
regulatory structures and inefficient water supply operation and management of ABIS leading
inefficient water distribution (15%-20% of water has not reached farms from main canal intakes) and
low conveyance efficiency (15% of water has not reached main canal intakes from the intake of
Amu Darya River ) resulting in overall irrigation efficiency of about 40%, posing a significant risk to
agricultural production in the region and to the livelihood of local communities. In addition, these
aging and energy-inefficient pump stations are consuming overly large amounts of electricity—
equivalent to about 60% of total energy consumption in Bukhara Province— and their greenhouse
gas (GHG) emissions in 2011 are estimated to be equivalent to 758,000 to 935,000 tons of carbon
dioxide (tCO2e).

5. ABIS area is also suffering poor land quality and about 12% of lands in Bukhara Province
considered unsuitable for agriculture. This is mainly due to salinity, attributed to overuse of
irrigation water under arid climatic and poor drainage conditions, which leads to salt
accumulation in the soil. According to data from Hydrogeological Meliorative Expedition
moderately saline lands in ABIS cover about 25-30% and severely saline about 3-4% of the
irrigated lands. This is attributed to the overuse of irrigation water which accumulate salts in the
soil profile under arid climate condition and poor drainage condition.

6. Climate Change Impacts on ABIS. The following climate change impacts to ABIS are
identified; (i) the average crop water demand of ABIS is likely to increase by about 9% by 2050;
(ii) climate change alone will result in a decrease in average river flow from the current 38
km³/year to an estimated range of between 22 and 28 km³/year due to possible rising
temperatures and loss of glacial storage in the headwaters; (iii) the inter-annual variability of
available Amu Darya flow is expected to increase from a historic range of 31 to 34%, to a
projected (2050) range of 36 to 44%; (iv) more frequent water deficiencies in some years will
have the potential to pose serious irrigation problems by 2050, requiring emergency drought
management plans; and (v) in order to cope with these changes there is an imperative to
massively reduce the irrigation off-take before 2050. Such drier environment is expected to be
more reliant on already scarce water resources. Due to the potential for reduced diversions from the
Amu Darya River, the ever present risk of drought, and future challenges related to global climate
change, feasible adaptation measures are required, including better agricultural practice aimed
towards increasing water productivity and preserving land fertility.

7. The project will support the government’s 2011 Integrated Rural Development Program,
which places priority on improving water management, increasing the productivity of water use,
and rehabilitating irrigation systems considering the continued facing problems arising from
increasing water stress, which its resource-intensive irrigation system and lesser glacial water
flows as a result of global warming.7

A. Impact and Outcome

8. The impact of the project is sustained economic and social welfare in communities
dependent upon the ABIS. This will be achieved by the outcome: A sustainable and reliable
water supply in the ABIS command area.

7
ADB. 2011. Report and Recommendation of the President to the Board of Directors on a Proposed Multitranche
Financing Facility to the Republic of Uzbekistan for Housing for Integrated Rural Development Program Investment
Project. Manila.
 3

B. Outputs

9. The outcome will be achieved through the following outputs:

(i) Output 1: One new pump station built, and four existing ones modernized
and rehabilitated. This covers: (a) the replacement of Khamza 1 including its
auxiliary pump stations with a new Khamza 1 pump station; (b) modernization
and rehabilitation (M&R) of Kuyu Mazar pump station; (c) M&R of Khamza 2
pump station; and (iv) M&R of Kizil Tepa and its auxiliary pump stations. These
are major existing pump stations in ABIS, and Khamza 1 and Kuyu Mazar pump
stations commissioned in 1965 exceeded far beyond their economic life spans,
and the other pump stations commissioned in 1975. The benefits of the
replacement and M&R of these pump stations are: (a) reduction of energy-
consumption; (b) sustained and reliable water supply without operational and
system failures; (c) reduction of GHG emission by estimated 23% from estimated
758,155.27 tCO2e/year in 2011 to estimated 580,065.27 tCO2e/year, leading to
an estimated emissions reduction of 178,090 tCO2e/year upon project
completion. The M&R includes the replacement of pumps and motors,
mechanical and electrical equipments, screen gates, gantry cranes, and
strengthened building structures, depending on pump station. The output does
not include rehabilitation or replacement of discharge pipes attached to target
pump stations as the MWR confirmed that they have been rehabilitating or
replacing damaged sections of the discharge pipes and will continue to
rehabilitate or replace damaged sections.

(ii) Output 2: Conveyance efficiency in the ABIS main canal increased. This
covers: (a) the M&R of 22 key regulatory and/or diversion structures; (b)
installation of water measurement gauges; and (c) installation of wireless radio
communication systems, along ABIS main canal. These structures were built
between 1930 and 1967 and are in poor condition. The conveyance efficiency in
ABIS main canal will be achieved by the M&R of these structures closely
associated with modernized irrigation system management to reduce ineffective
water discharge from the main canal to inter farm irrigation systems.

(iii) Output 3: The capacity of Basin Irrigation System Administration (BISA),

Irrigation System Administrations (ISAs), WCAs, and farmers to adapt to
climate change increased. This covers: (a) M&R of inter- and on- farm canals
and regulation structures in three selected areas; (b) introduction of climate
adaptive agronomic practices, cropping pattern, and water saving irrigation
technologies in demonstration farms in three selected areas; (c) the development
of climate change adaptive modernized water operation and management plan
which contributes to increase water productivity based on the detailed water
balance assessment with the use of remote sensing and actual water
measurements; and (d) capacity development of Bukhara BISA, three ISAs, and
three WCAs in Bukhara. 8

(iv) Output 4: Project and ABIS managed efficiently. This covers project
management, institutional and operational supports during project

8 The ABIS command area is covered by five ISAs—four in Bukhara Province and one in Navoi Province—as well as
145 WCAs.
4

implementation to Amu Bukhara Irrigation System Authority (ABISA) responsible

for O&M and management of major pump stations and ABIS main canal. The first
includes: (a) implementation of safeguards requirements; and (b) project
supervision, detained design, procurement, and financial management. The
second includes strengthening institution, human capacity, ABIS operation and
management in ABISA. Remote monitoring and controlling system will be
introduced, and a modernized energy-water efficient operation and management
plan will be adopted for effective and efficient operation and management of
pump stations and main canals. Capacity building will also be provided for ABISA
to integrate GHG monitoring-reporting-verification systems to ensure
environmental integrity of the GHGs mitigated in the pumps' O&M. The
commercialization of carbon credits will be pursued through clean development
mechanism (CDM) or other carbon market mechanisms to fill the financing gap
for O&M.9

10. In addition, poor-conditioned drainage channels at inter-farm and on-farm levels will be
rehabilitated by Government’s Amelioration Fund10 and ADB-financed Land Improvement
Project to reduce soil salinity and water logging to compliment to the outcome and the impact of
the project.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

2013 2014 Who
Indicative Activities Jul Aug Nov Dec Jan Mar responsible
Loan Negotiations X ADB -GoU
ADB Board approval X ADB
Loan signing X ADB -GoU
Government legal opinion X GoU
provided
Government budget inclusion X GoU
Loan effectiveness X GoU-ADB
ADB = Asian Development Bank, GoU = Government of Uzbekistan.

11. From the loan signing date, the following two advertisement processes and necessary
advanced actions will commence: (i) the consultant services package (one contract) for (a)
procurement and construction supervision, (b) improved water management and water consumers’
association (WCA) strengthening, and (c) project management and implementation support; and (ii)
the first turnkey contract for the construction of new Khamza pump station. A Project Director and
key MWR staff will be appointed and/or employed prior to loan effectiveness. Project management
staff including procurement, financial management, and accounting staff will be fielded after loan
signing.

9 Accompanying documents focus on clean development mechanism (CDM), which was originally contemplated as
climate financing instrument, but recent international developments related to climate change warrant a more broad
focus.
10 In 2007, the Government established the Amelioration Fund to improve drainage conditions to address water-

logging and soil salinity problems.

 5

B. Overall Project Implementation Plan

2014 2015 2016 2017 2018 2019 2020

Project Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Output 1: Construct/
rehabilitate/modernize X X X X X X X X X X X X X X X X X X X X
pump stations
Output 2: Increase of
conveyance efficiency in X X X X X X X X X X X X X X X
ABIS main canal
Output 3: Increase of
climate change X X X X X X
adaptation capacity
Output 4: Efficient
project and ABIS X X X X X X X X X X X X X X X X X X X X X X X X X
managements
Management Activities
procurement of contract
X X X X X X X X X X
packages
Consultant selection
X X X
procedures
Environment
management plan key X X X X X X X X X X X X
activities
Key activities to address
X X X X X X X X X X X X X X X X X
gender issues
Communication strategy
X X
key activities
Annual/Mid-term review X X X X X X
6

III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and

Responsibilities

Project implementation Management Roles and Responsibilities

organizations
Ministry of Finance Borrower:
(MOF)  signing the loan agreement;
 monitoring of the project implementation and providing
respective coordination and facilitation;
 allocating and releasing counterpart funds;
 endorsing to ADB the authorized staff with approved
signatures for withdrawal applications (WAs) processing; and
 processing and submitting to ADB any request, when
required, for reallocating the loan proceeds.
Ministry of Water  Executing Agency:
Resources (MWR)  establishing the project management office (PMO) and
project implementation office (PIO) with the required staffing;
 establishing the imprest account and for maintaining the
accounts through the PMO.
 recruiting consultants;
 finalizing surveys, detailed design, bidding documents, and
contract awards;
 timely provision of agreed counterpart funds for project
activities;
 monitoring and evaluation of project activities and outputs,
including preparation of review reports reflecting issues and
time-bound actions taken (or to be taken);
 involving beneficiaries and civil society representatives in all
stages of project design and implementation;
 public disclosure of project outputs;
 quality assurance of works, and services of consultants and
counterpart staff;
 establishing strong financial management system and
submitting timely WAs to Asian Development Bank (ADB),
conducting timely financial audits as per agreed timeframe
and taking recommended actions;
 complying with all loan covenants;
 implementing gender measures;
 preparing regular periodic progress reports, and project
completion report and their timely submission to ADB;
 ensuring projects' sustainability during post implementation
stage and reporting to ADB on the assessed development
impacts;
 ensuring necessary drainage rehabilitation works by
coordinating with Government’s Amelioration Fund; and
 application to carbon credit and signing of emissions
reduction purchase agreement

Agency on  Implementing Agency (established in 2019, the PMO was

Implementation of reassigned under AIWSP):
Water Sector Projects  project management and implementation.
(AIWSP) under MWR  monitoring and evaluation of project activities and outputs,
 7

Project implementation Management Roles and Responsibilities

organizations
including preparation of review reports reflecting issues and
time-bound actions taken (or to be taken);
 public disclosure of project outputs;
 quality assurance of works, and services of consultants and
counterpart staff;
 ensuring strong financial management system and submitting
timely WAs to Asian Development Bank (ADB), conducting
timely financial audits as per agreed timeframe and taking
recommended actions;
 complying with all loan covenants;
 implementing gender measures;
 preparing regular periodic progress reports, and project
completion report and their timely submission to ADB;
 ensuring projects' sustainability during post implementation
stage and reporting to ADB on the assessed development
impacts;

Ministry of  Overall coordination and monitoring of the project

Investments and implementation from the government side. Timely registration
Foreign Trade (MIFT) of contracts and amendments for imported goods, works and
international services under the project.
Amu Bukhara  Assist in finalizing surveys and detailed designs;
Irrigation System  Oversee and monitor pump stations rehabilitation works, and
Authority (ABISA) other civil works, including preparation of review reports
reflecting issues and time-bound actions taken (or to be
taken);
 involving beneficiaries and civil society representatives in all
stages of project design and implementation;
 Assist MWR in quality assurance of works, and services of
consultants and counterpart staff;
 submitting timely WAs to MWR/PIO/PMO;
 preparing periodic progress reports, and project completion
report and their timely submission to MWR and ADB;
 ensuring projects' sustainability during post implementation
stage and reporting to MWR/ADB on the assessed
development impacts; and
 ensuring necessary coordination with BISA on the output 3 of
the project.

Irrigation System  Oversee and monitor climate change adaptation

Administration (BISA) demonstration activities;
in Bukhara Province  involving beneficiaries and civil society representatives in
demonstration activities where required;
 quality assurance of climate change adaptation activities;
 preparing progress reports, and project completion report and
their timely submission to MWR, and
 ensuring project sustainability at post implementation stage
and reporting to MWR/ADB on the assessed development
impacts;
 mobilizing water consumers’ association to arrange climate
change adaptation activities;
 coordinate with local authority and demonstration farmers to
relax cotton and wheat quotas for climate change adaptation
demonstration in pilot farms
8

Project implementation Management Roles and Responsibilities

organizations
Project Consultant Provide professional services to MWR in:
(firm) -  supervising day-to-day project implementation progress,
assistance in hand-over and defects liability period;
 training and knowledge transfer to staff of MWR, ABISA,
BISA, ISA, and WCAs through supporting the implementation
of project outputs including GHG monitoring-reporting-
verification systems;.
 preparing withdrawal applications;
 ensuring project compliance with ADB policies and
guidelines;
 preparing project progress reports; and
 maintaining project accounts and loan financial records.

ADB Lender:
 assist the MWR, AIWSP, and its PMO/PIO by providing
timely guidance at each stage of the project for smooth
implementation in accordance with agreed implementation
arrangements;
 review all the documents that require ADB approval;
 conduct periodic loan review missions, a midterm review, a
completion mission for the project;
 monitor MWR’s compliance of all loan covenants;
 timely process withdrawal applications and release eligible
funds;
 monitor MWR’s compliance of financial audit
recommendations;
 regularly update the project performance review reports with
the assistance of the MWR;
 regularly post on ADB website the updated project
information documents for public disclosure, and also the
safeguards documents as per disclosure provision of the
ADB safeguards policy statement; and
 Review and approve detailed design for the project upon the
submission by the PMO.
Japan International Cofinancier:
Cooperation Agency  Parallel financing of the project; and
(JICA)  Full administration of scope of works financed by JICA in
accordance with its relevant policies, procedures and
guidelines.

B. Key Persons Involved in Implementation

Executing Agency
Ministry of Water Resources Shavkat Khamraev
(MWR) Minister
Ministry of Water Resources
Tashkent, Republic of Uzbekistan
Reception: +998-71 237-09-26
Fax No. +998-71 241-32-92; 244-09-20
 9

ADB
Environment, Natural Resources, Yasmin Siddiqi
and Agriculture Division (CWER), Director, CWER
Central and West Asia Telephone: +632 632 6234
Department (CWRD) Email: ysiddiqi@adb.org

Uzbekistan Resident Mission Cindy Malvicini

(URM) Country Director, URM
Telephone: +998-78 140-19-20
Email: cmalvicini@adb.org

Project Team Leader Tal’at Nasirov

Senior Project Officer, URM
Tel +998-78 140-19-20 / Fax +998-78 140-19-76
Email: tnasirov@adb.org
10

C. Project Organization Structure

PROJECT ORGANIZATION STRUCTURE

ADB Loan Agreements Ministry of Finance

PAM MWR (Executing Agency)

Implementation AIWSP
Arrangements (Implementation Agency)

Project Management Office

(PMO) in Tashkent
ABISA BISA

Project Implementation Office

(PIO) in Bukhara

Project Management
Consultant (Tashkent and
Bukhara)

Design, Procurement, Civil Improved Water

Project Management, Works for Modernization of Management and WCA
Monitoring, and Evaluation Pump Stations and Strengthening (Climate
Associated Infrastructure change adaptation)

(Output 4) (Outputs 1 and 2) (Output3)

12. MWR will establish a dedicated full-time PMO in Tashkent. The PMO will be responsible for
overall project management and coordination including administering all consulting and
procurement contracts. The PMO, assisted by the Consultant (consulting services for the project)
will be responsible for preparing project plans, bid evaluation reports, progress reports, applications
for withdrawal of funds, and any other required reports to ADB.

13. The Manager of the PMO will report directly to the Project Director (Deputy Minister) of
MWR. The PMO will be the main point of contact for working communication between MWR and
ADB.

14. The PMO Manager and staff will have appropriate academic qualifications with adequate
experience of working on large investment projects. The PMO will include the following positions
and a team: Project Manager, Deputy Project Manager, Water Resources Engineer, Construction
Management Engineer, Information Technology/Communications Engineer, Chief Accountant and
Procurement Officer, Financial Specialist, Environmental & Social Safeguards, Poverty & Gender
Team, and Translators.
 11

1. Government and ADB

15. Government and ADB – will provide strategic direction, commit resources and financing as
agreed, and review progress. Furthermore, they will ensure that the program complies with the
relevant statutory requirements, Government and ADB’s policies and procedures, including ADB’s
anticorruption policy, as appropriate.

2. PMO and PIO Roles and Responsibilities

16. The following are key PMO and PIO management and operations units and staff
representing the MWR for the implementation, monitoring, and completion of all project related
activities. A PIO will be established and staffed in Bukhara with the primary aim of direct supervision
and management of project activities for accomplishing the timely and quality conclusion of all
works. It is the responsibility of MWR to identify key staff and support staff to accomplish
implementation of the project. The following describes the roles and tasks of key MWR staff
assigned to the PMO and PIO.

3. Management

17. Project Director (Deputy Minister, MWR) will:

(i) manage the PMO team and ensure it is staffed appropriately;

(ii) supervise and manage the strategic implementation of the project (planning,
procurement, safeguards, finance and operations related implementation);
(iii) liaise with MWR and other agencies, as necessary;
(iv) report on all procurement related matters and seek approval from Government or
ADB, as necessary for procurements of works, goods, and services with the
estimated over $10 million;
(v) report on all safeguards related matters and obtain approval from National
Expertise agencies and ADB, as necessary;
(vi) report on finance and disbursement related matters; and
(vii) coordinate with PMO and PIO to ensure proper staffing by all project–related
offices and contractors.

4. Operations

18. The Project Management Office (this unit is under MWR) will:

(i) monitor the progress of the performance and the project deliverables, and report
to the Government and ADB;
(ii) provide financial management of the project;
(iii) coordinate procurement and recruitment of consultants;
(iv) prepare periodic reports;
(v) ensure compliance with ADB's and local safeguards requirements;
(vi) establish a monitoring and evaluation and reporting system; and
(vii) coordinate with relevant agencies.

19. Project Manager (PMO) will:

(i) draft annual work programs for each component, submit them to the Project
Director and obtaining his/her agreement to them;
12

(ii) consult with the Chief Accountant to monitor budgetary expenditure, review
disbursement requests, prepare the annual budget and submit these the Project
Director for agreement;
(iii) ensure the hiring of suitably qualified staff to implement the various components
in accordance with ADB requirements and as support to the Project Director;
(iv) guide and collaborate with the responsible staff (e.g. ABISA managers) to
monitor component implementation in accordance with the agreed work program;
(v) attend, hold or participate in seminars, workshops, media events etc. to
represent the project;
(vi) make site visits as required to monitor and correct implementation of the project;
(vii) develop and submit recommendations to the Project Director to resolve issues
which arise in the course of project implementation;
(viii) support the Project Director in the overall project management and preparation of
reports for GOU and its relevant agencies;
(ix) seek approval from Government or ADB, as necessary for procurements of
works, goods, and services with the estimated cost less than $10 million;
(x) manage all staff directly working on the project, including staff grievance
procedures and make recommendations to the Project Director on hiring
decisions;
(xi) coordinate with relevant key staff to maintain an overview of the day-to-day
operations of the individual components;
(xii) provide operational support to key staff members in the implementation of their
responsibilities;
(xiii) draft a comprehensive project reporting system, submit it to the Project Director
for agreement and implementation;
(xiv) coordinate implementation of project components with the relevant project
related agencies;
(xv) assist the Project Director to coordinate interaction with relevant GOU ministries
and agencies, as may be required;
(xvi) liaise with local government administrations participating in the project to ensure
successful implementation of project activities;
(xvii) draft project implementation reports and submit to the Project Director for
agreement and distribution;
(xviii) liaise with ADB staff and supervision missions to ensure successful completion of
missions and ongoing project monitoring; and
(xix) implement recommendations of ADB supervision missions and associated aide-
memoires, as agreed by the Project Director.

20. Deputy Project Manager / Project Implementation Office (PIO) Manager - will report to
the Project Manager and:

(i) serve as the ‘Engineer’ and ‘Coordinator’ for all construction related contracts
and activities;
(ii) oversee all project component activities, specifically monitoring their
implementation in relation to the agreed work plan;
(iii) report any deviations from the work plan to the Project Manager;
(iv) establish monitoring and evaluation system for project implementation;
(v) support the Project Manager for the execution of the project;
(vi) identify any operational problems and raise them with the Project Manager.
(vii) coordinate with ABISA, BISA, ISAs, WCAs, local governments, but not limited to,
carry out all project outputs including climate change adaptation output, inform
 13

them of the project status, and keep them advised of implementation and also
address implementation issues with them;
(viii) establish and maintain a high profile with local farming communities to ensure
awareness of the aims and components of the project;
(ix) receive feedback from the local farming community and pass this on to the
Project Manager;
(x) organize orientation or training programs to educate project participants; and
(xi) cooperate with the Project Manager, to draft an annual work plan for the PIO,
which will be submitted to the Project Director for approval.

21. Chief Accountant and Procurement Officer (PMO) – will identify procurement activities
and types of services under the project in connection with the work program and annual budget;

(i) responsible for taking care of financing, funds flow arrangements, payments,
recording, and monitoring of both ADB and Government funds; establish
monitoring and management procedures for the imprest account and Statement
of Expenditure (SOE) procedures;
(ii) ensure timely preparation of the annual audited project accounts and submission
to ADB within 6 months of financial year end;
(iii) cooperate with the Project Manager and the PMO staff to develop a strategy for
guiding and supporting purchase operations made by the PMO in regard to
project components;
(iv) develop an Operational Manual covering the procurement policies, procedures
and standard documents in order to minimize cost and ensure a scheduled
carrying out of procurement activities in line with the requirements of the
Government and ADB;
(v) maintain an information database on procurements of technical services,
suppliers of equipment, ADB procurement and disbursement guidelines,
standard and model bidding documents, and other resources needed by staff in
carrying out project components;
(vi) negotiate and prepare standard bidding packages and specifications to evaluate,
enter into contracts, oversee delivery, issue invoices, inspect/test procured items,
and make payments to suppliers/contractors;
(vii) coordinate with the specialists of the PMO, to develop and implement payment
mechanisms and procedures to support purchases of goods, technical
assistance, and construction services;
(viii) establish a monitoring system within the procurement unit of the PMO for
overseeing project procurement actions and coordinating necessary approvals or
correcting shortcomings in procedures; and
(ix) communicate through the Project Director information and/or documentation to
the Government or ADB for their inspection, obtaining comments and/or for
commencement of funding.

22. Environmental & Social Safeguards, Poverty & Gender Team (PIO) – will assume all
responsibilities and tasks related to environment, land, social (including involuntary
resettlement and indigenous people), and poverty and gender aspects. It will comprise of
one deputy manager and two assistant managers. At least one female staff (gender
position) is engaged under the team. The assistant manager for gender position will also
responsible for poverty; and the other assistant manager will be responsible for
safeguard with the following main tasks:
14

(i) ensure that EMP will be updated during detailed design completed;
(ii) ensure that bidding documents include all requirement to implement IEE and its
EMP;
(iii) ensure that the bidder selected will have adequate resources to implement and
update EMP;
(iv) undertake safeguards monitoring activities and prepare safeguard reports to be
submitted to ADB;
(v) ensure that all construction works will be taken place in the permanent land
possession of ABISA;
(vi) if additional land required for construction works, ensure that land acquisition and
resettlement plan is prepared in accordance to ADB SPS 2009 as well as the
Government law and regulation related with land acquisition; and
(vii) ensure that other project-related tasks are complied with ADB SPS 2009 and
Government requirement.

23. Project Implementation Consultant (PMO and PIO) – will assist the PMO and PIO to.

(i) conduct reconnaissance reviews and reports for all project related tasks and
activities;
(ii) undertake necessary technical and social surveys (geotechnical, hydrological
and other investigations necessary for final designs), institutional analyses,
environmental assessments, resettlement considerations, and preliminary
designs necessary to establish the economic viability of the project;
(iii) review specifications, detailed designs prepared by the turnkey contractor for all
features associated with the pumping stations, including, but not limited to pump
suction and discharge piping, surge protection, drainage and associated
equipment for pumps, and electrical supply and control;
(iv) analyze design options for all aspects of the Amu Bukhara main canal (ABMC)
modernization works, and for the demonstration pilot area analyze and support
inter-farm canal rehabilitation and upgrading including cross and head regulators,
on-farm canal outlets, and associated flow measurement provisions, lining repair
and replacement, with necessary reflections of climate change impacts;
(v) develop a program for climate adaptive irrigation and agronomic practices, and
coordinate with BISA, ISAs, WCAs, and selected farms to demonstrate and
assess these practices;
(vi) assist in assessing water balance by introducing remote sensing and water
measurements in pilot areas;
(vii) develop climate change adaptive water management and agriculture extension
plan for the adaptation by BISA, ISAs, and WCAs;
(viii) present all design options for the branch inter-farm canals, including associated
measurement and control structures as well as on-farm canal outlets in
conjunction with the concerned WCAs, reaching agreement on the package of
improvements for the relevant works;
(ix) review and accept finalize the detailed designs, construction drawings, bills of
quantities, technical specifications and tender documentation for all aspects of
each bid package:
(x) provide construction supervision and necessary quality control testing for all
installation and construction work;
(xi) assist PMO and PIO in overseeing the work of support to WCAs in the project
area and in carrying out an irrigation and drainage institutional study for
 15

formulating recommendations for required strengthening and providing

necessary institutional based training to BISA, ISAs and WCAs;
(xii) implement necessary actions and activities for carbon credit trade and
commercialized as summarized in the design and monitoring framework (DMF);
(xiii) building ABISA’s capacity to integrate GHG monitoring-reporting-verification
systems to ensure environmental integrity of the GHGs mitigated in the pumps'
O&M;
(xiv) develop water-energy efficient ABIS operation and management plan to be
adopted by ABISA; and
(xv) support PMO and PIO in monitoring and evaluation (M&E) of all aspects of
project implementation and initial operations.

IV. COSTS AND FINANCING

24. The project costs consist of the following categories:

(i) Turnkey Contract (Plant-Design, Supply, and Installation Contract). Five

turnkey contracts (construction of new Khamza pump station, M&R of Khamza 2
pump station, M&R of Kuyu-Mazar pump station, M&R of Kizil-Tepa pump station
and M&R of Kizil-Tepa auxiliary pump station) under output 1 of the project will
provide all equipment, materials, and associated civil works. Implementation will
be under MWR’s responsibility. These will be financed by ADB and JICA.
(ii) Civil Works. M&R of 22 key regulatory and/or diversion structures under output
2 of the project, and for M&R of inter- and on-farm canals and regulation
structures in three selected areas under output 3 of the project, financed by ADB.
(iii) Consulting Services. Eight consulting services will be required during project
implementation for ADB loans (OCR and ADF) and JICA’s parallel financing
each. A Consultant (a firm) to be financed by ADB loan (ADF) will be recruited to
support the PMO and PIO in project implementation including capacity building
for the scope financed by two ADB loans. A consultant for the audit of project
accounts covered by two ADB loans will be required every year, that is, 7
consultants throughout project implementation.
(iv) Project Management and Monitoring. Direct and indirect costs of PMO and
PIO. The direct cost will be financed by ADB while the indirect cost will be
covered by the Government.
(v) Environmental and Social Mitigation Measures. This will be financed by
Government.
(vi) Taxes and Duties. Taxes and duties including value added taxes and customs
payment will be covered under the government in the form of exemption.
(vii) Financial Charges. The government will finance the financing charges during
implementation.
16

A. Detailed Cost Estimates by Expenditure Category ($ Million)

Local Foreign Total % to Total

Item Currency Exchange Cost Base Cost
A. Investment Costsa
1. Turnkey Contracts
(a) New Khamza Pump Station (PS) 26.61 76.92 103.53 33.6%
(b) Khamza 2 PS 19.55 56.53 76.09 24.7%
(c) Kuyu Mazar PS 7.49 21.65 29.14 9.4%
(d) Kizil Tepa PS 15.11 43.69 58.80 19.1%
(e) Kizil Tepa Auxilary PS 4.15 12.00 16.15 5.2%
2. Civil Works 4.25 1.82 6.07 2.0%
3. Equipment 0.79 3.87 4.65 1.5%
4. Environmental and Social Mitigation 1.98 0.00 1.98 0.6%
5. Consultanting Services
(a) Project Implementation Support 2.94 5.95 8.89 2.9%
(b) Capacity Building 1.73 0.12 1.84 0.6%
6. Project Management and Monitoring 1.34 0.02 1.36 0.4%
Total Base Cost 85.93 222.57 308.50 100.0%
B. Contingencies
1. Physical 7.89 22.49 30.38 9.8%
2. Price 6.40 18.23 24.62 8.0%
Subtotal B 14.29 40.72 55.01 17.8%
Base Cost including contingencies 100.21 263.29 363.50 117.8%
C. Financing Charges During Implementation
1. Interest During Implementation 0.00 16.10 16.10 5.2%
2. Commitment Charges and Front-
end fees 0.00 0.40 0.40 0.1%
Subtotal C 0.00 16.50 16.50 5.3%
Total Project Cost (A+B+C) 100.21 279.79 380.00 123.2%
a
in late 2012 prices.
a Includes taxes and duties of $41.5 million including value added tax and customs duties exempted by the

Government, and the cost of environmental and social mitigation of $2.0 million to be financed by the
Government.
Source: Asian Development Bank.

B. Allocation and Withdrawal of Loan Proceeds

25. The financing plan is a combination of funds from ADB, and the Government. The OCR
portion of the Loans will finance: (i) two turnkey contracts (construction of new Khamza pump
station, and M&R of Kizil-Tepa pump station) under the output 1 of the project; and (ii) all required
civil works for M&R of approximately 22 key regulatory and/or diversion structures under the
output 2 of the project. The Asian Development Fund (ADF) portion of the Loans will finance: (i)
one turnkey contract (M&R of Kuyu-Mazar pump station); (ii) all required equipment for M&R of
approximately 22 key regulatory and/or diversion structures under the output 2 of the project; (iii)
all required cost for the output 3 of the project; and (iv) all required cost for the output 4 of the
 17

project except for the cost of the consulting services required for the design and construction
supervision of M&R for Khamza 2 pump station and Kizil-Tepa auxiliary pump station.

26. The Government will finance taxes and duties including value added tax and customs duties
as the form of exemption, interest during implementation, commitment charges, as well as the cost
of land acquisition and resettlement compensation, the implementation of the environment
management plan as required.

Allocation and Withdrawal of OCR Loan Proceeds

CATEGORY ADB FINANCING
Number Item Total Amount Percentage for ADB Financing from
Allocated for OCR the OCR Loan Amount
Financing ($)
1 Turnkey Contracts
New Khamza Pump Station** 92,040,000.0 100% of total expenditure claimed*
Kizil Tepa Pump Stations** 52,280,000.0 100% of total expenditure claimed*
2 Civil Works** 5,040,000.0 100% of total expenditure claimed*
3 Unallocated 24,640,000.0
Total 174,000,000.0
OCR = ordinary capital resources
* Exclusive of taxes and duties imposed within the territory of the Borrower.
** The disbursement will be conditional upon: (i) establishment by MWR of a fully staffed and operational organization
structure for project implementation to ADB’s satisfaction, including a PMO in the MWR in Tashkent, a project
implementation office (PIO) in ABISA in Bukhara Province; (ii) the appointment of the project manager by the
Government acceptable to ADB; and (iii) the effectiveness of loan agreement between the government and the
cofinancier.

Allocation and Withdrawal of ADF Loan Proceeds

CATEGORY ADB FINANCING
Number Item Total Amount Percentage for ADB Financing from
Allocated for ADF the ADF Loan Amount
Financing (SDR)
1 Turnkey Contract- Kuyu-Mazar
Pump Station** 17,199,000 100% of total expenditure claimed*
2 Civil Works** 212,000 100% of total expenditure claimed*
3 Equipment** 2,735,000 100% of total expenditure claimed*
4 Consulting Services 4,262,000 100% of total expenditure claimed*
5 Project Management and
Monitoring 903,000 100% of total expenditure claimed*
6 Unallocated 5,224,000
Total 30,535,000
ADF = Asian Development Fund
* Exclusive of taxes and duties imposed within the territory of the Borrower.
** The disbursement will be conditional upon: (i) establishment by MWR of a fully staffed and operational
organization structure for project implementation to ADB’s satisfaction, including a PMO in the MWR in
Tashkent, a project implementation office (PIO) in ABISA in Bukhara Province; (ii) the appointment of the project
manager by the Government acceptable to ADB; and (iii) the effectiveness of loan agreement between the
government and the cofinancier.

27. In addition, JICA will provide parallel financing of $100.0 million equivalent for the costs
of (i) two turnkey contracts (M&R of Khamza 2 pump station and M&R of Kizil-Tepa auxiliary
pump station) under output 1 of the project; and (ii) the consulting services required for the
design and construction supervision of item (i) above. JICA will fully administer the scope of works
of its parallel financing.
 C. Detailed Cost Estimates by Outputs/Components ($ Million)

Total
Item Cost Output 1 Output 2 Output 3 Output 4
Amount % Amount % Amount % Amount %
A. A. Investment Costsa
1. Turnkey Contracts
(a) New Khamza Pump Station (PS) 103.53 103.53 100.0% - - -
(b) Khamza 2 PS 76.09 76.09 100.0% - - -
- - -
(c) Kuyu Mazar PS 29.14 29.14 100.0%
- - -
(d) Kizil Tepa PS 58.80 58.80 100.0%
- - -
(e) Kizil Tepa Auxilary PS 16.15 16.15 100.0%
2. Civil Works 6.07 0.00 0.0% 5.71 94.0% 0.36 6.0% 0.00 0.0%
3. Equipment 4.65 0.00 0.0% 2.99 64.1% 0.37 7.9% 1.30 27.9%
4. Environmental and Social Mitigation 1.98 1.41 71.6% 0.04 2.1% 0.01 0.5% 0.51 25.7%
5. Consulting Services
(a) Project Implementation Support 8.89 0.00 0.0% 0.00 0.0% 0.00 0.0% 8.89 100.0%
(b) Capacity Building 1.84 0.00 0.0% 0.00 0.0% 1.22 66.4% 0.62 33.6%
6. Project Management and Monitoring 1.36 0.00 0.0% 0.00 0.0% 0.00 0.0% 1.36 100.0%
Total Base Cost 308.50 285.13 92.4% 8.73 2.8% 1.96 0.6% 12.67 4.1%
B. Contingencies
1. Physical 30.38 28.22 92.9% 0.87 2.9% 0.21 0.7% 1.08 3.6%
2. Price 24.62 22.83 92.7% 0.66 2.7% 0.15 0.6% 0.99 4.0%
Subtotal B 55.01 51.05 92.8% 1.53 2.8% 0.36 0.7% 2.07 3.8%
Subtotal A+B 363.50 336.18 92.5% 10.26 2.8% 2.33 0.6% 14.74 4.1%
C. Financing Charges During
Implementation
1. Interest During Implementation 16.10 14.80 91.9% 0.50 3.1% 0.10 0.6% 0.70 4.3%
2. Commitment Charges and Front-end fees 0.40 0.40 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0%
Subtotal C 16.50 15.20 92.1% 0.50 3.0% 0.10 0.6% 0.70 4.2%
Total Project Cost (A+B+C) 380.00 351.38 92.5% 10.76 2.8% 2.43 0.6% 15.44 4.1%
a
in late 2012 prices.
a
Includes taxes and duties of $41.5 million including value added tax and customs duties exempted by the Government, and the cost of environmental and social
mitigation of $2.0 million to be financed by the Government.
Source: Asian Development Bank.
 19

D. Detailed Cost Estimates by Financier ($ Million or $ Million equivalent)

JICA
ADB (OCR) ADB (ADF) Sub- GOU Total
Amount % Amount % Amount % total Amount % cost
Items
A. Investment costsa
1. Turnkey Contracts
(a) New Khamza PS 92.04 100.0% 92.04 92.04
(b) Khamza 2 PS 67.64 100.0% 67.64 67.64
(c) Kuyu Mazar PS 25.91 100.0% 25.91 25.91
(d) Kizil Tepa PS 52.28 100.0% 52.28 52.28
(e) Kizil Tepa Auxiliary PS 14.37 100.0% 14.37 14.37
2. Civil Works
ADB OCR financing 5.04 100.0% 5.04 5.04
ADB ADF financing 0.32 100.0% 0.32 0.32
3. Equipment 4.12 100.0% 4.12 4.12
4. Environment and Social
Mitigation 0.00 2.00 100.0% 2.00
5. Consulting Services
(a) Project Implementation 4.76 62.0% 2.92 38.0% 7.68 7.68
ADB financing 4.76 100.0% 4.76 4.76
JICA financing 2.92 100.0% 2.92 2.92
(b) Capacity Building 1.66 100.0% 1.66 1.66
6. Project Management &
Monitoring 1.36 100.0% 1.36 1.36
7. Taxes and Duties 0.00 41.50 100.0% 41.50
Total Base Cost 149.36 47.3% 38.13 12.1% 84.93 26.9% 272.42 43.50 13.8% 315.92
B. Contingencies 24.64 51.8% 7.87 16.5% 15.08 31.7% 47.58 0.00 0.0% 47.58
C. Financing Charges during
Implementation 16.50 100.0% 16.50
D. Total Project Cost (A+B+C) 174.00 47.3% 46.00 12.1% 100.00 26.9% 320.00 60.00 13.8% 380.00
ADB = Asian Development Bank, ADF = Asian Development Fund, GoU = Government of Uzbekistan, JICA = Japan International Cooperation Agency, OCR = ordinary
capital resources.
a
These are provisional.
Source: Asian Development Bank.
20

E. Contract and Disbursement S-curve

28. Projections of disbursement will be confirmed with the executing agencies (EAs) during ADB
inception mission and the PAM will be updated accordingly. The forecasted contract award and
disbursement profile at project design stage is shown below.

Contract and Disbursement S-curve ($ million)

200.00
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Jul-16
Nov-16
Mar-17
Jul-17
Nov-17
Mar-18
Jul-18
Nov-18
Mar-19
Jul-19
Nov-19
Mar-20
Disbursement Contract Award

Projections for Contract Award ($ million)

Year Q1 Q2 Q3 Q4 Total
2014 0.0
2015 4.8 92.6 97.4
2016 7.4 25.9 52.3 0.6 86.1
2017 1.8 0.6 2.4
2018 0.6 0.6
2019 0.6 0.6
2020 0.5 0.5
Total 187.5

Projections for Disbursement ($ million)

Year Q1 Q2 Q3 Q4 Total
2014 0.0 0.0 0.0 0.0 0.0
2015 0.0 0.0 0.2 0.8 1.0
2016 18.6 6.3 10.4 17.6 52.9
2017 9.4 9.7 9.7 10.3 39.2
2018 9.7 9.7 9.4 9.9 38.8
2019 9.4 24.3 4.4 16.4 54.5
2020 0.2 0.8 1.0
Total 187.5
 21

F. Fund Flow Diagram

Withdrawal Applications
ADB and other
donors
Advance/Replenishment
Use of
Accounts
One Imprest Account
(for ADF)

Contractors
Ministry of Water
Direct Invoices Resources
payments or (Executing Agency)
commitment
letters AIWSP
Suppliers
Invoices (Implementation Agency)

and
Project Management
Consultants Office (PMO)
Invoices
22

V. FINANCIAL MANAGEMENT

29. The purpose of this Financial Management Assessment (FMA) is to assess the financial
management capacity of the MWR, the EA, and the financial accounting units to be established
under MWR for the upcoming ADB-financed ABIS Rehabilitation Project. The project with a cost of
approximately $380 million will be implemented over 7 years, starting early in 2014. The estimated
project physical completion date is February 2020 and the loan closing date is 31 August 2020.

A. Financial Management Assessment

30. Within the framework of the FMA the following was undertaken: (i) review and analyse the
results of Financial Management Assessment of MWR, the executing agency;11 (ii) review the EA’s
structure and management framework with regard to financial management; (iii) assessment of
MWR’s resources, including its personnel, the scale of Government budgetary support and other
sources of income, its information technology equipment and software; and (iv) MWR’s experience
in implementing externally financed projects. Consequently, analyses of the EA and PMO’s
accounting, reporting, auditing, internal control systems, information systems, and capacity of the
personnel were carried out. Additional follow-up interviews with MWR and PMO staff, discussions
with authorities, international financial institutions representatives, and reviews of relevant national
legislation were also conducted.

31. The FMA is based on ADB’s Guidelines for the Financial Governance and Management of
Projects Financed by the Bank (2002). The instrument used for assessment was ADB’s standard
financial management assessment questionnaire.

B. Summary of Findings

32. It is concluded that MWR currently satisfies ADB’s minimum financial management
requirements for EAs. The MWR has a satisfactory financial management capability to: (i) record
required financial transactions and balances; (ii) provide regular and reliable financial statements
and monitoring reports; (iii) safeguard financial assets; and (iv) submit the required financial
documents including separate financial records for the project, by funding source, for all
expenditures incurred on the project and project financial statements to auditors with
arrangements acceptable to ADB. A summary of the FMA is shown in Table below.

Summary of the FMA

Particulars Rating Conclusions
A. Executing Moderate MWR is a government ministry that is accountable to the Cabinet of
Agency Ministers (COM) of the Republic of Uzbekistan. MWR has
experience in managing large scale projects financed by ADB,
World Bank, and other international funding institutes through their
implementations by PMOs.

B. Funds Flow Satisfactory MWR has knowledge of and working experience in ADB funds flow
Arrangements arrangements. Preliminary funds flow and lending arrangements
have been identified in consultation with MWR and Ministry of
Finance representatives.

11 ADB. 2008. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Republic of
Uzbekistan for the Water Resources Management Sector Project. Manila. Supplementary Appendix D.
 23

Particulars Rating Conclusions

C. Staffing Moderate
MWR is moderately staffed with experienced financial specialists.
However, it is getting difficult to retain competent staff due to
relatively modest salary scale, which will hamper smooth project
implementation. The establishment of the PMO and the PIO hiring
key staff outside MWR to support project director and manager with
offering higher salary scale will avoid the delay of the project
implementation.

D. Accounting Satisfactory The MWR accounting policy is based on the Uzbekistan National
Policies and Accounting Standards, which are progressively being modernized
Procedures in accordance with International Accounting Standards. For the
ABIS Rehabilitation Project PMO/PIO separate accounting policy,
subject to annual updates, and a financial management manual will
be established in accordance with requirements of ADB and MOF
of Uzbekistan.

E. Procurement Moderate The MWR has improved its capacity in procurement by

participating in donor-financed projects and by involving its staff in
the procurement evaluations in both the Tender Commission and
the Tender Evaluation Committee established by the Government.
However, the staff in MWR still lack experiences and capacities to
prepare bidding documents and evaluate bids for relatively high
amount of contracts tendered through international competitive
bidding, which requires complicated bidding process, such as two-
stage two envelop bidding method.

F. Internal/External N.A. There is no internal audit unit within the structure of the MWR.
Audit
MWR has not been audited by external auditor but annual
procedural audits are conducted by MOF. Operating PMOs under
the Ministry are audited by independent external auditors on an
annual basis. Audit of the project accounts will be done in
accordance with the International Standards on Auditing (ISA),
which complies with the requirements of ADB, and this shall be
stipulated in the loan agreement.

G. Reporting and Satisfactory MWR and PMO reports comply with the reporting requirements of
Monitoring the Ministry of Investment and Foreign Trade (MIFT), MOF, and the
State Taxation Committee. Acceptable reporting requirements for
the proposed PMO and PIOs shall be stipulated in the Loan
Agreement between ADB and Government of Uzbekistan.

H. Information Moderate MWR’s financial system utilizes the 1S Buhgalteriya accounting

Systems software supplemented with the use of excel spreadsheets and
manual methods. Management and operational units of projects,
being implemented under MWR, use similar accounting software
for internal and project operations, as well as financial reporting.

33. The following is the summary of the issues that will influence the implementation of the ABIS
Rehabilitation Project:
24

(i) The Law on Budgetary System12 regulates the budgeting process in Uzbekistan.
This law provides the legal basis for preparation, review, approval and execution
of the state budget. In case of projects financed jointly with International Financial
Institutions (IFI), the PMO is responsible for providing the forecasted project
budget for the subsequent year to the MIFT for approval in May of the current
year.

(ii) Government is taking strong measures to transform accounting standards in

order to make them consistent with International Standards on Auditing (ISA).
There is sufficient accounting personnel capacity, provided that they are trained
and informed about ISAs, contemporary financial management techniques and
accounting software.

(iii) Internal audit in both the private and public sector is very poor in Uzbekistan.
Government ministries and agencies do not have a unit responsible for internal
control and audit. The Control Revision Department of MOF is responsible for
internal audit of public sector organizations, but both the scope of its work and its
human resources are limited.

(iv) In Uzbekistan, the external audit system is being developed based on ISA.
External audit is not compulsory for state ministries or agencies. However, Article
1 of the Auditing Law (2000) states that if a certain international agreement
signed by the Republic of Uzbekistan lays down rules and regulations other than
those contained in the legislation of the Republic of Uzbekistan on audit activity,
the former is applicable. Projects financed by international financing institutions
are subject to annual audit by an independent auditor, as long as the loan
agreement between the Government and institutions stipulates this condition.

(v) Existing legal and organizational arrangements discussed in Country Diagnostic

Studies Review (CDSR) pose considerable risks and make the public
procurement process vulnerable. Institutional and human resources capacity at
the level of executing and implementing agencies should be evaluated and
possible institutional and procurement arrangements need to be defined at the
stage of project appraisal. Procurement of smaller packages should be subject,
at least, to Shopping method.

C. Disbursement

34. Pursuant to ADB's Safeguard Policy Statement (SPS) (2009),13 ADB funds may not be
applied to the activities described on the ADB Prohibited Investment Activities List set forth at
Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance
with applicable national laws and regulations and will apply the prohibited investment activities list to
subprojects financed by ADB.

35. The proceeds of the ADB loan will be disbursed according to ADB’s Loan Disbursement
Handbook (2012, as amended from time to time) 14. For large scale contracts for consulting services

12
Law of the Republic of Uzbekistan No. 158-II on Budgetary System dated 14 December 2000 and amended on 23
May 2005.
13 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
14 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf
 25

and equipment following ICB procedures, loan funds may be disbursed through direct payment. For
civil works following NCB procedures and small expenditures related to the PMO, reimbursement
and imprest fund procedures may be applied. For minor goods or services procured at provincial
levels payments to suppliers can be done through corresponding PIO.

36. To facilitate project implementation through timely release of loan proceeds, the MWR
will establish one imprest account for ADF after loan effectiveness at a commercial bank
acceptable to ADB.15 The ceiling of the imprest account will be 10% of the ADF loan amount.
The currency of the imprest account will be US dollar. The imprest account is to be used
exclusively for ADB’s share of eligible expenditures. The MWR who established the imprest
account in its name is accountable and responsible for proper use of advances to the imprest
account. The EA may request for initial and additional advances to the imprest account based
on an estimate of expenditure sheet setting out the estimated expenditures to be financed
through the imprest account for the forthcoming 6 months. Supporting documents should be
submitted to ADB or retained by the EA in accordance with ADB’s Loan Disbursement
Handbook when liquidating or replenishing the imprest account. As per banking regulations in
Uzbekistan, the PMO will be required to establish two bank accounts, one for foreign exchange and
second account for local currency. The foreign currency account will be used by PMO as its imprest
account.

37. As discussed in the CDSR, in line with the state budgeting process the PMO should identify
the project expenditure budgeted for in the upcoming year and send it to the MIFT (through MWR)
in May of the current year. Later the request for funds will be sent to MOF. Expenditure needs for
the upcoming 2013 year were not considered in the state budget for year 2012, since the feasibility
study is not yet approved by the COM. Therefore, before the loan agreement is finalized, it will be
essential to ensure that the budget for project start up is available for the initial fiscal year.

38. The overall budget for project implementation is included in the Presidential Decree for the
Project as an annex, to ensure that sufficient funds are budgeted for each component for each year
of implementation.

39. Since the project is a non-revenue earning project (for MWR), the Government will take the
responsibility for repaying the ADB loans. The project beneficiaries are not expected to provide
reimbursement of loans and or to pay for services provided by the project.

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

41. Before the submission of the first withdrawal application, MOF should submit to ADB
sufficient evidence of the authority of the person(s) 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 US$100,000, equivalent under
reimbursement and imprest fund procedures, unless otherwise approved by ADB. MWR is to
consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal

15 Bank charges to be incurred in the operation of the imprest account may be financed from the ADB loan proceeds.
26

applications and supporting documents will demonstrate, among other things that the goods, and/or
services were produced in or from ADB members and are eligible for ADB financing.

42. The disbursement of the proceeds of the Loans except for consulting services and
project management and monitoring will be conditional upon: (i) establishment by MWR of a
fully operational organization structure for project implementation to ADB’s satisfaction,
including a PMO in the MWR in Tashkent, a project implementation office (PIO) in ABISA in
Bukhara Province; (ii) the appointment of the project manager by the Government acceptable to
ADB; and (iii) the effectiveness of loan agreement between the government and the cofinancier.

43. The disbursement arrangement for JICA’s parallel financing will follow JICA’s guideline.

D. Accounting

44. MWR through the PMO will establish financial management and accounting systems for the
project in accordance with Financial Reporting and Auditing of Projects Financed by the ADB. The
PMO will also be responsible to maintain project accounts and financial statements. MWR through
the PMO will maintain, or cause to be maintained, separate financial records for the project, by
funding source, for all expenditures incurred on the project and prepare project financial
statements in accordance with financial reporting arrangements acceptable to ADB.

45. MWR and its PMO use the accrual method of accounting in their regular and project
operations. The accounting system of MWR, as well as of all state and private legal entities in
Uzbekistan, is based on the NAS and the national accounting guidelines of the MOF. As it is
practiced in other ADB-financed projects, the PMO will develop a project accounting manual in
accordance with ADB and MOF requirements. The manual will be updated annually to include
project accounting policy changes issued by the MOF.

46. All reports and supporting documents on all transactions will be stored and retained by the
project financial manager until documents are inspected by state controlling agencies (District Tax
Inspection, MOF), after which documents will be stored in archives.

47. Clear segregation of duties will be implemented at PMO level. The Project Manager is
authorized to execute the project transactions while the financial manager and the accountant
handles recording of the transactions. Payments are approved and made by the project manager
and the financial manager. In order to increase transparency and reduce potential misappropriation
the double checking system (i.e. requiring the documents to be signed by two persons) for bank
reconciliations has been found to be the best alternative in MWR, since the number of PMO
accounting personnel is limited in the case of non-revenue earning projects.

E. Auditing and Public Disclosure 16

48. The MWR will cause the detailed consolidated project accounts to be audited in accordance
with International Standards on Auditing and/or in accordance with the Government's audit
regulations by an independent auditor acceptable to ADB. The audited project financial statements
will be submitted in the English language to ADB within 6 months of the end of the fiscal year by the
executing agency.

16 The disclosure of audited project financial statements is guided by ADB’s Public Communication Policy 2011,
which is effective 2 April 2012.
 27

49. The annual audit report will include an audit management letter and auditor’s opinions
which cover (i) whether the project financial statements present a true and fair view or are
presented fairly, in all material respects, in accordance with the applicable financial reporting
framework; (ii) whether loan and grant proceeds were used only for the purposes of the project
or not; (iii) the level of compliance for each financial covenant contained in the legal agreements
for the project; (iv) compliance with the imprest fund procedure; and (v) compliance with use of
the SOE procedure certifying (a) to the eligibility of those expenditures claimed under SOE
procedures, and (b) proper use of the procedure in accordance with ADB’s Loan Disbursement
Handbook and the project documents.

50. Compliance with financial reporting and auditing requirements will be monitored by
review missions and during normal program supervision, and followed up regularly with all
concerned, including the external auditor.

51. The Government and MWR have been made aware of ADB’s policy on delayed submission,
and the requirements for satisfactory and acceptable quality of the audited project financial
statements.17 ADB reserves the right to require a change in the auditor (in a manner consistent
with the constitution of the borrower/grantee), 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.

52. Public disclosure of the project financial statements, including the audit report on the
project financial statements, will be guided by ADB’s Public Communications Policy (2011).18
After review, ADB will disclose the project financial statements for the project and the opinion of
the auditors on the financial statements within 30 days of the date of their receipt by posting
them on ADB’s website. The Audit Management Letter will not be disclosed.

17 ADB Policy on delayed submission of audited project financial statements:

 When audited project financial statements are not received by the due date, ADB will write to the executing agency
advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six months,
requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of
new reimbursement, and issuance of new commitment letters will not be processed.
 When audited project financial statements have not been 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 imprest
accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the
executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit documents are not
received within the next six months.
 When audited project financial statements have not been received within 12 months after the due date, ADB may
suspend the loan.
18 Available from http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications
28

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting

53. Any advance contracting will be undertaken in conformity with ADB’s Procurement
Guidelines (2013, as amended from time to time)19 and ADB’s Guidelines on the Use of Consultants
(2013, as amended from time to time).20 The issuance of invitations to bid under advance
contracting will be subject to ADB approval. The borrower and MWR have been advised that
approval of advance contracting financing does not commit ADB to finance the project. From the
loan signing date, the following two advertisement processes and necessary advanced actions with
possible advance contracting will commence: (i) the consultant services package (one contract) for
(a) procurement and construction supervision; (b) improved water management and water
consumers’ association (WCA) strengthening; and (c) project management and implementation
support; and (ii) the first turnkey contract for the construction of new Khamza pump station.

54. The project does not envisage retroactive financing.

B. Procurement of Goods, Works and Consulting Services

55. All procurement of goods will be undertaken in accordance with ADB’s Procurement
Guidelines. Bidders must be nationals of member countries of ADB and offered goods and services
must be produced in and supplied from member countries of ADB. The procurement plan will be
updated quarterly for the next 18 months of procurement activities.

56. Ugrading and Modernization of Pump Stations. The Executing Agency will employ
turnkey contractors for construction of new Khamza Pump Station and M&R of Kuyu Mazar,
Kizil Tepa, and Kizil Tepa auxiliary Pump Stations.21 The procurement will follow International
Competitive Bidding procedures using ADB's two-stage two envelope bidding method. ADB's
standard bidding documents for Plant: Design, Supply, Install will be used.

57. Procurement of works and equipment. International competitive bidding procedures

will be used for civil works and supply contracts valued at $2 million and above. Civil works
valued and goods valued at $100,000–$2,000,000 will be procured through national competitive
bidding (NCB) according to the NCB annex in the procurement plan, which summarizes
modifications or clarifications needed in the Borrower’s procedures to enable it to carry out NCB
under ADB-financed projects. Shopping procedures will be allowed for works, materials, and
equipment packages costing up to $100,000.

58. Consulting Services. All consultants will be recruited according to ADB’s Guidelines on
the Use of Consultants (2013, as amended from time to time). Quality- and cost-based selection
(QCBS) method will be the default method for recruiting consulting firms with quality:cost ratio of
90:10. ADB's prior approval is needed for determining the selection method. Individual
consultants may be engaged for specific assignments with prior approval of ADB. The terms of
reference for all consulting services are detailed in Section D.

59. Project Implementation Consultant (consulting firm) is required to assist the EA and PMO
with (i) project management, monitoring, and evaluation, (ii) procurement and construction

19
Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf.
20
Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf.
21 The cost of the M&R of Khamza 2 and Kizil Tepa auxiliary pump stations will be financed by JICA, and its

procurement will be administered by JICA in accordance with JICA’s relevant guidelines.

 29

supervisions, and (iii) improved water management and WCA strengthening. Estimated contract
duration is 72 months.

60. Participation by Government-owned enterprises. Government-owned enterprises in

Uzbekistan shall be eligible to participate as bidders only if they can establish that they are legally
and financially autonomous, operate under commercial law, and are not a dependent agency of the
contracting authority. They will be subject to the same bid and performance security requirements
as other bidders.

C. Procurement Plan

Basic Data
Project Name: Amu Bukhara Irrigation System Rehabilitation Project
Project Number: 44458-013 Approval Number: 3025/3026
Country: Uzbekistan Executing Agency: Ministry of Water Resources
Project Procurement Classification: Implementing Agency:
Project Procurement Risk: N/A
Project Financing Amount: US$ 380,000,000 Project Closing Date: 31 August 2022
ADB Financing: US$ 220,000,000
Cofinancing (ADB Administered):
Non-ADB Financing: US$ 160,000,000
Date of First Procurement Plan: 6 August 2015 Date of this Procurement Plan: 21 August 2019,
Version 5
Advance Contracting: e-GP:
Yes No

A. Methods, Thresholds, Review and 18-Month Procurement Plan

1. Procurement and Consulting Methods and Thresholds

61. Except as the Asian Development Bank (ADB) may otherwise agree, the following process
thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works

Method Threshold Comments
International Competitive Bidding for US$ 2,000,000 and Above Prior
Goods
National Competitive Bidding for Between US$ 100,000 and The first two NCB contracts is subject to
Goods US$ 1,999,999 prior review. If the first 2 contracts are
procured satisfactorily it will be
determined
by ADB if post-review may be used.
Shopping for Goods Up to US$ 99,999 Post review
International Competitive Bidding for US$ 5,000,000 and Above Prior
Works
National Competitive Bidding for Between US$ 100,000 and The first two NCB contracts is subject to
Works US$ 4,999,999 prior review. If the first 2 contracts are
procured satisfactorily it will be
determined
by ADB if post-review may be used.
Shopping for Works Up to US$ 99,999 Post review
30

Consulting Services
Method Comments
Quality- and Cost-Based Selection for Consulting Quality and cost based on 80:20 quality-cost
Firm weighing. Applied in
accordance with Guidelines on the Use of
Consultants (2013 as
amended from time to time)
Others for Consulting Firm CQS, LCS, FBS, and SSS

2. Goods and Works Contracts Estimated to Cost $1 Million or More

62. The following table lists goods and works for which the procurement activity is either ongoing
or expected to commence within the next 18 months.

Package General Estimated Procurement Review Bidding Advertisement Comments

Number Description Value Method (Prior/ Procedure Date
Post) (quarter/year)
None

3. Consulting Services Contracts Estimated to Cost $100,000 or More

63. The following table lists consulting services contracts for which the recruitment activity is
either ongoing or expected to commence within the next 18 months.

Package General Estimated Recruitment Review Advertisement Type of Comments

Number Description Value Method (Prior/ Date Proposal
Post) (quarter/year)
None

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and
Consulting Services Contracts Less than $100,000 (Smaller Value
Contracts)

64. The following table lists smaller-value goods, works and consulting services contracts for
which activity is either ongoing or expected to commence within the next 18 months.

Goods and Works

Package General Estimated Number Procur Review Bidding Advertisement Comments
Number Description Value of ement (Prior/ Procedure Date
Contracts Method Post) (quarter/year)
16 Mechanism for 11,000.00 1 SHOPP Post Q4 / 2019 Advanced
water saving ING Contracting: N
Comments:
Demonstration
activities, water
 31

saving irrigation
technologies
16-1 Rotary mower 15,000.00 1 SHOPP Post Q4 / 2019
chopper, straw ING
chopper,
cutting green Comments:
grass and
other Demonstration
crops activities, water
saving irrigation
technologies
16-2 Propeller type 60,000.00 1 SHOPP Post Q4 / 2019 Comments:
flow meter ING
Demonstration
activities, water
saving irrigation
technologies
16-3 Water meter 11,000.00 1 SHOPP Post Q4 / 2019 Comments:
rod ING
Demonstration
activities, water
saving irrigation
technologies
16-4 Micrometeorolo 23,000.00 1 SHOPP Post Q4 / 2019 Comments:
gy station with ING
protection and Demonstration
telemetry activities, water
saving irrigation
technologies

Consulting Services
Package General Estimated Number Recruitment Review Advertisement Type of Comments
Number Description Value of Method (Prior/ Date Proposal
Contracts Post) (quarter/year)
CS 17 Midterm 60,000.00 1 OTHERS Prior Q3 / 2018 BTP Assignment:
Socio- National
Economic
Survey

B. Indicative List of Packages Required Under the Project

65. The following table provides an indicative list of goods, works and consulting services
contracts over the life of the project, other than those mentioned in previous sections (i.e., those
expected beyond the current period).

Goods and Works

Package General Estimated Estimated Procurement Review Bidding Comments
Number Description Value Number Method (Prior/Post) Procedure
(cumulative) of
Contracts
None
32

Consulting Services
Package General Estimated Number of Recruitment Review Type of Comments
Number Description Value Contracts Method (Prior/ Proposal
Post)
18 Audit of 51,000.00 1 OTHERS Prior BTP Assignment:
Project National
Accounts Comments:
Recruitment
method is LCS

C. List of Awarded and On-going, and Completed Contracts

66. The following tables list the awarded and on-going contracts and completed contracts.
Awarded and Ongoing Contracts
Goods and Works
Package General Estimated Estimated Procurement Review Bidding Comments
Number Description Value Number Method (Prior/Post) Procedure
(cumulative) of Contracts
15 Equipment 60,000.00 23,977.00 SHOPPING Q1 / 2017 20-FEB-17 Supplier: PK
for Debyut
inter-farm &
on-farm
irrigation
system
rehabilitation-
dri
p and
sprinkler
irrigaiton
systems-
Bukhar
a dist
14 Equipment 60,000.00 34,019.00 SHOPPING Q1 / 2017 20-FEB-17 Supplier: PK
for Debyut
inter-farm &
on-farm
irrigation
system
rehabilitation-
dri
p and
sprinkler
irrigaiton
systems-
Romita
n dist
13 Equipment 60,000.00 61,336.00 SHOPPING Q1 / 2017 20-FEB-17 Supplier: PK
for Debyut
inter-farm &
on-farm
irrigation
system
rehabilitation-
dri
p and
sprinkler
irrigation
systems-
 33

Vobken
t dist
16-6 Procurement 13,000.00 8,176.41 SHOPPING Q4 / 2016 09-DEC-
of 16
seedlings for
new
intensive
garden on 3
demo plots
16-7 Procurement 13,000.00 8,021.54 SHOPPING Q1 / 2017 24-JAN-17
of
seedlings for
new
intensive
garden on 3
demo plots
16-5 WUA retail 2,600.00 2,427.14 SHOPPING Q4 / 2016 10-FEB-17
initiative -
projector,
projector
screen
and photo
camera
ABISRP/IC [Re-bid 02] 92,000,000.00 82,960,748.24 ICB Q3 / 2018 04-JUL-19 Contractor: China
B/01 Plant-Design National Technical
Supply, Import and Export
Install Corp.
Contract for
Construction
of
Khamza New
Pump Station
11 Inter-farm & 324,600.00 310,621.20 NCB Q2 / 2016 17-JUN-16 Kogon Suv
on-farm Kurilish;
irrigation Contract No.
system ABISRP 04
rehabilitation
ABISRP/IC M&R of 7,700,000.00 6,680,000.00 ICB Q4 / 2015 16-MAR- Contractor:
B/02 ABMC 16 Consortium LLC
regulation Kogon Suv Kurilish
structures and JSC
Amubukhorokanalk
urilish; Contract
No. ABISRP 02
ABISRP/IC Plant-Design, 79,000,000.00 84,147,652.42 ICB Q1 / 2016 Contractor: Hebei
B/03 Supply, Construction
Install Group
Contract for Co, Ltd & Hebei
M&R of Kizil Water
Tepa and Conservancy Eng.
Kuyu Bureau
Mazar Pump
stations

Consulting Services
34

Package General Estimated Estimated Procurement Review Bidding Comments

Number Description Value Number Method (Prior/Post) Procedure
(cumulative) of
Contracts
17 Audit of 30,000.00 25,240.00 OTHERS Q2 / 2017 05-APR-18
Project
Accounts for
2017-2019
5 Auditor 45,000.00 8,990.00 OTHERS Q2 / 2015 07-APR-16
ABISRP/Q Project 6,500,000.00 5,540,253.00 QCBS Q1 / 2014 10-DEC-14
CBS/01 Management,
Procurement,
Construction
Supervision
and
Capacity
Building

D. National Competitive Bidding

1. General

67. The procedures to be followed for national competitive bidding shall be those set forth in the
applicable resolutions of the COM of Republic of Uzbekistan with the clarifications and modifications
described in the following paragraphs required for compliance with the provisions of the ADB
Procurement .

2. Eligibility

68. The eligibility of bidders shall be as defined under section I of the Procurement Guidelines;
accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those
stated in section I of the Procurement Guidelines. Bidders must be nationals of member countries of
ADB, and offered goods, services, and works must be produced in and supplied from member
countries of ADB.

3. Prequalification

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

4. Registration and Licensing

(i) Bidding shall not be restricted to pre-registered/licensed firms.

(ii) Where registration or licensing is required, bidders (i) shall be allowed a

reasonable time to complete the registration or licensing process; and (ii) shall
not be denied registration/licensing for reasons unrelated to their capability and
resources to successfully perform the contract, which shall be verified through
post-qualification.

(iii) Foreign bidders shall not be precluded from bidding. If a registration or licensing
 35

process is required, a foreign bidder declared the lowest evaluated bidder shall
be given a reasonable opportunity to register or to obtain a license.

5. Bidding Period

70. The minimum bidding period is 28 days prior to the deadline for the submission of bids.

6. Bidding Documents

71. Procuring entities should use standard bidding documents for the procurement of goods,
works and services acceptable to ADB.

7. Preferences

72. No domestic preference shall be given for domestic bidders and for domestically
manufactured goods.

8. Advertising

73. Invitations to bid shall be advertised in at least one widely circulated national daily
newspaper or freely accessible, nationally known website allowing a minimum of 28 days for the
preparation and submission of bids.

74. Bidding of NCB contracts estimated at $500,000 equivalent or more for goods and related
services of $1,000,000 equivalent or more for civil works shall be advertised on ADB’s website via
the posting of the procurement plan.

9. Bid Security

75. Where required, bid security shall be in the form of a bank guarantee from a reputable bank.

10. Bid Opening and Bid Evaluation

(i) Immediately after the date and time set for the deadline for bid submission, bids
shall be opened in public. A record of bid opening shall be prepared by the
executing agency, or implementing agency, or the contracting authority, and such
record shall be distributed to all bidders.

{Note: The revision of the above provision is recommended on the basis of the points discussed
in the World Bank’s Country Procurement Assessment Report for the Republic of Uzbekistan
(“WBAR”), which are as follows: (i) major defects in the current procedures in Uzbekistan
include that of the failure to require that the bid opening coincide with the deadline for
submission of bids, resulting in the virtual non-application of best practice; a time lag of as long
as one week between the deadline for submission of bid opening, and failure to disclose the
minutes of the bid opening (see them C.2.15 of the WBAR), and (ii) Resolution No. 305 of the
Cabinet of Ministers specifically stipulates that the minutes of the bid opening are not to be
published.}

(ii) Evaluation of bids shall be made in strict adherence to the criteria declared in the
bidding documents and contracts shall be awarded to the lowest evaluated bidder.
36

(iii) Bidders shall not be eliminated from detailed evaluation on the basis of minor,
non-substantial deviations.

(iv) No bidder shall be rejected on the basis of a comparison with the contract cost
estimate(s) and budget ceiling(s) set by the borrower/executing agency without
ADB’s prior concurrence.

(v) A contract shall be awarded to the technically responsive bidder that offers the
lowest evaluated price and meets the qualifying requirements. Negotiations shall
not be permitted.

(vi) Price verification shall not be applied.

11. Rejection of All Bids and Rebidding

76. Bids shall not be rejected, and new bids solicited without ADB’s prior concurrence.

12. Participation by Government-Owned Enterprises

77. Government-owned enterprises in Uzbekistan shall be eligible to participate as bidders only

if they can establish that they are legally and financially autonomous, operate under commercial law
and are not a dependent agency of the contracting authority/executing agency/implementing
agency. Furthermore, they will be subject to the same bid and performance security requirements
as other bidders.

13. Right to Inspect/Audit

78. A provision shall be included in all NCB works and goods contracts financed by ADB
requiring suppliers and contractors to permit ADB to inspect their accounts and records and other
documents relating to the bid submission and the performance of the contract, and to have them
audited by auditors appointed by ADB.

14. Fraud and Corruption

(i) The Borrower shall reject a proposal for award if it determines that the bidder
recommended for award has, directly or through an agent, engaged in corrupt,
fraudulent, collusive, or coercive practices in competing for the contract in
question.

(ii) The Asian Development Bank (ADB) will declare a firm or individual ineligible,
either indefinitely or for a stated period, to be awarded a contract financed by
ADB, if it at any time determines that the firm or individual has, directly or through
an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in
competing for, or in executing, ADB-financed contract.

15. Pre-Shipment Inspections

79. Pre-shipment inspections, if necessary, shall be carried out by an independent reputable

testing authority/surveyor in the supplier’s country for reasons of sound engineering practice and
economy and efficiency in project implementation.
 37

{Note: Inclusion of the above provision is recommended because (i) as indicated in the Item C.2.19
of the WBAR, provision is included in COM Resolution No. 66 that pre-shipment inspection is to be
carried out by firms accredited by Uzdavstandart (as of the date of publication of the WBAR, four
companies are accredited); and (ii) COSO’s memorandum to Project Departments dated 12
February 1999 states, in part as follows: “the concerned Project Division should examine whether
the above inspection and tests are necessary and if so, inspections and tests shall be carried out by
an independent reputable testing authority/surveyor in the supplier’s country”.}

16. Disclosure of Decision on Contract Awards

80. At the same time that notification on award of contract is given to the successful bidder, the
results of bid evaluation shall be published in a local newspaper or a well-known freely accessible
website identifying the bid and lot numbers and providing information on (i) name of each bidder
who submitted a bid, (ii) bid prices as read out at bid opening; (iii) name of bidders whose bids were
rejected and the reasons for their rejection, and (iv) name of the winning bidder, and the price it
offered, as well as duration and summary scope of the contract awarded. The executing
agency/implementing agency/contracting authority shall respond in writing to unsuccessful bidders
who seek explanations on the grounds on which their bids are not selected.

{Note: The inclusion of the above provision is recommended for the following reasons: (a) to comply
with the requirement stated in paragraph 3.4 of the Procurement Guidelines, and (b) to complement
the provisions stated in the COM Resolutions (as discussed in the Item C.2.23 of the WBAR, COM
Resolution No. 305, bid protest procedure is available only before entry into force of the
procurement contract, and under other COM resolutions, only judicial recourse is available for bid
protests).}

C. Consultant's Terms of Reference

81. The Implementation Consultant’s complete terms of reference is presented in Appendix 1.

82. A single consulting services package will be provided to support the PMO to implement the
project’s (i) infrastructure and (ii) management improvements. It will also help the PMO to develop
its capacity to (iii) manage the overall project and (iv) prepare reports.

83. The consultants will assist the MWR in:

(i) Preparation of detailed designs as necessary, pre-qualification and bidding

documents, evaluation of pre-qualification and tender submissions, construction
supervision and management;

(ii) Improving the management the Amu Bukhara Irrigation System (ABIS) through:
(a) strengthening ABISA, BISA, ISAs, and WCAs staff capacities; (b) introducing
improved O&M procedures; (c) supporting the establishment of WCAs; and (d)
developing and installing a decision support system (DSS), comprising
supervisory control and data acquisition (SCADA) system, and an optimized
water resources management model;

(iii) Supporting the M&R of priority ABIS pumping infrastructure through supervision
of turnkey contractor for: (a) complete replacement of the pumps, motors and
other ancillary facilities with modern units for three pumping stations, which
includes a New Khamza Pump Station, and rehabilitation of Kuyu Mazar
Pumping Station; (b) improvement to maintenance of facilities through the
38

installation of modern and efficient pump sets and ancillary equipment; and (c)
improvements to selected pump station buildings for management monitoring
and reducing greenhouse gas emissions;

(iv) Rehabilitation of the ABMC infrastructure for upgrading of the ABIS main system.
The ABMC rehabilitation component will replace/repair or upgrade worn-out
existing control and measurement infrastructure at critical locations in the main
conveyance system. The rehabilitation will improve the reliability of irrigation
water service and, along with the rehabilitation of the main pump stations, make
the main conveyance system more efficient, cost-effective and safer.

(v) Supporting capacity building to BISA, ISAs, and WCAs by organizing trainings for
management staff and leadership on the procedures for effective O&M of the
system and on WCA development. Also providing direct support to the operation
of ISAs and their WCAs in three selected pilot demonstration areas. The PPTA
has identified one pilot demonstration area. The Consultants are required to
propose the other two suitable pilot demonstration area within the ABIS.

(vi) Training and advising PMO and PIO staff and providing implementation support
during project implementation including project financial management. Assisting
with establishment within the PMO of a monitoring and evaluation (M&E) unit to
carry out project performance monitoring, including the environmental and social
impacts as specified in the summary initial environment examination and the
poverty and social assessment, and the progress and performance of various
reform measures introduced under the project, according to the specific
monitoring indicators.

84. The consultants will be engaged as a firm in accordance with ADB’s Guidelines on the Use
of Consultants using the quality-and-cost-based selection method, and other arrangements for the
selection and engagement of national consultants.
 39

VII. SAFEGUARDS

85. Government of through MWR will ensure that all safeguard requirements prescribed for the
project that have been prepared are implementation. The project, in accordance to ADB SPS 2009,
was categorized as a “B” project for environment, and as “C” project for Involuntary Resettlement
and Indigenous People impacts. Therefore, the following safeguard document was prepared during
project preparation:

(i) The Initial Environmental Examination (IEE) including its Environmental

Management Plan was prepared. This report identified potential impacts related with
the project and proposed mitigation measures and monitoring plan that presented in
the Environmental management Plan (EMP); and
(ii) The social safeguard due diligence covering: (i) the social safeguard audit to ensure
that there has been no past and present claim on land that were used by the existing
facilities, and (ii) confirming that based on present/initial design engineering, the
proposed rehabilitation and reconstruction will not require any land acquisition.

86. The Government through MWR oblige to implement recommendation from these two
safeguard reports that were prepared with adequate consultation with people living in surrounding
project areas. The following paragraphs describe briefly the activities to be implemented during
project implementation and operation.

A. Environment

87. MWR will ensure that the design, construction, and operation and maintenance of the
facilities under the project are carried out in accordance with ADB’s SPS (2009), applicable laws
and regulations in Uzbekistan, and recommendation from IEE and its EMP. MWR will ensure that
potential adverse environmental impacts arising from the project are minimized by implementing all
mitigation and monitoring measures as presented in the environment management plan (EMP)
included in the IEEs. MWR will ensure that:

(i) EMP is updated prior to implementation of civil works.

(ii) The MWR and the PMO have sufficient resources to implement and record the
implementation of the EMPs prepared for the project.
(iii) Starting from project commencement, the PMO will submit semi-annual
environmental reports prepared by the environment safeguard specialist to ADB,
within 3 months of the close of each half of the calendar year during
implementation of each individual project under the Investment Program. The
report will include, among other things, a review of progress made on
environmental measures detailed in the IEEs and EMPs and monitoring thereof;
and problems encountered, and remedial measures taken.
(iv) Detailed engineering designs, civil works and other contracts for the project
incorporate applicable environmental measures identified in the IEEs and EMP.
(v) Civil works contractors are supervised to ensure compliance with the
requirements of the IEEs and EMPs.
(vi) ensure that bidding document include all safeguards requirement as describe in
the IEE and its EMP and Social Audit Compliance Report.
(vii) ensure the winner bidder will have adequate resources to implement safeguards
requirement; and
40

(viii) ensure that all construction works will be taken place in the permanent land
possession of ABISA, and if additional land required for construction works,
ensure that land acquisition and resettlement plan is prepared in accordance to
ADB SPS 2009 as well as the Government law and regulation related with land
acquisition.

B. Land Acquisition and Resettlement, and Indigenous peoples

88. The Due diligence report showed that the project will be implemented only in the existing
areas, and no temporary or permanent land acquisition will be needed for the project. Therefore,
MWR will ensure that:
(i) the project will neither involve land acquisition nor involuntary resettlement within
the understanding of the SPS 2009, applicable laws and regulations in
Uzbekistan.
(ii) PMO has to monitor that the project will be implemented only in the areas under
the permanent possession of MWR or ABIS.
(iii) In case, based on detailed design, additional land is required triggering any land
acquisition and resettlement or loss of assets, the MWR will prepare land
acquisition and resettlement plan (LARP) in accordance with Government’s
requirement and comply with ADB SPS 2009, The LARP will need to be
prepared in consultation with affected people, disclosed to affected people, and
approved by ADB. If land will be required due change on design, the civil work
contract will be fielded only after compensations are fully paid.

89. The project areas is not involve any territory, habitat, or common property that are managed
by ethnic minority or indigenous people, and the project is not expected to generate impacts to
indigenous people as described in ADB SPS 2009, because there is no such community living in
surrounding project areas. Therefore, no arrangement to address indigenous people impacts as
described in ADB SPS 2009 was prepared.

VIII. GENDER AND SOCIAL DIMENSIONS

90. MWR will ensure that the project monitors the social impacts throughout the implementation
financed by the Loan, in consultation with local governments, local communities and
nongovernment organizations. In this respect, MWR will ensure that all civil works contractors
including turnkey contractors: (i) comply with all applicable labor laws and do not employ child labor
for construction and maintenance activities, and provide appropriate facilities for children in
construction campsites if required; (ii) use their best efforts to set employment targets for poor and
vulnerable people, particularly women, for all construction and maintenance activities, require
contractors to use local unskilled labor; (iii) disseminate information at worksites on health safety for
those employed during construction; (iv) maintain equal pay to men and women for work of equal
type; (v) provide safe working conditions and separate culturally appropriate facilities for male and
female workers; and (vi) abstain from child labor. A specific clause shall be included in bidding
documents, and compliance shall be strictly monitored during project implementation.
 41

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND

COMMUNICATION

A. Project Design and Monitoring Framework

91. Project DMF is in Appendix 2.

B. Monitoring

(i) Project performance monitoring

92. Project Performance Monitoring. The PMO and project implementation consultants will
prepare separate progress reports for the project and submit to ADB on a quarterly basis within 30
days from the end of each quarter. The reports will provide a narrative description of progress made
during the period, changes in the implementation schedule, problems or difficulties encountered,
performance of the project management and implementation consultants, and the work to be carried
out in the next period. The progress reports will also include a summary financial account for the
project, consisting of project expenditures for the year to date and total expenditure to date.
Performance will be evaluated on the basis of indicators and targets stipulated in the design and
monitoring framework.22

93. The PMO through the project performance monitoring system (PPMS), and ADB through a
new project management information system (i.e. eOps) will rigorously monitor the overall
performance of the project. The PMO will establish a PPMS within 6 months from project
commencement and collect and update baseline data for performance monitoring. The international
and national M&E consultants will establish the system, with on-going support to the PMO from the
national consultant. The system will be tailored to project-specific requirements and prepared in
consultation MWR and specialists within PMO. The key indicators and targets, assumptions, and
risks outlined at the impact, outcome, and output levels in the project’s DMF will be the primary data
required for analysis. In addition, a database of key benchmark indicators will be established by the
PMO and become a part of the project monitoring system and be routinely updated and monitored
at least twice a year and in greater detail immediately prior to midterm review and project
completion. For this purpose, ADB inception mission will provide to MWR and the PMO a checklist
of the above data in a word file, which will be updated in track changes and reported quarterly
through the MWR’s quarterly progress reports and after each ADB review mission. These quarterly
reports will provide information to regularly update ADB's eOps.

94. MWR will involve the beneficiaries in the collection of data on impacts and outcomes. During
each review mission, the updated project performance will be shared with the interested
representatives of project beneficiaries.

95. An M&E Expert to be recruited will report directly to the Project Director of the PMO and
submit monthly and quarterly reports after extensive on-site visits, which will also be sent to ADB. By
adopting this mechanism there is opportunity for close monitoring and result oriented approach for
achieving project required objectives. This exercise shall continue at least first year of the project.

22 ADB's project performance reporting system is available at:

http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool
42

(ii) Compliance monitoring

96. Compliance Monitoring. Loan covenants—policy, legal, financial, economic,

environmental, and others—will be monitored through semi-annual project meeting and the midterm
review.

(iii) Safeguards monitoring

97. Safeguards monitoring will be performed by the Safeguards Unit of the PMO and
implementation consultants, and the results will be included in the quarterly progress reports. Such
monitoring should adhere to the requirements in the IEE and LARPs.

(iv) Gender and social dimensions monitoring

98. The project will not have an adverse impact on women and girls and will be gender neutral.
Classification is “some gender elements.” The project design was developed to (i) include a gender
specialist in the PMO; (ii) set out an information campaign that clearly identifies the role of women in
the project; (iii) establish and train monitoring groups; and (iv) disaggregate key input, output, and
outcome indicators by gender.
(v) Evaluation

99. Inception Mission. ADB will field an inception mission after loan signing to (i) establish a
working relationship between ADB and the executing agency; and (ii) to ensure that the borrower
and executing agency understand ADB's procedures.

100. Review Missions. ADB will field review missions at least once a year to review overall
implementation of the project and update project implementation schedule based on mission
findings.

101. Midterm Review Mission. ADB will field a midterm review mission after two years of loan
signing to assess whether attainment of the project’s immediate objective (purpose in terms of the
design and monitoring framework) is still likely.

102. Project Completion Review Mission. ADB will field a project completion review mission
upon physical completion of the project to commence preparation of ADB's project completion
report. Within six (6) months of project completion, MWR through the PMO shall submit a project
completion report to ADB that includes information on (a) project implementation; (b) the use of
Loan proceeds; and (c) the accomplishments in relation to the project's outcome and impact.23

C. Reporting

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

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

Sector-Landscape.rar
 43

104. The MWR shall also provide other reports and information relating to the project as ADB
may reasonably request.

105. Within six months of the Effective Date, MWR through the PMO shall establish the PPMS to
monitor the project's progress in achieving the planned outputs, outcome, and impact. MWR shall
also ensure that the M&E team within the PMO shall measure results of the project progress and
report its findings to MWR and ADB. A matrix of indicators shall be established and the baseline
data for the agreed indicators shall be gathered and updated every six months. The data shall be
reported to stakeholders and the public. During the project review missions, the indicators shall be
validated and may be modified to ensure more accurate reflection of the project performance and
results.

D. Stakeholder Communication Strategy

106. Project information will be strategically disseminated through media at main milestones
including loan signing, contract awards and project completion. Grievance redress mechanism will
be established at the PMO, by phone and email, and through public consultation events.

107. During Public Consultations two Local Government Units, Makhallas, agreed to establish
Project Progress Monitoring Units in Bukhara and Romitan Districts to inform local stakeholders
including CSOs, in particular, community based organizations such as WCAs and to ensure
appropriate actions are carried out to maintain progress. The PMO shall provide project
performance updates on progress every six months.

ADB Public Communications Strategy

Means of Responsible
Project Documents Communication Party Frequency Audience(s)
initial PID no
later than 30
calendar
Project Information Document
ADB’s website ADB days of approval General Public
(PID)
of the concept
paper; quarterly
afterwards
draft DMF after
Design and Monitoring Project-affected
ADB’s website ADB post fact-finding
Framework (DMF) people
mission
at least 120
General Public,
Environmental Impact days before
ADB’s website ADB project-affected
Assessments Board
people in particular
consideration
General Public,
Resettlement Planning post fact-finding
ADB’s website ADB project-affected
Documents mission
people in particular
within 2 weeks
Reports and Recommendations of Board
ADB’s website ADB General Public
of the President approval of the
loan
no later than 14
days of Board
Legal Agreements ADB’s website ADB General Public
approval of the
project
General Public,
Initial Poverty and Social within 2 weeks
ADB’s website ADB project-affected
Assessment of completion
people in particular
44

Means of Responsible
Project Documents Communication Party Frequency Audience(s)
Documents Produced under within 2 weeks
ADB’s website ADB General Public
Technical Assistance of completion
Project Administration After loan
ADB’s website ADB General Public
Memorandum negotiations
routinely
General Public,
Social and Environmental disclosed, no
ADB’s website ADB project-affected
Monitoring Reports specific
people in particular
requirements
within 2 weeks
Major Change in Scope ADB’s website ADB of approval of General Public
the change
within 2 weeks
of Board or
Progress Reports ADB’s website ADB General Public
management
approval
within 2 weeks
of circulation to
Completion Reports ADB’s website ADB General Public
the Board for
information
routinely
disclosed, no
Evaluation Reports ADB’s website ADB General Public
specific
requirements
Performance of the investment
program with clearly defined
information requirements and
indicators, policy construction per project
The borrower
and reconstruction, 5-year The borrower's progress, no
(Executive General Public
investment plan, business Website longer than
Agency)
opportunities, bidding process monthly
and guidelines, results of bidding
process, and summary progress
reports of the ongoing projects.

X. ANTICORRUPTION POLICY

108. ADB reserves the right to investigate, directly or through its agents, any violations of the
Anticorruption Policy relating to the Project.24 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/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.25

109. To support these efforts, relevant provisions are included in the loan agreement and the
bidding documents for the project. Procurement will follow ADB's Procurement Guidelines;
consultant selection will adopt ADB's Guidelines on the Use of Consultants; and disbursement will
be made in accordance with ADB's disbursement policies, guidelines, practices, and procedures.

110. MWR will provide updated information on the project on MWR’s website, including
information on the performance of the project, business opportunities, bidding process and
guidelines, outcome of biddings and summary progress reports of the project.

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

25 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp
 45

111. ADB reserves the right of query on the use of bank accounts in third country and the third
country payment to the account outside of ADB’s member countries.

XI. ACCOUNTABILITY MECHANISM

1. 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 a good faith effort 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.26

XII. RECORD OF PAM CHANGES

2. All revisions/updates during course of implementation should retained in this Section to

provide a chronological history of changes to implemented arrangements recorded in the PAM.
Description of Revision Date
Loan Review Mission 07/09/2020

26 For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

46

APPENDICES:

Appendix 1 Outline Terms of Reference of Consultants

Appendix 2 Design and Monitoring Framework
 Appendix 1 47

OUTLINE TERMS OF REFERENCE FOR CONSULTING SERVICES1

I. INTRODUCTION

1. The project will require 204 person-months (p-m) of international and 681 p-m of national
consulting services to assist the Ministry of Water Resources (MWR), the executing agency
(EA). ADB will finance to recruit a consultant firm with estimated 173 p-m of international and
535 p-m of national consulting services to assist the MWR to implement the scope of works
financed by ADB while the rest of required consultant inputs will be financed by JICA to assist
the MWR to implement the scope of works financed by JICA.

2. The overall project period is about seven years. The Consultancy assignment shall span
this entire period although the inputs of individuals will vary according to need. In case of a
delay, the project implementation period may go beyond the completion date subject to ADB
approval.

3. The list of experts and their person-months inputs are summarized in the Table below.

Summary of Experts and person-months inputs

person-months
Expertise
International National Total
Project Management, Monitoring and Evaluation
1. Water Resources Engineer/Team Leader 33 33
2. Hydrotechnical Engineer/Deputy Team Leader 72 72
3. Social and Economic (M&E) Specialist 2 18 20
4. Financial Management Specialist 18 18
5. Environmental (M&E) Specialist 12 18 30
6. Social Safeguards and Gender Specialist 2 12 14
7. Climate Change Adaptation Specialist 4 4 8
8. Climate Change Mitigation Specialist/Carbon Credit 1 9 10
Specialist
Engineering Procurement & Construction Supervision
9. Chief Resident Engineer 48 60 108
10. Mechanical Engineers- design 12 12 24
11. Electrical Engineers (HV + Switch Gear) 8 4 12
12. HVAC Specialist 4 4
13. Electrical Engineers (Motors and Auxiliary Facilities) 8 12 20
14. Civil Engineer (Structural Design) 12 12 24
15. Bridge Engineer (Design) 4 4
16. Hydrologist 4 8 12
17. Geotechnical Specialist 3 8 11
18. DSS & SCADA Preparation Specialist 2 2
19. Survey Engineer 2 7 9
20. Procurement Specialist 12 24 36
21. Construction Supervision Engineer(s) 180 180
22. Instrumentation Engineer 4 5 9
23. Electrical Engineer (Installation of Pump and 36 36
other facilities)

1
The terms of reference for consulting services include the services covering ADB’s scope of works financed by ADB
to be administered by ADB and the services covering JICA’s scope of works financed by JICA to be administered
by JICA.
48 Appendix 1

24. Pump Station Civil Works Inspectors 60 60

(Measurement and Quality control)
25. Mechanical & Electrical Works Inspectors 53 53
26. Electrical Engineer (Transmission and installation 16 16
facilities)
27. Civil Works Inspectors 18 18
28. Canal and Bridge Construction Inspector 8 8
Institutional Support, Capacity Building and Training
29. Extension Specialist 4 20 24
30. Irrigation Drainage and On-farm management Sp. 4 36 40
31. Institutional Development Specialist 20 20
32. Monitoring and Change Management Specialist 4 12 16
33. Agronomist 36 36
34. WCA Specialist 8 22 30
35. Hydrometeorologist 3 9 12
Unallocated 12 36 48
TOTAL 204 681 885
DSS = decision support system, HV = high voltage, HVAC = heating, ventilation, air conditioning heating,
ventilation, air conditioning, M & E = monitoring and evaluation, SCADA = supervisory control and data
acquisition, WCA = water user’s associations.
Sources: Asian Development Bank.

II. SCOPE OF SERVICES

4. The services will be provided by an international consulting firm in association with

national consultants (either as individuals or national consulting firm[s]). The Consultant will
work within the Project Management Office (PMO) based in Tashkent and within the Project
Implementation Office (PIO) in Bukhara. The Consultant shall carry out such other activities,
which may not be mentioned below, but are required for the due completion of its assignment
and mutually agreed with the PMO and MWR. The scope of the Consultant assignment is as
follows:

5. The consultants will assist the MWR in:

(i) Replacement/Rehabilitation/Upgrade of six prioritized Main Pump Stations (New

Khamza and its Auxiliary, Khamza 2, Kuyu Mazar, and Kizil Tepa and its
Auxiliary) to provide reliable water for irrigation, domestic, municipal, and
industrial uses, reduce operation and maintenance (O&M) costs, including power
consumption, and reduce green gas emissions.

(ii) Support, training and advising PMO and PIO staff in project implementation and
management including project financial management in accordance with project
administration manual and other project documents. Assisting with establishment
within the PMO of a monitoring and evaluation (M&E) unit to carry out project
performance monitoring, including the environmental, social and safeguards
impacts as specified in the summary initial environment examination and the
poverty and social assessment, and the progress and performance of various
reform measures introduced under the project, according to the specific
monitoring indicators.

(iii) Preparation of bidding documents, evaluation of bid proposals, construction

supervision and management.
 Appendix 1 49

(iv) Improving the management of the Amu Bukhara Irrigation System (ABIS)
through: (i) strengthening Amu Bukhara Irrigation System Authority (ABISA),
Basin Irrigation System Administration (BISA), Irrigation System Administration
(ISA), and Water Consumers Association (WCA) staff capacities; (ii) introducing
improved operation and maintenance (O&M) procedures; (iii) supporting the
establishment of WCAs; and (iv) developing and installing a DSS, comprising
SCADA system, and an optimized water resources management model.

(v) Supporting the M&R of priority ABIS pumping infrastructure through supervision
of turnkey contractor for: (i) complete replacement of the pumps, motors and
other ancillary facilities with modern units for pumping stations; (ii) improvement
to maintenance of facilities through the installation of modern and efficient pump
sets and ancillary equipment; and (iii) improvements to selected pump station
buildings for management monitoring and reducing greenhouse gas emissions.

(vi) Rehabilitation of critical Amu Bukhara Main Canal (ABMC) infrastructure for
upgrading of the ABIS main system. The ABMC rehabilitation component will
replace/repair or upgrade worn-out existing control and measurement
infrastructure at critical locations in the main conveyance system. The
rehabilitation will improve the reliability of irrigation water service and, along with
the rehabilitation of the main pump stations, make the main conveyance system
more efficient, cost-effective and safer. The consultants will assist MWR/PMO in
the supervision of the contractor selected for the ABMC civil works.

(vii) Supporting capacity building to BISA, ISAs, WCAs by organizing training for
management staff and leadership on the procedures for effective O&M of the
system. Supporting WCA strengthening and development towards sustainability
and the implementation of Integrated Water Resources Management (IWRM)
principles. Supporting to establish a plan for climate change adaptive water
management and agricultural extension with active participation of WCAs and
farmers, including the poor and vulnerable.

6. Initiation of far-reaching reforms of farming practices, with the overarching goal of

attaining a 40% reduction in overall water usage by 2050, as a sustainable response to
declining water availability from the Amu Darya, and to changing climate. Also providing direct
support to the operation of ISAs and their WCAs in two selected pilot demonstration areas by
training and providing advisory services to more than 124 WCAs in Bukhara Province, but with
direct attention on WCAs within the ABIS. The project preparation technical assistance (PPTA)
Consultant has identified one pilot demonstration area. The Consultants are required to propose
a second suitable pilot demonstration area within the ABIS.

7. The consultants will be engaged as a firm in accordance with ADB’s Guidelines on the
Use of Consultants using the quality-and-cost-based selection method, and other arrangements
for the selection and engagement of national consultants.
50 Appendix 1

III. OUTLINE TERMS OF REFERENCES DESCRIPTION OF TASKS

A. Project Management, Monitoring and Evaluation

8. The PMO will be stationed at Tashkent, the Project headquarters, to facilitate coordination,
with other agencies involved in design, construction management and supervision. The Consultant
will assist with facilitating coordination of PMO with EA staff, PIO, contractors, design institutes,
local administration, the beneficiaries and other consultants hired under the technical assistance
associated with the project. The Consultant in coordination and support of the PMO and PIO
will, inter alia, undertake the following main tasks:

1. Project Management and Team Leadership

(i) Assist PMO in coordinating all matters related to project implementation with relevant
ministries of the Government of Uzbekistan (MWR, Ministry of Finance, State Committee
on Ecology and Environmental Protection and others), PIO, design institutes, the
consultants hired under the technical assistance associated with the project, the local
administration, ADB, and other organizations related to project implementation;

(ii) Provide EA staff with on-the-job training in implementing the ADB guidelines and
procedures, efficient project management and scheduling techniques;

(iii) Assist PMO in programming project activities, estimating the financial requirements for
these activities and the release of funds on time;

(iv) Assist the PMO in coordination with PIO and other agencies to ensure that the tendering
procedures for procurement of works, services, equipment, and materials are in line with
ADB procedures, and that all steps are taken expeditiously and in a transparent manner;

(v) Assist the PMO to ensure that the accounting standards for the project meet ADB
requirements and that the withdrawal applications sent to ADB are complete and are
sent on a timely basis; and

(vi) Assist the PMO to ensure that all periodic reports are prepared systematically, submitted
on time, reflect the real picture of project implementation; that major issues relating to
project implementation are brought to the attention of the concerned parties; and that
necessary remedial measures are implemented.

2. Social, Economic, and Environmental Monitoring & Evaluation

(i) Assist the PMO to develop a project monitoring and evaluation (M&E) system, including:
(a) long-term environmental and social impact monitoring programs; and (b) quantifiable
indicators to monitor and measure the performance, level of maintenance and efficiency of
the rehabilitated system;

(ii) Assist the PMO to ensure that such an evaluation system will be compatible with or
improve the existing Government’s system to monitor development progress in the
agricultural sector so that the project impact monitoring can be performed effectively by
the Government after project completion;
 Appendix 1 51

(iii) Develop in coordination with the PMO a standard format for reports that will clearly
reflect project progress in the context of each its components;

(iv) Prepare manuals in coordination with the PMO and conduct training for PMO and PIO
staff (monitoring and evaluation unit/MEU) to conduct regular monitoring of the project
activities and prepare project progress reports;

(v) Assist the PMO to assess the environmental impacts of all rehabilitation works under the
project;

(vi) Assist the PMO to identify key environmental problems requiring further investigations
and prepare plan on ecological mitigation measures;

(vii) Assist the PMO to make projection of environmental status for the post-implementation
period;

(viii) Assist the PMO to evaluate the requirements for environmental monitoring and prepare
a long-term environmental monitoring program;

(ix) Assist the PMO to update as necessary the environment management plan prepared by
the PPTA;

(x) Provide on-the-job training to the PMO and PIO staff on the modern methods of socio-
economic survey;

(xi) Assist PMO and PIO staff to plan and conduct a midterm socioeconomic survey that
updates the survey prepared by the PPTA for the project area;

(xii) Assist the PMO to review and comment on the analyses of the midterm socio-economic
survey data collected and reported for the Social Impact Assessment;

(xiii) Assist the PMO to use the PPTA Socioeconomic Survey to compile a benchmark
database incorporating information on economic and social conditions including public
health parameters in the project area to provide a comprehensive socio-economic profile
of the beneficiary communities; and

(xiv) Assist the PMO to assess the social and economic impact of the project, through
information collection and personal interviews.

3. Safeguards and Gender

(i) Assess all potential land acquisition impacts from the interventions foreseen under
upgrading and modernization contracts;

(ii) Support the Specialists to incorporate social and gender dimensions in preparing the
relevant training programs project staff and support organizations; and

(iii) Develop and promote a gender agenda that among other things promotes women’s
involvement in WCAs, and assist with planning and delivering livelihood programs aimed
at women and disadvantaged persons within the project area.
52 Appendix 1

B. Engineering, Procurement, Construction Supervision

1. Procurement and Contract Management

(i) Familiarize the project staff with procurement requirements of the project, including
specific ADB guidelines and procedures on procurement and use of consulting services.
Develop contracting capacity at the MWR, paying particular attention to on-the-job
transfer of knowledge, as well as organizational and management considerations;

(ii) Based on the procurement requirements of the project components, assist the PMO to
prepare detailed procurement plans and packages, and determine realistic time-bound
schedules for procurement, including parallel and sequential steps for completing
procurement activities from initial planning to delivery of goods and services;

(iii) Provide advice and assistance to PMO and MWR staff in organizing and managing
procurement activities, and review the appropriateness of various procurement
packages with respect to their methods of procurement, to ensure that procurement can
be undertaken in the most efficient and cost-effective manner in accordance with ADB
guidelines applicable to the project;

(iv) Provide guidance and assistance to PMO and MWR staff in the preparation of bidding
documents for procurement of goods and civil works, which may generally include: (a)
invitation to bid; (b) instructions to bidders; (c) form of bid; (d) form of contract; (e)
conditions of contract including both special and general; (f) specifications and drawings;
(g) list of goods or bill of quantities; (h) delivery time or schedule of completion; and (i) all
of the necessary appendices and formats;

(v) Provide advice and guidance to PMO and MWR in connection with the application of
procedures and requirements related to prequalification, bid opening, evaluation and
award of contracts, contract registration in authorized agencies, custom clearance of the
goods and they delivery to the final recipients. Particular attention should be paid to time
allowance for preparation of bids, bid opening procedures, circumstances related to
clarifications or alterations of bids, confidentiality, examination of bids, evaluation and
comparison of bids, and applicable domestic preferences;

(vi) Assist PMO staff with interpretation of various contract provisions and settlement of
disputes with the contractors as necessary;

(vii) Assist the PMO staff to establish a procurement monitoring system, to allow collection
and recording of procurement data for: (a) timely information flow, submission and
approval of terms of reference, shortlists, and other requirements; (b) tracking all
necessary and critical procurement actions and activities; (c) prompt reporting of
contract award information by the EA to ADB; (d) preparation of quarterly reports to
ADB; and (e) revision of timing of procurement actions including advertising, bidding,
contract award, and completion time for individual contracts. This procurement
monitoring system will be maintained and kept up-to-date by the PMO. The PMO Staff
will be trained by the Consultant to use this system;

(viii) In relation to contracts, develop in coordination with PMO and MWR staff administrative
and technical procedures for review of contract performance as an integral part of the
approval process for justifying contract payments; and
 Appendix 1 53

(ix) Assist PMO staff to develop a contract management system to ensure that records and
data are stored systematically and cross-referenced with the financial accounts of the
project. The system must allow safekeeping of procurement documentation for easy
retrieval and referencing, with adequate paper trails in accordance with generally
accepted standards. The contract management system must also be designed to
support loan disbursement, reporting, and accounting requirements of the project.
Familiarize the PMO staff with the documentation requirements of loan disbursement
applications, as well as the necessary records that must be kept by the project to
support these loan disbursement applications.

2. Survey Engineering (Survey Engineer)

(i) Assist the PMO and PIO in review the scope of the surveys and investigations (S&I)
works developed by the Turnkey Contractor and make any improvements for due
completion of the tasks; and

(ii) Assist the PMO and PIO to coordinate and supervise the S&I as described by the
turnkey contractors. The S&I works may include but not limited to: topographical and
geodesic investigations, seismic stability investigations, hydro-geological, geological
engineering surveys and investigations (geotechnical surveys), soil and water
investigations, and conditional survey.

3. Rehabilitation of the ABMK Main System

9. The Consultant’s team will assist the PMO and PIO staff to review the feasibility study
and defects acts for the ABMK. For scheduling and execution of works consideration will be
given to the operational expedient that the ABMK system operates 12 months a year without
interruption. Therefore, works should be implemented while pump units are under operation.
Hence due to continuous water supplies to canals and structures, structures will be under water
permanently and works arranged to be implemented with this condition. The Consultant’s team
will assist PMO and PIO staff to prepare, bidding documents, technical specifications, bills of
quantities, bid drawings and conditions of contract, required for the completion of the works. The
design team will be based in Bukhara and coordinate all design work with PMO in Tashkent. The
Consultant’s will assist the PMO/PIO in the supervision of the contractor for ABMK works,
included will be review and approval of structure designs prepared by a design and construct
contractor.

4. Modernization and Rehabilitation of Pumping Stations

(i) Assist PMO and PIO to guide and supervise contractors to undertake all required S&I at
1:1000 scale; verify the PPTA Consultant’s assessment survey for all hydraulic
structures, mechanical, pump/motor, electrical equipment and ancillary systems at each
pump station;

(ii) Based on the results of S&I, and the feasibility study findings, assist the PMO to ensure
that the contractors make detailed designs for upgrading and modernization of the pump
stations that will: a) improve pumping efficiency; b) ensure a more reliable water supply;
and c) reduce maintenance needs;
54 Appendix 1

(iii) Ensure that contracts include the design for modernization and upgrading pump stations
replacement of pump sets and all auxiliary equipment, including: a) hydraulic and
lubricating systems, technical water systems, and electrical systems; b) provision of flow
metering equipment; c) replacement of discharge pipelines; and d) improvements to
buildings and equipment to comply with Clean Development Mechanism (CDM)
recommendations (these recommendations are detailed in the Climate Change
Mitigation CDM Report contained in the PPTA Final Report);

(iv) Ensure that the detail design for rehabilitation works includes: a) replacement of surge
valves on each pipeline; and b) a structural survey and stress analysis of discharge
pipelines to ensure adequate surge and water hammer protection;

(v) Assist the PMO and PIO to prepare tender design; technical specifications for
equipment; drawings, bill of quantities and bidding documents for supply, delivery and
installation of equipment and required civil works for rehabilitation of the main pumping
stations; and

(vi) Assist the PMO and PIO in evaluation of bids and award of contracts, undertake
contracts supervision.

5. Construction Supervision and Contract Management

10. The Consultant will assist the PIO located in Bukhara in construction management and
supervision of rehabilitation works. The Chief Resident Engineer shall be designated as “The
Engineer”2 during the implementation of the construction contracts, including the turnkey
contracts, and will be responsible for inspection and supervision of the construction works,
installation of equipment and the testing of construction materials, in order to ensure that the
works are implemented and goods supplied in accordance with the designs, specifications and
terms and conditions of the relevant civil works and supply contracts. The Engineer would
ensure that procurement of goods, services, and civil works contracts are in accordance with
the Asian Development Bank’s procedures and guidelines.

6. Support to O&M, Water Resources Management, Agricultural Extension

11. The consultant will advise PMO to support improvements in water resources
management within the system through: (i) development and installation of a decision support
system (comprising a SCADA system and an integrated water management model) to provide
operational staff with access to real-time information and the ability to manage flows throughout
the system; (ii) strengthening of the management organization through capacity building,
training and introduction of improved O&M procedures; (iii) strengthening of WCAs to properly
carry out on-farm and inter-farm water management and O&M; and (iv) provision of essential
maintenance equipment. These general tasks will be carried out in the context of climate
change adaptation and measures undertaken will include adaptation to climate change. These
tasks will include the support to development a plan for climate change adaptive water
management and agricultural extension with active participation of WCAs and farmers, including
the poor and vulnerable.

2
The term “The Engineer” is used in the sense as it is defined in the standard Asian Development Bank/FIDIC construction
contracts.
 Appendix 1 55

C. Institutional Support, Capacity Building and Training

1. Strengthening WCAs Capacities

12. The Consultant will work as a team with PIO staff and have the following responsibilities:

(i) Support the strengthening and development of WCAs within the pilot areas and provide
focused training to their representatives. All training sessions and interactions with
WCAs by the Consultant and PMO/PIO staff will emphasize awareness for climate
change adaptation;

(ii) Organize the training and capacity building to broaden the knowledge base and provide
skills training to prepare farmer representatives for their jobs in the WCA. Target groups
to be covered by training would include staff from the WCAs within the pilot areas and an
additional 20 of the 124 for the entire ABIS project area. Training (based on a training
needs assessment of the target WCAs) may include business planning, budgeting,
bookkeeping, financial administration, operation and maintenance, and agriculture.
Advice on organization and management, conflict resolution, and the legislative
framework could be also provided;

(iii) Assist WCAs, where necessary, in establishing financial and water balance accounting;

(iv) Review the existing institutional and management arrangements for O&M, and assess
the appropriateness and relevance of existing laws for the formation of WCAs (the
Consultant is requested to review the Draft WCA Law prepared by the PPTA consultants
for appropriateness);

(v) Prepare and test guidelines for WCA development and comprehensive training
programs and training materials for WCA development. In this respect particular
attention will be given to: Instrumental installation and maintenance, management of
siltation, optimized crop calendar and agricultural practices, quantitative water
management with minimal water wastage, salinity management, introduction to the full
range of water conservation technologies, progressive transition to more thermo-tolerant
and halo-tolerant cultivars, and access to micro-finance for more efficient water usage.
The WCA guidelines will uphold the principles of Integrated Water Resources
Management (IWRM), with robust attention to the provision of adequate technical
support, women’s involvement, and climate change adaptation. Both draft and final WCA
guidelines will be prepared by the consultant as an iterative stakeholder-consultative
process, with appropriate stakeholder training, as required;

(vi) Study water charge and fee collection systems in the project area; identify problems and
analyse underlying causes; assist PMO and PIO to develop an appropriate water charge
system and fee collection mechanisms, and organize workshops to present the plans to
farmer beneficiaries and build up consensus; develop step-by-step procedures for
negotiating and contracting with individual farmers and cost recovery of their on-farm
rehabilitation; and

(vii) Identify performance indicators for O&M activities and recommend mechanisms to
monitor O&M activities with particular emphasis on involvement of project beneficiaries.
56 Appendix 1

2. Inter- and On-farm Canal Development for Climate Change

13. Measures for climate change adaptation have been identified during the PPTA. The
Consultant is required to review these measures and modify them to more closely meet the
requirements within the pilot demonstration areas and, in general, the entire project. These
measures might include capacity building, water management planning, O&M of the on-farm
system, crop husbandry, and infrastructure rehabilitation. The Consultant will assist PMO and
PIO with the following:

14. Improvements and Rehabilitation of Inter-farm Canal System

(within the Pilot Demonstration Areas). To carry out demonstrations related to climate
change within the existing deteriorated canal supply network at the inter- and on-farm levels
requires rehabilitation. The PPTA Consultant identified general improvements required, but the
Consultant must conduct a survey of the area and identify specific interventions required. These
interventions / rehabilitation efforts must be designed to be climate resistant.

15. While drainage is vital to the sustainability of an irrigation system, drainage works under
this project may be considered optional, as other projects and Government drainage programs
are ongoing and planned for the ABIS. The Consultant will be required to interact with the PMO,
PIO, BISA, ISAs, and local government units to decide the extent of works that may be carried
out.

16. The Consultant in collaboration with PMO and PIO staff will perform and assist with the
following activities: (i) supervise and coordinate the field surveys and investigations on the inter-
farm irrigation and drainage system, including inter-farm collectors and other portions and
facilities of the drainage network; (ii) review the original design and existing status of the
irrigation and drainage system, and performance monitoring of the systems; calculate irrigation
and drainage requirements and prepare alternative designs to ensure climate change resilience
with bill of quantities and costs for reconstruction/improvement of irrigation and drainage
facilities; (iii) assist PIO staff to select the most cost-effective design with the collaboration of the
staff, local administration agencies (e.g. WCAs, ISAs, Makhallas) and the farmer beneficiaries;
(iv) assist to prepare detailed designs for the selected alternatives, prepare tender documents,
evaluate proposals received, assist in award of contracts, and supervise and manage
construction works; and (v) provide recommendations on the organization and sequencing of
civil works for the rehabilitation/improvement of the irrigation and drainage system.

17. On-farm Irrigation and Drainage System. The Consultant will assist PIO staff with the
following: (i) design and plan improvements to the on-farm irrigation and drainage systems; (ii)
monitor and supervise the field surveys and investigations works; (iii) review the original design
of the irrigation system, and performance monitoring of the system; calculate irrigation water
requirements for the cropping pattern, and prepare detailed designs which are climate change
resilient for reconstruction/improvement of irrigation and drainage facilities, with bills of
quantities and costs; (iv) discuss the design and associated costs with the farmers of the area,
explain to them the pros and cons of the alternatives and help them in selecting the designs
most appropriate for their conditions; (v) prepare detailed designs for the selected alternatives,
prepare tender documents, evaluate proposals received, assist in award of contracts, and
supervise and manage construction works; and (vi) prepare a schedule for O&M of the irrigation
facilities reconstructed/improved under the project and prepare an operational manual.
 Appendix 1 57

3. MWR/BISA’s Technical Support for WCAs, The Development of Effective

Agricultural Extension Services

18. The consultant will investigate the existing MWR/BISA technical support services with
particular attention to information gaps, data availability, interaction with WCAs, the availability
of instrumental and material support, and the role (if any) for NGO assistance.
Recommendations will be prepared for more advanced technical support, particularly to meet
the multiple challenges posed by climate change. A dedicated hydro-meteorological upgrade
will certainly be required.

19. To sustain and disseminate all training and interventions demonstrated, will require
capable Agricultural Extension Service personnel. To accomplish this will require the Consultant
to aid PIO staff to establish and support an ABIS agricultural extension staff.

4. Climate Change Mitigation

20. The Carbon Credit Consultant will assist in the integration of the monitoring, reporting
and verification (MRV) of greenhouse gas (GHG) in the ABIS pumps' operations and
management system. The consultant will also prepare the documentation required for climate
finance including the validation and registration of carbon credits under the Clean Development
Mechanism (CDM) or other carbon finance instrument.

D. Audit of Project Accounts (Separate Consulting Services from A-

C above)

21. The auditors are to be recruited in a manner acceptable to ADB. Independent auditors
acceptable to ADB will audit yearly separate records and accounts for goods, works, and
services to be financed out of the loan proceeds following sound accounting principles, all of
which will be maintained by the PMO. Within 6 months of the close of the financial year, certified
copies of the audit report, together with the auditor’s opining, will be submitted to the
Government and ADB in English. The audit reports will include a management letter and a
separate opinion on the use of the imprest accounts and statement of expenditures procedure.

IV. REPORTING REQUIREMENTS

22. The Consultant should submit to the MWR/PMO and ADB inception, quarterly project
progress, and final project completion reports in accordance with the requirements set out
below. All reports should be submitted in English with a Russian translation of six copies of
each.

23. Inception report should include results of analysis of current situation conducted in
accordance with each project output.

24. The project progress reports should be presented on a quarterly basis. Reporting will
include an annual quantitative assessment of progress in water conservation, together with a
qualitative assessment of the appreciation of sustainability and the imperative for a substantive
long-term reduction in usage of irrigation water. The reporting will also include a biennial update
of climate change impacts upon the crop water demand and irrigation water availability.

25. The final report must be submitted at the end of the last year of the project and should
clearly reflect the work completed in all aspects, and the recommendations of the Consultant. It
58 Appendix 1

will include an update/review of the water conservation target for 2050, and the future
institutional and practical requirements to meet this target.

26. All reports should also include assessment of the work done, recommendations on
carrying-out of future activities as well as recommendations and proposals on timely and duly
project implementation.
 Appendix 2 59

DESIGN AND MONITORING FRAMEWORK

Performance Targets and Data Sources and Assumptions and

Design Summary Indicators with Baselines Reporting Mechanisms Risks
Impact Risk
Sustained economic and Average farm incomes of Province and district Crop sale prices at the
social welfare in SUM91.6 million in 2012 statistics farm level decline
communities dependent maintained in 2025a significantly.
upon the ABIS

Outcome Assumptions
Sustainable and reliable ABIS main irrigated area of Province and district Government support for
water supply in the ABIS 250,000 ha in 2012 statistics agricultural production
command area maintained in 2020. and drainage
improvement in target
Number of drinking water Province and district areas continues.
users, 725,000 in 2011, statistics The bilateral O&M
maintained in 2020. agreement between
Uzbekistan and
Turkmenistan is
maintained.

Approval of JICA
financing and
implementation of the
JICA’s financed part of
the project is timely.

Risk
Climate change has
serious adverse effects
in project area.
Outputs Assumptions
1. One new pump station 3.850 km3 of pumped water M&E and PMO reports Government financing is
built, and four existing ensured by 2020, compared allocated and disbursed
ones modernized and with 4.080 km3 average on time.
rehabilitated during 2006–2011
M&E and PMO reports JICA’s financed
Energy efficiency (1m3/kW) activities are
increased from 72% in 2012 implemented on time.
to 87% in 2020
Annual GHG emissions M&E and PMO reports
reduced by 23% from 0.76
million tCO2e in 2011 to 0.58
million tCO2e in 2020
Carbon credits traded and/or GHG MRV reports
commercialized for Climate emission reduction Risk
$178,000 a year and used purchase agreement(s) and Carbon credit market
for ABIS O&M before 2020 MWR budget allocation prices decline.
reports

Assumption
2. Conveyance efficiency Water conveyance efficiency M&E and PMO reports Government financing is
in the ABIS main canal increased from 85% in 2012 allocated and disbursed
increased to 90% by 2020 on time.
60 Appendix 2

Performance Targets and Data Sources and Assumptions and

Design Summary Indicators with Baselines Reporting Mechanisms Risks
Assumption
3. The capacity of BISA, Demonstrated climate M&E and PMO reports Government financing is
ISAs, WCAs, and change resilient agricultural allocated and disbursed
farmers to adapt to practices and irrigation on time.
climate change practices in 3 pilot OFIS
increased areas adopted by 50% of Risks
farmers along each OFIS by Local governments have
2019 low commitment to the
relaxation of cotton and
Climate change adaptive M&E and PMO reports wheat production quotas
water management and for selected farms.
agricultural extension plan
covering up to 2040 The BISA lacks
operated by BISA, ISAs, and commitment to adopting
WCAs by Q1 2018 the water management
plan.
Women make up an BISA, M&E, and PMO
average of 20% of WCA reports
secretariats in selected
OFISs by 2020, compared
with 0% in 2012.

4. Project and ABIS Project management unit in M&E and PMO reports Assumptions
managed efficiently Tashkent and project Decision making for
implementation office project implementation is
established by Q3 2013. timely.

M&E system established by M&E and PMO reports JICA’s financed activities
Q4 2013. are implemented on
time.
Water- and energy-efficient ABISA report
ABIS operation and Risk
management plan ABISA has a low
operational by Q1 2016 commitment to adopting
the ABIS operation and
S in the
management plan.
Activities with Milestones Inputs
1. One new pump station built, and four existing ones modernized and
rehabilitated ADB loans: $220 million
1.1 Complete tender document for turnkey contract of new Khamza pump OCR loan: $174
station by Q2 in 2014 million
1.2 Implement contract for new Khamza pump station by Q1 in 2015 ADF loan: $46 million equivalent
1.3 Replace Khamza 1 and its auxiliary pump stations with new Khamza Japan International Cooperation
pump station by Q4 2019 Agency (loan): $100.0 million
1.4 Complete tender document for turnkey contract of Khamza 2 pump equivalent
station by Q2 in 2014 Government: $60.0 million
1.5 Complete tender document for turnkey contract of Kuyu-Mazar pump
station by Q2 in 2014
1.6 Complete tender documents for turnkey contract of Kizil-Tepa pump
station by Q2 in 2014
1.7 Complete tender documents for turnkey contract of Kizil-Tepa auxiliary
pump station by Q2 in 2014
1.8 Modernize and rehabilitate Khamza 2, Kuyu-Mazar, Kizil-Tepa, and Kizil-
Tepa auxiliary pump stations by Q4 in 2019
1.9 Submit letters of intent for CDM project development by Q4 2014
1.10 Complete carbon project documentation by Q4 2014
1.11 Complete carbon project validation and/or submission for CDM
registration by Q4 2015
1.12 Identify potential carbon credit buyers by Q4 2017

2. Conveyance efficiency in the ABIS main canal increased

 Appendix 2 61
Activities with Milestones Inputs
2.1 Complete detailed design and tender document for packaged single
contract of regulatory and/or diversion structures M&R by Q3 in 2016
2.2 Implement contract by Q1 in 2017
2.3 Modernize and rehabilitate 22 regulatory and/or diversion structures by
Q3 2019

3. The capacity of BISA, ISAs, WCAs, and farmers to adapt to climate

change increased
3.1 Complete detailed design and tender document for contract of the first
IFIS and OFIS M&R by Q1 in 2015
3.2 Start demonstration of climate change adaptation in the first farm by Q4 in
2015
3.3 Identify two other pilot areas and demonstration farms by Q3 in 2015
3.4 Complete detailed designs and tender documents for contracts of the
second and the third IFISs and OFISs M&Rs by Q1 in 2016
3.5 Start demonstrations of climate change adaptation in the second and the
third farms by Q4 in 2016
3.6 Complete water balance assessment by remote sensing and
measurements by Q2 in 2017.
3.7 Develop climate change adaptive water management and agriculture
extension plan by Q4 in 2017

4. Project and ABIS managed efficiently

4.1 Establish PMO in Tashkent and PIO in ABISA by Q4 2013
4.2 Field implementation consultant to support PMO and PIO by Q2 2014
4.3 Develop M&E system and contracting M&E by Q3 2014
4.4 Oversee and monitor safeguards activities (2014–2020)
4.5 Strengthen project management capacity (2014–2020)
4.6 Develop water- and energy-efficient ABIS operation and management
plan by Q4 in 2015
ABIS = Amu Bukhara Irrigation System, ABISA = Amu Bukhara Irrigation System Authority, ADB = Asian Development
Bank, ADF = Asian Development Fund, BISA = basin irrigation system administration, CDM = Clean Development
Mechanism, GHG = greenhouse gas, ha = hectare, IFIS = inter-farm irrigation system, ISA = irrigation system
administration, JICA = Japan International Cooperation Agency, kW = kilowatt, m3 = cubic meter, MWR = Ministry of
Water Resources, M&E = monitoring and evaluation, M&R = modernization and rehabilitation, MRV = monitoring-
reporting-verification, OCR = ordinary capital resources, OFIS = on-farm irrigation system, O&M = operation and
maintenance, PIO = project implementation office, PMO = project management office, Q = quarter, tCO2e = tons of
carbon dioxide equivalent, WCA = water consumers’ association, tCO2e = tons of carbon dioxide equivalent.
a Average farm income is based on 67 ha (the average farm size).