Professional Documents
Culture Documents
013 Pam
013 Pam
1. 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.
2. The executing agencies are wholly responsible for the implementation of ADB financed projects, as
agreed jointly between the Government and ADB, and in accordance with Government and ADB’s
policies and procedures. ADB staff is responsible to support implementation including compliance by
executing agencies of their obligations and responsibilities for project implementation in accordance with
ADB’s policies and procedures.
3. At Loan Negotiations the Government and ADB shall agree to the PAM and ensure consistency with the
Loan Agreements for ADF resources. Such agreements 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.
4. 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.
Abbreviations
1. The government of Nepal declared a national power crisis in 2008. The country has been
suffering an acute power shortage, particularly in the winter dry season (November-April).
Kathmandu has experienced blackouts of up to 14-18 hours every day in the dry season. Annual
peak demand has been growing by 10% and the power deficit has been expanding rapidly.
Because of constant power shortage, the customers have increasingly relied on diesel-based
self power generators, which are expensive and polluting. The cost of diesel has doubled over
since 2008.1 Tanahu is part the solution to tackle energy security, especially in Katmandu. The
country’s overall energy strategy includes projects like Tanahu (which focuses mainly on urban
areas), but also special schemes targeting energy security in rural areas. In the medium term,
Nepal is also expected to develop energy export projects. Tanahu will be a medium-sized
hydropower plant (140 MW) with water storage to make power supply available year-round and
meet the country’s peak demand in particular for the dry season. To promote the project, the
Tanahu Hydropower Limited (THL) was established. The project will also support transmission
facilities, some rural electrification, reforms and the restructuring of the national utility – Nepal
Electricity Agency (NEA).
2. The impact will be expanded access to clean and sustainable energy in Nepal. Its
outcome will be increased efficiency and reliable supply of hydropower energy.
3. The outputs will be (i) a 140 MW hydropower plant and related transmission system—
37 km, 220 kilovolts (kV)—made operational; (ii) rural electrification increased (covering 17,636
households);2 (iii) community development program in the project area implemented;3 (iv) NEA
restructured; (v) other sector reforms undertaken; and (vi) an equity sales scheme for
hydropower development initiated. The prospective sale of an equity stake in THL will be
subject to market conditions and the execution of transactions. These outputs will be supported
by the project coupled with a capacity development TA.4
1
While the diesel import remained at around 300 million liters during 2001 to 2007, it was increased to over 600
million liters in 2010. The present diesel price was also increased from Rs.53/liter to Rs. 97/liter.
2
Includes 17 VDCs of Majhkot, Kotdarbar, Rishing Ranipokhari, Sabhung Bhagawatipur, Kahu Shivapur, Baidi,
Bhirkot, Chhipchhipe, Kota, Ramjakot, Chhimkeshwari, Deurali, Dharampani, Gajarkot, Surdhara Thiring, Kihun,
and, Arunodaya.
3
Includes 8 VDCs of Chhang, Majhkot, Bhimad, Jamune Bhanjyang, Kotdarbar, Rishing Ranipokhari, Sabhung
Bhagawatipur, and Kahu Shivapur, and 1 municipality of Byas.
4
The last three outputs will mainly be supported by the TA.
2
Land Acquisition
TP PQ TF CA CW Completion C
Headworks
EOI RFP CA M
Project Supervision Consultant
EOI M
Social Safeguards Monitoring Consult.
EOI M
EMP Monitoring Consultants
TP TF CA CW Completion C
Part B. T/L and RE
Reviews
C = Completion/Commissioning; CA = Contract Award; CW = Commencement of Work; EOI = Expression of Interest; RFP = Request For Proposals; M = Mobilization; PQ = Prequalification; TF = Tender Float; TP: Tender Preparation
Sources: Nepal Electricity Authority (NEA), Tanahu Hydropower Limited (THL), and PPTA Consultants
The Bidding Schedule for (i) Headworks and (ii) Waterway, Power House and Equipments is in Appendix 2. The Construction
schedule is in Appendix 3.
C. Major Packaging of the Project
A Procurement
1 1
Cost Source 2
No. Scope of Work Nature of Procurement Implementation Period
$ mil $ mil
1 Preparatory works: Site Development (THL)
Jun 2012- Aug 2014
Access roads, permanent bridges, construction power Per government guidelines. Design
9 GoN Construction from Nov
supply, campus and office for THL and Consultants. by GoN.
2012
2 Hydropower (1): Headworks (THL)
Per ADB's guidelines; ICB; Works
Joint
contract based on BOQ including
A concrete gravity dam or roller compact concrete dam cofinancing: Aug 2013 - Jun 2020
prequalification; bidding documents
subject to proposals of bidders, of 140m in height, 175m 127 ADB: 49; Construction from Jan
preparation by PPTA Consultants,
in crest length and approximately 800,000m3 in volume. ADFD: 25; 2015
finalization by Supervision
EIB: 53
Consultants.
3 Hydropower (2): Waterway, Power house and related Equipment (THL)
Per JICA's guidelines. Design+build
a) underground power house of 27 m wide × 46 m high
Parallel contract inlcuding prequalification. Sep 2013 - Oct 2020
× 97 m long; b) waterway of approximately 1,500m in
162 cofinancing: Bidding documents preparation by Construction from May
length; c) 2*70 MW turbine and generator units; d)
JICA PPTA Consultants, finalization by 2015
spillway and sediment flushing equipments
Supervision Consultant.
4 Transmission line and Rural Electrification (NEA)
a) transmission line of 220 kV of 37 km long; b) the new
Per ADB's guidelines; ICB; Turnkey
220kV Bharatpur substation; c) two new 33/11 kV Jan 2015 - Apr 2020
contract without prequalification;
substations; d) 33kV distribution lines 48 km long, 11kV 23 ADB Construction from Jan
Bidding documents preparation and
distribution lines 344 km long and 400 V distribution 2016
finalization by NEA
lines 450 km long.
Per ADB's guidelines; NCB; Works
contract based on BOQ without Feb 2013 - Dec 2013
5 Excavation (THL) 1 ADB prequalification; Bidding documents Construction from Jul
preparation and finalization by 2013
PPTA Consultants.
5
6
B Consulting Services (THL)
1 1
Cost Source 2
No. Scope of Work Nature of Procurement Implementation Period
$ mil $ mil
Dec 2012 - Oct 2020
1 Project Supervision 17.9 ADB QCBS 90:10 Mobilization from Aug
2013
Jun 2013- Jun 2020
2 Community Development Strategy 3.3 ADB QCBS 90:10 (from NGO/firm) Mobilization from Mar
2014
Feb 2013 - Jun 2014
3 Rock Mechanical Test 1.9 ADB QCBS 90:10 Mobilization from Sep
2013
Social and Environmental Safeguard Mitigation and
4 2.9 ADB Individuals (from NGO/firm) Apr 2013 - Dec 2020
Monitoring
5 Panel of Experts for Monitoring and Evaluation 1.0 ADB Individuals (from NGO/firm) Apr 2013 - Dec 2020
C Others
Cost* Funds* Implementation
No. Scope of Work Nature of Procurement
$ mil $ mil Period**
ADB: 26 Disbursement on reimbursement
(for THL); method after verification by
1 Land Acquisition and Resettlement 30 Jun 2013 - Mar 2014
GON: 4 monitoring consultant from
(for NEA) NGO/civil society/firm
Environmental safeguard mitigation
2 Environment Mitigation Plan 21 GON and monitoring consultant from Jun 2013 - Oct 2020
NGO/civil society/firm
3 Administration Costs 17 GON
4 Taxes and Duties 18 GON
5 Contingencies 58 ADB: 19; JICA: 22; EIB: 10; ADFD: 5;
ADB: 4.8; JICA: 0.04; EIB: 7.3; GoN (for ADFD):
6 Financing Charges During Implementation 14
2.1
1
Rounded off.
2
Starting from prequalification/bidding documents/EOI floating to project completion. Bidding schedule for Hydropower (1) and (2) is in Appendix 2, the overall construction
schedule is in Appendix 3.
ADB = Asian Development Bank, ADFD = Abu Dhabi Fund for Development, BOQ = bill and quantity, EIB = European Investment Bank, GoN = government of
Nepal, ICB = international JICA = Japan International Cooperation agency, NGO = non governmental organization, PPTA = project preparatory technical
assistance, QCBS = quality- and cost-base selection,.
7
Nepal Electricity Authority (NEA) Responsible for the execution of the Transmission Line
2. component and Rural Electrification component. The
Project Implementation Units (PIU) established in NEA
will be responsible for the day-to-day implementation of
the Transmission Line and Rural Electrification
components.
Kanhaiya Manandhar
Director of Transmission Line Division
Telephone: +977 9851029848
Email: dep220kv@gmail.com
Gagan Manandhar
Contact Person of Tanahu-Bharatpur 220KV D/C TL
8
ADB
Division Director Yongping Zhai
Director, Energy Division
Telephone No.: +63 26325976
Email: yzhai@adb.org
5. The THL (Organization Chart in Appendix 4 and Staff Schedule in Appendix 5) will be
the executing agency (EA) of the Tanahu hydropower component, and NEA (Organization Chart
in Appendix 6) will be the EA of transmission and rural electrification components. For the latter
components, the Project Implementation Units (PIUs) will be established in the Department of
Grid Development and Department of Distribution Consumer Services (West) within NEA. The
THL and NEA’s PIUs have the detailed responsibilities as (i) overall coordination, overall project
management and monitoring (ii) annual budget preparation and monitoring utilization of loan
proceeds; (iii) progress reporting, including reports on cost management and project impact;
and (iv) ensuring compliance with loan covenants.
Executing Agencies
EA Responsibility
THL Hydropower plant
NEA Transmission and rural electrification
6. On behalf of THL, ADB will select a specialist firm with extensive experience and track
record with the supervision and management of similar hydropower projects, including the civil
works and actual plant erection and commissioning, in consultation with THL. The firm in
question will act as an independent firm who will work for THL, but also report to the co-
financiers and THL and ADB. The work will combine supervision with technical support to THL,
particularly on reservoir sedimentation risk. This is critical to the success of the project, just before
and after the plant enters its commercial or operational phase. This service will be provided the
same supervision consultant company. This ensures continuity, and detailed knowledge of the
exact on-site conditions.
7. Another important task is the management of land acquisition and resettlement. NGOs will
9
be recruited to work alongside the supervision consultants to help the government and THL with
this work. To help promote social and environmental mitigation programs, some individual
consultants will also be recruited. Another NGO or consulting firm will help the government and
THL implement the community development strategy (CDS).
Ministry of Energy
Government of Nepal
2. Individual/NGO
(safeguard monitoring
/mitigation)
3. Anchor NGO/firm
(community development)
Panel of experts 3.
8. THL was established as a special purpose vehicle for the project. While it is a subsidiary
of NEA, THL has been incorporated as a separate legal entity under the Companies Act of
Nepal and registered as a legal entity distinct from NEA. In the loan and projects agreements,
ADB, the government, NEA and THL have agreed on a number of corporate governance
reforms to promote the independence and autonomy of THL. To ensure management capability,
the supervision consulting firm, will help THL staff with overall project management. It will train
staff on operational and commercial matters. Comprehensive corporate policies at THL for
financial management, procurement, human resources management, safeguards and corporate
governance codes will be developed through a CDTA attached to the project. The government,
NEA, and THL will ensure fairness and transparency and put in place the right control risks for
the project.
9. One special feature of the project is to explore opportunities for private sector
participation in the project. The Government and ADB will discuss either a minority or majority
stake in the company. ADB might even assist the process through a transaction advisory
service.
10
10. Project cost. The total project cost is estimated at $505 million including taxes, duties,
interest charges during implementation and contingencies.5 The investment plan is as below:
11. Cofinancing. ADB proposed to finance $150 million from ADF resources.6 JICA is
expected to provide concessional loan, amounting to ¥15,137 million (equivalent to $184 million
at the prevailing exchange rate) at the ―Minimal Interest Rate Initiative for low-income LDCs
(MIRAI Initiative).7 The European Investment Bank (EIB) is expected to provide loan of $70
million and the Abu Dhabi Fund for Development (ADFD) is expected to provide $30 million.8
The remaining cost will be funded by the counterpart fund from the government. While JICA is
expected to finance the hydropower plant’s equipment and powerhouse in parallel, ADFD and
EIB are expected to jointly finance the hydropower plant’s headwork with ADB. 9 The
government will make available all counterpart funds required for the timely and effective
completion of the project, either through budgetary allocations or through other arrangements
acceptable to ADB. For effective coordination among the cofinanciers, ADB will sign a
procedural agreement with JICA and similar arrangements with ADFD and EIB for collaborative
cofinancing to ensure mutual cooperation, coordination, and information exchange after each
cofinancier approves the project. The financing plan is as shown below:
5
THL will require $470 million for the hydropower plant component and NEA will do $35 million for transmission and
rural electrification components.
6
The resources compromises (i) ADF loan of $ 120 million, and (ii) hard term ADF loan of $ 30 million. Under the
ADB guidelines, the hard term ADF loan will meet the criteria for high revenue earning projects that can earn
foreign currency revenue and service foreign currency debt.
7
Interest rate of 0.01% per year; repayment period of 40 years including grace period of 10 years; and untied
conditions for procurement.
8
For loan from EIB, the interest rate is tentatively assumed as 3.08% with repayment period of 25 years including
grace period of 5 years. For loan from ADFD, the interest rate is tentatively assumed as 2.0% with repayment
period of 20 years including grace period of 5 years. The final terms are subject to agreement by EIB and ADFD
each.
9
The joint cofinancing from ADFD and EIB will not be administered by ADB. The documents will be signed as
quickly as possible, but in any event, by no later than the issue of any final bidding documents in respect of any
contract to be cofinanced by ADB under the project. THL’s debt will be sourced from ADB and JICA finance, and its
equity will be from NEA where the funding sources will be ADB, ADFD, EIB and the government.
11
Financing Plan
Amount Share of
Source ($ million) Total (%)
Asian Development Bank (ADB) 150 30
Asian Development Fund (regular term loan) 120 24
Asian Development Fund (hard-term loan) 30 6
Abu Dhabi Fund for Development (ADFD) 30 6
European Investment Bank (EIB) 70 14
Japan International Cooperation Agency (JICA) 184 36
Government of Nepal (GON)/Nepal Electricity Authority (NEA) 71 14
Total 505 100
Source: Asian Development Bank estimates.
12. Financing items. Each of the major financing items and their major financing sources
are as follows:
13. Relending arrangements. The government and NEA will enter into subsidiary
agreements pursuant to which it will relend the loan proceeds of each cofinancier to NEA. NEA
and THL will enter into subsidiary financing agreements pursuant to which NEA will onlend part
of the loan proceeds allocated to the hydropower plant and the community program to THL and
contribute the remainder to THL’s equity in accordance with the debt:equity arrangements set
out in the table below. The terms for relending and onlending shall follow the provisions set out
in Section 3.01(c) of the loan agreements between the government and ADB. THL will claim
loan proceeds through the government to ADB and JICA and inform NEA of it. For NEA’s
transmission and rural electrification components, the loan proceeds of ADB will be claimed and
utilized by NEA.
12
14. Land acquisition and resettlement. The costs of land acquisition and resettlement for
THL’s hydropower plant reach $26.7 million and for NEA’s transmission and rural electrification
is $3.3 million, totaling $30 million for both. For THL, the costs mainly constitute compensation
for loss of assets, fees for registration and disposal site lease, resettlement assistance, income
restoration, and monitoring and evaluation.10 Only THL’s expenditures for land acquisition and
resettlement costs are eligible for ADB financing through reimbursement, if appropriate
procedures are followed in executing them (i.e. to ADB satisfaction). To assess their eligibility,
due diligence was undertaken to confirm (i) their expected productive value, (ii) the suitability of
land market conditions, (iii) the adequacy of administrative arrangements and fund channeling,
(iv) the risk profile of the transaction, and (v) the soundness of the monitoring and evaluation
arrangements. ADB is so far satisfied with the quality of the due diligence and the process
followed.
15. ADB will only finance THL’s land acquisition and resettlement costs that are directly
related to the project and that are incurred in accordance with the social safeguards
documentation developed for the project and cleared by ADB. The land acquisition will create
direct and indirect economic benefits through additional power generation, local employment
opportunities, and community development. Because of the country’s acute power shortage, the
project’s power supply will widely impact the country’s economic growth. The project also
includes the community development, rural electrification, and social development programs
with special attention to vulnerable persons, contributing to poverty reduction in the project area.
16. On 20 May 2010, the government agreed on land acquisition for the project. This
received cabinet approval. The detailed legal framework, value methodology, and process for
land acquisition and compensation are defined in a draft Resettlement and Indigenous Peoples
Plan (RIPP). As per the Land Acquisition Act, the compensation determination committee (CDC)
has been established mainly to (i) determine appropriate value of acquired land through
10
The detail is given in the draft Resettlement and Indigenous People Plan.
13
negotiated settlement, (ii) negotiate the current market value of land, and (iii) probe
appropriateness of land-for-land and cash-for-land compensation modalities. The Land
Revenue Act also ensures land registration and transfer of titles, and the Land Reform Act
Amendment prescribes that in case the state acquires land which is being cultivated by a
tenant, both the tenant and the landlord will each be entitled to 50% of the total compensation
paid to the land. Based on these regulatory frameworks, negotiated settlement on compensation
for land acquisition for the project was adopted to assess land and asset valuation for the
purpose of the project. Based on surveys and meetings with the community members and
representatives of the project affected households, the consensus has been arrived for asset
valuation, making it transparent with CDC’s involvement. The consultations and negotiations
were held in public with groups of project affected persons and agreed on compensation rates
for different types of land and property categories. Thus, negotiations for most of the land
required for the project have already been conducted and the remaining activities are expected
to be done on that basis soon. Upon the project financial closure, THL will finalize the process
by requesting CDC to announce and publish the final notice for land acquisition. The affected
households will then be invited to collect forms for their compensation.
17. The compensation for acquired land is generally paid in cash.11 As described in the
RIPP, the process for channeling the fund for compensation will follow the Land Acquisition Act.
CDC under the chairmanship of the Chief District Officer will determine the timetable of
compensation payments and the payments will be deposited in the district office of Tanahu. The
government will be required to settle these payments through its own budget. The payment and
receipt process and record will be monitored and certified by experts from NGOs/civil society
organizations that will assist in monitoring the processes of land acquisition and payment. Only
after verification that land has been acquired in accordance with the processes and
requirements set out in this PAM, RIPP, ADB’s Safeguard Policy Statement (2009), ADB will
reimburse the government/THL for such expenditures incurred. Most of resettlement impacts
are related to the project site development such as construction of access roads, camping and
disposal sites. Since these areas are in part of project preparatory work before starting the main
construction of facilities, the resettlement processes are expected to be implemented intensively
at the early stage of project implementation.
18. THL promoted the above processes before discussing ADB’s involvement in funding
these costs. For the purposes, THL also established the Environment and Social Management
Unit (ESMU). Significant portion of land acquisition was already negotiated and made
consensus with affected communities for seeking compensation negotiated; risks of price
manipulation or inflation are unlikely to happen. However, if compensation payments are unduly
delayed, the affected households might demand for an upward revision of the rates to reflect the
market conditions. Under such circumstances, there is high probability that they would
renegotiate the rates of compensation. Therefore, it is necessary to start the land acquisition
process with the government’s resources as early as possible. Based on this, ADB’s
consultancy support will help expedite the process of proper resettlement implementation and
mitigate the risk relating to delays. ESMU will further be supported by a supervision firm which
will help overall project management to strengthen THL’s implementation capacity under ADB
financed consultancy services.
19. The project will have the support of experts from NGOs/civil society organizations. They
will be monitoring and evaluating the resettlement and payment processes under ADB financed
11
The affected persons opted for cash compensation for both physical and economic displacement. Given no one
opted for land-for-land compensation, the project will not have relocation sites.
14
consulting services.12 In accordance with the RIPP, the experts will monitor if the absence of
legal title to land should not be a bar for resettlement, and if vulnerable groups such as
indigenous peoples, landless, women, especially women-headed households, poverty groups
disabled and senior persons are entitled to special benefit and assistance packages in addition
to compensation and resettlement. Since the PPTA established comprehensive database for
affected households, the experts will record resettlement information including the valuation,
compensation payments, receipts and dates, assess their compliance with RIPP, SPS, and
PAM before and after land acquisition and resettlement, and submit progress reports to ADB. In
case of any disputes, grievance redress mechanisms are provisioned in detail in the RIPP and
an independent panel of experts (PoE) will also monitor and evaluate the resettlement
processes and results. Should ADB, the experts and PoE confirm any irregularity on particular
areas in the resettlement process, ADB will consider suspending reimbursements of the costs
until the matter has been settled to the satisfaction of ADB.
20. The allocation of withdrawal of loan proceeds, the detailed cost estimates, the contract
and disbursement s-curve, and the ADB fund flow diagram are provided in the following tables:
12
TOR is given Appendix 13.
15
A2. Allocation and Withdrawal of ADB ADF Hard Term Loan Proceeds
CATEGORY ADB FINANCING BASIS
Amount Allocated for ADB
ADF Hard-term Loan US$ Percentage and Basis for
Number Item million Withdrawal from the Loan Account
Category Subcategory
1 Headworks 24.5 19.4% of total expenditure claimed*
2 Financing Charges 0.8 100% of total amount due
3 Unallocated 4.7
4 Total 30.0
* Exclusive of all duties and taxes imposed within the territory of the Borrower.
17
18
E. Detailed Cost Estimates by Year
($ million)
ADB
Item (ADF)F Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
A. Investment Costs
1 Headworks 48.5 0.0 0.0 10.0 6.0 7.0 8.0 9.0 8.5
2 Social Mitigation 26.3 23.0 3.4 0.0 0.0 0.0 0.0 0.0 0.0
3 Transmission 14.6 0.0 0.0 0.0 0.0 3.1 5.5 4.0 1.9
4 Rural Electrification 8.1 0.0 0.0 1.4 1.4 1.4 1.4 1.4 1.4
5 Preparatory Expenses 1.2 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0
6 Consultants
a. Project Management 17.9 1.9 1.9 1.9 2.2 2.3 2.5 3.2 2.0
b. CDS 3.3 0.0 0.3 0.5 0.5 0.5 0.5 0.5 0.5
c. Rock Test 1.9 1.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0
d. Safeguards Monitoring 3.9 0.0 0.4 0.6 0.6 0.6 0.6 0.6 0.6
Subtotal (A) 125.7 28.0 6.0 14.4 10.7 14.8 18.4 18.6 14.9
Total Base Cost 125.7 28.0 6.0 14.4 10.7 14.8 18.4 18.6 14.9
B. Contingencies 19.5 0.0 0.0 2.0 3.0 4.0 4.0 4.0 2.4
C. Financing Charges During Imple. 4.8 0.2 0.3 0.5 0.6 0.7 0.7 0.8 1.0
D. Total Project Cost (A+B+C) 150.0 28.2 6.3 16.9 14.3 19.5 23.1 23.4 18.3
% Total Project Cost 100% 18.8% 4.2% 11.3% 9.5% 13.0% 15.4% 15.6% 12.2%
19
Commitment
Direct Payment Procedure
Procedure
(Ministry of Energy)
Supplier’s
Bank Legend:
Fund Flow
Document Flow
Turnkey
NEA / THL Contractors/Suppliers
Reimbursement and
SOE Procedure
20
V. FINANCIAL MANAGEMENT
21. NEA is an autonomous body corporate under the Nepal Electricity Authority (NEA) Act,
1984. The financial management of NEA was reviewed using ADB’s financial management
assessment questionnaire and interviews. The responses by NEA to the questionnaire revealed
that NEA has defined policies and procedures in place for accounting, budgeting, and auditing
activities. NEA has implemented externally financed projects from ADB, World Bank, and
bilateral agencies from China, Denmark (DANIDA), France, Germany (KfW), India, Japan
(JICA), Korea, Norway (NDF), OPEC countries, and other countries.
22. NEA is required to prepare annual audited financial reports under Section 26 and 30 of
the NEA Act 1984. As per the annual reports by the statutory auditor, the financial statements
comply with the Nepal Accounting Standards and presentation requirements under Companies
Act 2063. NEA has provided training on financial accounting, inventory management to staff.
Financial accounting, payroll and inventory management training packages are available in
NEA. NEA training center has also provided short term accounting training programs especially
to the lower level staff.
23. NEA is required to undertake periodic inventories of fixed assets and stocks on a yearly
basis through physical inspections. While this is being done for stocks, it is partially being done
for fixed assets. NEA has also developed an insurance fund to cover any loss of plant, property,
equipment. NEA has an internal audit department that is headed by a qualified accountant who
reports to the Managing Director. NEA is implementing a new information technology based
financial accounting system under the World Bank funded institutional strengthening program
that is ongoing.
24. THL has already been incorporated as a special project company, which has no track
records of management of construction and operation activities yet. THL adopts NEA's
operating and management practices. Through the course of the project - particularly with the
envisaged CDTA support, THL's own governance, accounting and management structure,
policies, and systems will be evolved to create a commercial, stand-alone company by 2015.
B. Disbursement
25. The ADB’s financing proceeds will be disbursed in accordance with ADB’s Loan
Disbursement Handbook (2012, as amended from time to time),1 and detailed arrangements
agreed upon between the government and ADB.
26. Pursuant to ADB's Safeguard Policy Statement (2009),2 ADB funds may not be applied
to the activities described on the ADB Prohibited Investment Activities List set Appendix 5 of the
SPS.
27. Before the submission of the first withdrawal application, the NEA/THL/the government
should submit to ADB sufficient evidence of the authority of the person(s) who will sign the
withdrawal applications on behalf of the NEA/THL/the government, together with the
1
Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf. The main
component of headwork (civil work) will be disbursed by direct payment or reimbursement, While the LC method is
not appropriate to civil work, equipment in the transmission and rural electrification component can be done by LC.
2
Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
21
28. THL’s headworks will be financed by ADB, ADFD, and EIB on a joint basis. For the
contract of headworks, THL will make separate withdrawal applications for disbursements to
each cofinancier on a pro rata basis, as defined in the arrangements for collaborative
cofinancing. THL will claim ADB loan proceeds to ADB through the government and inform NEA
of it. For NEA’s transmission and rural electrification components, NEA will claim loan proceeds
to ADB.
29. The government will make available adequate budgetary allocation for social and
environmental mitigation costs. ADB will reimburse the costs of land acquisition and
resettlement required only for THL after their costs are paid by the counterpart fund from the
government/NEA, provided that such expenditures are incurred in compliance with all applicable
requirements under PAM, RIPP, and ADB’s SPS.
C. Accounting
30. NEA/THL will maintain separate project financial statements and records by funding
source for all expenditures incurred on the project. Project financial statements will follow
international accounting principles and practices and/or those prescribed by the government's
accounting laws and regulations.
D. Auditing
31. NEA/THL will cause the project accounts to be audited in accordance with International
Standards on Auditing and/or the government's audit regulations by an auditor acceptable to
ADB.3 The audited financial statements, and audit report and management letter will be
submitted in the English language to ADB within 6 months of the end of the fiscal year by
NEA/THL. The annual audit report will include a separate audit opinion on the use of the
proceeds of the ADB loans and compliance with the financial covenants of the Loan
Agreements as well as on the use of the procedures for statement of expenditures) and a
management letter (which sets out the deficiencies in the internal control of the Project that
were identified in the course of the audit, if any). The government and NEA/THL have been
made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and
acceptable quality of the audited financial statements. ADB reserves the right to verify the
project's financial statements to confirm that the share of ADB’s financing is used in accordance
with ADB’s policies and procedures. For revenue generating projects, ADB requires audited
financial statements for the executing agencies. ADB shall disclose the annual audited financial
statements for the Project and the opinion of the auditors on the financial statements within 30
3
THL will maintain its corporate financial statement instead of the project account since those two accounts are
identical to THL.
22
A. Advance Contracting
32. In order to expedite project implementation, the government has requested advance
contracting actions for the all the works, goods and consulting services. The government and
the NEA/THL have been advised that approval of advance contracting does not commit ADB to
finance the project.
33. Procurement. In addition to preparatory works, there will be three major construction
packages comprising (i) part A: hydropower’s headworks, (ii) part B: hydropower’s equipment
and powerhouse, (iii) part C: transmission and rural electrification. The cost breakdown for
procurement packages is in Appendix 7. The part A will be jointly financed by ADB, ADFD, and
EIB, and the part B will be separately financed by JICA in a parallel basis. Part C will also be
financed by ADB.
34. The procurement under ADB financing will follow international competitive bidding in
compliance with ADB Procurement Guidelines (2010, as amended from time to time).4 As a
condition for providing cofinancing resources for part A (to be procured as a single contract
package financed jointly by ADB), ADFD and EIB, ADFD and EIB require that ADB waives its
member country procurement eligibility restrictions, such that countries that are eligible sources
of procurement under ADFD-financed or EIB-financed procurement are also eligible sources of
procurement in respect this contract package. Therefore, it is proposed that the board approve
such a waiver. The part B will follow JICA’s Procurement Guidelines and procured separately
under an ICB arrangement.
35. THL, as the newly incorporated company, has no track record on procurement. It will
need extensive external support. This will be provided through the supervision firm and other
consultants.
36. The project’s construction period is expected to be 7 years including one and half year
project site development to build access roads and bridge prior to the main construction works.
The government will ensure adequate budgetary allocation to complete the site development on
time. The procurement for the site development will be undertaken by THL through national
competitive bidding procedures acceptable to ADB.
37. An 18-month procurement plan is summarized in Section C and the consulting services
terms of reference are given in Section D. All consulting firms and nongovernment organizations
(NGOs) will be recruited using a quality and cost-based selection method in accordance with
ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).
4
While the bidding documents for the package, including any prequalification documents will follow ADB’s standard
bidding and prequalification documents for the part A: hydropower’s headworks, EIB will assist THL with the
publication of the procurement notice in the Official Journal of the EU, and may require the executing agency to
insert the covenant of integrity in the form attached as an additional document to be submitted by bidders.
23
C. Procurement Plan
Basic Data
Project Name Nepal Tanahu Hydropower Project
Country Nepal
Executing Agency Nepal Electricity Authority (NEA),
Tanahu Hydropower Ltd. (THL)
Financing Amount $150 million
Loan Number XXXXXXXXXXX
Date of First Procurement Plan 02 June 2012
Date of this Procurement Plan 28 January 2013
38. Except as the Asian Development Bank (ADB) may otherwise agree, the following
process thresholds shall apply to the procurement of goods, works and consulting services.
39. Except as ADB may otherwise agree, the following prior or post review requirements
apply to the various procurement and consultant recruitment methods used for the Project.
40. The following table lists goods and works for which procurement activity is ongoing or
expected to commence within the next 18 months.
24
41. The following table lists consulting services contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
5. Goods and Works Contracts Estimated to Cost Less than $1 Million and
Consulting Services Contracts Less than $100,000
42. The following table groups smaller-value goods, works and consulting services contracts
for which procurement activity is either ongoing or expected to commence within the next
18 months.
Value of Procurement /
Number of
General Description Contracts
Contracts
Recruitment Comments
(cumulative, $ mil) Method
Vehicles 0.4 several Shopping
Environmental Service
0.2 several Shopping
Equipments
25
43. The following table provides an indicative list of all procurement (goods, works, and
consulting services) over the life of the Project. Contracts financed by the Borrower and others
should also be indicated, with an appropriate notation in the comments section.
Estimated
Contract Value
Domestic Procurement Comments
Item
No. ($ mil) Preference Mode
Procurement
Part A Hydropower Structure
ADB, EIB
Construction of
A-1 132.0 N ICB ADFD, and
Headworks
GON
Waterway, Powerhouse JICA’s JICA and
A-2 166.4 N
and related Equipment guidelines GON
GON’s
A-3 Access Roads/ Bridge 10.0 N GON
guidelines
A-4 Adit Excavation 0.9 N NCB ADB and GON
Transmission Line and
Associated substation
Part B 24.2 Y ICB ADB and GON
and Rural
Electrification
Subtotal: Procurement 333.5
Estimated
Contract Value
Recruitment Type of Comments
Item
No. ($ mil) Method Proposal
Consulting Services
Project Supervision
QCBS
A-a Consulting services for 17.9 FTP ADB
90:10
Tanahu HPP
Consulting Services for
QCBS
A-b Community 3.3 FTP ADB
90:10
Development
Consulting Service for QCBS
A-c 1.9 FTP ADB
Rock Mechanical Test 90:10
Social Safeguards
A-d Monitoring and 0.4 Individual ADB
Implementation Support
Environmental
A-e Management Plan and 2.5 Individual ADB
Implementation Support
44. National competitive bidding (NCB) shall be in accordance with that described as "by
inviting bids and a national level" as set forth in "The Public Procurement Act, 2007" (PPA),
"The Public Procurement Regulations, 2007" (PPR), and/or ―The NEA Financial Administration
Regulations, 2068‖, as applicable, and subject to the following:
(i) The first NCB document for both goods and works procurement shall be reviewed and
approved by ADB prior to issue. These will be used for all NCB procurement under the project.
The document shall include qualification and evaluation criteria and ADB's right to audit and
inspect in accordance with para 1.14 of ADB's Procurement Guidelines. No other criteria other
than that described in the bidding document may be used to determine the lowest evaluated
responsive bidder and no form of domestic preference may be employed. A positive
assessment of a bidder's qualifications to perform a contract will be a pre-requisite to an
award.
(ii) All qualified ADB member bidders and ADB member produced goods, services and
works shall be eligible. Registration and licensing shall be permitted only as a condition of
contract award and not participation in bidding. No award may be withdrawn for failure to
obtain tax registration; license or fulfill any similar requirement without ADB's prior
concurrence. No bidder will be held ineligible based on provision 63 of the PPA without ADB
prior concurrence.
(iii) 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 twenty-eight
(28) days for the preparation and submission of bids. Invitations for bids for contracts
estimated at $500,000 or more for goods and $1,000,000 or more for civil works shall be
advertised on ADB’s website. No restriction will be placed on the sale of bidding documents.
(iv) The approved Standing List of a Procuring Entity prepared in accordance with the law
shall only be accepted to supplement an advertised open pre-qualification exercise for the
specific contract provided that those on the standing list meet the qualification criteria.
(v) Bids shall be opened at a single location immediately after the deadline for submission.
Multiple locations for submission and opening are not acceptable.
(vii) Extension of bid validity of more than 4 weeks beyond the original validity shall not be
allowed without the prior concurrence of ADB.
(viii) Cancellation of bidding and re-bidding shall not be carried out without the prior
concurrence of ADB.
(ix) Percentage variations from rates fixed by a district rate fixation committee shall not be
used for the purpose of evaluating bids.
45. In the event of a conflict between these provisions and the law, these provisions shall
prevail.
27
46. The outline Terms of Reference for (i) project supervision, (ii) community development
strategy, (iii) CDTA to be attached to ADB loans, (iv) rock mechanical test, (v) panel of experts,
and (vi) monitoring and supporting of land acquisition and resettlement are in Appendix 8, 9,
10, 11, 12 and 13, respectively. The TOR for environmental monitoring and implementation
support is included in the EMP.
VII. SAFEGUARDS
47. The project is classified as A for involuntary resettlement (IR), indigenous peoples (IP)
and environment. In accordance with ADB’s Safeguard Policy Statement (2009), a resettlement
framework and an indigenous peoples planning framework have been formulated.5 Both IR and
IP impacts of the project have been addressed in a draft resettlement and indigenous peoples
plan (RIPP) which combined IR with IP planning issues and mitigation actions. The government
approved an environmental impact assessment (EIA) and initial environmental examination
(IEE) for the hydropower and transmission components in 2009 and 2010 respectively. To
comply with ADB requirements, their environmental addendum and a separate IEE for rural
electrification were also prepared based on additional environmental surveys and information.
The environmental management plan (EMP) includes a wide range of activities for quality
monitoring, physical mitigation schemes, and biological mitigation programs for aquatic and
terrestrial faunas, flora, and hydrological impacts in both upstream and downstream.
48. As the EAs of the project, the NEA/THL will ensure the timely and adequate
implementation of EMP and RIPP for each component of the project, and will ensure that all
activities comply with the applicable national and local environmental laws and regulations, in
addition to ADB’s Safeguard Policy Statement (2009). In the event a sub component requires
modifications to its design or configuration prior or during project construction, NEA/THL will
ensure to prepare and update the EIA, IEE, EMP and RIPP accordingly, and will submit these
documents to ADB for approval and clearance. NEA/THL will ensure that all construction-based
contracts are implemented in an environmentally and socially sustainable and responsible
manner. Contracts shall include provisions that comply with host country employment laws and
ADB guidance on labor standards, including fair wages; reasonable occupational health and
safety standards in the workplace; the provision of acceptable working conditions and practices;
the prohibition of forced and compulsory labor and of child labor; equal opportunity, gender
inclusive and pro-poor employment targets; equal pay for equal work; the deterrence of
discriminatory practices on the basis of sex, ethnicity or caste; public awareness and
sensitization of the risks and prevention of the spread of HIV/AIDS; and any requirements
described in EIA, IEE, EMP, RIPP, and a gender equality and social inclusion action plan.
NEA/THL will be responsible to ensure these measures, which monitoring will be reported to
ADB in the project progress reports if any issues.
49. Environmental safeguards. The mitigation measures will be incorporated into the
contractor’s contract documents. NEA/THL will monitor, audit, and report to ADB on the
implementation of the EMP for each component quarterly during construction and annually
during operation. Summary appraisal reports will be submitted to ADB subsequent to the
NEA/THL’s approval.
5
The resettlement and indigenous planning requirements will guide social safeguard planning documents required
for the transmission and rural electrification components.
28
51. The contractor shall prepare and submit quarterly progress reports in conformance with
the EMP to THL/NEA and shall indicate when, how and at what cost the contractors plan to
satisfy the requirements as per detailed design. The construction schedules shall detail the
resources to be provided or utilized and any related sub contracting proposed.
52. Social safeguards. NEA/THL and its contractors will be responsible for designing and
implementing culturally acceptable and sensitive measures to manage and address significant
community, health, safety, and labor issues, in consultation with locally affected peoples, and in
accordance with national laws and ADB safeguard requirements.
53. Involuntary resettlement activities, and those associated with impacts to indigenous
peoples, will be implemented in accordance with host country laws and regulations and ADB
safeguard policy requirements, including loan provisions and covenants as stated herein.
Implementation of activities is the sole responsibility of NEA/THL and shall be closely monitored
by the responsible party. Performance shall be reported back to the ADB on a quarterly basis.
During this process, NEA/THL will ensure to improve or at least restore the quality of life of all
displaced and affected persons.
54. Where construction works require large numbers of workers, especially migratory (from
areas other than the host community), NEA/THL will impart HIV/AIDS awareness campaigns to
prevent and control its spread to others during the duration of construction works. Campaigns
will include information disclosure of the risks and methods of prevention to women and girls in
the local community. The project will not hire child workers for any project related activities and
NEA/THL will ensure that workers are not bonded or forced laborers.
55. To enhance THL’s and NEA’s corporate governance and project implementation capacity,
the CDTA will further help THL establish commercially-oriented corporate policies and practices
for procurement, human resources, financial management, and information systems.7 The project
has also provisioned for an independent panel of experts (POE) for the project review and
feedback particularly on dam safety and social and environmental safeguards. POE members will
be selected in 2013 as early as possible.
56. Based on social and poverty survey and assessment carried out in the project area, the
community development strategy (CDS) is designed to increase the involvement of
socioeconomically vulnerable persons including women, children, and socially excluded groups.
CDS aims to enhance livelihood and improve quality of life of communities residing in the
project area affected with direct adverse impacts. As social corporate responsibilities separate
6
These activities will include (a) fisheries management program including the fish hatchery and fish habitat
management program for the Seti and Madi rivers; (b) compensatory afforestation program including nursery and
seedling development and replanting program; (c) watershed management plan including erosion control and
pollution abatement in the catchment area; (d) wildlife conservation and awareness program; (e) water quality
assessment and management plan; (f) river safety program; (g) public communications plan; (h) construction
environmental management plan. Implementation of these major plans and programs will need consultation with
ADB.
7
THL will strengthen its own man power following its staffing plan.
29
from compensation, THL will implement CDS with emphasis on education, health, gender
development, inclusion of socially excluded groups, and local economic development and
livelihood promotion through consultancy engagement with an anchor NGO/consulting firm with
field-based partner NGOs.8 Along with CDS, a gender equality and social inclusion action plan
(GESI) will be implemented to empower and increase women’s participation, roles and status in
their families and communities; the project is classified as effective gender mainstreaming.9
Besides CDS and GESI, rural electrification will be benefited from the project to households of
the project and its neighboring areas in the district. NEA will provide a scheme where poor rural
households will be permitted to pay connection fees in installments with the criteria to be set for
NEA’s corporate social safeguard policy
57. GESI has been prepared for the project and the NEA/THL will be responsible for
overseeing the timely and appropriate implementation of the GESI and any other technical
assistance that may be mobilized for the project to optimize social and gender benefits. All
consultative and participatory processes will be socially and gender inclusive, ensure timely
disclosure of information, be factually accurate, and provide a platform for open, fair and
transparent dialogue and communication. Implementation of consultation and participatory
approaches will be the responsibility of the NEA/THL and the project implementation and
monitoring units. Results from the consultation and participation process will inform project
development and will be monitored on a periodic basis and reported back to ADB as and when
required. The GESI will enable poor women and men’s participation in the energy sector
projects, through the provision of technical and skills training increase employment opportunities
and energy-related livelihood and entrepreneurial activities. The NEA/THL will receive capacity
development on how to improve gender equity and community participation in the project.
Training will aim to pilot and replicate a resource for the energy sector in Nepal. NEA/THL shall
ensure that implementation of core labor standards and dissemination of information on sexually
transmitted diseases including HIV/AIDS to employees and local communities surrounding the
facilities is closely monitored, and progress is reported to ADB periodically. The participation of
locally affected people, particularly poor female-headed households will be given special priority
during project implementation. A gender-mainstreamed project performance monitoring system
(PPMS) will monitor GESI implementation and assess social and gender impacts of the project.
Reporting on the GESI will be annually based during implementation.
58. The project is classified as ―Effective Gender Mainstreaming (EGM)‖ category according
to ADB’s Guidelines for Gender Mainstreaming. The GESI seeks to empower women by
increasing awareness of their rights, knowledge and economic development through access to
energy based resources, opportunities, and services. The GESI is provided below:
8
The programs will emphasize awareness, accessibility, empowerment, employability, vocational skill enhancement,
or micro enterprise development in a participatory approach. After implementation of the project focused CDS, the
community development and benefit sharing will sustainably be continued through royalty allocation from the
project revenue to VDCs, which scheme is regulated in the Local Self-governance Act.
9
Refer to the Gender Equality and Social Inclusion Action Plan; and Summary Poverty Reduction and Social
Strategy.
30
GENDER EQUALITY AND SOCIAL INCLUSION ACTION PLAN (GESIAP) 1
Outputs Activities and Targets Timeline Responsible
Output I: Hydropower plant and transmission system made operational
1.1 Participatory and Three broad-based participatory and socially inclusive consultations2 on GESI and CDS goals, Year 1–6 Activities funded under
meaningful objectives, and status in each VDC as defined in the project area (PA)3 and at different stages of Project planning, Community
consultation, implementation (6 years). Target:4 participation of minimum 1,000 peoples; 60% women/socially preparation and Development Strategy
information sharing excluded persons5 (SEP) construction phases (CDS)
and grievance Gender Equity Awareness Consultations on gender equality, empowerment, legal entitlements and Year 1 begins after the
redressal rights of girls/women. Target: 1,000 people; 50% women and 50% men recruitment of the service EA/Anchor/Field level
provider (late 2013 – early Service Provider6
Grievances from women and SEP are to be collected and recorded separately by women mobilizers.
2014)
Target: 18 qualified woman representative/community mobilizers to be hired locally to carry out this
task. Each must have good ability to interact and communicate
1.2 Facilitating access Prepare an inventory of (i) local people interested/available to work on the project (ii) their existing Year 1–6 Activities funded under
to local jobs, and skill levels and (iii) required training needs in the PA. Target: 700 men/300 women Project planning, civil work contracts
creating gender and Skilled and unskilled employment opportunities in the PA.7 Target: 1,000 local jobs; 30% women preparation and
socially inclusive Collect/monitor/evaluate sex disaggregated data on the local workforce. Target: 6 indicators: (i) construction phases EA/Anchor/Field level
workplaces gender, (ii) job function, (iii) education and skills level, (iv) hourly pay/monthly wages, (v) duration of Service Provider
employment, (vi) training received
Work sites to have segregated toilet facilities for women. Target: 1 toilet for every 35 workers 8
1.3 Restoring Life and financial management skills training to be provided to displaced households (HH), including Year 1–6 Activities funded under
livelihoods affected all physically displaced HH and female-headed HH (FHH)9, some living below the poverty line. Project planning, CDS and Resettlement
by resettlement with Target: 758 HH; at least 70% will have joint participation man/woman preparation and Plan (RP).
new skills training Vocational training provided to eligible HH on new skills supporting project jobs/opportunities. construction phases
Training opportunities and potential trainees will be identified following needs assessment carried EA/Anchor/Field level
out across the project area. Target: 1,000 persons; 60% woman/SEP (600) Service Provider
10
Output II: Rural electrification increased
2.1 Increased access Additional 17,63611 households electrified through the rural electrification scheme. Target: benefiting Year 4-6 Activities funded under
to electricity and approximately 100,00012 persons; of which there are an including 50,000 women13 and estimated NEA rural electrification
creation of energy 1,700 FHH14. program.
1
Most GESI outputs will be funded under the Community Development Strategy (CDS). Output 1.3 relates to activities in support of resettlement and livelihood restoration activities, as outlined in
the project Resettlement Plan (RP).
2
The objective of the consultations will be to disseminate information and engender interest and participation of community members in the implementation of CDS and GESI activities.
3
For CDS and GESI purposes, eligible peoples and households are those found inside the project area (PA), comprised of 24 wards spanning across eight village development committees (VDCs)
and one municipality within Tanahu District. At least 3,732 HH will be eligible to benefit from CDS/GESI activities.
4
The target reflects the minimum number of peoples that the project will aim to benefit, in line with CDS objectives and budgets.
5
SEP - Socially excluded persons are defined as those suffering the effects of marginalization within or outside their community due to their ethnicity, religion, gender, caste, disability, health,
education or socio-economic status. For the purpose of this project, this specifically includes Dalit, Janajati, disabled and any marginalized group who is politically, socially or economically
excluded, including girls/women.
6
The CDS activities will be carried out by an anchor national NGO/Firm, known as the service provider, who in turn will hire local NGO partners.
7
For the purpose of this project, local peoples shall be defined as those who can show formal and legitimate proof of being from or permanently residing in the PA at the time of hire. THL will
decide what constitutes as ―formal and legitimate‖ proof of residence.
8
According to the US Department of Labor, Occupational Health and Safety Administration (OSHA), an indicative ratio is one toilet facility per every 20 workers.
9
FHH include single, widowed, and deserted women.
10
The rural electrification component will enable over 17,000 rural households to gain access to electricity. Benefits will be funded under the NEA program.
Outputs Activities and Targets Timeline Responsible
based livelihoods Eligible households taking up connections under the RE scheme shall be given access to micro-
finance assistance for enterprise development. Target: 1,000 persons; 60% women/SEP (600) at the EA/Anchor/Field level
PA Service Provider
Financial and administration skills training and market assistance will also be provided as part of the
initiative. Target: 1,000 persons; 60% women/SEP (600) at the PA
Output III: Community development program in the project area implemented
3.1 Social and gender Assess baseline conditions and livelihood benefit opportunities in the PA at the onset of community Year 1-6 Activities funded under
inclusive community development planning and implementation process. Target: minimum 750 HH to be surveyed for Activities are to be defined CDS.
development: through baseline studies; 3,732 HH (including 12,000 women) to be benefited upon evaluation at the onset of CD
creation of Training on informal cottage industry skills and opportunities, including sewing, arts and crafts, activities during year 1 EA/Anchor/Field level
opportunities and veterinary services, agro-forestry, etc. as relevant. Target: 1,000 people; 60% women/SEP Service Provider
enhancement of skills, Micro Enterprise Development training and financial support through seed capital. Target: min. 1,000
income generation, persons; 60% women/SEP
education, and health Support the formation/affiliation to ―skills and knowledge-based‖ community groups (e.g., SHGs,
CSOs, CBOs) supporting (i) health, (ii) agriculture, (iii) cottage industries and micro-enterprises, (iv)
access to markets, etc. Target: minimum 9 groups, 1 in each VDC/eligible municipality. Participation
should be promoted to achieve as much critical mass as possible
Establishment/training and promotion of self help groups (SHG) for credit and savings activities
across each AA (8). Target: 40 SHGs (across each of the VDC’s/eligible municipality), 100% women
Establish campaigns to raise awareness about basic health, safety, hygiene and nutrition issues,
with a special focus on improving the quality of life of girls/women (pre/post maternal care), infants,
the elderly and the poor. Target: 1,000 persons; 60% girls/women
Conduct literacy campaigns and carry out programs to increase people’s access to education.
Target: 1,000 eligible persons; 60% girls/women/SEP
Monitor and evaluate the results of the implementation of the CDS, by documenting challenges,
opportunities, successes, recommendations and lessons learnt. Include social and gender inclusive
indicators to report on
Output V: Other sector reforms undertaken
5.1 Project Data disaggregated by sex, caste, and ethnicity, specific parameters (outputs/outcomes), and Year 2 - 6 Activities funded under
management, indicators established at the onset of implementation, monitored against baseline conditions and RP and CDS.
monitoring and reported on an annual basis, focusing on improvements to quality of life parameters
evaluation THL’s comprehensive corporate policies, using commercial principles and informed by GESI EA/Anchor/Field level
considerations (including assessments on resettlement and activities focused on women’s Service Provider
entitlements to compensation and livelihood benefits) established by 2015
11
According to baseline collected for the hydropower project, it is assumed the average household has 6 members. The estimated number of eligible beneficiaries (under the CDS and/or the RE
component) is calculated by multiplying the total number of households by 6.
12
The figure is calculated by multiplying the estimated number of electrified households by the estimated number of persons per household.
13
Based on poverty and social assessment for the project, the primary beneficiary from electricity use is targeted on women over studying and working population.
31
14
Based on baseline collected on the HEP project, approximately 10% of the population surveyed is FHH, per the definition used herein in footnote 9.
32
Outcome Assumptions
Increased efficiency Increase in hydropower capacity NEA’s annual report Adequate overall
and supply of reliable available year-round to 246 MW transmission system
hydropower energy in 2020 (2012 baseline: 92 MW) capacity is available to
supply power from the
Increase in additional electricity Tanahu hydropower plant
generation of 588 GWh/year from NEA’s annual report
the Tanahu hydropower plant in The government's policy
2020 on and commitment to
rapid hydropower
Winter’s power shortage NEA’s annual report development continues.
alleviated by 2020 (from the load
shedding of 14–18 hours a day in
2011 to less than 10 hours in
2020)
Outputs Assumptions
1. Hydropower plant 140 MW hydropower plant THL’s quarterly Timely availability of
and transmission constructed by 2020 progress reports cofinancing from ADFD,
system made EIB, and JICA
operational 37 km transmission line and a THL’s quarterly
220 kV substation constructed to progress reports Government mobilizes
evacuate the plant’s power by counterpart funds on time.
2020
Autonomous regulator’s
position is assured for
ETFC.
33
ADB = Asian Development Bank, ADFD = Abu Dhabi fund for Development, CDTA = capacity development technical assistance,
CDS = community development strategy, DOED = Department of Electricity Development, EIB = European Development Bank,
ETFC = Electricity Tariff Fixation Commission, GESI = gender and social inclusion action plan, JICA = Japan International
Cooperation Agency, JFPR = Japan Fund for Poverty Reduction, NEA = Nepal Electricity Authority, PPP = public and private
partnership, THL = Tanahu Hydropower Limited.
a
Taking into account the energy mixture of Nepal’s grid, the grid emission factor of 169.67 tCO2/GWh is assumed as a baseline.
Source: Asian Development Bank.
59. Project performance monitoring. NEA/THL will undertake overall monitoring of the project in
terms of progress. ADB, the government and NEA/THL will conduct semiannual reviews throughout the
implementation of the project. The review will monitor the (i) project output quality, (ii) implementation
arrangements, (iii) implementation progress, and (iv) disbursements. Performance will be monitored
based on indicators and targets stipulated in the design and monitoring framework.
35
60. Compliance monitoring. In addition to the standard assurances, compliance with the specific
assurances will be monitored. They will be based on the financing agreement and project agreement as
well as consulting services, procurement and disbursement guidelines. For safeguard compliance,
experts from NGOs/civil society organizations will be engaged as needed to provide planning,
supervision, and advisory services. The EA will also engage an independent POE for the project. All
consultants to be supported by ADB finance will be recruited according to ADB's Guidelines on the Use
of Consultants (2010, as amended from time to time). The procurement of goods, related services, and
works finance by ADB will follow procedures outlined in the ADB's Procurement Guidelines (2010 as
amended from time to time).36 The ADB financing proceeds will be disbursed in accordance with ADB's
Loan Disbursement Handbook (2012, as amended from time to time) while each cofinancing proceeds
will be disbursed in accordance with each cofinancier’s disbursement guideline.
B. Evaluation
61. ADB will field regular review missions every six months at the minimum to review status of
contract awards, disbursements, physical progress, and implementation of the environmental
management plan and resettlement plans. Within 6 months of physical completion of the project,
NEA/THL will submit the project completion report (PCR) to ADB. Subsequently, ADB will field a
mission to finalize the PCR.
C. Reporting
62. NEA/THL will provide ADB with (i) quarterly progress reports in a format consistent with ADB's
project performance reporting system; (ii) quarterly monitoring reports on safeguards implementation
(i.e., environmental management plan, resettlement and indigenous peoples plan) during construction
and annually during operation; and (iii) 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
36
Refer to para 35 incase the procurement is financed by ADB, ADFD, and EIB.
36
(iv) a project completion report within 6 months of physical completion of the project. To ensure projects
continue to be both viable and sustainable, project accounts and the financial statements, together with
the associated auditor's report, should be adequately reviewed.
63. The Stakeholder Communications Strategy is described in the following table. NEA/THL will
post all relevant information on their websites. The website will include at minimum information
regarding the bidding process, bidders, contract awards, use of funds disbursed under the project and
physical progress.
X. ANTICORRUPTION POLICY
64. ADB reserves the right to investigate, directly or through its agents, any violations of the
Anticorruption Policy relating to the project. All contracts financed by ADB will include provisions
specifying the right of ADB to investigate (with any audit through the government’s authorized auditor)
and examine the records and accounts of NEA/THL; and all project contractors, suppliers, consultants,
other service providers, individuals/entities on ADB’s anticorruption debarment list are ineligible to
participate in ADB-financed activities and may not be awarded any contracts under the project. To
support these efforts, relevant provisions are included in the financing and project agreements and the
bidding documents for the project.
65. The government of Nepal and NEA/THL will ensure that (i) the project is carried out in
compliance with all applicable Nepal anticorruption regulations and ADB’s Anticorruption Policy,
including cooperating fully with any investigation by ADB directly or indirectly of any alleged corrupt,
fraudulent, collusive, or coercive practices relating to the project; and (ii) all relevant staff actively
participate in training in Nepal's anticorruption regulations and ADB’s Anticorruption Policy.
66. In accordance with ADB requirements, an assessment in the areas of public financial
management, procurement, and anticorruption was undertaken. Certain governance, fiduciary, and
anticorruption safeguards have been incorporated into the project to mitigate the risk of diversion of
funds and to enhance and strengthen governance, accountability, and transparency. In particular, such
transparency and accountability measures include (i) establishment of a publicly accessible project
website within the existing NEA website and THL’s website wherein the government will disclose key
project-related information including on costs, safeguards, and procurement; and (ii) establishment of a
grievance redress mechanism satisfactory to ADB for receiving and resolving stakeholder complaints.
67. The government, through NEA/THL, will ensure that a section of its website is dedicated to the
project in the first year of project implementation, and that it will disclose details of the project, including
the audited project financial accounts; project progress; and procurement activities including the
publishing of short-lists, invitations for bid, and contract awards.
38
68. People who are, or may in the future be, adversely affected by the project may address
complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.
69. To be inserted as and when any changes are necessary and agreed by both sides.
39
Appendices:
1. The Tanahu Hydropower Project (140 MW) locates on Seti river, Damauli in the Tanahu
District, Nepal (Map in Annex-1). The Project is to provide stable power supply and to cope
with increasing power demand in the overall country, thereby contributing to economic
development, improvement of civil life, and adaptation to climate change. The detailed effects of
the Project include (i) power supply during the peak hours in the dry winters as peak load power
sources, (ii) replacement of diesel consumption by a cheaper and cleaner power source, (iii)
stabilization of a power supply system through increased controllability and flexibility for power
generation and reduced transmission losses due to proximity to the load center, and (iv)
introduction of hydropower technology innovations to Nepal with their application to subsequent
similar type projects. The physical activities of the Project mainly include:
2. A medium size hydropower plant (Salient Features in Annex-2) with water storage will be
developed to make power supply available year-round and meet the country’s peak demand in
particular for the dry season. The Project is envisaged to meet the peak demand during dry
season. It will be capable of supplying power for peak times throughout the year and is also
capable of supplying power during off-peak times in the rainy season. As a unique feature of the
Project, sediment flushing in the beginning of the rainy season will be carried out for 10 days in
the initial 10 years and for 40 days in subsequent years, with a view to reducing sediment
accumulated in the reservoir and consequentially keeping live storage capacity. It mainly
consists of two construction packages:
A. Package 1: Headworks
3. The package includes: a) diversion tunnels and care of river; b) dam and spillway; c)
reservoir slope protection; d) access roads around dam; and e) disposal area to store muck
produced from headworks civil works.
4. The main specifications of the headworks are a dam of 140 m in height, 175m in crest
length and approximately 800,000m 3 in volume. The dam is equipped with sediment flushing
facilities to discharge sediment deposited in the reservoir. These facilities will consist of two sets
of inlet through the base of the dam wall in the middle of the river cross-section, with a sill level of
320 m asl. Three gates will be installed in a conduit that will be fully opened when in operation
once the reservoir level is at 345 m asl or lower. The reservoir is emptied once a year and
sediment is discharged through sediment flushing conduits embedded in the dam by tractive force
of river flow.
5. The package includes: a) civil works for intake; headrace tunnel; headrace surge tank;
penstock; draft tunnel and tunnel to draft gate chamber; tailrace tunnel; draft pond and tailrace
outlet; underground powerhouse; cable tunnel and outgoing terminal; main access tunnel;
access roads to tailrace outlet; disposal area to store muck produced from waterway and power
house civil works; b) hydromechanical equipment: spillway gate; sediment flushing facilities;
water level lowering facilities; intake gate; steel penstock; draft gates; and tailrace gates; c)
Electromechanical equipment: overhead traveling crane; turbine and generators; main
transformers; and maintenance flow generating facilities.
A1-1
Appendix 1
6. The main specifications of the underground power house are 27 m wide × 46 m high ×
97 m long) waterway of approximately 1,500 m in length.
7. The new transmission line of the project will represent one of the very important steps for
forming a strong 220 kV loop to enhance the power system reliability. The package includes: a)
construction of the transmission line of 220 kV, double circuit and 37 km long, from the Tanahu
hydropower plant to the new 220kv Bharatpur substation; b) installation of the new 220kv
Bharatpur substation facilities to connect the transmission line to the existing network.
PREPARATORY WORKS
9. Preparatory Works include access roads from main roads to project sites, permanent
bridge, temporary power supply, and NEA’s camp. The government will finance this component.
10. The community development strategy (CDS) will be implemented for people in the
hydropower affected area to recognize benefits from development of the project with long-term
engagement. In the CDS, the community development program from various aspects includes
education, health, gender development, social inclusion, local economic development and
livelihood activities in the hydropower project affected area including 8 VDCs and 1 municipality.
SAFEGUARDS
11. Resettlement is provisioned along land acquisition for the project site and reservoir.
Social safeguard activities include compensation and livelihood restoration. Environmental
safeguard activities mainly include mitigation and monitoring programs of afforestation and
watershed management, fish hatchery, wildlife protection, and river water safety.
A1-2
Appendix 1
Annex-1
Project location
Hydropower Project
A1-3
Appendix 1
Annex-2
Project Salient Features
Item
Reservoir Full Supply Level 415.0 m
Minimum Operation Level 378.0 m
Available Depth 37.0 m
Sedimentation Level 320.0 m
6 3
Gross Storage Capacity 295.1 × 10 m
6 3
Effective Storage Capacity during first 10 years; 192.8× 10 m
6 3
after 11th years; 181.7 × 10 m
Dam Type Concrete Gravity Dam
Elevation of Dam Crest 420.0 m
Height of Dam 140.0 m
Length of Dam Crest 175.0 m
3 3
Volume of Dam 806 × 10 m
Sediment Flushing Inlet Sill Elevation 320 m
Facilities Gradient of Conduit 1: 15
Upstream Maintenance Slide Type Steel Gate
GateSpan x Height 5 m x 5m
Intermediate Main Gate High Pressure Slide Gate
Span x Height 5mx5m
Downstream Auxiliary Gate High Pressure Slide Gate
Span x Height 5 m x 5.2 m
3
Spillway Design Flood 7,377 m /s
Type Chute
Elevation of Overflow Crest EL. 399 m
Width of Overflow Crest 49.5 m
Energy Dissipator Ski Jump
Type of Gate Radial
Size of Gate 16.5 m span x 16.5 m height
Intake Number 1
Type Tower Type Intake
Headrace Tunnel Number One (1)
Inner Diameter 7.4 m
Total Length 1,162 m
Penstock Type Tunnel
Number One (1)
Inner Diameter 7.4 m to 3.1 m
Total Length 175 m
Draft Tunnel Length 85.8 m
Tailrace Tunnel Diameter 7.4 m
Length 117 m
Powerhouse Type Underground
Size 27 m wide × 46 m high × 97 m long
Development Plan Rated Intake Water level 405.0 m
Tail Water Level 289.2 m
Gross Head Rated; 115.8 m
Maximum; 125.8 m
Effective Head Rated; 111.7 m
Maximum; 121.55 m
3
Discharge Rated; 127.4 m /s
3
Maximum 131.2 m /s
A1-4
Appendix 1
Item
Number of Unit Two (2)
Install Capacity 140 MW
Peak Time 6 hours
Primary Energy during first 10 years; 266.2 GWh
after 11th years;241.4 GWh
Secondary Energy during first 10 years; 319.5 GWh
after 11th years; 248.5 GWh
(excluding Generation Facility for
Environmental Flow)
Total Energy during first 10 years; 585.7 GWh
after 11th years; 489.9 GWh
(excluding Generation Facility for
Environmental Flow)
Turbine Type Vertical Shaft, Francis Turbine
Number Two (2)
Maximum/Rated Output 71,800kW/64,700 kW
Generator Type Three-phases, Synchronous
Generator
Number Two (2)
Maximum/Rated Output 82,300kVA/74,600kVA
Revolving Speed 300 r/min
Frequency/Voltage 50 Hz/13.2 kV
Power Factor 0.85 lag
Main Transformer Type Indoor, special three-phase, Forced-
oil-circulated and forced-water-cooled
Number Two (2)
Maximum/Rated Output 82,300kVA/74,600kVA
Voltage Primary 13.2 kV
Secondary 220 kV
Switchyard Type GIS (Gas Insulated Switchyard)
Bus System Double Bus
Number of Lines Connected Two (2) cct Transmission Lines
Voltage 220 kV
Transmission Line Length 36.9 km
Type of Transmission Tower Steel lattice tower
Number of Circuit Two (2)
Voltage 220 kV
2
Conductor Type 380 mm × ACSR (Bison)
Generation Facility Rated Output 1,400 kW
for Environmental Rated Effective Head 70.9 m
3
Flow Discharge 2.4 m /s
Distribution Line Voltage 11 kV or 33kV
Turbine Type Horizontal Type, Francis Turbine
Generator Type Horizontal Type, Three-phase
Synchronous Generator
Average Energy During the first 10 years: 14.0GWh
th
After 11 years: 13.0GWh
A1-5
Appendix 2
Bidding Schedule for Major Construction Packages
B
Package 2: Waterway, Powerhouse, Relater Equipment (JICA)
PQ = Prequalification; PSC = Project Supervision Consultants; PPTA = Project Preparatory Technical Assistance; THL = Tanahu Hydropower Limited
* Bidding documents for Package 3 will be prepared by NEA in 2nd half of 2014, and floated in 2015.
Appendix 3
Board of Directors
Chairman
(NEA)
Managing Director
A4-1
Head
Project Manager HR and Admin
(PSC)
A5-1
Appendix 6
NEA Board
Managing Director
Distribution & Distribution & Generation Generation Transmission & Grid Development Engineering Administration Finance DMD Internal Audit
Consumer Services Consumer Services Operation & Construction GM System Operation GM Services, GM DMD DMD
GM West GM Maintenance GM GM
Kathmandu Butwal Large Power Generation Grid Transmission Project Human Account Internal
Regional Regional Plant Construction Operation Line Development Resource Department Audit
Operation & Department Departmen
Office Office Department Construction Department Department
Maintenance t
Department,
Department
220 kV & above
Hetauda System General Corporate
Pokhara Soil, Rock &
Regional Operation Service Finance
Regional Concrete
Office Department Department Department
Office Medium Laboratory
Power Plant Monitoring
Operation & & Technical
Department
Transmission
Biratnagar Maintenance
Power Trade Line Legal
Regional Department Environment Revenue
Nepalgunj Department Construction Department
Office & Social Study Department
Regional Department,
Office Department
up to 132 kV
Planning &
Technical
Planning &
Service
Technical
Department
Service
Department
A6-1
Appendix 7
A7-1
Appendix 8
I. Background
The Tanahu Hydropower Project is substantially the first major reservoir type hydropower in Nepal along
with sediment flushing system operations which is also the first type in the country. To develop such a
new project construction and operations, reputable and experience supervision firm will be recruited. To
mitigate complex project construction and operational risks, the presence of the proven project
supervision and management capability will be crucial. The firm/association (the firm) will also
coordinate and supervise the two construction packages during the construction period, and continue
to operate the plan with a sediment flushing system.
The firm will be responsible for supporting the Tanahu Hydropower lImited (THL) in project administration,
design and engineering services, contracting, management control, procurement and expediting of
equipment, materials control, inspection of equipment prior to delivery, shipment, transportation, control of
schedule and quality, pre-commissioning and completion, performance-guarantee testing, inventorying
spare-parts, training of owner's/plant sub-system operating and maintenance personnel, all financial,
human resources and administrative management of the project both during construction and operation
phase under the company’s board.
The firm should be a hydropower developer/electric utility/any other consulting and engineering firms
having adequate international experience of detailed designing, selection, monitoring, supervisions and co-
ordination of contractor(s), operation and maintenance of hydropower project. Specific experience in the
areas of (i) reservoir or pumped-storage type hydropower development, (ii) effective sediment
management (e.g., sediment flushing, desanding), (iii) adaptation of social and environmental safeguards
for hydropower projects in accordance with internationally accepted guidelines and practices (such as
those of ADB, JICA, and other IFIs), and (iv) training and skill transfer programs to staff recruited locally in
any hydropower projects outside the bidder’s country will be advantageous.
The outlined terms of reference (ToR) of the project supervision contract consultant (the consultant)
during the various stages of the Tanahu Hydropower Project under the Tanahu Hydropower Limited
(THL) would include:
1. Overall project supervision and management activities for construction and development
A. Review of design.
Review of detailed and basic designs prepared by the consultant of “Detailed Engineering
Study of Upper Seti Hydropower Project”1 (DES Consultants) performed under a grant
agreement between the Government of Nepal and Asian Development Bank (ADB) and review
prequalification (PQ) documents if any and bidding documents prepared by the consultant of
“Preparing Hydropower Development for Energy Crisis” granted by ADB (PPTA Consultants).
1
Upper Seti Hydropower Project has been renamed as Tanahu Hydropower Project.
A8-1
Appendix 8
the consultancy contract with THL and submit it to THL for review and approval. If schedule is
changed for certain reasons, the consultant shall modify the implementation schedule with
clear explanation of reasons which caused changes within one month after such cause is
revealed, and submit it to THL.
A8-3
Appendix 8
(iii) Supervise and inspect all construction activities of the contractors so as to ensure
compliance with the approved drawings, documents and specifications, and ensure that
they are within schedule.
(iv) Regularly review manufacturing schedules and delivery schedules of equipment by the
contractor.
(v) Monitor manufacturing progress and works by regular inspections to ensure the
compliance to specifications and specified standards.
(vi) Certify the payments to the contractors, after checking and verifying the contractor’s
measurements
(vii) Report regularly financial status of the project to THL by
a) Reporting the financial result and financial position.
b) Actual cash flow position.
c) Performing detail variation analysis between estimated / budged position vis–a-vis the
actual position.
d) Future requirements & payment schedules.
e) Recommending possible measures for reducing expenditure, if any.
(viii) Investigate, inspect and assess requirements from the contractors for extension of
time, additional works, payment for additional works, etc.
(ix) Review claims along with its supporting data, evaluate reports on the claim and assist THL
in settling the claims or disputes (if any).
(x) Maintain records of construction activities, which will be eventually needed to prepare
completion report, operation/maintenance manuals and as-built drawings. They shall
include records of:
(a) Investigation and monitoring,
(b) Drawings,
(c) The consultant’s activities,
(d) The Contractor’s activities,
(e) Payments,
(f) Quality control,
(g) Progress of works,
(h) Safety control,
(i) Notable events and
(j) Others as required.
J. Support for THL in ensuring adherence to final project design, engineering and schedule.
K. Supervise contractors’ activities and enhancing the coordination among them to achieve
timelines, costing and quality standard for developing the project. The consultant should
coordinate with the interrelated contractors.
L. Support for THL in ensuring overall financial, human resources, information technology and
administrative functions to develop the project and for fulfilling the desired performance level
under contractual arrangement.
M. Support for THL in implementing all safeguard matters encompassing both social and
environmental aspects following the plans and policies prepared during project preparation.
A8-4
Appendix 8
D. Quality assurance in conformance with international best practices with respect to engineering
practices, standards and specifications. The consultant shall establish quality assurance
system in accordance with the consented operation and maintenance strategy documents. It is
recommended that the consultant should apply for quality assurance system ISO 9001. THL
and the consultant shall establish operating and control procedures for all units, monitor
A8-5
Appendix 8
performance of all activities concerned, conduct internal audits, correct or prevent non-
conformities, and adopt continual improvement actions.
E. Supervise all works pertaining to the operation of the Tanahu Hydropower Plant. The
consultant shall supervise all works conducted based on the annual maintenance plan or
overhaul schedule.
3. Other activities
A. Assist THL in implementing, monitoring and reporting all safeguard matters encompassing
both social and environmental aspects as per the plans and policies prepared during project
preparation.
B. Conduct Cost-Benefit analysis of deviations in construction phase from planned design etc.
C. Make proper recording of events leading to delay in construction and operational activities.
E. Take care of all safety measures both during project construction as well as during operation.
(i) During project construction, the consultant shall
(a) Review and approve safety program submitted by the contractors,
(b) Establish overall safety control organizations and program and
(c) Hold safety meetings regularly with the THL and the contractors
(ii) During operation, the consultant shall
(a) Prepare safety program for the operation activities of the plant,
(b) Assist THL in establishing safety control measures and conducting the safety program,
(c) Assist THL to educate staff on safety control and
(d) Hold safety meetings on regular basis.
G. Execute skill transfer programs for THL personnel during both construction and operation
stages
(i) The consultant shall prepare skill transfer program corresponding to the professional
expertise of THL personnel, and submit the program three months before the
commencement of each stage to THL for their review and consent.
(ii) The consultant shall execute the skill transfer based on the consented program for each
stage.
I. Report key issues directly to ADB officers in addition to THL during construction stage
including procurements of contracts.
III. Output
A. The consultant shall prepare an Inception Report within 6 weeks of commencement, monthly
and quarterly progress reports as applicable based on field data and preparation of progress
reports in a format and detail acceptable to THL and ADB.
A8-6
Appendix 8
Tanahu Hydropower Project being the first reservoir based project in Nepal will require specialized
skills and relevant international experience in handling such project. As such the International Experts
will have to work in co-ordination with THL’s national counterpart experts for the successful execution
of the project. The following table details the International Experts and person months required for the
project.
The consultant team member will consist of twenty engineers/experts for project management
activities both during construction stage and during operation and maintenance stage. Three experts
Project Manager, Senior Civil Engineer (Dam), and Senior Civil Engineer (Waterway & Powerhouse)
shall supervise the activities of both THL staff as well as the consultant team members. For the
engineering experts, in-house staff will be preferred. In the light of the detailed Terms of Reference
(ToR) for the consultant, each expert’s ToR will include, but not necessarily be limited to, the following
tasks. Each expert will perform their tasks in collaboration with their team members. The outlined
terms of references for each the experts are as follows:
1. Project Manager
A8-7
Appendix 8
(a) Both during construction and operation stages will do the following:
(i) Work at the project site to control day-to-day operation of the project and report to MD of
THL.
(ii) Present to the MD the technical and financial progress and issues
(iii) Conduct overall supervision of activities performed by both THL staff and the consultant
team members at the site.
In cooperation with Executive Directors/ Vice Presidents, other THL staff and other consultant
team members, Project Manager will do the following
(i) Supervise preparation of operation and maintenance strategy documents and finalize them
under consultation with THL.
(ii) Supervise the consultant team members’ support for THL in conducting operation and
maintenance and supervise the consultant team members’ training activities for THL staff.
(iii) Supervise establishment of document management system for reports on operation and
maintenance activities.
(iv) Supervise establishment of quality assurance system.
(v) Manage the consultant team members’ supervision of works pertaining to operation of the
Tanahu Hydropower Plant.
(vi) Ensuring adherence to project schedule.
A8-8
Appendix 8
(i) Supervise the consultant team members’ assisting THL in implementing all safeguard
matters encompassing both social and environmental aspects as per the plans and policies
prepared during project preparation.
(ii) Supervise Cost-Benefit analysis of deviations in construction phase from planned design etc.
(iii) Supervise proper recording of events leading to delay in construction and operational
activities.
(iv) Optimize generation bottleneck of availability of water and sedimentation issues.
(v) Take care of all safety measures during construction and operation.
(vi) Ensure adherence to all statutory requirements.
(vii) Supervise the execution of skill transfer programs for THL personnel during both
construction and operation stages.
(viii) Assist in maintaining sound external relations and personnel relations.
(ix) Maintain records documenting decisions made at meetings, progress of project
implementation and changes to contract plans.
(x) Report key issues directly to ADB officers during construction stage.
(i) Review the detailed and basic design of civil structures prepared by the consultant of
“Detailed Engineering Study” and review bidding documents of civil works prepared by the
consultant of “Preparing Hydropower Development for Energy Crisis: Nepal”.
A8-9
Appendix 8
(ii) Assist Project Manager in preparing the project implementation schedule in cooperation with
other team members.
(iii) Support THL in running the entire bid management process for construction works.
(iv) Support THL in planning and preparation of strategy documents of the contract regarding
civil works from the viewpoint of design.
(v) Review and approve drawings and design documents of civil works produced by contractors.
(vi) Establish project management system and reporting system for supervision, management
and monitoring of construction process by using information technology.
(vii) Review quality assurance program of civil works during design and construction.
(viii) Support THL in ensuring adherence to final project design, engineering.
(ix) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(x) Record events leading to delay in construction.
(xi) Execute skill transfer programs for THL personnel during construction stage.
(xii) Assist in maintaining sound external relations and personnel relations.
(xiii) Maintain records documenting decisions made at meetings, progress of project
implementation and changes to contract plans.
4. Civil Engineer
(i) Assist Project Manager in preparing operation and maintenance strategy documents from
the viewpoint of civil engineering.
(ii) Assist THL in conducting maintenance of the civil structures.
(iii) Establish document management system for reports on operation and maintenance activities
for civil works.
(iv) Establish quality assurance system.
(v) Supervise civil works pertaining to operation of the Tanahu Hydropower Plant.
(vi) Ensure adherence to project schedule.
(vii) Record events leading to delay in operational activities.
(viii) Optimize generation bottleneck of availability of water and sediment flushing issues.
(ix) Ensure safety measures during operation.
(x) Execute skill transfer programs for THL personnel during operation stage.
(xi) Assist in maintaining sound external relations and personnel relations.
5. Structural Engineer
(i) Review drawings and design documents of civil structures produced by the contractors, in
particular those for detailed design.
(ii) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(iii) Execute skill transfer programs for THL personnel during operation stage.
(iv) Assist in maintaining sound external relations and personnel relations.
6. Geologist
(i) Assist other engineers in reviewing of the design prepared by the consultant of “Detailed
Engineering Study” from the geological viewpoint.
A8-10
Appendix 8
(ii) Review geological investigation plan proposed by the contractors for detailed design for civil
structures, if any.
(iii) Review drawings and design documents produced by the contractors and assist other
engineers in reviewing drawings and design documents of civil structures produced by the
contractors, from the geological viewpoint.
(iv) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(v) Execute skill transfer programs for THL personnel during construction stage.
(vi) Assist in maintaining sound external relations and personnel relations.
7. Geotechnical Engineer
(i) Review drawings and design documents of civil structures produced by the contractors, in
particular those for detailed design.
(ii) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(iii) Execute skill transfer programs for THL personnel during construction stage.
(iv) Assist in maintaining sound external relations and personnel relations.
8. Utility Engineer
(i) Review the technical part of bidding documents on utility works prepared by the consultant of
“Preparing Hydropower Development for Energy Crisis: Nepal”.
(ii) Review drawings and design documents of utility works produced by the contractors.
(iii) Supervise all works of utility works.
(iv) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(v) Execute skill transfer programs for THL personnel during construction stage.
(vi) Assist in maintaining sound external relations and personnel relations.
9. Hydromechanical Engineer
(i) Review the basic and detailed design of hydromechanical equipment such as spillway gates,
intake gate, draft gates, sediment flushing facilities, water level lowering equipment,
penstock liner, etc. prepared by the consultant of “Detailed Engineering Study” and review of
bidding documents for the above equipment prepared by the consultant of “Preparing
Hydropower Development for Energy Crisis: Nepal”.
(ii) Assist Project Manager in preparing the project implementation schedule in cooperation with
other engineers.
(iii) Support THL in running the entire bid management process for construction works of the
hydromechanical equipment.
(iv) Support THL in planning and preparation of strategy documents of the contractors, regarding
hydromechanical equipment.
(v) Review drawings and design documents of the hydromechanical equipment produced by the
contractor.
(vi) Support THL in supervision, management and monitoring of construction process regarding
hydromechanical equipment.
(vii) Support THL in witnessing and approving equipment testing and commissioning of
hydromechanical equipment.
A8-11
Appendix 8
(i) Assist Project Manager in preparing operation and maintenance strategy documents from
the viewpoint of hydromechanical engineering.
(ii) Assist THL in conduct operation and maintenance of hydromechanical equipment.
(iii) Establish document management system for reports on operation and maintenance activities
for hydromechanical equipment.
(iv) Establish quality assurance system for hydromechanical equipment.
(v) Supervise works pertaining to operation of the Tanahu Hydropower Plant.
(vi) Ensure adherence to project schedule.
(i) Assist Project Manager in preparing operation and maintenance strategy documents from
the viewpoint of electromechanical engineering.
(ii) Assist THL in conduct operation and maintenance of electromechanical equipment.
(iii) Establish document management system for reports on operation and maintenance activities
for electromechanical equipment.
(iv) Establish quality assurance system of electromechanical equipment.
(v) Supervise works pertaining to operation of the Tanahu Hydropower Plant.
(vi) Ensure adherence to project schedule.
(vii) Record events leading to delay in operational activities.
(viii) Optimize generation bottleneck of availability of water and sedimentation issues.
(ix) Ensure adoption of all safety measures during operation.
(x) Execute skill transfer programs for THL personnel during operation.
(xi) Assist in maintaining sound external relations and personnel relations.
A8-12
Appendix 8
(i) Review the basic design of electromechanical equipment such as hydraulic turbine and
related equipment prepared by the consultant of “Detailed Engineering Study” and review
bidding documents for the above equipment prepared by the consultant of “Preparing
Hydropower Development for Energy Crisis: Nepal”.
(ii) Assist Project Manager in preparing the project implementation schedule in cooperation with
other engineers.
(iii) Support THL in running the entire bid management process for construction works of the
electromechanical equipment.
(iv) Support THL in planning and preparation of strategy documents of contractors, regarding
electromechanical equipment.
(v) Review drawings and design documents of the electromechanical equipment produced by
the contractor.
(vi) Support THL in supervision, management and monitoring of construction process of
electromechanical equipment.
(vii) Support THL in witnessing and approving equipment testing and commissioning of
electromechanical equipment.
(viii) Supervise all works of electromechanical equipment.
(ix) Review the contractor’s quality assurance program of electromechanical equipment during
design, manufacturing, delivery and construction.
(x) Support THL in ensuring adherence to final project design, engineering and schedule of
electromechanical equipment.
(xi) Supervise the contractor’s activities and enhance the coordination among contractors.
(xii) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(xiii) Record events leading to delay in construction and operational activities.
(xiv) Ensure adoption of all safety measures during construction stage.
(xv) Execute skill transfer programs for THL personnel during both construction and operation
stages.
(xvi) Assist in maintaining sound external relations and personnel relations.
(xvii) Maintain records documenting decisions made at meetings, progress of project
implementation and changes to contract plans regarding electromechanical equipment.
(i) Assist Project Manager in preparing operation and maintenance strategy documents from
the viewpoint of electrical engineering.
(ii) Assist THL in conduct operation and maintenance of electrical equipment.
(iii) Establish document management system for reports on operation and maintenance activities
for electrical equipment.
(iv) Establish quality assurance system for electrical equipment.
(v) Supervise works pertaining to operation of the Tanahu Hydropower Plant.
(vi) Ensure adherence to project schedule.
(vii) Record events leading to delay in operational activities.
(viii) Optimize generation bottleneck of availability of water and sedimentation issues.
(ix) Ensure adoption of all safety measures during operation stage.
(x) Execute skill transfer programs for THL personnel during operation stage.
(xi) Assist in maintaining sound external relations and personnel relations.
(i) Review the basic design of electrical equipment such as generator, main transformer,
switchgear and related equipment prepared by the consultant of “Detailed Engineering
Study” and review bidding documents for the above equipment prepared by the consultant of
“Preparing Hydropower Development for Energy Crisis: Nepal”.
(ii) Assist Project Manager in preparing the project implementation schedule in cooperation with
other engineers.
(iii) Support THL in running the entire bid management process for construction works of the
electrical equipment.
(iv) Support THL in planning and preparation of strategy documents of contract regarding
electrical equipment.
(v) Review drawings and design documents of the electrical equipment produced by the
contractor.
(vi) Support THL in supervision, management and monitoring of construction process of
electrical equipment.
(vii) Support THL in witnessing and approving equipment testing and commissioning of electrical
equipment.
(viii) Supervise all works of electrical equipment.
(ix) Review contractor’s quality assurance program of electrical equipment during design,
manufacturing, delivery and construction.
(x) Support THL in ensuring adherence to final project design, engineering and schedule of
electrical equipment.
(xi) Supervise the contractor’s activities and enhance the coordination among contractors.
(xii) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(xiii) Record events leading to delay in construction activities.
(xiv) Ensure adoption of all safety measures during construction.
(xv) Execute skill transfer programs for THL personnel during construction stage.
(xvi) Assist in maintaining sound external relations and personnel relations.
(xvii) Maintain records documenting decisions made at meetings, progress of project
implementation and changes to contract plans regarding electrical equipment.
(i) Review the basic design of transmission line and a new substation in Bharatpur prepared by
the consultant of “Detailed Engineering Study” and review bidding documents for the
transmission line and substation prepared by the consultant of “Preparing Hydropower
Development for Energy Crisis: Nepal”.
(ii) Assist Project Manager in preparing the project implementation schedule in cooperation with
other engineers.
(iii) Support THL in running the entire bid management process for construction works of the
transmission line and substation.
(iv) Support THL in planning and preparation of strategy documents of the contractor, regarding
transmission line and substation.
(v) Review drawings and design documents of the transmission line produced by the
contractor.
(vi) Support THL in supervision, management and monitoring of construction process of
transmission line and substation.
(vii) Support THL in witnessing and approving equipment testing and commissioning of
transmission line and substation.
(viii) Supervise all works of transmission line and substation.
A8-14
Appendix 8
(ix) Review the contractor’s quality assurance program of transmission line and substation
during design, manufacturing, delivery and construction.
(x) Support THL in ensuring adherence to final project design, engineering and schedule of the
transmission line and substation.
(xi) Supervise contractor’s activities and enhance the coordination among contractors.
(xii) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(xiii) Record events leading to delay in construction activities.
(xiv) Ensure adoption of all safety measures during construction.
(xv) Execute skill transfer programs for THL personnel during construction stage.
(xvi) Assist in maintaining sound external relations and personnel relations.
(xvii) Maintain records documenting decisions made at meetings, progress of project
implementation and changes to contract plans regarding transmission line and substation.
(i) Review bidding documents from the contractual viewpoint prepared by the consultant of
“Preparing Hydropower Development for Energy Crisis: Nepal”.
(ii) Support THL in running the entire bid management process through selection and
negotiation of each contract package from the contractual viewpoint.
(iii) Supervise all works of construction works from the contractual viewpoint.
(iv) Prepare reports and documents specified in ToR for Firm/Association I.1.N.
(v) Record events leading to delay in construction activities.
(vi) Execute skill transfer programs for THL personnel during construction stage.
(vii) Assist in maintaining sound external relations and personnel relations.
(viii) Maintain records documenting decisions made at meetings, progress of project
implementation and changes to contract plans.
(i) Prepare operation and maintenance strategy documents from the viewpoint of environmental
safeguards.
(i) Assist THL in implementing, monitoring and reporting all safeguard matters encompassing
environmental aspect as per the plans and policies prepared during project preparation stage.
(ii) Execute skill transfer programs for THL personnel during both construction and operation
stages.
(iii) Assist in maintaining sound external relations and personnel relations.
(i) Prepare operation and maintenance strategy documents from the viewpoint of social
safeguards.
(i) Assist THL in implementing, monitoring and reporting all safeguard matters encompassing
social aspect as per the plans and policies prepared during project preparation stage.
(ii) Execute skill transfer programs for THL personnel during both construction and operation
stages.
(iii) Assist in maintaining sound external relations and personnel relations.
19. Accountant
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Appendix 8
2. On successful completion of five years of operation, the contract may be further renewed.
A8-17
Appendix 9
A. Background
1. Nepal Power system is heavily dependent on the run-of-river projects and hence faces acute
power shortages during the dry season (mainly winter season). On the other hand, there is peak
production during the summer when the country experiences high rainfall. Given this background, the
Government of Nepal decided to approve the National Energy Crisis Fixation Program 2065
(2008/09). Where the Tanahu Hydropower Project (140 MW) was identified as one of the most critical
projects.
2. The project will be located on the Seti River near Damauli City, the district capital of Tanahu
District. The reservoir-based project would have an installed capacity of 140MW. It will extend to
about 25 km upstream submerging low-lying lands along the Seti River. The main-affected areas of
the project consist of 24 ward across 8 village development committees (VDCs) and one Municipality
viz. Chhang, Majhkot, Bhimad, Jamune, Kot Durbar, Rishing Ranipokhari, Savumbhagawati and
Kahun Shivapur VDCs and the Vyas Municipality.
3. The construction and implementation of the project would directly and indirectly impact the
lives of the people creating challenges and will also bring in opportunities for the community. Thus,
the Community Development Strategy (CDS) aims to identify strategic interventions to improve the life
of the people living in the project area of influence. It is a commitment of the Tanahu Hydropower
Limited (THL) towards facilitating evelopment of the impacted community.
4. CDS intends to guide the implementing agencies to develop an implementation plan for
strategic interventions and achieve the key objective outlined in the document. It provides a
framework to engage community on a participatory basis and empower them to continue the activities
under the guidance of THL. The document lays special emphasis on the gender empowerment and
the social inclusion of the excluded groups to ensure an inclusive growth for the community.
5. The key objective of CDS is to enhance socio-economic development of the project influence
area through intervention in key program areas viz. education, health, maximizing benefits from
infrastructure development, vocational training and skill development, social inclusion and gender
empowerment for enhanced livelihood and well being of the community.
B. Implementation Arrangements
6. THL will engage consulting services with a service provider, anchor NGO/firm for execution of
the CDS. The service provider will also provide technical and management support in implementing
the CDS in the project area and provide necessary technical and management support for the same.
It will be required to facilitate the process of identification and prioritization of communities’ need,
develop strategic linkages, mobilize resources to effectively plan and implement the program for the
construction period. It would also be required to partner/ form consortium with 3 to 4 field NGOs
having presence in the targeted VDCs and municipality to undertake this assignment. The service
provider will build the capacity of THL, local communities, and community base organizations to
implement community development programs and sustain it in the long run. The field NGOs will be
expected to ensure participation of institutions, groups and individuals from amongst the key primary
and secondary stakeholders. They will undertake the micro planning covering the key program areas
to address the challenges of the people in the PA and explore the opportunities of the people with
close guidance and supervision of the anchor NGO/ Firm. The consulting services will be
A9-1
Appendix 9
implemented over 6 years from March 2014 to June 2020. ADB will engage a consulting firm or
consortium of firms using its quality- and cost-based selection procedures in accordance with the
Guidelines on the Use of Consultants (2010, as amended from time to time). Equipment financed by
the services will be procured under ADB’s Procurement Guidelines (2010, as amended from time to
time).
7. The overall responsibilities of the anchor NGO/firm will include the following:
(i) Registered under as a private limited company, registered society or trust with Government of
Nepal.
(ii) Experience of working with any other development agencies.
(iii) Presence in at least one district, with experience of working in Tanahu district.
(iv) Any registered office and preferably an office in Tanahu district.
(v) Experience of implementing grass root projects funded by various national or international
organizations.
(vi) Extensive experience of working in the area of community development and in sectors such as
education, health, livelihood, gender mainstreaming and development, water and sanitation.
(vii) Experience in micro-planning, community mobilization, and formation of community based
groups.
(viii) Extensive experience of working with government at the district levels.
11. The service provider of the anchor NGO/firm will include the project manager/community
development specialist and experts who have experience and expertise: (a) social development and
gender enhancement, (b) health, (c) education, (d) health, water and sanitation, (e) livelihood and
enterprise development, and (f) monitoring and evaluation. The each expert’s scope of work is
provided in the CDS as TORs, but not necessarily be limited to them. The project manager will
specifically do the following tasks:
(i) Manage and coordinate the overall project planning and implementation activities for the
community development.
(ii) Liaison with all the stakeholders including THL, local government officials, local people in the
communities, civil work contractors and field NGO partners.
(iii) Conduct a participatory approach in developing the community development plans if
applicable.
(iv) Manage the project schedule and budget and with THL in implementing the community
development plans.
(v) Develop monitoring framework and indicators to evaluate the achievements.
(vi) Report the progress and the outcomes of the community development plans on a semiannual
basis.
(vii) Formulate sustainable mechanism for subsequent community development planning and
activities.
(viii) Coordinate the inputs of all the other experts, provide quality control on all outputs, harmonize
proposals and recommendations, and ensure that the consultation process is adequate in
terms of the stakeholder's participation and ownership.
A9-3
Appendix 10
1. The capacity development technical assistance (CDTA) aims to work on reform programs on
the power sector and strengthen the sector’s key framework to ensure the sustainability of the sector-
wide systems for hydropower development in Nepal. CDTA will focus on five components:
(i) functional support to establish and implement tariff rationalization mechanisms of the
Electricity Tariff Fixation Commission (ETFC) as an autonomous body,
(ii) time-bound reform actions for the Nepal Electricity Authority (NEA) to implement a financial
restructuring plan (FRP), management reforms and selected asset spin-off,
(iii) demonstration of a public private partnership (PPP) structure based on standardized
contractual documents for NEA and Department of Energy Development (DOED), Ministry of
Energy, and equity sale programs for the Tanahu Hydropower Limited (THL),
(iv) formation of effective small and medium size hydropower investment and development
policies and strategies for DOED based on comparative studies of development road map
and investment models with neighboring countries, and
(v) commercial-oriented comprehensive corporate policies and management systems of NEA
and some subsidiaries including THL to cover ranging from technical and financial
management to equitable community benefit sharing and safeguard practices.
2. Tariff reforms. To attract investment for hydropower and ensure the sector’s sustainability, an
appropriate regulatory framework will have to be established by issuing clear regulations and setting
up the regulator’s institutional capacity. At present, ETFC is allowed to regulate NEA’s retail tariffs
only. The sector’s tariffs will have to be annually adjusted and determined in a transparent manner
under appropriate rules and guidelines. ETFC and its successor entity will regulate functional tariffs
for generation, transmission, and distribution to ensure a full cost recovery and operational efficiency.
These mechanisms and practices will further be put in place regularly through capacity development
support from CDTA.
3. NEA restructuring. Inadequate and unreliable power supplies are a function of low
investments and poor upkeep of existing facilities. These are also affected by weak financial and
management of NEA who is a single buyer and network operator. Detail of FRP will have to be
defined in an implementable manner and implemented to ensure NEA financial and operational
sustainability. Along with FRP, NEA management structure will also be reformed. The schemes can
include spin off of selected assets of NEA and disinvestment and partnership with experienced
operational partners. The concrete plans will be formulated and clear actions will be set up with the
government in close consultation with other key donors.
4. PPP arrangements and share sale. The government has been exploring PPP for
hydropower projects. Private investment and participation is crucial to meet acute shortage of power
generation and exploit vast potential of hydropower. One special feature of the Tanahu Hydropower
Project is selling an equity stake in THL. A sale of either a majority or minority stake of THL could
generate significant revenues to kick-start other investments. This transaction process will be put in
place and supported by the consultant. Proceeds could also be used to restructure and recapitalize
NEA. If a minority stake is involved, then the divestment program will need to combine the co-
ownership with a management contract. Any PPP project(s) will also be identified for demonstration
A10-1
Appendix 10
and provided advisory support using internationally acceptable commercial documents including a
project development agreement, a power purchase agreement, and/or a management contract for
initial project structuring scheme.2
5. Other development and institutional capacity improvement. THL is ring-fenced from NEA
structure. It will have commercial-oriented corporate policies and practices along with implementation
of the Tanahu Hydropower Project. To ensure appropriate institutional governance, they will cover
procurement, accounting and financial management, technical operations, safeguards, human
resources,3 and gender and community involvement. The framework should be applied to other
subsidiaries of NEA subsequently.
B. Implementation Arrangements
6. The executing agency (EA) will be DOED, MOE and the implementing agencies (IAs) are
ETFC, NEA, and its subsidiaries including the Tanahu Hydropower Limited (THL). DOED will be
oversee day-by-day CDTA implementation. DOED, ETFC, NEA and its subsidiaries will help the
consultants liaise with other government ministries and agencies, local authorities, and other
stakeholders in the project areas, and obtain data and documentation from them. They will assign the
counterpart staff for each expertise areas for on-the-job-training and skills transfer. DOED will provide
sufficient office space, furniture, and support facilities to the CDTA consultants on time.
7. The CDTA will be implemented over 24 months from April 2013 to May 2015. It will require 51
person-months of consulting services (39 international and 12 national). ADB will engage a consulting
firm or consortium of firms using its quality- and cost-based selection procedures in accordance with
the Guidelines on the Use of Consultants (2010, as amended from time to time). Equipment financed
by the CDTA will be procured under ADB’s Procurement Guidelines (2010, as amended from time to
time). The CDTA will be disbursed in accordance with ADB’s Technical Assistance Disbursement
Handbook (2012, as amended from time to time) and any appropriate trust fund policy guidelines.
2
A Upper Modi A Project can be considered as a PPP candidate.
3
THL recruitment policy and pay scale will be set up outside ones of NEA.
A10-2
Appendix 10
9. The consultant team will cover ten areas of expertise: (a) power sector management, (b)
financial management, (c) tariff analysis, (d) regulatory and legal aspects, (e) investment (f)
information technology, (g) human resources and institution, (h) environment, (i) social development,
and (j) contract and procurement. An international expert in power sector management will be the
team leader, who will coordinate the inputs of all the other consultants, provide quality control on all
outputs, harmonize proposals and recommendations, and ensure that the consultation process is
adequate in terms of the stakeholder's participation and ownership.
10. The consultants’ outline terms of reference will include, but not necessarily be limited to, the
following tasks:
(i) Propose development strategies to the EA and IAs for each of hydropower development
types and sizes, particularly to make synergy effects with JICA’s relevant technical
cooperation for preparing a small and medium size hydropower development master plan.4
4
JICA. 2010. The Nationwide Master Plan Study on Storage Type Hydroelectric Power Development.
A10-3
Appendix 10
(ii) Review the existing regulations, policies, and plans for hydropower development, and
assess the sector’s constraints for hydropower development. Prepare the sector assessment
including the power sector performance and reforms, key challenges/opportunities, barriers
and risks associated with hydropower projects.
(iii) Group potential hydropower projects into generic categories such as domestic or export, run-
of-river or storage, or small or large capacity. For each category, evaluate options for
ownership, structures, governance, pricing, returns, risks, and incentives of investments.
Develop a strategy for hydropower development, and formulate a time-bound sector road
map for policy actions as well as a long-term investment plan.
(iv) Develop strategic power system planning including power export and import strategy,
demand and supply forecasting, and media strategy for facilitating investment.
(v) Strengthen DOED’s project identification capacity and bid management and set up
consistent procedures for sequencing priorities of projects for private participation.
(vi) Clarify advantages and disadvantages of a public private partnership model and promote a
demonstration structure (e.g., the Upper Modi A Project) with NEA.
(vii) Set up the government’s roles (e.g., guarantee mechanisms and criteria).
(viii) Assess and formulate the benefit sharing among the project's stakeholders, particularly local
governments and communities.
(ix) Review and assess an appropriate structure and governance framework between NEA and
its subsidiaries with other experts.
(x) Formulate a time-bound plan to realize the NEA reforms, including its selected asset spin-
off.
(xi) Set up a roadmap for an institutional capacity development programs for each of the EA and
the IAs with other experts.
(xii) Strengthen DOED’s one-stop window functions for investment in hydropower projects from
both public and private sectors.
(xiii) Assess the EA's and IAs’ management capacity to manage hydropower development
projects. Identify priorities for institutional capacity building with time-bound action plans with
other experts.
(xiv) Help NEA ensure the end users’ affordability mechanism (e.g., any installment payment
scheme) for new connection of rural electrification when required.
(xv) Support THL/NEA in finalizing the negotiations of the project management contract and its
related agreements if any.
(xvi) Serve as a resource person for in-house seminars and workshop organized with other
experts.
(i) Review each action scheme in NEA’s FRP and propose a concrete action and schedule to
be implemented.
(ii) Develop and assess financial projections to simulate results based on each action of FRP.
(iii) Analyze forecasted load growth and the function-wise sector’s revenues and costs in relation
to tariffs, cost recovery, and cross-subsidy among customer groups and in the power
sector’s value-chain process.
(iv) Review the existing financial management systems of NEA and THL and develop a capacity
development plan.
(v) Support NEA and THL in carrying out the fund flow and disbursement mechanism for the
Tanahu Hydropower Project if any.
A10-4
Appendix 10
(vi) Develop a new corporate accounting policy, financial reporting, governing regulations, and
corporate governance mechanism suitable for ETFC and NEA’s subsidiaries (e.g., THL)
when required.
(vii) Develop manuals and guidelines for managerial accounting, cost accounting, budgeting,
asset management, risk management, internal controls, and auditing suitable for ETFC and
the NEA’s subsidiaries when required.
(viii) Collaborate with the information systems expert in determining the management information
systems for financial management of ETFC and NEA’s subsidiaries (e.g., THL).
(ix) Help strengthen internal auditing and internal control functions of NEA and THL and finalize
internal audit reports timely.
(x) Help resolve the issues raised by auditors of financial statements of NEA and THL.
(xi) Serve as a resource person for in-house seminars and workshop organized with other
experts in doing the above tasks.
(i) Develop principles and procedures covering the following issues including (a) financial
performance targets, (b) revenue requirement determination, (c) structuring tariffs toward full
cost recovery and minimization of cross-subsidy, (d) targeting and delivering subsidies, and
(e) incentive-based regulation with particular reference to incentivizing loss-reductions, on
the international practices.
(ii) Develop a manual for studying costs of services on the international practices.
(iii) Set up norms and methodologies for tariff setting of generation, transmission, and retail
supply on the international practices.
(iv) Establish norms of power purchase agreements and cost based tariff mechanisms based on
the international practices.
(v) Develop uniform systems of accounts, annual revenue requirements, performance reporting
and application formats for tariff filing submissions.
(vi) Develop a toolkit for tariff setting and multi-year tariff principles.
(vii) Develop customer service standards including consumer care, complaint handling,
grievance redress mechanisms.
(viii) Help conduct customer’s awareness outreach programs.
(ix) Support NEA and THL in finalizing and/or revising a power purchase agreement if any.
(x) Serve as a resource person for in-house seminars and workshop organized with other
experts.
(i) Review tariff related regulations and policies and propose any amendments if any.
(ii) Set up judicial grievance and dispute resolution mechanism.
(iii) Guide and promote commercial arrangement requirements including power purchase
agreements, concession agreements, and shareholders agreements on international
practices.
(iv) Develop performance standards for utilities operations for enforcement and monitoring
purposes and set up the performance base regulations.
(v) Develop (a) grid, distribution and metering codes; (b) interconnection codes; (c) operational
performance standards in transmission and distribution; (d) system security standards; (e)
supply regulations; (f) safety regulations; (g) power system planning standards; (h) sharing
of assets and common facilities; (i) captive plant regulation, with other experts.
(vi) Develop governance codes of THL and NEA.
A10-5
Appendix 10
(vii) Serve as a resource person for in-house seminars and workshop organized with other
experts.
(viii) Support the contractual negotiation process with stakeholders in tendering, procurement,
and financial arrangements and agreements as necessary.
A10-6
Appendix 10
(i) Review and assess the responsibilities, organizational setup, and internal administrative
processes for each of the EA and IAs.
(ii) develop and help implement a plan for institutional strengthening relative to organizational
structure, operations, systems, program resources, and resource management (including
financial, technological, human, and physical resources), internal audit, and accountability
mechanisms, for each of the EA and IAs.
(iii) Develop and implement a corporate performance management system (e.g., key
performance indicators at corporate, strategic business unit, functional and individual levels)
for each of the EA and IAs.
(iv) Design and introduce a performance based incentive scheme in human resources
management.
(v) Assist ETFC and NEA’s subsidiaries in defining human resources issues such as pay
scales, designations, and service conditions, if any.
(vi) Incorporate provision for stakeholder consultation and monitoring mechanisms in case any
negative impacts on human resources are foreseen in NEA restructuring planning.
(vii) Serve as a resource person for in-house seminars and workshop organized with other
experts.
(i) Develop corporate environmental safeguard guidelines and frameworks for hydropower
development based on relevant international standards and guidelines. Pay special attention
to safety, water quality, cultural and ecological impacts to set up the baseline information for
monitoring.
(ii) Prepare environmental management plan (EMP) manuals for hydropower project affected
areas and the river catchments including upstream and downstream areas. Include
monitoring programs (indicators, frequency, and reporting), and include methodologies for
mitigating measures, and budgets and institutional arrangements to implement them, and
assess proper environmental benefits and risks. Include manuals for livelihood restoration
programs in EMP.
(iii) Develop environmental monitoring systems and safeguard monitoring reports. Support NEA
and THL in implementing safeguard plans and their monitoring if necessary.
(iv) Assist NEA in developing the environmental impact assessment and safeguard plans for the
PPP demonstration project based on the corporate policy frameworks.
(v) Assess and incorporate design and management to adapt the climate change and improve
safety measures. Set up checklists for any environmental and climate change risks (e.g.,
flush floods and glacial lake outburst floods) and their mitigation measures.
(vi) Establish approaches of public consultations and communications with stakeholders
including donors, civil society, NGOs, and media when applicable.
(i) Develop corporate social safeguard and gender mainstreaming guidelines and frameworks
for hydropower development based on relevant international standards and guidelines.
(ii) Develop corporate social impact monitoring systems and safeguard monitoring reports
including monitoring indicators to ensure the safeguard implementation and poverty
reduction effects. Support NEA and THL in implementing safeguard plans and their
monitoring if necessary.
A10-7
Appendix 10
(iii) Help NEA ensure the end users’ affordability mechanism (e.g., any installment payment
scheme) for new connection of rural electrification when required.
(iv) Incorporate social requirements of public consultation and/or stakeholder participation in
tariff regulations and their rules and guidelines.
(v) Assist NEA in developing the social impact assessment and safeguard plans for the PPP
demonstration project based on the corporate policy frameworks.
(vi) Develop and help NEA and THL implement corporate social action programs and community
development plans and gender equality and social inclusion action plans in a participatory
approach. Explore partnerships with host communities, grassroots NGOs and civil society for
planning and implementation if available. Support NEA and THL in implementing any
specific plans and their monitoring if necessary.
(vii) Develop THL’s and NEA’s manuals for community development plans, livelihood restoration
programs, and gender mainstreaming with other experts.
(viii) Develop corporate systems for measuring and checking compliance with social safeguard
requirements acceptable internationally.
(i) Review the EA and IAs’ procurement and inventory management systems.
(ii) Develop a policy and manuals for procurement, process, contracts, operations and
maintenance, and inventory management.
(iii) Set up technical standards for hydropower development for the EA and IAs.
(iv) Assess a technical feasibility for the PPP demonstration project.
(v) Support the contractual process with EA and IAs in tendering, procurement, negotiation, and
financial arrangements and agreements as necessary.
(vi) Support NEA and THL in promoting their procurement processes of the Tanahu Hydropower
Project if necessary.
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Appendix 11
A. Background
1. Geological investigations for the Tanahu Hydropower Project (the project) have been
conducted to clarify geological conditions of the project site as required at each stage. During
the detailed engineering study (DES) stage, investigations were conducted for design in
accordance with the recommendations in the JICA’s feasibility study, 2007, and additional
geological investigations will be performed soon to obtain further information which will help
bidders precisely estimate their bid price (will prevent bidders from estimating higher bid
price with geological risks).
4. ADB and THL already agreed to the following financing demarcation for
implementation of the additional investigation as shown in Table 2:
5. The rock mechanical test will be conducted by a consultant, which will be engaged
according to ADB Guidelines on the Use of Consultants, under supervision of the PSC
consultant.
A11-1
Appendix 11
C. Schedule
7. The consultant services for rock mechanical test are expected to commence in the
second half of 2014. Table 3 shows schedule of the services.
In-situ deformability
test and block
shear test in dam
adits
In-situ deformability
test and block
shear test in
powerhouse adits
Rock stress
measurement in
powerhouse adits
Brief test report
Final report
= Deliverables.
1. General
9. The ToR stipulates consultant services for rock mechanical test. The consultant shall
conduct the services ranging from preparation of a detailed test plan including a detailed
schedule, testing at the site and analysis of testing data to preparation and submission of
reports to the client in accordance with the ToR.
10. The rock mechanical test shall be conducted in the exploratory adits which the client
will excavate under a contract between the client and a Nepalese contractor. The test to be
conducted is listed in Table 4.
A11-2
Appendix 11
11. It is noted that the testing in the dam left bank and right bank adits will be conducted
based on the geological assessments on investigations. Hence, the number of tests may
decrease or the tests in the dam adits may be decreased.
12. The objectives of each test are to obtain detailed condition and mechanical properties
of the rocks at the dam and the powerhouse sites through:
(i) In-situ deformability test; to obtain deformation properties of in-situ rock
masses,
(ii) Block shear test; to obtain strength properties of in-situ rock masses, and
(iii) Rock stress measurement by using HL cell; to assess the state of in situ
stress in the rock masses by measurement of the rock stress in a drilling hole
by using Hollow Inclusive (HI) cell.
3. Standards of Tests
13. The consultant shall conduct preparatory work, test procedures, analysis on
measurement data, etc., complying with international test standards such as “suggested
method” of International Society for Rock Mechanics (ISRM) or other standards
internationally used for each in-situ test.
4.1 Drilling
14. The consultant shall conduct drilling of the two holes with relevant diameter and
overcoring for the rock stress measurement.
4.2 Reporting
15. The consultant shall prepare and submit the following reports to the client;
16. Before the commencement of field work, the consultant shall submit inception report
describing following contents;
(i) Name and tasks of chief technician staffs assigned to the project.
(ii) Names of workers.
(iii) List of equipment to be used for each rock mechanical test.
(iv) Detailed procedure of each rock mechanical test and other proposed works.
(v) Time schedule of the site works including mobilization and demobilization.
(vi) Safety measures including the name of the chief safety controller, the list of
safety materials and the items of daily safety activity.
17. During the field work including mobilization and demobilization, the consultant shall
submit weekly field report describing following contents;
A11-3
Appendix 11
(i) Activities conducted in the field last week with relevant photographs.
(ii) Activities conducted in the field last week.
(iii) Issues to be solved if any.
18. Immediately after analysis on measurement results, the consultant shall submit a brief
report on test results. Timing of submission of the brief report shall be determined through
discussion with the client after the commencement of the services.
19. The consultant shall submit a draft final report compiling test results and describing
test procedures, actual time schedule and difference form test standards if any.
20. The consultant shall submit a final report into which the client’s comments will be
incorporated, within one month after the consultant receives them.
21. In the light of the tasks of the consultant, each expert’s ToR will include, but not
necessarily be limited to, the following tasks. Each expert will perform their tasks in
collaboration with their team members.
22. The outlined terms of references for each expert are as follows:
(i) Take the consultant’s responsibilities of the services as team leader in the field and at
their home office and coordinate time schedule of testing with the client.
(ii) Plan detailed program of all tasks for testing with time schedule to be carried out in
the field and at the home office.
(iii) Supervise preparatory work at the home office such as preparation of list of
equipment/devices/tools, checking of functions of equipment and devices for the
testing, packing of equipment/devices/tools, etc.
(iv) Supervise custom clearance at the airport in the consultant’s country and the airport
in Kathmandu.
(v) Supervise mobilization and demobilization at the site for in-situ deformability test and
block shear test.
(vi) Supervise preparatory work of in-situ deformability test and block shear test in the
field and also conduct tests in accordance with the test standards.
(vii) Conduct analysis on the measurement data in-situ deformability test and block shear
test and calculate rock mechanical properties.
(viii) Prepare inception report, weekly field report, brief test report, draft final report and
final report.
(i) Assist the chief rock mechanical test specialist in planning detailed program of tasks
for the testing with time schedule to be carried out in the field and at the home office
for in-situ deformability test and block shear test.
A11-4
Appendix 11
(ii) Conduct preparatory work for in-situ deformability test and block shear test at the
home office such as preparation of list of equipment/devices/tools, checking of
function of equipment and devices for the testing, packing of equipment/devices/tools,
etc.
(iii) Conduct tasks for mobilization and demobilization at the site for in-situ deformability
test and block shear test.
(iv) Supervise activities of national technical staff and workers for all field work such as
mobilization, testing and demobilization for in-situ deformability test and block shear
test.
(v) Conduct preparatory work of in-situ deformability test and block shear test in the field
and also conduct tests in accordance with the test standards.
(vi) Conduct analysis on the measurement data of in-situ deformability test and block
shear test and calculate rock mechanical properties.
(vii) Prepare inception report, weekly field report, brief test report, draft final report and
final report.
(i) Assist the chief rock mechanical test specialist in planning detailed program of tasks
for testing with time schedule to be carried out in the field and at the home office for
in-situ deformability test and block shear test.
(ii) Conduct preparatory work for in-situ deformability test and block shear test at the
home office such as preparation of list of equipment/devices/tools, checking of
functions of equipment and devices for the testing, packing of
equipment/devices/tools, etc.
(iii) Supervise activities of national technical staff and workers for all field work such as
mobilization, testing and demobilization for in-situ deformability test and block shear
test.
(iv) Conduct preparatory work of in-situ deformability test and block shear test in the field
and also conduct tests in accordance with the test standards.
(v) Conduct analysis on the measurement data of in-situ deformability test and block
shear test and calculate rock mechanical properties.
(vi) Prepare inception report, weekly field report, brief test report, draft final report and
final report.
(i) Assist the chief rock mechanical test specialist in planning detailed program of tasks
for testing with time schedule to be carried out in the field and at the home office for
in-situ deformability test and block shear test.
(ii) Conduct preparatory work for in-situ deformability test and block shear test at the
home office such as preparation of list of equipment/devices/tools, checking of
functions of equipment and devices for the testing, packing of
equipment/devices/tools.
(iii) Check geological conditions in the exploratory adits and select the test points of rock
deformability test and block shear test.
(iv) Prepare detailed geological sketches at testing points of in-situ deformability test and
block shear test before and after testing
(v) Supervise activities of national technical staff and workers for field work such as
mobilization, testing and demobilization for in-situ deformability test and block shear
test.
(vi) Conduct preparatory work of in-situ deformability test and block shear test in the field
and also conduct tests in accordance with the test standards.
A11-5
Appendix 11
(vii) Assist other team members in conducting analysis on the measurement data and
calculate rock mechanical properties from the geological viewpoint.
(viii) Prepare inception report, weekly field report, brief test report, draft final report and
final report.
(i) Assist the chief rock mechanical test specialist in planning detailed program of tasks
for rock stress measurement with time schedule to be carried out in the field and at
the home office.
(ii) Take responsibilities of team members’ activities at the home office and in the field for
rock stress measurement.
(iii) Supervise preparatory work for the rock stress measurement at the home office such
as preparation of list of equipment/devices/tools, checking of functions of equipment
and devices for the testing, packing of equipment/devices/tools, etc.
(iv) Supervise custom clearance at the airport in the consultant’s country and the airport
in Kathmandu.
(v) Supervise mobilization and demobilization at the site for rock stress measurement
(vi) Supervise preparatory work of rock stress measurement in the field and also conduct
tests in accordance with the test standards.
(vii) Conduct analysis on the measurement data of initial stress measurement and
calculate rock stresses at the site.
(viii) Prepare inception report, weekly field report, brief test report, draft final report and
final report.
(i) Assist the chief rock mechanical test specialist in planning detailed program of tasks
for rock stress measurement with time schedule to be carried out in the field and at
the home office.
(ii) Conduct preparatory work for the rock stress measurement at the home office such
as preparation of list of equipment/devices/tools, checking of functions of equipment
and devices for the testing, packing of equipment/devices/tools, etc.
(iii) Conduct mobilization and demobilization at the site for rock stress measurement.
(iv) Supervise activities of national technical staff and workers for field work such as
mobilization, testing and demobilization for rock stress measurement.
(v) Supervise drilling for rock stress measurement.
(vi) Supervise preparatory work of rock stress measurement in the field and also conduct
tests in accordance with the test standards.
(vii) Conduct analysis on the measurement data of initial stress measurement and
calculate rock stresses at the site.
(viii) Prepare inception report, weekly field report, brief report, draft final report and final
report.
A11-6
Appendix 12a
TERMS OF REFERENCE
Panel of experts
- Dam Safety Expert
A. Background
1. The Tanahu Hydropower Project is located on the Seti River in Damauli, Tanahu District,
Nepal. The project will provide stable electric power supply from a renewable energy source to
cope with increasing power demand in Tanahu District and the interconnected Nepali power
network, thereby contributing to national economic development, improvement of civil life of the
population, and assisting to combat climate change. The project components include the
construction of a hydropower plant (140 MW), and transmission and rural electrification.
2. To address the serious sedimentation load in the Seti River, the dam will be equipped
with sediment flushing facilities. The facilities will consist of two flushing conduits embedded into
the base of the dam wall in the middle of the river cross-section, with a sill level of 320 m asl.
Three gates will be installed in each conduit that will be opened fully during sediment flushing
operations once the reservoir level has been reduced to 345 m asl or lower. The reservoir will
be emptied once a year and sediment will be discharged through the sediment flushing conduits
by tractive force of river flow.
3. The project executing agency, Tanahu Hydropower Ltd. (THL) will employ Project
Supervision Consultants (PSC) to manage project construction as well as the initial 5 years of
project operation following the project commissioning. Once hired, the PSC will review and
finalize the dam design, including structural safety and seismic design. A Dam Safety Expert will
be appointed by THL to undertake periodic, comprehensive and independent reviews of the
design and construction of the dam and other civil structures, initial filling of the reservoir and
sediment flushing operations, during implementation and initial 5 years of operation of the
project. The objectives of the reviews are to provide advice and guidance to THL and PSC to
support safe, economic, state of the art designs; objectivity and credibility in the dam safety
assessment; efficient, expeditious and high quality construction; minimization of adverse
impacts on the physical and social environment from engineering perspective; and proper
provisions for initial filling, sediment flushing and emergency preparedness. A Panel of Experts
(POE) will comprise three experts including the Dam Safety Expert, an Environmental Expert
and a Social Development Expert. The latter two experts will also be appointed to review and
provide advice on all environmental and social aspects of the project. As far as possible, the
POE shall meet concurrently, with the exception of special meetings which may be convened to
review particular technical aspects.
B. Scope of Work
4. The subjects on which the Dam Safety Expert is expected to comment and assess are
listed below (The expert may have assistance from other experts if required). The expert should
also comment on any other matter which it perceives to be important to the safe and successful
completion and operation of the project.
(i) Flood Hydrology: The extent and sufficiency of data, the methodology for derivation of
extreme and design floods (including floods due to precipitation as well as due to glacial
lake outburst), the procedures for routing floods through the reservoir and the impact of
floods downstream of the power plant;
A12a-1
Appendix 12a
(ii) Seismic Hazard Assessment: The identification of sources of seismic activity, the
assignment of earthquake magnitudes to each source, and the methodology for
derivation of vibration parameters at the site for maximum credible and design basis
earthquakes.
(iii) Engineering Geology: The quality and sufficiency of the geological investigations and
the interpretation thereof; the correctness of the geological and hydrogeological models
of the region, reservoir area and dam site; the engineering implications with respect to
foundation design, stability of natural and excavated slopes; and support of surface and
underground excavations.
(v) Sedimentology: Estimates of sediment load that will enter the reservoir; the design and
operation of the sediment flushing system and the likelihood of achieving desired effects.
(vii) Hydraulic Structures Design and Layout: The hydraulic and structural design and
specifications for the spillways, energy dissipation facilities, diversion facilities, sediment
flushing facilities, power tunnels and tailrace facilities; the procedures for routine
inspection of the dam and checking safety of structures, including organization and
staffing.
(viii) Construction of Dams and Hydropower Facilities: The construction planning studies,
temporary facilities, access to the sites, the master schedule for implementation,
conditions of contract; contractors’ proposals in relation to plant, construction
procedures, schedule, river diversion; the organization, staffing and procedures for
managing the construction of the project and quality assurance.
5. The Expert's work shall include, but not limited to, the following:
(i) Provide high level and professional independent advice and guidance to support
objectivity and rigour in the dam safety assessment process.
(ii) Share technical expertise and knowledge and contribute to dialogue amongst project
supervision consultants, EA, government and financiers.
A12a-2
Appendix 12a
(iii) Conduct site visits to assess the performance of PSC and the contractors in terms of
implementation of civil works.
(iv) Examine the monitoring program designed for the construction and operation phases on
dam safety aspects to determine if objectives and activities are appropriate in light of
current and predicted project impacts. Recommend revisions and/or additional
components as necessary.
(v) Consult with relevant stakeholders during field visits; record their concerns and
expectations; and develop recommendations to address valid concerns.
(vi) Conduct annual dam safety inspections during the initial 5 years of project operation.
6. The POE will have a Chairman appointed from among the Members of the POE to
coordinate internal and external communications of the POE, to call and chair its meetings, to
optimise the membership's activity and to provide balance to its reviews and recommendations.
The composition of the POE, and the areas of expertise which it covers may be varied during
the course of the project as considered appropriate by THL in consultation with ADB and/or the
cofinanciers.
21. The POE will convene at regular intervals to review the status of project progress. The
frequency of meetings and their timing will be adjusted to conform to the schedule of project
works in progress, but the time between meetings may not normally exceed six months. At each
meeting, the scheduled dates for the next meeting and tentative timing for the subsequent
meeting will normally be fixed to enable POE members to arrange their individual schedules.
Extraordinary meetings of the POE may be called on critical situations, and the services of
individual members may be solicited between meetings as considered necessary or desirable
by THL with copies of their input being sent to other POE members.
22. The Expert will prepare and submit written proceedings of the meetings (regular or
extraordinary), including observations and recommendations, within three weeks of the
meetings, and in case of emergency will prepare technical memoranda or aide memoires during
the meetings. A preliminary report will be prepared before the adjournment of each meeting.
23. One month prior to issuance of bidding documents for construction of headworks and
underground powerhouse, the Expert shall submit an evaluation report on dam safety aspects
of the design. During construction, the Expert shall prepare regular monitoring reports as
required. During the initial 5 years of operation, the POE shall prepare and submit an annual
dam safety assessment report in December of the same year.
24. All reports will be submitted to THL and through them to the cofinanciers for review.
25. The Dam Safety Expert shall have wide, specialized international experience of at least
15 years including developing countries in Asia, in the following fields:
A12a-3
Appendix 12a
26. At appropriate times during the design and construction of the Project, the Dam Safety
Expert will be enlarged by the addition of specialists in the following fields:
- Flood Hydrology
- Seismology
- Sedimentology
- Concrete Technology
- Environment
- Mechanical and Electrical Design of Hydropower Facilities
27. In addition the Dam Safety Expert may request the assistance on a temporary basis of
specialists in other areas, where they consider it advisable.
28. The expert may be recruited as an individual consultant through firm. The person-
months requirement for the Dam Safety Expert is as follows:
A12a-4
Appendix 12b
TERMS OF REFERENCE
Panel of experts
- Environmental Expert
A. Background
1. The Tanahu Hydropower Project is located on the Seti River in Damauli, Tanahu District,
Nepal. The project will provide stable electric power supply from a renewable energy source to
cope with increasing power demand in Tanahu District and the interconnected Nepali power
network, thereby contributing to national economic development, improvement of civil life of the
population, and assisting to combat climate change. The project components include the
construction of a hydropower plant (140 MW), and transmission and rural electrification. The
project executing agency (EA), Tanahu Hydropower Ltd. (THL) will employ Project Supervision
Consultants (PSC) to manage project construction as well as the initial 5 years of project
operation following the project commissioning.
2. A Panel of Experts (POE) will be appointed for the project comprising a Dam Safety
Expert, an Environmental Expert and a Social Development Expert. The POE members
generally work together when on the assignment with the exception of special meetings which
may be convened to review particular technical aspects.
B. Scope of Work
3. The Environmental Expert will monitor the implementation of environmental impacts and
mitigation measures. The expert should also comment on any other matter which might be
perceived as important by the project authorities to successfully complete the operation of the
project. These activities are outlined in the following planning instruments:
4. The expert will also refer to the Project Administration Memorandum and the loan
documents.
5. The Expert's work shall include, but not limited to, the following:
(i) Review implementation plans to determine if this fully complies with ADB
safeguards and to assess appropriateness of provisions in terms of mitigation
measures, monitoring plan, budget, institutional arrangements and compliance
mechanisms. Recommend ways to mediate with non-conformance reports and to
resolve issues related to compliance;
(ii) Determine if the EMP provisions for mitigation and monitoring are being
implemented properly by EAs, all contractors, and consultants.
(iii) Conduct site visits to assess the performance of THL and NEA and the
contractors in terms of implementation of environmental mitigation and
monitoring measures specified in the EMP. Consult with relevant stakeholders
during field visits; record their concerns and expectations; and develop
recommendations to address valid concerns;
A12b-1
Appendix 12b
(iv) Determine if the EMP (for all project phases) is fully cost and if funding sources
have been identified and committed.
(v) Comment on the cumulative nature of the impacts – both impacts that result from
the project and those exerted on the project from other sources.
(vi) Recommend corrective actions in case environmental mitigation measures are
not sufficient and/or considered to deviate from requirements of ADB’s safeguard
policies.
(vii) Assess the adequacy of baseline surveys and analysis, and determine if there is
a need to collect additional baseline data to be used as basis for assessing
operational impacts in terms of water quality, hydrology, erosion and
sedimentation, terrestrial and aquatic ecosystems, fisheries, biodiversity, and
environmental issues linked to the principles of integrated water resources
management.
(viii) Examine the monitoring program designed for the construction and operation
phases (for water quality, forestry, biodiversity, wastewater, soil erosion and
siltation, air quality, fauna, aquatic resources, solid waste, spoils) to determine if
objectives and activities are appropriate in light of current and predicted project
impacts. Recommend revisions and/or additional components as necessary.
(ix) Examine and recommend current institutional capacity within THL/NEA,
particularly its environmental and social management unit to address
environmental safeguards compliance issues.
(x) Review the time schedule for the environmental mitigation programs and assess
whether the schedule is appropriate for effective implementation and whether it is
in compliance with safeguard policies;
(xi) Review reports from consultants of the environmental mitigation programs (Seti
River Fish Conservation Management Plan, Water Release and River Safety
Management Plan, Wildlife Conservation and Awareness Management Plan,
Watershed/Forest Management Plan), communicate with those consultants to
determine if their advices and suggestions are fully complied by THL and NEA
and the contractors.
(xii) Assess the capacity of THL and NEA in implementing of EMP.
(xiii) Assess the operation of the grievance redress mechanism for dispute resolution.
Review grievance redress mechanism (GRM) consultative notes, decisions and
comments to ascertain its adequacy, impartiality, and timeliness. Make
recommendations to redress areas that, in the consultant’s view, may not
conform to ADB safeguards and the government environmental regulations.
Facilitate and mediate with EA to resolve any environmental issue which has not
been resolved by GRM.
(xiv) Propose any actions in consultation with other POE members and project
stakeholders, on any specific environmental issues which arise during project
implementation.
(xv) Share findings and knowledge with EA and co-financiers, and contribute to
initiate a dialogue amongst project supervision consultants, EA, government and
financiers on environment impacts and mitigation measures.
(xvi) Meet the external monitoring organization and agree appropriate on-going
monitoring strategies if any.
6. The POE will have a Chairman appointed from among the Members of the POE to
coordinate internal and external communications of the POE, to call and chair its meetings, to
A12b-2
Appendix 12b
optimize the membership's activity and to provide balance to its reviews and recommendations.
The composition of the POE, and the areas of expertise which it covers may be varied during
the course of the project as considered appropriate by THL in consultation with ADB and/or the
cofinanciers.
7. The POE will convene at regular intervals to review the status of project progress. The
frequency of meetings and their timing will be adjusted to conform to the schedule of project
works in progress, but the time between meetings may not normally exceed six months. At each
meeting, the scheduled dates for the next meeting and tentative timing for the subsequent
meeting will normally be fixed to enable POE members to arrange their individual schedules.
Extraordinary meetings of the POE may be called on critical situations, and the services of
individual members may be solicited between meetings as considered necessary or desirable
by THL with copies of their input being sent to other POE members.
8. The Expert will prepare and submit written proceedings of the meetings (regular or
extraordinary), including observations and recommendations, within three weeks of the
meetings, and in case of emergency will prepare technical memoranda or aide memoires during
the meetings. A preliminary report will be prepared before the adjournment of each meeting.
9. After the completion of environmental mitigation activities, the Expert shall submit an
evaluation report on the entire operation to the EA and co-financiers for review. During the
construction phase the project, the Expert will prepare regular monitoring reports at least on
annual basis on the progress of implementation of EIA, IEEs, and the Environmental Addendum
with EMP as required. During the initial 3 years of project operation, the expert will prepare and
submit an annual assessment report in December with other panel members.
10 All reports will be submitted to THL and through them to the cofinanciers for review.
11. The Expert shall have wide, specialized experience of at least 20 years in the following
fields:
(i) Preparing and implementing environmental management plans for storage type
hydropower projects;
(ii) Reviewing environmental baseline data;
(iii) Designing and carrying out environmental impact analysis, baseline studies,
developing of detailed cost estimates and schedules for environmental
management plans,
(iv) Executing environmental impact mitigation and monitoring plans; and
(v) Implementing public consultation and disclosure processes.
A12b-3
Appendix 12c
TERMS OF REFERENCE
Panel of experts
- Social Development Expert
A. Background
1. The Tanahu Hydropower Project is located on the Seti River in Damauli, Tanahu District,
Nepal. The project will provide stable electric power supply from a renewable energy source to
cope with increasing power demand in Tanahu District and the interconnected Nepali power
network, thereby contributing to national economic development, improvement of civil life of the
population, and assisting to combat climate change. The project components include the
construction of a hydropower plant (140 MW), and transmission and rural electrification. The
project executing agency (EA), Tanahu Hydropower Ltd. (THL) will employ Project Supervision
Consultants (PSC) to manage project construction as well as the initial 5 years of project
operation following the project commissioning.
2. A Panel of Experts (POE) will be appointed for the project comprising a Dam Safety
Expert, an Environmental Expert and a Social Development Expert. The POE members
generally work together when on the assignment with the exception of special meetings which
may be convened to review particular technical aspects.
B. Scope of Work
3. The Social Development Expert will monitor the implementation of social development
activities including land acquisition leasing land through the negotiated settlement, community
development, income restoration and improvement of project-affected persons (APs), and
gender-related actions. The expert should also comment on any other matter which might be
perceived as important by the project authorities to successfully complete the operation of the
project. These activities are outlined in the following planning instruments:
4. The expert will also refer to the Project Administration Memorandum and the loan
documents.
5. The Expert's work shall include, but not limited to, the following:
(i) Review the entire process of negotiated settlement followed in land acquisition and
leasing land for project activities paying special attention to the transparency and
adequacy of the process and the quality of consultations with project-affected
persons.
(ii) Assess the progress of implementation of RIPP. Determine whether the entitlements
of AP including the affected indigenous peoples (janajathi) households are being
provided on time.
(iii) Assess the impacts of CDS and GESI during the construction phase and first three-
years of project operations.
A12c-1
Appendix 12c
(iv) Visit project sites to assess resettlement impacts, mitigation measures, and conduct
consultations with AP including the affected janajati households to ascertain their
views on RIPP implementation.
(v) Review the time schedule for impounding, site development, land allocation,
compensation, infrastructure development in the resettlement sites and assess
whether the schedule is appropriate for effective implementation relocation activities
of the affected people and whether it is in compliance with safeguard policies;
(vi) Assess the capacity of THL and NEA in implementing of RIPP, CDS and GESI.
(vii) Assess the operation of the grievance redress mechanism for dispute resolution.
Review grievance redress mechanism (GRM) consultative notes, decisions and
comments to ascertain its adequacy, impartiality, and timeliness.
(viii) Review and assist in revising (if required) livelihood restoration and improvement
programs of the project paying special attention to the CDS.
(ix) Propose any actions in consultation with other POE members and project
stakeholders, on any specific social issues which arise during project
implementation.
(x) Share findings and knowledge with EA and co-financiers, and contribute to initiate a
dialogue amongst project supervision consultants, EA, government and financiers on
resettlement, socioeconomic development and project impacts on AP including
indigenous peoples.
(xi) Assist EA to develop a comprehensive, user-friendly resettlement and social
development database and to maintain it.
(xii) Examine and report on the socioeconomic conditions of self-relocated households
using the SIA data as the baseline. Include their socioeconomic data periodically into
the project social database.
(xiii) Facilitate and mediate with EA to resolve any social issue which has not been
resolved by GRM.
(xiv) Meet the external monitoring organization and agree appropriate on-going monitoring
strategies if any.
6. The POE will have a Chairman appointed from among the Members of the POE to
coordinate internal and external communications of the POE, to call and chair its meetings, to
optimise the membership's activity and to provide balance to its reviews and recommendations.
The composition of the POE, and the areas of expertise which it covers may be varied during
the course of the project as considered appropriate by THL in consultation with ADB and/or the
cofinanciers.
7. The POE will convene at regular intervals to review the status of project progress. The
frequency of meetings and their timing will be adjusted to conform to the schedule of project
works in progress, but the time between meetings may not normally exceed six months. At each
meeting, the scheduled dates for the next meeting and tentative timing for the subsequent
meeting will normally be fixed to enable POE members to arrange their individual schedules.
Extraordinary meetings of the POE may be called on critical situations, and the services of
individual members may be solicited between meetings as considered necessary or desirable
by THL with copies of their input being sent to other POE members.
A12c-2
Appendix 12c
8. The Social Development Expert will prepare and submit written proceedings of the
meetings (regular or extraordinary), including observations and recommendations, within three
weeks of the meetings, and in case of emergency will prepare technical memoranda or aide
memoires during the meetings. A preliminary report will be prepared before the adjournment of
each meeting.
9. After the completion of land acquisition and leasing land for each project component
through negotiated settlement modality, the Expert shall submit an evaluation report on the
transparency, fairness and adequacy of the entire operation to the EA and co-financiers for
review. During the construction phase the project, the Expert will prepare regular monitoring
reports at least on annual basis on the progress of implementation of RIPP, CDS, and GESI as
required. During the initial 3 years of project operation, the expert will prepare and submit an
annual assessment report in December with other panel members.
10. All reports will be submitted to THL and through them to the cofinanciers for review.
11. The Expert shall have wide, specialized experience of at least 20 years in the following
fields:
A12c-3
Appendix 13
A. Scope of work
1. Experienced individual experts from NGO will be responsible for assisting and
monitoring in the implementation of land acquisition and resettlement in compliance with the
ADB approved Resettlement and Indigenous Peoples Plan (RIPP) and Safeguard Policy
Statement (SPS), and the Project Administration Memorandum (PAM). The individual experts
will assist the Environmental and Social Management Unit (ESMU) of the Tanahu Hydropower
Limited (THL). The experts are expected to be recruited in accordance with the Guidelines on
the Use of Consultants (2010, as amended from time to time). Any goods and equipment
financed by the CDTA will be procured under ADB’s Procurement Guidelines (2012, as
amended from time to time). For these purposes, the project provisions $387,000 under ADB
finance.
2. The services are expected to be from April 2013 to December 2014. The outline terms of
reference will include, but not necessarily be limited to, the following tasks:
1. Meaningful Consultations
3. For effective implementation of RIPP, it is imperative that there are regular consultations
held with the affected persons (AP) especially those who are vulnerable. Vulnerable households
include indigenous peoples, landless, women, especially women-headed households, poverty
groups disabled and senior persons as defined in RIPP. The absence of legal title to land
should not be a bar for compensation.
4. The NGO’s individual experts will engage in subsequent meaningful consultations with
the affected communities especially members of the vulnerable households. These
consultations would be to spread correct and adequate information regarding the project as well
as to address any concerns or issues raised by the affected households. This would in turn
foster a sense of security and confidence among the affected communities which is pivotal to
smooth implementation of the RIPP. This will also help the affected household’s especially
vulnerable households to access their rights and entitlements as well as seek answers to their
queries at the local level/doorstep.
5. As part of these consultations, the NGO individual experts will also carry information
campaigns. The NGO will be responsible for designing, planning and implementing an
information campaign in the Project affected areas to inform the Project affected households
about the project, its benefits and adverse impacts, the entitlement policy and procedures to
avail their respective entitlements. The campaign would include measures such as distribution
of information booklets, leaflets, notices and other materials among the AP (affected persons),
community meetings, public announcements, and any other measures necessary to provide
information to all the AP. The information campaign would include dissemination of information
on the following:
(i) The need for land acquisition, wherever necessary;
(ii) The likely consequences of the project on the communities;
(iii) The resettlement and rehabilitation policy and entitlements;
(iv) Assist AP in getting the compensation for their land and properties acquired;
A13-1
Appendix 13
6. The experts will be responsible for advising the AP on how best to utilize any cash that
may be provided under the project, with emphasis placed on using such funds in sustainable
way e.g. purchasing replacement land for that acquired, starting income generation activity.
7. The experts shall verify the information and actions contained in the IRPP and the
individual losses of the AP. The experts will establish rapport with AP, consult and provide
information to them about the respective entitlements as proposed under the IRPP, and
distribute entitlement and identity cards to the eligible AP household heads. The identity cards
may include a photograph of the AP, the extent of loss suffered due to the project, and the
choice of the AP with regard to the mode of compensation and assistance.
8. The experts will develop coordination between the AP and the ESMU. This will be
achieved through regular meetings with both the ESMU and the AP. All meetings and decisions
taken shall be documented by the experts. The experts will also be responsible for the following:
(i) prepare a list of the project-displaced persons/families for relocation, enlisting the
losses and the entitlements, along with their verification process. The experts shall
display the list of eligible AP in prominent public places if required.
(ii) During the identification and verification of the eligible AP, ensure that each of the AP
is contacted and consulted either in groups or individually. Specially ensure
consultation with women from the AP families especially women headed households.
(iii) Monitor if the absence of legal title to land should not be a bar for compensation,
resettlement and rehabilitation assistance, and if vulnerable groups are entitled to
special benefit and assistance packages in addition to compensation and
resettlement, in accordance with the RIPP.
(iv) While finalising the entitled persons for compensation/assistance, make a list of
entitled AP, and distribute identity cards to each family head verified eligible AP.
(v) Ensure if the valuation costs of land and resettlement are reasonable at the
replacement costs among the areas.
(vi) Update the EMSU’s database of AP and record resettlement information including
the valuation, compensation payments, receipts, and dates, assess their compliance
with RIPP, SPS, and PAM, before and after land acquisition and resettlement, and
submit progress reports to EMSU, ADB, and a panel of experts on a semi-annual
basis.
(vii) Ensure payments and land acquisition in compliance with RIPP, PAM, and ADB’s
SPS in THL prepares withdrawal applications for ADB’s financing for the costs of
land acquisition and resettlement.
(viii) Prepare an evaluation report at the end of land acquisition and resettlement.
3. Income Restoration
9. The experts will play a key role in the income restoration and rehabilitation measures for
the adversely affected AP. As per the RIPP, these measures are applicable for those
households who have been identified as vulnerable and those whose primary source of income
will be affected by the project.
10. The surveys have identified that majority of the affected households will lose their
agriculture land, businesses and others. The census has indicated that no households have
been affected whose primary source of income is fishing in the Seti river. However migrant
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(floating) fisher-folk may do occasional fishing in the Madi River and in downstream areas of the
Seti River as reported in the EIA (Environment Impact Assessment). Considering the same, the
following responsibilities for the experts have been identified:
(i) Identify and categorize those AP whose primary source of income would be affected
by the project. The experts will also ascertain the extent of impact on their sources of
income.
(ii) Through meaningful consultation, apprise the eligible households regarding their
entitlements as spelt out in the RIPP.
(iii) Identify the type of income restoration plan needed for each household depending on
the extent of impact on them as well as the skill set they possess. This would be
through meaningful consultations held with the households.
(iv) Undertake market feasibility studies to assess the economic feasibility of the options
chosen by AP. In consultation with another consultant for the community
development strategy (CDS), the experts will help ESMU plan out livelihood
restoration activities as per CDS and RIPP. Emphasis will be paid on the vulnerable
groups.
(v) The experts would help CDS carry out skill training as required (based on the skill
assessment carried out).
(vi) The experts would also be responsible for liaisoning with the various government
departments and financiers, in order to create a link among the government
schemes, financiers’ requirements and the affected groups needs.
4. Cultural heritage
11. The experts will follow up any potential impacts and mitigation measures on cultural
heritage including intangible cultural heritage if required. Where applicable, the experts will
conduct surveys and advise appropriate actions in consultation with the stakeholders including
ESMU, AP, local governments, and contractors.
12. The experts along with the ESMU will be responsible for developing a program of
interaction with government departments to ensure effective land acquisition, compensation and
implementation of rehabilitation activities. These government departments and Ministries would
include the following:
(i) Ministry of Home Affairs (Office of Chief District Officer): to implement resettlement
and rehabilitation activities of the project
(ii) Ministry of Land Reform and Management (District Land Revenue Office): to verify
parcels, facilitate land acquisition, transfer land entitlement as well as for valuation
of land parcels
(iii) Ministry of Local Development
(iv) Ministry of Forest, Department of Forest & Soil Conservation: to facilitate with
community forest related issues
(v) Ministry of Agriculture: to develop and implement agriculture based livelihood
restoration programs and trainings
(vi) District Development Committee: to facilitate land acquisition process and address
the grievance of affected population and the community
(vii) Village Development Committee: to facilitate rehabilitation process and resolve
grievance redressal at the local level
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Appendix 13
13. The experts along with the Public Information Centres (PIC) established at the project
level would be responsible for spreading information regarding the GRM to the AP. This would
include information on the rights of the AP in the GRM and the procedure for accessing the
GRM. The experts will also assist the AP in assessing the GRM if required by any AP.
14. Considering the nature and scale of the project, it would necessitate spreading
information regarding risks such as HIV/AIDS among the project affected communities. Some of
the key suggested method of carrying out information dissemination programs would include:
(i) Organize public meeting in different project location and distribution of information
and awareness material on HIV/AIDS and drugs/human trafficking.
(ii) Organize information dissemination session targeting to the risk group population on
the different topics of HIV AID and drugs/human trafficking and likeliness of grooming
sex trade and human trafficking activities due to the influx of outsiders in construction
Projects and likeliness of increasing the extravagant activities like; alcoholism and
gabling due to cash flow from the project.
(iii) Video show on related to HIV/AIDS and human trafficking and other social evils
(alcoholism and gambling).
15. The experts to be selected for the tasks enumerated above must have experience in
resettlement implementation, carrying out information and awareness and livelihood
improvement program. The experts have to be of national/international repute and have
experience in working in projects of this scale and preferably involving multilateral funding.
Specifically, key quality criteria include:
(i) Experience in direct implementation of programs in local, similar and/or neighbouring
districts.
(ii) Experience in resettlement survey, planning, monitoring and evaluation including
different social problems (e.g. HIV/AIDS and drugs/human trafficking, alcoholism and
gambling).
(iii) Integrity to represent vulnerable groups against abuses, and experience in
representing vulnerable groups, demonstrable mandate to represent local groups.
(iv) Availability of trained staff capable of including AP and target groups into the
programs;
(v) Competence, transparency and accountability based on neutral evaluations, internal
reports, and audited accounts; and
(vi) Demonstrated experience in computerizing database.
16. The following staffing provision for individual experts is given for smooth and effective
implementation of the RP within the time frame:
(i) Social Development Expert/Team Leader
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