32300-IND-TACR00030

							                                                       TA 4106 –IND: Kerala Sustainable Urban Development Project
                                                                                               Project Preparation



11.          OUTLINE IMPLEMENTATION ARRANGEMENTS
11.1       Project Management and Administration
A Project Management Office (PMO) is responsible for overall coordination, management and
administration of the Kerala Sustainable Urban Development Project (KSUDP). The PMO will be
responsible for overseeing components under KSUDP, which includes urban infrastructure
improvement, urban management, and implementation assistance. The PMO will be responsible for
Project implementation along with Project Implementation Units (PIUs) established in each Municipal
Corporation. The implementation arrangement is indicated Figure 11-1.

The urban infrastructure component comprising water supply, sewerage and sanitation, solid waste
management, urban drainage, urban roads and transport, and community infrastructure will be
implemented through the PIU housed in each Municipal Corporation. Project development and
implementation assistance will be provided through Project Management Consultants (PMC) and
through Design and Supervision Consultants (DSC). The PMO will be directly responsible for urban
management component, which comprises institutional development (capacity building and training)
activities at the state-level and municipal-level, policy review and formulation and legislative and
administrative framework assistance at the state-level. Kudumbashree will channel funds for poverty
alleviation programs and facilitate the municipal corporations in implementing poverty alleviation
programs; capacity building of Kudumbashree staff will form a key part of the urban management
component.

The PMO will also be responsible for overseeing the operations of the Kerala Local Government
Development Fund (KLGDF), managed by a Fund Management Company (FMC), Kerala Local
Government Infrastructure and Financial Services Limited (KLGIFSL). KLGDF will be made
available to the five municipal corporations, 53 Municipalities and other Local Self Governments.
KLGDF will provide financial assistance for urban infrastructure creation to borrowing LSGs; it will
also support LSGs through project development and implementation assistance. KLGDF through
KLGIFSL will report physical and financial progress to the PMO, which will in turn be reported to
GoK, GoI and ADB. Social and Environmental Safeguards will be followed for all projects
undertaken by KLGDF and in lines with the frameworks detailed in Volume 8. KLGDF will also
ensure that all projects comply with the safeguards and that ADB is kept informed of all activities
ensuring such compliance. The PMO- KLGDF relationship is detailed in Figure 11-1.

11.2       Executing and Implementing Agencies
11.2.1          Executing Agency
The Local Self Government (LSG) Department of the State government would be the Executing
Agency (EA) of the Project and will be responsible for overall strategic guidance, technical
supervision, execution of the project, and ensuring compliance with the loan covenants. A state-level
Project Management Office (PMO), led by a full-time Project Director executes the project; he/she
will have no other duties within the LSG or elsewhere. The Project Director, supported by the PMO
and consultants, will (i) coordinate all activities under the Project; (ii) will be responsible for overall
project implementation, monitoring, and supervision; and (iii) will directly report to the Secretary,
LSG (Urban) Department.


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                                                   TA 4106 –IND: Kerala Sustainable Urban Development Project
                                                                                           Project Preparation


A state-level Empowered Committee (EC) will be set-up with full powers to decide on matters related
to the project. The Project Director would be the member secretary; the members of the committee
include the Chief Secretary (chairperson), Secretaries of Planning, Finance, Local Self Government,
Water Resource (or represented by MD, KWA and Chief Engineer, Minor Irrigation) and Public
Works and the project city Mayors. The Director, Kudumbashree will also form a part of the EC.
Other relevant officials may be invited as necessary. Once the project is made effective, the EC will
meet regularly to review project performance and decide on major issues, such as counterpart funding,
implementation bottlenecks, land disputes, special procurement, policy reforms, etc.

A Tender Approval Committee (TAC) comprising Secretary, LSG (U), Secretary, Finance, and PD,
KSUDP will approve all tenders related to KSUDP implementation; the EC will delegate powers related to
tender approvals to the TAC. The TAC will take decisions related to all tenders under KSUDP.

11.2.2          Implementing Agencies
Given the multiplicity of functions and the overlap in service provision, identifying the implementing
agency is critical for smooth operations. A Project Implementation Unit (PIU) within the Municipal
Corporation will be responsible for implementing the urban infrastructure components and
coordinating the urban management and institutional development component at city level. The MC
will administer the Community Infrastructure Fund (CIF) and Poverty Social Fund (PSF), conforming
to GoK’s policy of decentralizing planning and service delivery; Kudumbashree will play an active
role in overseeing the utilization of the two funds for poverty alleviation.

A city-level Steering Committee (SC) in each Project city chaired by the Mayor would be constituted
for overcoming any bottlenecks in sub-project progress. The SC would constitute the Mayor, District
Collector, Corporation Secretary, representatives of State-level departments in the town (Public
Works Department, Electricity Board, Kerala Water Authority, Pollution Control Board, etc.), the
standing committee chair persons of works and health and representatives of chamber of commerce,
industry and NGOs. Besides reviewing Project progress, the SC also sorts out local issues and
provides guidance on policy matters. Figure 11-2 indicates the project management arrangements.
The members of the Civil Society Organization (CSO) will jointly discuss and provide guidance to the
SC on poverty alleviation projects. Kudumbashree will continue to play an active role in advising and
monitoring activities facilitating poverty alleviation, in addition to channeling funds for poverty
alleviation programs.

11.3       Project Implementation Management
11.3.1          Project Management Office (PMO)
The PMO is responsible for:

a)    Appointing project management consultants, detailed design and construction supervision
      consultants, benefit monitoring and evaluation (BME) consultants, public relations and
      community awareness consultants, and NGOs;
b) Approving the design of the investment components prepared by the project cities;
c)    Pre-qualifying contractors;



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                                                     TA 4106 –IND: Kerala Sustainable Urban Development Project
                                                                                             Project Preparation


d) Reviewing public relations and community awareness programs;
e)    Preparing standard bid documents to comply with ADB guidelines;
f)    Monitoring the tendering process and guiding the project cities in bid evaluation and preparing
      bid evaluation reports for approval by ADB;
g) Procuring equipment and services at the state-level;
h) Ensuring project compliance with loan covenants;
i)    Coordinating with ADB on matters related to disbursements;
j)    Conducting the training and capacity building programs;
k) Providing support under the institutional development assistance; and
l)    Maintaining project accounts and submitting timely reports (including monthly project
      performance reports, quarterly progress reports, BME reports) to ADB and GoK.
The PMO is headed by the Project Director and supported by two deputies – Deputy Project Director,
Technical and Deputy Project Director, Administration and Human Resources. The PMO is staffed
with senior level technical, financial, social, capacity building/management and procurement officers
to manage all technical, procurement and loan account administration; a total of 17 professional staff
and 13 support staff will constitute the PMO. An accounting and administrative unit manages
procurement and loan account administration.
The EC will authorize the DPD, Technical, to provide technical sanctions to all works under KSUDP
after carrying out suitable proof-checking of designs. The DPD will involve other members of the
PMO to evaluate the detailed designs prepared by the Design and Supervision Consultants or Turnkey
Contractors before providing technical sanctions.
Outline duties and responsibilities of the PMO are provided in Appendix 9.

11.3.2          Project Implementation Units (PIU)
The PIU will be established within each Municipal Corporation. The responsibilities of the PIU
include:

a)    Carrying out detailed surveys, investigations and engineering designs of individual city
      components;
b) Tendering, evaluating bids and awarding works, contract administration, supervision and quality
   control;
c)    Measuring works carried out by the contractors and certifying payments;
d) Conducting community mobilization and awareness programs,
e)    Carrying out the Benefit Monitoring and Evaluation (BME) studies;
f)    Carrying out environmental assessments;
g) Ensuring project city compliance with loan covenants; and
h) Preparing monthly reports.



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                                                     TA 4106 –IND: Kerala Sustainable Urban Development Project
                                                                                             Project Preparation


The Design Supervision Consultant (DSC) supports the PIU in all the aforesaid activities (refer section on
Project Management and Consulting Services). A Project Manager will head the PIU and will be supported
by sector specialists in water supply, sewerage, and civil engineering. The PIU will also comprise staff
involved in procurement, accounts and community development. Staff deputed from the Revenue
Department shall handle all land acquisition and resettlement and rehabilitation issues. Each PIU will
comprise approximately 10 professional staff and seven support staff. The Project Manager at the PIU will
report to the Secretary, Municipal Corporation, and the Project Director at the PMO. All administrative
and project co-ordination related issues will be handled by the Secretary. The Secretary will also be
authorized to release payments to contractors based on the approval/certification of the Project Manager,
PIU, and subject to fund release by the PMO. The Secretary shall interface with the Municipal Corporation
Council and KSUDP regarding Project progress.

Outline duties and responsibilities of the PIU are provided in Appendix 9.

11.3.3          Project Implementation Support Services
Consulting services are required for project management, engineering design, construction
supervision, procurement of goods and services, public relations and awareness, and BME.
Consultants would be selected and engaged in accordance with ADB’s Guidelines on the Use of
Consultants and other arrangements satisfactory to ADB for selecting and engaging domestic
consultants.

      Project Management Consultant (PMC). A Project Management Consultant group comprising
      international and domestic firms will assist the PMO in project management activities including
      reviewing engineering designs, procurement, and implementation. The PMC also assists the
      Project Management Office (PMO) and the Project Implementation Units (PIUs) in project
      formulations, management, monitoring and evaluation, financial and environmental management
      aspects, public relations and awareness, training and capacity building, and institutional
      development/strengthening.
      Design and Supervision Consultant (DSC). The main objectives of the DSC is to update maps
      and plans, undertake survey, investigations and prepare detailed designs of various project
      components for each project city, prepare technical specifications and contract documents, assist
      in construction supervision and quality control, and undertake works measurement.
      Community Awareness and Participation Consultant (CAPC). A domestic Community
      Awareness and Participation Consultant firm appointed will facilitate community awareness and
      participation programs (CAPP) on project related issues.
      Benefit Monitoring & Evaluation Consultants (BMEC). A domestic Benefit Monitoring &
      Evaluation (BME) consulting firm recruited by the PMO will identify and evaluate broad
      macroeconomic, socio-economic and environmental impact of the Project and ensure that project
      facilities are managed efficiently and the benefits of the project reach the target groups.
      Non-Governmental Organizations (NGOs). NGOs recruited in each project city will assist in
      public awareness campaigns and benefit monitoring and evaluation, and resettlement monitoring.
      The NGOs for the aforesaid activities will be selected by the PIU in consultation with the
      municipal corporation. NGOs will also form a part of the CSO to help identify and finalize the
      poverty alleviation component.


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