CONSULTING SERVICES1

A.             Background and Objective
1.       The Viet Nam Railway Corporation (VNR), the Executing Agency (EA), has the
responsibility to implement the proposed Asian Development Bank (ADB)-financed Yen Vien–
Lao Cai Railway Upgrading Project (the Project), which is a part of the Greater Mekong
Subregion (GMS) Kunming–Hai Phong Transport Corridor.2 Within VNR, the Railway Project
Management Unit (RPMU) will be the implementing agency responsible for project preparation,
procurement, implementation, liaison with ADB, and related activities. A firm of international
consultants will be recruited under the Project to assist with detailed design, procurement
activities, and construction supervision and to monitor various other loan and Project-related
activities. The recruitment of consulting services will be done in accordance with ADB’s
Guidelines on the Use of Consultants and on the basis of the detailed terms of reference (TOR).
2.      The main objectives of the consulting services are to ensure that the procurement of civil
works and materials under the proposed Project are undertaken in an economical and efficient
manner, consistent with widely accepted engineering standards and practices for such works,
and to the satisfaction of the Government, VNR, ADB, and cofinanciers. The international
consultants should ensure that on-the-job training is provided and transfer of engineering and
project management experience is transferred to associated VNR and RPMU staff.
3.     The project preparatory technical assistance (PPTA) consultant prepared the Project
Feasibility Study including preliminary designs. The PPTA consultant has identified four major
contract packages for procurement. Three contract packages for civil works (including track
renewal), financed by ADB and AFD, will be procured using international competitive bidding
(ICB) procedures as per ADB’s Procurement Guidelines. The fourth contract package for rails,
track switches and fittings that will be financed by DGTPE tied-assistance will be procured only
from French contractors, in accordance with the French Ministry of Finance’s guidelines for
procurement under the Emerging Countries Facility (ECF) loans.
4.             In general the works to be carried out under each civil works contract will comprise:

       (i)        Realignment of railway tracks in some section, including rebuilding of new bridges;
       (ii)       Rehabilitation of selected existing bridges;
       (iii)      Replacement of steel girders in selected bridges;
       (iv)       Repairs to bridge substructures;
       (v)        Building new station complete with tracks and station facilities;
       (vi)       Constructing new passing loop tracks and extension of existing passing loops at
                  selected stations;
       (vii)      Renewal of track complete with new rails and switches/turnouts (supplied under a
                  separate contract), concrete sleepers, elastic fastenings; and ballasting;
       (viii)     Civil works related to stabilization of embankment/side slope, protection of
                  embankment slopes, and drainage;
       (ix)       Safety works including road over bridges (over passes) and improvements to level
                  crossings; and
       (x)        All building works at stations, including access road to stations, platform,
                  upgrading/extension, and stores and freight facilities (where applicable).
     This outline terms of reference is based on the detailed terms of reference for consulting services for detailed
     design, construction supervision, and monitoring under the Project.
     The Project is cofinanced with Agence Française de Développement (AFD) and the Treasury and Economic Policy
     General Directorate (DGTPE) of the French Ministry of Finance.
B.     Scope of the Services
5.      The services to be provided by the consulting services will include but will not be limited
to the following:
       a.      Detailed Design

               (i)     review of preliminary design done by the PPTA consultants;
               (ii)    conduct environmental, socioeconomic, geographic, and geodetic
                       surveys at sites;
               (iii)   provide the technical specifications for the procurement and construction
                       contracts, including procurement of rails, switches, fastenings, and
                       related materials;
               (iv)    prepare detailed designs of all civil works and track works, including
                       getting approval of the relevant designs by VNR;
               (v)     prepare the detailed and general cost estimates based on the detailed
                       design; and
               (vi)    it is expected that at the stage of detailed design the consultant will
                       review the requirements and the preliminary design proposals and come
                       forward with innovative solutions that will facilitate efficient and economic
                       project implementation. As for example while considering the replacement
                       of girders it should be investigated if replacing some steel members
                       and/or strengthening of others, replacement expenditure on the whole
                       girder can be avoided. It may be possible to economize in other areas.
       b.      Procurement and Contract Supervision
6.      The consultant is responsible for preparation of the prequalification documents, bid
documents, criteria for assessment of prequalification submissions, and tender documents for
all bidding packages of the Project in compliance with relevant regulations of the Government,
ADB, and other cofinanciers. The contract packages that are jointly financed by ADB and AFD
will be procured in accordance with ADB’s Procurement Guidelines. The contract package of rail
and switch procurement financed by DGTPE will be in accordance with DGTPE guidelines. The
consulting services will provide assistance for evaluation of bids up to the stage of contract
7.      In all stages, the consultant will ensure compliance with the Government and VNR
requirements and standards and relevant international engineering standards wherever
practicable. The consultant will assist RPMU including, but not limited to the following:
           (i)     compile prequalification and bid documents for international procurement as
                   per ADB’s Procurement Guidelines;
           (ii)    submission of prequalification and bid documents and criteria of assessment
                   to the Government, ADB, and the cofinanciers (if needed) for approval;
           (iii)   draft the invitation to bid and specific procurement notices for inclusion in the
                   Asian Development Bank Business Opportunities and UNDP;
           (iv)    revise prequalification and bid documents based on the comments of the
                   Government, ADB, and other cofinanciers;
           (v)     convene the prebid meeting and field trip;
           (vi)    respond to bidders’ queries;
           (vii)   check conformity of the prequalification and bid s to eligibility criteria in the
                   bidding documents,
           (viii) bid evaluation in accordance with ADB’s and Government’s requirements,
           (ix)    clarify of any issues with bidders,
           (x)        prepare a bid evaluation report to ADB and Government for approval, and
           (xi)       assist in contract award procedures and submission of contract documents to
                      ADB and Government.

8.      The consultants will assist RPMU in the procurement of technical support equipment
following the ADB’s international shopping procedures.

      c.           Supervision of Procurement, Construction Supervision, Monitoring of
                   Project Progress and Budget Control
9.     The consultant will assist the RPMU in the day to day supervision of international
procurement activities that will include, but limited to, the following:
           (i)     prepare documents to finalize the contracts with the successful bidders,
           (ii)    provide advisory assistance to VNR in completing the signing of contracts,
           (iii)   issue orders for supplying and commissioning the equipment,
           (iv)    administer contracts (including management of performance securities, return
                   of bid bonds, advance payments etc.),
           (v)     manage contractual queries,
           (vi)    check and monitor supplier’s delivery program, staff training, spare parts, and
                   commissioning proposals and warranties,
           (vii)   review supplier’s quality control program,
           (viii) assist the RPMU in inspecting materials, equipment, and machinery to
                   ensure they comply with the specifications, and give immediate notice to
                   suppliers in the event of noncompliance,
           (ix)    advise of any needed changes to plans or specifications,
           (x)     assist RPMU in reviewing and examining claims arising from suppliers in
                   relation to time extensions for delivery, additional payments, and other
                   matters that may arise from time to time during contract implementation,
           (xi)    upon completion of procurement, inspect the goods and certify completeness
                   or otherwise,
           (xii)   review suppliers’ ongoing commitment to training of VNR staff,
                   commissioning of equipment, supply of spare parts, equipment warranties,
                   and supply of end user manuals, and
           (xiii) assist RPMU in the release of payments and performance bonds under the
           (xiv) The contracts will be administered under the FIDIC Conditions of Contract.
           (xv)    preparation and monitoring of a project implementation program and
                   reporting procedures,
           (xvi) liaison with ADB and other relevant bodies,
           (xvii) preparing withdrawal applications under ADB loan and other required
           (xviii) preparing Project accounts and financial statement in accordance with the
                   Loan and Project agreements, and
           (xix) preparing quarterly and annual progress reports as required under the Loan
                   and Project agreements.
      d.           On-the-Job Training Assistance
10.   The consultant will provide associated VNR and RPMU staff with on-the job training in:
         (i)   procedures for the engagement of consultants,
         (ii) international procurement,
         (iii) project management
                (iv)   preparation and submission to ADB a Project Completion Report in accordance
                       with the requirements set forth in the Loan and Project Agreements.

11.    The consultants will provide any additional services related to the Project upon request
and approval of the Government on the basis of justifiable and mutually acceptable billing
rates/costs. Such additional services will also be subject to prior approval by ADB.
C.           Required Expertise
12.     Approximately 200 person-months of international consultants and 524 person-months
of national consultants will be needed. The consultants will have expertise in: detailed design of
project components, international procurement under ADB’s Procurement Guidelines,
management and contract administration, construction supervision, and monitoring of
implementation of environmental, updating, implementation and monitoring of resettlement plan,
socioeconomic impact assessment and project performance monitoring of the Project. The
following expertise will be required: (i) procurement and project supervision specialist for review
and preparation of documentation and assisting in bidding, award, and contractual issues
associated with the procurement process under the Project; (ii) engineering expertise (in various
disciplines) for preparation of detailed designs; and (iii) resettlement, social, and environmental
experts. The consultants will be required to make their own arrangements under the
Consultant’s Contract for appropriate English/Vietnamese translation and interpretation service
that may be required.
D.           Submission of Reports
13.  The consultant will submit two copies each of the following reports to ADB, AFD, and
     (i)        a brief monthly report highlighting the progress made and main developments during
                the month reported, and any problems that need to be brought to the attention of
                ADB, should be faxed to ADB by the third week of every month.
     (ii)       A detailed quarterly progress report should cover all aspects of the services and the
                Project covering the progress made during the quarter and on a cumulative basis,
                program of work for the next quarter, difficulties encountered and assistance needed,
                if any.
     (iii)      A final report to be submitted on completion of services that will summarize all
                consulting activities and their results.
E.           Facilities
14.     Offices, laboratories, transportation, and accommodation for the consultant’s fulltime and
short time international and national staff, and RPMU counterparts (all furnished and equipped,
together with appropriate services, maintenance, and consumable stores) for the project will be
provided through the civil works contracts.

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