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Consultant's Study Report




Under Portfolio Management Subproject of TA 4790-PRC
Document Stage: Final
February 2009




Study on Effective Implementation of ADB Projects
in the PRC




The views expressed in this report are those of the Consultant and do not necessarily reflect the views and
policies of the Asian Development Bank or its Board of Governors or the government they represent.
                                                                                                                                




                                               Table of Content 
 
EXECUTIVE SUMMARY ............................................................................................. I 
综述 .......................................................................................................................... X 
I.      BACKGROUND ............................................................................................... 1 
A.      ADB PROJECTS IN PRC ..................................................................................... 1 
B.      PURPOSE OF THE STUDY .................................................................................... 1 
C.      SCOPE OF WORK ................................................................................................ 2 
II.     METHODOLOGY ............................................................................................. 2 
III.    MAIN FINDINGS AND RECOMMENDATIONS................................................ 2 
A.      REVIEW OF CPRMS ........................................................................................... 2 
B.      ISSUES RELATING TO PROCEDURES AND POLICIES .............................................. 4 
      B.1  Start-up Delays .......................................................................................... 4 
      B.2  Procurement Issues ................................................................................. 12 
      B.3  Project Implementation Delay .................................................................. 19 
      B.4  Project Disbursement Delay .................................................................... 20 
      B.5  Financial Management Issue ................................................................... 21 
      B.6  Specific Sector Issues.............................................................................. 23 
C.      ISSUES RELATING TO EAS/IAS’ CAPACITY ......................................................... 24 
      C.1  Issues Caused by EAs/IAs’ Low Capacity ............................................... 24 
      C.2  Survey and Results on EAs’ Capacity of Project Implementation
      Management ...................................................................................................... 26 
      C.3  Survey and Results on the Needs for EAs/IAs’ Capacity Building ........... 29 
      C.4  Recommendations to strengthen EAs/IAs’ Capacity................................ 32 
IV.     ANNEX ........................................................................................................... 37 
ANNEX 1..................................................................................................................... 37 
ISSUES AND REASONS IDENTIFIED BY CPRMS ............................................................. 37 
ANNEX 2..................................................................................................................... 46 
SECTOR SPECIFIC ISSUES IDENTIFIED BY CPRMS ....................................................... 46 
ANNEX 3..................................................................................................................... 49 
QUESTIONNAIRE ON PROJECT IMPLEMENTATION MANAGEMENT .................................. 49 
ANNEX 4..................................................................................................................... 56 
QUESTIONNAIRE ON NEEDS FOR EA AND IA CAPACITY BUILDING ................................. 56 
 
                                                                                     i 

                                Executive Summary

1.    The objective of this study is to identify the major constrains and issues that
impede effective project implementation of ADB projects in the PRC and to
recommend measures to improve project implementation according to the findings.

2.     The study focused on project implementation phase of the Project Cycle. It
also covered the pre-approval stage as many actions and actions taken before
signing of the loan agreement are, to a great extent, critical to the successful
implementation of project.

3.      The study looked at two areas. One was procedures and policies of ADB
and the government, and the other was EAs/IAs’ capacity in project implementation.
For the first part, the study examined two sets of requirements in project processing
and implementation of the government and ADB, and then looked at the possibility of
coordination and harmonization of the requirements. For the second part, the study
investigated constrains and weaknesses of EAs/IAs’ capacity in project
implementation, and then recommended approaches to strengthen their capacity in
the identified areas.

4.      As of 31 December 2007, ADB’s total loan commitment to PRC since
commencement of its operations in 1987 comprises 133 public sector loans for
$18,906 million. Of which, 79 loans are closed and 54 loans are ongoing. The portfolio
in the PRC is one of ADB’s largest portfolios and has been one of the best among
ADB’s developing member countries.

5.       However, issues impeding smooth project implementation do exist. ADB has
been continuing making efforts on improving the effectiveness of project
implementation in the PRC for the past 20 years, including periodically reviewing the
portfolio performance and taking actions to handle the issues existed. The Country
Portfolio Review Mission (CPRM) was one of the periodical reviews.

6.     While affirming achievements in the PRC, CPRMs also analyzed the issues
existed during implementation of loan projects. Based on the analysis, action plans
were developed to deal with the issues. However, the study found that the following
issues were repeatedly mentioned in the most of CPRMs:

           Start-up delays;
           Procurement issues;
           Project implementation delays;
           Project disbursement delays; and
           Financial management issue.

7.      Start-up delay implicates that ADB loans in the PRC from loan approval to
loan effectiveness took more time than ADB wide average. This issue was identified
by each CPRM from 2000 to 2006. From loan approval to loan signing, time
consumed in the PRC stays about 2 to 3 months more than the ADB wide average,
while the number of months from loan signing to effectiveness is close to the ADB
                                                                                       ii 

wide average. As a result, the start-up delay of ADB’s projects in the PRC is mainly
reflected in the stage of from loan approval to loan signing.

8.     Since CPRM 2000, ADB and the Government made a plenty of efforts to
shorten the time from loan approval to loan effectiveness. ADB made a specific
study and workshop on ADB and the Government approval procedures and the
Government improved its appraisal procedures. With these efforts by ADB and the
Government, the situation has not been significantly improved. Further two steps
were proposed by CPRM 2006 to help find solution to this issue.

9.       The study examined ADB and the Government procedures for project
approval. ADB’s procedure is to approve a loan for a project which is ready to
implement technically and financially while the Government’s procedure is to approve
a capital investment project which is ready to implement technically. Both
procedures start from the same point – 3-Year Rolling Plan for Using ADB Loan /
Country Programming Mission.           Both procedures proceed closely until loan
negotiation. Before loan negotiation, ADB accomplishes loan fact-finding and project
appraisal meanwhile the Government approves the project proposal and project
feasibility study report. After loan negotiation, ADB and the Government procedures
work in each own way. It is easy for ADB to approval a loan, but it takes time for EAs
to go through the remaining Government approval procedure. EAs/IAs need more
time to finish preliminary design and detailed design, and then get approval to start
implementing their projects. To avoid unnecessary payments of commitment fees
which commence from the sixtieth day of the signing of loan agreements, EAs intend
to take no action to sign the legal documents until their readiness. To continue binding
EAs/IAs’ activities with ADB’s procedure, CPRM 2006 proposed two points in the
Project Readiness Checklist of Six-Point Action Plan. These two points include: (i) the
bidding documents and procurement plan for packages over $100,000 for the first full
year and (ii) draft invitation documents including proposed shortlists for recruitment of
consultants must be submitted to ADB before the circulation of project documents to
ADB Board for approval.

10.     To ensure EAs/IAs can start procurement process upon loan approval, the
study recommended that EAs/IAs (i) sign agreement with a design institute for
preliminary design during the period of feasibility study, so that the design institute
could prepare the preliminary designs for the contracts in the first year; and (ii) have
the preliminary designs for the contracts in the first year prepared before loan
approval. The study therefore recommended that ADB add ‘review of preliminary
designs for the contracts in the first year’ to the scope of PPTA and to TOR of PPTA
consultant.

11.    Another repeated issue identified by CPRMs is procurement issue. It
includes delay in bidding process, slow response time from ADB, poor quality of
bidding documents, unrealistic annual targets for contract awards, low bids, and
mismatch between ADB and domestic procedures.
                                                                                      iii 

12.    In 2001 and 2002, two studies were carried out to find the reasons for these
procurement issues. Reasons relating to procedures and policies were also
mentioned in CPRMs as follows:

            Incorrect evaluation criteria were included in the bidding documents
            and/or applied during bid evaluation, particularly for NCB contracts;

            There were differences in the application of NCB procedures by the
            EAs/IAs;

            In some cases, bidders were provided with both English and Chinese
            versions of bidding documents by EAs/IAs. However, in some portion of
            the bidding documents, there were key differences between the English
            and Chinese Version.

13.    In fact, the procurement issues are caused by the mismatch between ADB
procurement guidelines and the Government procurement law and regulations - the
Tendering and Bidding Law of China, the Interim Provisions on Evaluation
Committees and Bid Evaluation Methods.

14.   The mismatches can be found in the steps of establishing bid evaluation
committee and evaluating bids.

15.     With regard to the bid evaluation committee, ADB procurement guidelines do
not have specific requirements on the composition of bid evaluation committee.
However, the Government has detailed requirements on the composition of bid
evaluation committee. The Government requires that the members of bid evaluation
committee have to be selected randomly from the pool of experts. Some of the
experts were familiar with ADB’s guidelines and evaluation procedures and others
may be not.

16.     The second mismatch between ADB and the Government procurement
procedures is evaluation and comparison of bids. ADB procurement guidelines
require that the contract should be awarded to the bidder whose bid substantially
responses to the biding documents with the lowest evaluated cost. This lowest
evaluated cost includes the financial adjustment of bid prices from the deviation of the
commercial and technical parts of bid. But the Government's is different. Firstly the
Government has no requirements to adjust the bid prices for those deviations which
are permissible and can be ‘translated’ fairly into monetary values. Secondly the
Government has several methods to evaluate bids.

17.     However, both the Tendering and Bidding Law and the Interim Provisions
have exceptional clauses. According to the exceptional clauses, if ADB has its rules
on the composition of evaluation committee and evaluation methods, EAs/IAs should
follow ADB’s rules rather than the Law and the Provision of the Government.
Therefore, ADB should consider including detailed requirements on procurement in
the Project Administrative Memorandum (PAM), including the composition of
evaluation committee, bid evaluation method, and so on. Therefore, the study
                                                                                       iv 

recommended that ADB include detailed procurement requirements in the
procurement section of PAM on the composition of bid evaluation committee and bid
evaluated method.

18.     Following harmonization of ADB and the Government procurement
procedures, some policy changes on procurement were recommended. The study
recommended that ADB use Model Bidding Documents (MBDs) for procurement
through National Competitive Bidding (NCB). With the assistance from World Bank,
MOF is now preparing MBDs for procurement of goods and civil works through NCB
in projects that are financed by the international financial institutions. These MBDs
are updated based on the 1997 version of the Chinese Model Bidding Documents for
World Bank financed projects in the PRC. MBDs will be officially in Chinese language.
The use of MBDs could help EAs/IAs, particularly new EAs and IAs, understand ADB
procurement requirements and handle language obstacle. The use of MBDs could
also help improve the quality of bidding documents.

19.    The study also recommended that ADB increase the threshold of ICB for civil
works, based on the situation of local market in the PRC and the fact that there were
almost no international competitors to bid civil works contracts in the PRC. The
increase of threshold of ICB will accordingly increase the number of contracts
procured through NCB procedure. By using MBDs, the competition and quality of
NCB will not reduce.

20.     In addition, the study recommended that ADB delegate full function of
procurement to its resident mission in the PRC (PRCM). This delegation could help
ADB improve its communication with EAs and IAs on the issues in bidding documents,
and also improve the efficiency of bidding document reviews by ADB. The delegation
can start from NCB procurement and then extend to ICB procurement. The efficiency
of procurement could be improved accordingly. This practice has been testified as
practical and efficient in World Bank Beijing Office.

21.     As ADB’s bid evaluation method is to award contracts to the lowest
substantially responsive bids. Some domestic bidders submitted low-priced bids so
that they could get the contracts, while during execution of the contract, these
contractors sought price adjustments by various negative ways, such as deliberate
slowdown of work progress. A study on PRC Roads Sector Portfolio also identified the
issue of low bids.

22.     An interim measure was agreed by ADB to adoption of higher performance
security for low-priced bids. However, this measure is unfair to those who plan to
enter the construction market from outside with low-price strategy. A higher
performance security included in the bidding document implicates that ADB admits
that low-priced bids are deliberated or malicious like Ministry of Transport defined. In
fact, during bid evaluation, it is hard to judge the motivation of a bidder who submits a
low-priced bid. Only contractors’ performance can prove whether their low bids are
deliberated/malicious or not. Therefore, the study recommended that ADB set up a
                                                                                        v 

system to record the performance of contractors who submitted low bids and conduct
further study in this regard.

23.     Project implementation delay, another repeat issue, was mainly reflected by
widely happened extension of loan closing date. The reasons for project
implementation delay are, in addition to the start-up delay, (i) slow process of
procurement, (ii) changes of project scope, and (iii) slow financial closing out of
projects.

24.    Slow process of procurement was sometimes due to the poor quality of
bidding documents and bid evaluation reports. Poor quality of bidding documents
and bid evaluation reports led to the clarification by ADB. These questions and
answers prolong the process of procurement.

25.     Changes of project scope are another reason for project implementation delay.
It always takes time to evaluate changes of project scope by the Government and
ADB. It also involves additional inputs and resources from both the Government and
ADB.

26.     The third reason for project implementation delay is that EAs need more time
to financially close out their projects. This occurred in the project where (i) the
measures of works were not taken in time, which caused arguments between
employers and contractors; (ii) the variation orders could not be accepted by EAs, if
the costs of variation exceed the budgets of engineering; and (iii) financial records
were not clear or completed so that EAs need more time to clean their financial
records. This situation becomes common in transport sector.

27.      To solve these issues, efforts are needed from both ADB and the Government
sides. The study recommended that MOF make necessary study on the reasons for
loan extension and take action to avoid the loan extension if the physical progress
completes and financial issues are the only reason for loan extension. The Notice
issued by the Economic Construction Department of MOF is a good practice to follow.
The study also recommended that ADB (i) pay closer attention to the projects which
will close within one year, particularly the financial aspect, to see whether the projects
can be closed in time (ii) make a study on project cost estimated by design institutes
to explore the reasons for inaccurate project cost estimate and find ways for ADB’s
project teams to judge the accuracy of project costs estimated by design institutes. In
these aspects, necessary study under ongoing TA will be undertaken.

28.     Implementation delay in Agriculture and Natural Resources Sector needs to
be stressed, because it was caused by EAs and IAs due to multi-levels administration,
other than the reasons mentioned above. Implementing agencies located at provincial,
municipality, and county levels caused difficulty in coordination among EAs and IAs.
In response to Country Partnership Strategy (2008-2010), ADB loan portfolio in the
PRC will have strategic change with reducing of loan in the transport sector and
increasing lending in rural development. Following this change, ADB’s lending will
involve working closer with municipal and local governments, implementation
                                                                                       vi 

agencies who have little or no experience dealing with ADB or other international
organizations.

29.     Coordination will be one of crucial factors to ensure well implementation of
projects in this sector. The study recommended that EAs prepare a project
implementation manual (PIM) with assistance of PPTA consultants and be ready
when loan becomes effectiveness, particularly for the projects involving many EAs
and IAs at multi-levels. PIM could comprise different manuals and plans in detail, such
as financial management manual, procurement manual, environmental monitoring
plan, ethnic minority development plan, resettlement action plan, etc. PIM could help
different EAs and IAs to understand how to implement the project with the same
procedures, timeframe, and standards, etc. PIM should be distributed to every staff
in EAs and IAs in order to guide their work.

30.    Disbursement delay is another repeat issue. ADB has been taking steps to
improve    efficiency   of  disbursement.     Full    disbursement    function for
PRCM-administered project had been delegated to PRCM. For EAs/IAs side,
disbursement was slow sometimes because they took long time to prepare and
process the withdrawal applications. This undermines the efforts made by ADB. A
number of projects are much behind in achieving their disbursement targets.

31.      One of aspects for this issue is internal approval of payment application. It
sometimes took long time for the end users to obtain disbursements. The
verification of withdrawal applications by finance bureaus and line bureaus from
county, city to province is a quite time-consuming process. This mainly occurred in
agriculture and natural resources sector which involves multi-level of EAs and IAs.

32.     The study recommended that MOF discuss with local financial bureaus to
update the approval procedures for withdrawal application and payment procedures.
For example, the withdrawal applications are reviewed by each financial bureau at
different level, but the payment is made directly from provincial financial bureau to the
end users. Further study in this regard will be carried out under ongoing TA.

33.     The issue of financial management was mainly reflected in late submission
of audited project accounts and poor quality of auditors’ reports. The main reason for
late submission of audited project accounts is that PMOs need more time to
summarize financial statements since there may be several levels involved in
preparation of financial statements, especially for social sector projects. This
particularly occurred in the projects which involved lots of IAs and two or three levels
of EAs. If the financial statements were prepared manually, it took more time for EAs
to consolidate the financial statements prepared by IAs or by lower EAs.

34.    The quality issue of audit reports includes:

            There were differences in loan disbursement between ADB’s records and
            EAs’ and IAs’ records;

            Some of the audit reports do not cover the requirements by ADB and
                                                                                  vii 

           some do not contain separate opinions on the audits of SOE transactions;

           Audit recommendations were not implemented by EAs and IAs, but no
           reason was provided;

           The financial statements contained in the audited project accounts were
           not signed by EAs’ and IAs’ management;

           Translation from Chinese to English was not in good quality.

35.      Solving these issues mainly depends on improvement of EAs and IAs
capacities on financial management. ADB has taken great efforts to solve these
issues and provided regular trainings for EAs/IAs on financial management. Besides
that, the study recommended that ADB require EAs to prepare financial management
manual, including the requirements on internal control of project, project accounting
and reporting, and disbursement procedures and documentation and submission of
audited project accounts and agency financial statements and make this manual as
one of preconditions for the first disbursement.

36.     The study also recommended that auditors set a deadline for EAs/IAs to
implement their audit recommendations and ADB would supervise EAs/IAs on
implementation of auditors' recommendation and review implementation progress
during its missions.

37.     Apart from issues related to procedures and policies, low capacity of EAs
and IAs was another critical issue impeding effective project implementation. Low
capacity of EAs and IAs not only means that EAs/IAs are not familiar with ADB and
the Government policies, guidelines, procedures, and requirements, but their capacity
in project implementation management in general as well. Several issues, such as
start-up delays, procurement issues, and disbursement issue are partly because of
low capacity in project management of EAs/IAs.

38.     To clearly understand EAs’ capacity of project implementation management,
ADB conducted a survey with EAs in August 2007. According to the results of survey,
EAs were equipped with adequate staff and got sufficient trainings on ADB’s
guidelines. But the following areas need to be improved as many EAs raised during
the survey:

           The training opportunity should be equally provided to all EAs so that
           every EA could get sufficient trainings;

           The training on project management should give more attention to how to
           manage a project, rather than implementing a project. For example, how
           project leading group to have meetings; how EAs to manage a project,
           such as how to use consultants, how to control the quality of a project;

           The training on project performance monitoring system should consider
           providing EAs with the technology of data collection and monitoring
           evaluation;
                                                                                       viii 

            The training on procurement should consider including the technology of
            quality control on procurement documents, in addition to preparation of
            procurement documents;

            Training on financial management should consider giving training on
            internal audit besides the trainings on internal control, accounting and
            reporting, and disbursement;

            Computerized accounting should be included in project financial
            management.

39.     In addition to the trainings provided by ADB, the role of consultants in
strengthening EAs’ capacity should be seriously considered by ADB team since it is a
normal practice for ADB’s projects in the PRC to have consultant service. Providing
trainings on ADB’s guidelines could be added to the terms of reference of consultant
services.

40.     To have a better understanding on EAs/IAs’ capacity in project
implementation management, another survey was conducted in September 2008.
This survey was carried out through a Questionnaire on Needs for EAs/IAs Capacity
Building.

41.      According to the results of the survey, EAs and IAs, including financial
bureaus staff, mentioned that the trainings they received were mainly on ADB’s
guidelines, such as procurement guidelines, disbursement guidelines, project
financial management, and PPMS, etc. The purpose of these trainings was to
illustrate the requirements of these guidelines. But EAs and IAs, including financial
bureaus staff, expressed that they need advance trainings on those topics through
case studies and demonstrating good practices.

42.     Second, EAs and IAs need lots of knowledge on project implementation,
besides ADB's guidelines. Some common knowledge is also critical to successful
implementation of an ADB loan project. Therefore, the trainings for EAs and IAs
during project implementation should include other knowledge relating to project
implementation management, such as project management, contract management
including variation control, engineering quality control, and so on.

43.     Third, implementation of ADB loan projects involves many institutions,
including financial bureaus, EAs, and IAs. Different institutions have requirements on
knowledge in different level as they are playing different roles in the project
preparation and implementation. Therefore, trainings on ADB guidelines should have
different focus for different target participants. For example, on procurement, EAs/IAs
need more detailed training than financial staff, as they usually supervise the activities
of procurement.

44.     The last but not the least, the trainings should be provided in accordance with
project implementation progress. In other words, training provided to participants
should be in time. Trainings on ADB project preparation should be conducted during
                                                                                        ix 

the period of project preparation, while trainings on disbursement and procurement
should be provided during the project inception. The training will be more efficient if it
is provided to participants just as they need it.

45.     Based on the results of survey on trainings provided to EAs/IAs and their
needs for strengthening their capacity, the study recommended that ADB cooperate
with universities / training centers to provide long term training course to EAs and IAs.
The study also recommended that ADB develop pool of trainers to provide routine
trainings to EAs and IAs so as to reduce ADB or PRCM staff workload of training.

46.      Different trainers should have different roles in providing trainings. The
university/training centers should provide series training courses to EAs/IAs,
individual trainers should give basic trainings to EAs/IAs, and ADB staff should pay
their attention to case study and best practices.

47.     The study recommended that ADB consider including the following into its
long-term training program:

            ADB guidelines, procedures, and requirements

                ADB’s requirements and procedures for loan processing;
                ADB disbursement guideline and procedures;
                ADB procurement guidelines, including quality control of procurement
                documents;
                Financial management;
                PPMS, including data collection and monitoring and evaluation; and
                Use of Standard Bidding Documents.

            Other knowledge in project implementation management

                Project management;
                Contract management;
                Engineering variation control; and
                Engineering quality control;

48.     The study also recommended that trainings be divided into two levels – basic
and advance. The basic level training shall provide introduction of ADB’s policies,
guidelines, procedures, and requirements. The advance level training could focus on
usage of ADB’s policies, guidelines, procedures, and requirements. Case studies and
best practice analysis can be carried out during the advance level training.

49.      Careful classification of trainees is also important to improve effectiveness of
training. The study recommended that trainees should be grouped for different levels
of training and different topics of training.
                                                x 


                       综述
1. 本研究的目的在于发现阻碍有效实施亚行在华项目的主要约束和问题,并根据
所发现的事实提出改进项目实施的建议。

2. 本研究主要集中于项目周期中的项目实施阶段。但是,它也涉及到贷款批准前
阶段,因为贷款协定签字前的许多活动在很在程度上对顺利实施项目是至关重要的。

3. 本研究涉及到两个方面。一个方面是亚行与国家的程序与政策,另一个方面是
项目实施期间执行机构与实施机构的能力。在第一方面,本研究调查了项目准备与实施
期间国家与亚行各自的要求,并探讨了协调与融合这两种要求的可能性。在第二方面,
本研究探讨了在项目实施期间制约执行机构与实施机构能力的瓶颈与执行机构与实施
机构能力的不足之处,并提出了在有关方面加强他们能力的方法。

4. 自亚行于 1987 年在华开展业务以来,截止到 2007 年 12 月 31 日,亚行在华的
贷款承诺额涉及到 133 个公共领域的项目,约 189.06 亿美元。其中的 79 个项目已经
关帐,别外的 54 个项目还在实施中。亚行在华业务是亚行最大的几个业务之一,并且
是亚行发展中成员国中实施的最好的之一。

5. 但是,阻碍项目顺利实施项目的因素仍然存在。在过去的 20 年里,亚行已经在
这方面持续进行了努力,试图改进在华项目的实施效率,包括阶段性对项目的实施情况
进行检查,采取措施解决存在的问题。国别项目检查就是这些阶段性项目活动之一。

6. 在肯定中国所取得的成绩的同时,国别项目检查也分析了贷款项目实施过程中
存在的问题。根据这些分析,形成了相应的行动计划。但是,本研究发现下述的问题在
大多数的国别项目检查中反复提到:

      项目实施启动迟缓;
      采购中存在着问题;
      项目实施延误;
      项目支付迟缓;
      财务管理中存在的问题。

7.   项目实施启动迟缓是指亚行在华贷款,从贷款批准到贷款生效所需要的时间超
过了亚行的全行平均水平。从 2000 年至 2006 年,每次的国别项目检查都注意到这个
问题。从贷款批准到贷款协定签字,中国项目所需要的时间比亚行的全行平均水平多出
2 个月至 3 个月。与此同时,从贷款协定签字到贷款协定生效,中国项目所需要的时间
接近亚行的全行平均水平。因此,亚行在华贷款项目实施启动迟缓主要反映在贷款批准
至贷款协定生效这段时间。

8. 自 2000 年国别项目检查以来,亚行和中国政府均采取的大量的措施来缩短贷款
批准至贷款协定生效所需要的时间。针对亚行和中国政府批准程序,亚行进行了一项特
别研究,并召开了研讨会。亚行和中国政府在评估程序上也作了改进。尽管如此,项目
实施启动迟缓的情况仍然没有得到显著地改善。为了能够解决这个问题,2006 年国别
项目检查进一步提出了两项新措施。

9. 本研究调查了亚行和中国政府的项目审批程序。亚行的程序是在于批准一个在
技术上和财务上均准备妥当的项目的贷款,而中国政府的程序是在于批准一个在技术上
已经准备妥当的基本建设项目。两个程序具有一个共同的起点是利用亚行贷款 3 年滚动
                                            xi 

计划。两个程序紧密协同,共同实施,直到贷款谈判。贷款谈判之前,亚行完成了项目
的实地考察,而中国政府也批准了项目的建议书和可行性研究报告。贷款谈判之后,亚
行和中国政府的审批程序便按各自的要求进行了。亚行较容易地通过了贷款批准程序,
但项目执行机构却需要一定的时间完成剩余的政府审批程序。    项目执行机构和实施机构
需要更多的时间完成初步设计和详细设计,在得到批准后开始项目实施。为了避免不必
要的承诺费支出(在贷款协定签字后 60 天开始计算),项目执行机构倾向于在项目实
施准备好之前不签署贷款协定。  为了将项目执行机构和实施机构的行为与亚行的程序继
续连续在一起,2006 年国别项目检查在“六点行动计划”的“项目准备度清单”中提
出了两点要求。这两点是:(1)第一年中 10 万美元以上合同的招标文件和采购计划和(2)
聘请咨询顾问的邀请文件草稿,包括所建议的咨询顾问短名单,必须在项目文件送亚行
执董会审批之前报送到亚行。

10. 为确保项目执行机构和实施机构能够在贷款协定获得批准时即开始采购,本研
究建议,项目执行机构和实施机构(1)应在项目可行性研究阶段即与设计单位就初步设计
签订合同,以便设计单位能够开始准备第一年施工合同的初步设计;  (2)应在贷款谈判前
完成第一年施工合同的初步设计。因此,本研究建议亚行在项目准备咨询援助的任务大
纲和工作范围中增加“审查第一年施工合同的初步设计”的要求。

11. 另一个在国别项目检查中经常出现的问题是采购问题。这个问题包括招标过程
迟缓、亚行回复缓慢、招标文件质量不高、不现实的合同授予年度目标、低价投标以及
亚行与国内采购程序的不协调。

12. 针对采购问题,在 2001 年和 2002 年,亚行开展过两次专项研究,试图找出采
购问题的原因。国别项目检查中也发现了与程序和政策有关的以下原因:

       招标文件中的不正确的评标标准或评标过程中使用的不正确的评标标准,特
       别是在国内竞争性招标过程中;

       项目执行机构和实施机构在采用国内竞争性招标程序时存在着不同的理解;

       在某些项目中,项目执行机构和实施机构向投标人提供了英文和中文两份招
       标文件。但是,在这些招标文件,某些部分内容的中英文描述是不一致的。

13. 实事上,采购问题是由亚行采购指南和中国政府采购法规(《招标投标法》和
《评标委员会和评标方法暂行规定》)不同引起的。

14.   这些不同具体反映在评标委员会的组成和评标两个方面。

15. 关于评标委员会的组成,亚行采购指南对此没有特别的要求。但中国政府却对
评标委员会的组成有着具体的要求。中国政府要求评标委员会成员必须从专家库中随机
抽取确定。这些专家中,有些是熟悉亚行采购指南和评标程序的,而有些则并非如此。

16. 亚行与中国政府在采购程序方面的第二个不同之处在于投标的评审与比较。亚
行采购指南要求合同应授予实质性响应了招标文件并且评标价最低的投标人。这里的最
低评标价包括对投标的商务和技术偏差所做投标价调整。但中国政府的投标评审与比较
却不是这样。首先,中国政府不要求根据那些偏差调整投标价,而那些偏差又是可以能
够公平地“转化”成货币价值的。其次,在中国存在几种不同的评标办法。

17. 但是,《招标投标法》和《评标委员会和评标方法暂行规定》都有例外条款。
根据这些例外条款,如果亚行在评标委员会的组成和评标方法方面有规定,项目执行机
                                          xii 

构和实施机构应该遵守亚行的相关规定。因此,亚行应该考虑在“项目管理备忘录”中
包括详细的关于采购的要求,包括评标委员会的组成、评标办法、等等。因此,本研究
建议,亚行在“项目管理备忘录”采购章节中规定评标委员会的组成方法和详细的评标
办法。

18. 为了协调一致亚行与中国政府的采购程序,应对采购政策做出一些调整。本研
究建议,亚行应使用国内竞争性招标采购文件范本(范本)。在世界银行的帮助下,财
政部正在编制国际金融组织项目国内竞争性招标货物和土建工程采购       。 “范
                                 “范本” 这些
本”是在 1997 年版世界银行贷款在华项目采购文件范本的基础上更新而成的。“范本”
将采用中文。使用“范本”将帮助项目执行机构和实施机构,特别是新成立的项目执行
机构和实施机构,理解亚行的采购要求,避免语言障碍。使用“范本”还可以帮助改进
招标文件的质量。

19. 本研究还建议,根据中国国内的市场环境以及几乎没有国际竞争者投标在华的
土建工程合同,亚行应提高土建工程国际竞争性招标的门槛。提高土建工程国际竞争性
招标的门槛将因此增加国内竞争性招标的合同数量。通过使用“范本”,国内竞争性招
标的竞争性和质量也不会因此而降低。

20. 另外,本研究还建议,亚行将采购的全部职能下放给其驻华代表处。这一放权
有助于亚行改善其与项目执行机构和项目实施机构关于招标文件中有关问题的沟通,还
可以改善亚行审查招标文件的效率。权力下放可以从国内竞争性招标采购开始,再延伸
到国际竞争性招标。采购的效率也可以由此而得以提高。这一做法已被世界银行驻华代
表的实践证明是可行且有效的。

21. 由于亚行的投标评审办法允许将合同授予实质性响应的最低评标价的投标。一
些国内的投标人便以较低的价格投标以便能够赢得合同,并在履行合同过程中,通过各
种不当方法索取价格调整,如蓄意减缓工程进度等。一项在华公路部分业务研究也提到
低价投标的问题。

22. 一个暂行的措施得到了亚行的认可,即对低价投标要求较高的履约保证金。但
是,这种措施对于那些计划采取低价策略进入建筑市场的商家来说是不公平的。在招标
文件中包含较高的履约保证金意味着亚行认可低价投标是蓄意的或如交通运输部所言
是恶意的。事实上,在投标评审过程中,很难界定低报价的投标人他们的动机。只有投
标人履行合同的表现才能证明他的低报价是否是蓄意或恶意的。因此,本研究建议,亚
行应建立一个系统,记录那些低报价承包商的行为,并就此展开进一步的研究。

23. 项目实施延误,是另一个被反复提到的问题,主要反映在众多的项目延长贷款
关账期。项目实施延误的原因,除了项目实施启动迟缓外,主要有(1)采购迟缓,(2)项
目范围改变,(3)项目决算迟缓。

24. 有时,采购迟缓是由于招标文件和评标报告的质量不高造成的。招标文件和评
标报告的质量不高导致了来自亚行方面的澄清要求。这些问与答延长了采购过程。

25. 改变项目范围是项目实施迟缓的另一个原因。中国政府和亚行需要花费较长的
时间对改变的项目范围进行评估。中国政府和亚行也需要为此投入额外的资源。

26. 第三个项目实施迟缓的原因是,项目执行机构需要更多的时间完成项目决算。
这种情况经常发生在:(1)工程计量没有及时进行,造成雇主与承包商之间出现纠纷;  (2)
如果变更费用超过工程预算,  变更令往往不为项目执行机构所接受;(3)财务记录不清楚
                                        xiii 

或不完整,以致项目执行机构需要更多的时间去清理他们的财务记录。这种情况在交通
行业较为普遍。

27. 为了解决这些问题,需要亚行和中国政府两方面都采取一些措施。本研究建议,
财政部就此展开一些研究,了解贷款延期的原因,如果项目工程已经完成而财务决算是
贷款延期的唯一原因,应采取措施避免贷款延期。财政部经济建设司制定的有关办法可
以借鉴。本研究还建议,(1)亚行应对还有一年即将关闭的项目给予密切注视,特别是在
财务方面,探讨它们是否能够按时关闭贷款账户;  (2)对设计单位的项目成本估算开展研
究,探讨项目成本估计不准确的原因,并探讨亚行项目准备团队判断项目成本估算准确
性的方法。正在进行的技术援助项目可进行这方面的必要研究。

28. 农业项目的实施迟缓需要给予特别关注,因为它们是由于多层次的项目执行机
构和实施机构的管理所造成的。省、市、县各级实施机构造成了项目执行机构和实施机
构之间的协调困难。鉴于《国别合作伙伴战略(2008-2010)》,亚行在华贷款业务将
发生战略性变化,减少交通领域的贷款,增加农村发展贷款。为适应这一变化,亚行的
贷款项目将更多地与市县级政府和实施机构进行合作。  他们缺少对亚行和其他国际组织
项目的管理经验。

29. 协调是保证在这个领域很好实施项目的关键因素之一。本研究建议,在项目准
备技术援助咨询顾问的帮助下,项目执行机构准备一份项目实施手册,并在贷款生效时
准备好,特别是涉及到许多项目执行机构和实施机构的项目。项目实施手册应由不同的
详细的手册和计划组成,如财务管理手册、采购手册、环境监督计划、少数民族发展计
划、移民行动计划等。项目实施手册可以帮助不同的项目执行机构和实施机构了解如何
采用相同的步骤、在同一时间里、使用相同的标准等实施项目。项目实施手册应散发给
项目执行机构和实施机构的相关成员,以便指导他们的工作。

30. 项目支付迟缓是另一个反复提及的问题。亚行已采取措施改进支付效率。由亚
行驻华代表处管理的项目的支付职能已经全部下放到了其驻华代表处。而在项目执行机
构和实施机构方面,支付迟缓有时是因为他们需要较长的时间准备和处理提款申请。这
种安排削弱了亚行所做的努力。不少项目都远远落后于他们的支付目标。

31. 这个问题的一个方面在于内部支付申请的审批。它有时需要花费很长的时间才
能使最终用款人得到款项。从县到市、省,财政局和其他有关局委对提款申请的审批是
一个非常耗时的过程。这主要发生在涉及到各级项目执行机构和实施机构的农业行业。

32. 本研究建议,财政部与地方财政局进行探讨,修改现有的提款申请审批和支付
程序。例如,提款申请可以由各级财政局进行审查,但款项可以由省财政厅直接支付给
用款人。正在进行的技术援助项目也可以在这方面进行研究。

33. 财务管理问题主要反映在项目审计报告的递交迟缓和审计报告质量不高方面。
递交审计报告迟缓的主要原因是项目管理办公室需要较多的时间去汇兑项目财务报表,
因为这其中涉及到许多层次的财务报表,特别是社会发展行业的项目。这种情况特别容
易在涉及到许多项目实施机构和涉及到有二、三级项目执行机构的项目中发生。如果财
务报表需要手工完成,项目执行机构就需要更多的时间去合并项目实施机构或下级项目
执行机构的财务报表。

34.   审计报告的质量问题主要包括:

       亚行所记录的贷款支付数与项目执行机构和实施机构所记录的贷款支付数
                                       xiv 

     不一致;

     一些审计报告没有满足亚行的要求,一些审计报告没有包括对费用报表的单
     独审计意见;

     以前的审计建议没有被项目执行机构和实施机构所实施,但在审计报告中没
     有说明理由;

     审计报告所包含的财务报表没有项目执行机构和实施机构管理当局的签字;

     审计报告的中译英质量不高。

35. 解决这些问题主要依靠提高项目执行机构和实施机构的财务管理能力。亚行也
进行了很大的努力去解决这些问题,并为项目执行机构和实施机构提供财务管理方面的
培训。除此之外,本研究建议,亚行应要求项目执行机构准备一份财务管理手册,内容
包括内部控制、项目会计核算与报表编制、提款报账程序和单据要求、有关项目账户和
机构财务报表审计报告的报送等。甚至可以将该手册的编制完成做为亚行第一次支付的
前题条件。

36. 本研究还建议,审计部门应为项目执行机构和实施机构落实审计建议提出时间
要求,亚行应在其项目检查中对项目执行机构和实施机构落实审计建议的情况进行监
督。

37. 除了上述与程序和政策有关的问题外,项目执行机构和实施机构能力不足是另
一个影响到有效实施项目的主要因素。项目执行机构和实施机构能力不足不仅表现在他
们不熟悉亚行和中国政府的政策、指南、程序和要求,还表现在他们缺乏管理项目的能
力。有些问题,如项目实施启动迟缓、采购问题和支付问题或多或少地都与项目执行机
构和实施机构实施项目的能力不足有关。

38. 为了清晰地了解项目执行机构的项目管理能力,亚行在 2007 年进行了一次调
查。调查结果显示,项目执行机构都配备了足够的项目管理人员,并进行了有关亚行指
南方面的培训。但是,下述的一些领域仍需要给予加强,因为许多的项目执行机构在此
次的调研中都提出同样的要求:

     所有的项目执行机构应获得相同的培训机会,以便每一个项目执行机构都能
     得到充分的培训;

     项目管理培训应侧重在如何管理一个项目,而不是实施项目。例如,项目领
     导小组应如何有效地举行项目会议、项目执行机构如何进行项目管理(比如,
     如果利用咨询顾问、如何控制项目的质量)等;

     项目绩效监测系统的培训应向项目执行机构提供数据收集和监测评价的技
     术;

     采购培训在培训如何准备采购文件之外,还应提供采购文件的质量控制等内
     容的培训;

     财务管理培训在培训内部控制、会计核算和报表编制、贷款支付等内容之外,
     还应提供有关内部审计方面的培训;

     会计电算化也应包括在财务管理培训中。
                                         xv 

39. 除了由亚行提供培训外,亚行还应对咨询顾问在加强项目执行机构能力方面的
作用给予足够的重视,因为亚行的在华项目中使用咨询顾问是一个很普遍的现象。提供
亚行指南方面的培训应考虑增加到咨询服务的任务大纲中。

40. 为了更好地了解项目执行机构和实施机构在项目管理方面的能力,2008 年 9 月
本次研究又进行了一次调查。这次调查是以“项目单位能力建设需求调查表”的形式进
行的。

41. 调查结果显示,项目执行机构和实施机构,包括财政部门,所接受的培训主要
在于亚行指南方面,如采购指南、支付指南、项目财务管理、项目绩效监测系统等。这
些培训的目的是为了对这些指南进行说明。但是,项目执行机构和实施机构,包括财政
部门都表示,他们需要更深层次的培训,如通过案例研究和经验推广的做法来进行。

42. 第二,除了亚行的指南外,项目执行机构和实施机构还需要获得许多有关项目
实施方面的知识。一些常见的知识对成功地实施亚行项目也是至关重要的。因此,项目
执行机构和实施机构在项目实施期间的培训应考虑包括一些与项目管理有关的其他内
容,如项目管理、合同管理(包括变更控制、工程质量控制等)。

43. 第三,亚行项目的实施涉及到许多部门,如财政部门、项目执行机构和实施机
构。不同的部门对相同知识的要求深度也是不一样的,因为他们在项目准备和实施过程
中发挥着不同的作用。因此,关于亚行指南的培训对不同对象应该有不同的侧重点。例
如,在采购培训方面,项目执行机构和实施机构就需要比财政部门更详细的培训,因为
他们通常要对采购活动进行监督。

44. 最后,培训应按项目的实施进度进行。换言之,对培训对象的培训应及时进行。
关于亚行项目准备方面的培训应在项目准备期间进行,而支付和采购方面的培训应在项
目实施开始阶段进行。如果培训能够及时提供给需要这些培训的人员,那么培训的效果
将会更好。

45. 基于关于培训的调查结果,本研究建议,亚行与有关的大学或培训机构合作为
项目执行机构和实施机构提供长期的培训活动。本研究还建议,亚行应培养一批专业的
培训人员,使他们能够为项目执行机构和实施机构提供日常的培训,从而减轻亚行或亚
行驻华代表处人员的培训工作量。

46. 不同的培训者应在培训中发挥不同的作用。大学或培训机构可以向项目执行机
构和实施机构提供系列培训,专业的培训人员可以向项目执行机构和实施机构提供基础
知识培训,而亚行人员则可以将注意力放在案例研究和经验推广方面。

47.   本研究建议,亚行应考虑在长期培训中包括以下内容:

       亚行指南、程序和要求

         亚行关于项目准备的要求和程序;
         亚行支付指南和程序;
         亚行采购指南,包括采购文件的质量控制;
         财务管理;
         项目绩效监测系统,包括数据的收集和监测评价;
         使用标准招标文件。

       项目管理中的其他知识
                                    xvi 

       项目管理;
       合同管理;
       工程变更控制;
       工程质量控制。

48. 本研究还建议,培训应分两个层次进行――基础培训和高级培训。基础培训是
介绍亚行的政策、指南、程序和要求,而高级培训则侧重于运用亚行政策、指南、程序
和要求。案例研究和经验推广可在高级培训中进行。

49. 对学员进行分类也是改进培训效果的重要途径。本研究建议,学员应按不同的
培训层次和不同的培训重点进行分类。
                                                                                       1 

I.     Background

A.     ADB projects in PRC

1.     As of 31 December 2007, ADB’s total loan commitment to PRC since
commencement of its operations in 1987 comprises 133 public sector loans for
$18,906.9 million. Of which, 79 loans are closed and 54 loans are ongoing. The
PRC portfolio is one of ADB’s largest portfolios and has been one of the best among
ADB’s developing member countries.

2.       Although the portfolio performance in PRC has been performing well, issues
impeding smooth project implementation do exist, such as delay of loan start-up, slip
of implementation schedule, procurement related issues, weak project performance
management, disbursement lag behind works implemented, etc. ADB has been
continuing making efforts on improving the effectiveness of project implementation in
PRC over the past 20 years, including periodically reviewing the portfolio performance
and taking actions to handle the issues emerged. In the past 20 years, some issues
identified were effectively mitigated or managed, while some issues have been
repeatedly come up in every review. The reasons are complicated and a thorough
study on those issues becomes critical to improve effectiveness of the project
implementation.

3.       In addition, managing the portfolio in PRC is likely to become more
challenging in the future. At the sector level, in response to the Government’s
priorities, lending in the transport sector which is strong in performance will be
replaced partly by lending in rural development. ADB’s lending in PRC will involve
more closely with municipal and local governments, and implementation agencies,
with little or no experience dealing with ADB or other international organizations.
Due to the change, potential issues would come up, which could impede smooth
project implementation.

B.     Purpose of the Study

4.      To strengthen effectiveness of project implementation, a study on the issues
repeatedly existing and on the issues potentially coming up becomes necessary.
The study will help ADB identify the rooted reasons for the repeated issues. ADB
and/or its counterparts will, therefore, be able to take effective action to manage these
issues. The study also will help ADB to predict potential issues in the project
implementation. Hence, ADB can make proactive measures to prevent these issues
from impeding smooth project implementation. ADB’s portfolio performance in PRC
can be further improved through actions taken to deal with the repeated issues and
mitigate potential issues upfront. Therefore, the main objective of the study is to
identify those major constrains and issues that impede effective project
implementation and to recommend measures to improve project implementation in
PRC according to the findings.
                                                                                                 2 

C.             Scope of work

5.       The study focused on project implementation phase of the Project Cycle. It
also covered the pre-approval stage as many actions taken before signing of the loan
agreement are, to a great extent, critical to the successful implementation of the
project.

6.       The study on the issues was carried on in two areas. One was to look at the
procedures and policies of ADB and the Government, and the other was to look at
the aspect of EAs/IAs’ capacity. On the first area, the study examined inharmony
between two sets of requirements by ADB and the Government and then took a look
at the possibility of coordination and harmonization of both requirements. On the
second area, the study looked at constrains and weaknesses of EAs/IAs’ capacity in
project implementation and then recommend approaches to strengthen their capacity
in the identified areas.

7.     The different sectors may have sector specific constrains and issues. In the
study, sector specific was addressed. The main sectors include transport and
communication sector, agriculture and natural resources sector, energy sector, and
water supply, sanitation, and waste management sector.

II.            Methodology

8.     The methodologies of the study included desk review of relevant documents,
and survey by questionnaire. The following documents were reviewed during the
study:

               i.   Background Papers (BPs) of Country Portfolio Review Missions (CPRMs)
                    from 2000 to 2006;
               ii. Reports on sector study;
               iii. Project Administration Memorandums (PAMs);
               iv. Materials of Showcase Workshop on wastewater management; and
               v. ADB’s guidelines and policies.

9.     There were two surveys conducted to understand EAs/IAs capacity and their
needs in capacity building. One survey was conducted before the study and the one
was done during the study.

III.           Main Findings and Recommendations

A.             Review of CPRMs

10.      As mentioned above, periodical review is one of the ADB’s efforts to improve
the effectiveness of project implementation in PRC. Country Portfolio Review
Mission (CPRM) is one of the forms of periodical review. CPRM was carried out
every two years from 1991 and there was a mid-term review between two CPRMs.
The latest CPRM was conducted in September 2008 1 and the latest mid-term country
portfolio review mission (MTCPR) was carried out in August 2007. CPRMs that were
                                                              
1
     However, the information and data used for this study is as of CPRM 2006 and MTCPR 2007. 
                                                                                       3 

conducted jointly by ADB and the Government reviewed ADB’s portfolio profile in
PRC and portfolio performance including loan portfolio and technical assistance
portfolio. CPRMs also analyzed the key portfolio performance issues and the
reasons caused these issues, comprising general issues and sector specific issues,
but mainly focused on loan portfolio. At last, action plans were proposed, discussed,
and agreed between ADB and the Government. The main purpose of MTCPR was
to discuss the portfolio performance since last CPRM and the status of
implementation of the agreed action plan. Since CPRM 2000, CPRM and MTCPR
were led by the ADB Resident Mission in PRC (PRCM) with staff participation from
Headquarters, Manila.

11.      While affirming the achievement by PRC, CPRMs pointed out the issues
during the project implementation. Following discussions with the Government, joint
PRC-ADB action plans to solve these issues identified by CPRMs were agreed.
Some issues were solved, but some issues still exist. By analyzing the issues
identified by CPRMs, it is found that some issues were repeatedly identified by
CPRMs; some issues were newly identified by recent CPRMs, along with the
development of project management by ADB. The following table presents the
issues identified by CPRMs since 2000 and their reasons are summarized in Annex 1.

          Table 1:    Summary of Issues Identified by CPRMs since 2000

                                                                 Identified by CPRM
                            Issues
                                                               2006   2004   2002   2000
Start-up Delays
Delay in Start of Project Construction
Loan Savings and Cancellation                                                          
Frequent Loan Extensions
Procurement Issues and Low Contract Awards                                             
Project Implementation Delays
Non Compliance with Financial Covenants                                                
Late Submission of Audited Project Accounts/Corporate
                                                                                       
Financial Statements
Project Performance Management
Delay in Recruiting and Mobilizing International Consultants                           
Change in EA during Project Implementation                                             
Slow Disbursement                                                               
Communication                                                                   
Consideration of low bids in civil works contracts,
                                                                                
particularly in transport sector in bid evaluation reports
Non Compliance with Policy Covenants

12.     This study gave its attention to the following issues, which significantly
influence the portfolio performance in PRC:

         Start-up delays;
                                                                                   4 

        Procurement issues;
        Project implementation delays;
        Project disbursement delays; and
        Financial management issues.

B.     Issues relating to Procedures and Policies

13.     This section discussed the repeated issues related to the procedures and
policies of ADB and the Government and the reasons for the issues identified by
CPRMs from 2000. Recommendations were also made in this section.

B.1    Start-up Delays

14.      Start-up delays implicate that ADB’s loans in PRC need more time than ADB
wide average from loan approval by ADB Board to loan effectiveness. This is one of
the repeated issues for ADB’s portfolio in PRC. This issue was identified by each
CPRM from 2000 to 2006. The following table summarizes the findings by CPRMs
on this issue.

  Table 2: Time Elapsed from Loan Approval to Signing and to Effectiveness
       From Loan Approval From Loan Signing to      From Loan Approval to
Year     to Loan Signing      Loan Effectiveness       Loan Effectiveness
             (months)              (months)                 (months)
        PRC     ADB Wide     PRC       ADB Wide       PRC        ADB Wide
1999     5.5        3.3       3.8          3.8         9.4          7.1
2000     6.1        3.2       4.0          3.6        10.0          6.9
2001     5.9        3.3       4.0          3.7        10.0          6.9
2002     6.4        3.4       4.0          4.0        10.2          7.3
2003     6.8        3.5       4.4          4.4        10.7          7.7
2004     6.7                  4.1                     10.9
2005     6.2        3.7       4.1                     10.3          8.3
2006     5.9        3.9       3.9          4.5        10.0

15.     The time elapsed from loan approval to loan effectiveness for ADB’s portfolio
in PRC is longer than the ADB wide average. The number of months presented in
the above table is the average time of ongoing loans in PRC. It is obvious that the
number of months from loan approval to signing is about 2 to 3 months more than the
ADB wide average and the number of months from loan signing to effectiveness is
close to the ADB wide average, even shorter than the ADB wide average in recent
years. This implicates that improving the efficiency from loan approval to loan
signing might be the main area solving this issue. About two or three mothers
shorter from loan approval to signing could help ADB portfolio in PRC meet the ADB
wide average number of months from loan approval to loan effectiveness.

16. To better understand the reasons for the issue of start-up delays, a study was
carried out by ADB. The study compared the approval procedures of ADB and the
Government. It is analyzed that the main reason for this issue is the mismatch
                                                                                                                           5 

between ADB and the Government approval procedures. The study accordingly
made recommendations to harmonize these two procedures. On August 16th, 2001,
a workshop on ADB and the Government approval procedures was held in PRCM.
The participants in the workshop comprised of officials from Ministry of Finance
(MOF), National Development and Research Commission (NDRC), Ministry of
Environmental Protection (MEP), other line ministries, and selected EAs. ADB HQ
staff also attended the workshop through videoconference. In November 2001, a
joint report 2 was finalized by PRCM and MOF to recommend necessary steps for
better coordination in the approval process, which included:

               (i)         The project proposal should be approved by the Government before
                           ADB loan fact-finding mission;
               (ii)        Advance procurement action (APA) 3 and the advance recruitment of
                           consultants should be adopted as a normal practice to initiate
                           procurement and recruitment activities before ADB approves a loan;
               (iii)       Feasibility study report should be approved by the Government before
                           loan negotiation;
               (iv)        Project formal launching should be approved by the Government before
                           declaring loan effective;
               (v)         The Government should standardize the re-lending and on-lending
                           procedures; and
               (vi)        Efforts should be made to explore the possibility of joint appraisal of a
                           project between domestic financing agencies and ADB.

17. Some of the recommendations were considered by the Government and were
incorporated into its requirements on the approval procedures for international
financial institution financed projects.

               (i)         The project proposal for ADB project must be approved by the
                           Government when ADB finishes its loan fact-finding mission;
               (ii)        The feasibility study report for ADB project must be approved by the
                           Government when ADB finishes its project appraisal;
               (iii)       The Project Funds Application Report and the Project Financial
                           Evaluation Report for ADB project must be approved before loan
                           negotiation with ADB.

18. With these efforts by ADB and the Government, the situation has not been
significantly improved. Therefore, further two steps relating to this issue were
suggested by CPRM 2006. These two steps are part of Project Readiness Checklist,
which is one of the immediate actions of Six-point Action Plan suggested by CPRM
2006. There are eight items in the Project Readiness Checklist that should be met

                                                              
2
     The PRC Government and ADB Project Approval Procedures, November 2001. 
3
   APA - Advance procurement action refers to the process for procuring goods and related services and works, up to the
stage of ADB’s approval of the EA’s recommendation for award of contract before the date of loan effectiveness or approval of
technical assistance. APA may also include approval of the award of contract for the procurement of goods and related
services and works if retroactive financing has also been approved. Retroactive financing refers to the ADB's approval in
principle to finance project expenditures prior to the loan or TA becoming effective.  
                                                                                       6 

before circulation of project documents to ADB Board for approval.         Two of them
relate to the issue of start-up delays, which are:

       (i)     Preparation of bidding documents and procurement plan for packages
               over $100,000 for the first full year, and
       (ii)    Preparation of draft invitation documents including shortlists for
               recruitment of consultants.

19.     To better understand the reason and find out solution to this issue, ADB and
the Government current approval procedures were intensively examined during the
study. ADB and the Government approval procedures can be treated as two parallel
lines. ADB’s procedure is to approve a loan for a project that is ready to implement
technically and financially while the Government’s procedure is to approve a capital
investment project which is ready to implement technically. Both procedures start
from the same point, ready to prepare a project – 3-Year Rolling Plan for Using ADB
Loan / Country Programming Mission. The major steps in ADB’s loan approval
procedure directly linking with the Government include loan fact-finding, project
appraisal, loan negotiation, Board approval, loan signing, and loan effectiveness,
meanwhile the major steps in the Government’s project approval procedure directly
linking with ADB include project proposal, project feasibility study, preliminary design,
detailed design, and order of engineering commencement. It is necessary to have
links between ADB and the Government approval procedures so that these parallel
lines can move together. Currently the Government has made some links between
these two approval procedures. These links include the following:

       (i)     As required by the Government, the project proposal for ADB project
               must be approved by the Government when ADB finishes its loan
               fact-finding mission;
       (ii)    As required by the Government, the feasibility study report for ADB
               project must be approved by the Government when ADB finishes its
               project appraisal;
       (iii)   As required by the Government, the Project Funds Application Report
               and the Project Financial Evaluation Report for an ADB project must be
               approved before loan negotiation with ADB.

20.     By loan negotiation, ADB and the Government approval procedures reach the
same level. Both approve / accept the feasibility study report of the project. Then
ADB prepares its internal documents for project negotiation and awaits its Board
approval of the loan. Aside from negotiation with ADB about the legal agreements,
the Government waits for the submission of preliminary designs prepared by EAs.
However, ADB and the Government lose the control on EAs/IAs’ preparation of
preliminary and detailed designs. When the ADB Board approves the loan, but the
preliminary or detailed designs are not ready, EAs/IAs could not get the order of
engineering commencement from the Government to implement their projects.
Normally EAs need more time than ADB to be ready to start implementing the projects.
To avoid unnecessary payments of commitment fees that commence from the sixtieth
                                                                                      7 

day of the signing of loan agreements, EAs always take no action to sign the legal
documents until their readiness. There are nothings ADB (and the Government) can
do rather than waiting for EAs/IAs readiness. These two parallel lines could not
move together after the approval of feasibility study report or loan negotiation

21.      To continue binding ADB and the Government approval procedures move
together, CPRM 2006 proposed two steps in the Project Readiness Checklist of
Six-Point Action Plan. These two steps are: (i) the bidding documents and
procurement plan for packages over $100,000 for the first full year and (ii) draft
invitation documents including proposed shortlists for recruitment of consultants must
be submitted to ADB before the circulation of project documents to ADB Board for
approval. These two steps link EAs/IAs’ activities with ADB’s approval procedure.
This could be regarded as the FOURTH links for ADB and the Government approval
procedures.

22.     The first three links mentioned in paragraph 19 above ensure the quality of
project preparation. By the time of loan negotiation, the scope of the project is
affirmed by the Government. These links can help avoid the delays caused by
approval procedures.

23.    The FOURTH link can help ensure that the loan taken up for ADB Board
approval is ready to implement, at least ready to implement the works in the first year.

24.   Till this step, both parallel approval procedures are linked again – ready to
implement.

25.    The first three links give the responsibility to the Government. EAs/IAs have
the responsibilities to prepare projects financed by ADB. The Government has the
responsibilities to control the quality of project preparation by using the first three
links.

26.    However, the FOURTH link has the control point in ADB side. EAs/IAs have
the responsibilities to prepare bidding documents and this link gives EAs/IAs
pressures to speed up their preparatory work. By the time of circulation of project
documents to ADB Board for approval, the bidding documents and draft invitation
documents for recruitment of consultants must be ready. Then the project
documents can be circulated to and the loan can be approved by the ADB Board.

27.     The bidding process could be started after approval of the project by ADB.
Although there is no standard time requirement for bidding process from submission
of bidding documents for review to contract award, four months are still needed. If
EAs/IAs could finish their bidding process within four months, the Government could
sign loan agreements with ADB within four months. This could lead to avoid the
unnecessary payment of commitment charge. Without the bidding documents and
draft invitation documents for recruitment of consultants, without the approval of
project by ADB Board, if the requirement of the FOURTH link is strictly obeyed. Of
cause, the capacity of EAs/IAs in ADB procurement is another factor influencing the
time of bidding process and it will discuss later.
                                                                                        8 

28.     On the other hand, the FOURTH link might at the same time cause another
issue. Loan approval might be delayed from the date of loan negotiation because
EAs/IAs need more time to prepare bidding documents or draft invitation documents
for consultants, even for the first year, before the project documents are circulated to
the ADB Board for approval. This is the negative impact of the FOURTH link, or
those two items in the Project Readiness Checklist could solve the issue of the
lengthy elapsed from loan approval to loan effectiveness, but could not improve the
efficiency of work from loan negotiation to loan effectiveness.

29.    To reduce the negative impact of the FOURTH link between ADB and the
Government approval procedures or to ensure the efficiency of project preparation
work, additional steps should be taken by ADB and the Government.

30.    One of these additional steps is that the preliminary designs for the first year
should be ready by the time of loan approval.

31.      The preliminary designs could be prepared during the preparation of project
feasibility study. According to the domestic procedures of project approval,
preliminary designs should follow the approved feasibility study report, which would
be approved by the Government after ADB loan appraisal. The bidding documents
can be prepared after the approval of preliminary designs by the Government. If do
so, it will take long time for ADB financed project in PRC from loan appraisal to finish
the bidding documents. Shortening this period is to have preliminary designs of the
contracts for the first year prepared while feasibility study report is under preparation.
These preliminary designs should be prepared based on the draft project feasibility
study and ready for ADB appraisal. Due to the approval of feasibility study report is
not available, the preliminary designs prepared for ADB appraisal are not formal one.
These informal preliminary designs should be revised according to the approved
feasibility study report. Since the feasibility study report by the time of loan appraisal
would have little change, these informal preliminary designs are easy to revise.
Upon getting the approval of feasibility study report, the preliminary designs could be
updated quickly and submitted to government authorities for approval. Although
there is no standard time requirement for preliminary designs and their approvals, it is
obvious that this arrangement could save the time in comparison with the normal
practice that preliminary designs would be started after the approval of feasibility
study reports that are made after ADB loan appraisal. It is estimated that 2 to 3
months could be saved.

32.     To ensure this change, it is recommended that EAs (i) sign agreement with a
design institute for preliminary design during the period of feasibility study so that the
design institute could start to prepare the preliminary designs for the contracts in the
first year; and (ii) have the preliminary designs for the contracts in the first year
prepared and be ready before loan approval. It is also recommended that ADB
add ‘review of preliminary designs for the works in the first year’ to the scope of PPTA
and to terms of reference (TOR) of PPTA consultants in order to ensure the quality of
preliminary designs.
                                                                                      9 

33.      Taking these recommendations into account, the harmonized approval
procedures for ADB financed project in PRC is summarized in the following chart and
illustrated as follows:

       (1)    During ADB’s country programming mission to PRC, a three-year
              rolling plan for using ADB loans is agreed by ADB and the Government.

       (2)    EAs start to prepare the project, including project proposal, feasibility
              study, environment impact assessment, resettlement plan, project
              funds application, and preliminary design for the works in the first year.
              Except for the last one, the others are required by current procedures.
              It is an important step to prepare draft preliminary design for the works
              in the first year in the harmonized approval procedures.

       (3)    To assist EAs identify and prepare feasible project, ADB sends PPTA
              consultants to the field working together with EAs and their design
              institute. They closely interact with civil society, beneficiaries, and
              other development agencies. 

       (4)    To examine the feasibility study and complete the project design, ADB
              fields a loan fact-finding mission. It looks at the project’s technical,
              financial, economic, environmental, and other features.

       (5)    After the completion of ADB’s loan fact-finding mission, EAs submit
              their project proposals to the Government for approvals, which reflect
              the consensus between ADB’ loan fact-finding mission and EAs and
              IAs on the framework agreements. This is the FIRST link in the
              harmonized approval procedures.

       (6)    In consultation with the Government, an ADB’s appraisal mission
              examines the project technical, financial, economic, environmental,
              and management features, including the preliminary design for the
              contracts in the first year. It also examines potential social impact.

       (7)    Once ADB completes its appraisal mission, EAs submit their feasibility
              study reports to the Government for approvals. These reports reflect
              the consensus between ADB appraisal mission and EAs/IAs on the
              project’s components, funds allocation, and so on. This is the
              SECOND link in the harmonized approval procedures.

       (8)    Before the loan negotiation with ADB, project funds application should
              be approved by NDRC. This is part of the third link in the harmonized
              approval procedures.

       (9)    Before the loan negotiation with ADB, provincial financial bureaus
              conduct financial evaluation on the projects, and the evaluation reports
              should be approved by MOF. This is also part of the THIRD link in the
              harmonized approval procedures.
                                                                              10 

(10)   In parallel with the approvals of project proposals, feasibility study
       reports, project funds application, and financial evaluation, EAs and IAs
       request design institutes to prepare the preliminary designs for the
       contracts in the first year. The preliminary designs are draft and PPTA
       consultants will review them. They will be also appraised by ADB’s
       appraisal mission.

(11)   Once the feasibility study reports are approved by the Government, the
       design institutes update the draft preliminary designs in accordance
       with the approved feasibility study reports. Thus, the preliminary
       designs are submitted to the Government for approvals.

(12)   At the same time, EAs/IAs recruit tendering companies as their
       procurement agents.

(13)   Upon the Government approves the preliminary design, EAs with the
       assistance from tendering companies, prepare the bidding documents
       for the contracts in the first year and the draft invitation documents for
       recruitment of consultants.

(14)   The bidding documents for the contracts in the first year and draft
       invitation documents for recruitment of consultants are submitted to
       ADB for review before the circulation of project documents to ADB
       Board for approvals. This is required by the Project Readiness
       Checklist of the Six-Point Action Plan by CPRM 2006 and also is the
       FOURTH link in the harmonized approval procedures.

(15)   After approval by ADB, the recruitment of consultants and procurement
       of works and goods starts, and the contracts are entered into with the
       consultants, contractors, and suppliers when the loan becomes
       effectiveness.

(16)   The on-lending agreements and re-lending agreements are entered
       into between the governments at different levels and between
       governments with IAs.
                                                                                  11 




34.    The World Bank has the similar practice in PRC. To facilitate the project
implementation in its urban sector, the World Bank requires 20% of preliminary design
of the project in urban sector must be finished before the World Bank appraisal
mission. The appraisal mission has to review and agree with the preliminary design.
                                                                                   12 

35.     In addition to the reasons for the start-up delays relating to approval
procedures, other reasons are project specific reasons, such as change of EAs by the
Government, change of IAs by EAs, and change of preliminary technical designs.
These changes implicated that those projects were not ready institutionally or
technically. To avoid these changes happening to other projects in future, to a great
degree, it depends on the analysis work in project preparation stage. ADB project
team, the Government, and PPTA consultants should discuss seriously the
implementation arrangements and the scopes of their projects, including the
preliminary designs for the works in the first year.

B.2    Procurement Issues

36.    Another repeated issue identified by every CPRM is procurement issue. This
is a general statement. In fact, it includes several detailed issues such as delay in
bidding process, slow response time from ADB, poor quality of bidding documents,
and low bids.

37.    The phenomena of procurement issues relating to procedures and policies
described by the MTCPR 2007 included as follows:

            The ADB Procurement Guidelines required that the lowest priced and
            substantially responsive bidder should be awarded the contract. This
            had resulted in the award of contract with very low contract price and
            frequent complaints by EAs/IAs that the quality of work had been
            compromised and work progress was poor. ADB was informed that
            many domestic bidders submitted low-priced bids in order to get the
            contract with a view of seeking price adjustment from the EA at a later
            stage through deliberate slowdown of work progress.

            When works were procured through National Competitive Bidding and
            the number of prequalified bidders were limited, there were reported
            cases of prequalified bidders connive to corner bids at high bid price.
            These collusive practices if succeed, will increase the project costs and
            scarify the interests of the project.

            On many occasions, ADB Procurement Committee didn’t agree with the
            EA’s treatment of non-responsive bids. EA often treated minor deviations
            as non-compliance such as less than required years of working
            experience of key personnel; doubtful proposed construction method;
            less than specified quantity of construction equipment offered; and minor
            errors in documents submission as ground for bid to be declared as
            non-responsive without seeking clarification from bidder concerned.
            ADB had in the past requested the EAs to seek clarifications directly with
            the bidders concerned but for various reasons, the EAs were reluctant to
            do so.

            While domestic Procurement Law in PRC allowed the rejection of a bid if
            the bid price was outside the specified range of the engineer’s cost
                                                                                    13 

             estimate (i.e. if the bid price is over or less than the engineer’s cost
             estimate by a fixed percent), ADB’s Procurement Guidelines did not
             allow the rejection of a bid on the ground of bids above or below a
             predetermined assessment of bid values.

38.     To clearly understand the reasons for these procurement issues, two
procurement reviews were carried out in 2001 and 2002. The main purposes of
these reviews were: (i) to determine the adequacy of the procurement and contracting
procedures followed by EAs and to identify cases of non-compliance with ADB
Guideline and Provisions in the loan documents; (ii) review timeliness and adequacy
of ADB’s procurement review and approvals; and (iii) using data collected and the
findings from procurement reviews, identify ways of improving the procurement and
the contracting process. The Procurement Review 2001 covered two projects and
the Procurement Review 2002 covered 3 projects. These reviews also found the
issues, particularly issues relating to national competitive bidding (NCB) procurement,
which are summarized as follows:

             Incorrect evaluation criteria were included in the bidding documents
             and/or applied during bid evaluation, particularly for NCB contracts.

             There were differences in the application of NCB procedures by the EAs.

             In some cases, bidders were provided with both English and Chinese
             versions of bidding documents by EAs. However, in some portion of the
             bidding documents, there were key differences between the English and
             Chinese Version.

39.    These reasons were identified by Procurement Review 2002, but most of
them do exist for the current procurement issues.

40.    In fact, the procurement issues are caused by the mismatch between ADB
procurement guidelines and the Government procurement law and regulations.

41.      Although both procurement procedures have the same steps including
notification and advertising, preparation and submission of bids, bid opening,
evaluation and comparison of bids, award of contract, and publication of the award of
contract, the mismatch can be found in the steps of composition of bid evaluation
committee and evaluation and comparison of bids.

42.     Since all procurement activities in PRC have to follow PRC procurement law
and regulations, they have greater impact than ADB procurement guidelines. In
other words, EAs/IAs of ADB portfolio in PRC are more familiar with PRC
procurement law and regulations than ADB procurement guidelines. Therefore,
when they procure the goods or works financial by ADB, they would follow PRC
procurement law and regulations if they could not find specific requirements in ADB
procurement guidelines. For example, ADB procurement guidelines do not have
specific requirements on the composition of bid evaluation committee. However, the
PRC procurement law and regulations have detailed requirements on the composition
                                                                                      14 

of bid evaluation committee. It is required that the members of bid evaluation
committee have to be selected randomly from the pool of experts. The practice
showed that some of the experts selected as the members of bid evaluation
committee were qualified and some were not, because they did not understand the
bid evaluation criteria of ADB.

43.     Since the Government has set up procedure to review the implementation of
PRC procurement law and regulations, EAs/IAs prefer PRC procurement law and
regulations to ADB procurement guidelines if there is inconsistence. The evaluation
and comparison of bids is an example. ADB procurement guidelines require that the
contract should be awarded to the bidder whose bid substantially responses to the
biding documents with the lowest evaluated cost. This lowest evaluated cost
includes the financial adjustment of bid prices from the deviation of the commercial
and technical parts of bid. But the PRC procurement law and regulations have
different requirements. The first difference is that the PRC procurement law and
regulations have no requirements to adjust the bid prices for those deviations which
are permissible and can be ‘translated’ fairly into monetary values. The second
difference is that the PRC procurement law and regulations have several methods to
evaluate bids. For instance, the PRC Tendering and Bidding Law requires that ‘the
bid of a winning bidder shall satisfy any of the requirements: (1) to be able to satisfy
the maximum various comprehensive assessment standards in the tendering
document, or (2) to be able to satisfy the substantial requirements set in the tendering
document and to have the lowest quotation upon assessment, with the exception of
bid price quotation which is below cost.’ Other examples are that: (1) Ministry of
Transport regulates that the evaluation methods for open bidding include reasonable
low cost, lowest evaluation price, comprehensive evaluation, and two-envelops. (2)
The bids for investment projects in water resources sector will be evaluated by one of
the evaluation methods of comprehensive evaluation, comprehensive lowest
evaluated price, reasonable lowest bid price, comprehensive assessment, and
two-stage evaluation. In fact, the method of lowest evaluation price is seldom used
to avoid low bid influencing the implementation of project. The comprehensive
evaluation method is prevailing method. Since the Government will review the
results of bid evaluation first before they are sent to ADB for approval, EAs/IAs usually
follow PRC procurement law and regulations to evaluate the bids because the
Government reviewers are unfamiliar with ADB procurement guidelines.

44.     These mismatches are caused by ADB’s procurement guidelines and the
Government law and regulations such as the Tendering and Bidding Law of China,
the Interim Provisions on Evaluation Committees and Bid Evaluation Methods 4 .
However, both the Tendering and Bidding Law and the Interim Provisions have
exceptional clauses. According to the exceptional clauses, if ADB has its rules on
the composition of evaluation committee and evaluation methods, EAsIAs should
follow ADB’s rules rather than the Law and the Provision of the Government.


                                                              
4
    Joint Order No.12 of NDRC and other six departments and commissions 
                                                                                                                    15 

45.     Since ADB has the obligation to ensure that the proceeds of its financing are
used with due attention to considerations of economy and efficiency during the
process of procurement, therefore, ADB should consider including specific
requirements on procurement in the Project Administrative Memorandum (PAM) 5 ,
including the composition of evaluation committee, bid evaluation method, and so on,
to make up gap in its procurement guidelines. It is recommended that ADB include
specific procurement requirements in the procurement section of PAM on the
composition of bid evaluation committee, bid evaluated method, for instances:

                        With exception clauses of the Tendering and Bidding Law of the People’s
                        Republic of China and the Interim Provisions on the Bid Evaluation
                        Committee and Bid Evaluation method, the procurement of the proposed
                        project will be carried out in accordance with the Procurement Guidelines
                        dated February 2007.

                        The composition of bid evaluation committee should include the staff and
                        experts from EAs, IAs, and design institutes. The members of the bid
                        evaluation committee should be familiar with ADB procurement guidelines,
                        including bid evaluation procedures, bid evaluation reports; and have the
                        experience in bid evaluation for ADB financed projects.

                        The contract will be awarded to the bidder who meets the appropriate
                        standards of capability and resources and whose bid has been
                        determined (i) to be substantially responsive to the bidding documents
                        and (ii) to offer the lowest evaluated cost. 

46.   In addition to harmonize ADB and the Government procurement procedures,
some policy changes could help solve some procurement issues.

47.      Since International Competitive Bidding (ICB) might involve foreign bidders,
the international rules should be followed. This game rule is accepted by the
Government and domestic bidders. It is so called in line with international practices.
First of all, ADB procurement guidelines should be followed. Secondly the standard
bidding documents (SBDs) should be used for ICB.

48.     However, some policy changes should be made to NCB in PRC. As stated in
ADB procurement guidelines, NCB may be the most appropriate way of procuring
goods or works which, by their nature or scope, are unlikely to attract foreign
competition. One of ADB’s NCB practices in PRC is to use SBDs as bidding
documents. Although SBDs are much professionalized and reflected the long
standing experiences of ADB in procurement business, they neglect the specific
situations and procurement management experiences in PRC. Therefore, it is
recommended that ADB use Model Bidding Documents (MBDs) for NCB


                                                              
5
  Project Administration Memorandum sets out the project or program's implementation agreements and details and is used
by the borrower, executing agency, implementing agency, and ADB to monitor project implementation and evaluate project
impact. The PAM is an active document, updated and revised as and when necessary, particularly during midterm review and
following any changes in project costs, scope, or implementation arrangements.
                                                                                     16 

procurement. In fact, ADB have made comments on the first draft MBDs and these
comments are under consideration by MOF.

49.      With the assistance from World Bank, MOF is now preparing MBDs for
procurement of goods and civil works through NCB in projects that are financed by the
international financial institutions, e.g., World Bank, Asian Development Bank.
These MBDs are updated based on (i) the 1997 version of the Chinese Model Bidding
Documents for World Bank financed projects in PRC, (ii) the latest version of the
Master Bidding Documents for procurement of goods and civil works prepared jointly
by multilateral development banks and other public international financing institutions,
and (iii) procurement practices in PRC.

50.     The use of MBDs will not damage the spirit of ADB procurement guidelines.
Like SBDs, MBDs also follow the principles of economy, efficiency, and transparency.
MBDs will incorporate ADB and the Government procurement requirements. If there
are discrepancies, ADB requirements on procurement will be prevailed.

51.     The use of MBDs could help EAs, particularly new EAs and IAs, understand
ADB procurement requirements. MBDs will be officially issued in Chinese. All
documents relating to NCB will be in Chinese as well. So there is no language
obstacle to bidding documents for NCB procurement in PRC. Furthermore, the use
of MBDs could help improve the quality of bidding documents and with the delegation
of the procurement function to PRCM, recommended below, the use of MBDs could
help simplify the review process of bidding documents so as to facilitate the process
of procurement.

52.      MBDs played important role in the procurement financed by World Bank. In
1991, MOF prepared MBDs for World Bank financed project in PRC. The first
version of MBDs was published for the trial use by the tendering companies and EAs.
In May 1993, MOF and World Bank revised MBDs by taking the lessons and
experiences gained through the trial use period into consideration. Through
three-year endeavor, the revision of MSDs completed. World Bank reviewed the
MBDs and agreed to formal publication of these MBDs. According to MOF rules,
starting from July 1, 1996, the MOF-published MBDs must be used as commercial
part of the bidding documents for ICB and NCB procurement financed by World Bank
in PRC. No changes can be made to the main MBDs text. EAs and tendering
companies could prepare necessary changes through the Data/Cover Sheets. With
the development of SBDs, more and more ICB procurement financed by World Bank
in the PRC use SBDs, but MBDs are still used by NCB procurement financed by
World Bank in PRC.

53.    Since strengthening the procurement management is one of the priorities that
MOF will pursue to improve its project management on World Bank and ADB projects
in PRC. MOF recently commenced to revise the MBDs for NCB Procurement of
Goods and Civil Works and to bring the MBDs in alignment with the Chinese
procurement laws and regulations, as well as new developments of international
procurement practices learnt from the projects financed by international financial
                                                                                     17 

institutions, such as World Bank and ADB. MOF also hopes that the updated MBD
will be expanded to apply to not only World Bank financed projects but also to ADB
financed projects, and it could be also used for the projects funded by other
international institutions such as GEF and EID. Therefore, the updated MBDs might
be called Chinese Model Bidding Document for National Competitive Bidding
Financed by International Financial Institutions.

54.    According to the first updating draft, MSDs are denominated in Chinese
currency and accordingly payments have to be made in Chinese currency.

55.     Another policy change is to increase the threshold of ICB for civil works in
specific sector. ADB’s procurement practice in PRC is to use ICB as much as
possible. ADB encourages EAs/IAs to group contracts as large as possible in order
the estimated contract value could reach the ICB threshold. ICB is the major
procurement method for projects in PRC. However, some contracts, particularly
some civil works contracts, whatever how large the contract is, are not attractive to
foreign contractors. For these contracts, NCB should be used, or in specific sector
with contracts not attractive to foreign contractors, NCB should be the major
procurement method. The use of NCB procedure would not reduce the competition
among contractors. The use of NCB procedure would not reduce the size of works
contract. Therefore, the more NCB used in ADB financed projects in PRC, the more
efficiency of project procurements.

56.     The World Bank once conducted a simple review on foreign bidder
participation in ICB procurement for civil works in PRC. The purpose of this review
was to help the World Bank’s management better understand the situation in local
market and therefore make appropriate decision when deciding procurement review
thresholds and procurement methods to be used in the World Bank financed projects
in PRC.

57.    Eventually there were 63 contracts under ICB reviewed. These contracts
belonged to 13 projects, 10 in World Bank transport sector and 3 in urban sector.
The results of this review showed that all bidders and winners for civil works contracts
under ICB were Chinese. The ICB thresholds for these projects were US$10 million
or US$15 million.

58.     It is accordingly recommended that ADB increase the threshold of ICB for
civil works contracts in specific sectors based on an intensive review of contract
awards under its projects in PRC. This review could help ADB understand the status
of the bidders and winners of different contracts. If the review could find out some
contracts did not attract foreign contractors’ or suppliers’ interests, NCB could be
accepted as the major procurement method for civil works in specific sectors. The
use of NCB procedure would neither reduce the competition of bidding, nor reduce
the size of works contract. By using MBDs, the competition and quality of NCB will
not reduce.
                                                                                       18 

59.     The third policy change is that ADB delegate full function of procurement to its
local staff in PRCM. Currently, out of 52 ongoing projects in PRC, 25 ongoing
projects are administrated by PRCM. The procurement of these 25 ongoing projects
is reviewed by PRCM. However, PRCM can only approve the procurement of a civil
works contract under US$10 million and a goods contract under US$1 million.
Above those thresholds, PRCM should prepare memos and submit to HQs for
comments and approvals. Therefore, it is recommended that ADB have full
function of procurement management delegated to its staff in PRCM in order to
substantially improve the efficiency of procurement management by ADB.

60.    This delegation could help ADB improve its communication with EAs and IAs
on the issues in bidding documents, and also improve the efficiency of bidding
document reviews by ADB. The delegation can start from NCB procurement and
then ICB procurement.       The efficiency of procurement could be improved
accordingly. The use of MBDs will increase the demand for the delegation of NCB
procurement management since MBDs are in Chinese.

61.      The practice by World Bank is a good example. The World Bank has
already delegated the full function of procurement from HQs to its Beijing Office.
Now all procurement of contracts, whatever it is civil works, goods, or consultants, are
reviewed and endorsed by the World Bank Beijing Office. HQs play the role of policy
backup and provide its local procurement staff with procurement policy explanation,
good practices in other countries, troubleshooting, and so on.

62.     The issue of low bids is caused by ADB’s bid evaluation method. Some
domestic bidders won the contracts by submitting low-priced bids. Then during the
execution of the contract, these contractors sought price adjustments from EAs/IAs at
later stage through deliberate slowdown of the work progress. A study on PRC
Roads Sector Portfolio conducted in 2001 also identified the issue of low bids. The
situation of low bids was described by the study as follows:

            There are keen competitions amongst contractors to win contracts and
            some of them, therefore, bid in very low prices. Given that ADB
            guidelines require that EAs accept the lowest responsive bids, it is difficult
            for EAs to reject these low bids. It is also difficult for EAs to dismiss
            these contractors if they fail to perform specification after award as EAs
            have tight time schedules. The contractors therefore can ‘blackmail’ EAs
            by non-performance until EAs are forced to give bonuses or variation to
            enable contractors to continue.

63.      An interim measure was agreed by ADB to adoption of higher performance
security for low-priced bids. However, this measure is unfair to those who plan to
enter the construction market from outside with low-price strategy. This measure
gives performance security second function – prevent low bids.                 A higher
performance security included in the bidding document implicates that ADB admits
that all low-priced bids are deliberated or malicious at the time of preparation of bids,
like Ministry of Transport defined.
                                                                                       19 

64.    In fact, it is hard during bid evaluation to judge the motivation of a bidder who
submits a low-priced bid. Only contractors’ performance can prove whether their low
bids are deliberated/malicious or not. Therefore, it is recommended that ADB
setup a system to record the performance of contractors who submitted low bids and
conduct further study on this regards. This system should include:

            Clearly define the term of ‘low bid’;

            Determine a report procedure including report to whom, what to report,
            when to report, etc.;

            Determine the frequency of release a Blacklist to EAs; and

            Determine how to use the Blacklist including content of the Blacklist, how
            to use the Blacklist, etc.

65.       The bids delivered by the contractors who listed in the Blacklist can be refused
if their bids are still low bids.

B.3    Project Implementation Delay

66.    Project implementation delay is a general term. It includes the issues of loan
saving and cancellation, and loan extension. However, these two issues link
together closely. More loan saving might lead to more loan cancellation; More loan
saving might lead to more loan extension; More loan extension might lead to less loan
cancellation. The following table shows the number of loans with extension:

                     Table 3:     Loans with Extension by Years

                           1999     2000    2001    2002    2003    2004    2005    2006
Ongoing loans               50       46      48      46      39      35      41      47
Newly effective loans       12        3       6       4       5      10       9       4
Number of Loans with
                              4       7       5       5      13       4       8      10
extension

67.     The extension of loan closing dates is requested by the Government to utilize
loan savings. This can be proved by the decreasing trend of loan savings and
cancellations. However, in addition to the start-up delay, the real reasons for project
implementation delay are (i) slow process of procurement, (ii) changes of the scope of
project, and (iii) slowly financial close out the project.

68.     Slow process of procurement might be due to the poor quality of bidding
documents and bid evaluation reports. Poor quality of bidding documents and bid
evaluation reports led to the clarification by ADB. These questions and answers
prolong the process of procurement of one contract. Solving the procurement issue
could help improve the project implementation.

69.   Changes of project scope are another reason for project implementation delay.
Sometimes the changes of project scope are due to the poor project preparation. It
always takes time to evaluate the changes of project scope by ADB and the
                                                                                      20 

Government. The major changes of project scope often interrupt the original project
implementation arrangements. It also involves additional inputs and resources from
both ADB and the Government. The Government’s determination on strengthening
the management of ADB financed projects in PRC could help improve the quality of
project preparation, and then reduce the instance of changes of project scope.
Sometimes the changes of project scope are due to the economic development in
PRC. This development alters the needs of project partially or fully. These
changes are reasonable.

70.     The third reason for project implementation delay is that EAs need more time
to financially close out their projects. This occurred in the project where (i) the
measures of works were not taken in time, which caused arguments between
employers and contractors; (ii) the variation orders could not be accepted by EAs, if
the costs of variation exceed the budgets of engineering; and (iii) financial records
were not clear or completed so that EAs need more time to clean their financial
records. Therefore, the financial progresses of these projects were behind the
physical progresses of these projects. This situation becomes common in the
transport sector.

71.     To solve these issues needs efforts in both ADB and the Government sides.
For ADB, more supervision missions and more detailed work, both technical and
financial, are needed so that they can find the issue as early as possible. For the
Government, more measures should be taken. One example is that MOF Economic
Construction Department recently issued a notice 6 to improve the settlement of
financial accounts of completed investment projects financed by central government.
The notice requires the financial accounts of the investment projects should be settled
within 3 months after the completion of projects and sent to line departments for
reviews. The line departments should review the financial accounts and submit them
to MOF for approvals. Learning from this practice, MOF could issue a notice or
decree to regulate the behavior of settling the financial accounts of ADB financed
projects in PRC.

72.      Therefore, it is recommended that MOF make necessary study on the
reasons for loan extension and take action to avoid the loan extension if the physical
progress completes and financial issues are the only reason for loan extension. The
Notice issued by the Economic Construction Department of MOF is a good practice to
follow. It is also recommended that ADB pay closer attention to the projects which
will close within one year, particularly the financial aspect, to see whether the project
can be closed in time. In these aspects, necessary study under ongoing TA will be
undertaken.

B.4            Project Disbursement Delay

73.    Disbursement delay is also a repeated issue. ADB has been taking steps to
improve the disbursement. Full disbursement function for PRCM-administered

                                                              
6
     Cai Ban Jian [2008]#91(财政部关于进一步加强中央基本建设项目竣工财务决算工作的通知(财办建[2008]91 号))
                                                                                      21 

project has been delegated to PRCM. Therefore, the main reason for disbursement
delay is at EAs/IAs side. EAs/IAs take long time to prepare and process the
withdrawal applications. This undermines the efforts by ADB and pampering
financial progress which is not often in line with physical achievement. A number of
projects are much behind in achieving their disbursement targets. For example, by
CPRM 2006, there were 11 projects only achieving less than 70% of the
disbursement targets in 2005.

74.    CPRM 2006 identified the reasons for this disbursement issue.

75.     One reason for this issue, relating to procedures and policies, is the internal
approval of payment application. It takes long time for the end users to obtain
disbursements. The verification of withdrawal applications by finance bureaus and
line bureaus from county, city to province is a quite time-consuming process. This
mainly occurred in agriculture and natural resources sector which involves multi-level
of EAs and IAs. Some records kept by PRCM showed that it was averagely 20 days
by PRCM to finish its internal review of withdrawal applications. Then, the
disbursements are paid through these layers. It is easy to design how to streamline
the approval procedures, but it is difficult to implement because this involved the
rights and interests of approving withdrawal applications and pass by the payments.

76.     It is recommended that MOF discuss with local financial bureaus to update
the approval procedures for withdrawal application and payment procedures. For
example, the withdrawal applications are reviewed by each financial bureau at
different level, but the payment is made directly from provincial financial bureau to the
end users. Further study in this regard will be carried out under ongoing TA.

B.5    Financial Management Issue

77.     This issue includes two detailed issues. One is late submission of audited
project accounts (APA) and agency financial statements (AFS) by EAs and the other
is low quality of auditors’ reports.

78.     The late submission of APA and AFS is a repeated issue.           The following
table presents the status of submission of APA and AFS.




                       Table 4:   Submission of APA and AFS

                                          Complied          Partly
       Loans Due        Complied                                          Not Complied
                                             Late          Complied
Year      For
                        No. of           No. of           No. of            No. of
       Compliance                  %               %                %                 %
                        Loans            Loans            Loans             Loans
1999        34           22       65       10     29        1       3         1        3
2000        29           22       76        7     24        0       0         0        0
                                                                                      22 


2001        36             9      25       22       61       2        6       3        8
2002        31            19      61       9        29       3       10       0        0
2003        22             6      27       13       59       2        9       1        5
2004        19            17      90       1         5       1        5       0        0
2005        27            24      89       2         7       1        4       0        0
2006        29            24      83       5        17       0        0       0        0

79.     One of the reasons identified by CPRMs for late submission of APA and AFS
was that PMOs need more time to summarize financial statements since there may
be several levels involved in preparation of financial statements, especially social
sector projects. This particularly occurred in the projects that involved lots of IAs and
two or three levels of EAs. If the financial statements were prepared manually, it
took more time for EAs to consolidate the financial statements prepared by IAs or by
lower EAs.

80.     Except for delay in submission APA and AFS, the issue in the quality of audit
reports was raised by CPRM 2006. This quality issue includes:

            There were differences in loan disbursement between ADB’s records and
            EAs’ and IAs’ records.

            Some of the audit reports do not cover the requirements by ADB and
            some do not contain separate opinions on the audits of SOE transactions.

            Audit recommendations were not implemented by EAs and IAs, but no
            reason was provided.

            The financial statements contained in the audited project accounts were
            not signed by EAs’ and IAs’ management.

            Translation from Chinese to English was not in good quality.

81.    ADB has taken efforts to solve these issues. Two training workshops for
China National Audit Office (CNAO) staff were completed in October 2005 under
RETA 6122. Discussions were held between PRCM and CNAO about the auditing
issues in 2002, 2003, and 2004. CNAO is to authorize to access Loan Financial
Information System (LFIS).

82.     Preparation of financial management manual (FMM) is a good way to improve
EAs’ financial management. FMM should include the requirements on internal
control of project, project accounting and reporting, and disbursement procedures and
documentation and submission of APA and AFS. FMM could be used for the
trainings on financial management of ADB project.

83.    So it is recommended that ADB require EAs to prepare FMM.

84.     It is also recommended that (i) auditors bind timing with their audit
recommendations, in addition to improve the capacity of auditors and (ii) the ADB
financial management specialist inform ADB team leaders of the audit
recommendations and have them supervised during ADB’s supervision missions.
                                                                                              23 

B.6     Specific Sector Issues

85.     Specific sector issues identified by CPRMs from 2000 are summarized in
Annex 2. The main sectors of ADB’s portfolio in the PRC include agriculture and
natural resources sector, energy sector, transport and communication sector, and
water supply, sanitation, and waste management sector. The issues occurred
repeatedly in each sector are presented in the following table.

          Table 5:    Repeated Issues in Each Sector Identified by CPRMs

                    Sector                                          Repeated Issues
A. Agriculture and Natural Resources                       1.   Implementation delays.
B. Energy                                                  1.   Start-up delays;
                                                           2.   Low energy tariff.
C. Transport and Communication                             1.   Start-up delays;
                                                           2.   Extension of loan closing
                                                                dates.
D. Water Supply, Sanitation, and Waste                     1.   Start-up delays;
   Management                                              2.   Loan cancellation.

86.    The issue of start-up delays means the extraordinary long time from loan
approval to loan effectiveness. This issue was discussed in the above section and
recommendations to solve this issue were proposed as well. Therefore, there is no
need to discuss it any more here.

87.      Low energy tariff mainly relates to low electricity tariff. Tariff including
electricity tariff, heating tariff, water tariff, wastewater tariff, etc. is a sensitive subject.
This subject relates to not only the project financial viability, but also the State macro
price policy. Furthermore, the State macro price policy is a critical factor. The
adjustment of tariff has to follow the State macro price policy. Therefore,
understanding the State macro price policy is critical to design loan covenant on tariff.
Because of this, this issue is beyond the scope of this study.

88.     The issue of extension of loan closing date interrelates to the issue of loan
cancellation. These issues occurred in both of Transport and Communication Sector
and Water Supply, Sanitation, and Waste Management Sector. The main reason for
these issues is inaccurate cost estimate during project preparation and low awarded
contract price during the implementation of the project, in addition to the change of
project scope which is another reason for loan savings and cancellation. Inaccurate
cost estimate and low awarded contract price caused loan savings. Extension of
loan closing dates is to have additional time to exhaust the loan savings.
Cancellation of loan is the end of extension of loan closing dates since EAs and IAs
could not exhaust all loans within certain period of time.

89.     Inaccurate cost estimate is closely related to design institutes which are
responsible for the feasibility study on investment projects. In general, the feasibility
study reports are the basis of ADB’s projects in PRC. Obviously the costs estimated
by feasibility study reports are not accurate due to the quantities of engineering which
                                                                                    24 

are estimated before detailed surveys. In addition, by doing feasibility studies,
design institutes use the unit costs which are published and adjusted regularly by the
government. These unit costs reflect the actual costs of finished investment costs.
But they hardly reflect the current costs in the markets. Several years ago, World
Bank conducted a study on the difference between market prices and norms issued
by the Government. Therefore, it is recommended that ADB make (i) a study on
the project cost estimated by design institutes to explore the reasons for inaccurate
project cost estimate and find ways for ADB’s project teams to judge the accuracy of
project costs estimated by design institutes; and (ii) a further study on cost estimate
by design institutes in order to understand the difference between market prices and
the norms issued by the Government. In these aspects, necessary study under
ongoing TA will be undertaken.

90.     Implementation delay is the only repeated issue occurred in Agriculture and
Natural Resources Sector. Most projects in this sector have many subprojects and
involved many implementing agencies at provincial, municipality, and county levels.
Coordinating the activities of project implementation caused the delay.           To
coordinate the project implementing activities, project implementation manual (PIM) is
a good way to instruct EAs and IAs how to implement their portions of the project.
PIM should be comprised of different manuals and plans, such as financial
management manual, procurement manual, participation manual if any,
environmental monitoring plan, ethnic minority development plan, resettlement action
plan, etc. PIM could help different EAs and IAs understand how to implement the
project with the same procedures, timeframe, and standards, etc. and thus coordinate
their project implementation. PIM should be distributed every staff in EAs and IAs in
order to guide their work.

91.     Therefore, it is recommended that EAs prepare PIM with assistance from
PPTA consultants, particularly for the projects involving many EAs and IAs at
multi-levels. PIM could be one of the conditions for loan negotiation since the
readiness of PIM implicates that the project finish its preparation and all necessary
documents for project implementation are included by PIM.

C.     Issues Relating to EAs/IAs’ Capacity

92.     This section discussed the issue caused by EAs/IAs’ low capacity which
influences the performance of ADB’s portfolio in PRC. Recommendations to
strengthen EAs/IAs’ capacity were also discussed in this section.

C.1    Issues Caused by EAs/IAs’ Low Capacity

93.    Some of the repeated issues identified by CPRMs are caused by EAs/IAs low
capacity. EAs/IAs low capacity means that EAs/IAs are unfamiliar with ADB and the
Government policies, guidelines, procedures, and requirements. The repeated
issues caused by EAs/IAs low capacity include start-up delays, procurement issues,
and disbursement issue.
                                                                                    25 

94.      To strengthen the capacity of EAs/IAs, ADB and the Government made great
efforts in this field. A Guidebook for preparing a Project for an ADB Loan is under
preparation. Workshops/seminars/trainings on ADB and domestic procedures were
held every year for new EAs/IAs.

95.     Because of lack of familiarity of EAs/IAs with ADB and the Government
procedures, the start of project implementation was delayed. Therefore, the
following workshops on ADB procedures were made:

           Workshops on ADB procedures about loan processing were conducted
           for new EAs/IAs every year since 2001:
           A 3-day workshop on ADB procedures was organized by MOF in Yantai,
           Shandong Province from June 6 to 8, 2001;
           A 3-day workshop on project preparation for ADB financed project 2002
           was held by MOF in Zhenjiang, Jiangsu Province from August 6 to 8,
           2002;
           A workshop on the project feasibility and funds was held by NDRC in
           August 2003;
           A 1-day workshop on the management of foreign funded projects was
           held by NDRC on September 23, 2003;
           A 2-day workshop on World Bank and Asian Development Bank
           operations was jointly held by WBOB, PRCM and NDRC on April 9 to 10,
           2004.
           PRCM staff made presentation on how to prepare an ADB loan, focusing
           on ADB’s requirements and procedures for loan processing. All these
           workshops were to help EAs understand ADB requirements on project
           preparation and improve the efficiency of project preparation by EAs/IAs.

96.      Because of not fully familiar with ADB procurement procedures and
requirements, some procurement issues are raised. For instance, due to the lack of
familiarity of ADB’s bidding procedure and SBDs, in many occasions the EAs and
their tendering agencies submitted the bidding documents which were not well
prepared. This resulted in the delay in approval of the bidding documents, and
eventually the delay in the bid evaluation process. Another example is that some bid
evaluation reports were poorly prepared resulting in a need to seek clarifications from
the executing agencies concerned and their appointed procurement agencies. This
caused the delays in ADB approving the bid evaluation reports and contract awards.

97.    Because of not familiar with ADB disbursement procedures, disbursement
delays occurred. Therefore, ADB provided the following trainings for financial staff of
EAs/IAs.

           Two seminars on ADB disbursement were held in Nanjing, Jiangsu
           Province on October 21 to 24, 2003 and in Yinchuan, Ningxia Province on
           October 28 to 31, 2003.
                                                                                26 

           A one-day workshop on disbursement operations was held in PRCM on
           December 27, 2002. It covered ADB’s disbursement policies and
           procedures as well as loan accounting, LIBOR-Based lending instruments,
           and preparation of withdrawal applications.

           A three-day workshop on disbursement operations was held in Xiamen in
           November 2003.

           During 2007, 5 disbursement seminars were in held in Nanjing,
           Zhengzhou, Hohhot, Baiyangdian, and Yuncheng respectively.

           From January to August 2008, 6 disbursement seminars were held in
           Hefei, Jinan (2 seminars), Taiyuan, Kunming, and Yinchuan respectively.

           In July 2008, a two-day workshop on disbursement was held in PRCM for
           EAs/IAs from Baiyin City of Gansu Province.

98.    Since most of EAs/IAs only implement one ADB project, they have no further
opportunity to use their experience gained in ADB project preparation and
implementation. Therefore, strengthening EAs/IAs capacity needs a long-term
program.

C.2  Survey and Results on EAs’ Capacity of Project Implementation
Management

99.    To clearly understand EAs’ capacity of project implementation management a
survey was made to collect information from EAs in August 2007. The survey was
conducted by the Questionnaire on Project Implementation Management, which was
comprised of the following seven parts

           Organization Establishment and Development;
           Utilization of Consultants;
           Procurement;
           Control and Coordination;
           Financial Management;
           Reporting; and
           EAs’ Comments.

100. This Questionnaire was sent to EAs of 18 projects in Transport and
Communications Sector and Water Supply, Sanitation and Waste Management
Sector. There were 11 replies received. Annex 3 summarizes the replies to the
Questionnaire.

101. These replies show that EAs are equipped with adequate staff for project
implementation. Most of them are full-time staff. However, most of EAs indicated
that their directors had been changed during project implementation and almost half
of EAs expressed that their staff had been changed as well. There is no doubt that
these changes increased the workload of trainings.
                                                                                  27 

102. Most of EAs expressed that they received sufficient trainings for project
implementation, including procurement, disbursement, financial management, and
project performance management system (PPMS). Only a few of them indicated
that the trainings on procurement, financial management, and PPMS were insufficient.
On the other hand, EAs also organized trainings to IAs, mainly focusing on
procurement, disbursement and financial management. Some EAs provided IAs
with trainings on PPMS as well.

103. Apart from trainings, consultants also provide assistance to EAs to make up
their low capacity in project implementation. The replies to the Questionnaire show
that consultants had provided efficient assistance to EAs on engineering technique,
contract management, and financial management.

104. With regard to the control and coordination, EAs have set up good mechanism
to control and coordinate the implementation of their projects.

105. EAs replied that they had prepared job descriptions for each staff and also the
operation manual in order to ensure the quality of project implementation.
Procedures for staff turnover are also regulated.

106. More than half of replies indicated that the project leading groups (PLGs) had
their meetings every month, another half of replies showed that their PLGs had
meetings irregularly. PLG is the top management of project. Normally its role is to
coordinate the activities of project implementation and accordingly make crucial
decisions. Therefore, frequent meetings or irregular meetings of PLG are not good
practice for project management. This indicates the need for clear definition and
operation of PLG.

107. Besides PLG, another management organization responsible for project
management is project management office (PMO). Half of replies showed that their
PMOs had meetings every week and another half of replies showed that their PMOs
had meetings every month.       Since PMO had the responsibility for routine
management of project implementation, frequent meetings help the leaders of PMO
understand the progress and issues occurred to the project. This is a good practice
for project management.

108. However, the replies to the Questionnaire showed that more than half of
PMOs visited project sites every week. On the other hand, most of them carried out
the checkup of project regularly or irregularly. There is inconsistence between these
two indications. PMO visited project site but did not carry out project checkup.
PMO carried out project checkup but it was not PMO’s site visit. From this analysis,
it is easily to understand the importance of providing trainings on project
management.

109. PPMS is one of the tools for project control and coordination. Most EAs
agrees that PPMS is useful for project management and the indicators are relevant to
project management. Although they indicated that they had budget for maintaining
PPMS, they met difficulties in collecting data for PPMS and maintaining PPMS
                                                                                   28 

technically. Therefore, the trainings on PPMS should also consider including the
technology of data collection and PPMS maintenance.

110. At the aspect of procurement, all replies showed that the bidding documents
and bid evaluation reports were reviewed by PMOs before they were submitted for
approval. However, poor quality of procurement documents is one of procurement
issues which were discussed above. Although it is hard to make direct links between
the replies to the Questionnaire and the procurement issue, it passes a message that
the quality control of procurement document should be included in the trainings on
procurement or project management.

111. At the aspect of financial management, the technology of internal audit should
be also included in the trainings on financial management since all replies to the
Questionnaire showed that all PMOs had set up internal audit departments and had
adequate staff, but the trainings contents on financial management never included
internal audit. Internal audit is a quiet new field in PRC.

112. All EAs in their replies indicated that they used financial management software.
Some used User Friends System, some used others. This is a good practice for EAs
to improve the efficiency of consolidating financial statements since it took EAs more
time to consolidate the financial statements manually.

113. To sum up, EAs were equipped with adequate staff and got sufficient trainings
on ADB’s guidelines. But the following areas need to give close attention since they
are useful to improve project implementation management:

           The opportunity of training should equal to all EAs so that every EAs could
           get sufficient trainings.

           The training on project management should give more attention to how to
           manage a project, rather than implementing a project. For example, how
           PLG to have meetings; how EAs to manage a project, such as how to use
           consultants, how to control the quality of a project.

           The training on PPMS should consider providing EAs with the technology
           of data collection and PPMS maintenance.

           The training on procurement should consider including the technology of
           quality control on procurement documents, in addition to preparation of
           procurement documents.

           Training on financial management should consider giving training on
           internal audit besides the trainings on internal control, accounting and
           reporting, and disbursement, etc.

           Computerized accounting should be included in the project financial
           management.

114. In addition to the trainings provided by ADB, the role of consultants in
strengthening EAs’ capacity should be seriously considered by ADB team since it is a
                                                                                                29 

normal practice for ADB’s projects in PRC to have consultant service. Providing
trainings on ADB’s guidelines should be added to the TOR of consultant service.

C.3      Survey and Results on the Needs for EAs/IAs’ Capacity Building

115. In order to strengthen EAs/IAs’ capacity more efficiently, a survey was
conducted in September 2008. This survey was carried out by the Questionnaire on
Needs for EAs/IAs Capacity Building which was distributed to the participants from
project provinces who attended CPRM 2008 seminar.

116. There are 20 replies to the Questionnaire received, 12 from financial bureaus,
6 from EAs, and 2 from IAs. These replies are summarized in Annex 4 and the
following table describes briefly these replies.

                Table 5:   Brief Description of Replies to 2nd Questionnaire

                                       EAs                   IAs            Financial Bureaus
Total replies                           6                    2                        12
I. Trainings received
 1.Disbursement                         6                    2                        12
 2.Procurement                          6                    2                        11
 3.Financial
                                        6                    1                        10
management
 4.PPMS                                 3                    1                        7
 5.Contract
                                        5                    1                        5
management
II. Training need
 1.Basic disbursement                   2                                             1
 2.Advance
                                        4                    1                        5
disbursement
 3.Basic procurement                    2                                             1
 4.Advance
                                        4                    2                        6
procurement
III. Other trainings       Project management,    Contract              Financial management,
                           Financial              management,           Variation control,
                           management,            Project management.   Contract management,
                           PPMS,                                        Monitoring and
                           Project preparation,                         evaluation,
                           Variation control.                           Project preparation,
                                                                        Performance
                                                                        management

117. According to the replies from financial bureaus, the trainings provided by ADB
focused on disbursement, procurement, and financial management. Some of
financial bureaus also received the trainings on PPMS and contract management.
These trainings greatly improved the understanding of ADB’s procedures.
                                                                                       30 

118. Thanks to trainings provided by ADB, financial bureaus are not content with
the basic trainings on ADB’s procedures. They need advance trainings. For
example, they need trainings on disbursement by case study. Trainers prepare
cases learnt from their daily work and show the best or worst practices to the trainees
in training courses.

119. In addition to the trainings on disbursement and procurement, financial
bureaus also expressed their requirements on trainings in their replies. The top
priority of training content listed includes:

            Financial management;
            Contract management, including variation control;
            Performance management;
            Monitoring and evaluation; and
            Project preparation skills, including not only ADB’s approval procedures,
            but also domestic approval procedures.

120. Trainings are a traditional and efficient way to strengthen the capacity of
financial bureaus which have macro management function on ADB’s portfolio in PRC,
particularly in their specific provinces. Besides trainings, the following assistances
can also help the staff in financial bureaus improve their capacity:

            Frequent dialogue with other financial bureaus;
            Study tours to the projects which are implemented better and faster;
            PRCM should play more roles in order to communicate with ADB at least
            cost;
            MOF should build a platform for exchange of experiences and lessons
            gained from project preparation and implementation;
            ADB’s support, including frequent project supervision;
            Provision of formal sample documents;
            Consultants’ supports in implementing projects;
            Provision of good practice;
            Timely translation; and
            Improve the efficiency of approving project adjustment after midterm
            review.

121. Financial bureaus also expressed their opinions on capacity building in their
replies to the Questionnaire. In their opinions, the top priority to build the capacity of
the staff in financial bureaus includes:

            ADB’s policies and procedures;
            Disbursement;
            Procurement;
            Financial management;
            Contract management; and
            Relevant policies.
                                                                                   31 

122. In addition to the replies to the Questionnaire from financial bureaus, 6 EAs
and 2 IAs also replied the Questionnaire. In their replies, EAs and IAs indicated that
they all established project management units (PMUs) within their organizations for
their project implementation. The most trainings those EAs and IAs received were
comprised of disbursement, procurement, financial management, and contract
management. Some of EAs and IAs received the trainings on PPMS as well.
Besides the basic training on ADB’s policies, procedures, and requirements, EAs and
IAs expressed their needs for advance training, i.e. demonstrating ADB’s policies,
procedures, and requirements through case studies. For instance, through case
studies, EAs and IAs can be educated how to prepare bidding documents, how to
evaluate bids, and how to prepare bid evaluation reports, etc.

123. In their replies, EAs and IAs also indicated their urgent training needs to
strengthen their capacities. These training needs include:

           Comprehensive project management;
           Financial management;
           PPMS;
           Project preparation skills, including not only ADB’s approval procedures,
           but also domestic approval procedures;
           Variation control; and
           Contract management.

124. Besides their training needs, EAs and IAs also need the following assistances
to their capacity building:

           Communicate through newsletter with EAs and IAs about the Government
           and ADB policies, suggestions, and instructions;

           Answer EAs and IAs questions;

           Provide EAs and IAs with platform for exchange experiences and lessons
           of project management;

           Develop project management software;

           Provide best practice of project management;

           Sample documents; and

           Timely translation.

125. To summarize, EAs and IAs including financial bureaus have received
trainings mainly on ADB’s guidelines. Normally these trainings only involved the
ADB’s guidelines such as procurement guidelines, disbursement guidelines, project
financial management, and PPMS, etc. The purpose of these trainings was to
illustrate the requirements of these guidelines. For example, the procurement
training touch them what steps of ICB procedure were and what should do in each
step. But this was not enough for them to conduct good procurement because they
did not understand the reasons of the requirements and they did not kwon how to do.
                                                                                 32 

This is why EAs and IAs including financial bureaus in the replies to the 2nd
Questionnaire expressed their needs to received advance trainings, e.g. trainings
based on case study and trainings demonstrating good practice.

126. On the other hand, only following ADB’s guidelines could not implement the
projects very well. Implementing an ADB project needs lots of knowledge. ADB’s
guidelines are part of the knowledge for project implementation. Some common
knowledge is also critical to the successful implementation of an ADB project. For
instance, contract management is key management knowledge not only for ADB
projects, but also for other projects financed by others such as the Government.
Looking at EAs/IAs’ history, it is easy to understand that most of EAs/IAs were
organized for ADB projects. ADB projects were their first projects. They had
chance neither to learn the knowledge of contract management, nor to accumulate
the experience and lessons for contract management. Therefore, the trainings they
received during the implementation of ADB projects should include other knowledge
relating to project implementation management, in addition to ADB’s guidelines, such
as project management, contract management including variation control,
engineering quality control, and so on.

127. Thirdly, the implementation of ADB projects involves many institutions.
Different institutions play different roles.       Financial bureaus have macro
management function over ADB projects. Except for understanding all ADB’s
guidelines, they should particularly understand ADB’s requirements on financial
management and disbursement. During the preparation and implementation of ADB
projects, financial bureaus play another role, harmonizing ADB’s requirements and
guidelines with the Government laws and regulations. Therefore, the trainings on
ADB guidelines should have clear target. The target trainees of disbursement
should be the staff from financial bureaus and from EAs and IAs. The target trainees
of procurement should be the staff from EAs and IAs. The target trainees of project
preparation should be the staff from national and provincial development and reform
commission and EAs and IAs. The target trainees of contract management should
be the staff from EAs and IAs.

128. Lastly, the trainings should be provided in accordance with the project
progress. The trainings on ADB project preparation should be provided during the
period of project preparation while the basic trainings on disbursement and
procurement should be provided when the project is ready to implement. It is
efficient to provide training to EAs and IAs when they need these trainings.

 C.4   Recommendations to strengthen EAs/IAs’ Capacity

129. Thanks to the strengthened EAs and IAs, ADB’s portfolio in PRC has been
one of the best among ADB’s developing member countries. On the other hand, low
capacity of EAs and IAs is one of the reasons for some issues of project
implementation.
                                                                                    33 

130. Therefore, ADB has plans to continue provide trainings to EAs and IAs. But
ADB needs to consider the efficiency of trainings. Single training course and simple
training methodology are not cost effective. ADB needs a long-term training program
including classification of trainers, classification of trainees, training methodology,
training material, timeframe and so on.

131. To help strengthen EAs/IAs’ capacity, more trainers are needed. At the
moment the main training provider for ADB projects in PRC is ADB or PRCM. The
fact of strengthening EAs/IAs capacity by trainings demonstrates that strengthening
EAs/IAs’ capacity in implementing ADB’s projects in PRC mainly relies on ADB’s
efforts Over past 20 years, the trainings on ADB’s policies, guidelines, procedures,
and requirements were provided by ADB or PRCM staff.. In accordance with its
Country Partnership Strategy (CPS), ADB or PRCM should persevere to provide
trainings. The key element involved is to improve the efficiency of training by ADB or
to provide sustainable training by ADB to EAs/IAs.

132.       Although ADB’s staff could explained ADB’s polices, guidelines, procedures,
and requirements very well, it was difficult for them sometimes to illustrate the
reasons behind those polices, guidelines, procedures, and requirements since they
were not the experts in those fields concerned or the training time was not enough for
them to illustrate the reasons. Therefore, it is recommended that ADB cooperate
with universities / training institutes to provide long term training course to EAs and
IAs. It is also recommended that ADB develop pool of trainers to provide routine
trainings to EAs and IAs so as to reduce ADB or PRCM staff workload of training.

133. Like World Bank has a program to cooperate with Tsinghua University to
provide procurement trainings, ADB should consider cooperating with one of well
known Chinese universities in Beijing to provide series trainings, not only on ADB’s
policies, guidelines, procedures, and requirements, but also on project management,
contract management, and other skills useful for improving the                project
implementation management. This university should provide continued training
courses to EAs and IAs, each for 5 days. During these training courses, EAs and IAs
could learn about ADB’s requirements and the reasons for these requirements such
as basic principles of economic, law, and engineering which support those
requirements. During these training courses, EAs and IAs could learn basic
knowledge of project implementation management, such as contract management,
engineering quality control. During these training courses, EAs and IAs could also
learn the best practices for project implementation management by case study drew
from real ADB projects in PRC or in other DMCs.

134. To improve the efficiency of training, ADB should consider a trainer’s training
program. The purpose of this program is to provide local trainers with ADB’s polices,
guidelines, procedures, and requirements and help them develop detailed training
programs for EAs and IAs within their provinces. The first element in this program is
to select trainers. The trainers could be selected by each project province. The
trainings should include all requirements on project management by ADB and the
                                                                                   34 

Government. For example, the training on disbursement should include ADB
disbursement requirements and a requirements regulated by financial bureaus. The
trainers should provide basic trainings to EAs and IAs on ADB guidelines, but
concentrate on the requirements by financial bureaus.

135. The responsibilities of those trainers above discussed are summarizing in the
following table.

                 Table 6:   Summary of Trainers Responsibilities

                                            University /      ADB or         Local
                                             Institute        PRCM          Trainer
Loan processing
Basic disbursement
Advance disbursement
Basic procurement
Advance procurement
Financial management
PPMS
Use of SBDs
Project management
Contract management
Engineering variation control
Engineering quality control
Basic principles of economic, law, and
engineering
Requirements by the Government

136. In addition to develop more trainers to help provide rich trainings to EAs and
IAs, training methodology should be improved. The training method of Participatory
Approach (PA) should be introduced to all training courses whatever it is provided by
university or ADB staff or trainers so that EAs and IAs can be involved vividly in the
training. This follows the principle of Learning by doing.

137. As discussed above, the trainings to EAS and IAs for ADB project in PRC
should include ADB’s polices guidelines, procedures, and requirements. It should
also include the knowledge involved in implementing ADB projects since efficiently
implementing projects involves lots of knowledge and technologies. Based on the
past training practice and the needs expressed by EAs and IAs including financial
bureaus, it is recommended that ADB consider including the following into its
long-term training program:

           ADB guidelines, procedures, and requirements

                ADB’s requirements and procedures for loan processing;
                ADB disbursement procedures;
                                                                                      35 

                  ADB procurement guidelines, including quality control of procurement
                  documents;
                  Financial management;
                  PPMS, including data collection and PPMS maintenance; and
                  Use of SBDs.

             Knowledge relating to improve implementing ADB projects

                  Project management;
                  Contract management;
                  Engineering variation control; and
                  Engineering quality control;

138. In addition to the above training, it is also recommended that trainings be
divided into two levels – basic and advance. The basic level training focuses on
demonstration of ADB’s policies, guidelines, procedures, and requirements. The
advance level training concentrates on illustrating ADB’s policies, guidelines,
procedures, and requirements by case study or showing best practices.

139. The training practice shows that the efficient training somewhat depends on
the timing selected. For instance, it is too early to provide disbursement training
when the project is only at the stage of project preparation. It is too late to provide
procurement training when the project is already at the stage of implementation. It is
recommended that training arrangements link with project progress. The following
table proposes the proper timing for trainings:

                Table 7:   Relationship between Trainings and Timing

                                     I        II        III    IV       V        VI
Loan processing
Basic disbursement
Advance disbursement
Basic procurement
Advance procurement
Financial management
PPMS
Project management
Contract management
Engineering variation control
Engineering quality control

I = Country Programming and Project Identification
II = Project Preparation
III = Project Appraisal
IV = Loan Negotiations, Approval, Signing, and Effectiveness
V = Project Implementation
VI = Project Evaluation
                                                                                     36 

140. Timing is good for efficient training. Careful classification of trainees is also
good efficient training. The disbursement training, particular advance disbursement
training is much suitable for financial staff, though it is not harmful for engineers to
understand ADB’s requirements on disbursement. On the other hand, the detailed
explanation on the use SBDs is not suitable for financial staff. Therefore, it is
recommended that the selection of trainees consider their background. The
following table presents the relationship between trainees and the training they
attend.

           Table 8:   Relationship between Trainees and their Training

                                                   Financial Bureau          EA     IA
Loan processing
Basic disbursement
Advance disbursement
Basic procurement
Advance procurement
Financial management
PPMS
Project management
Contract management
Engineering variation control
Engineering quality control
Requirements by the Government

141. The capacity of auditors is another weakness of ADB’s project management in
PRC. To strengthen the capacity of local auditors, it is recommended that ADB and
CNAO work together to prepare an audit manual and provide trainings for trainers
selected by provincial audit offices to have them understood ADB and CNAO’s
requirements on the audit of ADB financed projects in PRC.
                                                                                                                              37 




IV. ANNEX


Annex 1


                                                   Issues and Reasons Identified by CPRMs
          Issues
                         CPRM 2006                     CPRM 2004                   CPRM 2002                   CPRM 2000
Start-up Delays    Some areas of mismatch       EAs are not fully familiar   EAs are not fully familiar   EAs are not fully
                   between ADB and PRC          with ADB procedures          with ADB procedures          familiar with ADB
                   procedures for project       Delays in the internal       Re-lending and               procedures
                   approval and                 Government approval for      on-lending agreements        Re-lending and
                   procurement                  project feasibility study    are a pre-condition for      on-lending agreements
                   Lack of familiarity of EAs   report (FSR)                 loan effectiveness. It       are a pre-condition for
                   with ADB and domestic        Sixty days after loan        takes time to finalize the   loan effectiveness. It
                   procedures                   signing, the                 on-lending arrangement       takes time to finalize
                   On-lending                   commitments charges          among the central            the on-lending
                   and/re-lending               commence. Therefore          government, local            arrangement among
                   agreement not finalized      the Government and the       government and EA            the central government,
                   Conditions for loan          EA prefer to postpone        Delays in the internal       local government and
                   effectiveness not met        loan signing and ensuing     Government approval for      EA
                   Delays in procurement        loan effectiveness until     project feasibility study    Sixty days after loan
                   and recruitment of           the first contracts are      report (FSR)                 signing, the
                   consultants                  ready to be awarded          Sixty days after loan        commitments charges
                   Project taken up for ADB                                  signing, the                 commence. Therefore
                   Board approval when not                                   commitments charges          the Government and
                                                                                                                       38 




                                              Issues and Reasons Identified by CPRMs
         Issues
                                  CPRM 2006    CPRM 2004                   CPRM 2002                 CPRM 2000
                            yet ready                               commence. Therefore        the EA prefer to
                                                                    the Government and the     postpone loan signing
                                                                    EA prefer to postpone      and ensuing loan
                                                                    loan signing and ensuing   effectiveness until the
                                                                    loan effectiveness until   first contracts are ready
                                                                    the first contracts are    to be awarded
                                                                    ready to be awarded        Project portfolio
                                                                                               transferred from PBC to
                                                                                               MOF in 1998 resulting
                                                                                               in procedural changes
Delay in Start of Project                                                                      Delay in Government
Construction                                                                                   approval for start of
                                                                                               project construction due
                                                                                               to reasons that include:
                                                                                                  a) Macroeconomic
                                                                                                      changes
                                                                                                      impacting on the
                                                                                                      project
                                                                                                  b) Delay in obtaining
                                                                                                      commitment       for
                                                                                                      local
                                                                                                      financing/charges
                                                                                                      in        financing
                                                                                                                                39 




                                                  Issues and Reasons Identified by CPRMs
       Issues
                        CPRM 2006                   CPRM 2004                   CPRM 2002                   CPRM 2000
                                                                                                             arrangements
                                                                                                         c) Changes              in
                                                                                                             demand       supply
                                                                                                             position for project
                                                                                                             outputs
                                                                                                         d) Review of project
                                                                                                             financial viability
Loan Savings and   Reduction in actual costs   Actual project costs less   Actual project costs less   Actual project costs
Cancellation       compared to appraisal       than appraisal estimates    than appraisal estimates    less than appraisal
                   cost estimates              due to:                     due to:                     estimates due to:
                   Cancellation of               a) Initial reference        a) Initial reference        a) Initial reference
                   subcomponents                    point for cost              point for cost               point for cost
                   Use of alternate                 estimates are               estimates are                estimates are
                   financing                        conservative and            conservative and             conservative and
                   Excess provision of              based on norms              based on norms               based on norms
                   contingency                      that may be                 that may be                  that may be
                                                    outdated                    outdated                     outdated
                                                 b) Decline in               b) Decline in               b) Decline in
                                                    equipment prices            equipment prices             equipment prices
                                                    due to market               due to market                due to market
                                                    conditions                  conditions                   conditions
                                                 c) Bidding process          c) Bidding process          c) Bidding process
                                                    results in low bid          results in low bid           results in low bid
                                                                                                                                  40 




                                                       Issues and Reasons Identified by CPRMs
        Issues
                              CPRM 2006                  CPRM 2004                   CPRM 2002                  CPRM 2000
                                                         prices, particularly        prices, particularly        prices, particularly
                                                         when local bidders          when local bidders          when local bidders
                                                         are successful              are successful              are successful
                                                      d) Estimates for            d) Estimates for            d) Estimates for
                                                         contingencies are           contingencies are           contingencies are
                                                         high                        high                        high
                                                      e) EAs have                 e) EAs have                 e) EAs have
                                                         substituted cheaper         substituted cheaper         substituted
                                                         local funds fo              local funds fo              cheaper local
                                                         packages earlier            packages earlier            funds fo packages
                                                         identified for ADB          identified for ADB          earlier identified
                                                         financing                   financing                   for ADB financing
                                                    Scope changes and           Scope changes and           Scope changes and
                                                    cancellation of project     cancellation of project     cancellation of project
                                                    components                  components                  components
Frequent Loan            Delays in start-up
Extensions               Delays in procurement
                         and disbursement
                         Changes of EA/IA
                         implementation
                         arrangements, project
                         design and scope
Procurement Issues and   Delay in bidding process   EAs not adequately          EAs not adequately          EAs not adequately
                                                                                                                               41 




                                                        Issues and Reasons Identified by CPRMs
        Issues
                               CPRM 2006                   CPRM 2004                  CPRM 2002                 CPRM 2000
Low Contract Awards      due to unfamiliarity with   familiar with ADB          familiar with ADB          familiar with ADB
                         ADB procedures              procurement procedures     procurement procedures     procurement
Inadequate quality of    Slow response time from     Some EAs do not always     Some EAs do not always     procedures
bidding documents, bid   ADB                         adhere to these            adhere to these
evaluation reports       Poor quality of bidding     procedures                 procedures
                         documents
Adherence to ADB         Unrealistic annual
procurement              targets for contract
procedures               awards
                         Low bids
                         Mismatch between ADB
                         and domestic
                         procedures
Project Implementation   Need for closer
Delays                   supervision
                         Quicker response to
                         implementation issues
Non Compliance with      Qualification and           Optimistic demand          Optimistic demand          Optimistic demand
Financial Covenants      experience of accounting    forecasts                  forecasts                  forecasts
                         personnel varies            Government policy          Government policy          Government policy
                         significantly from one EA   changes (from              changes (from              changes (from
                         to another                  Government controlled      Government controlled      Government controlled
                         Project financial           pricing system to market   pricing system to market   pricing system to
                                                                                                                             42 




                                                         Issues and Reasons Identified by CPRMs
        Issues
                               CPRM 2006                    CPRM 2004                CPRM 2002               CPRM 2000
                         statements are not           based pricing)           based pricing)           market based pricing)
                         standardized                 Inadequate tariff        Inadequate tariff        Inadequate tariff
                         EA does not fully            increases of utilities   increases of utilities   increases of utilities
                         understand the purpose,      Inability to meet the    Inability to meet the    The above factors
                         definitions, and             covenanted financial     covenanted financial     render some of the
                         calculation methods for      ratios after operation   ratios after operation   projects financially
                         financial ratio covenants                                                      unviable
Late Submission of       EAs do not pay enough        Lack of adequately       Lack of adequately       Lack of adequately
Audited Project          attention to deadline or     qualified/trained        qualified/trained        qualified/trained
Accounts/Corporate       do not know what to          personnel in the EAs     personnel in the EAs     personnel in the EAs
Financial Statements     prepare
                         Misunderstanding of the
Inadequate quality of    wording ‘furnish’ in loan
the Audited Financial    agreements
Statements and Project   PMOs need more time to
Accounts submitted by    summarize financial
EAs                      statements since there
                         may be several levels
                         involved in preparation of
                         financial statements,
                         especially social sector
                         projects
                         ADB does not have
                                                                                                                                  43 




                                                          Issues and Reasons Identified by CPRMs
         Issues
                                CPRM 2006                   CPRM 2004                  CPRM 2002                 CPRM 2000
                           manual that covers
                           project audits
Project Performance        The need to extend and
Management                 improve project
                           performance monitoring
                           and evaluation to include
                           a greater emphasis on
                           development results and
                           outcomes
                           The need for EAs and
                           central agency staff to
                           become familiar with the
                           concept f project
                           performance
                           management
Delay in Recruiting and                                Many EAs do not feel       Many EAs do not feel       Many EAs do not feel
Mobilizing International                               that the international     that the international     that the international
Consultants                                            consultants are actually   consultants are actually   consultants are actually
                                                       needed and that            needed and that            needed and that
                                                       person-months should       person-months should       person-months should
                                                       be kept to the minimum.    be kept to the minimum.    be kept to the minimum.
                                                       EAs consider domestic      EAs consider domestic      EAs consider domestic
                                                       consultants adequately     consultants adequately     consultants adequately
                                                                                                                   44 




                                        Issues and Reasons Identified by CPRMs
        Issues
                         CPRM 2006         CPRM 2004                   CPRM 2002                  CPRM 2000
                                     qualified for the           qualified for the           qualified for the
                                     consulting services         consulting services         consulting services
                                     ADB recommends              ADB recommends
                                     consultants based on        consultants based on
                                     specific expertise needs;   specific expertise needs;
                                     also for independent        also for independent
                                     review to ensure quality    review to ensure quality
                                     and good practices.         and good practices.
                                     Would be based on EA        Would be based on EA
                                     and project specific        and project specific
                                     needs                       needs
Change in EA during                  EA changes were part of     EA changes were part of     EA changes were part
Project Implementation               the sector reforms          the sector reforms          of the sector reforms
Slow Disbursement                    EAs unfamiliar with ADB     EAs unfamiliar with ADB
                                     disbursement                disbursement
                                     procedures                  procedures
                                     Long disbursement           Long disbursement
                                     processing time             processing time
Communication                        Need for better             Need for better
                                     communication among         communication among
                                     the Government, ADB         the Government, ADB
                                     and the EAs to bring        and the EAs to bring
                                     about greater               about greater
                                                                                                                     45 




                                            Issues and Reasons Identified by CPRMs
         Issues
                             CPRM 2006         CPRM 2004                   CPRM 2002                 CPRM 2000
                                         understanding of ADB        understanding of ADB
                                         policies                    policies
In transport sector,
sometimes there is
increase in costs due to
unforeseen geological
conditions
Consideration of low                     Due to intense              Due to intense
bids in civil works                      competition and lack of     competition and lack of
contracts, particularly in               unit rate bidding           unit rate bidding
transport sector in bid                  knowledge; sometimes        knowledge; sometimes
evaluation reports                       deliberately low bids are   deliberately low bids are
                                         submitted                   submitted
Non Compliance with
other Loan Covenants
Non Compliance with                                                                              EAs primary focus is on
Policy Covenants                                                                                 physical
                                                                                                 implementation
                                                                                                 For EAs policy aspects
                                                                                                 do not have immediate
                                                                                                 impacts
                                                                                                                                  46 




Annex 2


                                                               Sector Specific Issues Identified by CPRMs
          Sectors
                                      CPRM 2006                  CPRM 2004                    CPRM 2002               CPRM 2000
A. Agriculture and Natural   1.   Implementation          1. Implementation             1. Implementation
   Resources                      delays;                    delays.                       delays.
                             2.   Difficulties in getting
                                  timely disbursement;
                             3.   Inadequate
                                  counterpart funds.
B. Energy                    1.   Start-up delays;        1. Start-up delays;           1. Start-up delays;
                             2.   Low energy tariffs;     2. Change in EAs and          2. Change in EAs and
                             3.   Major change in scope.     IAs;                           IAs;
                                                          3. Late submission of         3. Insufficient electricity
                                                             audited project                tariff and weak
                                                             accounts and agency            financial performance;
                                                             financial statements;      4. Substantial
                                                          4. Insufficient electricity       cancellation of loan
                                                             tariff and weak                proceeds;
                                                             financial performance.     5. Extension of loan
                                                                                            closing date;
C. Transport and             Railways:                    Railways:                     Railways:
   Communications            1. Inadequate capacity of    1. Extension of loan          1. Start-up delays;
                                 EA;                          closing date;             2. Extension of loan
                                                                                                                          47 




                                                             Sector Specific Issues Identified by CPRMs
        Sectors
                                 CPRM 2006                      CPRM 2004                 CPRM 2002           CPRM 2000
                          2. Unrealistic traffic         2. Poor financial            closing date.
                             forecasts;                     performance of local
                          3. Constraints to traffic on      railways.
                             a network basis;
                          4. Inappropriate
                             debt-equity ratios;
                          5. Poor quality of
                             monitoring and
                             evaluation reports for
                             land acquisition and
                             resettlement.
                          Roads:                         Roads:                    Roads:
                          1. Start-up delays;            1. Start-up delays;       1. Start-up delays;
                          2. Subsequent                  2. Poor project cost      2. Poor project cost
                             extension of loan              estimates;                estimates;
                             closing date;               3. Low bids;              3. Low bid prices;
                          3. Substantial loan            4. Extension of loan      4. Delays in procurement
                             savings and                    closing dates.            process;
                             cancellations.                                        5. Extension of loan
                                                                                      closing date.
D. Water Supply,          1. Start-up delays;            1. Start-up delays;       1. Change in project
   Sanitation and Waste   2. Delays in procurement       2. Weak project              scope;
   Management                process and low                performance and        2. Non-compliance with
                                                                                                   48 




                                        Sector Specific Issues Identified by CPRMs
Sectors
                   CPRM 2006               CPRM 2004                 CPRM 2002         CPRM 2000
               contract awards;        benefits monitoring;       loan financial
          3.   Delays in initial    3. Delays in submission       covenants;
               disbursements on        of audited project      3. Start-up delays;
               contracts;              accounts and agency     4. Slow disbursement;
          4.   Loan savings and        financial statements;   5. Loan cancellation.
               cancellations;       4. Large loan
          5.   Over-estimation of      cancellations.
               costs;
          6.   Ineffective
               implementation of
               PPMS
                                                                                                     49 


Annex 3


                           Questionnaire on Project Implementation Management


Organization Establishment and Development

            Do you have adequate staff for project implementation management?
    1       Yes                                                                                     11 7
            No


            How many full-time and part-time staff are there in EA?
    2       Nos. of full-time                                                                       309
            Nos. of part-time                                                                       114


            Is there any documented job description for each member or responsibility
            assignment?
    3
            Yes                                                                                     11
            No


            Is there staff turnover during project implementation process?
                                                                           change of directors       7
    4       Yes                                                            change of staff at
                                                                                                     4
                                                                           working level
            No                                                                                       3


            Are there any regulations or set procedures for staff turnover?
    5       Yes                                                                                     10
            No                                                                                       1


            Are there any project implementation regulations or working manual?
    6       Yes                                                                                      9
            No                                                                                       2


            Have staff at working level received sufficient trainings on project
    7
            implementation management?
            Sufficient                                                                               9
            Insufficient                                                   in procurement            2
                                                                           in disbursement

                                                              
7
     The number in the right column of the table implies the number of EAs selected this option. 
                                                                                               50 


                                                                 in financial management       1
                                                                 in PPMS                       1
                                                                 in others (please identify)


            Has EA organized training to the project IAs?
                                                                 procurement                   9
                                                                 disbursement                  9
    8       Yes, training on                                     financial management          11
                                                                 PPMS                          5
                                                                                               8
                                                                 others (please identify)
            No


            Do you have financing for project administrative cost, including cost for salary of
            staff, translation/interpretation, report production, site visits and etc.?
    9
            Yes                                                                                10
            No                                                                                 1


Utilization of Consultants

            Do you have Chinese version of Project Progress Report?
            Yes                                                                                11
                                                                 but have a summary in
    10
                                                                 Chinese
            No
                                                                 neither summary in
                                                                 Chinese


            Has the Project Progress Report ever been circulated within PMO?
    11      Yes                                                                                11
            No


            On which aspect do you think the consultants have provided the most efficient
            assistance on project implementation management?
            Contract management                                                                7
            Engineering technique                                                              8
    12
            Financial management                                                               5
            Training                                                                           6
            On-the-job training                                                                5
            others (please specify)


                                                              
8
     Road Surface Engineering and English 
                                                                                   51 


Procurement

         Do you have any evaluation criteria for selection of Tendering Compnay?
    13   Yes                                                                       11
         No


         Do PMO and consultant team have specially assigned person responsible for
         reviewing Bidding Documents and BER before submission for approval?
    14
         Yes                                                                       11
         No
 
         Which of the following figures best describes the coordination relationship
         among PMO, Tendering Company, Design Institute and Consultant Team in the
         preparation of Bidding Documents and bid evaluation process?

               CT              CT

                                             PMO

                              PMO
    15         PMO

                                      TC              CT
                              TC
                                              DI
          TC         DI


                              DI

                                                                       (none of them)
               (4)            ()             (6)                             (1)


Control and Coordination

         Does PLG hold meetings?
                                                       weekly                      1
                                                       monthly                     6
                                                       quarterly                   1
    16   Yes
                                                       semi-annually               1
                                                       annually                    2
                                                       irregular                   5
         No


17       Does PMO have regulations for meetings?
         Yes                                           weekly                      5
                                                       monthly                     7
                                                       quarterly                   1
                                                       semi-annually               1
                                                                                 52 


                                                    annually                     1
                                                    irregular                    2
     No


     Does PMO visit project site?
                                                    weekly                       6
                                                    monthly                      2
                                                    quarterly                    2
18   Yes
                                                    semi-annually                1
                                                    annually                     1
                                                    irregular                    3
     No                                                                          2


     Does PMO carry out checkup?
                                                    On a regular basis only      1
                                                    Irregular checkup only       2
19   Yes
                                                    Mix of regular and
                                                                                 8
                                                    irregular checkup
     No


     Do you have internal reporting system on project implementation progress?
                                                    weekly                       1
                                                    monthly                      7
                                                    quarterly                    4
20   Yes
                                                    semi-annually                1
                                                    annually                     1
                                                    irregular                    1
     No


     Have the completed works been prepared for billing and certified in time?
     Yes                                                                         9
21
     Medium level of efficiency                                                  2
     No


     Do you have budget arrangement for maintaining PPMS, such as data
     collection and social survey?
22
     Yes                                                                         10
     No                                                                          1


23   Do you think PPMS is useful for project implementation management?
                                                                                                    53 


            Yes, very useful                                                                        5
            Useful                                                                                  4
            Not clear                                                                               1
            Not useful                                                                              1
            No use at all


            Do you think the Design and Monitoring Framework and the indicators are
            relevant to project implementation management?
            Yes, very reasonable.                                                                   2
    24      Reasonable                                                                              7
            Not clear                                                                               1
            Not reasonable                                                                          1
            No reasonable at all


            Do you think it difficult to collect data and maintain PPMS?
            Very difficult                                                                          1
    25      Difficult                                                                               5
            Little difficulty                                                                       5
            No difficult


            Has the Project Performance Monitoring System Report ever been circulated
            within PMO?
    26
            Yes                                                                                     9
            No                                                                                      2


Financial Management

            Have you utilized financial management software?
    27      Yes (please identify)                                                                  11 9
            No


            Do you have internal audit department for financial management?
                                                                             The internal audit
                                                                             department have       10
                                                                             adequate staff
    28      Yes
                                                                             The internal audit
                                                                             department does not    1
                                                                             have adequate staff
            No
                                                              
9
     User Friend System (3), Wanneng (1), Xiaomifeng (2), and Kingdee (1) 
                                                                                    54 



     Do you checkup financial management system?
                                                      On a regular basis           2
29   Yes
                                                      Irregular checkup            9
     No


     Have project consultants reviewed and improved existing financial
     management system?
30
     Yes                                                                           7
     No                                                                            3


Reporting

     Do you have adequate facilities for maintaining a filing system for the project?
     Sufficient                                                                    10
31
     Middle level of sufficiency                                                   1
     Insufficient


     Do you have specially assigned person responsible for filing, maintaining and
     utilizing the archive of the filing system?
32
     Yes                                                                           11
     No


     Which of the following is included in your filing system?
     Feasibility Study Report, design documents and etc.                           11
     Loan documents including Loan Agreement, Project Agreement,
                                                                                   11
     RRP,PAM and etc.
     Latest publications of ADB guidelines and policies                            11
     Procurement documents including Bidding Documents, BER etc.                   11
33   Bids                                                                          11
     Contract variation documents including applications and approvals             11
     Disbursement documents including withdrawal applications and
                                                                                   11
     supporting documents
     Accountings and financial documents                                           11
     General communications documents including fax and e-mail                     10
     Others (please identify)                                                      2


Your comments on project implementation management:
                                                                                        55 


1. Equip with sufficient technical staff in order to accomplish their own job better.

2. Construction supervisors should strengthen their supervision, besides strictly
managing and controlling the quality and progress in site, contact measurement and
variation should be efficiently controlled according to relevant regulation and
procedures.

3. During project implementation, it is better to use completed and mature office
software and measurement software in order to improve the efficiency of office work
and the accuracy of contract measurement.

4. Supervising the project regularly and irregularly and reward the good and fine the
bad in order to promote the quality and progress of the project and other works.

5. If the winner could not implement their responsibilities and obligations according to
the contract, and could not efficiently make progress and meet the requirements of
quality, they should leave.

6. Project management staff should improve the ability continuously by actively
learning in order to finish their work of project management.
                                                                         56 


Annex 4


          Questionnaire on Needs for EA and IA Capacity Building

                      项目单位能力建设需求调查表 
 
单位名称:EA 
单位性质:⑹EA                 □IA             □财政         
项目名称:__________________________________________________________ 
本项目中,有(27)个 EA,有(>108)个 IA。 
    EA 是否为本项目在内部设立了项目管理机构(PMU)?  ⑹是                                □否 
    IA 是否为本项目在内部设立了项目管理机构(PMU)?  □是                                □否
本项目之前,项目单位人员是否有过其他亚行项目的实施经验?⑷有                                     ⑵没有
本项目之前,项目单位人员是否有过世行项目的实施经验?                                  ⑸有     ⑴没有
项目管理人员接受过哪些关于亚行项目的培训?
    ⑹支付   ⑹采购     ⑹财务管理        ⑶项目绩效管理体系                ⑸合同管理      ⑶其他
如果将支付培训分成基础培训与应用培训,项目单位将选择:
    ⑵ 基础培训(讲解亚行支付的基本程序、文件要求等)
    ⑷ 应用培训(以案例分析的方式讲解亚行支付要求以及现场问题解答)
    ⑵ 没有必要将培训区分成基础培训与应用培训
如果将采购培训分成基础培训与应用培训,项目单位将选择:
    ⑵ 基础培训(讲解亚行采购指南、咨询顾问聘请指南)
    ⑷ 应用培训(讲解招标文件的编制、评标方法、评标报告编制)
    ⑵ 没有必要将培训区分成基础培训与应用培训
除支付与采购培训外,为提高工作人员能力,项目单位还需要哪些方面的培训?
(请列出三项最需要的培训)
    1.项目综合管理;财务管理;项目绩效管理体系;项目前期准备程序、不但
    要重视亚行审批程序,还应包括国内前期准备审批程序的培训以及前期准备
    技巧的培训;工程变更控制。
    2.针对培训人员的培训;绩效管理;问题与解决途径指南系统查询培训;合
    同管理;项目管理;绩效评价。
    3.绩效评价管理培训;合同管理;绩效管理;财务管理及亚行新产品介绍。
除培训外,为了提高工作人员实施项目的能力,项目单位还需要哪些帮助?(请
列出三项最需要的帮助)
    1.通过 newsletter 等及时传达亚行或国家有关部门的精神、建议、指导等;
                                       57 


 到项目单位具体进行业务咨询和问题解答;对打梱项目需要报账与支付与凭
 证相关内容的培训;提供同类项目管理交流的平台;      [项目列入计划以后,
 财政部、亚行应重点对 EA 人员进行培训,XX 组织各省 EA 的经验交流。从南
 宁市外资项目管理经验看,EA 的作用十分重要,也是项目得以顺利实施的
 XX。不仅要指导子项目准备及报项目审批资料,还要协调发改委、财政、土
 地、规划、环保等部门的关系,并协调各子项目工作进展速度(对打梱项目
 尤为重要) ,还要与贷款机构沟通协调,配套资金的筹措等各方面工作。据
 了解各地对解决上述问题有许多好的经验,也总结不少教训。希望财政部能
 建立这类交流平台。此外,发挥财政部门在项目准备过程中的主导作用,建
 议解决国家发改委[2006]28 号文和财政部 38 号令文件冲突的问题。]提供
 多种形式的技术援助。
 2.开发统一管理软件,标准化管理;信息查询电子版平台;提供示范案例。
 3.和项目设计单位沟通,使项目初设符合亚行程序要求;提供现场考察。
请列出工作人员实施项目能力是需要加强的三个方面(可以包括上述的支付与采
购在内):
 1.项目管理能力;外语能力适应亚行要求;亚行新政策培训;采购及合同管
 理。
 2.协调沟通能力;熟练掌握支付要求,不致因人为因素影响支付进度;支付
 和财务管理。
 3.采购各种常见问题处理,特别是国内采购和亚行要求理解有异议的问题处
 理;合同管理;综合项目管理能力。
项目所设计的加强机构(包括工作人员)能力措施中,最有必要的措施包括:
 1.财务培训;稳定管理人员(包括执行机构、实施机构和亚行项目管理人员);
 培训;制度建设;人员培训措施。
 2.采购培训;减少繁琐程序,充分利用国内资源;实地考察交流;人员配置;
 项目管理(建设期) 、合同管理措施。
 3.绩效管理培训;重点对最基层项目人员进行重点培训,解决根本问题,可
 以利用技援人员逐单位、逐人解决;人员培训;项目运营框架的设计、可持
 续发展的运营机制的措施及规划。
例列举一个感受最深的与能力建设有关的事例,并作简单说明:
1. 亚行污水处理项目进度很快,项目经理和其他人员与河南省各级机构合作很
   好,普遍称赞,特别是灵活高效的采购和支付等。
2. 项目实施后,能力建设重点建议放在报表编制、提款报账、合同执行与审计
   协调等方面的工作,以及上述几方面知识和新政策的培训。希望应用培训的
   比重大一些,重点解决共性、矛盾突出的问题。项目关账前一年对项目执行
   单位进行结算资料准备方面的培训。目前,EA 为了提高项目实施和提款报账
   进度和质量,我们多次组织业主、监理、承包商相关知识培训,并充分利用
   咨询公司智力资源,但仍感觉深度不够建议。亚行在举办培训时,培训地点
   可选择不同城市,让这些相关部门人员在比较低的成本条件下接受培训,提
   高管理水平。
3. 项目建成后,运营机制建立和可持续发展战略等方面的考量,业主商务管理
                                   58 


 和诚信机制建立和完善。


请列出加强机构(包括工作人员)能力需要做的几项工作:(可以重复上述的建
议)
1.简化程序,简化程序,简化程序;执行机构对项目管理应建立怎样的机制?
2.充分利用国内管理资源,扶持国内咨询机构建设;EA 或财政、审计如何协调
对项目的绩效评价?这些评价能否统一协调减少 IA 日常应付各类考评、检查负
担。
3.节省资金,重点加强基层人员、机构能力建设;亚行、财政部能否组织开展外
债理债业务培训?亚行能否为项目单位提供理债金融工具,  尤其在目前人民升值
较快的形势下,在项目建设期如何运用一些金融工具减少贷款成本和汇率风险。
4.请亚行帮助项目单位建立项目运营可持续发展的框架结构, 确保项目建成后能
真正发挥项目长期效益,并做到建设资金借得了、用得好、还得了,并实现项目
的社会经济效益。
                                                                59 

 

                    项目单位能力建设需求调查表 
 
单位名称:IA 
单位性质:□EA              ⑵IA          □财政        
项目名称:__________________________________________________________ 
本项目中,有⑵个 EA,有⑵个 IA。 
    EA 是否为本项目在内部设立了项目管理机构(PMU)?  □是                       □否 
    IA 是否为本项目在内部设立了项目管理机构(PMU)?                   ⑵是      □否
本项目之前,项目单位人员是否有过其他亚行项目的实施经验?⑴有                            ⑴没有
本项目之前,项目单位人员是否有过世行项目的实施经验?                          ⑴有    ⑴没有
项目管理人员接受过哪些关于亚行项目的培训?
    ⑵支付   ⑵采购   ⑴财务管理       ⑴项目绩效管理体系            ⑴合同管理    ⑴其他
如果将支付培训分成基础培训与应用培训,项目单位将选择:
    □ 基础培训(讲解亚行支付的基本程序、文件要求等)
    ⑴ 应用培训(以案例分析的方式讲解亚行支付要求以及现场问题解答)
    ⑴ 没有必要将培训区分成基础培训与应用培训
如果将采购培训分成基础培训与应用培训,项目单位将选择:
    □ 基础培训(讲解亚行采购指南、咨询顾问聘请指南)
    ⑵ 应用培训(讲解招标文件的编制、评标方法、评标报告编制)
    □ 没有必要将培训区分成基础培训与应用培训
除支付与采购培训外,为提高工作人员能力,项目单位还需要哪些方面的培训?
(请列出三项最需要的培训)
    1.合同管理;项目管理;
    2.绩效评价;合同管理;
    3.财务管理。
除培训外,为了提高工作人员实施项目的能力,项目单位还需要哪些帮助?(请
列出三项最需要的帮助)
    1.项目交流;
    2.规范的样本;
    3.及时翻译。
请列出工作人员实施项目能力建设时是需要加强的三个方面(可以包括上述的支
                                  60 


付与采购在内):
 1.亚行相关条款和程序的学习;财务管理。
 2.对绩效报告和要求的理解;采购。
 3.对支付报表和程序规范性的学习;支付。
项目所设计的加强机构(包括工作人员)能力措施中,最有必要的措施包括:
 1.对设计院的相关培训。
 2.
 3.
例举一个感受最深的与能力建设有关的事例,并作简单说明:


请列出加强机构(包括工作人员)能力需要做的几项工作:(可以重复上述的建
议)
1.项目管理体系的建立、培训。
2.咨询商的尽早介入。
                                                                61 

 

                    项目单位能力建设需求调查表 
 
单位名称:财政部门 
单位性质:□EA              □IA          ⑿财政 
项目名称:__________________________________________________________ 
本项目中,有__________个 EA,有__________个 IA。 
    EA 是否为本项目在内部设立了项目管理机构(PMU)?  □是                       □否 
    IA 是否为本项目在内部设立了项目管理机构(PMU)?                 □是        □否
本项目之前,项目单位人员是否有过其他亚行项目的实施经验?⑷有                            ⑻没有
本项目之前,项目单位人员是否有过世行项目的实施经验?                          ⑹有    ⑹没有
项目管理人员接受过哪些关于亚行项目的培训?
    ⑿支付   ⑾采购   ⑽财务管理       ⑺项目绩效管理体系         ⑸合同管理       ⑵其他
如果将支付培训分成基础培训与应用培训,项目单位将选择:
    ⑴ 基础培训(讲解亚行支付的基本程序、文件要求等)
    ⑸ 应用培训(以案例分析的方式讲解亚行支付要求以及现场问题解答)
    ⑹ 没有必要将培训区分成基础培训与应用培训
如果将采购培训分成基础培训与应用培训,项目单位将选择:
    ⑴ 基础培训(讲解亚行采购指南、咨询顾问聘请指南)
    ⑹ 应用培训(讲解招标文件的编制、评标方法、评标报告编制)
    ⑸ 没有必要将培训区分成基础培训与应用培训
除支付与采购培训外,为提高工作人员能力,项目单位还需要哪些方面的培训?
(请列出三项最需要的培训)
    1.财务管理;工程变更控制;英语培训;招投标方面;合同管理;监测与评
    价;项目前期准备程序、不但要重视亚行审批程序,还应包括国内前期准备
    审批程序的培训以及前期准备技巧的培训;绩效管理;联系已经完成的类似
    项目的项目管理部门和项目单位,去实地学习和考查。
    2.审计;绩效评价;相关专业领域的知识和技术培训;合同管理;项目单位
    之间横向交流和座谈; 项目管理;与审计部门沟通能力;项目进度管理体系。
    3.项目绩效管理;财务管理及亚行新产品介绍;项目准备前期、中期、后期
    工作程流程培训;语言(英语) ;内部控制;绩效评价;阶段性项目总结与
    附加值运用。
                                        62 


除培训外,为了提高工作人员实施项目的能力,项目单位还需要哪些帮助?(请
列出三项最需要的帮助)
 1.项目交流;介绍正在实施的、进度比本项目快的单位,前去实地学习和考
 查;北京代表处的功能发挥,最小成本完成与亚行沟通;加强沟通;      [项目
 列入计划以后,财政部、亚行应重点对 EA 人员进行培训,XX 组织各省 EA
 的经验交流。从南宁市外资项目管理经验看,EA 的作用十分重要,也是项目
 得以顺利实施的 XX。不仅要指导子项目准备及报项目审批资料,还要协调发
 改委、财政、土地、规划、环保等部门的关系,并协调各子项目工作进展速
 度(对打梱项目尤为重要)  ,还要与贷款机构沟通协调,配套资金的筹措等
 各方面工作。 据了解各地对解决上述问题有许多好的经验,  也总结不少教训。
 希望财政部能建立这类交流平台。此外,发挥财政部门在项目准备过程中的
 主导作用,建议解决国家发改委[2006]28 号文和财政部 38 号令文件冲突
 的问题。 ]来自于亚行方面的技术支持,频繁地项目和检查有助于项目单位
 高效优质地实施项目;经验交流;亚行项目规划相关信息及时公布;能否组
 织项目海选?实地考察;  兄弟省市经验交流; 提供多种形式的技术援助;   ADB
 官方语言的培训。
 2.规范的样本;进行项目实施后如何进行管理的培训;亚行检查团人员应相
 对固定,减少沟通成本;业务指导;有针对性提供培训,并结合项目 XX 来
 开展培训(如绩效管理等) ;交流考察;亚行新推的产品应及时向项目单位
 推广; 招投标;咨询专家有关实施项目专业领域技术的帮助;提供示范案例;
 具体项目实施经验的交流。
 3.及时翻译;项目调整批准程序较长,应改革工作机制,特别是建设期三年
 以上的项目;加快部分中央有关部委对项目的审批进度;咨询专家等过程的
 指导;内部控制;语言(英语) ;项目经理人员相对固定;提供现场考察;
 实地考察项目实施好的现场。
请列出工作人员实施项目能力建设时是需要加强的三个方面(可以包括上述的支
付与采购在内):
 1.亚行相关条款和程序的学习;亚行规则;专业知识;支付与采购;支付及
 相关政策,财务处理;采购及合同管理。
 2.对绩效报告和要求的理解;强化项目的内控机制;综合协调能力;合同管
 理,包括内控程序的完善等等;支付;采购;采购程序、相关政策;支付和
 财务管理。
 3.对支付报表和程序规范性的学习;项目培训的高级别研讨,例如:大检查
 应调整为 1 次/年;外语;财务管理包括具体的会计合核算及审计要求;内
 部控制;谈判能力;英文;综合项目管理能力。
项目所设计的加强机构(包括工作人员)能力措施中,最有必要的措施包括:
 1.多次、多层次的培训,包括亚行政策调整;人员培训措施;机构的设置合
 理,EA 设置尤其关键;培训会;优秀项目经验交流,向优秀项目学习,到其
 实地考察;支付及相关政策,财务处理;制度建设。
                                       63 


 2.及时沟通和快速处理有关困难,避免无意识失误;项目管理(建设期)、
 合同管理措施;分层次的人员培训;实地考察;亚行多加强各方面的培训;
 采购程序、相关政策;人员配置。
 3.发挥亚行驻京办作用,项目管理模版中文化管理;项目运营框架的设计、
 可持续发展的运营机制的措施及规划; 加强项目建成后运行管理,包括机制、
 体制方面;经验交流;英文;人员培训。
例列举一个感受最深的与能力建设有关的事例,并作简单说明:
 4. 2002-2008 年,通过世行贷款淮河小污染防治项目建设,安徽省沿淮 8
    个市(县)均建立了城市排水公司,通过能力建设,使项目实现机构实现
    了真正意义上的有限责任公司,自主经营、自负盈亏。公司每年进行企业
    计划的编制、进行财务预测,根据实际情况,调整企业经营战备和规划。
 5. 项目实施后,能力建设重点建议放在报表编制、提款报账、合同执行与审
    计协调等方面的工作,以及上述几方面知识和新政策的培训。希望应用培
    训的比重大一些,重点解决共性、矛盾突出的问题。项目关账前一年对项
    目执行单位进行结算资料准备方面的培训。目前,EA 为了提高项目实施
    和提款报账进度和质量,我们多次组织业主、监理、承包商相关知识培训,
    并充分利用咨询公司智力资源,但仍感觉深度不够建议。亚行在举办培训
    时,培训地点可选择不同城市,让这些相关部门人员在比较低的成本条件
    下接受培训,提高管理水平。
 6. 项目建成后,运营机制建立和可持续发展战略等方面的考量,业主商务管
    理和诚信机制建立和完善。
请列出加强机构(包括工作人员)能力需要做的几项工作:(可以重复上述的建
议)
1.进行与支付、采购等相关的培训;有先进经验、成功项目的实地考察;内部控
制体系的建立;亚行及国内高层人员的关注并提供支持;执行机构对项目管理应
建立怎样的机制?建立稳定的项目办管理队伍, 给予项目办有关人员正式事业编
制;培训层次化,提高项目管理参与者级别,以便适应 EA、IA 的层级管理的需
求。
2.兄弟省市之间的经验交流;各种培训和各种研讨会;合同管理;机构内各部门
之间的有效沟通和协调;EA 或财政、审计如何协调对项目的绩效评价?这些评
价能否统一协调减少 IA 日常应付各类考评、检查负担;保证机构开展工作所必
须的经费;研讨、推广项目实施的“附加值”效应,例:创新机制建立、应用,
特别是亚行、财政部在附加值推动力量的回顾和发扬。
3.移民安置;提高 EA、IA 主要人员项目管理能力;亚行、财政部能否组织开展
外债理债业务培训?亚行能否为项目单位提供理债金融工具,    尤其在目前人民升
值较快的形势下,在项目建设期如何运用一些金融工具减少贷款成本和汇率风
险;不断有序进行业务知识培训;加强能力建设目标,除项目执行外,应关注项
目内控体系建设项目绩效过程化管理应用。
4.经常性的培训(包括项目管理的各个方面及后续运行管理);请亚行帮助项目
                                 64 


单位建立项目运营可持续发展的框架结构,确保项目建成后能真正发挥项目长期
效益,并做到建设资金借得了、用得好、还得了,并实现项目的社会经济效益;
研讨会资料准备、成果应中文化,应方便知识的推广和交流,主要文件模版中文
化等等。
5.与行业部门机制创新结合起来。
 

				
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