Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: PAD452
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED FUNDS
IN THE AMOUNT OF US$ 90.5 MILLION
TO THE
ISLAMIC REPUBLIC OF AFGHANISTAN
FOR A
KABUL Urban Transport Efficiency Improvement PROJECT
March 25, 2014
Transport Unit
Sustainable Development
South Asia Region
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without World
Bank authorization.
CURRENCY EQUIVALENTS
(Exchange Rate Effective { January 31, 2014})
Currency Unit
US$
=
=
=
US$1
SDR 1
January 1
FISCAL YEAR
–
December 31
ABBREVIATIONS AND ACRONYMS
ARTF
BP
CAS
CQS
DA
DR&SS
EIA
EIRR
ESIA
ESMF
ESMP
FM
FMM
GoA
HDM
IBRD
ICB
IDA
IFR
ISN
km
KM
Afghanistan Reconstruction Trust
Fund
Bank Procedure
Country Assistant Strategy
Selection Based on Consultants’
Qualifications
Designated Account
Design Review & Site Supervision
Environment Impact Assessment
Economic Internal Rate of Return
Environmental & Social Impact
Assessment
Environmental and Social
Management Framework
Environmental and Social
Management Plan
Financial Management
Financial Management Manual
Government of Afghanistan
Highway Design Model
International Bank of Reconstruction
and Development
International Competitive Bidding
International Development Association
Interim Financial Report
Interim Strategy Note
kilometer
Kabul Municipality
Regional Vice President:
Country Director:
Sector Director:
Sector Manager:
Task Team Leader:
LOS
Level Of Service
M&E
Monitoring and Evaluation
MFR
Monitoring Financial Report
MoUDA Ministry of Urban Development
Affairs
MOTCA Ministry of Transport and Civil
Aviation
MoF
Ministry of Finance
MPW
Ministry of Public Works
NCB
National Competitive Bidding
O&M
Operation and Maintenance
OP
Operational Policy
ORAF
Operational Risk Assessment
Framework
Project Development Objective
Program Management Unit
Quality Based Selection
Quality Control
Quality
and
Cost
Based
Selection
Resettlement Action Plan
Resettlement Policy Framework
Social Assessment
Standard Bidding Document
Specific Investment Loan
Sole Source Selection
PDO
PMU
QBS
QC
QCBS
RAP
RPF
SA
SBD
SIL
SSS
Philippe H. Le Houerou
Robert J. Saum
John Henry Stein
Karla Gonzalez Carvajal
Luquan Tian
AFGHANISTAN
Kabul Urban Transport Efficiency Improvement
TABLE OF CONTENTS
Page
I.
STRATEGIC CONTEXT .................................................................................................1
A. Country Context .............................................................................................................. 1
B. Situations of Urgent Need of Assistance or Capacity Constraints ................................. 1
C. Sectorial and Institutional Context.................................................................................. 3
D. Higher Level Objectives to which the Project Contributes ............................................ 4
II.
PROJECT DEVELOPMENT OBJECTIVE(S)..............................................................4
A. PDO................................................................................................................................. 4
B. Project Beneficiaries ....................................................................................................... 4
C. PDO Level Results Indicators ......................................................................................... 4
III.
PROJECT DESCRIPTION ..............................................................................................5
A. Project Components ........................................................................................................ 5
B. Project Financing ............................................................................................................ 5
Project Cost and Financing ................................................................................................... 5
C. Lessons Learned and Reflected in the Project Design .................................................... 6
IV.
IMPLEMENTATION .......................................................................................................6
A. Institutional and Implementation Arrangements ............................................................ 6
B. Results Monitoring and Evaluation ................................................................................ 6
C. Sustainability................................................................................................................... 7
V.
KEY RISKS AND MITIGATION MEASURES ............................................................8
A. Risk Ratings Summary Table ......................................................................................... 8
B. Overall Risk Rating Explanation .................................................................................... 8
VI.
APPRAISAL SUMMARY ................................................................................................8
A. Economic Analysis ......................................................................................................... 8
B. Technical ......................................................................................................................... 9
C. Financial Management .................................................................................................. 10
D. Procurement .................................................................................................................. 11
E. Social (including Safeguards) ....................................................................................... 11
F. Environment (including Safeguards) ............................................................................ 12
Annex 1: Result Framework and Monitoring ...........................................................................13
Annex 2: Detailed Project Description .......................................................................................18
Annex 3: Project Institutional and Implementation Arrangements .......................................23
Annex 4: Implementation Support Plan ....................................................................................44
Project Maps.................................................................................................................................48
PAD DATA SHEET
Afghanistan
Kabul Urban Transport Efficiency Improvement Project (P131864)
PROJECT APPRAISAL DOCUMENT
.
SOUTH ASIA
SASDT
Report No.: PAD452
.
Basic Information
Project ID
EA Category
Team Leader
P131864
B - Partial Assessment
Luquan Tian
Lending Instrument
Fragile and/or Capacity Constraints [ X ]
Specific Investment Loan
Financial Intermediaries [ ]
Series of Projects [ X ]
Project Implementation Start Date
Project Implementation End Date
15-Apr-2014
Dec 31, 2019
Expected Effectiveness Date
Expected Closing Date
15-Apr-2014
Dec 31, 2019
Joint IFC
No
Sector Manager
Sector Director
Karla Gonzalez Carvajal John Henry Stein
Country Director
Regional Vice President
Robert J. Saum
Philippe H. Le Houerou
.
Borrower: Islamic Republic of Afghanistan
Responsible Agency: Kabul Municipality (KM)
Contact: Eng. Mohammad Yunus Nawandish
Title:
Kabul Mayor
Telephone No.: 0093202101350
Email:
nawandish@hotmail.com
.
Approval Authority
Approval Authority
Board/AOB Decision
please explain
The project will be fully funded by Afghanistan Reconstruction Trust Fund (ARTF); and ARTF Management
Committee is in the approval position.
.
Project Financing Data(in USD Million)
[ ]
Loan
[X]
Grant
[ ]
Credit
[ ]
IDA Grant [ ]
Total Project Cost:
90.50
[ ]
Guarantee
Other
Total Bank Financing:
0.00
Financing Gap:
0.00
.
Financing Source
Amount
Borrower
0.00
Afghanistan Reconstruction Trust Fund
90.50
Total
90.50
.
Expected Disbursements (in USD Million)
Fiscal
Year
2014
2015
2016
2017
2018
2019
2020
0000
0000
Annual
3.90
18.50
27.00
18.00
13.10
8.00
2.00
0.00
0.00
Cumulati 3.90
ve
22.40
49.40
67.40
80.50
88.50
90.50
0.00
0.00
.
Proposed Development Objective(s)
Improve road condition and traffic flows on selected corridors of Kabul city.
.
Components
Component Name
Cost (USD Millions)
Road infrastructure
68.94
Capacity Building
13.71
Project Management Support
7.85
.
Institutional Data
Sector Board
Transport
.
Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector
Sector
%
Transportation
Urban Transport
70
Public Administration,
Justice
Transportation
Law,
Adaptation
Mitigation
Co-benefits % Co-benefits %
and Public
administration- 20
Transportation
General
sector
transportation 8
Water, sanitation and flood protection General water, sanitation 2
and flood protection sector
Total
100
I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information
applicable to this project.
.
Themes
Theme (Maximum 5 and total % must equal 100)
Major theme
Theme
%
Urban development
Other urban development
90
Financial and private sector development Infrastructure services for private sector 10
development
Total
100
.
Compliance
Policy
Does the project depart from the CAS in content or in other significant respects?
Yes [ ]
No
[X]
Does the project require any waivers of Bank policies?
Yes [ ]
No
[X]
Have these been approved by Bank management?
Yes [ ]
No
[X]
Is approval for any policy waiver sought from the Board?
Yes [ ]
No
[X]
Does the project meet the Regional criteria for readiness for implementation?
Yes [ X ] No
.
[ ]
.
Safeguard Policies Triggered by the Project
Yes
Environmental Assessment OP/BP 4.01
X
No
Natural Habitats OP/BP 4.04
X
Forests OP/BP 4.36
X
Pest Management OP 4.09
X
Physical Cultural Resources OP/BP 4.11
X
Indigenous Peoples OP/BP 4.10
X
Involuntary Resettlement OP/BP 4.12
X
Safety of Dams OP/BP 4.37
X
Projects on International Waterways OP/BP 7.50
X
Projects in Disputed Areas OP/BP 7.60
X
.
Legal Covenants
Name
Recurrent
Due Date
KM reporting system of Monitoring X
Financial Report (MFR)
Frequency
Quarterly
Description of Covenant
From September 30, 2015, Monitoring Financial Report (MFR) be submitted from the Department of
Works & Maintenance to Kabul Municipality and IDA, every quarter.
Name
Recurrent
Minimum 30% of disbursed works by
Middle Term Review
Due Date
Frequency
30-Jun-2016
Description of Covenant
By the time of Middle Term Review (MTR), the disbursed works should reach minimum 30 percent of
total project fund agreed; and each component, including sub components, should finalize bidding process
and all relevant contracts should be ready to be signed.
Name
Recurrent
Due Date
Frequency
KM assign qualified civil servants to
work full time on Component B activities
30-Nov-2014
Description of Covenant
Kabul Municipality will assign qualified civil servant staff to work full time with KUTEI team on activities
in Component B, e.g. traffic management and safety, O&M system, design management of public transport
study and other studies.
.
Team Composition
Bank Staff
Name
Title
Specialization
Unit
Abdul Hameed Khalili
Operations Officer
Co-Team Lead
SASDT
Abdul Wali Ibrahimi
Operations Officer
Operations Officer
SASDU
Aimal Sherzad
Procurement Specialist
Procurement Specialist
SARPS
Akram Abd El-Aziz Senior
Financial Senior
Financial SARFM
Hussein El-Shorbagi
Management Specialist Management Specialist
Asif Ali
Senior
Specialist
Procurement Senior
Specialist
Asta Olesen
Senior
Social Senior Social Development SASDS
Development Specialist Specialist
Chau-Ching Shen
Senior Finance Officer
Senior Finance Officer
CTRLN
Deepali Tewari
Lead Urban Specialist
Lead Urban Specialist
SASDU
Haroon Rasheed
E T Temporary
Project Assistant
SASDO
Juan Carlos Alvarez
Senior Counsel
Senior Counsel
LEGES
Luquan Tian
Senior
Specialist
Transport Team Lead
Mohammad Yasin Noori Social
Development Social
Specialist
Specialist
Mohammed
Askerzoy
Procurement SARPS
Ajmal Operations Officer
SASDT
Development SASDS
Operations Officer
SASDT
Obaidullah Hidayat
Environmental Specialist Environmental Specialist
SASDI
Om Prakash Agarwal
Senior Urban Transport Senior Urban
Specialist
Specialist
Rakhi Basu
Transport Specialist
Transport Specialist
Shigeyuki Sakaki
Senior Transport. Spec.
Senior Transport Specialist SASDT
Zia Lerwany
Senior
Engineer
Transport TWITR
Municipal Municipal Engineer
SASDT
SASDU
Non-Bank Staff
Name
Title
Jie Yu
Associate Professor of
Traffic
Safety
and
Traffic Management
.
Office Phone
City
Jinan
Locations
Country
First
Administrative
Division
Location
Planned
Actual
Afghanistan
Kabul
Wilayat-e Kabul
X
X
Comments
I.
STRATEGIC CONTEXT
A. Country Context
1.
Despite significant economic and social progress over the last decade, Afghanistan faces
formidable medium to long term development challenges. An average of 9.4 percent annual
economic growth over 2003-2012 has been driven mainly by investments in reconstruction, aid
flows fueling the services sector, and periodic surges in agricultural production which helped
raise GDP per-capita from $186 in 2002 to $688 in 2012. However, per capita GDP is still the
lowest in Asia and amongst the lowest 20 countries of the world. Key social indicators have also
improved1. Poverty levels are high, with about 36 percent of the population below the national
poverty line and more than half of the population considered vulnerable2.
2.
A highly aid dependent country in conflict and with extremely fragile institutions,
Afghanistan is in the midst of a critical security and economic transition3. Aid in 2010-11 was
$15.7 billion, about the size of nominal GDP. Presidential elections are scheduled for April
20144, and the Government is assuming leadership for both security and development with a
transfer in leadership on both fronts from the international community by the end of 2014. Aid
levels are expected to fall as is growth in 2014, and future aid levels remain uncertain even if
there is a smooth political and security transition. Fiscal sustainability, job-creating growth,
human development and governance will remain dominant themes for the development agenda
over the short to medium term.
3. Afghanistan’s future development plans to stabilize the security situation, hinge on the
government’s ability to deliver services, improve living conditions and promote socio-economic
development, particularly in urban areas where the impacts of withdrawal are expected to be
acute. Construction and services are expected to be the most affected sectors should aid decline
after the transition. These sectors currently absorb 64 percent of the working population in urban
areas and 24 percent in rural areas5. The need to improve public service delivery, generate
employment and improve incomes, and most importantly, strengthen institutional capacities in
municipal governance is critical due to urban population growth. An influx of over 2 million
refugees over 2002-2013, 46 percent of which have returned to urban areas, conflict and drought
induced migration have been the drivers of urban population growth of 3.7 percent per annum.
36 percent of the refugees have settled in Kabul, Afghanistan’s capital city.
B. Situations of Urgent Need of Assistance or Capacity Constraints
4.
Less development has occurred in Kabul transportation facilities even though it is the
capital city of the country. Kabul is the largest city of Afghanistan with unprecedented
1
The percent of the population with access to improved water sources increased from 22 percent in 2000 to 50
percent in 2011, gross primary enrollment increased from 19 percent to 97 percent, maternal mortality almost
halved, and life expectancy increased from 55 years to 60 years over the same period.
2
Poverty Status in Afghanistan, World Bank, July 2010.
3
In 2013 Budget Expenditures were US$6.8 billion and domestic revenue income was US$2.5 billion, in addition to
the Government’s cash reserve of US$250m. On-budget donor support amounts to 59%.
4
The security situation has deteriorated significantly during the project preparation period as the election date has
drawn closer. A recent attack in Kabul claimed the life of the International Monetary Fund representative in
Afghanistan, along with four United Nations staff and 11 civilians on 17 January 2014.
5
Afghanistan in Transition: Looking Beyond 2014, World Bank, May 2012.
1
expansive urban growth. Kabul had a master plan for 25 years in 1978 for 800,000 people and
30,000 vehicles. Today the population is over 5 million with more than 600,000 vehicles. From
1992 to 2001, the war damaged and destroyed much of Kabul's transport facilities including
pavements, sidewalks, traffic circles, drainage systems, traffic signs and signals, trolleybuses and
almost all of the public transit buses (e.g. Millie bus). Of the 1500 km road network in Kabul,
only 20% is paved, 60% is damaged with only 50 km of main road and 100 km of secondary
road rehabilitation funded. In addition, a rapid increase in population and the number of motor
vehicles spurred the demand for transportation services. It is estimated that half of all drains are
not functional.
5.
The main challenge in Kabul is to reduce the huge backlog of infrastructure investment
and to improve basic municipal service delivery in terms of both quality and quantity, and
address the issue of the lack of long-term funds required for municipal investment. In order to
do this, Kabul Municipality (KM) requires strategic leadership and management to allow the
Municipality to play a crucial role in Afghanistan's development. With a dynamic Mayor who
seeks to transform KM and who has revamped HR, has taken a strong stand against impediments
to the functioning of KM that is provided by influential parties with vested interests, KM can
move towards a well-run, modern public organization.
6.
Efficient service delivery by the Municipality is yet to improve to cope with the urban
transport challenges. There has been a sustained improvement in KM's capacity through several
donor funded projects targeting capacity building such as the USAID-funded Kabul City
Initiative project - a $120 million, three-year program to build municipal capacity, improve
service delivery and infrastructure, and increase municipal revenue. In addition, the Bank's long
term (since 2005) engagement with KM through KURP, KMDP, KURIP (2007 - 2011), has
steadily built capacity in key units within KM. However, the capacity improvement has not kept
pace with the rapid physical expansion of the city and service delivery needs of its people.
Currently, KM has about 5000 employees in total; of which 1200 work directly on transport
infrastructure. Despite this large workforce, only 20 km of road rehabilitation services can be
delivered annually, of which 8 to 10 kms are delivered through KM’s in-house capacity, the
balance being provided by the private sector.
7.
KM is faced with multiple challenges. In the urban transport sector, key challenges are: (i)
Weak planning for investments: Investment decisions give little importance to economic
priorities - required planning tools and database for making sound investment decisions are
lacking; (ii) Outdated road engineering practices and business procedures leading to overall low
value for money of the investments and less efficient service delivery; (iii) Limited capacity of
agency staff including their limited exposure to international urban transport industry practices,
(iv) the absence of effective in-service training of KM staff. Additionally KM faces significant
resource constraints in delivering services to a large and growing population in unplanned
informal settlements.
8.
Support under this project and the proposed Kabul Municipal Development Program are
deliberately conceived and being processed concurrently to upgrade Kabul simultaneously
across sectors. This rationale draws on the Bank’s support for municipal development in more
than twenty countries over the last three decades. Experience highlights that integrated
2
development in large cities brings about larger benefits than cumulative benefits from individual
project from each related sector.
C. Sectorial and Institutional Context
9. Unprecedented population growth in Kabul, large-scale destruction of the city’s
infrastructure during the war, followed by a growing concentration of security related activity
has exacerbated the backlog of infrastructure deficiency in a city that harbors the capital
functions of the country. A city originally planned for less than one million people, is now
ranked 86th among the world’s largest agglomerations6. The capacity of the existing road
network is diminished further by an astronomical growth in the number of motor vehicles that is
today double the 300,000 vehicles the network was designed for. The result is extreme
congestion which is further exacerbated by security related encroachments and road closures.
10. Urban productivity of Kabul is deeply impacted by inadequate transport services.
Although Kabul’s existing urban road network7, initially planned and developed in 1960s with
technical support from the Former Soviet Union, provides generous widths, road surfaces have
deteriorated due to age, poor maintenance, severe weather conditions, and the lack of proper
drainage. 55 percent of the network is in need for dire rehabilitation. More than 61 percent of the
urban population accesses their homes through unpaved roads. Kabul Municipality’s low inhouse construction capacity, dilapidated machinery and lack of competent private contractors
have resulted in the delivery of only 15 – 20 km of rehabilitated roads each year. The result is
poor access to jobs and services, low mobility of passenger and freight movement, congestion,
increased road accident rates, and productivity losses.
11. Improving the transport efficiency of the road network is a priority that requires
resources and capacity, and needs to be accompanied by complementary measures of traffic
management and public transport services. In an extremely resource constrained environment,
KM currently allocates most of its budget to improve road conditions with insufficient focus on
the sustainability of the rehabilitated roads. Critical infrastructure investments to improve traffic
management and public transport services are grossly inadequate. . Within KM there is a need to
enhance the capacity for investment planning with necessary planning tools and databases to
enable informed decision making. There is also a need to update road engineering practices and
business procedures that can lead to KM eliciting higher value for money. For this KM staff
require exposure to international urban transport industry practices.
12. Improving traffic management and public transport services that have a debilitating
impact on Kabul’s urban productivity, require collaboration and the assumption of collective
responsibility across institutions. Such collaboration will be essential to develop and implement
immediate, short term, and medium term interventions along with sustained donor support. There
are four government entities that have responsibility for transport services in the city: (i) Ministry
of Public Works (MPW), responsible for about 40 km of strategic highways inside the city; (ii)
Ministry of Transport and Civil Aviation (MOTCA), in charge of transport policies and
administers public transport services; (iii) Ministry of Interior (MOI), responsible for traffic
6
World Development Prospects, 2009
Urban roads in Kabul are categorized as Primary Arterial, District Arterial, Secondary roads and Community and
Access roads.
7
3
management through its traffic department; and (iv) KM, responsible for planning, design,
construction and maintenance of all urban transport facilities including roads and parking. The
limited institutional coordination between these entities has resulted in fragmented urban
transport policies with traffic management and public transport virtually unaddressed.
D. Higher Level Objectives to which the Project Contributes
13. The World Bank’s Interim Strategy Note (ISN) for the Islamic Republic of Afghanistan
(IRoA) is grounded in helping the government with the transition in 2014 and beyond. The
project is consistent with all three pillars of the ISN for 2012-2014: (i) building legitimacy of
institutions: the project will build KM’s legitimacy in the eyes of the residents by expanding and
improving the road network and its efficiency which will in turn improve the city urban
productivity.; (ii) providing equitable service delivery: by bringing about network wide
improvements that are important for mobility, the project will improve services for rich and poor
alike as a reduction in travel time and cost will accrue to all citizens; (iii) inclusive growth and
jobs: mobility improvements will enable improved access to jobs and social services and create a
more inclusive city. Additionally, the project is initiating an approach that creates incentives for
KM to integrate the concerns of foot print expansion, growing congestion, increasing number of
vehicles and pollution by developing an integrated and multi-pronged approach that cuts across
roads, public transport services, and traffic management. Furthermore, given Kabul’s
preeminence in and to Afghanistan’s economy, it is critical that Kabul has functioning
management, systems and infrastructure to deliver services to its residents. The Bank’s approach,
through the two complementary projects, is to continue to support the realization of this.
II.
PROJECT DEVELOPMENT OBJECTIVE(S)
A. PDO
14. The Project Development Objective (PDO) is to improve road conditions and traffic flows
in selected corridors of Kabul City.
B. Project Beneficiaries
15. The general users of roads and transport in Kabul city will be the main beneficiaries of the
project. Kabul City's over four million residents will be the direct beneficiaries of the project,
particularly the residents living within 500 meters along the four selected corridors. Institutions
that will benefit from the project are KM, the traffic police and the public transport provider
called Millie Bus.
C. PDO Level Results Indicators
16. Progress towards the achievement of the PDO will be measured through the following
indicators:
(a) Traffic capacity improvements will be measured by average vehicle speed during off peak
hours.
(b) People (within a 500 meter range under the project) in urban areas provided with access to
all season roads.
(c) Percentage of Kabul city’s trunk road network in at least “fair” condition.
4
17. Intermediate output indicators underpin the achievement of these project outcome
indicators, along with their baseline values and targets. These are listed in Annex 1.
III. PROJECT DESCRIPTION
A. Project Components
The proposed project will have three components.
18. Component A: Road infrastructure ($68.94 million): This component will finance the
improvements of select segments of roads in four priority corridors. It will include the
rehabilitation of road surfaces, pedestrian walkways, installation of street lights, implementation
of road safety and traffic control measures (e.g. junction channelization, signalization, etc.) and
rehabilitation of roadside drains.
19. Component B: Capacity Building ($13.71 million): This component will provide
Technical Assistance for the following subcomponents:(i) Priority interventions for city center
accessibility, including detailed designs for interventions such as fly overs, junction
channelization, signalization for alleviating congestion at the city center; (ii) Public transport
studies, including feasibility studies for potential high capacity public transport corridors; (iii)
Traffic management and road safety capacity building targeted at KM’s design department to
improve their capacity for traffic engineering; (iv) O&M productivity increase through the
procurement of road maintenance equipment, training for KM’s O&M department technical
staff, and establishing a financial management and supervision mechanism to improve the
efficiency of O&M; and (v) other relevant studies.
20. Component C: Project Management Support ($7.85 million): This component will
finance (i) Consultancy services for design review and site supervision; (ii) Consultancy services
to enhance KM’s human resource capacity for KUTEI project management and implementation,
and the provision for on-the-job training; (iii) Knowledge sharing through seminars, workshops
and studies; and (iv) Incremental operating costs for project management.
B. Project Financing
21.
The lending instrument for the project is Investment Project Financing (IPF).
Project Cost and Financing
22.
The table below provides an overview of the project costs and financing arrangements.
Table 1: Project by Components (US$ million)
Project Components
ARTF
Financing
Item
Description
A
Road Infrastructure
B
Capacity Building
C
Project Management Support
Total Project Cost
$68.94
$13.71
$7.85
$ 90.50
5
%
76 %
15 %
9%
100 %
Remark
C. Lessons Learned and Reflected in the Project Design
23. Key lessons from operations in volatile environments that have been integrated into the
project’s design include: (i) Keeping the project simple with a limited number of focused
components that minimize demands on weak and under-staffed institutions; (ii) Ensuring a
project management unit with competent staff is in place as early as possible. (iii) Contract
packaging that mitigates against the risk of overreliance on a single contractor; (iv) Solving the
drainage problem as a prerequisite to road rehabilitation - unless the city-wide drainage problem
is addressed soon, the durability of the pavements will be undermined; (v) Locating the core
Bank team in country and undertaking implementation support missions at a higher frequency
than the Bank norm; and (viii) Being flexible and keeping expectations modest.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
24. KM will be responsible for implementation of the project, including procurement and
financial management. A fiduciary assessment of KM highlighted a lack of capacity to manage
the project. Both Kabul Municipal Development Program (KMDP) and the Kabul Urban
Transport Efficiency Improvement (KUTEI) projects will be implemented concurrently as a joint
integrated development program for KM implemented by the Mayor’s office to ensure
coordination across KM’s departments and central line ministries and utilities as needed. Under
the Mayor, engineering functions will be performed by two teams, each headed by the Project
Team Leader. Common fiduciary functions - procurement, financial management, and social and
environmental safeguards will be discharged by a team common to both projects. Each Team
Leader will be responsible for design, procurement, implementation, supervision, and project
management including financial management, and reporting on progress. Both projects will,
however, maintain separate project accounts as outlined in the Financial Management Manual
for projects under Kabul Municipality that was reviewed and cleared by IDA in May 2013.
25. Cross sector coordination mechanism has been established at both “Strategic” and
“Technical” levels, namely “Strategic Level Committee” and “Technical Level Committee” to
deal with the multi-agency coordination issues in urban transport sector. The first “Strategic
Level Committee”, headed by the Mayor of Kabul and comprising of ministers or deputy
ministers from various stakeholder ministries and other Government agencies, e.g. MOTCA,
MOI, will provide strategic direction to the project and ensure effective coordination among the
government agencies. A second “Technical Level Committee”, led by the Deputy Mayor
(Technical) of Kabul and comprising of members of the project manager and the directors of
Millie Bus, the Traffic Police, Kabul District offices etc., is responsible for the technical
coordination among the different public institutions on daily technical issues, and for the
coordination of the works of consultants and contractors. The Technical Deputy Mayor of Kabul
is a member of both Strategic and Technical Level Committees to ensure the implementation of
strategic decisions at the project level.
B. Results Monitoring and Evaluation
26. The Results Framework (Annex 1) will be used to monitor and evaluate (M&E) the
achievement of the PDO and the output indicators. Surveys managed by KUTEI will be
undertaken to collect data for the project’s M&E system. Costs for data collection are included in
6
Component C. Periodic Physical and Financial Progress Monitoring reports will be provided to
IDA and KM on a monthly, quarterly and annual basis in formats agreed with IDA. Periodic
reports will include social and environmental monitoring reports that will inform on disclosure
dates of site specific Environmental and Social Impact Assessments (ESIAs), community
consultations and training on ESIAs including descriptions of the process for the preparing civil
works packages, grievance reports including any grievances regarding land acquisition and
compensation issues.
C. Sustainability
27. Sustainability of service delivery from KM’s road assets depends on adequate finance,
appropriate equipment, and in-house management capacity for systematic and routine
maintenance of the road network. Management of the network requires (i) support for
institutional and human resource development; (ii) introduction of asset management and
maintenance practices; and (iii) initiating a culture of data driven policy-making, modernization
of engineering practices and business procedures in KM. Currently there are deficiencies on all
fronts. Improving KM’s revenues and financial management practices will take time and is being
addressed under the KMDP. Enhancing in-house capacity of KM’s Department of Roads is an
integral element of this project. Given current human resource capacity constraints, external
consultants have been recruited and will be retained as part of the KUTEI Team responsible for
implementation. Embedded in this team, however, are KM’s civil servants whose capacity will
gradually be built through the transfer of knowledge that would enable them to assume increased
responsibility for management of the road network of Kabul. Asset management requires the
routine and systematic collection and analysis of data to inform budgeting and construction. A
system for data collection is to be introduced by KUTEI. Data collected will be shared with
KM’s Works and maintenance Department for action.
28. Sustainability of urban transport services requires a significant degree of commitment to
public transport service improvements across multiple agencies, as comprehensive and integrated
solutions are needed across traffic management, traffic engineering, planning for future high
capacity public transport systems, and eventually laying the building blocks for a modern urban
transport system in Kabul. KM has taken the lead in convening the relevant stakeholders,
initiating dialogue, and establishing an institutional architecture for coordination through the
creation of two steering committees to provide leadership and technical guidance to the project8.
8
The city master plan is being updated with the help of JICA which will serve as a blueprint for infrastructure
development.
7
V.
KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Risk Category
Stakeholder Risk
Operating Environment Risk
- Country
- Sector and Multi-Sector
Implementing Agency Risk
- Capacity
- Governance
Project Risk
- Design
- Social and Environmental
- Program and Donor
- Delivery Monitoring and Sustainability
Overall Implementation Risk
Rating
S
H
S
H
M
M
L
L
S
S
B. Overall Risk Rating Explanation
29. The overall risk is rated as “Substantial”. The overall security situation in Afghanistan
makes any operation in the country highly risky due to political and economic uncertainties as
well as difficulties in project implementation and supervision. Deterioration in the security
situation exacerbates risks, especially given the dependence of the construction industry on
imports. Specific sector related risks are mostly due to planning, budgeting, and execution in KM
where there is an absence of asset management practices for the road network9. Risks also arise
from the prevalent market conditions in Afghanistan – limited contracting capacity for high
value contracts, poor construction quality, price volatility when there are construction delays due
to the security situation, etc. Project preparation progress has been satisfactory because of the
quality of staff in KM’s KUTEI Team and the Mayor’s personal commitment to improving
KM’s road network and establishing a foundation for urban transport services. Governance risks
are being addressed on a countrywide basis and will also be followed in this project. Despite the
uncertainties associated with operating in Afghanistan, the overall risk is rated “Substantial”
because of the experienced staff managing the project.
VI. APPRAISAL SUMMARY
A. Economic Analysis
30. Economic analysis was performed using the Highway Development and Management
Model (HDM-4), a globally accepted economic evaluation model developed by the World Bank.
It assesses total annual costs of road construction, maintenance, vehicle operation, travel time,
and traffic accident over the life of a project. Due to the limited availability of data, model
parameters were simplified where applicable.
9
An Institutional assessment of KM highlighted an absence of an O&M culture, lack of technical skills and
insufficient equipment for maintenance of the road network.
8
31. Economic analysis results demonstrate that the rehabilitation on selected road sections is
economically justifiable. Project benefits were calculated for sample road sections from each of
the four corridors identified in the project and then aggregated to obtain the Economic Internal
Rate of Return (EIRR). Major project benefit of the project is the reduction of vehicle operating
cost achieved by the rehabilitation of the deteriorated road pavement. The analysis indicates that
the project is economically viable with EIRR of 41.0% for the whole project, and 58.2% if only
the cost for Component -A (Road Infrastructure) is considered. Sensitivity analyses were also
carried out with Scenarios (1) Base case, (2) Traffic growth rate reduced by 30%, (3) Capital cost
increased by 30%, and (4) Cases 2 and 3 combined. The viability of the project was confirmed
with EIRR for the whole project at 31.3% even in the worst case, Case (4).
Cases
Corridor 1
Corridor 2
Sample Road Sections Corridor 3
Corridor 4
Combined
Against Whole Project Cost
(1)
(2)
Base
Traffic
30%
122.8%
59.1%
44.9%
28.0%
58.2%
41.0%
119.2%
56.6%
42.6%
25.9%
55.8%
38.9%
growth
-
(3)
(4)
Capital Cost +30%
Case 2 & 3
96.1%
47.7%
36.5%
22.7%
46.7%
33.2%
93.0%
45.3%
34.4%
20.8%
44.5%
31.3%
B. Technical
32. Engineering. The infrastructures financed by KUTEI and KMDP will partly reduce the huge
backlog of infrastructure and expand access to basic services. The studies financed by both
projects will enable the preparation of future infrastructure support. KMDP’s study for redesign
of KM’s FM systems will prepare KM for future sequenced actions for institutional for revenue
management, accounting, and management development in KM. Implementation of these
reforms will be critical for the sustainability of all infrastructure under KM’s ownership. KUTEI
will finance corridors that strategically divert traffic and enable connection. Corridors 1 & 2 will
enable the diversion of traffic strategically away from the central area; while Corridors 3 and 4
from the central area to Northwest and Southeast part of the city respectively, will be upgraded
to “all-weather” conditions. These corridors are 32 km primary roads designed under the closed
Kabul Urban Road Improvement Project (KURIP) and select key junctions that along these four
corridors. Other infrastructure in the right of way for traffic management and safety, public
transport services, pipe works for utilities, etc. are included in the road contracts. Engineering for
KUTEI investments has been undertaken by international consultants under KURIP. NCB
contracts are being reviewed in-house by KM. ICB contracts are to be reviewed by an
international consultant and construction of both ICB and NCB contracts will be supervised by
the international consultant to ensure quality.
33. Design Alternative Analysis. To improve the project roads up to “all season” level, road side
drainage improvements have been included in the road rehabilitations. Specifically, alternatives
have been considered for road side drainage improvement in District 4 which is strategic in its
location in the middle of the city. Acute loggings during rainy season adversely impact the road
9
function and therefore transport connectivity. Two improvement options were considered: (i)
Base Option: to raise up the subgrade about 0.5 to 1.0 meters, just above the flood level; (ii)
Comprehensive Option: while adjusting subgrade profile, to build 2 -3 pumping stations to speed
up flow in “flat” (no natural slope) section, to set up mini water treatment facilities at proper
locations to improve ditch water quality, and to construct balancing ponds to retain floor water in
the rainy season along the roadside or municipality land. Due to limited information, further
evaluation of both options is to be done by the international consultant being recruited for design
review and supervision. The evaluation will include engineering assessments and ESIA.
34. Enhancing Maintenance: A major focus of the project is to ensure that KM is able to
maintain at least 30 km of roads per year as compared to the current 8-10 km per year. The
project will finance essential equipment and machines, technical training for the department
engineers, and support establishment of an asset management system for roads.
35. Integrated transport service improvement: Another area of focus of KUTEI is establishing a
strong foundation for future transport service improvements – this includes road network
improvements, traffic management, and public transport services. The project will build capacity
of KM in traffic safety and management, public transport, and O&M of road services. Immediate
interventions in the city center will ease traffic grid locks, and studies financed will inform on
feasible options for medium and long term interventions for transport service improvements. It is
expected that many of these integrated options would be recommended for implementation as
soon as possible so that project benefits can be sustained.
36. Institutional: To minimize redundancies and maximize efficiencies of existing staff and
facilities, institutional capacity within KM for the management of contracts for works as well as
for planning, policy making and developing in-house capacity is to be built. Institutional capacity
building is to focus on (a) modern management practices, (b) skill development of staff through
knowledge transfer, (c) better equipped laboratories and offices, (d) enhanced in-house capacity
for construction including, (e) enhanced procurement capacity, and (f) improved land acquisition
processes.
C. Financial Management
37. Retroactive financing of up to US$15 million is agreed for project-related expenditures
related to start-up activities during the period prior to signing of the Grant Agreement.
Retroactive financing can be disbursed only after the project grant becomes effective. The cut-off
date for the retroactive financing is the project effectiveness date.
38. The results of the FM assessment of KM revealed a lack of sufficient capacity within its
finance department to carry out the FM functions for the project in a satisfactory manner. The
staff do not have the required experience and qualifications to handle the project FM functions
independently. KM’s financial management systems will require substantial support over time to
build adequate capacity for managing a Bank-supported project. To mitigate against the risk
posed by this limited capacity, KM has in place a team of professionals that includes FM staff
who will carry out the FM functions for the project. The team is staffed with adequately
qualified personnel, well experienced with the implementation of IDA supported projects. With
10
this mitigation measure in place, and the centralized arrangements for accounting and audit, the
FM arrangements for the project are acceptable to IDA.
D. Procurement
39. The results of the procurement risk assessment of the implementing agency, KM, revealed a
lack of a clear system of accountability with clearly defined responsibilities and delegation of
authority on who has control over procurement decisions. There exist no internal manuals that
provide clarity on procurement processes. There is no discloser policy (Debriefing, Award
Decision and Right to Information), nor any mechanism for receiving and handling complaints.
Additionally, the KM does not have adequate, qualified and experienced staff for managing
procurement.
40. In the absence of adequate capacity in KM to manage procurement activities effectively, KM
has established a team of professionals who will be responsible for procurement under this
project. KUTEI has prepared an implementation manual that includes a section on procurement,
and a system of accountability for procurement decisions. A procurement plan for six years
prepared and agreed with IDA, provides the basis for the procurement methods and is available
at the KUTEI office.
 Works contracts valued at US$8.5m are already under implementation.
 Consultancy services valued at US$ 5.0m has already been committed.
E. Social (including Safeguards)
41. The OP 4.12 (Involuntary Resettlement) is triggered in view of possible land acquisition.
As the specific physical works of the drainage canal along corridor-4 and detailed design for Lot5 (W14-Karta-e-Naw road) are not known at this stage, an Environmental and Social
Management Framework (ESMF) has be prepared. The ESMF spells out the requirements for the
preparation of a Social Impact Assessment (SIA) and preparation of RAP in case of specific
works where land acquisition is unavoidable. The ESMF includes a Resettlement Policy
Framework (RPF) that would be applied for the preparation of site specific Land Acquisition
Plan (RAP) where land acquisition and/or resettlement are involved. The RPF defines the land
acquisition principles and procedures to be followed, eligibility criteria for different categories of
project affected peoples, consultation and compensation procedures, and requirements for
preparation of sub-project specific RAPs in accordance with the Afghan legal framework for
land acquisition and OP 4.12. The aforementioned RPF prepared by KM for KUTEI will be
applicable to KMDP. The ESMF and RPF have been finalized and disclosed at the Bank’s
Infoshop on December 1, 2013.
42. It is expected that the Project will have significant positive social impacts for beneficiary
communities. The urban communities would benefit from provision and improvement of urban
transport infrastructure and services under this project, through road construction, public
transport improvements, enhancement of traffic safety and management, and institutional
capacity building of the municipal transport system.
11
F. Environment (including Safeguards)
43. The project has been assigned Environmental Category B. The ESMF will guide
preparation of site specific Environment management Plans (EMPs). At the preliminary design
stage Environmental Impact Assessments (EIAs) will also be carried out to identify any potential
negative impact for selected subprojects. An EIA/SIA will be conducted for the Karta-e-Naw
road where road realignment is involved, and for drainage water treatment facilities in Districts 4
and 15. For the subproject being financed from retroactive financing, an EMP was developed and
cleared by the Bank’s Regional Safeguards Advisor (RSA), and disclosed in-country in the local
media, and through the Bank’s InfoShop.
44. Improved infrastructure services are expected to positively impact the welfare of the
residents of Kabul. These impacts include improved road conditions, reduced traffic congestion,
improved drainage system, and collection and treatment of wastewater, and better sanitation
conditions. Temporary and localized negative impacts during the construction phase of
subprojects are expected to be reversible and manageable and will be limited to the specific
construction sites. These impacts will be addressed through proper design, site and construction
management and proper implementation of site-specific individual EMPs that will be part of the
bidding documents.
12
Annex 1: Result Framework and Monitoring
.
Country: Afghanistan
Project Name: Kabul Urban Transport Efficiency Improvement Project (P131864)
.
Results Framework
.
Project Development Objectives
.
PDO Statement
Improve road condition and traffic flows on selected corridors of Kabul city.
These results are at
Project Level
.
Project Development Objective Indicators
Data
Source/
Cumulative Target Values
Indicator Name Core
Unit
Measure
Average vehicle
speed on the
selected
corridors during
off-peak hours.
Kilometers
Number
of
people in urban
areas provided
with access to
all-season roads
within a 500
meter
range
Number
of
Responsibility
for
End
Target
Frequency
0.00
0.00
before and Traffic
after project survey
the client
0.00
before and
traffic
5000.00 after
the
survey
project
the client
Baseline
YR1
YR2
YR3
13
YR4
Methodolog Data Collection
y
under
project
the
“Fair”
and
above surface
condition
of
major
urban
road
network
improved
before and road
after
the condition
project
survey
Percentage
the client
.
Intermediate Results Indicators
Data
Source/
Cumulative Target Values
Indicator Name Core
Unit
Measure
of
All
O&M
equipment
purchased,
installed
and
KM
staffs
trained and a
capable
to
operate
and
maintain
the
equipment
Yes/No
Roads
rehabilitated,
Non-rural
Kilometers
Road
rehabilitated by
KM Dept of
Works
and
Maintenance
Kilometers
Sub-Type
12.00
Supplemental
Responsibility
for
End
Target
Frequency
Methodolog Data Collection
y
No
Yes
yearly
KUTEI
5.00
20.00
Once a year
Baseline
YR1
YR2
YR3
YR4
36.00
14
yearly
client
the client
Statistics
from
Department the client
of Planning
and policy
Junction
channelization
along 4 selected
corridors
Number
0.00
4.00
Every
years
High
volume
public transport
feasibility study
and
business
plan
finalized
and ready for
implementation
Yes/No
No
Yes
once
.
15
From KM
Department
of planning
and
implementa
tion.
2 Facilities
client
include
pedestrian
bridge,
pedestrian
guide rail,
junctions
improved.
from
client
the
client
Annex 1: Results Framework and Monitoring
.
Country: Afghanistan
Project Name: Kabul Urban Transport Efficiency Improvement Project (P131864)
.
Results Framework
.
Project Development Objective Indicators
Indicator Name
Description (indicator definition etc.)
Average vehicle speed on the selected corridors in the 7:00 - 9:00 a.m. peak time, 15:30 - 17:30 p.m. peak time, any other time periods are
off-peak time.
off-peak.
Number of people in urban areas provided with access to All-season road is defined as a road that is motorable all year by the prevailing means
all-season roads within a 500 meter range under the of transport (e.g. a car, fire truck or ambulance which may not have four-wheel-drive).
project
Predictable interruptions of short duration during inclement weather (e.g. heavy
rainfall) are acceptable, particularly on low volume roads. Road access in slums often
does not exist and presents additional risks to residents in the case of emergencies as
ambulances or fire trucks cannot enter. It also reduces ability for home based income
generating activity as it is difficult to bring goods and supplies in and out without road
access. Guidance on people with access: The data on the number of people provided
with access will come from estimates by TTLs, and can be measured by assessing the
kilometers of roads constructed or rehabilitated, and estimates of the population in the
project area within a 500 meter range that will access these roads (based on population
density estimates). 500 meters is roughly equivalent to 5-10 minutes walking time. It is
expected that the baseline value for this indicator will be zero.
“Fair” and above surface condition of major urban road “Good”, “Fair” and “Bad” are the standard rates of the country road asset
network improved
management. “Fair” means an acceptable level of service for road users.
.
Intermediate Results Indicators
Indicator Name
Description (indicator definition etc.)
All O&M equipment purchased, installed and KM staffs Before procuring O&M equipment, there is a need for KM to set up a Designated
are capable to operate and maintain the equipment
Account for Department of Works and Maintenance.
Roads rehabilitated, Non-rural
Kilometers of all non-rural roads reopened to motorized traffic, rehabilitated, or
16
upgraded under the project. Non-rural roads are roads functionally classified in various
countries as Trunk or Primary, Secondary or Link roads, or sometimes Tertiary roads.
Typically, non-rural roads connect urban centers/towns/settlements of more than 5,000
inhabitants to each other or to higher classes of road, market towns and urban centers.
Urban roads are included in non-rural roads.
Road rehabilitated by KM Department of Works and Road rehabilitated by KM Department of works and maintenance is to measure the
Maintenance
capacity of the Dept.
Junction channelization along 4 selected corridors
junction improvement and traffic safety facility, e.g. over bridge, pedestrian guide rail,
etc. independently studied, designed and implemented by KM.
High volume public transport feasibility study and Potential Public Transport Lines are studied and ready for stakeholder consultation.
business plan finalized and ready for implementation
17
Annex 2: Detailed Project Description
AFGHANISTAN: Kabul Urban Transport Efficiency Improvement (P131864)
45. Support to Kabul Municipality is designed to reduce the huge backlog of infrastructure
investment and improve basic municipal service delivery. This is being done through two
projects concurrently processed to upgrade Kabul across sectors, KMDP and KUTEI. KUTEI
focusses on recovery of Level of Service (LOS) on urban roads, through road rehabilitation on
selected corridors.
46. KUTEI targets transport services improvement through a package of interrelated
interventions. These aim to build KM’s capacity in the following areas: (i) maintenance of the
newly rehabilitated network, (ii) traffic management and safety improvements, (iii)
improvements in transport efficiency through prioritization of public transport, and (iv) improved
accessibility of the city center. Investments in key road infrastructure will improve connectivity
and make Kabul more inclusive, while technical and knowledge support will gradually transform
KM into a modern planning and implementing agency by adopting best international practice.
47. The proposed project includes the following three components. Table 2 below shows the
estimated cost of each component:
(a) Road infrastructure
(b) Capacity building
(c) Project management support
Table 2: Detailed project costs
KTUEI Project Components and Detailed Costs
Cost (US$)
%
Component A: Road Infrastructure
1
2
Rehabilitation of road surfaces including pedestrian walkways, roadside drains, street lights
Road safety & traffic control measures (Junction Channelization, signalization, etc.)
68,540,000
400,000
75.7
0.4
68,940,000
76 %
5,000,000
3,710,000
1,000,000
3,000,000
1,000,000
5.5
4.1
1.1
3.3
1.1
13,710,000
15 %
4,600,000
2,100,000
450,000
700,000
5.1
2.3
0.5
0.8
Total
7,850,000
9%
Grand Total
90,500,000
100 %
Total
Component B: Capacity Building
1
2
3
4
5
TA for priority interventions for city center accessibility, including detailed designs
Public Transport Feasibility studies for two potential corridors
Traffic management and road safety capacity building for the KM design department
O&M Productivity, including procurement of road maintenance equipment and training
Other relevant studies and designs
Total
Component C: Project Management Support:
1
2
3
4
Consultancy services for Design Review and Site Supervision
Consultancy services to enhance KM's HR capacity for project management & implementation
Knowledge sharing through seminars, workshops and studies
Incremental Operating Cost of Project Management
18
Component A: Road infrastructure
48. This component will finance civil works in four corridors which include primary roads
inherited from the former Kabul Urban Road Improvement Project (KURIP), and some key
junction improvement works along these corridors. Corridors 1 & 2 will divert the strategic
traffic from the central area; while Corridors 3 and 4 will upgrade the road infrastructure to “allweather” condition from the central area to Northwest and Southeast parts of the city. Civil
works to be financed include road pavement rehabilitation, sidewalk improvement, traffic
management and safety engineering interventions, public transport facilities and drainage
facilities to ensure the overall LOS improvement of road infrastructure to “all-weather” level.
The selected corridors (see also Figures in Annex 8 for more information) are:
(d) Corridor 1: Khair Khana - Kabul Polytech University - Old Palace, including
pavement overlay traffic management of Silo Road and several other adjacent roads;
(e) Corridor 2: Khair Khana - Airport - Macrorayan - Jalalabad Road, including 3 or
4 links in Macrorayan area, between Airport Road to Jalalabad Road;
(f) Corridor 3: Kabul Nandare – Southeast of the city, including secondary roads in
Kabul Nandare Area and Kart-e-naw Road, and
(g) Corridor 4: Khair Khana - Shar e Naw, which will connect the KURIP roads to
Khair Khana Area in District 4.
49. A key focus of the road rehabilitation work would be the restoration of roadside storm drains.
Some sections of storm drains form a part of the city’s drainage network. While the drainage
planning will be undertaken by the urban project, KMDP, KUTEI will undertake critical
drainage investments alongside some road sections. District 4, where Corridor 4 is located, is a
low lying area. The area is flooded in the wet season by water runoff from higher areas and the
current drainage system is ineffective due to low hydraulic gradient and very high underground
water table. The water, highly contaminated by sewage from surrounding residences, stagnates in
the Wazir Abad Canal and road side drains for months, posing a significant health hazard for the
general public.
50. The primary roads that form part of the project roads are in very poor condition due to over
flooding and weakening of the base, sub-base and subgrade layers because of saturation. It is
believed that rehabilitating these roads without addressing the seasonal flooding would not be
sustainable since road conditions would deteriorate immediately following the next wet season.
51. To address the flooding problem two engineering options, namely Base and Comprehensive
Options, will be considered. The Base Option is just to raise up the road bed above the flood
level and rehabilitate the road pavement; while the Comprehensive Option includes the following
works
 Restoration of the original cross section of drains;
 Construction of 2 -3 pumping stations to speed up flow in “flat” section;
 Construction of 2 -3 mini water treatment facilities at proper locations at road side
ditch; and
 Construction of balancing ponds on municipal land to retain flood water during the
raining season.
19
52. Traffic management and traffic safety measures: With the help of international experts, KM
will implement traffic engineering measures, including junction channelization, signals,
pedestrian crossing facilities, etc. along the four selected corridors.
Component B: Capacity Improvement
53. This component aims to increase the overall capacity of KM to provide improved delivery of
transport services. The component will finance the following carefully selected areas after a
thorough institutional assessment of transport service delivery of KM.
Sub Component 1: Priority interventions for city center accessibility
54. Intervention to address city center accessibility: An immediate practical solution to tackle
traffic gridlocks and accessibility difficulties at city center will be developed based on the
principle of ‘accessible for all’. These would be engineering solutions like junction
channelization and traffic signal improvements in the city center. However, the city center area,
ranging from Shahr-e-Naw in the west to Old Kabul in the east, is the major employment area of
the country, home to densely concentrated shops, business and government offices. Consistent
traffic gridlocks and increased accessibility difficulties for jobs heavily impact the economic
development. Besides the short term traffic engineering improvements, a series of studies will be
financed to develop an integrated solution that combines road infrastructure, traffic management
and public transport interventions. These are:
(h) Feasibility study of flyovers to divert private car flows and release road space to
public transport and pedestrians;
(i) Route rationalization of potential public transport service lines;
(j) Feasibility study of public transport infrastructure, e.g. bus lanes;
(k) Studies for parking and access management
55. Such integrated interventions are always time bound. If the interventions are found feasible,
an immediate decision should be taken to implement these solutions, or the solution will be more
expensive in the later years and may be economically or politically unfeasible. Such decisions
should be taken by the Steering Group, and there is a need to strengthen the Steering Group
enabling them to provide critical leadership and direction. On the technical side, these solutions
need to be implemented and managed by KM.
Sub Component 2: Public transport studies
56. With the completion of rehabilitation of the above corridors, restoring public transport
service along the Northwest to Southeast (Corridors 3 and 4 in Component A) and the NorthSouth corridors of the city becomes an urgent task. Given the large volume of passengers along
these corridors, a feasibility study of high capacity public transport services along the two public
transport service corridors (See Figure A8-3 in Annex 8) will be carried out. The output of the
study will equip the decision makers to plan the necessary improvements in transport service in
preparation for a high capacity public transport system.
Sub Component 3: Traffic management and traffic safety capacity building
20
57. The sub component aims to build up the traffic engineering capacity in KM’s design
department. It will enable KM to hire one or two experienced international traffic consultants to
guide the KM designers on their designs and implement the designs. Moreover, essential design
equipment e.g. temporary signals, software like signal design software, will also be financed.
Sub Component 4: O&M productivity
58. Operation and maintenance is identified as one of the major challenges. It is imperative to
ensure that adequate road maintenance is provided once the rehabilitation of the roads is
completed. To achieve this, the capacity of KM’s Operation and Maintenance Department should
be strengthened both in terms of management and in physical implementation capacity. The aim
of the O&M sub component is to improve technical skills and knowledge of the Department on
asset and construction management, finance essential machines and equipment to improve O&M
productivity, and establish appropriate FM arrangements for KM to monitor the Department’s
performance. Specifically, the subcomponent will support the following:
(a) Equipment: Currently, KM’s O&M Department has a capacity to undertake the
overlay/surfacing of 8-10 km road per year. The main constraint limiting the ability of the
Department is low capacity in production asphalt hot mix. In addition, the Department
lacks the equipment required to undertake road routine maintenance activities such as
asphalt cutters, asphalt kettles and mini batch plants, compactors etc. Thus, there is a
need to improve the capabilities of the Department by making available adequate
equipment to undertake 25-30 km road asphalt surfacing per year and to have the
equipment required for routine road maintenance. The project will finance an asphalt
batch plant, paver, and routine maintenance equipment for the department.
(b) Training: The capacity of the Department in planning and implementation of
maintenance and rehabilitation works is quite limited. The project aims to improve this
capacity through expert advice and support of an international specialist. An “O&M
Specialist” will be assigned to the KM Operation and Maintenance Department. In
addition to providing expert advice and support to the Department, the Specialist shall
study and propose additional measures and support required to improve the KM’s
capacity in planning and implementing road rehabilitation and maintenance measures.
(c) Financial Management: A Special bank account will be set up by KM for the Department
of Works and Maintenance. To avoid any interruption to the present government
accounting system, it is suggested to replicate the special account model that has been
successfully implemented in the Department of Sanitation of KM. On quarterly basis, the
Department of Works and Maintenance will submit Monitoring Financial Report (MFR)
to KM's Deputy Mayors, including both Technical as well as Finance and
Administration. The specific performance indicators in the MFR include, among others,
the following:
(i) Quarterly/Yearly expenditures on each construction of roads and buildings;
(ii) Quarterly/Yearly expenditures on maintenance of roads and buildings;
(iii)Quarterly/Yearly investments in real estate properties and equipment. These
should be reported with corresponding depreciation as part of the reporting of the
balance sheet, which indicates assets and liabilities."
21
Sub Component 4: Other studies and designs
59. Other studies and designs to further extend the road network and transport services are also
to be financed, and the designs and studies include natural disaster impact analysis for urban
transport infrastructure, urban road designs, and detailed design following the feasibility study of
high volume public transport corridors.
Component C: Project management support
60. . This component aims to establish a foundation for KM to ensure that KM has adequate
institutional capacity to implement the project and achieve the PDO. It will support the long-term
sustainability of the project through the tailored capacity building programs.
61. For the implementation of the civil Works contracts, one consultancy service is planned, i.e.
the Design Review and Site Supervision Consultant. On the other hand, monitoring and
evaluation (M&E) of the project is also proposed to use external consultancy services. The
contract costs are included in Component C as project management support for the municipality.
62. The project will embed consultants in the KUTEI Team to work on project management and
implementation, including technical advisory, procurement, financial management, social and
environmental safeguards, progress reporting, and translation etc. This will build up the capacity
of KM to manage private sector contractors and promote the involvement of the private sector in
O&M and other municipal services.
63. Thematic Studies, Training and Study Tours will enable the KM to access international best
practices and modern concepts. Topics tentatively selected include (i) Urban road engineering
design, (ii) Road maintenance system (iii) Traffic safety and traffic management techniques
including Urban Traffic Control (UTC) system, and (iv) Sustainable urban drainage system
development. Thematic studies are focused on critical urban transport topics, which may cover
(i) Land use plan, transport master plan and modeling, (ii) Road asset management system; (iii)
Transport issues in urban development policy and planning; etc.
64. Incremental operating costs: The project will finance the cost of external consultants to
strengthen the capacity of KM through the establishment of a dedicated Team of professionals
for KUTEI. In addition, KM will also assign eight civil servants to be embedded in the KUTEI
Team and their performance will be monitored and evaluated by KM. Performance based
incentives to build up the capacity of these civil servants working in KUTEI is included in
Component C. Such incentives would be the costs which would not have been incurred in the
absence of the Project, excluding the salaries of the eight civil servants. The cost of such
performance based incentive for the eight civil servants are included in the incremental operating
costs of the project10. These have been discussed and agreed with the Ministry of Finance.
10
The details, such as performance indicators and ToR for each civil servant, are prepared in the project
implementation manual.
22
Annex 3: Project Institutional and Implementation Arrangements
AFGHANISTAN: Kabul Urban Transport Efficiency Improvement (P131864)
Project administration mechanisms
65. Both KUTEI and KMDP will be implemented jointly as an urban infrastructure program by
KM. The two teams will be headed by the Project Director (Mayor of Kabul). A Team Leader
for KUTEI and a Team Leader for KMDP will be responsible for the day to day implementation
of each project. Common activities between the two projects such as procurement, financial
management and safeguards will be managed by one team for both projects. The respective
project Teams will be responsible for overall implementation of their projects, which includes
planning, budgeting, procurement, coordination, management, and monitoring of various
components. Both project Teams, will however, maintain separate project accounts. The key
responsibilities for both projects will include the following (See also Figure A3-1 for KM
Infrastructure Program Organizational Structure):

Project management including coordination, reporting, monitoring of progress and
programs;

Procurement of works, goods and services as per Annual Plan of Operation (APO)

Monitoring reports on physical and financial progress of implementation.

Maintenance of financial accounts

Review of quality control and quality assurance,

Expedite the Land Acquisition process and compensation to the Project Affected Persons
(PAPs) and implementation of Resettlement Action Plan (RAPs.

Liaison with the ministries / or other institutions / agencies / ministries etc., if required.

Contractual advice and settlement of disputes, claims.

Ensure implementation of Environmental Mitigation Plan (EMP) as set out in the
Environmental Assessment (EA).

Compliance with the Grant Covenants.

Preparation of the Implementation Completion Report (ICR) and Operational Plan (OP)
66. Although the KUTEI Team is established and functional, as ICB contracts come on line, it
will require augmentation of its technical capacity. Therefore, the procurement of international
consultant for procurement and contract management is underway and a Design Review and Site
Supervision consultant is already onboard. The augmentation of the KUTEI Team in KM will
build up the capacity of KM to manage private sector contractors and promote the involvement
of the private sector in O&M and other municipal services.
67. The diagram below represents the common implementation arrangements for KUTEI and
KMDP under the Office of the Kabul Mayor.
23
Figure A3 -1 KM Infrastructure Program Organizational Structure
Mayor
(Program Director)
KMDP Team Leader
KUTEI Team Leader
Engineering & Contract Management
Engineering & Contract Management
Social, Environment, Procurement, FM, M&E, HR, Admin & IT
Steering Committees
68. Establishing good coordination between different stakeholders such as the Ministry of
Transport, KM and Traffic Department of Ministry of Internal Affairs and as well as the
community and end users will be crucial for the efficient implementation and management of
any future high capacity public transport system, for which a study is being financed by KUTEI.
69. For this reason, the Government will institute two steering committees. The first “Strategic
Level” Committee, headed by the Mayor of Kabul, would be responsible for coordination
between the different Ministries and other Government institutions. A second “Technical” level
committee, led by the Technical Deputy Mayor of Kabul, would be responsible for coordination
between the different public institutions on technical issues and supervision of the work of the
KUTEI and the different consultants, so that this coordination can be sustained in the future
through the implementation stage of the future high capacity public transport system. Members
of this committee would be from the Department of Transport, PMU Team Leader,
representatives from the Milli Bus, Traffic Police, Kabul District offices etc. The Technical
Deputy Mayor of Kabul would also be a member of the Strategic Steering Committee for proper
coordination between the two committees.
70. The main responsibilities of the two steering committees will be as follows:
a.Strategic Level Committee
i. The main custodian and responsible body for the implementation of the future
high capacity public transport system;
ii. Liaise with the different higher level Government institutions as may be required
for the implementation of the system;
iii. Identify issues that require higher Governmental decisions or endorsements do all
the necessary for early actions by the concerned bodies;
iv. Determine responsibilities of the different Government agencies and ensure
coordinated actions towards successful implementation of the system;
v. Monitor the implementation of the system and take appropriate actions as may be
necessary;
vi. Undertake all actions necessary for the establishment of the “Kabul Metropolitan
Transport Authority”;
vii. Establish the “Technical Steering Committee” from among relevant institutions
such as Department of Transport, Ministry of Urban Development, Traffic Police,
24
the Milli Bus, Women’s Affairs and others that would contribute or have a stake
in the development of the high capacity public transport lines;
viii. Institute the necessary arrangements and establish a system for the two
committees to work together;
ix. Support the work of the Technical Steering Committee through provision of
guidance and timely decisions; and
x. Approve the public awareness campaigns and consultation plans prepared by the
Technical committee.
b.Technical Level Committee
i. Develop an implementation framework and work plan to implement the findings
of the public transport feasibility study, as well as implementation the
recommendation of the Strategic Steering Committee;
ii. Under the overall guidance of the Strategic Steering Committee and the support
of the different consultants, manage all technical issues of the high capacity
public transport system;
iii. Plan and implement public awareness campaign and undertake consultative
meetings with interested parties;
iv. Provide overall support and guidance to the KUTEI Project team in the day to day
management of public transport studies’ consultants and contractors;
v. Resolve all technical issues raised by the different stakeholders, consultants and
contractors.
Financial Management, Disbursements and Procurement
Financial Management
71. Considerable support was provided and reforms undertaken in the accounting and financial
management system in KM in 2006-2007. A recent FM assessment of KM, however, highlighted
that considerable improvements are still needed to enhance its accounting and reporting system
as well as its internal audit function. Consequently, the overall FM risk rating for the
implementing agency is high but the residual risk rating after application of the main mitigating
measure, the establishment of a dedicated Team for the management of KUTEI, is substantial.
72. The KUTEI Team under Kabul Municipality is functional; however, given the work load on
the combined Financial Management Team of the two projects, additional FM staffs are being
recruited.
73. Budgeting: The KUTEI will prepare annual work plans and annual budgets on behalf of KM,
and be responsible for ensuring that project expenditures for each fiscal year are captured in the
annual budget11 of the Ministry of Finance (MoF). The annual work plans will be cleared by
IDA.
11
The budgeting process and the key roles and responsibilities of Budget team/committee will be detailed in the FM
Manual.
25
74. Flow of Funds: The standard mechanism for flow of funds in Afghanistan will be followed in
this project. An advance of project funds will be deposited in the Designated Account (DA) at
the DA Afghanistan Bank (DAB) for KUTEI. This account is operated by the Special
Disbursement Unit (SDU) in the Treasury Department of MoF. The SDU will make payments
upon request from the KUTEI, to vendors, contractors, suppliers and other third parties. These
payments will follow World Bank procedures. Expenditures for each component will be paid
after relevant approvals from KM and in accordance with the approval mechanisms documented
in the project’s FM Manual that was reviewed and cleared by IDA in May 2013.
75. Withdrawal Applications: Withdrawal application for the replenishment of project funds to
the DA will be prepared by the KUTEI and submitted to the MoF’s SDU for review, approval
and processing. MoF can authorize disbursement from the Grant. Copies of signatures of
authorized signatories in MoF are on file with the Bank12.
76. Accounting system and Maintenance of Accounting Records: Project transactions will be
recorded in the AFMIS by the SDU. The KUTEI Team will follow the Afghanistan system of
accounting, which follows cash basis, maintain a basic accounting system to ensure that all
project transactions are captured in a timely manner, and develop a chart of accounts reflecting
project components and categories of expenditures to enable analysis during and after
implementation. The accounting system will be capable of producing FM reports such as the
IFR and financial statements. For internal control purposes, there will be a segregation of duties
between the person who records expenditures and the person who reviews and posts the entry.
77. The KUTEI will: (i) Supervise preparation of supporting documents for expenditures; (ii)
Prepare payment orders (Form M16); (iii) Obtain approval for M-16s by the Mayor or his
designee depending on the payment amount; and (iv) submit them to the SDU for verification
and payment. The KUTEI will maintain photocopies of all supporting documents attached to the
Form M16 for records retention purposes, maintain essential project transaction records using
computerized accounting system that will generate required monthly, quarterly, and annual
reports, and reconcile their accounts with the AFMIS and the client connection of the World
Bank on a monthly basis.
78. Internal Control: KM has developed a FM manual, which was found acceptable to the Bank.
This manual summarizes project FM arrangements. The SDU will be responsible for maintaining
project accounts and recording all project expenditures and receipts in the Government's
accounting system. The KUTEI will conduct monthly reconciliation of project expenditure
records with MOF records and project accounts book balance with the DA balance per bank
statement, and will follow up and clear rejected applications and prepare a monthly
reconciliation between project records and client connection to ensure that variances are dealt
with in a timely manner.
79. The project internal audit will rely on the internal audit function of the MoF to conduct
quarterly visits and provide quarterly reports on the project internal controls.
12
Detailed FM report as an optional Annex in Project Files.
26
80. Financial Reporting: Financial Statements and Project Reports will be used for project
monitoring and supervision and will be prepared monthly, quarterly, and annually by the KUTEI
Team. These reports will be produced based on four sources: (a) Project accounting system; (b)
Expenditure statements from SDU (as recorded in AFMIS) and reconciled with the project
records; (c) Bank statements from DAB; and d) World Bank client connection.
81. The quarterly project IFRs will show: (a) sources and uses of funds by project components;
(b) reconciliation with the World Bank client connection record and (d) variance analysis for
differences exceeding 15% between actual and budgeted amounts. The client connection
reconciliation will highlight rejected applications by the Bank responsible for creating
differences between the project books and client connection. This will help timely monitoring of
the number of rejected applications and ensure that remedies are exercised promptly to reconcile
project records with the Bank records. This will also ensure that the year-end audited financial
statement reported expenditures are not inflated by amounts that were rejected by the Bank. The
project will forward the relevant IFRs to the Bank within 45 days of the end of each quarter.
GoIRA and the Bank have agreed on a pro forma report format for all Bank projects; a final
customized format for this project will be provided during project negotiations.
82. Arrangements for External Audit: The project accounts will be audited by the Auditor
General, with the support of the Audit Advisor, with terms of reference satisfactory to the
Association. The audit of the project accounts will include an assessment of the: (a) adequacy of
the accounting and internal control systems; (b) ability to maintain adequate documentation for
transactions; and (c) eligibility of incurred expenditures for Bank financing. The audited annual
project financial statements will be submitted within six months of the close of fiscal year.
Responsible Agency
Audit
Auditors
KM/KUTEI Team
SOE, Project Accounts Auditor
and Designated Account
General
Date
Within 6 months after the end
of the Fiscal Year
83. Currently there are no Bank-financed projects or any overdue audits pertaining to KM.
Disbursements
84. Disbursement Methods: Table 3 shows the allocation of ARTF Grant proceeds. The project
will have a 4-month grace period after the closing date stipulated in the Grant Agreement.
During this additional 4-month grace period, project-related expenditures incurred prior to the
closing date are eligible for disbursement or documentation against advances to the designated
accounts.
85. Summary Reports: Summary reports in the form of Summary Sheet will be used for
expenditures on contracts valued at US$500,000 or more for civil works, US$200,000 or more
for Goods, US$100,000 or more for Consulting Firms, and US$50,000 or more for individual
consultants. Supporting documents, such as invoices or receipts etc., will be required for claims
of these project expenditures. Project expenditures on contracts below the above thresholds,
training and workshops, incremental operating costs will be claimed through the Statement of
Expenditures.
27
86. Bank Accounts: Two bank accounts will be opened for this project. A Designated Account
(DA) managed by the MoF will be opened at the Da Afghanistan bank in USD. This DA can be
used to make any payments. A Project Account (PA) managed by KUTEI will be opened at the
Da Afghanistan bank in USD. The PA will receive advances from the DA equivalent to three
months of projected disbursements. KUTEI will use the PA funds to make payments, other than
salaries, operating costs and payments for contracts subject to prior review by IDA which shall
only be paid from the DA. The PA will seek replenishment form the DA only upon acquittal of
advances every thirty days but no later than ninety days. KUTEI will provide monthly reports to
MoF on the use of the cash advances. In the event of any ineligible expenditures caused by
Kabul Municipality, the Ministry of Finance will receive refund of the said amount from Kabul
Municipality.
87. Direct Payments and Special commitment: Third-party payments (direct) and Special
Commitments will be permitted for amounts exceeding US$200,000. All such payments require
supporting documentation in the form of records (copies of invoices, bills, purchase orders, etc.).
For Special Commitment, a withdrawal application from the project, together with a copy of the
letter of credit issued by a commercial bank or financial institution, will be required.
Table 3: ARTF Financing by Category of Expenditure (US$90.5 million)
Expenditure Category
Amount of the Grant Allocations
(1) Goods, works, non-consulting
services, consultants’ services, training,
and Incremental Operating Costs
Total
Financing
Percentage
ARTF
(in US$ M)
90.50
100 %
90.50
-
Procurement
88. The results of the procurement risk assessment13 of the implementing agency, KM, revealed
a lack of a clear system of accountability with clearly defined responsibilities and delegation of
authority on who has control of procurement decisions. There exist no internal manuals that
provide clarity on procurement processes. There is no discloser policy (Debriefing, Award
Decision and Right to Information), nor any mechanism for receiving and handling complaints.
Additionally, the KM does not have adequate, qualified and experienced staff for managing
procurement.
89. Based on the substantial experience and understanding of the procurement environment in
Afghanistan since 2002, and though working with the institutions currently responsible for
procurement functions, including the Afghanistan Reconstruction and Development Services, the
Bank undertook a broader review of Afghanistan’s Public Finance Management (PFM) system.
The Bank carried out two assessments in June 2005 and September 2007, of the procurement
environment in the country based on baseline and performance indicators developed by a group
of institutions led by the World Bank and OECD/DAC. These assessments revealed a lack of
ownership and lack of a procurement champion in the Government, which is a serious
13
Refer to Bank’s P-RAMS for more detail.
28
impediment to reform and to inter-ministerial dialogue. They also revealed a lack of capacity in
the line ministries, as evidenced by their inability to define and communicate effectively their
desired functional specifications/terms of reference in their procurements. There is also a lack of
capacity in the local private sector – although the number of bids submitted is reasonably high,
there is a lack of understanding about how to apply public procurement rules.
Government Reforms
90. A new Procurement Law (PL) was adopted in November 2005 that radically transforms the
legal and regulatory framework. In accordance with the law, GoA established a Procurement
Policy Unit (PPU) under the MoF to provide oversight for the PL’s implementation. The PPU
has issued several circulars regarding implementation of the PL, including “Rules of Procedures
for Public Procurement” (Circular: PPU/C005/1386 of April 12, 2007) and “Procurement Appeal
and Review Mechanism” (Circular: PPU/N001/1385 of March 18, 2007). The PPU and MoF
have developed several standard bidding documents (SBDs), standard requests for proposal
(SRFPs), standard requests for quotation (RFQs) for national and international procurement of
goods/works and consulting services following national procedures as per the PL’s Glossary of
Procurement Terms in English and Dari. MoF has now mandated the use of: (i) SBDs for Goods
and Works (Circular PPU/C024/1388 of June 10, 2009); (ii) SRFQs (Circular PP/C026/1388);
and (iii) SRFPs (Circular PPU/C029/1388 of January 13, 2010). A Procurement Management
Information System (PMIS) has been developed and is being piloted in three line ministries. In
addition, a PPU Web site will facilitate publication of procurement notices and contract awards
in addition to similar action being done under the ARDS-Web site and the Web sites of the line
ministries, as applicable.
91. In the absence of adequate capacity to manage procurement activities effectively, a central
procurement facilitation unit (ARDS–PU) has been established under Ministry of Economy to
support line ministries and project implementing agencies. The Bank and the Government have
agreed on a program for country-wide procurement reform and capacity building, leading to the
transition from centralized to decentralized procurement services. The above was implemented
by an international consultant under the supervision of PPU/MoF and financed under the Public
Administration Capacity Building Project (PACBP) and the Public Finance Management Reform
Project (PFMRP). Several basic, intermediate, and advanced level training programs were
delivered. The implementation of the procurement reform component of the PACBP/PFMRP
should be considered with due priority to ensure that fiduciary standards are further enhanced
and that capacity is developed in the Government to maintain these standards.
92. The Procurement Law was revised in July 2008 and amended in January 2009 and issued as a
new Law by the Ministry of Justice published in the Official Gazette Number 957, 29.10.1387
(18 January 2009). The revised “Rules of Procedures for Public Procurement” have been issued
as circular PPU/C027/1387 of November 18, 2009.
General Procurement for KUTEI
93. Procurement for the project will be administered in accordance with the World Bank’s
Guidelines: Procurement under IBRD Loans and IDA Credits dated January 2011 Guidelines:
Selection and Employment of Consultants by World Bank Borrowers dated January 2011 and
the provisions stipulated in the Financing Agreement. In addition, the World Bank’s Guidelines
on Preventing and Combating Corruption in Projects Financed by IBRD Loans and IDA Credits
29
and Grants dated October 15, 2006 revised in January 2011 has been shared with the recipient.
The World Bank’s Standard Bidding Documents, Requests for Proposals, and Forms of
Consultant Contract will be used. Civil works and goods following National Competitive
Bidding (NCB) procedures shall be procured using the agreed Standard Bidding Documents
(SBDs) for Afghanistan. It has been agreed by both parties that in the event of a conflict between
IDA Procurement/Consultant Guidelines, as per Article 4 (2) of the Procurement Law July 2008
(Amendments in January 2009 incorporated) of the GoA, the IDA Procurement/Consultant
Guidelines shall prevail.
Procurement of Works
94. Civil Works to be procured under this project would include, Construction of Roads
95. The procurement will be done using the Bank’s Standard Bidding Documents (SBD) for all
ICB and National SBD agreed with (or satisfactory to) the Bank. Threshold for ICB civil works
will be equivalent or more than US$ 5,000,000 per contract; threshold for NCB works will be
less than US$ 5,000,000 per contract.
Procurement of Goods and Non Consulting Services
96. Goods to be procured under this project would include: Office Equipment, Vehicles, Road
Maintenance Equipment
97. Procurement of the goods will be done using Bank’s SBD for Goods for all contracts
following International Competitive Bidding (ICB) procedures. National SBDs agreed with, or
satisfactory to IDA, will be used for the procurement of goods following National Competitive
Bidding (NCB) procedures. Shopping shall be in accordance with paragraph 3.5 of the Bank’s
Guidelines. Any contract estimated costing more than US$200,000 shall be procured following
ICB procedures. Any contract estimated to cost more than US$50,000 equivalent and less than
US$200,000 shall be procured following NCB procedures. Any contract estimated to cost less
than US$50,000 equivalent shall be procured following shopping procedures. Goods that meet
the requirements of paragraph 3.7 of the World Bank Procurement Guidelines may be procured
following direct contracting procedures with prior agreement with IDA. LIB and LNB are other
method which could be considered and will need prior concurrence of the WB.
Selection of Consultants
98. The proposed grant would finance several consultancy assignments.
99. Firms: The Following Consultancy Firms will be hired under the Project: Individuals
Consultant and Design and Supervision Consultancy.
100. Individual consultants: Key managerial, technical, and fiduciary, individual consultants
will be hired under the project, ,
101. Hiring of managerial, technical, procurement, financial management and legal staff shall be
prior reviewed by the Bank regardless of contract value.
102. Short lists of consultants. For services estimated to cost less than US$100,000 equivalent
per contract may be composed entirely of national consultants in accordance with the provisions
30
of paragraph 2.7 of the Consultant Guidelines. The selection methods applicable for consultants
are QCBS, QBS, CQS, LCS, FBS, and SSS for firms as per Section V of the Bank’s Guidelines
for Individuals. The threshold for CQS will be less than US$200,000 equivalent per contract.
Operating Costs
103. The operating costs which would be financed by the project would be procured using the
implementing agency’s administrative procedures, which were reviewed and found acceptable to
the Bank. The operating costs will include operations and maintenance of equipment and
vehicles, hiring of vehicles, office rent, costs of consumable, fuel, office utilities and supplies,
Bank charges, advertising expenses, and staff needed for project implementation, but exclude
any salaries and allowances of civil servants.
Assessment of KM’s capacity to implement Procurement
104. KM will have overall responsibility for all procurement under the project. However the
procurement will be carried out by the KUTEI Team.
105. An assessment of the capacity of the current procurement staff of the KUTEI project that
will have primary responsibility to conduct procurement under the KUTEI was undertaken. The
current KUTEI project has 2 procurement staff. The staff are (i) a national Procurement
Specialist, (ii) Procurement Assistant (capacity of the above staff were reviewed and the findings
are as follows:



The procurement specialist has adequate procurement experience in civil works, Goods
(ICB & NCB) and less in hiring consultancy firms. The procurement specialist received
oversea trainings in Procurement
KUTEI will need to get accreditation of Procurement Policy Unit (PPU) to handle
procurement independently without going through ARDS.
The Bank will provide support to Kabul Municipality to establish a system for debarring
contractors before the bid documents for works are purchased, as part capacity building
support to improve the quality of procurement in Kabul Municipality.
106. In keeping in mind the Decree 45 of the President and to streamline the procurement units
of ministries, the current project procurement staff will gradually be transferred to the KM
Procurement Directorate but will be working solely for project. This will help to further develop
capacity of the procurement directorate of KM.
107. Based on the above capacity the procurement risk under the KUTEI is Moderate.
Procurement Risk Mitigation Monitoring Plan
108. KM/KUTEI will ensure that all invitations for bid, EOIs are given wide publicity using its
own website, ARDS, United Nations Development Business UNDB and national newspapers.
Further for individual consultants the REOI/vacancy notice will be published on the following
websites www.ards.af\ www.acbar.org, www.devnetjobs.org and www.reliefweb.int
31
109. With regard to procurement complaints, KM/KUTEI will be guided by Article 71-72 of
Procurement Law-2008 and Bank Guidelines. KM/KUTEI will inform IDA as soon as the
procurement complaint is received and the final outcome subsequently KM/KMDP should have
system to register and monitor the receipt and resolving of complainants. The progress of such
action will be reviewed by IDA during supervision missions.
110. KM/KUTEI will prepare a Procurement Monitoring/Activity Schedule for Procurement of
goods, works and Selection of consultant. The Monitoring/Activity Schedule shall be updated on
a monthly basis. The above schedules will facilitate to monitor the time taken for
procurement/selection activities and take remedial actions for delays. It has been agreed that all
bid/proposal evaluations will be completed within: (i) working days following shopping
procedure; (ii) 15 – 20 working days following NCB/ICB procedures; (iii) 10 working days for
individual consultants; and (iv) 15 working days for firms for REOI evaluation, 21 working days
for Technical Evaluation Report (TER) and 20 working days to conclude the contract
negotiations. There will be no more than 20% deviation between planed and actual procurement
conducted under the project.
111. All the above indicators will be monitored during Implementation Support Mission for the
project.
Governance and Anticorruption (GAC) agenda
112. All the contract opportunities and contract awards will be widely published in the internet,
ARDS website, and when required in the UNDB.
113. KM/KUTEI will set up a system to ensure that staff/consultants who handled the
procurement process/contract management/contract execution do not join the
consultants/contractors. This will be reviewed during supervision missions. Other actions are: (a)
implementing agencies’ officials / staff to be alerted about any fraud and corruption issues; (b)
bidders to be alerted against adopting fraud and corruption practices; (c) award contracts within
the initial bid validity period, and closely monitor the timing; (d) take action against any corrupt
bidder in accordance with law of the Government of Afghanistan; (e) preserve records and all
documents regarding public procurement, in accordance with the Procurement Law provisions;
(g) publish contract award information in UNDB online, ARDS’s website and agencies’ websites
within two weeks of contract award; (h) ensure timely payments to the suppliers/contractors/
consultants and impose liquidated damages for delayed completion and, (i) enforce a
procurement filing system.
Procurement Plan
114. The Borrower, at appraisal, developed a Procurement Plan for project implementation that
provides the basis for the procurement methods. This plan has been agreed between the client
and the Bank’s Task Team on October 10, 2013 and is available at the project office. It will also
be available in the Project’s database and on the Bank’s external website. The Procurement Plan
will be updated in agreement with the Project Team annually or as required to reflect the actual
project implementation needs and improvements in institutional capacity. Please find the detailed
procurement plan in the Appendix1 of this Annex.
32
FREQUENCY OF PROCUREMENT SUPERVISION
115. There will be two Implementation Support Missions per year, in addition to the usual
ongoing prior review supervision to be carried out from Bank office.
116. Procurement Audit. In addition to prior review, Bank staff or Bank appointed consultant
shall carryout post procurement audit once per annum.
Environmental and Social (including safeguards)
Environment
117. The project is classified as a Category B project. The following safeguard policies triggered
are: OP4.01 Environmental Assessment, and OP4.12 Involuntary Resettlement.
118. The two project sites comprising the waste water treatment plant and the upgrading of
roads involve realignment. Impacts would be comprehensively assessed as part of the
Environmental Impact Assessment (EIA). The EIA will be site-specific and be the basis for the
development of the site specific Environmental Management Plan (EMP). The EIA and the
EMPs would comply with both World Bank and Government of Afghanistan (GoA)
environmental regulation and requirements.
119. It is envisaged environmental impacts of the project will be positive particularly on living
conditions, environmental conditions and infrastructure services in the project sites. Key positive
impacts of the project include reduction in traffic congestions and traffic-related accidents,
improved capacity of the drainage system, collection and treatment of wastewater and solid
waste, improved quality of waterways and improved city level living conditions.
120. The project will cause some negative impacts during and post construction phase on the
local environment and on the local population. For infrastructure rehabilitation, most of the
negative impacts, however, would be localized, reversible and manageable limited only to the
specific urban areas during the construction phase, while the water treatment plants need more
stringent mitigation measures to overcome impacts during the operational phase. Most of the
negative impacts include air, noise, water pollution, soil erosion and sediment deposition,
generation of solid and construction wastes, generation and disposal of dredged materials from
dredging and excavation, odors caused by materials dredged from ditches and waste water
drainage canals, traffic disruption and congestion, temporary losses to local businesses, damage
to existing infrastructure and public services, risks to public safety due to construction activities,
occupational health and safety and overburdened local authorities.
121. The negative impacts can be addressed through proper design, site and construction
management; stringent application specific measures, as proposed in the individual EMPs.
Mitigation measures will be incorporated into the bidding documents and contract for all civil
works. The consultant firm together with KUTEI will be responsible to ensure that contractors
comply with the environmental provisions of their contracts.
122. The EIA will review the linked or ancillary facilities i.e. the waste water treatment system,
which will be financed by the project. The EIA will ensure due diligence of the ancillary
facilities including the mitigation measures of the proposed wetland, nuisance and demarcation
33
of sludge handling and proper dumping to control surface, and ground water pollution during the
operational phase of water treatment plants. The specifications for handling dredged materials at
dumping sites will be included in the EMPs and monitored accordingly during project
implementation and operational phase. The cumulative impacts of the proposed road upgradation and wastewater treatment systems are deemed to be insignificant. Based on technical,
environmental, and social criteria; during the EIA preparation a more detailed analysis of
alternatives will be undertaken. The alternatives will be considered during the technical design
stages, to avoid or minimize adverse environmental impacts.
123. To facilitate effective implementation of the EMPs, KUTEI Team will; (i) hire an
Environmental and Social Safeguards Officer responsible for ensuring the timely implementation
of the EMP, including monitoring, reporting, and capacity building related to safeguards; (ii)
assign the Consultant Firm to be responsible for supervision of the contractor's safeguard
performance as part of the construction contract and this requirement will be included in the
firm's terms of reference ; (iii) and the contractor will assign a focal point for each sub-project to
ascertain safeguards compliances on field level.
124. The consultant firm will be responsible for regular spot checks of construction quality and
compliance with the EMPs and provide more frequent monitoring, maintaining independence
from the KUTEI Team as well as impart timely alerts and make recommendations for poor
environmental management practices.
125. OP4.12 Involuntary Resettlement. The drainage water treatment facilities along corridor4 and road widening in Karta-e Naw may cause land acquisition, and would be known at the
preliminary design stage. OP4.12 Involuntary Resettlement is therefore triggered. The ESMF
includes a Resettlement Policy Framework (RPF) that would be applied to preparation of site
specific Land Acquisition Plan (RAP) where land acquisition and/or resettlement are involved.
The RPF defines the land acquisition principles and procedures to be followed as well as
eligibility criteria for different categories of project affected peoples, and consultation and
compensation procedures, and requirements for preparation of sub-project specific RAPs, in
accordance with the Afghan legal framework for land acquisition and OP 4.12.
126. There will be a Social Impact Assessment (SIA) for the proposed drainage water treatment
facilities and road widening in Karta-e Naw. The SIA will include an extensive census and socioeconomic surveys conducted in the resettlement areas once the areas are identified at the
preliminary design study stage. A RAP will be prepared as needed and be in accordance with the
bank’s policies on Resettlement.
127. Grievance Handling Mechanism. KUTEI will further strengthen the transparency of
project supported works through establishing a Grievance Handling Mechanism (GHM). The
GRM for KUTEI will include guidelines detailing how the complaints will be received, sorted,
processed acknowledged, investigated and acted upon, and monitored. Clearly defined timetables
for complaint acknowledgement and follow up activities will be established which will be
publicized externally as part of KUTEI communication strategy. KUTEI will receive the
necessary training. In addition, complaints nodal volunteers will be identified at the community
level on sites of subprojects, to inform people on how to register their complaints, if any.
34
128. Institutional Arrangements. To facilitate effective implementation of the ESMPs, KUTEI
will; (i) hire an Environmental and Social Safeguards Officer responsible for ensuring the timely
implementation of the ESMP, including monitoring, reporting, and capacity building related to
safeguards; (ii) assign a Consultant to be responsible for supervision of the contractor's safeguard
performance as part of the construction contract; (iii) and the contractor will assign a focal point
for each sub-project to ascertain safeguards compliances on field level. KUTEI will be
responsible for regular spot checks of construction quality and compliance with the ESMPs.
129. Stakeholder Consultations. KUTEI will make stakeholder consultations a priority to
improve the effectiveness, relevance and sustainability of transport infrastructure services both at
design and implementation stages. Stakeholders to be involved in traffic improvement
interventions include the traffic police, public transport service provider Mili Bus. Stakeholders
will be provided with information about proposed transport infrastructure services and their
potential impacts; feedback and suggestions will be solicited and addressed as feasible.
130. Disclosure. The ESMF and RPF have been finalized and disclosed in the Bank’s Info shop
on December 1, 2013. The ESMP for the civil works supported under retroactive financing has
also been disclosed.
Monitoring & Evaluation
131. Traffic capacity improvement will be measured by the average vehicle speed over off peak
times: this captures the road improvements on Level Of Service (LOS). The travel speed in off
peak time is an appropriate indicator to capture the traffic capacity due to road condition
improvements.
132. People in urban areas provided with access to all season roads within a 500 meter range
under the project: This is a core indicator for urban transport and captures accessibility;
133. “Fair” and above surface condition of major urban road network improved (%): This
will assess the annual improvement of trunk road condition of Kabul urban road network.
35
Appendix 1: Procurement Plan
I. GENERAL
1. Country: Islamic Republic of Afghanistan.
Borrower: Kabul Municipality
Project Name: Kabul Transport Efficiency Improvement Project
Grants No: TBP
Project Implementation Agency (PIA):
2. Bank’s approval Date of the procurement Plan: October 10, 2013
3. Date of General Procurement Notice: TBP
4. Period covered by this procurement plan: (18 months)
1. Procurement Method and Threshold
Procurement Method
1.
2.
3.
4.
5.
6.
7.
8
ICB (Works)
ICB (Goods)
NCB (Works)
NCB (Goods)
Shopping (Goods )
Shopping (Works)
ICB (Non-Consultant Services)
NCB (Non- Consultant Services)
Threshold for Methods
(US$)
5,000,000
200,000
5,000,000
200,000
50,000
100,000
200,000
200,000
Comment
Equivalent or more
Equivalent or more
Equivalent or less
Equivalent or less
Equivalent or less
Equivalent or less
Equivalent or more
Equivalent or less
II. Goods and Works and non-consulting services.
2. Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as
stated in Appendix 1 to the Guidelines for Procurement:
Procurement Method
Prior
Review Comment
Threshold
(US$)
500,000
Equivalent or above
Equivalent or above
5, 000,000
and first 3 contracts
regardless of value.
200,000
Equivalent or above
1.
2
(Goods)
(Works)
3
4
(Non-Consultant Services)
Direct
Contracting
(Works,
50,000
Goods, Non Consulting Services)
36
Equivalent or above
3. Prequalification. No contracts are foreseen to require prequalification at this point. Should contracts at a later stage require
prequalification, bidders shall be prequalified in accordance with the provisions of paragraphs 2.9 and 2.10 of the Guidelines.
4. Procurement Packages with Methods and Time Schedule
1
2
Ref
No/ Contract (Description)
Package No.
3
Estimated
Cost US$
4
Awarded/Re
vised Cost
US$
5
6
Procurement Prequalification
Method
(Yes/No)
(ICB/NCB)
7
Domestic
Preference
(Yes/No)
8
Review
by Bank
(Prior/
Post)
9
Expected
BidOpening
Date
10
11
Actual
Comment
BidOpening
Date
Construction
of
Macrorayan - II & III
(Lot 1. Roads)
Construction
of
Macrorayan - IV &
Kabul - Nandare (Lot 2.
Roads)
Construction
of
Charahi Shaheed Pule-Surkh-Darul Aman
Jamal Mena Depo Charahi
Agricultural
Ministry (Lot 3. Roads)
Construction of Silo
Main (Lot 4. Road)
2,257,881.41
1,911,592.64
NCB
No
No
Prior
July 24,
2013
May 01,
2013
3,721,018.63
4,069,363.74
NCB
No
No
Prior
Nov 12,
2013
July 13,
2013
4,853,707.25
4,463,510.31
NCB
No
No
Prior
Feb 20,
2014
July 14,
2013
4,574,878.44
NCB
No
No
Post
May 10,
2014
Construction of Karte
Naw
Road-Naqliae
Seyah Sang -Nasaji
Bagrami
Tanke Logar - Naqliae Siasang (Lot 5. Road)
8,767,639.96
ICB
Yes
Yes
Prior
Jun 30,
2014
Civil WORKS
KUTEI/W-001
KUTEI/W-002
KUTEI/W-003
KUTEI/W-004
KUTEI/W-005
37
KUTEI/W-006
KUTEI/W-007
KUTEI/W-008
KUTEI/W-009
KUTEI/W-010
Construction
of
Charahi Parwan-II Golayee
Khwaja
Boghra
Sra Mena - Golayee
Khwaja
Boghra
Golahi Park - Sra Mena
(Lot 6. Roads)
Construction
of
Charahi Parwan-3 Charahi Lab-e-Jar Charahi Panjsad Family
Ksheht-e-Hokhtif
Golahi Park (Lot 7.
Road)
Construction
of
Charahi Qalai Najarha Charahi Taimani Sarai
Shamali - Khesht-eHokhtif (Lot 8. Roads)
Installation of Sewage
Water
Treatment
Plants
and
Pump
Stations for District 4
Flood Area
Upgrading
and
maintenance of Wazir
Abad
Canal
(reconstruction of 6 km
canal
with
stone
masonry walls )
TOTAL WORKS
9,646,690.14
ICB
Yes
Yes
Prior
May 15,
2014
11,742,913.1
9
ICB
Yes
Yes
Prior
Jun 05,
2014
10,599,627.6
4
ICB
Yes
Yes
Prior
Jun 15,
2014
8,800,000.00
ICB
Yes
Yes
Prior
Aug 10,
2014
3,575,000.00
NCB
No
No
Post
Aug 15,
2014
68,539,357
0
Note: ICB= International Competitive Bidding, NCB = National Competitive Bidding
38
Procurement Packages with Method (Goods for KUTEI Team purposes)
1
Ref
No/
Package No.
.
KUTEI-G1
KUTEI-G2
2
Contract (Description)
Vehicles
2No. 4WD Double Cabin
Pickups and 1 Sedan
Furniture for PMU
Office Furniture
3
Estimated
Cost US$
4
Contracted
Cost US$
5
Procur
ement
Metho
d
6
Prequalif
ication
(Yes/No)
7
Domesti
c
Prefere
nce
(Yes/No
)
8
Review by
Bank
(Prior/Post
)
9
Expected
BidOpening
Date
10
Bid Opening
Date
90,000
98,658.97
NCB
No
No
Prior
15-Feb-13
3-Feb-13
12,117
21,250.00
Shoppi
ng
No
No
Post
15-Dec-12
15-Dec-12
33,327
31,286.54
Shoppi
ng
No
No
Post
15-Dec-12
15-Dec-12
18,680
7,465
Shoppi
ng
No
No
Post
15-Dec-12
19-Dec-12
2,800,000
ICB
No
No
Prior
10-Oct-14
80,000
NCB
No
No
IT Equipment
KUTEI-G3
KUTEI-G4
KUTEI-G5
KUTEI-G6
Computers and other IT
Equipment
Office Equipment for PMU
Office Equipment
Road
Maintenance
Equipment
Assorted road routine
maintenance
equipment
including an Asphalt Plant
and a paver
2 (Two) 4WD Double Cabin
Pickups
15-Mar-14
KUTEI-G7
Traffic
Signal
Design
Software and Manuals
49,000
Shoppi
ng
No
No
Post
10-Feb-14
KUTEI-G8
Traffic CCTV Cameras
50,000
Shoppi
ng
No
No
Post
10-Feb-14
Total Goods
3,133,124
39
11
Comment
III. Selection of Consultants
1. Prior Review Threshold: Selection decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines
Selection and Employment of Consultants:
Selection Method
1.
2.
3.
Competitive Methods (Firms)
Individual Consultant
Single Source (Firms) or individual
Prior Review
Threshold (US$)
200,000
100,000
All
Comment
Equivalent or above
Equivalent or above
Regardless of value
2. Short list comprising entirely of national consultants: Short list of consultants for services, estimated to cost less than
$100,000 equivalent per contract, may comprise entirely of national consultants in accordance with the provisions of paragraph
2.7 of the Consultant Guidelines.
3. Any Other Special Selection Arrangements: [Not Applicable]
4. Consultancy Assignments with Selection Methods and Time Schedule
1
2
No. of Packages
Description
Assignment
KUTEI/ICB/FC-1
KUTEI/ICB/FC-3
3
4
5
Estimated
Cost
Awarded/
Revised
Cost
Selection
Method
Design
Review
and Supervision
Consultant
4,600,000
4,800,000
Public Transport
Feasibility Study
Consultant
1,535,000
of
QCBS
6
Review
by Bank
(Prior
/Post)
Prior
7
Expected
Proposals
Submissio
n Date
29-Apr-13
QCBS
Prior
1-Feb-14
40
8
Actual/
Expected
Contract
Start Date
17-Dec-13
9
Comment
To review the detailed designs for the eight
road rehabilitation total length 32 km
included in the Project and supervision of
the Works in the capacity of the Engineer.
The Study shall include analysis of possible
public transport options and should
recommend the most feasible arrangement
to address the current transport problems of
the Kabul City.
KUTEI/ICB/FC-4
KUTEI/ICB/FC-5
KUTEI/ICB/FC-6
KUTEI/ICB/FC-7
KUTEI/ICB/FC-8
Consultancy
Service
for
Business
Plan
Development for
selected
Public
Transport Option
Public Transport
Detailed
Engineering
Design Consultant
QCBS
1-Mar-15
1,000,000
Baseline
and
other surveys of
Project indicators
90,000
Total Consultancy
Services
QCBS
Prior
15-Aug-15
QCBS
Prior
30-Sep-16
SSS
Prior
QCBS
Prior
1,500,000
Kabul City Urban
Roads
Design
Project
TA for priority
interventions for
city
center
accessiblity,
including detailed
designs
Prior
678,000
3-Jun-13
40,565.00
5,000,000.
00
9,403,000
41
30-Jul-14
Consultancy Service for developing business
plan for commercial operation of the
selected public transport option and to
study the institutional arrangements
required for transport management and
administration in Kabul
To prepare the detailed engineering designs
of the selected public transport options in
line with the preliminary designs prepared
by the FS consultant, including all additional
infrastructures identified
To prepare the detailed engineering designs
for additional road construction/upgrading
projects that could possibly form part of the
KUTEI Phase II Project
To udertake baseline survey for monitoring
and evaluation. It is proposed to give the
assignment to the VAU of the Ministry of
Rural Rehabilitation and Development, as
they are unicly capable to undertake such
assignments
The Study shall include analysis of possible
interventions for the city center accessibility
and service and operations plans, physical
and operational design of the Flyovers,
traffic
engineering
improvements,
application of ITS technologies, fare
collection mechanisms, etc.
IV. Implementing Agency Capacity Building Activities with Time Schedule
1
No
2
2
Expected outcome /
Activity Description
3
Estimated
Cost
(US$)
Procurement training in
world bank
3
Procurement
by PPU
4
5
6
7
Estimated
Duration
Start
Date
Closing
Date
Comments
No cost
Min 1 day and
1-Apr-13
max 1 week
30-Jun14
No cost
Min 1 week and
1-Apr-13
max 3 weeks
30-Jun14
training
Training will
take
place
from 1-Apr13 till 30-Jun13
The training
will take place
from 1-Apr13 till 30-jun13
Agreed Procedures for National Competitive Bidding:
I.
Standard bidding documents approved by the Association shall be used.
II.
Invitations to bid shall be advertised in at least one (1) widely circulated national daily
newspaper and bidding documents shall be made available to prospective bidders, at least
twenty eight (28) days prior to the deadline for the submission of bids.
III.
Bids shall not be invited on the basis of percentage premium or discount over the
estimated cost.
IV.
Bidding documents shall be made available, by mail or in person, to all who are willing
to pay the required fee.
V.
Foreign bidders shall not be precluded from bidding.
VI.
Qualification criteria (in case pre-qualifications were not carried out) shall be stated on
the bidding documents, and if a registration process is required, a foreign firm determined
to be the lowest evaluated bidder shall be given reasonable opportunity of registering,
without any hindrance.
VII.
Bidders may deliver bids, at their option, either in person or by courier service or by mail.
VIII.
All bidders shall provide bid security or a bid security declaration form as indicated in the
bidding documents. A bidder’s bid security or the declaration form shall apply only to a
specific bid.
IX.
Bids shall be opened in public in one place preferably immediately, but no later than one
hour, after the deadline for submission of bids.
42
X.
Evaluation of bids shall be made in strict adherence to the criteria disclosed in the
bidding documents, in a format, and within the specified period, agreed with the
Association.
XI.
Bids shall not be rejected merely on the basis of a comparison with an official estimate
without the prior concurrence of the Association.
XII.
Split award or lottery in award of contracts shall not be carried out. When two (2) or
more bidders quote the same price, an investigation shall be made to determine any
evidence of collusion, following which: (A) if collusion is determined, the parties
involved shall be disqualified and the award shall then be made to the next lowest
evaluated and qualified bidder; and (B) if no evidence of collusion can be confirmed,
then fresh bids shall be invited after receiving the concurrence of the Association;
XIII.
Contracts shall be awarded to the lowest evaluated bidders within the initial period of bid
validity so that extensions are not necessary. Extension of bid validity may be sought
only under exceptional circumstances.
XIV.
Extension of bid validity shall not be allowed without the prior concurrence of the
Association (A) for the first request for extension if it is longer than four (4) weeks, and
(B) for all subsequent requests for extensions irrespective of the period in case of prior
review.
XV.
Negotiations shall not be allowed with the lowest evaluated or any other bidders.
XVI.
Re-bidding shall not be carried out without the Association’s prior concurrence in case of
prior review; and
XVII.
All contractors or suppliers shall provide performance security as indicated in the
contract documents. A contractor’s or a supplier’s performance security shall apply to a
specific contract under which it was furnished.
43
Annex 4: Implementation Support Plan
AFGHANISTAN: Kabul Urban Transport Efficiency Improvement (P131864)
Strategy and Approach for Implementation Support
134. The objective of the Implementation Support Plan (ISP) is to ensure (i) risks identified in
the ORAF would be mitigated through carefully designed measures; (ii) development objectives
of the project would be satisfactorily achieved by project end; and (iii) implementation of all
project activities would follow agreed procedures and complies with all fiduciary and safeguard
requirements.
135. Through the ORAF process, overall project risk has been rated as “Substantial”. Two risk
categories, i.e. Country and Implementation agency capacity, have been rated “High”; four
categories, namely Stakeholder, Sector and multi-sector, Fraud and corruption and Delivery
monitoring and sustainability, are rated “Substantial”; and four other categories, namely
Governance, Project design, Social and environmental and “Other”, are rated “Moderate”. This
analysis means the team will supervise and support the client from very basic routine project
management and fiduciary activities up to some “high-end” activities, such as traffic
management and road safety.
136. Mitigation of “Country risk” is outside of the scope of the Bank, and therefore the
mitigation measures are exclusive of ISP scope. The task team will follow CMU’s guidance to
deal with the risk.
Implementing Agency Capacity
137. The Bank team will regularly monitor the implementation of the FMM, the ESMP, the
RAP (if any), the ESMF and the agreed procurement policies and procedures. The team will also
monitor the implementation of the institutional capacity building related components of the
project, namely Components A2 and B, which is the principal risk management measure to
address this risk. In addition, it will continue to provide specialized training on procurement,
financial management, and safeguards on an as required basis. Adequate resources have been
built into the Implementation Support Plan for these activities.
Stakeholder, Sector and Multi-sector and Governance
138. All the identified risks related to “Stakeholder”, “Sector and Multi-sector” and Governance
are focused on the ownership, commitments and coordination among government agencies. The
team will help the client to create better awareness, communication and consultation of project
and also use the Bank convening power to coordinate with other donors and government
agencies to help the project implementation. This requires the timely supports from the Bank site
office team members. Also the team will also help the client to address the issue through TA and
capacity building components.
44
Fraud and Corruption
139. The team will monitor and supervise the procurement package to help the client to make
proper packaging to maximize participation by more competent consultants and contractors. On
the other hands, the business / service standards will frequently supervised by the team and the
client will set up proper complaint handling mechanism under the help of the team.
140. Procurement will involve multiple simultaneous contracts, thereby adding to the
complexity of the procurement process. All Bank-funded contracts will be reviewed, supervised
and monitored by the Bank-assigned procurement specialist on a regular basis, per the project
procurement arrangements, which are based on the implementing agency procurement capacity
assessment and Bank procurement guidelines. Implementing agency procurement capacity will
also be strengthened with the progress of the project.
Project Design
141. The Bank team has sufficient capacity on civil engineering and procurement in site office.
This enables the timely “trouble-shooting” or supervision for design quality and bidding. Given
the traffic management and road safety is an important element in both road components and
capacity building element, the Bank team needs to strengthen the capacity both at site office to
provide “trouble-shooting” solutions and from international experts. This is also the major
element in relation to Bank added value.
142. Similarly, some “soft” elements, like studies and training are relatively “small” in monetary
value, compared with major road investments in the project, but are important elements in
relation to Bank’s added value and sustainable development agenda, as well as a key contributor
to the full achievement of the PDO.
143. The Bank will mobilize international and domestic experts to assist KM with the
implementation of project. In addition, Bank team will provide training and capacity building
(including organizing KM’s learning activities to learn from experience of other more advanced
but comparable cities) to help the KUTEI Team as well as KM to develop necessary technical
knowledge/skills for preparation and implementation.
Social and Environmental Safeguards
144. Implementation of the ESMP, ESMF, ESIA (if any) and RAP (if any) will be closely
supervised by the KUTEI Team and Design Review and Site Supervision engineers, and
communities are also motivated to join external monitoring during project implementation. The
IDA’s Team will periodically carry out field supervision and provide safeguard training and
guidance to the KUTEI Team. Adequate resources will be allocated to ESMP/ESMF/RAP/ESIA
preparation and monitoring.
Delivery Monitoring and Sustainability
145. Project outcomes may not be sustainable due to inadequate financial and human resources
in KM to maintain and operate the facilities and equipment developed under the project. The
Bank will support the city to address these issues through the Components A2 (enhancement
45
measures to improve the municipality transport service delivery) and B Capacity building and
project management supports during project implementation.
Implementation Support Plan
Table 4: Primary Focus of Implementation Support
Time
Focus
Skills Needed
First 12
months





 Technical
 FM
 Procurement
12-60
months
 Project implementation
and supervision
 FM & Procurement
 M&E
Project design
FM & Disbursement
Procurement
Capacity building
Stakeholder and Sector
coordination,
and
Governance




Technical
Safeguards
FM
Procurement
Resource
Estimate
5-6
site
staffs,
6
days
per
month;
plus 3 – 4
trips for
international
experts
5 – 6 site
staff, 4 days
month;
Plus 2 -3
trips
for
each
international
experts each
year
Partner Role
 Detailed design
 FM & Procurement
 NCB
Contract
management;
 ICB bidding
 FM & Procurement
 Implementation
 Supervision
Table 5: Skills Mix Required
Number of Number
Staff Weeks of Trips
Technical
(transport 122 weeks
10 (HQ
planning, engineering,
staffs
economics)
only)
Skills Needed
Comments
Safeguard policy
4.5 site staffs: on time supports 6
days/month for 1st year and 4 days/month
for the other, plus every year 2 supervision
missions 2 weeks each;
3 HQ staffs: every year 2 supervision
missions 2 weeks each.
2.2 staffs: On time supports, 4 days per
44 weeks
0
46
FM policy
20 weeks
0
Procurement policy
26 weeks
0
month, plus 2 supervision
2weeks each
1 staff: On time supports, 4
month, plus 2 supervision
2weeks each
1.3 staffs: On time supports, 4
month, plus 2 supervision
2weeks each
missions,
days per
missions,
days per
missions,
146. Location of Staff Expertise. Team leadership, road engineering, safeguards, financial
management and procurement contribution will be provided by country office-based staff; while
transport planning, public transport, traffic management and road safety, natural disaster,
sustainable drainage, and institution development expertise will be provided by both
headquarters-based staffs and international consultants.
47
Project Maps
AFGHANISTAN: Kabul Urban Transport Efficiency Improvement
Figure A8- 1 Project Corridors
i)
Corridor 1 (C1): Khair Khana - Kabul Polytechnic University - Old Palace, which the Bank
is responsible for pavement overlay/traffic management of the section of “Charahi
Polytechnic to Koti- Sangi section”)
ii) Corridor 2 (C2): Khair Khana – Airport – Macrorayan – Jalalabad Road, which the Bank is
responsible for 3 or 4 links14 in Macrorayan area, between Airport Road to Jalalabad Road;
iii) Corridor 3 (C3):Nandare (including Kabul Nandare Area) – Southeast, and
iv) Corridor 4 (C4): Khair Khana – Shah-r-Naw, which the Bank will extend the KURIP roads
to Khair Khana Area.
14
The new link between Airport Roundabout and Jalalabad Road is yet to be determined with the KM.
48
Figure A8 -3 KUTEI Project Roads and Construction Plan
49
50