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1 ASIAN DEVELOPMENT BANK PROJECT ADMINISTRATION MEMORANDUM FOR THE JFPR GRANT ASSISTANCE TO THE LAO PEOPLE S DEMOCRATIC REPUBLIC FOR COMMUNITY ACTION FOR PREVENTING HIV/AIDS 1/ (JFPR: REG-9006) DRAFT 29 OCTOBER / The Project also includes Cambodia and Viet Nam.
2 PROJECT ADMINISTRATION MEMORANDUM 1. This Project Administration Memorandum (PAM) should be read along with the Grant Assistance Paper (JFPR Paper) and JFPR Agreement. The purposes of this PAM are to: provide sufficient detail on major aspects of project implementation in a concise, easily understandable and accurate manner specify the roles and responsibilities of the Executing Agency Implementing Agency the consultants, and ADB in undertaking the various actions required for satisfactory implementation of the JFPR Project assist ADB s project administration staff in anticipating problems and initiating remedial actions/recommendations in a timely manner provide a framework and checklist for monitoring progress to allow remedial actions and/or mid-stream modifications, if required, for the attainment of project objectives facilitate systematic monitoring of project objectives and assessment of impacts on project beneficiaries through surveys, studies, and periodic and midterm reviews 2. In case of discrepancies between the PAM, JFPR Grant Assistance Paper and the JFPR Agreement, the JFPR Agreement will prevail. 3. This PAM incorporates agreements reached between AWEH, the Executing Agency and the Implementing Agencies as of 29 October 2001.
3 (i) CONTACT PERSONS AND ADDRESSES A. ADB 4. The Department responsible for the implementation of the Project is the Agriculture and Social Sectors Department (West) represented by the Education, Health and Population (West) Division (AWEH). AWEH has the overall responsibility for the implementation of the Project in the Bank. Manager, AWEH : Edward M. Haugh, Jr. Sr. Project Economist : Indu Bhushan (directly supervises the Tel no: (632) implementation of the Project) ibhushan@adb.org Counsel : Motoo Noguchi Control Officer : Li-Chun Hung Sr. Programs Officer : Toru Tatara ttatara@adb.org Asst. Project Analyst : Bernadine B. Racoma Tel. no: (632) bracoma@adb.org Address : Asian Development Bank P.O. Box Manila, Philippines Facsimile : (632) (direct to AWEH) (632) (ADB s main fax) Telephone : (632) ADB Websites Main: Project Status: Consulting Services: Disbursements:
4 (ii) B. EXECUTING AND IMPLEMENTING AGENCIES 5. The Executing Agency will have the overall responsibility for coordinating and monitoring the Project and arranging audit. 6. The national IA shall be responsible for the day-to-day implementation and for: detailed project planning, scheduling and implementation procurement and contract administration recruitment and supervision of domestic consultants disbursement of funds, including timely submission of withdrawal applications preparation of semi-annual progress reports 7. Executing Agency (EA) and national Implementing Agency (IA) are: EA: Ministry of Health (through the Project Management Office of the Primary Health Care Expansion Project (Loan 1749-LAO(SF)) National IA: National Committee on Control of AIDS in the Lao PDR 8. The EAs and national IAs in the other two countries are: Cambodia EA: Ministry of Health (through the Project Coordination Unit of Basic Health Services Project (Loan 1447-CAM(SF)) National IA: National Center for HIV/AIDS, Dermatology, and STD Control Viet Nam EA: National Committee for Population and Family Planning National IA: AIDS Division of the Ministry of Health 9. Provincial AIDS agencies, and selected NGOs will be the Implementing Agencies (IAs). Contact persons in EAs and IAs: EA: Dr. Prasongsidh C. Boupha Director, Primary Health Care Expansion Project Tel. No.: Fax No.: National IA: Dr. Chansy Phimphachanh Director, National Committee for Control of AIDS Bureau Tel. No.: Fax No.:
5 (iii) 10. The contact persons in the EAs and national IAs in the other two countries are: Cambodia EA: H.E. Dr. Mam Bun Heng Secretary of State for Health Ministry of Health Phnom Penh, Cambodia Fax No.: Dr. Char Meng Chuor Project Manager, PCU (Basic Health Services Project) Fax No.: Tel. No.: National IA: Dr. Mean Chhi Vun Director National Center for HIV/AIDS, Dermatology and STD Control Telefax No.: Viet Nam EA: Dr. Ngo Khang Cuong Project Director Population and Family Health Project Tel. No.: Fax No.: D. CONSULTANT National IA: Dr. Nguyen Than Long AIDS Division of the Ministry of Health Tel. No.: or Fax No.: The Chief technical Advisor, based in Cambodia, will (i) provide support to all three countries for planning, implementing, and monitoring the Project; (ii) work closely with the three EAs and all IAs and help them conceptualize the overall Project framework; and (iii) directly supervise and guide the work of the domestic consultants, and be responsible for the collective work of the team. Mr. Peter Godwin National Center for HIV/AIDS, Dermtatology & STD #170 Sihanouk Blvd., Phnom Penh Fax No.:
6 (iv) E. EXCHANGE OF COMMUNICATION 12. All official letters/correspondence/fax messages, etc., arrangements for audit must be signed by and addressed to F. CLOSING DATE: Dr. Prasongsidh C. Boupha Director, Primary Health Care Expansion Project Mr. Edward M., Haugh, Jr. Manager, AWEH Closing Date 1 31 December 2003 F. REFERENCE MATERIALS 1. Handbook on Management of Project Implementation (green), Guidelines for Procurement under ADB Loans, blue, February Procurement of Goods, Works and Services under Projects Financed by the ADB (light yellow), 1 March Handbook on Policies, Practices and Procedures Relating to Procurement under ADB Loans, orange, CPSO, revised February Handbook on Problems in Procurement for Projects Financed by the ADB, blue/yellow, CPSO, reprinted October Guide on Bid Evaluation, CPSO, peach, June Guide on Prequalification of Civil Works Contractors, cream 8. Guidelines on the Use of Consultants by ADB and its Borrowers, green, October Loan Disbursement Handbook, blue, January Handbook for Users of Consulting Services, yellow, Anticorruption Policy dated 11 June ADB s Policy on Cooperation with NGOs, orange, April This date will be the closing date for withdrawals from the JFPR account. Goods must have been delivered and services rendered on or before this date to be eligible for payment by ADB. No payments from the JFPR Grant can be made after the closing date. However, when there is no formal request for extension of the closing date, the JFPR account may still be kept open for a period of three months beyond the closing date in order to complete disbursement of outstanding contracts under the JFPR Project. This would also allow the EAs and IAs time to collect and submit documentation and invoices pertaining to expenditures incurred before the closing date.
7 CONTENTS Page CONTACT PERSONS AND ADDRESSES REFERENCE MATERIALS (i) (iv) I. PROJECT DESCRIPTION A. Objectives 1 B. Project Area 1 C. Scope 1. Community-Based HIV Prevention Activities 2 2. Capacity Building 3 3. Project Coordination and Monitoring 3 D. Costs and Financing 4 II. IMPLEMENTATION ARRANGEMENTS A. Executing and Implementing Agencies 4 B. Fund Flows and Disbursement Procedures 1. Imprest Account 5 2. Statement of Expenditures 5 3. Accounts and Audit 6 C. Procurement and Consulting Services 6 III. PERFORMANCE MONITORING 7 IV. REPORTING 7 V. JFPR AGREEMENT 8 ANNEXES 9
8 I. PROJECT DESCRIPTION A. Objectives 1. The goal of the Project is to reduce HIV transmission among mobile groups of people, migrants, and source and host communities in the three countries in order to decrease the impact of the HIV epidemic in the region. It will fund community-based activities in areas that send or receive a significant number of migrants and have a relatively high prevalence of HIV/AIDS. The Project's objectives are to support a comprehensive set of HIV/AIDS prevention activities in strategically important areas (also referred to as hot spots) for the transmission of HIV in the region; and to strengthen the capacity of national and local HIV authorities and selected NGOs to develop community-based prevention and care programs. B. Project Area 2. While a few activities will be implemented nationally, the Project will primarily support community-based HIV/AIDS prevention activities in the following provinces: Khamoune Oudomxay Savannakhet 3. Project provinces in the other two countries are as follows: Cambodia Battambang Koh Kong Prey Veng Svay Rieng Viet Nam An Giang Dong Thap Kien Giang Lai Cau Quang Tri 4. Within these provinces, the Project will focus on: sites and areas that receive many transient mobile populations or long-term migrants large construction sites source communities of migrants.
9 2 C. Scope 5. The Project will have the following three components: 1. Community-Based HIV Prevention Activities 6. The Project will aim to provide a comprehensive set of activities that can effectively prevent the transmission of HIV/AIDS in the project area. Provincial AIDS authorities and offices will be involved in planning and implementing all activities. The following community-based activities will be implemented: behavior change communication activities for host communities and mobile populations condom promotion using social marketing care and management of sexually transmitted infection (STI). 7. Behavior Change Communication. Since an affordable cure for HIV infection is unavailable, prevention is the most cost-effective strategy, even in countries with generalized epidemics such as Cambodia. The Project will work through communities to provide information about HIV prevention to mobile people, migrants, and their host communities to change social norms and behaviors to reduce vulnerability to HIV infection. In each country, the Project will: identify high priority areas develop a strategy specific to local needs in a participatory manner organize community action continuously refine the strategy based on the experience, and modify the activities 8. The Project will support communication programs aimed at the following groups: hospitality service providers, such as beer girls, karaoke singers, and masseuses brothel-based sex workers freelance sex workers mobile male populations such as construction workers, truck drivers, and seafarers men in uniform the general population. 9. In some provinces, women employed in industries, such garment and electronics, may also form a separate focus. Since these different groups have different communication needs and are linked with different communication channels, a distinct communication strategy will be required for each group. The Project will use existing channels and infrastructure to reach these groups. For example, usually health facilities are located near construction sites to provide basic and emergency health care to construction workers. These facilities will be strengthened through training, and provision of behavior change communication materials and condoms for distribution. Peer education will be used for hard-to-reach groups. 10. Condom Promotion. The Project will use social marketing to promote condom use. This process applies commercial marketing skills and techniques to the marketing of socially desirable products for the social good through nongovernment, for-profit channels. The social marketing of condoms will not replace the existing free distribution, but will be done in addition to it. The social marketing will:
10 3 generate demand for condoms by using modern marketing techniques to raise brand awareness increase the availability of condoms through commercial channels such as grocery shops, pharmacies, tea shops, beer outlets, hotels, and restaurants. 11. Transport hot spots and construction sites will receive special attention. Several forms of outlets for condom sales and free distribution will be developed in each community. As condom social marketing can only be effectively implemented through nongovernment channels, condom social marketing organizations will be contracted to such NGOs. 12. Care and Management of Sexually Transmitted Infections. Since early detection and treatment of STIs can substantially reduce the incidence of HIV transmission, the Project will support community-based activities to encourage symptomatic STI care. Facilities for STI diagnosis and treatment need strengthening in terms of provider skills and equipment. Also, demand must be strengthened and social barriers to using STI services reduced. The Project will build bridges between vulnerable communities and user-friendly STI care services and will strengthen health facilities providing these services. The Project will strengthen laboratory services, treatment facilities, and training of health workers. 13. The Project will give due attention to STI care for men. The diagnosis and treatment of STIs is relatively easy and effective and uses a syndromic approach. However, since men are reluctant to access public sector STI services, the Project will involve private pharmacies, and work with vulnerable groups such as police and military personnel to provide STI care. Although the development of public sector facilities is a priority, private-sector service delivery points will also be employed. 2. Capacity Building 14. The Project will support the following four capacity building activities: development of models for AIDS care in Lao PDR that can be adapted for use in the other two countries support for behavioral sentinel surveillance for second generation HIV surveillance in all three countries 2 training of teachers and other community workers on HIV/AIDS prevention and control advocacy with policymakers and facilitation of the learning of lessons from the Thailand experience 3. Project Coordination and Monitoring 15. A team will support the implementation and monitoring of the Project. It will comprise; an international consultant chief technical adviser for 24 months, based in Cambodia) a team of consultants in community-based behavior change communication (an international consultant and a domestic consultant for 12 person-months each in each country 2 Behavioral surveillance, also called second generation surveillance, refers to a population-based assessment of knowledge, attitude, and behavior related to HIV risk factors.
11 4 a team of consultants for sexually transmitted infection case management training (an international consultant for 9 person-months and a domestic consultant for 12 person-months in each country three domestic consultants (one in each country) 16. Outline terms of reference for the consultants are in Appendix 3 of the JFPR Grant Assistance Paper (Annex 1). Some basic office equipment and an accountant will be provided to the national IA to support project implementation. A regional NGO will be engaged to undertake a baseline survey and a final survey to evaluate the impact of the Project. 17. The Project will be implemented over 30 months starting in June 2001 and ending in December An overview of the project activities and scheduling is in Appendix 4 of the JFPR Grant Assistance Paper (Annex 1). D. Costs and Financing 18. The Project is estimated to cost $10 million equivalent. ADB will finance $8 million equivalent on a grant basis from the JFPR, funded by the Government of Japan. The three governments through the following ongoing health projects will finance $2 million equivalent for project management and infrastructure development. Loan 1447-CAM(SF): Basic Health Services Project Loan 1749-LAO(SF): Primary Health Care Expansion Project Loan 1460-VIE(SF): Population and Family Health Project 19. Appendix 5 of the JFPR Grant Assistance Paper (Annex 1) provides an overview of the costs and financing. II. IMPLEMENTATION ARRANGEMENTS A. Executing and Implementing Agencies 20. The Executing Agency (EA) and national Implementing Agency (IA) are: EA: Ministry of Health (through the Project Management Office of the Primary Health Care Expansion Project (Loan 1749-LAO(SF) National IA: National Committee for the Control of AIDS Bureau 21. Provincial AIDS authorities and selected NGOs will be the Implementing Agencies (IAs). Roles and responsibilities of the EA and national IA are as follows: 22. The EA will be responsible for the overall coordination of the Project, including the following: coordination with other ministries and agencies, including ADB approval of annual plans and disbursement plans (Steering Committee) review of withdrawal applications for imprest account
12 5 ensuring compliance of government and ADB rules for procurement and disbursement organizing annual audits 23. The national IA shall be responsible for the day-to-day implementation and for: detailed project planning and management procurement and contract administration recruitment and supervision of domestic consultants preparation of the disbursement plans disbursement of funds, including timely submission of withdrawal applications to the EA preparation of semi-annual progress reports B. Fund Flows and Disbursement Procedures 1. Imprest Account 24. To expedite project implementation through the timely release of funds for eligible country-level expenditures, imprest accounts will be established with the Ministry of Finance. The imprest accounts will be established, operated and liquidated following detailed arrangements and actions agreed upon by the Government and ADB in accordance with ADB s Loan Disbursement Handbook dated January The amount of advance will depend upon the work plan developed by the national IA. The IAs will also maintain a subaccount and will receive advances from the national IA based on a written agreement on the use of funds, reporting, and auditing. The advances to IAs will not exceed $20,000. Statements of expenditure (SOEs) by IAs will be used by the national IA to liquidate and replenish the advance. Any unused balance will be refunded to ADB before the close of the Project. 25. Replenishments will be subject to the liquidation of expenditures. The accounts should, therefore, be liquidated and then replenished on a regular basis to ensure sufficient funds are always available in the account. The amount of any withdrawal application submitted to ADB for liquidation should not be less than $20,000 equivalent. All withdrawal applications will be carefully monitored and will be approved by the EA (Project Director of the Primary Health Care Expansion Project). Replenishment of the imprest account will be done through separate withdrawal applications with attached estimate of operating expenses for the following months, based on the level of fund liquidation for the preceding period. The designated commercial bank will provide monthly statement of imprest account to the EA and the national IA, who will claim liquidation on the basis of the statement and other supporting documents. 26. A summary of disbursement procedures is given in Annex 2 and procedures for the maintenance and operation of the imprest account in Annex 3., 2. Statement of Expenditures 27. Statement of expenditure (SOE) procedures will be permitted for reimbursement of funds utilized for eligible expenditures under the Project and the liquidation of advances for payment from the imprest account, in accordance with ADB s Handbook for Disbursement. In this procedure, an application for reimbursement or liquidation by the national IA is supported by a summary of expenditures, in lieu of the normal full documentation, which includes a certification of that the goods, works and services have been paid for the proper execution of project
13 6 activities within the terms and conditions of JFPR agreement and that the supporting documents are available for inspection by ADB. The individual payment that may be liquidated under the SOE procedure shall not exceed $20,000 for each item of expenditure. The national IA must maintain full records of all project expenditures which support the various applications to ADB and these will be available for future audit by independent auditors. Sample forms for SOE procedures are given in Annex Accounts and Audit 28. The use of the JFPR account and SOE should be audited annually for each country by auditors acceptable to ADB, and a separate audit opinion on the use of the JFPR account and SOE should be included in the audit reports. All IAs will submit documentation supporting the expenditure to the national IA, which will maintain records of all such documentation for ADB s verification. Audit will be organized and supervised by the EA. Accounts will be established and maintained in accordance with the generally accepted accounting principles and following the Financial Guidelines of the Ministry of Finance. The audited reports and related financial statements will be submitted to ADB not later than nine months after the end of the fiscal years to which they relate. Audits will be done at the end of FYs 2002 and For the baseline survey and final survey under the third component, funds will be channeled from ADB directly to the regional NGOs and consultants. 29. The audit report should contain certified copies of audited accounts and financial statements and the report of the auditors relating to these -- including their opinion on the use of the JFPR Funds as well as on the use of the procedures for imprest account and statement of expenditures--in English language. A sample form of auditor s opinion is in Annex 5. C. Procurement and Consulting Services 30. Any procurement under the Project will be conducted by the national IA and IAs in accordance with ADB s Guidelines for Procurement. A checklist for procurement using international shopping is at Annex 6. Small or off-the-shelf items generally valued at less than $100,000 may be procured using direct purchase procedures. Contracts for goods and services in the amount of $50,000 and above will need to be approved by ADB. NGOs to implement certain activities of the Project such as social marketing, monitoring and evaluation, behavior change communication, and behavioral surveillance will be selected and engaged by the EA in accordance with arrangements satisfactory to ADB. In some cases (for example, social marketing of condoms), direct selection procedures may be applied. Direct selection may be justified in cases where one qualified agency is available to undertake a particular activity. However, prior to application of direct selection procedures, ADB s Central Operations Services Office and the concerned division will certify that all other sources of competitive expertise have been reviewed and found unsuitable. 31. The EA and national IA will develop guidelines for administrative and financial authority for approval of various expenditures and rates for per diems, for approval of the Steering Committee. 32. The following consultants will be recruited in accordance with ADB s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants. an international consultant chief technical adviser for 24 months, based in Cambodia) to be recruited by ADB
14 7 three domestic consultants (one in each country) a team of consultants in community-based behavior change communication (an international consultant to be recruited by ADB and a domestic consultant for 12 person-months each in each country) a team of consultants for sexually transmitted infection case management training (an international consultant for 9 person-months to be recruited by ADB and a domestic consultant for 12 person-months in each country) III. PERFORMANCE MONITORING 33. A list of objectively verifiable indicators was prepared to assess the impact of the Project (Appendix 7 of the JFPR Grant Assistance Paper in Annex 1). A baseline survey at the start of the Project and a final survey after project completion will be used to assess changes in these indicators. The national IA and ADB will organize the surveys and collect other data to establish baseline and target values of these indicators. 34. A detailed midterm review of the Project will take place after one-and-a-half years of implementation; midcourse corrections will be made as required. The midterm review will: review the original project scope, design, implementation arrangements, and other relevant issues in the light of the Government s development strategies and policy framework, and strategic concerns of ADB, including any modifications, if needed examine progress toward achieving measurable objectives of the Project and agree on changes in the project design and implementation assess compliance with the JFPR Agreement identify problems and constraints formulate appropriate recommendations for corrective actions develop a revised project implementation schedule for effective implementation of the Project IV. REPORTING 35. The national IA will submit semi-annual reports to ADB on physical and financial progress of the Project, with copies to the EA. The reports will be in a format acceptable to ADB and will indicate, among other things, the following: actual accomplishment of work, for each project component during the reporting period against the agreed plan the expenditures incurred for the Project and disbursements made from the proceeds of the JFPR Grant actual or potential deviations from the plans or schedules and the reasons problem analysis, including circumstances that could affect costs or schedules (e.g. reasons for delays in procurement, consultant recruitment, disbursement, staffing assignments, etc.) status of compliance with the JFPR Agreement financial position of the Project actions required, by whom and when, for next reporting period proposed schedule of activities for next reporting period
15 8 36. A reporting format is shown in Annex 7. V. JFPR AGREEMENT 37. The Government shall carry out the JFPR Project with due diligence and efficiency, and shall cause the JFPR Project to be carried out by the EA and IAs in accordance with the arrangements described in the JFPR Agreements, shown in Annex 8.
16 9 ANNEXES Number Title Cited on (page, para.) 1 JFPR Grant Assistance Paper 4, 15 4, 16 4, 17 7, 31 2 Disbursement Procedures 5, 24 3 Procedures for the Maintenance of Imprest Account 5, 24 4 Sample Forms for SOE Procedures 6, 25 5 Sample Auditor s Opinion 6, 27 6 Checklist for Procurement 6, 28 7 Sample Format of Progress Report 8, 34 8 JFPR Agreement 8, 35
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