Regional: Supporting the Cities Development Initiative for Asia

Transcription

1 Technical Assistance Report Project Number: Regional Capacity Development Technical Assistance (R-CDTA) November 2013 Regional: Supporting the Cities Development Initiative for Asia (Cofinanced by the Government of Sweden, Government of Austria, and the Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility) The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

2 CURRENCY EQUIVALENTS (as of 25 October 2013) Currency unit Swedish krona (SKr) SKr1.00 = $0.16 $1.00 = SKr6.35 ABBREVIATIONS ADB Asian Development Bank CDIA Cities Development Initiative for Asia DMC developing member country PPP public private partnership SBP strategy and business plan TA technical assistance TECHNICAL ASSISTANCE CLASSIFICATION Type Regional capacity development technical assistance (R-CDTA) Targeting General intervention classification Sector (subsectors) Multisector (urban sector development, water supply and sanitation, waste management, urban transport) Themes Economic growth, environmental sustainability, private sector development, capacity development Climate change Urban environmental improvement, climate change mitigation and adaptation Location (impact) Urban (high), regional and national (medium), rural (low) Partnerships Governments of Austria, and Government of Sweden, Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility NOTE In this report, "$" refers to US dollars. Vice-President Director General Director Team leader Team member B. Lohani, Knowledge Management and Sustainable Development W. Um, Officer-in-Charge, Regional and Sustainable Development Department (RSDD) G. Kim, Sustainable Infrastructure Division, RSDD S. Sampath, Principal Urban Development Specialist, RSDD A. Vogl, Urban Development Specialist, RSDD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 CONTENTS Page I. INTRODUCTION 1 II. ISSUES 1 III. THE PROPOSED TECHNICAL ASSISTANCE 2 A. Impact and Outcome 2 B. Methodology and Key Activities 2 C. Cost and Financing 3 D. Implementation Arrangements 4 IV. THE PRESIDENT'S RECOMMENDATION 5 APPENDIXES 1. Design and Monitoring Framework 6 2. Cost Estimates and Financing Plan 9 3. Outline Terms of Reference for Consultants 11

4

5 I. INTRODUCTION 1. The Cities Development Initiative for Asia (CDIA) was established in February 2007 as a joint initiative of the Asian Development Bank (ADB); the governments of Austria, Germany, Spain, Sweden, and Switzerland; the Nordic Development Fund; and the Shanghai Municipal Government; with additional funding from KfW. 1 This technical assistance (TA) will channel development partners funds to support the implementation of the CDIA Strategy and Business Plan (SBP), to enable it to expand its support to cities in undertaking urban infrastructure development focusing on pro-poor and environmentally sustainable projects. 2 The framework is provided in Appendix The proposed regional capacity development TA aims to attract about $ million in development partners funding for CDIA activities. The contributions will come from the governments of Austria and Sweden, the Department for International Development of the United Kingdom, and the Rockefeller Foundation (through the Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility [UFPF]). 4 Additional funding to support CDIA activities from current and other development partners is also anticipated. II. ISSUES 3. It is estimated that by 2050, over 66% of Asia s population would be living in urban areas. 5 Overall, the rate of urban growth will be more than double the rate of national average population growth across all of Asia. To respond to the needs of its developing member countries (DMCs), ADB must help them maximize the development opportunities arising from urbanization while addressing the escalating negative social and environmental impacts. Underserviced urban growth often leads to congestion, pollution, and a decline in environmental quality. Nearly one-third of the region s urban poor lack access to safe water; almost half do not have adequate sanitation services; and about the same proportion live in dangerous environments. It is estimated that at least 900 million urban dwellers living in low- and middleincome countries will be at risk from the direct and indirect impacts of climate change over the next 5 10 years. These challenges make urban development increasingly difficult for many DMCs to manage At the apex of the Cities Development Initiative for Asia (CDIA) governance structure is the multidonor CDIA Program Review Committee, which is its governing body. The day-to-day operations are led by a management team that includes program coordinators from ADB and GIZ. The CDIA SBP builds upon the experience gained in the first 5 years of CDIA operations, incorporates input from an external midterm review mission (October 2011), and benefits from the reflections of CDIA s program review committee on this experience. The key focus of the SBP includes (i) strengthening service delivery processes to cities to bridge the capacity gap by working with partner organizations (national and regional) to support cities in preparing infrastructure investment projects; (ii) strengthening the link to finance to bridge the planning financing gap by enhancing city capacities to access finance for sustainable urban infrastructure projects; and (iii) strengthening the CDIA as a catalyst for innovation to bridge the institutional gap by providing knowledge and innovation support for sustainable urban infrastructure investment to stakeholders. The TA first appeared in the business opportunities section of ADB s website on 31 October Urban Financing Partnership Facility (UFPF) was approved by the Board (i) to establish the Urban Infrastructure Fund (UIF), a multi-donor fund to support technical assistance (TA), grant components of investment projects, and any other activities that may be agreed upon between financing partners and ADB; (ii) establish bilateral urban infrastructure trust funds substantially upon the terms and conditions of this paper; and (iii) accept and administer contributions by bilateral, multilateral, and individual sources to the UIF and urban infrastructure trust funds. United Nations Human Settlements Programme (UN-Habitat) State of the World's Cities 2010/2011 Bridging the Urban Divide. London: Earthscan. p. 5.

6 2 4. ADB s Strategy 2020 sets the goal of making Asia s cities livable. 6 The overall aim is to help DMCs establish a sustainable pattern of development that will enable people to satisfy their basic needs and enjoy a better quality of life without compromising the quality of life of future generations. ADB s Urban Operational Plan, seeks to define an effective and responsive approach to supporting cities in this role. 7 One of the main components of such an approach is for ADB to focus its interventions on specific urban regions, especially secondary cities, which have limited capacity but will come under proportionately greater population stress, and where ADB can have more impact and larger demonstration effects to foster systemic change toward sustainability.8 It has been projected that by 2015, nearly 60% of the total urban population will be living in secondary cities. 5. While urban planning has improved across the region, many cities in Asia and the Pacific lack the (i) resources to undertake adequate infrastructure investment financing and structuring, and prepare bankable projects; and (ii) institutional capacity to effectively manage the programming and prioritization of these strategic investments. Therefore there is a gap between cities strategic development plans that typically present a wish-list of projects, and the requirements of financiers for well-formulated infrastructure projects. Many city governments in the region also lack the necessary funding to deliver critical infrastructure to make them competitive. 6. With the emphasis on project preparation and linking proposed projects to finance, the CDIA is viewed as a key initiative that will help implement ADB s Urban Operational Plan, , together with the UFPF. III. THE PROPOSED TECHNICAL ASSISTANCE A. Impact and Outcome 7. The impact of the TA will be enhanced management of secondary cities in DMCs. The outcome will be improvement in operational support for management of cities in DMCs. B. Methodology and Key Activities 8. The CDIA is a flagship international partnership developed by ADB with financial support from development partners to help medium-sized cities in the Asia and Pacific region bridge the gap between their development plans and the implementation of their infrastructure investments. The CDIA uses a demand-driven approach to support the identification and development of urban infrastructure investment projects within the framework of existing city development plans that emphasize one or more of the following impact areas: (i) urban environmental improvement, (ii) urban poverty reduction, (iii) climate change mitigation and adaptation, and (iv) improved governance ADB Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, Manila. ADB Urban Operational Plan, Manila. Second-tier cities generally have populations of approximately 250,000 to 3,000,000. The preference for secondary cities does not preclude interventions in megacities where significant environmental and social issues need to be addressed, and where there is demonstrable commitment to effective, integrated approaches to implementation.

7 3 9. Since 2007, under ADB s leadership, the CDIA has become an international partnership through the Technical Assistance for Managing the Cities in Asia 9. This TA was originally approved in 2007 and has gone through scope changes to accommodate funding from development partners as well as from ADB s Technical Assistance Special Fund, ADB has raised almost $23.72 million for the CDIA since its inception 10. As of October 2013, 83 prefeasibility studies have been initiated for 55 Asian cities in 14 countries. 11 Of these, 58 prefeasibility studies have already been completed, of which 26 have been linked to a financial source for downstream project implementation The outputs of the proposed TA will be (i) project preparatory interventions in the form of prefeasibility studies with a view to attracting downstream financing in 50 cities; (ii) International good practices involving innovative financing approaches for sustainable urban development adopted in ADB urban operations; and (iii) strengthening of CDIA networking activities, in particular with national partner organizations. Subject to the demand from city governments and availability of appropriate partner institutions, efforts would be made to identify possible centers of excellence to promote sustainable urban development in the Asia and Pacific region. 11. Building on the achievement of Managing the Cities in Asia, this TA also aims to raise and deploy cofinancing from development partners to support the implementation of the CDIA SBP, This TA will be an umbrella operational arrangement to accommodate in an efficient manner development partners contributions, and enhance administrative coordination and efficiency. Because this TA is a funding channel for CDIA activities, any future increases in the amount for this TA will be processed through changes in scope, based on the established procedures to incorporate such increases in the TA budget. 12. The project design is based on the following assumptions: (i) DMC stakeholders and policy makers support improvement in the management of cities, (ii) better knowledge and policy dialogue translate into more effective management of cities, (iii) there is continued interest by financial institutions in funding urban infrastructure in Asia, (iv) there is effective engagement of some key regional and DMC resource people, and (v) CDIA program review committee members financial commitments toward the CDIA SBP are fulfilled on time. Potential risks relate to nonavailability of suitable experts and institutions for involvement in the analytical work. C. Cost and Financing 13. This TA is estimated to cost $14,084,000 of which (i) $7,084,000 will be financed on a grant basis by the Government of Sweden, (ii) $2,000,000 will be financed on a grant basis by ADB Technical Assistance for Managing the Cities in Asia. Manila (TA 6293-REG). Prior to the approval of the Swiss Government contribution to CDIA, about 97% of TA funds had been utilized. Following the Board approval (early September 2013) to receive Swiss Government funding to CDIA, and subsequent to receiving the first tranche of $2 million) from the Swiss Government (received on 18 October 2013), the utilization figures are at 86%. Bangladesh, Cambodia, the People s Republic of China, Fiji, India, Indonesia, the Lao People s Democratic Republic, Mongolia, Myanmar, Nepal, Pakistan, the Philippines, Thailand, and Viet Nam. Representative sample of successful prefeasibility studies include: Pakse, Laos Urban Environmental Project ($35 million investment) on solid waste management, green infrastructure, and sewerage/drainage system improvement which has been included in the ADB loan; Khulna (Bangladesh), Pro-Poor and Green Urban Transport ($14 million investment) which has been included in KfW financing; and Metro Iloilo-Guimaras, Philippines, CBD revitalization ($30 million investment) which is being implemented through a PPP arrangement.

8 4 the Government of Austria, (iii) $5,000,000 will be financed on a grant basis by the Urban Climate Change Resilience Trust Fund under the UFPF 13 and administered by ADB. 14. ADB has already held discussions with a number of development partners and anticipates that more funds from development partners may be available to finance CDIA activities in support of its SBP. It is expected that all such funds raised from the development partners will be administered by ADB. The cost estimates and financing plan is in Appendix Participating DMC governments will provide counterpart support in the form of equipment, office and housing accommodations, office supplies, secretarial assistance, domestic transport, resource persons, and other in-kind contributions. D. Implementation Arrangements 16. ADB will be the executing agency of this TA, which will start in November 2013 and end in December The TA will finance consulting services; workshops and training, including resource persons; report preparation and communications; miscellaneous administration and support costs; and equipment and surveys. Resource persons will be engaged on an individual basis. A multidisciplinary team of national and international experts, led by an international senior municipal or environmental engineering and urban infrastructure specialist or a project finance specialist, will be required to successfully execute the assignments. Consultants may be recruited on an individual basis or through firms, using quality- and cost-based selection, quality-based selection, or fixed budget selection methods with indefinite delivery contract assignment, as appropriate. 14 Key expertise will include waste and wastewater management, flood and drainage management, urban economics, transport planning, urban planning, water supply and sanitation, environment, climate change, social development, public financial management, infrastructure finance, public private partnerships (PPP), urban governance, organizational and institutional development, communications, and capacity development. All consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). Terms of reference for consultants are in Appendix 3. All procurement under the TA will be carried out in accordance with ADB s Procurement Guidelines (2013, as amended from time to time). 15 The TA will be disbursed in accordance with ADB s Technical Assistance Disbursement Handbook (2010, as amended from time to time). 17. The input of 370 person-months of international consultants is envisaged with the input of 584 person-months of national consultants. The international consultants the municipal or environmental engineering and urban infrastructure specialist (185 person-months), urban planner (55 person-months), and PPP specialists and financial analysts (130 person-months) will be responsible for providing the strategic and technical direction for the prefeasibility studies, quality assurance for the inputs, program management, and all key reporting related to the Contributors: the Government of the United Kingdom and the Rockefeller Foundation. This TA builds on an earlier regional TA, which obtained approval from the principal director of ADB s Operations Services and Financial Management Department on 11 February 2009 regarding the use of indefinite delivery contracts. The objective of the proposed indefinite delivery contracts is to streamline the process of consultant procurement, thereby improving the accountability of project teams while retaining the required flexibility and responsiveness of demand-driven CDIA operations. A procurement plan will be prepared and updated in accordance with ADB s guidelines. The plan will contain details of procurement; i.e., the number of contracts, procurement methods, estimated contract values, and threshold amounts. To decide on the most economical ways to procure the contracts, the Regional and Sustainable Development Department will consult ADB s Office of Administrative Services, which will procure the contracts for the projects as part of ADB s institutional procurement contract.

9 5 CDIA. They will coordinate closely with the DMCs, ensuring that key institutions and civil society are at all times engaged in the process of the prefeasibility studies development. 18. The national consultants urban and infrastructure national specialists (40 consultants, 584 person-months) will provide high-quality assistance and inputs for the international consultants, backed, where needed, by strong data analysis. The national consultants will support the activities of international consultants in the field, reviewing documents and literature, collecting data and information, and performing research and analysis (both quantitative and qualitative). The national consultants will coordinate with governments, other donors, and other ADB projects as needed. As additional development partner funding is secured for this TA, the person-months will be increased accordingly. IV. THE PRESIDENT'S RECOMMENDATION 19. The President recommends that the Board approve (i) ADB administering technical assistance not exceeding the equivalent of $7,084,000 to be financed on a grant basis by the Government of Sweden, (ii) ADB administering technical assistance not exceeding the equivalent of $2,000,000 to be financed on a grant basis by the Government of Austria, and (iii) ADB administering technical assistance not exceeding the equivalent of $5,000,000 to be financed on a grant basis by the Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility, for Supporting the Cities Development Initiative for Asia.

10 6 Appendix 1 DESIGN AND MONITORING FRAMEWORK Design Summary Impact Enhanced management of secondary cities in DMCs Performance Targets and Indicators with Baselines Infrastructure, service delivery, and environmental parameters in DMC cities, along with financial management of municipalities, supported in most of the 50 cities supported by the CDIA Data Sources and Reporting Mechanisms Urban and sector or thematic reports of DMC governments and international organizations Regional progress on the Millennium Development Goals Assumptions and Risks Assumptions DMC stakeholders and policy makers support improvement in the management of cities. Better knowledge and policy dialogue translate into more effective management of cities. Outcome Improvement in operational support for management of cities in DMCs Outputs 1. Project preparatory interventions in the form of prefeasibility studies with a view to attracting downstream financing in 50 cities 2. International good practices involving innovative financing approaches for sustainable urban development adopted in ADB urban operations Project prefeasibility studies preparation by cities with CDIA intervention improved by 2017 Link to ADB operations related to management and development of cities improved, and demonstrated through the linking of at least 10 projects to ADB downstream financing by 2017 Prefeasibility project reports for 50 cities. Achievement of milestones as per the agreement between the city and CDIA CDIA to work with an additional 50 cities by 2017, including on infrastructure investment prioritization and prefeasibility studies for inclusive and sustainable urban development Documentation of lessons from urban infrastructure planning and prioritization, project prefeasibility Assessment of prefeasibility studies outputs by funders and consequent funding commitments CPS and DMC feedback received through various formal and informal channels Project processing information systems and CPS Periodic progress reports provided to the task force Communications from related external experts and institutions Assumptions There is continued interest by financial institutions in funding Asian urban infrastructure. There is effective engagement of some key regional and DMC resource people. Risks Suitable experts and institutions are not available for involvement in this analytical work. CDIA program review committee members financial commitments toward the CDIA SBP are fulfilled on time.

11 Appendix 1 7 Design Summary Performance Targets and Indicators with Baselines studies, innovative financing, and private sector participation and dissemination through workshops, knowledge partnership, and operational application Data Sources and Reporting Mechanisms Assumptions and Risks 3. Strengthening of CDIA networking activities, in particular with national partner organizations Increased number and extent of involvement of related national and regional experts and institutions in the projects developed by the CDIA Activities with Milestones 1.1 Preparation of the detailed outline of the work plan and engagement of managing consultants (December 2013) 1.2 Fieldwork in project preparation (March 2014) 1.3 Knowledge development and capacity building activities (October 2014) 2.1 Review of activities 2.2 Structuring reports for projects capable of being financed (initial reports for selected cities by December 2014) 3.1 Capacity development activities (initial reports for selected cities by December 2014) 3.2 Strengthening of CDIA networking activities (ongoing) Inputs Government of Sweden: $7.084 million (SKr 45.0 million) Amount ($ 000) Item International consultants 3,000 National consultants 1,300 International and national travel 830 Reports and communications 136 Equipment 192 Workshops, training, seminars, conferences and training programs (i) Facilitator (ii) Training program External audit 80 Surveys 90 Miscellaneous administration and support costs 120 Contingencies 1,000

12 8 Appendix 1 Government of Austria: $2.0 million Amount ($ 000) Item International consultants 1,000 National consultants 350 International and national travel 100 Reports and communications 50 Equipment 130 Workshops, training, seminars, conferences, and training programs (i) Facilitator (ii) Training program Surveys 20 Miscellaneous administration and support costs 50 Contingencies 200 Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility: $5.0 million Amount ($ 000) Item International consultants 2,700 National consultants 800 International and national travel 400 Reports and communications 60 Equipment 100 Workshops, training, seminars, conferences, and training programs (i) Facilitator (ii) Training program Surveys 40 Miscellaneous administration and support costs 100 Contingencies 650 ADB = Asian Development Bank, CDIA = Cities Development Initiative for Asia, CPS = country partnership strategy, DMC = developing member country. Source: Asian Development Bank

13 Appendix 2 9 COST ESTIMATES AND FINANCING PLAN ($'000) Item Amount a A. Government of Sweden b 1. Consultants a. Remuneration and per diem i. International consultants 3,000.0 ii. National consultants 1,300.0 b. International and local travel c. Reports and communications Equipment Training, seminars, and conferences a. Facilitators b. Training program 4. External audit c Surveys Miscellaneous administration and support costs Contingencies 1,000.0 Subtotal (A) 7,084.0 B. Government of Austria b 1. Consultants a. Remuneration and per diem i. International consultants 1,000.0 ii. National consultants b. International and local travel c. Reports and communications Equipment Training, seminars, and conferences a. Facilitators 75.0 b. Training program Surveys Miscellaneous administration and support costs Contingencies Subtotal (B) 2,000.0 C. Urban Climate Change Resilience Trust Fund under the Urban Partnership Facility d 1. Consultants a. Remuneration and per diem i. International consultants 2,700.0 ii. National consultants b. International and local travel c. Reports and communications Equipment Training, seminars, and conferences a. Facilitators b. Training program Surveys Miscellaneous administration and support costs Contingencies Subtotal (C) 5,000.0 Total (A, B, and C) 14,084.0

14 10 Appendix 2 a Financed by the governments of Austria and Sweden and the Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility. b Administered by ADB. This amount also includes ADB s administration fee, audit costs, bank charges, and a provision for foreign exchange fluctuations (if any) to the extent that these items are not covered by the interest and investment income earned on this grant. c This line item is included at the request of the Government of Sweden. d Contributors: the Government of the United Kingdom and the Rockefeller Foundation. Administered by ADB. This amount also includes ADB s administration fee, audit costs, bank charges, and a provision for foreign exchange fluctuations (if any) to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant from the Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility. Source: Asian Development Bank estimates.

15 Appendix 3 11 OUTLINE TERMS OF REFERENCE FOR CONSULTANTS 1. The technical assistance (TA) team will work with the staff of the Regional and Sustainable Development Department of the Asian Development Bank (ADB) and GIZ staff engaged in the Cities Development Initiative for Asia (CDIA) to prepare projects and enhance the capacity of cities to manage them. 2. A multidisciplinary team of national and international experts, led by an international senior municipal or environmental engineering and urban infrastructure specialist, will be required to successfully execute the assignments. The experts will perform the following tasks. (i) (ii) (iii) (iv) (v) (vi) (vii) Review pertinent documentation, including the listing of relevant documentation. Analyze current urban development constraints and projections. Define and propose the prefeasibility studies study area boundaries, based on technical criteria related to key urban environmental infrastructure. Review integrated improvement requirements within the prefeasibility studies area and contrast this with improvements already undertaken or programmed. Identify priority investments that will (a) have maximum environmental benefits, including socially inclusive investments; (b) reduce the city s ecological footprint; (c) help mitigate and adapt to climate change; and (d) reduce inequalities. Ensure that the identified investments benefit the poorer people and sections of the city to the greatest extent possible. Conduct the prefeasibility studies in a participatory manner, involving all stakeholder agencies as well as civil society throughout the study by conducting participatory planning and design workshops at critical junctures. For this purpose, an operational working group will be formed in which representatives from the main agencies involved and from civil society will participate. 3. The overall combined implementation package is likely to be financed by a combination of international and national financing in accordance with the applicable infrastructure financing formula. The prefeasibility studies work for these projects is therefore envisaged to establish the initial case for taking projects identified by participating cities to prefeasibility studies level under standard arrangements with a financing institution. The prefeasibility studies reports to be prepared must therefore adhere to a standard acceptable to national and international financing institutions, with particular attention to requirements for possible ADB funding. This will include flagging potential issues requiring in-depth review in accordance with ADB s safeguards guidelines at the subsequent feasibility study stage. A. International Urban Infrastructure Consultants 4. The international specialists will be responsible for providing the strategic and technical direction for the prefeasibility studies, quality assurance for the inputs, and all key reporting to the CDIA. They will coordinate closely with the client, ensuring that key institutions and civil society are at all times engaged in the process of the prefeasibility studies development as partners.

16 12 Appendix 3 1. Senior Municipal or Environmental Engineering and Urban Infrastructure Specialist a. Technical Responsibilities 5. This specialist (international, 185 person-months) will manage the preparation of prefeasibility reports, adhering to a standard acceptable to national and international financing institutions, with particular reference to requirements for a possible capital investment project. This will include flagging potential issues requiring in-depth review in accordance with ADB s safeguards guidelines at the subsequent feasibility study stage. 6. Under the supervision of the ADB CDIA manager and the GIZ CDIA program coordinator, the consultant will take part in the day-to-day operational activities of the CDIA core management team. With a focus on urban good governance and effective city-level public sector management for infrastructure development, the main tasks of the consultant will be to support the following activities of the CDIA: (i) broad organizational and institutional development, (ii) development and evaluation of project support applications from cities, and (iii) prefeasibility studies phase project preparation and city-to-city networking. 7. Contributing from his or her disciplinary background, the specialist will perform the following tasks. (i) (ii) (iii) (iv) (v) Determine study area boundaries. Verify previous sector studies undertaken and conduct a detailed analysis of the present development situation of the study area, identifying constraints and issues. Identify and define possible design options that have emerged and comment on their likely feasibility and sustainability. Recommend a preferred design option and financial structure for investment projects. Highlight any major environmental issue that needs to be reviewed in depth at the subsequent stage of feasibility work. b. Qualifications and Experience 8. The international senior municipal or environmental engineering and urban infrastructure specialist will preferably have the following qualifications and experience. (i) (ii) (iii) (iv) A master s degree in environmental engineering, urban transport, or energy (with specialization in municipal sectors such as drainage and flood protection, sewerage, or solid waste management; urban transport such as bus rapid transit; parking management; and district energy systems) or in a related discipline, with experience in preparing and implementing infrastructure projects in large metropolitan cities. A minimum of 10 years of project-related experience in Asia years of project management experience in Asia. The capability to lead multidisciplinary teams and to work with a range of different stakeholders.

17 Appendix Urban Planner a. Technical Responsibilities 9. The consultant (international, 55 person-months) will provide urban planning inputs for projects, assisting in the development of options and agreeing on the preferred designs with the local government. She or he will assist in the preparation of the prefeasibility studies, complying with the minimum CDIA requirements. The urban planner will coordinate with the financial analyst in proposing and agreeing on the financial structure. Among other specific tasks, the urban planning specialist will perform the following functions. (i) (ii) (iii) (iv) (v) (vi) (vii) Prepare prefeasibility studies reports, adhering to a standard acceptable to national and international financing institutions, with particular attention to requirements for possible ADB project financing that include flagging potential issues requiring in-depth review in accordance with the various safeguards guidelines at the subsequent feasibility study stage. Verify previous prioritization activity and confirm priority projects. Undertake a detailed analysis of the development situation in which the activities will be carried out, identifying the constraints and issues. Identify and define possible design options that have emerged and comment on their likely feasibility and sustainability. Recommend preferred designs or structures for investment projects. Develop terms of reference for a feasibility design study and required capacity development programs. Highlight any major social, economic, financial, and environmental issues that need to be reviewed in depth at the subsequent stage of feasibility work. b. Qualifications and Experience 10. The specialist is preferred to have the following qualifications and experience. (i) (ii) (iii) At least a master s degree in urban planning or related discipline, with experience in regional urban planning in large metropolitan cities. At least 15 years of related project experience. A demonstrated ability to work congenially and productively with a consultant team, counterparts, and other project stakeholders. 3. Public Private Partnership Specialists and Financial Analysts a. Technical Responsibilities 11. The specialists (international, 130 person-months, intermittent) will develop and assess options for project finance and agree on the preferred options with the local government. They will prepare presentation documents and the information memorandum for these options. The specialists will agree on and document financing plans, conditional on satisfactory feasibility study outcomes, with potential primary financiers. They will also perform the following tasks. (i) Make a preliminary assessment of the viability of investment options identified by CDIA prefeasibility studies assessments, opportunities for public private partnerships (PPP), and contrast and compare their likely feasibility and benefits.

18 14 Appendix 3 (ii) (iii) (iv) (v) (vi) (vii) (viii) Make a preliminary identification of likely risks to feasibility and benefits, including risks to sustainability, and assess the importance of these risks. Review the preliminary financial and economic analysis, including risk analysis of the project, with a view to developing bankable projects downstream. Review the preliminary financing plan, including conducting a sensitivity analysis. Help the team leader recommend a preferred PPP option based on bankability criteria. Review potential options for financing of investments, define options for organizing investment operations, and recommend preferred options for both to be considered in detail in subsequent feasibility work. Identify potential financial sources for financing of the project, including where it may be possible to attract limited recourse financing. Liaise with identified financiers to secure financing for identified projects and, where applicable, prepare terms of reference for additional due diligence and procurement, or for structuring the project for a possible PPP. b. Qualifications and Experience 12. The specialists should preferably have the following qualifications and experience. (i) (ii) (iii) (iv) (v) (vi) At least a master s degree in finance and economics. At least 10 years of experience in finance or economics project monitoring and evaluation. Demonstrated success in structuring limited recourse project financing as well as PPPs across a number of sectors and in many jurisdictions. A high degree of literacy in finance and financial modelling of infrastructure projects in Asia. Proven competence in project economic and financial analysis. Fluency in both written and spoken English. B. National Urban and Infrastructure Consultants 13. The main task of the national consultants (40 consultants, 584 person-months in total) will be to provide high-quality assistance and inputs for the international consultants, backed where needed by strong data analysis. Consultants will be required in the fields of urban planning, municipal engineering, economic and financial analysis, social development, and institutional development. The tasks of the national consultants will include supporting the activities of international consultants in the field, reviewing documents and literature, collecting data and information, conducting research and analysis (both quantitative and qualitative), and preparing notes and briefs. The national consultants will provide technical and administrative support to assist the international consultant teams. The national consultants will coordinate with governments, other donors, and other ADB projects as needed. The consultants will undertake other support tasks required by the CDIA secretariat. 14. The specialists should preferably have the following qualifications and experience. (i) (ii) A master s degree in urban planning, finance and economics, or environmental engineering or related discipline; and project experience working in Asia with government agencies and on donor-funded projects. A minimum 10 years of related project experience.

19 Appendix 3 15 (iii) A demonstrated ability to review documents and literature, collect data and information, conduct research and analysis (both quantitative and qualitative), and prepare notes and briefs. C. Report Submissions 15. The consultants will submit progress reports 2 months after the initiation of their assignment, and a draft final report after the fifth month of their engagement, together with required reports and inputs relating to city project formulation, as agreed on with ADB s Regional and Sustainable Development Department.