WORK REPORT FOR 2007 WORK PLAN FOR 2008

Transcription

1 SECOND ULAANBAATAR SERVICES IMPROVEMENT PROJECT WORK REPORT FOR 2007 WORK PLAN FOR 2008 ULAANBAATAR

2 CONTENTS 1. IMPLEMENTATION OF INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) CREDIT PROCEEDS... 3 PROJECT NAME... 3 SECTOR... 3 PROJECT IMPLEMENTATION BACKGROUND AND DEMANDS... 3 PROJECT OBJECTIVES... 3 WORKS TO BE IMPLEMENTED UNDER THE PROJECT... 3 PROJECT PROFITS AND RESULTS... 4 PROCEEDS AMOUNT REQUIRED FOR PROJECT IMPLEMENTATION... 4 LEGAL ENVIRONMENT FOR THE PROJECT... 5 ENVIRONMENTAL AND SOCIAL IMPACTS... 5 WORKS IMPLEMENTED IN DIFFICULTIES FACING WITH CREDIT AND GRANT IMPLEMENTATION JAPANESE SOCIAL DEVELOPMENT FUND (JSDF) - TF GRANT NAME: OBJECTIVES: PROCEEDS AMOUNT: IMPLEMENTATION PERIOD: COMPONENTS: IMPLEMENTED WORKS: CONCLUSION WORKS PLANNED IN 2008 (LOAN AND GRANT) ONE. IN SCOPE OF SECOND ULAANBAATAR SERVICES IMPROVEMENT PROJECT

3 1. IMPLEMENTATION OF INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) CREDIT PROCEEDS Project name Second Ulaanbaatar Services Improvement Project (USIP2) Sector Public services sector Project implementation The Government of Mongolia received Credit Loan amounting of 18 background and million US dollar from World Bank for carrying out the USIP2 demands implementation as a second stage implementation of USIP under the request of Government of Mongolia (GOM) for provision of financial assistance to develop infrastructure required for supplying ger area people with quality water meeting the standards in a sustainable way. The main project tasks to be implemented in water sector: a) necessary demands to improve ger area public services; b) reduce water loss for city network; c) water source protection through water new tariff; d) improve institutional financial capacity through expenditure reduction and fully recovery of expenditure. Support the city development through investment of main sectors such as increase of water supply reliability and operational efficiency, and urban planning, land organization, MUB administration and financing. Project objectives Works to be implemented under the project The Project key objective is to deliver standard meeting water supply services to ger area residents of Ulaanbaatar city and sustain the water supply services as a reliable and sustainable manner Second Ulaanbaatar Services Improvement Project (USIP2) shall be carried out in Contract number: 3890-MOG The project shall cover the following ger areas. Chingeltei (Chingeltei district) Dambadarjaa (Sukhbaatar district) Bayankhoshuu (Songinokhairkhan district) Dari-Ekh (Bayanzurkh district) Naran (Bayangol district) Uliastai (Bayanzurkh district) The project has 4 components. 1. Ger area water supply (1) Supply and installation of about 78.3 km pipes; Total of 78.3 km of pipes shall be installed and from which 42 km of pipes shall be installed in Bayankhoshuu, 13 km of pipes shall be installed in Chingeltei, 23.3 km of pipes shall be installed in Dambadarjaa and Dari Ekh ger area. Total of 104 water kiosks shall be connected to city network including existing 82 water kiosks and new 22 kiosks to the city network; (2) Construction of 3 reserviours and 3 pump stations; construction or rehabilitation of 104 new kiosks; connecting of 17 institutions such as hospitals and schools and 430

4 households to the water supply network; (3) Supply and installation of water meters, valves, various pumps and associated electrical equipment; (4) Supply of 15 water trucks and 5 faecal vehicles together with spare parts; 2. City water supply improvement (1) Introduction of new technology required for replacement of about 12.2 km pipes of city water network; (2) Replacement of 4 pumps and equipment for western district pump station; ehnancement of telemetering system; construction of monitoring well; and supply of laboratory equipment; 3. Energy efficiency improvement Supply and installation of about 90 submersible pumps; of 1000 kw transformer and control system for intake well at the Upper source; and of 59 km of energy efficiency overhead wire lines which to be used in the well fields of Upper, Central and Meat complex source. 4. Institutional Development and Project Management (1) Consulting Services for preparation of detailed engineering designs and bidding documents, procurement process, construction supervision, management and quality control; (2) In scope of policy: Consulting Services for communication, internal financial controls, individual connections and metering, sanitation, private sector participation for operating kiosks and portable water supply, increasing energy efficiency and reducing operating costs. Project profits and results Proceeds amount Improvement of ger area living conditions and conditions to transfer ger area into private apartments area (PAA) shall be provided. Strengthening of USUG operation and management. Increase private sector participation through privatiziation of water kiosks and water trucks. Reduction of water loss in the network. Reduction of utilization cost through introduction of telemetering system, control valve and energy efficiency equipment. Improvement of water availability and network reliability. Connection of ger area households and institutions to the water supply system. Reduction of water consumption and water tariff difference between ger area and apartments customers. Reduction of water-born disease in ger area. Introduction of new technology for rehabiliation of city s old water network. IDA Credit -18 million US dollar 4

5 required for project implementation Legal environment for the project Environmental and social impacts Works implemented in million US dollar from MUB for 50% of PMU operational expenses and relocation compensation 3.94 million US dollar for financing 67% of construction work; 0.11 million US dollar for 6% of Consulting Services; 0.05 US dollar for energy cost and 0.31 million US dollar for PIU costs from USUG Total: million US dollar Development Credit Agreement was signed between Mongolia and International Development Association in July 23, 2004 and ratified by State Ikh Khural in October 22, Project Agreement signed between MUB and World Bank IDA was ratified by the Decree of Citizens Representative Khural dated as November 1, 2004 and responsibility to establish Subsidiary Loan Agreement (SLA) between Government of Mongolia and MUB; SLA between MUB and USUG was handled to Capital City Mayor. Authority to sign on the SLA was officially approved by the Mayor s Decree dated November 4, The Subsidiary Loan Agreement by USUG specifies that the principal amount repayment period to 40 years, including grace year of 10 years with 5% interest rate annually. The resolution of Subsidiary Loan Agreement Amendment for USIP was approved by the letter of Director in charge of Mongolia, Eastern Asia and Pacific region of World Bank dated April 8, 2005 to amend the principal amount repayment period of 20 years, including grace year of 5 into principal amount repayment period to 40 years, including grace years of 10 years. Mayor s Recommendation No1/1286 was issued in July 15, 2005 and new water tariff became effective from September 1, Through WB Approval dated as November 29, 2005 the USIP2 Disbursement became effective. According to the WB requirements and resolution of PMU staffs to employ as a Local Consultants, Local Consultants Contracts were signed and Social Insurance Fee was not financed from Credit Loan starting from September 1, Through ger area water supply improvement there would be some direct and indirect positive impacts for the environment. Social significance for disease reduction and hygienic condition improvement through water quality improvement of ger area residents. Through connection of water kiosks to the central water supply services the possibility to use quality water which meets standards requirements shall be increased. Through public services improvement the women and children would have possibility to improve and educate themselves by saving the time. 1. In scope of procurement Renewed Procurement Plan was finalized discussing with WB and USUG TOR for Consulting Services of Construction Supervision 5

6 and Project Management was prepared including the beneficiary organization s recommendation and comments. Upon preparation of TOR, it was submitted to Ministry of Finance (MOF) and World Bank for approval. Bid was announced and evaluation was done accordingly. Upon getting MOF and WB approval, contract was signed with the selected Consulting Company (EASEN International Co., Ltd from USA) and Consulting Services work is now underway Bid for Construction of water reservoir and pump station in Bayankhoshuu ger area Contract No.PSC-01 was announced and Bid Evaluation is now underway 2 bidding documents for construction work and 2 bidding documents for consulting services were prepared, announced, evaluated and selection of Contractor/Consultant was carried out; and 9 new contracts were signed in 2007 Procurement timeline, implementation, procurement related complaints are registered and preparation of database is being processed Arrangements for contract package were done and brief information for each contract package was done. 2. Contracts implementation Supervision for Contract implementation for 5 Suppliers, which were signed in 2006, was carried out and goods and materials are commissioned in USUG s storage within contract schedule time. In addition, origin certificate, manufacturing testing documents, transportation documents and other related documents were reviewed by MOF and Customs General Department. Documents are stored in Contract Package. 6 Contracts were signed for Construction work and construction supervision is being held for the following facilities implemented by Main and Sub-Contractors: 1. Bayankhoshuu South and North Pipelaying and Kiosks, Contract BNSC-01; 2. Chingeltei Pipelaying and Kiosks, Contract CTC-01A 3. Construction of Reservoir and Pump station in Chingeltei ger area, Contract CTC-01B 4. Drilling and construction of 3 monitoring wells for supervision of city water quality and pollution, and cleaning of 6 wells, Contract CAC Construction of 10 water trucks garage together with water, heating and electricity supply and holding tank, Contract KSC- 01A; Construction of 10 trucked kiosks, Contract KSC-01B 6. Replacement of existing 3 pumps with energy efficiency pumps and renovation of valves and armatures of Western Pump Station, Contract CAC-01 Contract work implementation is shown on below table1: Table1 Name of goods and material, construction location As planned for 2007 As implementation of 2007 (As of December 5) Supply of goods and materials 6

7 Preinsulated Polyethylene water Water pipes of % km and 12 welding pipes, DN machines with 2 types Preinsulated Ductile iron water pipes, DN Water pipes of 13 km and fittings 100% Valves and accessories Various types of 100% valves and accessories, DN32-500; 889 ea Various types of water 132 ea 100% pumps, Q= m3/hour, H=3-110m Water and waste water 15 ea 100% trucks with capacity of 2-5m3 Construction work Construction of water 12.2 km 5.6 km supply network in Bayankhoshuu South Construction of water 12.7 km 8.3 km supply network in Bayankhoshuu North Construction of water 9.1 km 7.9 km supply network in Chingeltei ger area Construction of water Complex 80% reservoir and heating house in Chingeltei ger area Construction of 10 water Complex 100% trucks garage Kiosks 10 ea 80% Renovation of pumps, valves and armatures in Western Pump Station 3 pumps, 5 valves 40% 3. Construction work supervision Following supervision was carried out for construction work quality under the project a) Project Implementation Unit Established under USUG, executes Client s duties carrying out daily construction supervision b) Project Management Unit Supervise accomplishment of construction work schedule, goods and material consumption and land organization through supervision engineers c) Consulting Company Supervise construction work whether it complies with design drawings and technical specifications; and if required give advice to PMU and PIU on management, quality, labor defense and technique and technology d) Design Author s supervision Cooperating with design organization by signing Author s Supervision Contract and if required make changes in design drawings e) Professional Investigation Organizations Professional Investigation Organizations conduct outside monitoring according 7

8 to their planned schedule or PMU and PIU request Organizations, which conduct monitoring discusses about their findings once in 2 weeks and issued resolutions were approved by minutes of meetings. Any issued decisions were followed accordingly. About 20 meetings were organized in 2007 and decisions were issued from each meeting. Construction of X-2 manhole, which was not meeting the quality requirements was dismantled and rebuilt. Meeting between Contractors and Supervision Unit was organized 2 times a month permanently and about 18 meetings were organized in Decisions were issued as a minutes of meeting and implementing the decisions. 4. Resettlement One of the main factors for successful construction work implementation is resettlement; therefore, public advertisement on this issue was organized among the community. In order to reduce the affected households number, some issues were solved such as changes in technical decisions and encirclement of pipes in a possible way. Comments on how to liaise pipe design drawings with investment works was submitted to MUB and it was discussed. PMU Engineer is included in technical commission of road reconstruction and working under this commission. Due to the cooperation with Districts Land Division on land relocation matter, sticking of pipelaying information on 24 kiosks and distribution of information regarding project significance to the community through publication, information and khoroo, there was no significant obstacle for construction work causing from relocation. Following works were carried out for land relocation in cooperation with community, citizens and contractors. 149 plots were dismantled and rebuilt. By making changes in design drawings 9 households avoided relocation and by making changes in technical resolution 10 households avoided from relocation. Compensation issue of households settled in construction area of pump station and reservoir in Chingeltei ger area are aroused to Property Management Department, MUB and related documents were submitted. 5. Credit Loan expenditure and financial operation Disbursement of 2006 was prepared in tugrug and dollar, approved by MOF, MUB USUG and PMU, and distributed to related organizations. Dalai Van Co., Ltd audited USIP2 loan account, Netherlands Grant and JSDF Grant account. World Bank supervised project financial operation, Tax Department of MUB supervised 2005 disbursement; Professional Investigation Department of MUB supervised financial operation and Social Insurance Department of Chingeltei District supervised social insurance fee and any errors and mistakes found during the examination is now being corrected. 8

9 6. Information and advertisement work In order to introduce USIP2 objectives, guidelines and activities to the community; to identify existing ger area public services situation and further way to improve it on the community based comments and innovation; to give information on water quality, standards and resources; many information and advertisement works were planned and implemented successfully. They are: a) Water Value named information and advertisement campaign work started from October 9, 2007 with 3 months duration. Objective is to form thrift practice of water usage among the customers and to make impression on how valuable the water is and its resource is non-renewable. Within this work, following works were implemented and cooperated with professional organization under signed contracts. 4 TV programs were prepared and transmitted through Mongolian National TV 2 special publication of newspaper prepared and distributed to community through Apartments Ownership Union, postal box, annex of newspapers and schools and kindergartens 5 newspaper article and 7 interviews and 1 essay published in newspapers 2 advertisement boards prepared and placed in 3 points pieces of adhesive placard published and placed in bus stations and crowded areas. In accordance with 10 th Anniversary of USIP implementation in Mongolia and in order to (i) make available of implemented works, findings and accomplishments among the community; (ii) make understanding of water value, water significance and thrift usage to all level of community; (iii) to expedite construction work process and improve construction quality and safety, following measures were taken: Publication of Memory Book for USIP by gathering memories from veteran staffs, foreign and domestic consultants, design organizations, contractors and PMU staffs who are involved in project implementation in Mongolia 3 employees, worked in public sector field successfully for a long time, are determined and awarded as a Leading Staff of Public Sector. Moreover, 1 person was listed in City s Honorable Book and 1 person was awarded by MUB credentials Documentary film of Ulaanbaatar Services Improvement Project reaches to 10 age prepared 21-day competition of Higher work efficiency was declared among the contractors and Special Commission was organized for assessing the scores. Top three contractor teams were selected and awarded by sheep, goat and mare s milk. Our participation in ger area development hand drawing and composition competition was announced among students of Secondary School No. 76 and 67 of Songinokhairkhan District and Secondary School No. 37 of Chingeltei District. Champion of the competition was selected. School event aimed to improve students knowledge about the project and to give them project related information was organized among the students Kindergarten event aimed to deliver information of water value, 9

10 environmental cleanness and project operation to the children was organized in kindergarten No. 117 of Songinokhairkhan District Placard about project achievements during 10 years are exhibited Will water end named composition and hand drawing competition was announced through C1 TV and champion was awarded Handball competition was called between USUG, Consulting team and PIU and the champion was awarded c) Other Following types of advertisement were selected and some measures were taken. They are: Contract was signed with TV and advertisement program implemented Upon signing contract with C1 TV, 13 TV programs were produced and transmitted to the community through program such as Our unknown Ulaanbaatar and Unagaldain mukhlag Contract was signed with radio and advertisement program implemented - 7 programs in cooperation with Ulaanbaatar Radio and 1 program in cooperation with Gurvan Erdene Studio of Mongolian National Radio were produced and transmitted to the community - 4 types of short-term advertisement were produced and operation supporting community based infrastructure development comments and innovative was organized Information was distributed to the community through newspaper media - Newspaper cover information was published 5 times in order to inform project operation to the community Introduction trip for journalists to make correct understanding about USUG, OSNAAG and project operation was organized 3 times Constant update for organization s website and hardworking on delivering the fresh news on time was carried out 7. Cooperation with other organizations and management improvement Some works are organized for cooperation with related organizations, teams and contractors for implementing the project objectives successfully within the term, motivation of each person s innoviation, support staffs enthisiasm for improving their knowledge and education, spending staffs free time efficiently and protection of staffs health. Cooperation with MOF for position of required Invitation to Bids in the website of MOF according to the Procurement Law of Mongolia, review and approval for the Bidding Document, approval from MOF for the Evaluation Committee s Resolution, getting advice and inquiries and preparation of addition material and documents according to recommendation. An approval for one contract was received from MOF. To introduce project activities to Steering Committee, to get resolution on technical and other issues and their implementation - Steering Committee meetings organized 2 times and PMU operational 10

11 report presented and 2008 plan approved by SC - Provided with conditions to be acquaintanced with design drawings, various study reports, Ulaanbaatar water and wastewater Master Plan, Maps and to visit construction facilities implemented under USIP2 Meetings with ministries, MUB and other administrative staffs are organized for World Bank and international organizations representative for getting understanding of policies and directions. Aide Memoire and Management Letter by WB distributed to all concerned organizations. - Successfully participated in Mongolian Development Marketplace organized by World Bank Representative office in Ulaanbaatar and advertised project information to the public - Introduced construction faciltities implemented and being implemented under project to the World Bank Deputy President and Directors board For establishing the Evaluation Committee the representatives of Government and MUB are included in the EC. 4 Evaluation Committees were established by Mayor Decree and 4 resolutions to select the Supplier/Contractor were issued and there was no cancelled or re-announced tender in Improvement of staffs knowledge and education and staffs health protection: In order to improve staffs knowledge and education as well as to improve work organization the following trainings were organized. Contract was signed with Santis Training Center for improvement of PMU staffs English language knowledge and about 70% of staffs obtained professional English language 1 person participated in International Fixed Asset Assessment organized by MOF and MUB; and 1 person participated in Community based social issues in Asia Theory and Practical meeting organized in Pusan University, South Korea By duplicated number, total of 9 people including USUG engineers and technical staffs conducted supervision trip for Suppliers manufacturing and introduction of new technology 7-days training for welding of polyethiline pipe (2 methods of welding) among Contractors was organized and 27 people obtained Certificate from this training Total 14 PMU staffs covered in precautionary health check and thanks to the medical check 3 people protected from possible risk Difficulties facing with Credit and Grant implementation During the project implementation the following difficulties faced. 1. Water tariff increase is the background for the project implementation however for Mongolia to increase the tariff not only the water tariff is 11

12 very sensitive issue due to the higher percentage of poor people in Mongolia emphasized by city authorities. However measures are being seeked for strengthening of USUG financial capacity. In particular on the occasion of VAT tax reduction by 5% in January 1, 2007 the water tariff increase for USUG by such amount is approved. Moreover, water tariff of kiosk is increased as 1000 tugrug per 1 cub meter, which is approved by Decree No. 90 dated April 12, In order to strenghten USUG financial capacity and to provide that organization the conditions to fully cover the 67% of financing for the USIP2 construction work the World Bank recommended (i) USUG not bear the foreign currency risk discrepancy for USIP1 and USIP2 (ii) to postpone the loan repayment for USIP in 2004 and 2005 with two years (iii) to cancel the penalty charge for delayed interests payment however none of them are solved. This situation can cause difficulties to financing source for construction of water supply facilities in Dari-Ekh and Dambadarjaa, planned to be implemented in The area for construction of water supply facilities which is identified by Preliminary Design is being granted for other purposes. During the survey there were 48 households to be affected by relocation however by the end of the 2007 this number increased to 189. Therefore relocation expenses of MUB increases, and some problems and difficulties arouse for contractors and resettlement specialist of PMU. 12

13 2. JAPANESE SOCIAL DEVELOPMENT FUND (JSDF) - TF Grant name: Objectives: Proceeds amount: Implementation period: Components: Implemented works: To impove ger area infrastructure on community based participation Development and implementation of community led infrastructure plan, construction of low cost pit latrines and development of micro credit 1.8 million US dollar Establishment of CBOs among the citizens Development of community led infrastructure plan and its actual implementation Construction of ventilized low cost pit latrines, organization of health awareness training and development of micro credit PMU completed the following works by the Grant. Consulting Team for Community based infrastructure development was selected 28 facilitators of selected 7 ger area are identified and training of these facilitators organized 6 times In order to support facilitators initiatives and their attempts to develop local area, PMU provided advice for preparation of projects to Let s improve our living conditions organized by APU Co., Ltd and Mongolian Development Marketplace organized by World Bank Meetings among the community and citizens organized 19 times as a serial in order to inform project basic information to the community and to study and combine community comments on infrastructure development. Conclusion Suspended process of JSDF implementation had been handled out and now the higher attention is focused on the timely implementation of the Grant. Due to the lack of practise in ger area people s participatory approach in developing the infrastruce by themselves and preparing of plan from bottom to the top in Mongolia as well as less amount of professional institutions and specialists and low knowledge, innovation and activeness of citizens, the work is facing some problems. WORKS PLANNED IN 2008 (Loan and Grant) One. In scope of Second Ulaanbaatar Services Improvement Project 1. Sign Contract-PRC-01, Construction of 2 reservoirs with capacity of 1500 and 500m3 and 2 pump stations in Bayankhoshuu ger area and implemention shall be reached 100% 2. Reallocate of project cost, shall be presented to SC and approved by World Bank in accordance with WB mid-term review supervision 3. Sign Contract DDC-01, Construction of water supply facilities in Dari- Ekh and Dambadarjaa ger area. Implementation shall be reached 50%. 4. Work demands and cost analysis of Energy Efficiency part, one of the components of the project shall be identified by Consulting team. Procurement Plan shall be renewed. Some works of this component

14 shall start. 5. Bid for Supply and installation of telemetry system shall be announced and contractor shall be selected 6. Bid for Installation of control valves for the city netowork shall be announced and contractor shall be selected 7. Bid for Supply and installation of Laboratory Equipment shall be announced and contractor shall be selected 8. House connection component shall be started. Before individual connection work, some works such as social impact study among the community, issue of technical resolution fitting with location, preparation of shop drawings complying with urban policy and resolution, announcement of bid, selection of contractor, identificaiton of beneficiary organization, and preparation of guidelines shall be carried out in cooperation with Consulting team 9. Resolution of city network rehabilitation and lining technology shall be finalized in cooperation with Consulting team, USUG and PIU and bidding document shall be re-prepared 10. Construction of pipelaying in Bayankhoshuu and Chingeltei ger area shall be completed. Testing, adjustment and commissioning shall be carried out 11. Construction of water reservoir and pump station in Chingeltei ger area shall be completed. Testing, adjustment and commissioning shall be carried out 12. Renovation of Western Pump Station Equipment shall be completed and commissioning of facilities to USUG shall be carried out. Two. In scope of Japanese Social Development Fund 1. Preparation of Manual specifying development methods of community based plan, implementation process, mobilization plan of community and districts involvement shall be carried out 2. Introduction and advertisement of manuals to the community and districts and organization of some related trainings shall be carried out 3. Supporting of community cooperation and capacity building of CBOs shall be organized 4. Identification, prioritization and planning of infrastructure development needs based on the community comments and participation shall be organized. 5. For required project budget, 80% of the financing shall source from the Grant and 10% from District and 10% from community. Planning shall be implemented within cooperation and monitoring 6. Constant maintanence of constructed public facilities and its permanent operation shall be beared by districts and community. Cooperation on this matter shall be intensified. 7. Covering of community in the public health awareness training 8. Establishment of Revolving Fund for consruciton of low cost sanitation and commencement of lending loan to the community 9. Monitoring and evaluation of project operation 14