Grant Assistance JFPR: TAJ 39034

Transcription

1 Grant Assistance JFPR: TAJ Proposed Grant Assistance to the Republic of Tajikistan for the Community-Based Rural Road Maintenance Project (Financed by the Japan Fund for Poverty Reduction) October 2005

2 CURRENCY EQUIVALENTS (as of 15 October 2005) Currency Unit somoni (TJS) TJS1.00 = $ $1.00 = TJS ABBREVIATIONS ADB Asian Development Bank BTOR back to office report CBO community-based organizations ECTC Transport and Communications Division of ADB GDP gross domestic product GIM grant implementation memorandum ICM implementation completion memorandum JDC Jamoat Development Committee JFPR Japan Fund for Poverty Reduction MOT Ministry of Transportation NGO nongovernment organization O&M PAM operation and maintenance Project Administration Memorandum PIU project implementation unit PPMS project performance management system RMU RSES road maintenance unit Environment and Social Safeguard Division of ADB SIA social impact assessment SNM subnetwork manager TA technical assistance UNDP United Nations Development Programme VRF village road fund GLOSSARY OF TAJIK TERMS jamoat Villages cluster. It is the lowest administrative division rayon district NOTES (i) (ii) The fiscal year (FY) of the Government ends on 31 December. In this report, "$" refers to US dollars.

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4 69 o 30'E 69 o 00'E UZBEKISTAN 73 o 00'E N TAJIKISTAN COMMUNITY-- BASED RURAL ROAD MAINTENANCE PROJECT 40 o 00'N DUSHANBE UZBE- KISTAN KYRGYZ REPUBLIC Lake Karakul TAJIKISTAN Lake Sarez 40 o 00'N PEOPLE'S REPUBLIC OF CHINA N 37 o 00'N 69 o 00'E A F G H A N I S T A N 73 o 00'E 37 o 00'N Kilometers KYRGYZ REPUBLIC 71 o 30'E 39 o 30'N 39 o 30'N SUGHD REGION Dzhirgatal Vahdat Garm Faisabad Rogun Navobod Nurobod Garm Tajikabad REGIONS OF REPUBLICAN SUBORDINATION Nurobod National Capital City/Town Phase 1 Phase 2 Phase 3 Main Road Railway 38 o 30'N DUSHANBE Vahdat KHATLON REGION Darvoz River Provincial Boundary Autonomous Regional Boundary International Boundary 38 o 30'N Boundaries are not necessarily authoritative. Nurek RM 69 o 00'E Nilvan AFGHANISTAN 73 o 00'E Map 2

5 JAPAN FUND FOR POVERTY REDUCTION (JFPR) JFPR Grant Proposal I. Basic Data Name of Proposed Activity Community-Based Rural Road Maintenance Country Republic of Tajikistan Grant Amount Requested $1.8 million Project Duration Regional Grant Yes / No Grant Type Project / Capacity building II. Grant Development Objective(s) and Expected Key Performance Indicators Grant Development Objectives: The objective of the JFPR Project is to alleviate rural poverty and raise living standards for rural communities through increased access to basic social, economic, and income-generating activities. The outcome of the project is to establish, and prove the efficacy of, a sustainable and cost-effective community-based road maintenance system in the project area. The expected outputs are: (i) employment and income generated for the rural poor through contracts for minor repair and maintenance of rural roads; (ii) 350 kilometers (km) of rural roads improved, providing access to villages; (iii) sustainable access secured to education, health, markets, and regional economic centers; and (iv) institutional capacity built in government and nongovernment organizations locally, and in small and very small contractors and communities, for managing and executing, on a sustainable basis, the maintenance and minor repair of rural roads. Expected Key Performance Indicators: 1. At least 70,000 person-days of employment created 2. The number of poor households in the project area reduced by 10% 3. More than 350 km of rural road network restored to good condition in the project area 4. The capacity of at least 25 small-scale contractors developed for executing road maintenance 5. Average travel time to markets, schools, and healthcare facilities reduced by 20% III. Grant Categories of Expenditure, Amounts, and Percentage of Expenditures Category Amount of Grant Allocated ($) Percentage of Expenditures (%) 1. Civil works 941, Equipment and Supplies 125, Training and workshops 39, Consulting services 313, Grant Management 216, Contingencies 163, Total 1,800, Incremental Cost 0 0.0

6 2 JAPAN FUND FOR POVERTY REDUCTION JFPR Grant Proposal Background Information A. Other Data Date of Submission of Application September 2005 Project Officer Project Officer s Division, , Phone Other Staff Who Will Need Access to Edit/Review the Report Xiaohong Yang, Financial Specialist Transport and Communications Division (ECTC) xyang@adb.org J. Miller, Senior Project Economist, ECTC T. Oi, Social Development Specialist Energy Division R. Ishenaliev, Transport Specialist, ECTC A. Maxwell, Environment Specialist Energy Division Sector Theme Targeting classification Was JFPR Seed Money used to prepare this grant proposal? Have SRC comments been reflected in the proposal? Name of Associated ADB Financed Operations Executing Agency Grant Implementing Agency Transport and Communication Sustainable Economic Growth Targeted Intervention Yes [ ] No [ ] Yes [ ] No [ ] Dushanbe-Kyrgyz Border Road Rehabilitation Project (Phase I and II) Ministry of Transport (MOT) Project Implementation Unit Mr. Nizom Hakimov Ayni 14, Dushanbe Tel: ( ) Fax: ( ) piurr@tojikiston.com

7 3 B. Details of the Proposed Grant 1. Description of the Components, Monitorable Deliverables/Outcomes, and Implementation Timetable Component A Component Name Cost ($) Component Description Establish a Rural Road Maintenance Planning System $260,000 (including contingencies) Rural communities will be enabled and mobilized to actively participate in all stages of maintenance and minor repair of local roads. This applies to planning, identification, selection, and carrying out of works, as well as to the sustainable mobilization of the resources required. Domestic and international consultants will work with local community-based organizations (CBOs) and road maintenance unit (RMU) to (i) establish participatory frameworks in consultation with local road users, (ii) carry out a rural road inventory and survey of conditions, (iii) select the most appropriate labor-intensive technology for maintenance, (iv) estimate the costs of managing the rural road network, (v) prepare and submit an annual maintenance plan to MOT and local governments for financing, (vi) disseminate the plan to local communities and other potential donors for information and possible contributions, (vii) prioritize works based on extensive stakeholder discussions and adjust costs to meet the budget available, (viii) schedule and package the activities ready for implementation by local communities using laborintensive techniques as far as possible, (ix) tender the works among local small-scale contractors using simple engineering bid documents, and (x) formulate a medium-term maintenance strategic plan for based on the first year inventory surveys and annual plan. The foregoing activities will be carried out with a participatory approach to include workshops and on-the-job training. The Project will establish a sustainable institutional structure at local communities for rural road maintenance by establishing local village maintenance funds under CBO management. The Project will also train subnetwork managers (SNMs) on the day-to-day management and planning of rural road networks. These will assure sustainable management and financing of local road maintenance. The design of this component has drawn on the experience and knowledge gained by CBOs in the project area who have successfully implemented rural development projects for several years. These projects have been financed by the United Nations Development Programme (UNDP), World Food

8 4 Programme, ADB, Canadian International Development Agency, German Agro Action in Tajikistan, and local communities contributions. The design conforms with recommendations of previous and ongoing loans and technical assistance (TA) implemented by MOT, particularly TA TAJ: Institutional and Policy Support to the Road Sector, which was completed in July 2005). Monitorable Deliverables/Outputs Implementation of Major Activities: Number of months for grant activities Component B Component Name Cost ($) Component Description Establishment of a sustainable institutional structure for community participation in planning rural road maintenance Rural road network maintenance plans with financing requirements prepared for about 600 km (equivalent to 6% of the national rural road network) Simple engineering designs, specifications and contracting documents prepared and ready for implementation under grant financing (450 km) 12 SNMs identified and trained in rural road network planning and management Local MOT staff, governments, and CBOs trained to inventory, classify, and survey the condition of rural roads and plan the technical and financial details of repair 36 months Capacity Building in Community-Based Maintenance Work $330,000 (including contingencies) This component will enhance the capacity of key stakeholders (CBOs and local governments, communities, and contractors) to physically perform rural road maintenance work planned and approved in component A. It will (i) field test, adapt and revise the road maintenance manual developed under TA 3168-TAJ; 1 (ii) carry out training for small-scale contractors on financial planning, tendering and contract administration, labor management, workplace safety, environmental awareness, and health; and (iii) train contract supervisors (CBOs, SNMs and local communities) on contract supervision and management. The training will be delivered in workshops and on-the-job by direct instruction and the training of trainers. Local community leaders, CBO engineers, and contractors will be trained as trainers. These trainers will provide follow-up training to local community members. 1 ADB Technical Assistance to the Republic of Tajikistan for Road Rehabilitation. Manila.

9 5 During the first year of the Project, 30 km of rural roads and two ford-type river crossings will be improved to a maintainable standard under controlled conditions as demonstrations to train small community-based contractors. The Project will inject up to 25% of the total civil works contract amounts as contractual advances to improve the liquidity and financial capacity of local contractors. Guaranteeing contract advances through CBOs will be a mechanism similar to existing systems developed under previous rural development projects. Contractors may use the advances to purchase spare parts for equipment and needed hand tools. Safety equipment such as mobile signage and protective clothing will be purchased under the Project and made available to those carrying out the work. Ownership will be transferred to the CBOs upon completion of the Project. This component will build communities confidence and awareness that they can and must maintain the project roads themselves after the Project ends. The community will thus be encouraged to take up ownership of their networks and be given the capacity to maintain them. Monitorable Deliverables/Outputs Implementation of Major Activities: Number of months for grant activities Component C Component Name Cost ($) Component Description Road maintenance manual revised and adapted to rural road maintenance by the international consultant At least 25 local contractors trained and equipped to undertake rural road maintenance work At least eight workshops and practical demonstrations delivered on all relevant subjects at different community locations 30 months Community-Based Road Maintenance Work $870,000 (including contingencies) Labor-intensive road maintenance works will provide the rural poor with income-earning opportunities. The scarcity of such opportunities in the project area strengthens the incentive for participation, which is key to the success of direct interventions. 2 Based on the tenders completed in component A and 2 Malmberg Calvo, Christina Options for Managing and Financing Rural Transport Infrastructure. Technical Paper 411. World Bank, Washington, DC.

10 6 approved by the project implementation unit (PIU) and ADB, contracts will be signed between the PIU and contractors. The tender package sizes will be small to favor local, communitybased contractors. The initial targets will be critical primary works to bring the rural road network up to a standard maintainable by local communities. It will focus on extending basic access for isolated poor communities by improving fords, clearing minor landslips, filling gullies in earth roads, etc. Secondary works will correct unsafe conditions by restoring signage, improving drainage, and mitigating erosion. The tertiary critical works undertaken will be routine maintenance cleaning ditches and culverts, spot regravelling, and clearing vegetation, etc. which will be partly done through in-kind contributions from local communities, as agreed between the PIU and CBOs. At the final stage of the Project, CBOs will be empowered to take ownership of the whole process of the rural road maintenance planning, implementation, supervision, and evaluation, with the support from SNMs. Monitorable Deliverables/Outputs About 70,000 person-days of employment generated for the rural poor Income provided that the rural poor can use as start-up capital for income-generating activities The number of poor households in the project area reduced by 10% The condition of 350 km of project roads improved to a condition under which they can be maintained by local communities The poor and poorest benefit from improved access to basic health services and primary education The poor and poorest benefit from the improved marketability of perishable goods such as fruit through lower vehicle operating costs, time savings, easier transportation, and higher traffic volume The poor and poorest benefit from transferred knowledge of road works The poor and poorest benefit from improved social interaction and mobility, which are fundamental for social and economic development Operating costs of typical vehicles reduced by 20% Average travel time to markets, schools, and healthcare facilities reduced by 20% The number of jobs generated by the Project The number of poor households in a village before and after a subproject investment, as measured in terms of per capita expenditure and food consumption, for example The percentage of households directly assisted by a

11 Implementation of Major Activities: Number of months for grant activities Component D Component Name Cost ($) Component Description 7 subproject in a village The percentage of villages directly assisted by a subproject in a project area 30 months Project Management, Monitoring, and Evaluation $340,000 (including contingencies) The component will support the following activities: (i) overall project coordination, supervision, management, and reporting (to be assisted by the project consultant); (ii) preparation of work plans and implementation guidelines and procedures for the use of grant financing; and (iii) an independent poverty impact assessment and annual independent audit. The existing PIU, established under previous and ongoing loans and TA, will be the Implementing Agency under implementation arrangements described in Appendix 3. A deputy executive director will be added to the PIU to ensure that it has sufficient capacity to implement the Project and other ADB road projects. The deputy executive director will spend at least 50% of his or her time in the field. The international consultant will be appointed as the project manager, who will exercise oversight and control over PIU activities. A local social development consultant will carry out the baseline social survey, follow up surveys, and project completion poverty impact assessment, in coordination with Phases 1 and 2 of Social Impact Assessments [TA and TA 4382 (footnote 7)]. Annual financial audits will be conducted by an independent auditor that has adequate knowledge and experience of international accounting practices and is acceptable to ADB. Monitorable Deliverables/Outputs Comprehensive project work plan, implementation schedule, and guidelines prepared in adherence to the grant implementation memorandum Funds allocated for each component used cost-effectively Effective day-to-day project monitoring and final evaluation All report preparation including inception, quarterly progress, completion, financial, and poverty impact assessment reports timely and of good quality Penetration into villages of other poverty alleviation interventions (schools, health clinics, nutrition programs, and social services) facilitated ADB main road projects enjoy enhanced poverty reduction 3 ADB Technical Assistance to the Republic of Tajikistan for Preparing the Second Road Rehabilitation Project. Manila.

12 8 impact and compounded socioeconomic benefits Implementation of Major Activities: Number of months for grant activities 36 months 2. Financing Plan for Proposed Grant to be Supported by JFPR Financier Amount ($) JFPR 1,800,000 Government 245,956 (including in-kind contribution) Other Sources (communities) 254,044 (including in-kind contribution) Total 2,300, Genesis 1. Tajikistan is the poorest country among the Central Asian republics and one of the poorest in the world, with a per capita gross domestic product (GDP) of $236 and a poverty incidence of at least 64% in The average wage is less than $1 per day. 5 Tajikistan is a landlocked country dependent on transportation by road. The entire road network was constructed before the country s independence in 1991 and was well maintained until then with substantial budgetary support from the former Soviet Union. Inadequate funding since 1991 and frequent floods and landslides have left the roads, and particularly the more remote rural roads, in poor condition. This constrains the rural population s access to basic socioeconomic facilities and opportunities. The Government established a road fund in the past, but it was wound up in 2000 to meet an International Monetary Fund requirement to maintain a single, consolidated state budget. Road maintenance is now funded through the general state budget. 2. MOT is responsible for planning and coordinating maintenance of the country s road network. MOT has 13,700 km of roads under its jurisdiction, including all national roads (4,700 km) and 42% of local roads (9,000 km). The 12,300 km of local roads not under MOT jurisdiction come under local government responsibility. Several barriers to achieving required rural road maintenance are (i) insufficient and uncertain maintenance funding since independence, (ii) inadequate local capacity to finance and to carry out road maintenance, and (iii) the lack of a rural road network planning system or even of a reliable road network inventory. At present, most interventions by MOT respond to emergency maintenance needs arising from landslides and floods. Preventative maintenance and progressive safety improvement are rare. 3. Over 300,000 people 6 live in the six rayons (districts) comprising the local hinterland of Phase I and Phase II of the ADB main road investment program (see map 1 and map 2). The majority live in mountainous rural areas where poverty is particularly severe. The incidence of poverty in the project area is estimated at 67%, higher than the national average. 7 Much of the farm and grazing lands are hillsides of marginal fertility and highly susceptible to erosion. 4 ADB. Country Strategy and Program Update ( ): Tajikistan. Manila. The poverty incidence is based on a poverty line of $2.15 purchasing power parity per capita per day. 5 International Monetary Fund Country Report No. 03/10. Washington, DC. 6 Nearly 5% of the total Tajik population. 7 ADB Technical Assistance to the Republic of Tajikistan for Preparing the Dushanbe Kyrgyz Border Road Rehabilitation Project (Phase II). Manila.

13 Potatoes, vegetables, and fruit are the principal crops. The Phase II project area produced over 14,000 tons of fruit in 2003, or 16% of national output, but this was only half of its 1990 production. The main ADB project road is vital, providing the only substantial link between the Rasht Valley and the capital, Dushanbe. Perishable fruits require rapid transport from the field to the principal marketplace to be saleable. Rural roads extend as far as 20 km up side valleys or parallel to the Rasht River. They provide poor residents with access to education, healthcare and local markets. At present, traffic is relatively low, with fewer than 10 vehicles per day. Bus services are rare, mainly because of the poor state of the roads. Seasonal truck traffic to bring in seed and fertilizer, and later take out produce to market, is vital to rural communications. 4. The Project integrates fully with the ADB s country assistance strategy (see section C) and consistent with the Government s overall and sectoral plans and priorities. The project design incorporates lessons learned from ADB s loan and TA operations in Tajikistan and other projects implemented by international aid organizations. The ADB impact evaluation study on rural roads recommends devolving responsibility for rural road maintenance to local communities to ensure sustainability. Experience in Asia and Africa over the past 40 years shows that a principal means for the poor to gain direct benefits from rural road programs is through paid employment for carrying out the work. 8 The Project will pilot test a communitybased maintenance system for rural roads. It will directly target the rural poor by using laborintensive methods to generate employment and income in the most poverty stricken areas. About 35% of the poor in the project area will benefit from improved access, at reduced cost, to basic social, economic, and income-generating activities. 5. The Project was formulated in close consultation with MOT, local governments, CBOs such as jamoat 9 development communities (JDCs), local communities, relevant donors, and international organizations. The project scope is carefully defined and outlined in a memorandum of understanding signed on 7 June In accordance with the Government's policy to decentralize infrastructure provision, the proposed Project will be implemented in communities with assistance provided by local governments and JDCs. A desk review anticipated no adverse environmental impacts. The Field Review Mission concluded that, as project activities will be limited to the maintenance and minor repair of existing roads, no resettlement or indigenous-people issues will arise or require mitigation under ADB's safeguard polices. 4. Innovation 6. Innovative approaches to address the challenge of rural road accessibility are essential to all project components. The Project will (i) disseminate project information widely to the general public via mass media; (ii) mobilize community resources by using CBOs such as JDCs; (iii) establish village maintenance funds and build ownership by local communities; (iv) improve the liquidity and financial capacity of local small contractors; and (v) adopt cost-effective and innovative techniques such as spot improvement, labor-intensive approaches, and low-cost structures. 7. The management of road infrastructure in Tajikistan was hidden from public view in the past because it was centrally planned, with no public participation called for. Tajik communities are not yet sufficiently informed and motivated to act spontaneously to preserve the road assets that they have inherited. An innovative approach of the Project will be to fill this deficit of 9 8 ADB Impact of Rural Roads on Poverty Reduction. Manila. 9 Jamoat is Tajik for village cluster, the lowest administrative division.

14 10 information and awareness, without which active community interest, support, and participation will be difficult to nurture. The Project will use mass media (local newspapers posted at local markets) to disseminate project information at low cost, with wide outreach to the general public. A briefing will be prepared for central and local governments. The content and objectives will be the same as for the local briefing but targeting all relevant decision makers in government. This will draw greater government attention to the issue of rural road maintenance in order to address the needs of the rural poor. MOT, as the Executing Agency, has committed to making available, promptly upon need, the required funds, facilities, services, and other resources for carrying out the proposed Project, and to operate and maintain the improved roads after completion. 8. The Project will provide sufficient incentive for beneficiaries to treat project funds as their own and motivate them to demand least-cost subproject design, monitor subproject construction, and take good care of the rural roads after subproject completion, including timely and preventive road maintenance. To change the legacy of the former Soviet Union culture and provide sufficient funds for maintaining the project roads after project completion, cash or in-kind contributions from the community will be required prior to approval of subprojects. The cash or in-kind contribution will be collected by the local CBO as an initial village maintenance fund, which will be used solely for future operation and maintenance (O&M) costs. The Project will offer matching funds for communities contributions as a key subproject selection criteria (see Appendix 3). A statement of understanding between local communities and CBOs will be reached, making it clear that communities granted a subproject will not receive assistance for future O&M. A written agreement will then be reached between CBOs and the PIU to ensure that local village maintenance funds are established, cash or in-kind contributions to maintenance activities are forthcoming, and subsequent maintenance is carried on after project completion. These will be preconditions for subproject approval. The village maintenance funds established under the Project will mitigate the risk that secured funding for O&M may be lacking after project completion. 9. Small contracting firms recognized and registered within the target communities have mechanized equipment but no spare parts. The Project will inject liquidity into local contracting firms by providing as an advance up to 25% of the contract value. A guarantee will be required from contracted firms similar to those required by existing microcredit facilities (for real estate, livestock, etc.) managed by JDCs. No interest will be charged if the credit is reimbursed by work performed within 4 months of the advance. This is an innovative solution for optimal remobilization and utilization of the mechanical equipment owned by small, community-based contractors. 10. The Project emphasizes innovative, least-cost solutions for providing locally affordable access to as much of the rural population as possible, rather than a high access standard for a few. In view of resource constraints, cost-effective and innovative techniques, labor-intensive approaches, and low-cost structures to tackle existing obstacles (such as spot improvement) will be recommended. An assessment was made during the project fact-finding mission regarding damaged bridges. Small bridges have short life spans due to the violent and unpredictable flooding to which the rural valleys are subject. The technical approach up until now has been to rebuild the flood-destroyed structures and embankments. The fact-finding mission observed that local communities in Fasaibod jamoat have collected fees to rehabilitate the bridge three times. However, the bridge has been destroyed within a decade of reconstruction, mainly because the site estimates of floods have been too low. The Project will introduce an innovative, low-cost causeway-and-ford approach to substitute for ruptured bridges over rivers. 10 These innovative 10 DFID Overseas Road Note 20 Management of Rural Road Networks. London. This appropriate technology is innovative for Tajikistan but has been successfully used in many other countries for years.

15 structures will be much cheaper than bridges, more solidly footed on the riverbed, and more resistant to flood damage. Furthermore, both the construction and maintenance of these crossings are labor intensive and relatively straightforward to plan and to carry out. 5. Sustainability 11. The rural poor will receive benefits through direct employment and, for many years after the project ends, improved transport. However, the sustainability of all roads hinges on the timely execution of routine maintenance, which in turn requires technical expertise and financial resources. The Project includes robust practical training to ensure the longevity of the results created during the Project. The first batch of project training seminars will be introductory, aiming to present the principles to local communities, CBOs, government, MOT RMUs, and representatives of the National Transport Institute of Tajikistan (a technical university). Following the introductory seminars, two groups comprised of 6 trainees each will be selected for surveys and on-the-job training. Overseeing the rural road networks in the six rayons will require only two or three SNMs, and then only part time for follow-up planning in later years. Training a larger number of staff allows for some dropouts and for some of the participants to be trainers in other localities. Local ownership supported by technical expertise will reinforce the sustainability of road maintenance. Practical training will include community awareness of the need to ban trucks heavy enough to jeopardize road surface and bridges. 12. Experience elsewhere in the world shows that small private enterprises can produce higher quality work at a lower cost than traditional direct-labor forces employed by the state. At present, few small-scale local road contractors able to execute basic road maintenance effectively have emerged in the project area. These contractors and other firms or community groups that show interest and capacity will be trained in both technical and management aspects. Demonstration projects will be carried out to give them practical training in rural road works. Seminars will be conducted to teach good practice in finance planning, tendering, contract administration, environmental awareness, and worksite safety. Contractor training will impart confidence and self sufficiency to small local contractors and community groups. It will engender a can-do attitude to road maintenance. The impact of the Project will be highly apparent in the rural communities. 13. It has been found that accepting bids for routine roadwork solely from local contractors not only ensures local employment and job opportunities but also harnesses individual contractors wish to perform well in front of their neighbors. Additionally, local contractors become the eyes and ears of the road owners and will often highlight potential problems before they occur. This is a model for developing small works contractors, some of whom may quickly grow into the small and medium enterprise category if given the chance. The government plans to privatize the traditional force-account RMUs in line with the ongoing policy dialogue with ADB and accompanying TA project recommendations. The RMUs will be eligible to tender for work and thus advance into the private sector. 14. To ensure road safety, the Project will procure road maintenance site safety equipment, such as barriers, reflective cones and vests, and protective gloves, and loan it contractors. At the end of contracts, this equipment will be retained for future use by CBOs, who will own it upon completion of the Project. 15. Village maintenance funds created under the Project will be secured for funding future O&M (see para 8). The sustainability of the Project and its benefits will also depend on the 11

16 12 continuity of the service delivery mechanisms (JDCs, SNMs, and small-scale contractors) created by the Project. Using existing JDCs, instead of hiring NGOs or establishing new village groups, will save time and resources and improve sustainability. The JDCs began functioning well before the Project and will continue to operate after project completion. The Project will train sufficient SNMs for future rural road network planning and management (see para 11). And small, labor-intensive contractors will be capable and strong enough to continue operations for general maintenance of minor roads and routine maintenance of major roads after the Project. It is expected that maintenance job opportunities will be created after project completion to increase the income of the rural poor in the project area. All of these factors will assure sustainability. 6. Participatory Approach 16. To achieve poverty-reduction objectives, affected local communities will lead a demanddriven, participatory approach. Thorough grassroots fieldwork at the project design stage is to ensure that the Project reflects community priorities and needs. Socioeconomic surveys conducted for the ADB main projects, and field interviews during JFPR fact-finding missions, show that local beneficiaries prioritize basic road access and direct income-generating activities such as labor-intensive road maintenance. Local communities recognize that their lack of road access is a critical constraint on the socioeconomic development of villages. The rural poor in the project area survive by subsistence agriculture, animal husbandry, and occasional paid work at peak times such as during the cotton harvest. The scheduling of the project works will take into account of the rural labor cycle by trying to time project activities for slack periods. This will ensure that community participation is genuinely pro-poor and inclusive and will contribute to the sustainability of investments. An annual rural road maintenance plan will be used as a key tool in the participatory process. Road priorities will be chosen on the basis of extensive participatory discussion. In line with the increasing decentralization of the provision of rural road services in Tajikistan, and in order to build ownership and mobilize local resources, the planning, monitoring, and evaluation processes under the Project will be participatory. 17. To ensure effective participation, the Project will employ JDCs professionally trained by UNDP in participatory methods. The project manager and his team, in consultation with JDCs and local communities, will conduct a low-cost inventory and condition survey of the local transport network, including roads, tracks, trails, paths, and footbridges, with a focus on existing obstacles. In each of the Project s 3 years, field surveys will bring the project manager and his team into close contact with the communities in the project area. This will extend to quite remote corners of the project hinterland. On the basis of information generated and additional social, economic, and demographic information, annual and strategic rural road maintenance plans will be formulated with greater involvement of local communities and governments, MOT, and its local RMUs. Stakeholders will cooperatively decide upon desired road maintenance subprojects, taking into account the project objective and available resources. Establishing the priorities under the Project requires a selection process consisting of a combination of screening and ranking procedures and cost-effective analysis. Basic selection criteria have been agreed for the selection of subprojects (see Appendix 3), and analyzing these criteria will be done through participatory discussion during implementation. 18. The information dissemination activities mentioned in section B4 are intended to stimulate further community interest and involvement. A short briefing and press release about the Project and rural road maintenance action plans will be prepared in laymen s terms in Tajik, Russian, and English and distributed to all concerned stakeholders. It will seek to (i) stimulate community interest, participation, and ownership of the rural road network and the Project and (ii) attract

17 13 additional funding from the central and local governments and support from other institutions and local communities. 19. Most of the JFPR grant will be available for small civil works adopting a labor-intensive approach. Although employment on the Project is temporary, the short-term injection of cash is expected to provide the necessary start-up capital for the poor to diversify livelihoods. Cultivation of such high-value and perishable goods as fruit, milk, and honey will be facilitated by improving rural roads and ensuring their maintenance. In turn, this stimulation will lead to sustained community participation. After the roads have been brought up to a maintainable standard, the communities will be expected to carry out maintenance in accordance with the agreements made between the CBOs and the beneficiary communities. 20. Project implementation will occur in three phases, each lasting a year. In the first year, the formal framework for community participation will be established. In the second year, road maintenance works will be undertaken by small contractors and community groups. In the third year, the communities themselves will assume most of the responsible for project activities. The JDCs will be invited to nominate professional engineering service providers for preparing the fairly simple sketches and specifications that will be required for civil works. This will reinforce and diversify the communities comprehensive involvement in the Project. The communities and their JDCs will take the lead role in the Project during its final year with support from the project manager and his small team (see Appendix 3). Primary Beneficiaries and Other Affected Groups and Relevant Description The primary beneficiaries are the rural poor in the project areas, including the poorest, who will benefit from the following: higher per capita income, less unemployment, less poverty, higher production of cash crops, higher profitability for agriculture products because of reduced transport costs, lower prices paid by local residents for agricultural inputs and other goods because of reduced transport costs, increased future employment opportunities, better access to education and healthcare and easier social exchanges and mobility, enhanced capacity and know-how on road maintenance, increased connectivity, and mitigated isolation and poverty. Other Key Stakeholders and Brief Description Other key stakeholders and their benefits include MOT, which will benefit from improved road maintenance planning and execution and an effective mechanism for rural road maintenance to reduce road asset losses; MOT s local RMUs, which will gain road maintenance capacity by participating in civil works tenders; local government, which will derive social and economic development from improved roads; local CBOs (such as JDCs), which will increase their capacity and experience from rural infrastructure projects; and about 25 small-scale contractors, which will gain training and experience enabling them to effectively deliver labor-intensive road construction and maintenance services. 7. Coordination 21. This project proposal was developed though a participatory approach including all stakeholders. Project preparation involved field visits and interviews as well as consultations with

18 14 the Embassy of Japan in Tajikistan, 11 UNDP, World Bank, National Social Investment Fund of Tajikistan, 12 Aga Khan Foundation, 13 JDCs in Nurobod and Faisabod, and local residents. JDCs are the linchpins of UNDP s implementation of local development projects, which aim to increase community representation, participation, and ownership in all aspects of development assistance, and which are, accordingly, homegrown and appropriate to the rural areas where they are established. 22. Sixty-eight JDCs were formed by UNDP during in each jamoat of the valley to address community needs in a sustainable manner. JDC members have been trained by UNDP in tendering, monitoring, reporting, and financial oversight of small-scale projects skills that are much needed to implement the Project. Experience has shown that CBOs have the advantage of long, continuous presence in each village, which is something that outside NGOs generally lack, being present only on a project-by-project basis. Furthermore, CBOs that were engaged as NGOs to work with their own members seem to be more accountable to beneficiaries than NGOs from outside. 14 The JDCs in the project area have worked with the local government and local communities for many years. The Project will build on their experience in other domains, such as irrigation, education, micro-credit, and water supply, for the planning, monitoring, and evaluation of rural roads maintenance. 23. The Tajikistan Resident Mission was officially inaugurated in November 2003 and now provides a permanent focal point for ADB to strengthen coordination with other development partners and external funding agencies in the country. Aid coordination in the transport sector already exits and includes such key external agencies as the United States Agency for International Development, Islamic Development Bank, Kuwait Fund, and European Bank for Reconstruction and Development. So far, no Japanese agencies are active in the transport sector in Tajikistan. The Project will become a good information source for Japanese agencies when they start plans for working in the Tajik transport sector. 8. Detailed Cost Table 24. The summary and detailed cost estimates presented in Appendixes 1 and 2 are based on locally tendered prices and preliminary quantity estimates. JFPR and counterpart funds will finance minor repair and maintenance of about 350 km of rural roads. C. Linkage to ADB Strategy and ADB-Financed Operations 1. Linkage to ADB Strategy Document Country Strategy and Document Number Sec. M Date of Last Discussion 3 September 2003 Objective(s) ADB s operational strategy 15 in Tajikistan focuses on promoting economic growth through (i) rural development, including 11 Koichi Miyoshi, chargé d affaires, and Koji Ono, second secretary. 12 The umbrella organization for the World Bank s grassroots initiatives. 13 Operator of the Mountain Societies Development Support Program in the project area. 14 ADB Effectiveness of Participatory Approaches: Do the New Approaches Offer an Effective Solution to the Conventional Problems in Rural Development Projects? Manila. 15 ADB Country Strategy and Program ( ) Tajikistan. Manila.

19 15 Document Program ( ) Document Number Date of Last Discussion Objective(s) improving transport and other infrastructure; and (ii) regional cooperation, including rehabilitating transport links to neighboring countries. ADB activities and strategy in transport includes (i) improving and rehabilitating main roads and railway links to neighboring countries as well as carefully targeted rural feeder roads; (ii) accelerating transport sector reform by supporting regulatory and institutional reform; (iii) improving costrecovery mechanisms for road operation and maintenance; and (iv) introducing internationally comparable safety and technical standards. Poverty reduction partnership agreement between Tajikistan and ADB IN December 2002 This agreement aims to achieve the Millennium Development Goals of halving, between 1990 and 2015, the proportion of people (i) whose income is less than one dollar a day and (ii) who suffer from hunger. Specifically, by 2015, the poverty rate in Tajikistan will be reduced from 82.6% in 1999 to 58%. TA3602- TAJ R December 2002 The main objective of TA for Institutional and Policy Support to the Transport Sector is to help MOT continue the implementation of market-oriented policy reforms in the transport sector, with a particular focus on road transport. 2. Linkage to Specific ADB-Financed Operation Project Name Dushanbe-Kyrgyz Border Road Rehabilitation Project (Phase I) Project Number Loan 2062-TAJ Date of Board Approval 27 November 2003 Loan Amount ($ million) $15,000,000 (Asian Development Fund) 25. In addition, Phase II of the Dushanbe-Kyrgyz Border Road Rehabilitation Project is expected to be approved in November 2005 (see Map 1). 3. Development Objective of the Associated ADB-Financed Operation: 26. The objective of the Loan Project (Phase I) is to (i) alleviate poverty by reducing the cost of road transport and improving access to markets and (ii) increase regional trade and

20 16 cooperation by rehabilitating the road linking Dushanbe to Nurobod in the Rasht Valley, and on to the Kyrgyz Republic and People s Republic of China. The Project will (i) reduce transport costs on the Dushanbe-Kyrgyz border road; (ii) provide agricultural and industrial enterprises with all-weather access to markets within the country and, eventually, abroad; (iii) improve access for the poor rural population to market opportunities, other economic activities, and social services by improving rural roads; and (iv) strengthen the Government s institutional capacities for efficiently managing the national road network. The Project will also generate construction employment for local residents. The Project comprises the improvement of about 140 km of the mostly two-lane highway from Dushanbe to Nurobod, through (i) minor works on the section encompassing kilometers 9 22, rehabilitation of kilometers 22 95, and minor rehabilitation of kilometers ; (ii) improvement of 77 km of rural roads in the project area; (iii) consulting services for construction supervision, monitoring, and evaluation and the implementation of measures to improve road safety, auditing, and project management; and (iv) procurement of maintenance equipment for use in routine and periodic maintenance of the improved road sections. 4. List the Main Components of the Associated ADB-Financed Operation: No. Component Name Brief Description 1. Civil Works Improvement of about 140 km of the mostly two-lane highway from Dushanbe to Nurobod, through minor works on kilometers 9 22, rehabilitation of kilometers 22 95, and minor rehabilitation of kilometers Improvement of 77 km of local roads in the project area. 2. Consulting Services Consulting services for construction supervision, monitoring, and evaluation and the implementation of measures to improve road safety, auditing, and project management. 3. Equipment Procurement of maintenance equipment for use in routine and periodic maintenance of all of the improved road sections. 5. Rationale for Grant Funding versus ADB Lending 27. The proposed Project is directly linked to the loan and the accompanying TA and will maximize the benefits of both. The Government has strongly requested that ADB provide grants for rural road maintenance. Traffic on rural tertiary roads is sparse due to several interdependent factors including the (i) poverty of the rural populations, (ii) poor state of the roads, and (iii) high cost of using them. Loan allocations for local roads have been limited to secondary access roads. Furthermore, ADB loans focus on rehabilitating national and regional roads and do not finance road maintenance. 28. The proposed JFPR activities require flexibility in the development of appropriate organizational mechanisms and appropriate community-accessible technology before expanding the Project on a fuller scale. The proposed activities require the close involvement of local communities and officials. It would not be possible to organize such interfaces under a regular loan. The Project will demonstrate the effectiveness and sustainability of the pilot-test

21 17 community-based road maintenance system and provide the resources required to develop and adapt the concepts to circumstances in Tajikistan, and so replicate the project impact on poverty reduction in Tajikistan. D. Implementation of the Proposed Grant Provide the Name of the Implementing Agency Project Implementation Unit 29. The Executing Agency is MOT, and the Implementing Agency is the Project Implementation Unit (PIU). All procurements under the JFPR grant will be conducted in accordance with ADB s Guidelines for Procurement. Local CBOs and consultants will be contracted in accordance with ADB s Guidelines on the Use of Consultants. 1. Risks Affecting Grant Implementation Type of Risk Brief Description Measure to Mitigate the Risk Governance Problems of corruption associated with low pay and weak governance ADB policies and guidelines on controlling corruption, procurement, financial reporting, and auditing will be strictly adhered to. Capacity building will also focus on transparency, accountability, benching performance level, and financial management by the JFPR project manager. Local community members will also be mobilized to monitor each process and fund use. Inadequate maintenance after the project completion Project roads may not be properly maintained after completion so that the full benefit of the Project will not be realized To mitigate the risk, the selection of subprojects will focus on communities with the highest demand and willingness to pay into village maintenance funds created under the Project. Local communities will gain ownership and capacity after project completion. Local communities will commit to undertake routine maintenance before subproject approval. 2. Incremental ADB Costs Component Incremental Bank Cost Amount requested $0 Justification Not applicable Type of work to be rendered by ADB Not applicable

22 18 3. Monitoring and Evaluation Key Performance Indicator Number of the rural poor who benefit from the Project Number of poor households in a village before and after a subproject investment, measured in terms of per capita expenditure, food consumption, etc. Percentage of households and villages directly assisted by a subproject investment Medium-term subnetwork maintenance plan ( ) prepared with financing requirements Number of rural poor employed Number of SNMs identified and trained Length and condition of rural network maintained in the project area Number of small-scale contractors trained and operating in the project area Reporting Mechanism Baseline surveys Progress reports Government statistical data Follow-up surveys Social impact assessment (SIA) Implementation completion memorandum (ICM) Baseline surveys Progress reports Follow-up surveys Government statistical data SIA and ICM Baseline surveys Progress reports Follow-up surveys Government statistical data SIA and ICM Progress report Project administration missions (PAMs) Contractor monthly progress reports Baseline surveys Follow-up surveys SIA and ICM Inception report Progress report PAMs SIA and ICM Baseline surveys Progress reports Follow-up surveys PAMs SIA and ICM Baseline surveys Progress reports Follow-up surveys Plan and Timetable for M&E Baseline survey in 2006 Quarterly report Semi-annual report Final reports (SIA and ICM) Baseline survey in 2006 Quarterly reports Semiannual reports Final reports (SIA and ICM) Baseline survey in 2006 Quarterly reports Semiannual reports Final reports (SIA and ICM) Semiannual reports Annual PAM back to office reports (BTORs) Final reports (ICM) Monthly progress reports Semiannual reports from MOT Final reports (SIA and ICM) Quarterly reports Semiannual reports Annual PAM BTORs Final reports (SIA and ICM) In 2006: Quarterly reports Semiannual reports Annual PAM BTORs Final SIA and ICM Baseline surveys in 2006 Quarterly reports Semiannual reports