|
|
|
Suggested Weighting
|
Compliance Score
|
Notes
|
|
|
|
|
|
|
|
|
1.
|
LESSONS
FROM PAST PROJECTS
|
|
|
|
|
|
(a)
|
Were
finance-related covenants met (for instance, revenue-generating
targets, following up on agreed financial restructuring, adhering
to expected financial ratios etc)?
|
|
|
|
|
|
(b)
|
Were
counterpart funds made available on a timely basis?
|
|
|
|
|
|
(c)
|
Were
adequate funds made available for operations and maintenance
(O&M)?
|
|
|
|
|
|
(d)
|
Were
Financial Statements and Auditor reports submitted in a timely
manner?
|
|
|
|
|
|
(e)
|
Were
auditors' reports unqualified?
|
|
|
|
|
|
(f)
|
Was
there an absence of weaknesses in handling finances or in
procurement?
|
|
|
|
|
|
(g)
|
Were
onlending and relending activities free of problems?
|
|
|
|
|
|
(h)
|
Were
capacity-building programs effective in relation to financial
management?
|
|
|
|
|
|
|
Total
|
|
100
|
|
|
|
|
|
|
|
|
|
|
2.
|
PROJECT JUSTIFICATIONS, COST ESTIMATES, FINANCIAL
ANALYSIS
|
|
|
|
|
|
|
Project
Justifications
|
|
|
|
|
|
(a)
|
Is the
project financially sustainable?
|
|
|
|
|
|
(b)
|
Have
cost-recovery mechanisms and pricing issues been adequately
considered?
|
|
|
|
|
|
(c)
|
Has
an affordability study been conducted on proposed prices (tariffs)?
|
|
|
|
|
|
(d)
|
Are
the proposed prices and tariffs supported by willingness to
pay?
|
|
|
|
|
|
|
Subtotal
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Analysis
|
|
|
|
|
|
(a)
|
Have
the detailed FIRR calculations been undertaken in accordance
with these Guidelines?
|
|
|
|
|
|
(b)
|
Are
the detailed FIRR calculations reasonable?
|
|
|
|
|
|
(c)
|
Have
the detailed WACC calculations been undertaken in accordance
with these Guidelines?
|
|
|
|
|
|
(d)
|
Are
the detailed WACC calculations and assumptions reasonable?
|
|
|
|
|
|
(e)
|
Does
FIRR exceed WACC and, if not, are there reasonable justifications
for proceeding with the project?
|
|
|
|
|
|
(f)
|
Have
sensitivity analyses been conducted in accordance with these
Guidelines?
|
|
|
|
|
|
|
Subtotal
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
Project
Cost Estimates
|
|
|
|
|
|
(a)
|
Has
the Project Cost Estimate summary table been prepared in accordance
with these Guidelines?
|
|
|
|
|
|
(b)
|
Are
detailed project cost estimates available and have they been
prepared in accordance with these Guidelines?
|
|
|
|
|
|
(c)
|
Are
the assumptions that support the estimates available and do
they appear reasonable?
|
|
|
|
|
|
(d)
|
Have
Local and Foreign costs been properly identified?
|
|
|
|
|
|
(e)
|
Are
the physical and price contingency provisions adequate?
|
|
|
|
|
|
|
Subtotal
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Projections
|
|
|
|
|
|
(a)
|
Have
the assumptions and bases that underlie the financial projections
(e.g., cash flows, income, expenses and other financial projections)
been provided?
|
|
|
|
|
|
(b)
|
Are
the assumptions that underlie the financial projects reasonable?
|
|
|
|
|
|
(c)
|
Are
provisions adequate (for instance, bad debts, nonrevenue water
and power supplies, and technical losses)?
|
|
|
|
|
|
(d)
|
If the
projections were prepared by the financial analyst or by consultants,
does the borrower "own" the projections?
|
|
|
|
|
|
(e)
|
Have
relevant financial ratios been computed and analyzed in accordance
with the Guidelines?
|
|
|
|
|
|
|
Subtotal
|
|
100
|
|
|
|
|
Total
|
|
350
|
|
|
|
|
|
|
|
|
|
|
3.
|
EXECUTING AGENCIES AND IMPLEMENTING AGENCIES
|
|
|
|
|
|
(a)
|
Has
the past financial performance of the EA/IA been analyzed?
|
|
|
|
|
|
(b)
|
Has
a ratio analysis of the EA/IA financial statements been conducted?
|
|
|
|
|
|
(c)
|
Are
the financial management capabilities of EA and IA adequate?
|
|
|
|
|
|
(d)
|
If the
financial management system is not adequate, is proper rectification
proposed in Project capacity building component?
|
|
|
|
|
|
(e)
|
Are
properly trained and qualified staff in place to manage finances?
|
|
|
|
|
|
(f)
|
If there
are other ongoing operations, have financial details been
provided and are these reasonable?
|
|
|
|
|
|
(g)
|
Have
EA/IA budgets and forecasts (excluding the project) been provided?
|
|
|
|
|
|
(h)
|
Does
the EA/IA have processes in place to prepare or update budgets
and forecasts on a regular basis?
|
|
|
|
|
|
(i)
|
Where
the EA/IA is not a government department, state government
body or local government body, is its capital adequate to
support operations and to execute or implement the project?
|
|
|
|
|
|
(j)
|
If the
EA/IA is a newly-established institution, is there any mechanism
to ensure that sound and solid financial management system
will be incorporated into the new organizational structure?
|
|
|
|
|
|
|
Total
|
|
200
|
|
|
|
|
|
|
|
|
|
|
4.
|
FINANCING PLAN (FP), FINANCE-RELATED RISKS AND ASSURANCES
|
|
|
|
|
|
|
Financing
Plan
|
|
|
|
|
|
(a)
|
Has
the FP summary table been prepared in accordance with these
Guidelines?
|
|
|
|
|
|
(b)
|
Do relending
and onlending arrangements appear to be reasonable?
|
|
|
|
|
|
(c)
|
Does
the FP indicate that adequate counterpart funds will be available
in a timely manner?
|
|
|
|
|
|
(d)
|
Are
local cost financing arrangements in line with ADB policy
(OM11)?
|
|
|
|
|
|
|
Subtotal
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
Finance-Related
Risks
|
|
|
|
|
|
(a)
|
Have
risks regarding the timely availability of adequate counterpart
funds been minimized?
|
|
|
|
|
|
(b)
|
Have
risks regarding the timely availability of adequate funds
for operations and maintenance been minimized?
|
|
|
|
|
|
(c)
|
Have
risks regarding the availability of staff to manage financial
management activities been minimized?
|
|
|
|
|
|
|
Subtotal
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
Assurances
|
|
|
|
|
|
(a)
|
Have
adequate assurances been obtained in relation to measures
to counter finance-related risks (see above)?
|
|
|
|
|
|
(b)
|
Have
adequate assurances been obtained that proposed pricing formulas
will be implemented?
|
|
|
|
|
|
(c)
|
Have
adequate assurances been obtained that efficiency improvements
and capacity building in relation to financial management
will be undertaken?
|
|
|
|
|
|
(d)
|
Have
adequate assurances been obtained that financial covenants
will be implemented and monitored as agreed?
|
|
|
|
|
|
|
Subtotal
|
|
50
|
|
|
|
|
Total
|
|
150
|
|
|
|
|
|
|
|
|
|
|
5.
|
ACCOUNTING, AUDITING, PROCUREMENT
AND DISBURSEMENT ARRANGEMENTS
|
|
|
|
|
|
|
Accounting
and Auditing
|
|
|
|
|
|
(a)
|
Have
arrangements been made to ensure the timely submission of
quarterly reports?
|
|
|
|
|
|
(b)
|
Have
actions been taken to select and engage auditors in accordance
with these Guidelines?
|
|
|
|
|
|
(c)
|
Have
arrangements been made to support the timely submission of
audited annual reports (within six to nine months) including
audit reports on special agreements such as SOEs?
|
|
|
|
|
|
(d)
|
If in
the past government audits were either not satisfactory or
not available, has the appointment of private auditors and
funding to cover cost of such appointments been considered?
|
|
|
|
|
|
(e)
|
Have
arrangements been made so that the audits cover entire project
activities? (e.g., in case the fund is channelled from the
EA to provinces and districts, the arrangement should be to
audit provincial and district levels as well as the central
level).
|
|
|
|
|
|
|
Subtotal
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
Procurement
and Disbursement Arrangements
|
|
|
|
|
|
(a)
|
Has
adequate attention been given to anticorruption measures?
|
|
|
|
|
|
(b)
|
Have
the funds flow arrangements been defined clearly?
|
|
|
|
|
|
(c)
|
Have
the appropriate disbursement procedures (such as SOE and Imprest
Account) been proposed in consideration of the project's needs
and EA and IA's capability?
|
|
|
|
|
|
(d)
|
Are
adequate accounting and internal control procedures in place
at the EA and IA to manage the project fund?
|
|
|
|
|
|
|
Subtotal
|
|
100
|
|
|
|
|
Total
|
|
200
|
|
|
|
|
Grand Total
|
|
1,000
|
|
|
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