Subproject 2 will provide support to DMC agencies in monitoring project performance against the key performance indicators set out in the project agreements to ensure that services are delivered in accordance with the output specification. This will also include support to the DMC during project restructuring, provided that it was not caused by the public sector default or political risk event, except in the case of political force majeure. Subproject 2 resources will be made available to DMC agencies to bolster their capacity to manage PPP contracts. Experts will be deployed to assist DMC agencies to deal with performance management concerns and efficient contract renegotiation, if warranted.
| Project Name | Strengthening Project Preparation Capacity in Asia and the Pacific - Support for Ongoing Monitoring and Project Restructuring (Subproject 2) | ||||
| Project Number | 49407-003 | ||||
| Country | Regional |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Multisector / ADB's corporate management, policy and strategy development |
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| Gender Equity and Mainstreaming | No gender elements | ||||
| Description | Subproject 2 will provide support to DMC agencies in monitoring project performance against the key performance indicators set out in the project agreements to ensure that services are delivered in accordance with the output specification. This will also include support to the DMC during project restructuring, provided that it was not caused by the public sector default or political risk event, except in the case of political force majeure. Subproject 2 resources will be made available to DMC agencies to bolster their capacity to manage PPP contracts. Experts will be deployed to assist DMC agencies to deal with performance management concerns and efficient contract renegotiation, if warranted. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Asia's infrastructure demand is huge. While the Asian Development Bank (ADB) and the Asian Bank Development Institute (ADBI) study predicts that Asia will need to spend about $8 trillion from 2010 to 2020 just to maintain current economic growth, a report by PricewaterhouseCoopers estimated that Asia and the Pacific will need to spend $5.36 trillion annually on infrastructure by 2025 representing nearly 60% of the world's total. Infrastructure projects funded by national governments and development assistance, even when effectively delivered and implemented, will not suffice to address this growing infrastructure demand gap. Governments have a key role to play in promoting an enabling environment for private investment. The region's vast savings are ripe to be efficiently channeled to funding long-term investment needs, thus helping the region to realize its full growth potential and lifting millions out of poverty. Public private partnerships (PPPs) are an important way forward since they can offer an additional procurement approach by tapping the private sector's financial resources and skills in delivering infrastructure effectively and efficiently on a whole life cycle cost basis. Developing member countries (DMCs) are faced with the pressing challenge of lack of effective PPP project preparation. There is a shortage of well-prepared, bankable PPP projects where investors are sufficiently reassured by the commercial and technical feasibility, the risk allocation, the public sector's contractual commitment and capacity as well as the institutional and legal framework. |
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| Impact | Increased private sector investment in infrastructure projects | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Capacity of DMCs to manage, administer, and monitor PPP contracts increased |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Capacity of DMC agencies to monitor project performance is strengthened. Support to DMC agencies during project restructuring provided |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Regional |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | Different methods of consultant selection will be applied, depending on the size and nature of contracts. Individual consultants may be engaged independently or through a firm. Consultants will be engaged using the following procurement modalities: (i) quality- and cost-based selection method using a 90:10 ratio for technical and financial proposals; (ii) quality-based selection; (iii) consultant qualification selection; (iv) fixed-budget selection; and (v) single source selection, as appropriate. OPPP will set up an indefinite delivery contract (IDC) facility involving prequalification and retention, without commitment, for an initial two-year period. The facility may be used by ADB and DMC government agencies for engagement of consulting firms to be supported by the Facility. |
| Procurement | All procurement under the subproject will be carried out in accordance with ADB;s Procurement Guidelines (2015, as amended from time to time). |
| Responsible ADB Officer | Galiev, Almazbek |
| Responsible ADB Department | OPPP |
| Responsible ADB Division | OPPP |
| Executing Agencies |
Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550, Philippines |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | 20 Apr 2016 to 03 May 2016 |
| MRM | - |
| Approval | 28 Dec 2016 |
| Last Review Mission | - |
| Last PDS Update | 11 Jan 2017 |
TA 9290-REG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 28 Dec 2016 | - | 28 Dec 2016 | 31 Dec 2020 | - | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 2,860,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,860,000.00 | 28 Dec 2016 | 43,560.00 |
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