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Andhra Pradesh Municipal Development Project
(APMDP)
OPERATIONS MANUAL
Government of Andhra Pradesh
July 02, 2009
APMDP Operations Manual
ABREVIATIONS AND ACRONYMS
APMDP
LoA
Letter of Acceptance
APUSP
Andhra Pradesh Municipal
Development Project
Andhra Pradesh Urban Services
JNNURM
APUIF
APUP
CEAP
CEC
AP Urban Infrastructure Fund
AP Urban Project
Capacity Enhancement Action Plan
Capacity Enhancement Cell
LOI
LCB
MoA
MEPMA
CDMA
Commissioner and Director of
Municipal Administration
Capacity Enhancement Needs
Assessment
Central Social & Welfare Board
Centre for Good Governance
Consultants’ Qualifications
M&E
Jawaharlal Nehru National Urban
Renewal Mission
Letter of Invitation
Limited Competitive Bidding
Memorandum of Agreement
Mission for Elimination of Poverty in
Municipal Areas
Monitoring and Evaluation
MRAP
MSU
NCB
Municipal Administration and Urban
Development
Municipal Reform Action Plan
Municipal Strengthening Unit
National Competitive Bidding
Department of Town and Country
Planning
Designated Account
Detailed Project Reports
Empowered Committee
Environment and Social Report
Financial Advisor
Financial and Operating Plan
NPV
Net Present Value
OM
CAPART
PD
PHED
PPP
PCBP
Fixed Budget
Geographic Information System
Governance and Accountability Action
Plan
Government of Andhra Pradesh
Government Order
Grievance Redressal and Monitoring
System
PAC
PFS
PMRs
Operations Manual
Peoples Action and Rural Technology
Personal Deposit
Public Health Engineering Department
Public-Private Partnerships
Procurement Capacity Building
Program
Project Appraisal Committee
Project Financial Statements
Project Monitoring Reports
PWD
QCBS
QBS
Public Works Department
Quality and Cost-Based Selection
Quality-Based Selection
Request for Proposal
Schedule of Rates
Single Source Selection
Social and Environment Management
Framework
Technical Assistance
Urban Infrastructure Development
Scheme for Small and Medium Towns
Urban Local Bodies
Urban Management
Capacity
Withdrawal Applications
CENA
CSWB
CGG
CQS
DTCP
DA
DPRs
EC
ESR
FA
FOP
FB
GIS
GAAP
GoAP
GO
GRMS
MAUD
IPP
ISR
ITC
Initial Project Proposal
Initial Screening Report
Instructions to Consultants
RFP
SoRS
SSS
SEMF
IUFR
IRR
Interim Unaudited Financial Reports
Internal Rate of Return
TA
UIDSSMT
ICB
ITQ
International Competitive Bidding
Invitation to Quote
ULBs
UMC
LCS
Least Cost Selection
WA
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APMDP Operations Manual
Table of Contents
Sl.
No.
1
Subject
Pg. No.
Introduction
1–7
2
8 – 12
3
Chapter 1: Component A: State Level Policy and Institutional
Development
Chapter 2: Component B: Capacity Enhancement
4
Chapter 3: Component C: Urban Infrastructure Investment
17 – 30
5
Chapter 4: Component D: Project Management Technical Assistance
31 – 32
6
Chapter 5: Financing Framework for Sub-projects
33 – 35
7
Chapter 6: Management Structure
36 – 41
8
Chapter 7: Governance and Accountability Action Plan (GAAP)
42 – 47
9
Chapter 8: Monitoring & Evaluation
48 – 55
10
Annexure-1-
56 – 89
11
Annexure-2–
12
Annexure-3-
Procurement Framework and Procedures
Sub-project Cycle
13 – 16
90 – 90
Functions of working groups at ULB level
91 – 143
1. Annexure – 3(A) – Process for preparation of Initial Project
Proposal
2. Annexure – 3(B) - Municipal Reforms Action Plan
3. Annexure – 3(C) – Capacity Enhancement Action Plan (CEAP)
4. Annexure – 3(D) – Basic Data of ULB
5. Annexure – 3(E) – Data required for preparation of town wide
Infrastructure Improvement proposals.
6. Annexure – 3(F) – Operation and Maintenance Plan.
13
Annexure-4-
Initial Project Proposal
144 – 156
14
Annexure-5-
Initial Screening Report-Sample
157 – 158
15
Annexure-6-
ULB and CDMA/MSU Agreement (MOA)
159 – 163
16
Annexure-7-
Subproject Preparation Process, DPR Guidelines
164 – 173
17
Annexure-8-
Appraisal Note-Sample
174 – 180
18
Annexure-9-
Model Loan/Grant Sanction Letter
181 – 182
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APMDP Operations Manual
19
Annexure-10-
Model Sub-Loan/Grant Agreement
20
Annexure-11-
Model Loan Disbursement Format
215 – 218
21
Annexure-12-
Government Orders
219 – 284
10
Annexure-13-
11
Annexure-14-
12
Annexure-15-
28
Annexure-16-
15
Annexure-17-
20
Annexure 18 -
Format of Progress Report
297 – 299
21
Annexure 19-
300 – 311
22
Annexure 20-
HR Policy: Remuneration and Allowances to
Project Personnel
Procurement Plan for Consultancies
23
Annexure 21-
Procurement Plan for Works
316 – 330
24
Annexure 22-
331 – 340
25
Annexure 23-
Correspondences of importance with regard to
the Project Costs and Retroactive Funding
Memorandum of Agreement for the State
Institute of Urban Management and Academy
Flow of Funds & Claim Procedure
Sub-Project implementation monitoring &
(Reporting)
Staffing of MSU under APMDP; Staffing at the
APUIF office
IUFR Format (TO BE ADDED DURING
NEGOTIATIONS)
Financial Management and Disbursements
183 – 214
285 – 285
286 – 286
287 – 288
289 – 289
290 – 296
312 – 315
341 - 374
Note: This Operations Manual needs to be read together with:
1. Approved Social and Environment Management Framework (SEMF) for APMDP,
including Social / Environment Manuals
2. Bank Procurement Guidelines
iii
APMDP Operations Manual
Introduction
1.1
The Andhra Pradesh Municipal Development Project (APMDP) is a US $ 387.3 million
project being implemented by Government of Andhra Pradesh (GoAP) with support from
World Bank (Bank loan of US$ 300 million).
1.2 The project development objective is to help improve i) high-priority urban services in
selected ULBs of AP, and ii) the capacity of ULBs to develop and manage urban services.
Urban services to improve will be chosen and implemented by eligible ULBs who self select
themselves in a demand driven manner based on access criteria established under the
project which would be approved by the Steering Committee in the Government of AP. The
project will support improvements in the financial, technical, and management capacities of
all ULBs of AP through TA and as a condition for infrastructure financing. The project will
also pursue improvement of the state-level framework that defines ULBs’ autonomy,
accountability, and incentives for performance, as well as GoAP’s capacity to monitor, and
provide policy and technical support for, ULBs performance and development. The project
will also lay the groundwork for capacity building of the urban poor through studies and
community training centers.
Project Components
1.3
The four major components of the APMDP are as follows:
State Level Policy and Institutional Development Support, Component A, (cost US $ 9.2
million of which US $ 7.6 from Bank): This component includes support for improving the
State’s policy and institutional framework to support service delivery and capacity building
by ULBs. Activities include; studies and TA to help evaluate options to improve GoAP’s
systems of urban finance, studies and TA to help draft and implement streamlined town
planning procedures, establishment of a Geographic Information System (GIS) to support
monitoring and planning of urban development at the state level, and to support the
establishment of similar systems at ULBs, establishment of an AP Urban Academy and
preparation of a detailed program to implement the MEPMA
Municipal Capacity Enhancement, Component B, (US $ 14 million of which US$ 12.6 million
from Bank): This component provides aims at enhancing the financial and technical capacity
and operating systems of all ULBs (currently 124). Activities included are: professionalization
of ULB management: mainly through training of ULB staff in finance, management, Poverty
alleviation, planning, procurement, and engineering, technical assistance for preparation
and implementation of institutional, financial and operational improvements tailored to
individual ULBs and preparation of GIS maps and General Towns Plans for about 30 ULBs.
Urban Infrastructure Investment, Component C, (US $ 342 million of which US$ 259 million
from Bank): This component provides investment support (loans, project support grants and
guarantees) accessible to ULBs on the principles of self-selection for upgrading urban
services, such as water supply (improvements), solid waste management, urban roads,
street lighting, slum upgradation, and other select obligatory and discretionary municipal
services and approved by the Steering Committee in Government of AP. The investments
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APMDP Operations Manual
would be structured to complement the on-going JNNURM and UIDSSMT programs of GOI,
which support a significant number of ULBs, and the DFID funded AP Urban Services Project
(APUSP) that focused on improving slums in large cities. To be eligible, ULBs need adequate
financial capacity to sustainably finance and operate the facilities and an adequate and
feasible plan to improve their financial and management capacity. This component will be
funded through the AP Urban Infrastructure Fund (APUIF), which is a Trust registered under
the Indian Trust Act. The APUIF is an intermediate entity which will receive funds from the
CDMA, and will fund the sub-projects at the ULB level by providing sub-loans and capital
grants to them. The component will also include establishment of Multipurpose Community
Resource Centers targeted for the urban poor.
Project Management Technical Assistance, Component D, (US $22.1 million of which US$
19.9 million from Bank): Under APMDP, Andhra Pradesh Urban Infrastructure Fund (APUIF)
will provide funds with an aim to ensure the quality of subproject preparation,
implementation, and monitoring. Preparation and supervision and coordination of
implementation of urban investment sub-projects at ULBs will be done by the MSU under
CDMA to assist ULBs and procure as per Bank guidelines. There shall be regular individual
consultants at MSU to coordinate procurements of services, of works and RFP and tender
designs. This will also include assistance to prepare and manage public-private partnership
schemes. A Sub-project Technical Assistance Facility (earlier known as PDAF) will support
the MSU and CDMA for subproject appraisal, monitoring and quality control, as well as
monitoring and support for implementation of reform and Governance and Accountability
Action Plan (GAAP) through individual consultants on regular basis at MSU and DPR designs
and finalizations through consultant firms / agencies as per procurement guidelines of this
manual. Technical Assistance to the implementing agencies like DTCP, MEPMA, APUIF,
PHED, ULBs including MSU would be provided under project management through MSU /
CDMA as per the government orders and / or Steering Committee approvals.
Table 1A provides the costing under the three project components, in US Dollar terms. The
dollar-rupee conversion rate applicable to this project is 1US dollar = Rs.51.75 as on 2 nd
March, 2009 (date of debt-sustainability certificate from department of expenditure,
Ministry of Finance, Government of India) (Annexure-23) as per Government of Andhra
Pradesh Finance (PMU) Department Note No.797/Finance PMU/2008, dated 17.01.09 (also
in Annexure-23). As per this dollar rate in rupee terms, the funding of project is as on Table1B.
1.4
Institutional Arrangements and Project Management
Overall Responsibility: The state Municipal Administration and Urban Development (MAUD)
will oversee the overall project including the development of state-level policies and
institutions and the support for ULBs, mainly through the CDMA under it. To assist CDMA to
carry out this responsibility, GoAP established a MSU with 44 full-time staff including 15
professional level officers. Additional assistance may be provided to MSU or APUIF or other
implementing agencies as per the provisions of the GO upon Steering Committee and
Finance (SMPC) Department approval. For local infrastructure component, CDMA, through
MSU, will collect sub-project proposals from the ULBs, coordinate the appraisal, and will the
release the funds as per the approval of the Steering Committee as per the GO. The state-
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APMDP Operations Manual
level policy and institutional development component will involve various subcomponents
under the direction of CDMA, the Department of Town and Country Planning (DTCP also
under MAUD), and the AP Department of Finance. CDMA will be responsible for
coordination and reporting of these activities. CDMA will also establish a “Complaint Cell”
and a Public Information Office to complement local public information and Grievance
Redressal systems to handle the concerns of project-affected people, ULBs, and contractors.
The Andhra Pradesh Urban Infrastructure Fund (APUIF), established as a Trust in February
2005, will act as GoAP’s fiscal agent and asset manager for the portion of Bank financing
allocated for infrastructure investment, under a contribution agreement. The role of
APUFIDC shall be advisory to APUIF. Further details on project management are in Chapter
6.
Institutional Responsibilities: APMDP involves extensive coordination between CDMA,
MSU, APUIF, DTCP, PHED and ULBs. The agencies responsible for executing works, and
procuring goods/services and monitoring progress under APMDP are detailed in Table 2. All
important decisions including appraisal of sub-projects shall be taken by the Project
Appraisal Committee consisting of heads of above departments upon coordination by the
Project Director, MSU and approved by the Steering Committee at the government level
which is in turn constituted with the same heads of departments including Finance
Department.
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APMDP Operations Manual
Table - 1A
APMDP: Detailed Project Costs
Component
Cost
(US$
mn)
Bank
Share
(%)
Bank
Financing
(US $ mn)
GoAP
Financing
(US$ mn)
State Level Policy and Institutional Development
-Study for modernization of planning legislation
0.2
90%
0.1
0
-Urban Finance related studies (including for APUIF)
2.5
90%
2.3
0.3
-Urban Training Academy (works + studies)
4.5
77%
3.5
1.1
-Studies for preparation of Urban Poor Program
1.5
90%
1.4
0.2
-Study for preparation of a Urban PPP framework
0.5
90%
0.5
0.1
Sub-total
9.2
7.8
1.7
Capacity enhancement
- Capacity Building for professionalization of urban
management and operations, including related to urban
poor programs
-TA for Institutional and Financial improvements at ULBs
-GIS Mapping for select ULBs + support cell at DTP
Sub-Total
6
90%
5.4
0.6
4
90%
3.6
0.4
4
90%
3.6
0.4
12.6
1.4
259.2
81.9
259.2
81.9
14
Urban Infrastructure Investments
-Sub-loans and Sub-Grants to ULBs for urban services (US$
40 mn for original first year projects + US$ 277 mn for new
urban sub-projects + US$ 25mn for Community training
centres at ULBs)
341.3
Sub-Total
341.3
76%
Project Management
-Monitoring & Evaluation system (CDMA / APUIF)
1.5
90%
1.4
0.2
3.5
90%
3.2
0.4
17.1
90%
15.4
1.7
20
2.3
0.75
-
300
87
-Support to CDMA & APUIF for management (incremental
operating costs, consultants, technical assistance, audits,
etc.)
-Sub-project Technical Assistance Facility- preparation and
implementation support to ULBs (under CDMA)
Sub-Total
22.1
Front-end Fee
0.75
Grand Total
100%
386.6
Disbursement Schedule (US$ million)
Annual
Cumulative
FY10
30
30
Totals may differ due to rounding off
4
FY11
50
80
FY12
65
145
FY13
78
223
FY14
77
300
APMDP Operations Manual
Table – 1B
APMDP: Detailed Project Costs
Component
Cost (Rs.
in crores)
Bank
Share
(%)
Bank
Financing
(Rs. in
crores)
GoAP
Financing
(Rs. in
crores)
-Study for modernization of planning legislation
1.0
90%
0.5
0.1
-Urban Finance related studies (including for APUIF)
12.9
90%
11.9
1.6
-Urban Training Academy (works + studies)
23.3
77%
18.1
5.7
-Studies for preparation of Urban Poor Program
7.8
90%
7.2
1.0
-Study for preparation of a Urban PPP framework
2.6
90%
2.6
0.5
Sub-total
47.6
40
1.7
3.1
2.1
State Level Policy and Institutional Development
Capacity enhancement
- Capacity Building for professionalization of urban
management and operations, including related to urban
poor programs
-TA for Institutional and Financial improvements at ULBs
31.1
20.7
90%
27.9
18.6
-GIS Mapping for select ULBs + support cell at DTP
20.7
90%
18.6
2.1
Sub-Total
72.5
65.2
7.2
90%
Urban Infrastructure Investments
-Sub-loans and Sub-Grants to ULBs for urban services (US$
40 mn for original first year projects + US$ 277 mn for new
urban sub-projects + US$ 25mn for Community training
centres at ULBs)
Sub-Total
423.8
76%
1766.2
1341.4
1766.2
1341.4
423.8
7.2
1.0
16.6
2.1
79.7
8.8
103.0
3.9
11.4
1553
450
Project Management
-Monitoring & Evaluation system (CDMA / APUIF)
90%
7.8
-Support to CDMA & APUIF for management (incremental
operating costs, consultants, technical assistance, audits,
etc.)
-Sub-project Technical Assistance Facility- preparation and
implementation support to ULBs (under CDMA)
Sub-Total
90%
18.1
90%
88.5
Front-end Fee
114.4
3.9
Grand Total
2004
Disbursement Schedule (Rs. in crores)
Annual
Cumulative
Totals may differ due to rounding off
5
100%
-
FY10
FY11
FY12
FY13
FY14
155
259
336
404
398
155
414
750
1154
1553
APMDP Operations Manual
Table 2
Component-wise Executing and Procurement Agencies for APMDP
Component
Implementation
Procurement
Reporting
Study for modernization of planning legislation
CDMA/MSU/DTCP/ULBs
MSU
CDMA/
MSU
Urban Finance related studies (including for APUIF)
CDMA/MSU/APUIF/ULBs
MSU
CDMA/
MSU
CDMA/MSU/PHED/ULBs
MSU
CDMA/
MSU
CDMA/MSU/MEPMA/ULBs
MSU
CDMA/MSU
MSU
CDMA/MSU / APUIF
CDMA/
MSU
A. State Level Policy and Institutional Development
Urban Training Academy (works + studies)
Studies for preparation of Urban Poor Program
Study for preparation of a Urban PPP framework
CDMA/MSU/APUIF/ULBs
B. Capacity Enhancement
TA for Institutional and Financial improvements at
ULBs
Capacity Building for professionalization of urban
management and operations, including related to
urban poor programs
MSU/ULBs
MSU
CDMA / MSU/MEPMA/ULBs
MSU
GIS Mapping for select ULBs + support cell at DTP
MSU/ULBs/DTCP/ULBs
MSU
CDMA/
MSU
CDMA/
MSU
ULB
ULB/MSU
CDMA/MSU/
APUIF
C. Urban Infrastructure Investment
Works
D. Project Management
Sub-project preparation and implementation
support to ULBs (under CDMA)
-Support to CDMA & APUIF for management
(incremental operating costs, consultants, technical
assistance, audits, etc.)
Monitoring & Evaluation
MSU
CDMA/MSU
CDMA / MSU/ULBs
CDMA / MSU /
APUIF/MEPMA/PHED/DTCP/ULBs
CDMA / MSU /
APUIF/
CDMA/APUIF
CDMA/APUIF
CDMA/
APUIF
CDMA/
APUIF
1.5
Decision-Making: While APUIF and MSU are the proposed managers of infrastructure
investment and other components respectively, decision-making with regard to the project
(APMDP) would be through the three committees at different levels- Project Appraisal
Committee, Steering Committee and an Empowered Committee (EC) constituted by the
Government of Andhra Pradesh. Details of the committees are presented in Chapter 6.
Decisions and approvals regarding financial appraisal of sub-projects under Urban
Infrastructure Investment Component shall lie with the CDMA/ MSU through the Project
Appraisal Committee for which the approvals are accorded by the Steering Committee as
defined in the GO No 288 of 21st April 09 (appended in Annexure – 12). Decisions pertaining to
Project Management Technical Assistance with reference to day-to-day executive and
administrative requirements will lie with the CDMA subject to the Management Agreement
and policy guidelines approved and delegated by the Steering Committee.
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APMDP Operations Manual
Purpose of the Operations Manual
1.6
This manual is intended to provide ULBs, APUIF, MSU, and the APMDP management
team with policies and procedures to be followed during project implementation. The manual
is divided into seven chapters: (i) Chapter 1 deals with State Level Policy and Institutional
Development Component; (ii) Chapter 2 deals with Institutional Capacity Enhancement; (iii)
Chapter 3 deals with specific guidelines for project beneficiaries for sub-project processes and
activities under the Urban Infrastructure Investment Component of APMDP ; (iv) Chapter 4
deals with the Project Management related Technical Assistance Component; (v) Chapter 5
deals with the APMDP Financing Framework for investment support to ULBs under Component
C; (vi) Chapter 6 deals with the implementation structure and management procedures related
to APMDP; (vii) Chapter 7 deals with Governance and Accountability Action Plan (GAAP); and
(viii) Chapter 8 deals with Monitoring & Evaluation.
This Operations Manual (OM) which forms a part of the negotiations of the project with the
World Bank and Department of Economic Affairs (DEA), Govt. of India as well as the project
agreement, would be reviewed from time to time and adapted / modified as necessary during
implementation, subject to concurrence of the Bank and approved as per the government
orders by the Steering Committee.
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APMDP Operations Manual
Chapter 1
Component A: State Level Policy and Institutional Development Component
State Level Policy and Institutional Development Reform Activities
2.1 The State Level Policy and Institutional Development Component of APMDP (US $ 9.2
million) is targeted at supporting state level urban reforms with Technical Assistance for
Studies/activities covering the following:
(a) AP Urban Academy (Cost US $ 4.5 million): to set up an urban training and knowledge
centre at Hyderabad, mainly to serve as the center of sustained monitoring and analysis of
urban development and management in AP and to provide training to urban sector officials
in the state at both the ULB and state level, including elected representatives. It is
envisaged that this academy would build upon its core staff at the beginning in order to
fully deiver its objectives during the period of the project. Initially it would depend on
panel of external experts to develop the knowledge base and deliver training supported by
the project. This subcomponent includes an initial study and planning of the Academy,
construction and initial operations and its support can be from other sub-components. The
Academy would fall under the GoAP’s MAUD / own resources for future on-going
operations. An indicative Memorandum of Association (MoA) is annexed as Annexure-23
for the academy as the State Institute of Urban Management (SIUM) proposed as an
autonomous institute functioning under a society registered under the AP Societies
Registration Act, 2001.
(b) Urban Policy and Finance TA (Cost US $ 2.7 million): will support key policy studies,
workshops, training, and associated computer equipments, networking, preparation and
engagement of technical assistants on a regular basis for Financial and Technical
Management Information Systems, to improve the urban planning framework, urban
finance framework, monitoring, evaluation, and support of urban and ULB performance
development. The e-Suvidha applications with suitable improvements, modifications and
support from this project may be utilized for delivery of better citizen services and
administrative monitoring. This will include: (i) review of existing planning rules in the state
and drafting a new act to simplify land use planning processes, increased devolutions to the
ULBs; (ii) review of intergovernmental fiscal structure and rules for ULB finances and
recommending revisions to improve the capacity, accountability and performance
incentives of ULBs; and (iii) review of options to improve urban development financing
including the role of market-based financing and APUIF, strengthening of the latter, and
preparation of a Public Private Partnership (PPP) framework for urban sector. (
(c) Preparation of Urban Poverty Alleviation Program (Cost US$1.5 million), to implement
GoAP’s Mission for Elimination of Poverty in Municipal Areas (MEPMA), mainly through the
support for job training, microfinance, self-help groups, and poverty alleviation support
capacity building at ULBs.
(d) Development of PPP framework and subprojects (cost US$0.5 m). GoAP has established
an enabling legal framework for public-private partnership for infrastructure, and a PPP cell
at the state level. The project would support further development and implementation of
the framework through the establishment guidelines and benchmarks for local PPPs as well
as innovative pilot PPP schemes for ULBs possibly for water supply and energy
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APMDP Operations Manual
conservation, some of which can be financed under the project. No procurement of PPP
will be done unless specifically agreed by the Bank.
2.2
Institutional Responsibility
The Municipal Strengthening Unit (MSU) in CDMA office will oversee the State Level
Policy and Institutional Development Component in collaboration with APUIF, MEPMA and
DTCP and other departments of GoAP as necessary. The MSU will be assisted by a Technical
Support Service Consultant (Institutional Consultant on regular basis), who shall be responsible
for:
1. Identification of the Scope of all Sub-Components/Activities in discussion with the
concerned.
2. Preparation of Terms of Reference for all the Sub-Components/Activities under the
State Level Policy and Institutional Development, assisting MSU in working out the
Deliverables.
3. Facilitation for Studies/Activities undertaken by Consultants.
4. Organization of Workshops/Seminars/Study Tours/Field Visits, etc.
5. Assisting MSU in the Maintenance of these Accounts Sub-Component-wise
6. Quality Assurance for the Deliverables
7. Assisting MSU in reporting to the Government/World Bank
8. Publication and Dissemination of Reports
2.3
Staffing of AP Urban Academy / State Institute of Urban Management (SIUM)
The following basic minimal staff at the AP Urban Academy would be funded initially by the
project for its duration with remunerations and allowances as in Annexure-19. Any additional
staffing that may be required by the academy / institute as per the terms of the proposed draft
MoA in Annexure 23 would be funded from its own funds:
(1) Posts on deputation (on their own pay)
(i) Director General
one (ii) Executive Director
one (iii) Additional Director one (iv) Assistant Director
one (v) Head IT cell
one (vi) Private Sec. to DG one (vii) Librarian
one (viii) Accountant
one (ix) Sr. Assistant
two (x) Jr. Assistant
one -
Senior Post of IAS
Junior post of IAS/equivalent
AD cadre officer from Municipal Dept.
Ass. Dir. Cadre from Municipal Dept.
District officer rank with IT experience
Secretarial Staff of equivalent rank
Secretarial staff of experience
Ministerial service employee of GoAP
Ministerial service employee of GoAP
Ministerial service employee of GoAP
(2) Permanent Faculty Posts in SIUM (on UGC pay scale)
(i) Professor
(ii) Associate Professor
(iii) Assistant Professor
-
three one three -
asper qualification in Annexure-23
-do-do-
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APMDP Operations Manual
(3) Support Staff on Contract (as per remuneration in Annexure-19)
(i) Stenographer and PS
(ii) Typist and PA
(iii) Data Entry Operator
(iv) System Administrator
(v) Training Assitants
(vi) Attenders/Messengers
(vii) Watchmen
(viii) Staff Vehicle Drivers
(ix) Receptionist/Tel. op.
(x) Machine Operator
(xi) Gardener cum sweeper
(xii) Draughtsman
-
two (for DG & ED)
two (for DG & ED)
eight (for IT cell/Admn. /Training cells)
one (for IT cell)
three (for Training cell)
four
two
eight
one
one
four
one
The constitution and membership of the society for State Institute of Urban
Management requisited under the AP Society Registration Act, 2001 and of the Governing
Council are indicated in the draft Memorandum of Agreement (MoA) in Annexure-23. The
Governing Council shall formulate/ cause to be formulated the bye-laws of the institute for its
approval. The institute apart from being funded initially for its core staff during the project
period under APMDP would also have other source of funds as in the MoA. The institute would
also conduct trainings through domain specialists as resource persons on piece-rate contract
basis. The support to the permanent faculty would largely be built upon and funded from the
project/consultancies handled by the institute.
2.4 Contribution of FMIS Cell at MSU and ULBs with sub-projects
At MSU Level:
(a) Finance Manager (on deputation)
(b) FMIS Coordinator (on individual consultant)
(c) Technical Infrastructure Analyst (on individual consultant)
(d) Municipal Accounting and Financial Assistants (3 nos on outsourcing)
(e) Accounting and data – entry assistants (3 nos on outsourcing)
At each ULB Level with APMDP sub-projects:
(a) Municipal Accounting and Financial Assistant (MAFA) (1 no. on outsourcing)
(b) Technical infrastructure assistant (1 no. on outsourcing)
The above team at ULB level shall contribute the FMIS cell at the municipality and
will report directly to the Municipal Commissioner. The consultants / assistants who
shall report to the Municipal Commissioner and assist him in the Project Monitoring
would fall under the overall administrative supervision of the CDMA / PD, MSU of
APMDP through Finance Manager for FMIS coordination and would be reimbursed
under project costs.
The MAFA will work with Accounting Staff within each municipality and carry out the
following tasks:
(1) Preparation and Maintenance of accounts pertaining to the releases made from
the projects and their expenditure.
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APMDP Operations Manual
(2) Maintain all the relevant project related account books like Cash Book, check
issue register, payment register, Bank Statement Register and vouchers etc.
(3) Submit daily income and expenditure statement
(4) Monthly reconciliation of accounts with Banks
(5) Submission of accounting and financial information to the Project Office as and
when required.
(6) Any other accounting task as assigned by MSU.
The technical infrastructure assistant within the FMIS cell within each municipality
shall also report to the Municipal Commissioner for technical update of data
required in FMIS. He will also fall under the overall administrative supervision of the
CDMA / PD of APMDP through Finance Manager and technical using of MSU and
work in close coordination with the technical and engineering staff within each
municipality to collect and maintain the required works records and data for
monitoring in FMIS. He should carry out the following tasks:
(1) Maintain works progress register with reference to the verified MBs, Contract
documents,
(2) Maintain Assests Register.
(3) Reporting to the Project Office on Physical progress of work and inform about
deviations in the Work execution.
(4) Maintain quality control certification information with respect to execution of
works.
(5) Prepare and maintain the status of procurement related information at ULB
(6) Coordinate with the Financial and Accounting specialist to verify the payments
made with respect to the works progress.
As all the funds of the project are designed to flow first from the GoAP budget to the
PD Account of CDMA before being transferred for project component-C to the
APUIF, additional assistance to the Disbursement Analyst in MSU and to the DDO of
the CDMA office shall be provided for reporting FMIS data to MSU in the form of two
MAFA (1 each to DA and DDO) and two Accountants / Data Entry Operators (1 each
to DA and DDO) on outsourcing contract for the project period.
In addition to report FMIS data on regular basis to MSU, 1 MAFA and 1 Data Entry
Operator / Accountant shall be provided to each Implementing Agency.
2.5
Procurement Procedures
MSU shall be responsible for handholding of procurement at ULBs for the Project Component C
and procurements in the other components. Key areas being:
 Maintaining and ensuring plan as agreed with the World Bank
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


Handholding ULBs for procurement of works and ensuring all Bank requirements have
been met.
Carrying out all other procurements during the project.
Facilitating World Bank review (prior and post) and replying to Bank queries
The procurement procedures for procurement related to aforesaid technical assistance
activities shall be as per Bank procurement guidelines and per the procurement framework /
procedures described in Annexure 1.
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Chapter 2
Component B: Capacity Enhancement Component
3.1 This component (US $ 14 million) addresses the need for improved municipal
management by institutionalizing the training and introducing a certification system for
senior government and municipal managers and functionaries. It also addresses the needs
of community / stakeholder groups to better manage their interface with local government.
It also addressees the skill development needs of the elected representatives of the local
bodies. The component also includes the element of skills transfer at the ULB level to enable
proper preparation, processing, operation and maintenance of sub-projects.
(a) GIS Mapping and Spatial Planning (US$ 4.0 million) will prepare new GIS base
mapping including property and Utility mapping and General Town Plans for about
30ULBs whose plans are lacking or badly out of date, with full participation of local
authorities and residents. The already existing GIS maps under APUSP shall be utilized
and further improved in addition to GIS capacity development in all the newly selected
ULBs. This sub-component shall include consultancies for comprehensive GIS module
designing, implementation and integration with relevant e-Suvidha modules. The
technical assistance in terms of hiring of professional services, equipments, networking,
specific trainings, etc. shall be included and procured as per the relevant methods in
Annexure - 1.
(b) Capacity building (US$10.0 million): will include (i) training of staff at local and state
levels as well as elected representatives at ULBs, and (ii) design and management of ULB
financial and institutional strengthening programs. The subcomponent is based on a
ULB capacity building needs assessment (CENA document prepared by CGG) in 2003,
which will be updated and adjusted in consultation with all ULBs by incorporating midcourse corrections whenever and wherever necessary, and coordinated by the Capacity
Enhancement Specialist at MSU. In-depth TA in terms of equipments, professional and
support services engagement on hiring, logistics, etc. for design and management of ULB
strengthening program would be provided to ULBs which participate in Urban
Infrastructure sub-loan component funding . For regular training programmes as a short
term focus, the training program will be delivered in the form of classroom learning in
training institutions, workshops, seminars or by visiting trainers, on-the-job training, and
study visits within the country or abroad including Training of Trainers (TOT), identifying
individual trainers and institutions and compiling and preparing the training material. In
the long term the capacity needs shall be addressed through Academic and Professional
Institutions which have experience in formulating and conducting the training
programmes of the government in general and local self governments in particular
aimed at improving Urban Management. Upon the institutionalization of the Urban
Academy the trainings at the academy and other support would be from this
component. Apart from the above support to the training programmes at all ULBs, the
capacity building component also supports specific initiatives including logistics,
technical assistance, support to bridge the institutional, social, environmental, O&M
gaps, etc. to improve and build capacity at the ULBs where the works are taken up in the
project to build works related capacity as per the approved DPRs by the Project
Appraisal Committee / Steering Committee. The training will cover three different types
of subjects and trainees:
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(a) Professionalization of urban management through professional certification
programs for ULB specialist staff in: financial management, public health
management, municipal and environmental engineering, social development and
anti-poverty support, urban planning and building regulation – provided through
recognized specialist institutions;
(b) Training in Local Governance and Urban Management for elected officials and
senior ULB staff
(c) Training in various operational skills and systems such as accounting, physical
facility operation, public information management, etc.
(d) general skill developments, etc
3.2 A Capacity Enhancement Cell (CEC) forms a part of MSU which will operationalise and
implement Professionalization of Urban Management Capacity framework to
institutionalize, mainstream and guide institutional as well as human resource capacity
enhancement for urban management in the State. This cell will be responsible for
implementing a host of training and skill development programmers through the
Consultants procured for implementing this component.
The CEC would be responsible for:
 assisting in the development of a state-level Urban Management Capacity (UMC)
framework to institutionalize, mainstream and guide institutional as well as human
resource capacity enhancement for urban management in the state;
 establishing roaster of training institutions within and outside the state specializing in
select functional areas from whom State, ULB and related organizations can receive
training;
 designing and implementing information system for monitoring and evaluation of
urban sector institutional and human resource Capacity Enhancement activities in
the State.
Institutional Responsibility
3.3
The Capacity Enhancement Cell will be mainly responsible for moving the agenda on
Capacity Enhancement in coordination with other members of MSU. CDMA will oversee the
implementation of Capacity Enhancement. The cell shall comprise of the following
personnel:
(a) Capacity Enhancement Specialist (on deputation as per existing GO)
(b) Training Cell Coordinator (2 nos) (as individual consultant) (for State /
Regional /District level trainings) (one shall be transferred to SIUM /
academy upon its commissioning)
(c) Training Assistants (8 nos.) for curriculam development,
documentation, reprography, logistics including study visits, etc and
general support (on outsourcing contract) (these shall be transferred
upon project completion or upon its commissioning to the academy)
(d) Poverty Alleviation Specialist (1 no.) (at MEPMA) (on outsourcing)
(e) Urban GIS specialists (2 nos at DTCP and 1 no.at e-Suvidha), (as
individual consultants)
(f) Other domain specialists (on piece-rate contract as resource persons /
expert / eminent faculty) and work related specialists including Urban
Infrastructure Specialist at ULB or MSU level as per the approved
DPRs.
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Capacity Enhancement Specialist:
The Capacity Enhancement Cell will be headed by the Capacity Enhancement Specialist and
he will be involved the implementation of Capacity Building activities undertaken in the
Project. He shall coordinate and liaison the project requirements with regard to capacity
building activities and funds between MSU and the Academy / SIUM, other institutes,
regions, ULBs. He shall also take lead and initiative to fulfill the project related objectives
with regard to sub-project related trainings and capacity building and also carry out on
behalf of MSU all other general activities related to the subject of capacity building.
Training Cell Coordinator: The duties of the Training coordinator are as follows:

Coordinates with ULBs for scheduling training programmes and documentation

Coordination activities with reputed institutions for scheduling faculty for training
(Invitation, Logistics and payments),dissemination of training related
information,monitoring and reporting of the work of training assistants to the CES.

Scheduling of classes, based on availability of classrooms, equipment, and
instructors.

Coordinate with faculty for development of curricula & make training material
available to the trainees

Perform other duties as assigned by CDMA / Project Director, APMDP
Training Assistants: The duties of the Training Assistants are as follows:

To help the training cell coordinator in day- to- day operations.

Maintenance of office records of training programmes and reporting the same to the
Training Coordinator.

Assist the Training Cell Coordinator in the preparation of training material

Arrangement of logistics and accommodation to trainees

Arrangement of training aids, classrooms and other infrastructure for conduct for
training.

Any other duties as assigned by CDMA / PD, APMDP
Poverty Alleviation Specialist:
Interact with the ULBs, other government departments, external agencies, NGOs with
regard to development, implementation of poverty alleviation schemes and programmes.
Any other duties as assigned by the CDMA / PD,APMDP.
Urban GIS Specialist:
 Meet with users to define data needs, project requirements, required outputs, or to
develop applications.
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APMDP Operations Manual

Conduct Research to locate and obtain existing databases.

Gather, analyze, and integrate spatial data from staff and determine how best the
information can be displayed using GIS.

Preparation of GIS related DPRs, tenders and RFPs.

Guide the ULBs in the implementation of GIS application

Providing capacity building support to the ULBs and MSU in terms of identifying
needs, preparing training material training of trainers and exchange visits, etc.

Any other duties as assigned by the CDMA / PD,APMDP.
Urban Infrastructure Specialist:

Provide guidance and hands-on support to the ULBs and MSU on establishing
effective and efficient monitoring, quality control, and evaluation systems with
respect to Urban Infrastructure.

Perform regular financial, technical, and progress reviews of the on-going program
implementation.

Make regular and as needed visits to the field to observe and review
implementation, and write back to office reports highlighting progress and issues
along with agreed actions;


Interact with clients, consultants, contractors and beneficiaries to provide technical
guidance and support in implementation;
Document various aspects of the projects/programs/activities for dissemination and
sharing purposes;

Any other duties as assigned by the CDMA / PD,APMDP.
Procurement Procedures
3.4 The procurement procedures for procurement related to aforesaid technical
assistance activities shall be as per Bank procurement guidelines and per the procurement
framework / procedures described in Annexure 1.
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Chapter 3
Component C: Urban Infrastructure Investment Component
4.1
This part of the manual deals with framework related to investment support for
urban sub-projects and covers initial sub-project formulation and proposals, their review,
appraisal and sanction processes and subsequent procurement and implementation under
the Project The guidelines include following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
eligibility criteria to access funds,
sub-project proposal from ULBs
eligible sub-project prioritization activity,
preparation of subproject documents-Reform Action Plan and
Infrastructure Improvement Plan;
sub-project appraisal by Appraisal Committee/line departments
sub-project implementation
Eligibility criteria to access funds
4.2
The eligibility criteria for ULBs to access funds under APMDP for investment support
are mentioned below.
Access Criteria for ULBs
Access Criteria
ULB has an operating surplus and has borrowing /
investment capacity to meet debt service obligations and
O&M expenses, after accounting for existing debt service
and other operating expenditures.
Compliance to be assessed based on
Finalized accounts of last 3 Financial Years and
upon consideration of reduction of burden of
salaries upon ULB funds as per the recent GO.
Audit of municipal accounts is satisfactory (with no
significant unresolved audit issues of the earlier years) and
up to date.
Accounts to have been finalized and audited
within 6 months of close of FY. For the first
year projects the agreed audit completion with
the World Bank is 2007-08 before issue of
work order.
Formal agreement to carry out an action plan
for municipal reform, financial and service
performance improvement satisfactory to
CDMA, including but not limited to capacity to
operate and maintain the facilities built with
the sub-loan / sub-grant.
Formal agreement to carry out an action plan
for capacity enhancement, including ULB
organization, enhancement of ULB own
revenues / taxes / tariffs, installation of key
staff, etc.
Reform Action Plan
Capacity Enhancement Action Plan (CEAP)
4.3
Framework for Sub-Project Identification, preparation, sanction and
implementation
The overall flowchart for the framework is presented in Annexure 2. The flowchart specifies
that although the work tender procurement process can be initiated after the administrative
and technical sanction but the work order to the approved contractor cannot be issued until
the completion of all audit requirements and agreement of funds with APUIF.
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Nature and Eligibility of Sub-projects
All urban sector sub-projects will be eligible including city roads, sewerage, water supply,
sanitation, solid waste management, street lighting, energy efficiency improvement, and
community centers mainly to host self-help groups and job training for the poor, subject to
the framework presented below:
(i) The subprojects will be lumpy investments for city-wide impacts, costing at least Rs 5
crore (about $1.1 million) in general. The exceptions will be those for:




Solid waste management, which require relatively small investments individually but
aggregate to a sizable amount state-wide and has been mandated by the 11th State
Finance Commission. In such cases, the investments shall be channeled to achieve
comprehensive improvements at ULB level covering: (a) Primary Collection; (b)
Transportation; (c) Treatment; and (d) Disposal. Based on an overall plan so
developed, the funding from the Project can contribute to implement a portion of
such a plan along with other finances available to GoAP, or to the full scale plan. The
cluster based approach followed by GoAP will also be supported under the project.
Civic centers mainly for job training and SHG for the poor, as one of the initial
investments to implement MEPMA;
Energy or operational efficiency improvements; and
Sub-projects were appraised in 2005 for initial implementation. A batch of small
subprojects prepared and appraised when the project’s proposed focus was on
improving conditions in poor areas. While many of the appraised subprojects have
already been completed, some remain to be implemented.
(ii)
Economic evaluation, which needs to demonstrate economic rate of return of over
12% for subprojects estimated to cost over Rs 15 crore or cost-effectiveness in cases where
economic benefits are not quantifiable.
(iii)
(iv)
Adequate environmental and social safeguard measures, consistent with the agreed
Social and Environment Management Framework (SEMF) / Manuals for APMDP.
Adequate operations and financing plan.
Note: Throughout the sub-project preparation, approval and implementation process
steps as outlined below, the social and environment assessments, mitigation plans and
implementation of social and environment safeguard measures shall be as per SEMF /
Social & Env. manuals agreed for APMDP. The same are separate documents and need to
be additionally referred to besides this OM.
4.3.1 Step-1: Identifying and Proposing Sub-Projects by ULBs
The ULBs have to identify and propose their infrastructure improvement needs in the
municipalities along with related institutional capacities and reforms required for
sustainable planning, implementation and O&M of that infrastructure. The preparation of
the project for infrastructure and Municipal Reforms has to be carried out through a
participatory and consultative process to ensure ownership and greater involvement of all
stakeholders including poor and civil society. This shall happen through setting up of a
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APMDP Operations Manual
Municipal Development Committee (MDC, for strategic guidance) at the ULB level, and two
working groups to assist MDC in formulating the plans at the ULB level.
The MDC will have to have representation from both political and administrative side, along
with representation from the poor. Two Working Groups have to be constituted in such a
way to ensure that they represent various stakeholders and particularly the civil society
organizations and the poor.
Details of composition of the MDC and the working groups and their detailed functions are
indicated in Annexure 3.
The key functions of these groups are the following:
MDC
MDC will be responsible to the following:
a) Provide policy and strategic inputs for Council decision making;
b) Constitute committees and groups for specific works
c) Oversee, guide and coordinate the work of Working groups
d) Review, integrate and approve reports and proposals of working groups
e) Oversee, review and monitor implementation of development plans
f) Coordinate city-wide planning with various sections for the municipality.
Working Groups
Working Group 1 (WG-1) on Municipal Reforms and Capacity Enhancement: responsible for
reforms and municipal performance improvement.
Working Group 2 (WG-2) on Infrastructure Improvements: responsible for identifying
priority infrastructure investments in the city for which investment support is being sought
in under APMDP.
The Working Groups will prepare an Initial Project Proposal consisting of two plans and as
below and submit to MDC.
Initial Project Proposal:
The Working Groups will prepare an Initial Project Proposal consisting of three plans as
stated below and submit to MDC for review and approval.
Initial Project Proposal:
a) Preliminary Municipal Reform Action Plan (MRAP)
b) Preliminary Capacity Enhancement Action Plan (CEAP)
c) Preliminary Infrastructure Improvement Plan (IIP)
The process for preparation of IIP and procedure for function of MDC and Working Groups is
indicated in Annexure -3 (A)
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Municipal Reforms Action Plan
The WG-1 will prepare MRAP and CEAP
The municipal reforms already initiated by the ULBs are in different stages of
implementation. Therefore, under the Municipal Reforms part, the ULBs shall prepare plans
consisting of any additional support covering the following broad reform agenda as
Municipal Reforms Action Plan (MRAP). MRAP shall be prepared as indicated in Annexure3(B).
Adoption of Accrual based Double entry Accounting System in ULBs
i.
ii.
iii.
iv.
v.
vi.
vii.
Reforms in taxes and non-taxes to improve coverage and collection of taxes and nontaxes and improvement of finances.
Levy of reasonable user charges.
Expenditure management
Systems improvement.
Overall Municipal capacity enhancement including human resources development
and general training requirements as available from Capacity Enhancement Needs
Assessment (CENA) prepared by the MSU need to be updated and revised with
inputs from ULBs.
Empowerment of urban poor.
Community Interface improvement and Public grievances redressal mechanism
Capacity Enhancement Action Plan:Under the Capacity Enhancement Action Plan (CEAP), the ULBs will prepare an assessment
of institutional options for service delivery, related capacity building measures, O&M plans
and Financial Improvement Plans. The CEAP will include detailed plans to build this capacity
in terms of i) the preferred institutional option for maintenance of the infrastructure (self /
outsourcing), if self – the structure of the unit; ii) the TA /capacity building measures for this
option; iii) the institutional strengthening measures for O&M such as procuring additional
maintenance equipment / vehicles, facilities or establishing laboratories etc; iv) associated
costs, revenue mobilization plans including present and proposed tariffs, with proposed
cross subsidies if any. The CEAP shall be prepared as indicated in Annexure 3(C ).
Preparation of IPP:The WG 2 shall assess the service levels in the municipality discuss in detail the town wide
needs of infrastructure / service improvement needs in a consultative manner and propose
the priority areas of the ULBs for service improvement along with indicative requirement of
investments. This shall be captured under an Infrastructure Improvement Plan.
The Working Groups together will prepare an Initial Project Proposal (IPP) consisting of the
aforesaid three Action Plans. MDC will review the IPP and clears it. Following this, the ULBs
will obtain council Resolution on this IPP. After this, the commissioner shall forward the IPP
(as per the format in Annexure 4) to MSU for consideration under the Project.
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The MDC and the two Working Groups continue to remain in existence at the ULB
throughout till they are reconstituted at the time of every cycle of MPDP project duly
assessing the performance of the committees.
4.3.2 Step-2: Review and Assessment of Initial Project Proposals by MSU / APUIFC /
PHED
MSU compiles all the IPPs received from the ULBs regularly, evaluates them based on the
criteria outlined above regarding ULB and sub-project eligibility, their level of readiness for
implementation, and short-lists the sub-projects eligible for financing out of the IPPs
submitted by the ULBs. In parallel, the Municipal Reform Action Plan (MRAP) and Capacity
Enhancement Action Plan (CEAP) would also be evaluated. All this would be led by MSU in
collaboration with APUIF and PHED.
Based on this assessment, MSU will prepare an Initial Screening Report (ISR) (as per the
format in Annex 5) including the updated audit status and put it up to the Project Appraisal
Committee for approval. The subprojects from the qualifying IPPs would join the pipeline of
sub-projects under the Project and the CEC will formulate a yearly Training and Capacity
Building Plan at the state level.
After its screening and approval by the Steering Committee, MSU would inform the ULB
about the clearance of sub-projects / reform action plans / capacity enhancement action
plans for implementation under the Project, along with approved technical assistance under
the project, with any suggestions for improvement in the Plans and with a request to
prepare full project documents.
CDMA / MSU would enter into a Memorandum of Agreement (MoA) with the ULB at this
stage capturing the aforesaid by way of a formal agreement (as per format in Annexure-6).
4.3.3 Step-3: Preparation and Submission of subproject documents
In this step, the ULBs prepare the detailed subproject documents in order to move ahead
for implementation.
There are three main documents required at this stage:
i)
ii)
iii)
Detailed Project Report (DPR) and
Final Municipal Reform Action Plan
Final Capacity Enhancement Action Plan (CEAP) for the proposed
infrastructure/services.
The working Groups 1 and 2 respectively would manage preparation of these documents
and be the focal points during appraisal by the MSU.
DPR
DPR preparation shall be preceded by a Technical Feasibility Analysis, which would analyze
the feasibility of different technical alternatives, suggested alternative, financial and
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APMDP Operations Manual
economic assessments, Social and Environmental Screening for the preferred alternative.
Guidelines on these issues are given in Annexure-7.
The DPRs shall include, for the preferred option, detailed designs, detailed engineering
drawings, detailed cost estimates, bid documents, procurement and implementation plans,
social and environmental assessments, economic and financial assessments.
MRAP
The MRAP would outline the key institutional and financial reforms (improvement in tax
revenues, collection efficiencies, new tariffs, etc.) that the ULB commits to undertake along
with year-wise indicators that would be achieved along-side sub-project implementation.
CEAP
It is necessary that the infrastructure proposed shall be maintained efficiently and
sustainably so that the service improvements do happen within the municipalities and the
citizen do benefit for the long term. For this to happen, along with the proposed
infrastructure, the ULBs have to improve their institutional capacity and finances for
operation and maintenance and service improvement of the proposed services. Therefore,
in parallel with the DPRs, under the Capacity Enhancement Action Plan (CEAP), the ULBs will
prepare an assessment of institutional options for service delivery, related capacity building
measures, O&M plans and Financial Improvement Plans. The CEAP will include detailed
plans to build this capacity in terms of i) the preferred institutional option for maintenance
of the infrastructure (self / outsourcing), if self – the structure of the unit; ii) the TA
/capacity building measures for this option; iii) the institutional strengthening measures for
O&M such as procuring additional maintenance equipment / vehicles, facilities or
establishing laboratories etc; iv) associated costs, revenue mobilization plans including
present and proposed tariffs, with proposed cross subsidies if any.
Guidelines
A set of simplified guidelines is prepared (Annex-7) for the purpose of preparation of subprojects, comprehensively covering technical, environmental, social, financial and
institutional aspects; which need to be covered under the above two documents.
Submission to MSU / APUIF
The ULBs shall submit to MSU / CDMA & APUIF, the following:
A) DPR consisting of the following along with forwarding notes:
1. i) preferred option with justification; ii) the difference that the subproject makes
in terms of service levels (base line vs. proposed in various phases) with respect to
standard indicators ii) detailed designs, drawings, technical specification and
detailed cost estimates; (iii) Environmental and Social Screening, Resettlement
Action Plans and Environmental Management Plans (where required) for subprojects as required under SEMF for APMDP; (iv) economic assessment as per the
guidelines; (iv) Contract Packaging, procurement plans; (v) project execution
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APMDP Operations Manual
schedules (Gantt Charts); (v) project cash flow schedules and financial assessments
to establish ULB’s capacity; (vi) Operational plans of the proposed infrastructure
(how the facilities would have to be operated to deliver the outputs as planned, in
various planning phases); (vii) Conclusions regarding present financial position of the
ULB, including a set of key financial indicators (operating surplus, debt servicing as a
% of revenue / operating surplus, collection efficiency, etc.), as well as a clear action
plan for improvement of finances over the medium term (5 years); (viii) A Financial
and Operating Plan (FOP) for the ULB as a whole, including 10-15 year financial
projections separately for both the operating and capital budgets (a capital
investment plan), taking into account also the likely impact of the prioritized subproject proposed to be undertaken over the medium term. (ix) In case of water
supply / sewerage sub-projects, a 10-year business plan for the water and sewerage
operations of the ULB on a “stand-alone” basis, including financial projections of
operating and capital budgets, tariff analysis under various scenarios, such that
water supply and sewerage operations are able meet O&M expenses from user
charges and begin to meet capital servicing as well over the medium term (3-4
years).
B)
Final Municipal Reform Action Plan (MRAP).
C)
Final CEAP in support of the proposals
D)
Council Resolution approving the sub-projects and request for sub-loan / sub-grant;
E)
Updated Project Proposal (Loan / Grant Application or updated IPP) with supporting
financial data sheets / continuing compliance with access criteria.
F)
Other government approvals (Administrative sanction, technical sanctions,
environment clearances, etc.)
Monitoring of Preparation
Quality and Process of preparation of these two documents would be monitored by CDMA
(in collaboration with PHED and APUIF for all sub-projects and additionally with MEPMA for
community centers) as part of its pre-appraisal process – by providing necessary TA support
to the ULBs and through regular interaction, monitoring and site visits to the ULBs.
PHED will have given its technical sanction for the project at this stage. MSU / CDMA
reviews the proposals for compliance with safeguard policies, verifies the ULB's
continued eligibility to access APMDP funds and gives clearance for taking up the sub projects. MSU / CDMA then also forward the proposals to APUIF for financial appraisal.
4.3.4 Step-4: Appraisal by the MSU / APUIF / PHED and sanction by PAC
Appraisal process
There is a Project Appraisal Committee (PAC) set up to clear the project appraisals and
Sanction.
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The committee shall be ultimately responsible for clearing the appraisal, from the angle of:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Technical feasibility
Planning designs as per standard
Financial Assessments
Social & Environmental Safeguards
Institutional Capabilities
Procurement and implementation planning
The in-depth appraisal of sub-projects will be done by the following units for recommending
to the PAC. The main areas of focus for appraisal in each case are as follows:
a) Technical Appraisal: by PHED










Selection and justification of preferred option at the conceptual stage
Service levels – base line vs. those achievable in various phases
Technical options and technologies, specifications, standards, quality control
systems, cost estimates,
Optimal rehabilitation of existing infrastructure and improving its efficiency;
Service provision to the poor / low income areas, and its integration with the main
network
Economic evaluation, which needs to demonstrate economic rate of return of over
12% or cost-effectiveness in cases where economic benefits are not quantifiable.
Contract packaging rationale, contractors’ availability and capacity
Procurement and implementation planning, implementation constraints, material
availability constraints
Permissions from various authorities,
Adequate O&M plan
a) from the technical side – i.e., Operational plans of the proposed infrastructure in
various phases; sensibility of the proposed plan; provisions made (such as bulk
meters, energy efficiency measures, removal of distribution lines from trunk
mains etc) to optimally maintain the infrastructure;
b) from institutional capacity side - having necessary data base of networks; tools,
plant, operators, staff, vehicles, laboratories, equipment etc. to maintain the
infrastructure,
c) from costing side – cost of O&M
As part of this technical appraisal process by PHED, it would also accord technical
sanction to the project.
b) Financial Appraisal: by APUIF
The financial sustainability shall be assessed based on 10-15 year financial projections for
the ULB (also called the “Financial and Operating Plan”). Such a business / financial plan can
be considered sustainable if: (i) The ULB has an operating surplus for at least two of past
three years and also for each year of future financial projections; (ii) Annual debt servicing
(including interest and principal repayments, as also existing debt + proposed additional
borrowings) do not exceed 50% of such operating surplus in each of the projected years.
While drawing up such projections, the following factors are important:
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




c)








The financial projections to take into account both revenue as well as cost (capital _
O&M) impact of proposed sub-projects (whether funded by APMDP or by other
sources / programs). For instance if it is a new sewerage system, then some
additional revenues would accrue to the ULB due to new sewerage tariffs, etc. and
on other hand, ULB would also incur additional O&M expenditures.
One possible basis for projections of revenues and costs could be past ULB
performance (over last 3-5 years). In addition, such projections can also take into
account special revenue improvement measures (provided they are already
underway at the ULB or about to be taken up) such as increasing assessed
properties, regularizing connections, new taxes, tariffs being imposed, etc.;
Initial steps of key revenue and cost related actions (such as having a tariff hike every
3 years, etc.) would need to be carried out before subproject and the subsequent
steps captured as covenants as part of the sub-loan or grant agreements.
While ULBs usually do not borrow on their own (except for the largest corporations),
borrowings for capital expenditures are usually on their behalf by a state level entity
(such APUIF) based on state government guarantee and such loans are repaid by
GoAP through intercepts of state devolutions to ULBs. The same shall also be taken
into account in the analyses as also other such intercepts for electricity dues, etc.
The loan / grant mix proposed for financing of sub-project needs to be taken into
account – if there is a higher grant component, then accordingly the sustainable
financial capacity would also go up.
All other areas: MSU with active involvement of CEC
Process and quality of consultation by the Working Groups and MDC
Consent by the Municipal Council
Environmental and social safeguard measures consistent with Social and
Environment Frameworks; and inclusion of required measures in the project
documents
Service provision to the Poor
Proposed institutional option for O&M,
Staffing, TA, capacity building and institutional development needs
tariff levels and revenue mobilization plans based on cost of O&M,
Service levels – base line vs. those achievable in various phases, as cleared through
PHED, to be captured in the Monitoring system
MSU would put up an appraisal note for approval of the Project Appraisal Committee in the
format presented in Annexure-8.
Sanction Process by Steering Committee
After formal approval of appraisal by the PAC, the proposal will be put up for requisite
administrative approvals of Steering Committee, based on which MSU / APUIF will inform
the ULBs about the sanction based on the format in Annexure 9 for inviting the ULB for subloan funding agreement.
Funding Agreement with the ULBs
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After receiving the Sanction, ULBs will sign a Funding Agreement with APUIF, agreeing to
implement the project as per standards and the Project requirements. Annexure-10
provides the format of this Funding Agreement. At this stage, ULB would also provide a
council resolution as per format in sanction letter and also update / finalize the MRAP and
CEAP.
Preparation of bid documents
Once the project is sanctioned and the Funding Agreement and MoU is signed, ULBs would
prepare the necessary bid documents as per the contract package plan proposed with
assistance of MSU, by incorporating all the technical measures, specifications, drawings, Bill
of Quantities, measures required for implementing the Environmental Management Plans
etc. The bid documents so prepared shall be submitted to MSU for clearance. MSU will vet
these documents with the help of PHED and approve them. It has been agreed with the
World Bank that for the first year sub-projects the bid-documents may be prepared and
bidding process commenced after the technical sanction to save delay prior to the MoU and
agreement with the APUIF for funding the ULB. However, in such case the work order
cannot be issued without entering into agreement with the APUIf by the ULB and updating
the audit requirements.
World Bank’s No Objection
The following documents shall be sent to the Bank for prior clearance.
 First two DPRs in every urban sub-sector, and subsequently for all sub-projects costing
above US$ 5 million.
 Environmental Management Plans and Resettlement Action Plans as per SEMF for
APMDP
 Procurement Documents as per prior-review thresholds identified in the Procurement
Annex (Annexure 1).
Preparing for implementation
After the agreement is signed, the ULBs would initiate building capacities for Procurement
and Implementation.
The ULBs would also establish systems for public disclosure, and grievance redressal.
4.3.5 Step-5: Procurement Process
Once the bid documents are cleared, ULBs, with support from MSU will initiate
procurement as per the procedures given in Procurement Annex (Annexure 1) with support
from MSU / PHED. MSU will closely monitor procurement process. The BER & contract
award and final draft contract document will be confirmed by the MSU to ensure these
comply with Bank regulations. The MSU shall develop a monitoring information system to
track the procurements at MSU through its Procurement Specialist.
Assessment of the agency’s capacity to implement procurement:
i
The procurement capacity assessment was done at two levels: MSU assessment of
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capacity of various ULBs, and the Bank’s assessment of MSU capacity. The former
assessment was done through questionnaires sent to all ULBs, followed by a workshop
attended by ULB representatives. Through this assessment, it was agreed that the capacity
of most ULBs needs to be developed in a structured manner before they can conduct their
own procurements in line with the Bank requirements. It has been agreed between DMA
and the Bank that during the first two years of implementation, (i) a procurement capacity
building program (PCBP) will be carried out as a key subcomponent of the project; (ii) MSU
will build capacity to support the procurements under various sub-projects with active
involvement of the ULBs; and (iii) once the contract is signed by the ULB, MSU will provide
close monitoring and support to ensure effective contract management. Contract
management software should be developed for this purpose.
ii
The Bank conducted a capacity assessment of the MSU during pre-appraisal covering
the organizational structure of MSU, existing processes and persons involved in sub-project
identification, preparation, financial and technical sanctions, and those responsible for
procurement and contract administration. The MSU currently relies upon the PHED Engineer
in Chief’s office for technical appraisal, procurement, and monitoring. Given that there will
be many sub-projects that will be appraised during the project duration; this capacity will be
added to MSU to avoid any delays in evaluating DPRs and providing procurement and
technical support to the ULBs. A core procurement team is being set up under the MSU for
managing the project procurement and PCBP. This team will be led by two officers at the
level of superintending engineer, who will report to the project director. There shall be one
exclusive post of Executive Engineer and two exclusive posts of Dy. Executive Engineers (on
deputation) meant and dedicated towards the work of procurement coordination at ULBs
and MSU. They shall be at the MSU and shall report to the Procurement Specialist.
iii
One of the PHED superintending engineers deputed to MSU has been designated as
Procurement Specialist (Goods and Works) since most procurement is that of works under
infrastructure sub-projects. The second Superintending Engineer will be responsible for
hiring of consultants, and monitoring the progress of the contract implementation, including
the collection of monthly progress reports from the ULBs based on which funds will be
released to the ULBs. The existing posts at MSU of Dy. EEs and AEs shall continue with the
SE. She/He will also be responsible for establishing a complaint monitoring system which
will capture all complaints received either by the PMU or by the ULBs. The complaint
redressal will be done in coordination with the Procurement Specialist or ULB commissioner
as the case may be. This system will be monitored by the Project Director once every
month.
iv
During the first two years the responsibility of the procurement manager and his
team will be to:




Prepare and maintain the procurement plan.
Manage the design of the procurement packages for the approved DPRs in
consultation with the DPR design consultants and ULB (Municipal Engineer).
Initiate the procurement for various packages as per the agreed procurement
procedures (preparation of tender notice and advertisement, bidding documents,
receiving bids, bid evaluation and recommendation for award).
Lead the bid evaluation committees which will include appropriate ULB
representatives. The evaluation committee will make its recommendation for award
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to the tender committee, which will comprise ULB chairperson or commissioner,
Project Director, Chief Engineer and Superintending Engineer.
v
After the initial two year period, or sooner if it is judged that sufficient capacity for
procurement has been developed, the leading role will be turned over to the ULBs and the
MSU procurement team will turn to a supporting role in the above steps. From the
beginning, ULBs will exercise their legal authority as owners of the subprojects. ULB
commissioner will issue the letter of acceptance (LOA) after the contract award
recommendation is approved by the tender committee, sign the contract, and issue the
work order for commencement of the works. The procurement specialist will monitor and
ensure that the LOA and that the contract is signed within specified time limits, and the
contract implementation is supervised and managed properly.
vi
A key challenge during implementation will be balancing the accountability and risks
in ULB procurement. The issue is likely to diminish over time, but to remain at least for some
(smaller) ULBs even in advanced stages of implementation. In the steady state, MSU will be
responsible for managerial oversight and review, and drive reforms at the ULB level. In the
initial 24 months, as ULB capacity needs to be built, MSU will play a leading role with active
involvement of the ULB at each stage of procurement. While MSU will retain the right for
final clearance throughout the project, the roles and responsibilities of the ULBs will
increase once they are trained in Bank procurement procedures and once their capacities
have been assessed.
Procurement capacity building program:
Since the objective of the project is to build ULB capacities, extensive procurement capacity
building program will be implemented by the MSU to bring ULBs’ capacity to conduct its
own procurement. This program will first target ULBs with subprojects to be implemented
immediately after the project start, and other ULBs will be added subsequently.
i
MSU will hire a consulting firm who will design and deliver the program. The
consultant will design the training modules to cater to ULB managers (Commissioners)
focused on monitoring and coordination, ULB Engineers (focused on execution) and ULB
Accountants. A plan for training these in all ULBs with initial subprojects will be
implemented in the first two years of implementation. The consultant will report to the
Project Director who will measure the effectiveness of the training, identify gaps and help
prepare gap closure plans. Under the PCBP, workshops will be organized periodically for
sharing best practices. After the first two years, the consultant’s training contract may be
extended or the MSU core procurement team may take over the large part of the training.
Use of eProcurement:
i
AP has a state wide eProcurement system which is presently used for government
funded contracts. This system is being assessed by the World Bank and is expected to be
piloted by end 2009. APMDP will also participate in the pilot and the procurement team of
MSU will undergo training for eProcurement. Upon successful completion of the pilot
(monitored by the Bank), the system is expected to be used for all NCB works contracts. The
e-Procurement system will be critical in providing inputs to the procurement monitoring
indicators described above.
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Procurement monitoring and audit:
i
Given the large number of entities involved, there is a need for an effective
monitoring system to ensure proper conduct of procurement. For this purpose, an initial set
of seven indicators has been proposed which will be monitored on a monthly basis at the
level of the CDMA and Project Director. These indicators are: number of contractors
applied/participated/qualified, tender premiums (lowest bid price over estimate), bid and
contract completion times vs. planned time, number of tenders rebid, number of contracts
with insufficient bids, and extension of bid validity.
ii
All procurement transactions under the project will be subject to procurement audit.
This is planned to be included in the scope of the audit conducted by the auditor general and
the revisions in the ToR are being finalized.
4.3.6. Step-6: Implementation
After procurement, sub-project implementation would start in various ULBs. The ULBs
would report sub-project progress regularly to MSU and APUIF, as per the proceduresand in
formats provided by MSU and / or APUIF from time to time. Necessary capacity building
measures under Component B would be implemented by MSU, strategically intervening
different stages of project implementation. The following issues are monitored by the MSU:
a)
b)
c)
d)
e)
physical and financial progress
contract management
adequacy of public disclosure, consultation
grievance redressal
Achievement of outputs and outcomes
Third Party Quality Supervision consultants would be hired for all investments by APUIF to
help monitor and supervise the quality and progress of subprojects jointly with MSU. Quality
Certification from the ULB/Supervision consultant would be necessary before releasing the
payments to contractors.
The ULBs and MSU/CDMA shall ensure compliance with the required environmental and
social safeguards in sub-project, as per the agreed procedures in the EMPs or RAPs.
Procurement Types and ProcessIt was agreed that during the first two years of implementation, procurement capacity
building program (PCBP), as a part of the CEAP, should be one of the focus areas of the
project to build capacity of ULBs in a structured manner. In the interim, to ensure that
implementation activities are not affected, MSU will build capacity to support the
procurements under various sub-projects with active involvement of the ULBs. Once the
contract is signed by the ULB, the role of MSU will be to handhold them to ensure effective
contract management and monitoring.
i
Given the large number of entities involved, there is also a need for an effective
monitoring system to ensure proper conduct of procurement. For this purpose, an initial set
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of seven indicators has been proposed which will be monitored on a monthly basis at the
level of the CDMA and Project Director. These indicators are: number of contractors
applied/participated/qualified, tender premiums (lowest bid price over estimate), bid and
contract completion times vs. planned time, number of tenders rebid, number of contracts
with insufficient bids, and extension of bid validity.
For further details Refer to the Procurement Annex (Annexure 1).
4.4
Municipal Financial/Reform Compliance: The ULB shall submit to APUIF through
MSU quarterly statements of municipal fiscal status and financial performance, in the
format provided in Annex 18 and / or which may be revised from time to time. The ULB shall
make such submissions through the term of the loan.
Social and Environmental Compliance
4.5
The ULBs and MSU/CDMA shall ensure compliance with the required environmental
and social safeguards in sub-project and DPR preparation, procurement and execution
processes as specified in the Social and Environmental Manuals / SEMF for APMDP for
ULBs and for Project Managers, respectively.
Operational Status of Ongoing Works
4.6
Under the APURMSP now renamed as APMDP, upon negotiations in June 2005, a
total of 1157 works in about 80 ULBs were sanctioned for an amount of Rs. 303 crores
(approximately USD 60 million) out of which 505 works for Rs. 125 crores (approximately
USD 25 million) were grounded. Out of this 382 works for Rs. 88 crores (approx. USD 18
million) were completed with the balance under various stages of progress and retendering
due to cost escalation. The government had released an amount of Rs. 147.63 crores (USD
30 million approx.) out of which an expenditure of Rs. 105 crores (approx. USD 21 million)
has been incurred until 2008-09 with expenditure in 2008-09 about Rs. 18 crores (USD 4
million approx.). The works which could not be grounded, of whose agreements were
pending at ULB or APUFIDC or which were held up for more than one month without
causing inconvenience to public were permitted for dropping as per the Government Memo
No. 5121/UBS/2008, MA & UD (UBS) Department, dated 25th March, 2008 (copy in
Annexure-12). During the reappraisal, the World Bank has indicated its difficulty to fund by
reimbursements the expenditure incurred prior to one year from the project sign-off. This
already incurred expenditure by the government (which thus would not be reimbursed)
would be compensated by adjusting the same through increase in the loan component in
the APMDP detailed cost table 1, if agreed during the negotiations.
The works which were commenced or under retendering as per the original appraisal
by the World Bank may be continued and completed and these would be reimbursed.
During appraisal the World Bank indicated to complete the audit update requirements for
these ULBs where the works are ongoing in order for this expenditure to be eligible for
reimbursements. The MA & UD department insisted that the building of capacity for
accounting in the first year at many ULBs would be necessary and hence the requirement of
audit completed and updated may be kept for future line of sub-projects and not for the
ongoing projects. The matter may be discussed and resolved during negotiations.
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Chapter 4
Component D: Project Management Technical Assistance
5.1 The Project Management Component accounts for US$ 10.02 million (US$ 9.02 million
from IBRD) under the APMDP. This component includes Sub-project Technical Assistance
aimed at providing comprehensive technical assistance, accessible to all ULBs on a loan /
grant basis, to address the low level of ULBs' capacity in formulation, design and
implementation of sub-projects. PDAF would be managed by MSU / CDMA.
5.2
Eligible Components and Projects
(a) Project Management (cost US$ 5.0 mn) support for GoAP’s state level agencies
responsible for implementing or coordinating APMDP. This includes financing a portion of
the incremental operating expenses of state level agencies involved in day-to-day
management of the project, primarily the CDMA-MSU and APUIF. This will also include
finance consultant services and systems for Monitoring and Evaluation (detailed overview of
M&E is provided in Chapter 8), oversight and operational management, various audits
(procurement, FM, technical, etc.) and implementation of GAAP (detailed overview of GAAP
is provided in Chapter 7) and other general expenditures including in implementation of
SEAMF, SECAP and the provisions of Social and Environment Manuals that would be
incurred as per the relevant procurement guidelines of Annexure-1.
(b) Subproject preparation and implementation (cost US$ 17.1 mn): This technical assistance
facility is aimed at helping ULBs undertake high quality preparation and implementation of
investment subprojects under the Urban Infrastructure Investments component
(Component C) and Project Development Advisory Facility (PDAF) process as appraised by
the World Bank. This facility will primarily finance technical, financial, economic,
environmental & social assessment and detailed engineering studies for preparing specific
sub-projects; preparation of bid documents as well as external consultant support for
management and supervision of subprojects during implementation. It will also support City
Development Plans or Capital Investment Planning studies and all works related capacity
building at the ULB and state level as approved in sub-project DPRs including technical
assistance, logistics, support to bridge the identified gaps at the institutional, O&M, Social,
Environmental, R&R, etc. through CEC coordination at MSU This TA will be delivered mainly
through consultant pools administered (including procurement) by the office of CDMA, but
ULBs that wish to retain their own consultants will be given the grant financing
proportionate to the size of subprojects, subject to consultant procurement rules applicable
to the project.
The CEC will:
 assist ULBs to articulate training demands through consultative workshops;
particularly during various phases of subproject development such as planning,
preparation, implementation and monitoring;
 Coordinate with MSU and ULBs to prepare Capacity Enhancement Action Plan as part
of subproject proposals approved in DPRs, ensure its quality and ensure
implementation during various phases of subproject, and
 Help MSU in improving the existing monitoring system (in e-SUVIDHA) for subproject
preparation and implementation monitoring.
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5.3
In parallel CDMA will provide TA support for the other ULBs to enhance their
capacity for subprojects to meet the eligibility criteria. This includes further assessments and
capacity building support to ULBs to enhance their knowledge / skills. The support shall be
provided under the Technical Assistance Component of the project. This facility will
primarily finance technical, financial, economic, environmental & social assessment and
detailed engineering studies for preparing specific sub-projects; preparation of bid
documents as well as external consultant support for management and supervision of
subprojects during implementation. It will also support City Development Plans or Capital
Investment Planning studies. This TA will be delivered mainly through consultant pools
administered (including procurement) by the office of CDMA / MSU, but ULBs that wish to
retain their own consultants will be given the grant financing proportionate to the size of
subprojects, subject to consultant procurement rules applicable to the project.
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Chapter 5
APMDP: FUNDING POLICIES AND PROCEDURES
6.1
General Policies of APUIF:
(1) Liquidity: The APUIF is a medium and long term lender and as such will avoid excessive
short term borrowing/lending. Cash flow forecasts will be maintained in order to ensure the
optimum use of liquid funds. The Fund will match the terms of its loans and borrowings in
order to minimize its exposure to interest rate fluctuations.
(2) Security: Security will be taken wherever possible. Escrow account with first charge to
APUIF for repayment of loan and interest under APDMP on the revenues of the ULB
including tax, user fees, tariffs, etc.
(3) Loan Coverage: As per financing policy outlined in Table 1 below.
(4) Default: Borrowers from whom semiannual interest and/or principal installment remain
overdue for a period of more than 90 days will need to clear arrears / reach agreements on
revised repayment schedule before further releases of sub-loans / sub-grants.
6.2
Funding Criteria / Financing Policies:
The APUIF/Fund Manager shall ensure that a project and borrower that sponsors such a
project, in respect of which a loan application or requests made to the APUIF, shall meet the
following eligibility criteria.
(1) Eligible Sub-Borrowers: Eligible sub-borrowers would include all ULBs (as defined under
state municipal and relevant acts) and the Statutory Boards that are involved in directly
operating & maintaining / providing urban services to urban residents in Andhra Pradesh
and meeting the Access Criteria outlined in Chapter 3 of this OM.
(2) Eligible Sub-Projects: As outlined in Chapter 3 of this OM.
(3) Eligible Items for the APUIF Financing: The APUIF will finance the costs of civil works,
services, goods and materials. The APUIF will not finance the land acquisition costs and the
working capital.
Table 1: Terms of Financing for urban investments
Issue
ULB funding
Terms of Financing
10% of subproject cost; this will be granted by GoAP for solid waste
management subprojects
State Grant funding to ULBs
20% of cost for transportation subprojects in all ULBs; 60% for other
subprojects, in three largest Municipal Corporations; 70% in other
ULBs
Sub Loan Funding to ULBs
The balance of cost after the self-financing and grant, at an interest
rate at least 1% higher than cost of borrowing by GoAP, for a tenor of
15 years with a 3-year moratorium on principal repayments (no
moratorium on interest payments).
Debt servicing of Sub Loans:
Semi-annually from the ULBs to the Trust (APUIF). In the case of
Use of intercepts of state
arrears over 12 months, APUIF shall: revise repayment schedule,
devolutions
with appropriate additional interest charges; and failing that,
approach GoAP to clear arrears and penalties through intercepts
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APMDP Operations Manual
Issue
Terms of Financing
of state devolutions to ULBs.
In addition, all the borrowers should have the institutional capacity to implement the project
and to operate and maintain the constructed facilities in a satisfactory manner. In case where
the institutional capacity of the borrower is not adequate, the APUIF would require the
project sponsor to procure the technical assistance services.
6.3
Disbursement Procedures:
(4) Sanction/disbursements/Operation of Bank Account: Based on the appraisal report and
approval of SC, the funds will be released to APUIF bank account from PD account of CDMA.
The APUIF will maintain a separate bank account for APMDP funds. Once the proposed loan
is sanctioned by the APUIF or the delegated arrangements ordered by the Board, the funds
will be transferred through a banking channel to ULBs bank account.
Typically, the conditions of sanction would also specify the nature of collateral, if applicable,
and the methods of repayments, such as escrow accounts, if needed, etc. The conditions may
require that the borrower shall take out and maintain with responsible insurers such
insurance, against such risks and in such amount, as shall be consistent with normal business
practice. Disbursements would be made to the borrowers as detailed below:
The funding amount (Loan and Grant) will be disbursed in equal installments with grants
being disbursed first to reduce interest liability and would done on a pro-rata basis along
with ULB own contributions.
6.4
Initial disbursement:
Based on the recommendation of the MSU, with the approval of Secretary-APUIF, the grant
and loan components of the funding agreement will be released to the ULB as per the
disbursement schedule. Disbursal of funds to the ULBs from APUIF will be through transfer
of funds from the Bank account of APUIF to the Bank account of the ULB through electronic
transfer. The first installment of the funds will be released to the ULB after receipt of the
following documents.
1. Certified copy of the Council Resolution from the ULB for implementation of the
Project under APDMP and also to receive grants and borrow money for the project
from APUIF.
2. Details of Bank account opened exclusively for APURMS Project with the Banker of
APUIF.
3. Authorization / Mandate letter from ULB addressed to the Banker of APUIF to link
the ULB’s project bank account to the APUIF bank account with a view option, for
facilitating the on-line monitoring of the utilization of funds in the account by APUIF.
4. Funding agreement duly executed by the ULB
5. Approved Reform Action Plan.
6.5
Subsequent disbursals:
Subsequent disbursals will be made to the ULB on the submission of the following
documents.
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APMDP Operations Manual
 Action taken on approved Reform Action Plan.
 Latest Progress Report – Physical and Financial.
 Third Party Quality Control Report.
 Schedule-3 and Annexes 1,2,3&4 of Schedule-3 of Loan Agreement.
 Copy of Payment vouchers along with all enclosures for the payments made under
APURMS Project.
 Certified Bank statement from the beginning of the bank account maintained
exclusively for APURMS Project.
 Details of utilization of 10% ULB Contribution
 Inspection Reports
 Photographs relating to works undertaken under APURMS Project.
Standard disbursement letters / formats are presented in Annexure 11.
6.6
Retroactive Funding:-
The World Bank has indicated applicability of retroactive funding only from one year prior
to the date of signing the project agreement. The Government of Andhra Pradesh has
released a total of Rs.147.63 crores from 2004-05 to 2007-08 to APURMSP (now named as
APMDP) under the budget head of grants-in-aid. Subsequently the World Bank in its letter
March 16, 2009 (Annexure 22) indicated that whatever may not be retroactively financed
by the World Bank would be compensated in the form of increase in the loan amount by
the bank and corresponding decrease in the Andhra Pradesh government share out of the
total agreed project cost. Therefore the funds released as grants-in-aid out of Rs.147.63
crores which cannot be converted to loan under retroactive funding would be so
compensated to Government of Andhra Pradesh by the World Bank but cannot imply any
loan liability to the state or the ULBs. Therefore the GoAP may decide in respect of the
revision of ULB sub-loan agreements for this non-retroactive funding amount for
conversion as grants to ULBs.
With regard to the ongoing works under the above released amount of Rs.147.63
crores, the government issued G.M.No.5121/UBS/2008, MA & UD (UBS) Department, Dt.
25th March 2008 (Annexure-12) to drop the works which are not grounded, pending
agreement at ULB level or APUFIDC or which are held up for more than one month and the
action is being taken to close such works and to complete the balance. The World Bank has
further indicated that rebidding permission should be granted for revised cost only upon
certification of up to date audits of the ULBs so as to be eligible for reimbursements.
6.7
Financial Implifications upon GoAP:
The total project cost is the financial burden upon the Government of Andhra Pradesh with
the sub-loan amount refunded to APUIF by ULBs over 20 years period being utilized by
APUIF as revolving fund under the provisions of GO.MS.No.72, MAUD (UBS) Department,
Dt.18.2.2005 (Annexure-12).
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APMDP Operations Manual
Chapter 6
APMDP – Institutional Structure and Funds Flow
7.1
This section of the manual deals with APMDP management and institutional
structure and comprises (i) an overview of the organizational structure managing APMDP (at
EC, CDMA and APUF), (ii) job specifications/descriptions of team members, (iii) human
resource management procedures, (iv) APMDP financial management, and (v) systems and
procedures to manage APMDP, including record keeping and reporting and internal controls
and audits.
7.2
The overall responsibility of APMDP will be with the Municipal Administration &
Urban Development Department (MAUD) of Andhra Pradesh, acting through its various
agencies and committees. These are outlined with fund flow arrangements in the GO Ms.
No. 288, MA&UD Dept.(UBS), dated 21st April, 2009 presented in Annexure 12. The agreed
implementation arrangements component-wise are as follows:
a)
Components A [Policy and Institutional Development Support], B [Local
Capacity Enhancement], and D [Project Management Technical Assistance] : The
CDMA/MSU in collaboration with other line departments (DTCP, MEPMA, APUIF,
PHED) will implement all these components and will be responsible for complying
with all the financial management requirements in respect of these components,
including the GoAP and Bank reporting requirements. The CDMA will receive funds
through a budget allocation under the MAUD, as per regular financial and fund flow
procedures of the GoAP, and will maintain accounts, procure and receive goods and
services under this component.
b)
Component C [Urban Infrastructure Investment]: This component will be funded
through the AP Urban Infrastructure Fund (APUIF), which is a Trust registered under the
Indian Trust Act. The APUIF is an intermediate entity which will receive funds from the
CDMA, and will fund the sub-projects at the ULB level by providing sub-loans and capital
grants to them.
7.3
The flow of funds for Technical Assistance and Infrastructure Investment Component
is shown in Annexure 13 through MSU Bank Accounts. MSU shall open separate Bank
Account for expenditure to be incurred by various Implementing Agencies like DTCP,
MEPMA, PHED and APUIF.
7.4
All performance reporting from the ULBs upwards will be through MSU and APUIF.
The channel of flow of performance reports is shown in Annexure 14.
Team Organization
MSU / CDMA Role and Team
7.5
The CDMA / MSU retains the central role in APMDP with responsibility to ensure
satisfactory implementation of the project in collaboration other departments, agencies and
ULBs as necessary, including APUIF, DTCP, MAUD, MEPMA and PHED. In addition, APUIF also
has a critical role to play, being the channelizing agency for all investment funds to ULBs.
The CDMA/MSU will establish a Monitoring and Evaluation System (outlined in Chapter 8)
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APMDP Operations Manual
which will provide the basis of performance monitoring and reporting for the entire project
and its components..CDMA / MSU will manage the Technical Assistance and will have
responsibility for periodic reporting to Bank for the entire project. MSU will also assist ULBs
in central procurement. The existing (approved) staffing of the MSU at CDMA / APUIF is
presented in Annexure-15.
MSU may outsource activities as and when needed, especially those where specific skill set
is required and is available only from the market. This needs to be coupled with a good
remuneration package commensurate with that of the market. The incremental operating
expenses of MSU will be met under the APMDP Project Management Component.
Project Appraisal Committee Role
7.6
The sub-projects Detailed Project Reports prepared under the Project by the
implementing agencies concerned shall be scrutinized by the MSU under the Commissioner
and Director of Municipal Administration and placed before the Project Appraisal
Committee for appraisal from the perspective of environment, social development, financial
and other perspectives as agreed under the World Bank project. The Committee shall meet
as and when required or once in a month.
1
2
3
4
5
6
Commissioner and Director of Municipal Administration
Secretary, APUIF
Mission Director, IKP-Urban (MEPMA)
Engineer-in-Chief, Public Health Deptt.
Director of Town and Country Planning
Project Director, MSU, APDMP
Chairman
Member
Member
Member
Member
Member, Convener
Steering Committee Role
7.7
In supersession of the orders issued in G.O. Rt. No. 1240 Municipal Administration
and Urban Development (UBS) Department dated 29.08.2008 the Steering Committee is
reconstituted with the following members.
1
2
3
4
5
6
7
8
9
Secretary to Government, MA&UD
Department
Commissioner and Director, Municipal Administration
Special Secretary to Government / Additional Secretary to Government/ Joint
Secretary to Government, MA & UD Dept.
Additional Secretary / Joint Secretary to Government, Finance Department
Managing Director, APUFIDC Ltd
Mission Director , MEPMA
Engineer-in-Chief Public Health
Director, Town and Country Planning
Project , MSU, APDMP
Chairman
Vice-Chairman
Member
Member
Member
Member
Member
Member
Member-Convener
7.8
The Steering Committee shall approve the annual action plan including of subprojects Detailed Project Reports (DPRs) appraised by the Project Appraisal Committee
(PAC), approve the operational guidelines under the Project , accord approval to engage
subject specialists on outsourcing basis including their remuneration , approve the
operations manual, resolve issues of coordination among the different Heads of
Departments who are implementing agencies or stakeholders in the project, review and
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APMDP Operations Manual
monitor the implementation of the Project . The Committee shall meet once in two months
or whenever deemed necessary for the implementation of the project.
Empowered Committee Role
7.9
The Empowered Committee (EC) shall review and direct the APDMP at the highest
level, resolve inter departmental issues. The Committee shall meet once in 6 months or as
and when required. The Empowered committee shall consists of the following members
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Chief Secretary
Principal Secretary (Finance)
Principal Secretary(Revenue),
Principal Secretary,(Transport),
Principal Secretary(EFST)
Principal Secretary (Irrigation)
Principal Secretary (IT),
Principal Secretary (Rural Development),
Commissioner and Director , Municipal
Administration
Managing Director, APUFIDC / Secretary
APUIF
Principal Secretary (MAUD),
Secretary (MAUD),
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member-Convener
APUIF Role
7.10 The APUIF will be the Implementing Agency with APUFIDC as its Fund Manager, for
the largest component of the projectUrban Infrastructure Investment (with an allocation of
nearly 85% of the loan). Project funds will be transferred from the Personal Deposit (PD)
account of the CDMA to the designated bank account of APUIF as per procedure approved
by the GoAP finance department, as reflected in the GOs related to the project. The bank
account of APUIF will be operated in accordance with the relevant circulars and guidelines
of the GoAP which will also detail the amounts to be released and their periodicity.
APUFIDC Role
7.11 APUFIDC is a state level entity set up by the GoAP to foster urban development and
its main areas of focus are Public-Private Partnerships (PPPs) and urban financing, including
access by ULBs to market based finance. The APUIF with APUFIDC as its Fund Manager shall
implement the PPP studies sub-component. APUFIDC however , is not involved in the
financing of the Bank project, but will play an advisory and technical support to the project
APMDP: Personnel Management
7.12 Personnel involved in managing APMDP will be government employees, augmented
as necessary, through external consultants. Specifically for management of sub-projects,
sub-borrowers/ULBs should ensure adequate presence of finance and procurement
personnel to manage the sub-projects under APMDP.
APMDP: Financial Management
7.13 MSU/CDMA will consolidate the actual expenditure information for all project
components into the Interim Unaudited Financial Reports (IUFR) and for seeking
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APMDP Operations Manual
reimbursements. The Municipal Strengthening Unit will be responsible for all reporting
requirements including those to the Bank. The IUFRs are purely financial reporting
documents, on the basis of which disbursement will be made. It will report on the “actual
expenditure” component wise, as certified by the internal auditors. There will be no cash
based forecasts, or contract management information in the IUFRs - these can be part of the
project monitoring reports (PMRs). The format of the IUFRs is presented in Annexure 16.
The IUFRs should broadly address:
i.
Physical progress will be a part of the Project monitoring reports, IUFRs are purely
financial data to be used for disbursement purposes. Responsibility of same lies with
MSU.
ii. Reconciliation of expenditures/sub-loans claimed from the Bank with expenditures/subloans made annually;
iii. Sub-borrowers’ (ULBs and/or Statutory Boards) quarterly financial reports reflecting the
physical and financial progress achieved in implementing sub-projects; and
iv. Annual financial statement of ULBs/Statutory Boards within three months of the fiscal
year end – the ULB finances is subject to audit by the Director, State Local Fund Audit or
an agency appointed by GoAP for this purpose.
The first IUFR for the project will be submitted to the Bank within 45 days of the end of the
first quarter from the date of loan effectiveness.
Systems and Procedures
7.14 Internal Control for State Level Policy and Institutional Development: According to
the current audit arrangement, DMA shall affect internal controls of the State Level Policy
and Institutional Development through the existing mechanism in the office CDMA. The
personnel shall carry out pre-audit functions and certify every bill/invoice before a payment
is made.
Internal Control for Investment Component
7.15 A reputed and experienced CA firm or firms will be appointed as the Internal Auditor
for the entire project and they will be responsible for concurrent audit of the project, as per
TORs agreed with the Bank. The internal auditor will certify each quarter, the “actual
expenditure” incurred by the CDMA and the APUIF on all the Components, and this
information will feed into the IUFRs. As part of their duties, the internal auditors will also
review the sub-loan portfolio of the APUIF and examine if the grants and lending to the ULBs
comply with relevant agreements signed between the APUIF and the ULB. The auditors will
also confirm that the relevant GoAP rules and procedures and applicable GOs are followed
in respect of operation of all the PD accounts and Bank accounts maintained under the
project. They will also review that the eligibility criteria for selection of ULBs have been fully
complied with. In each audit cycle the firm will also select and visit a sample of ULBs and
verify that the ULBs are utilizing the moneys as per the conditions of the sub-loan and -grant
agreements, and for the purposes for which the funding is given, and conduct a physical
verification of assets created through the sub-loans and Grants. They will also review and
verify that the expenditures incurred under other components and sub-components of the
project are in accordance with the internal financial rules and procedures of GoAP (the AP
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APMDP Operations Manual
Finance Code and Delegation powers, etc).
Internal Control for TA Component
7.16 The internal control for TA component will rest with the MSU at CDMA. MSU shall
ensure that the accounting practices followed for activities under the TA component
conform to the statutory and donor requirements.
External Audit
7.17 The CAG of India (through the office of the Accountant General, AP) will be
responsible for statutory audit of project financial statements (PFS). TORs for the audit have
been shared with CDMA, who will seek the agreement of the CAG on these TORs. APUIF
will be audited by a CA firm acceptable to the Bank, while the ULBs will be audited by the
State Audit Department, as required under their Act. The Bank will review the CAG’s audit
report of the project financial statements and that of the APUIF. Audit reports of the
individual ULBs receiving loans and grants under the project will be reviewed by the Project
Director and the CDMA. The Bank will be informed of any significant observations by the
ULB audits. The following audit reports will be received by the Bank within six months from
the close of the financial year (due date for receipt of audit reports is 30 Sept of the year)
and monitored in ARCS. : An external audit of the project shall also include the audit of the
State level implementing agencies including PD account of the Commissioner and Director,
Municipal Administration by the Accountant General, Andhra Pradesh as per the generic
Terms of References as agreed with the World Bank.
Implementing
entity
APUIF
Audit Report
Audited by
Entity audit report (with detailed Schedule of usage of Project
funds as sub-loans and Grants to ULBs under Component C)
Firm of Chartered
Accountants
acceptable to the
Bank
CAG/
Accountant
General, AP
CAG of India
CDMA
Audit of Project Financial Statements for the APMDP
DEA/ GOI
Special Account
MSU reporting to MAUD
7.18 Based on the executing agencies’ report, MSU will receive reports from all
Implementing Agencies including ULBs and APUIF and produce a consolidated progress
report, to be submitted to the MAUD and the World Bank, within one month of the end of
the relevant quarter. The contents of the progress report are mentioned in Monitoring and
Evaluation Section of the manual.
ULB Reporting to APUIF
7.19 APUIF shall make their sub-borrowers submit quarterly FMRs, in the agreed format,
to reflect the financial and physical progress achieved in implementing the approved subprojects. In addition, the participating ULBs will also be required to submit the annual
financial statement within three months of the fiscal year end, which will be subject to audit
by the statutory auditor of APUIF.
Procurement Arrangements
7.20 Sub-borrowers should ensure adequate staffing regarding sub-project procurement
and financial management. All procurement under APMDP shall be carried out in
accordance with the procedures defined in the relevant sections of the Operations Manual.
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APMDP Operations Manual
Disbursement Methods
7.21 Disbursements will be based on actual expenditures incurred under each
component, as reflected in the quarterly IUFRs.as per formats presented in Annexure 16.
A detailed overview of financial management aspects in presented in Annexure 17.
41
APMDP Operations Manual
Chapter 7: Governance and Accountability Action Plan (GAAP)
8.1
Purpose of the GAAP
The GAAP explicitly specifies a set of specific measures to ensure good governance and
accountability, by improving the effectiveness of the project activities, increasing
transparency and managing risks of fraud and corruption. It includes measures to:




8.2
Ensure effective implementation of project elements directly relevant to improving
governance and accountability,
Guard against and reduce fiduciary risks, especially those of fraud and corruption,
Enable beneficiary and general citizen to receive and provide information about the
project transactions and performance,
Safeguard the credibility of implementing agencies.
Development of the APMDP GAAP
The development of GAAP for APMDP involved the following:

Frank consultations with civil society organizations and beneficiaries, proposed
project implementing agencies, government officials at all levels, contractors and
industry experts to identify, assess and prioritize risks of fraud and corruption which
could dilute the intended outcomes of investments;

Review of lessons learnt from recent sector experience, in particular, the DFIDsupported Andhra Pradesh Urban Services for the Poor (APUSP), 2000-2006, which
prescribed:
- mandatory quality assurance and overview of asset creation and maintenance
and project implementation at ULB level by third parties, including citizens, NGO
and knowledgeable and interest groups.
- rigorous review of financial and procurement processes and insistence of clear
procedures to reduce opportunities for mismanagement, fraud and corruption;
- assignment of specific accountabilities for GAAP implementation, including clear
terms of reference, training and budgets for implementation, as consistently
described in all project documents (appraisal report, financial, procurement and
operational manuals);
- systematic and independent procedures to check compliance and
implementation of mitigation measures as needed;
- application of positive and negative incentives for compliance, deterrence and
management of risks of fraud and corruption.
- Development of a Supervision and Monitoring Plan to get reasonable assurance
of the proper working of GAAP and project controls.
These consultation and reviews were led the Center for Good Governance,
Hyderabad. The Bank has supplemented the GAAP thus developed with several additional
measures based on Bank-wide review of experiences and good practices.
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APMDP Operations Manual
Governance and Accountability Action Plan (GAAP) Matrix
Issue
A. Will and
Capacity for
Implementation
B. Sub-project
identification
and Design
C. Procurement
Risk and Rating
Mitigating Actions Already
Taken or Included
(and Estimated Cost*)
Agreement reached with
senior government officials on
development objectives
Necessary TA built in the
project ($17 million)
ULB eligibility designed to
reinforce performance
Additional Mitigation Actions
Proposed, Responsible
Agency (and Estimated Cost*)
Explicit covenants on critical
actions
2. Inadequate staffing and
training (Moderate)
Key professional staff,
including a capacity building
specialist in place
1. ULBs that do not fit project
approaches are given
subloans and grants for
political reasons (Moderate)
2. Design specifications
tailored to benefit particular
constituents or contractors
Clear selection criteria have
been agreed, including reform
commitment, existing financial
capacity, audit compliance
Hire competent independent
consultants, supervised by
MSU, to prepare Detailed
Project Reports (DPRs)
($7.8 million)
Detailed technical appraisal of
specifications by the Engineerin-Chief
Wide publicity is given in
newspapers
Additional positions with
competitive terms have been
authorized
Training plans are in place
($200,000)
CDMA to apply the criteria and
Bank team to review all
selections
1. Commitment for reform
and capacity building can
waver (Moderate)
1. Collusion among bidders to
seek higher prices, e.g. bids
significantly higher than the
43
Continuous dialogue with and
support for state and local
officials
Schedule and Milestones
of GAAP Actions*
On-going.
The first policy workshop
to be held on reform
monitoring and design in
progress in 2009.
Continuing series of policy
workshops; official
resolutions and legislation
expected from Yr 3
Advertisement of key
positions within a month
of Board approval
The criteria clearly agreed
and documented by
negotiations
Consultants hired for
independent review
($1.2 million)
Public disclosure of DPRs
The consultants and
public disclosure to be in
place from the project
start
The Bank will review at least
50% of DPRs at least for the
first two years
Initially hire consultants to
help manage the procurement
process ($450,000);
Training of key MSU staff
by effectiveness;
Broad ULB, PHED, and
APMDP Operations Manual
Issue
Risk and Rating
ECE; similar names and
addresses of different
bidders; bids received from
‘shell’ companies which then
outsource work to local
contractors (Moderate)
2. Lack of competition;
coercion to prevent
potential bidders
purchasing bidding
documents (High)
3. Framing of specifications
and selection criteria to
favor particular suppliers
(Moderate)
4. Delayed, inadequate or
improper bid evaluation to
Mitigating Actions Already
Taken or Included
(and Estimated Cost*)
Tender notices published in
different offices
Advertising in broadly
circulated newspapers
Additional bidder workshops
to publicize the opportunities
and procedures
Designers alerted to such risks;
Review by MSU, PHED, and
Bank
Detailed evaluation
procedures are in place
44
Additional Mitigation Actions
Proposed, Responsible
Agency (and Estimated Cost*)
Train ULB, PHED, and MSU
staff to manage procurement,
detect evidence of collusion
and coercion by bidders as
part of the Capacity
Enhancement component
Package contracts to attract
national (higher) level bidders;
Provide oversight by reputable
technical panel ;
Publish bid awards and trends;
Use of debarment provisions
Modify qualification criteria in
bid doc; Establish register of
potential bidders and send bid
notices; ($90,000)
Make bidding documents
available on the website;
Study the contracting industry
($120,000)
e-Procurement as soon as the
Bank-recommended
modifications are made;
Enhance use of Complaints
line
Train designers in minimizing
risks
Review by third party
specialists ($1.2 M incl. in #1)
Include consultants and
reputable CSO representatives
Schedule and Milestones
of GAAP Actions*
MSU staff training to be
implemented from year 1
The procedures to be
established and provided
to design consultants
from year 1
Make bid documents
available on websites
from the start
Contracting Industry
Study Yr 1-2
Starting from Yr 1
Training started using the
national-level training
APMDP Operations Manual
Issue
Risk and Rating
favor particular suppliers
(Moderate)
5. Delay or refusal of ULBs to
award contracts to
successful bidders (Low)
D. Supervision and
management of
contracts
1. Deliberate delays in
payments to contractors,
leading to corruption
and/or inadequate
contract performance
(Moderate)
2. Unjustified payments made
for incomplete and/or substandard work, or substandard quality of goods
delivered (Moderate)
E. Financial
Management
System and
Internal
1. Delayed and incomplete
reporting of expenditures
by multiple implementing
agencies, leading to poor
Mitigating Actions Already
Taken or Included
(and Estimated Cost*)
Bid records are maintained,
including evaluation records
Additional Mitigation Actions
Proposed, Responsible
Agency (and Estimated Cost*)
as evaluators;
Training of ULB and PHED
engineers to help in
evaluation;
Use of consultants to help
evaluation ($200,000)
Detailed bid records will be
required for CDMA clearance
and project financing
Procedures specify time limits Enforce performance
for contract award
standards on timeliness of
contract processing, at the
penalty of refusal to finance
ULBs authorized to process
Independent inspectors match
partial payments when
progress and payments ($1.2
portions of the work is done;
M); Implement a transparent
MSU scrutinizes and match
dispute resolution system at
monthly physical and financial CDMA upon grievances filed
progress reports
by contractors
Qualified and experienced
Responsibilities of PHED
engineers will be provided and (engineers on deputation) and
held to strict rules that they
consultants (for inspection)
ensure that payments match
will be tightly defined and
quality of work done, or
enforced;
products purchased
Third party consultants will be
engaged for quality assurance
($1.2 M)
Monthly reporting system is Closer follow-up and
mandated at the ULB level
monitoring from CDMA
(principal implementing
agency); Supervision
45
Schedule and Milestones
of GAAP Actions*
institute in Hyderabad as
well as Bank specialists
In Yr 1 and 2 consultants
will be utilized heavily
The procedures will be
articulated as part of
subloan contracts from
project start
Independent inspectors
start work from the start
of first subproject;
Grievance Redressal
mechanism to be
operational in Yr 1.
Consultants and thirdparty inspectors will be
hired as a pool at MSU
from the project start
This procedure will be
made a part of subloan
contracts from project
start
APMDP Operations Manual
Issue
Controls
Risk and Rating
Mitigating Actions Already
Taken or Included
(and Estimated Cost*)
planning and control (High)
2. External auditors (CAG)
provide an audit certificate
but do not provide
independent audit opinion
nor identify internal
control issues as part of
the certification exercise
(High)
This is a systematic issue for
the country as a whole and its
resolution will continue be
sought at the national level
3. Delayed ULB audits and the
neglect of key audit
observations (High)
Only those ULBs that have upto-date audits with key audit
observations addressed will be
eligible to participate in the
project and receive subloans
and grants
4. Failure of project progress
reports to match financial
disbursements with
physical progress
(Moderate)
F. Compliance
with
Environmental
and Social
Safeguards
Non-compliance with
environmental and social
framework safeguards,
causing adverse impacts and
non-sustainability of the sub-
Social and environmental
safeguard framework to be
distributed to implementation
agencies and design
consultants
46
Additional Mitigation Actions
Proposed, Responsible
Agency (and Estimated Cost*)
consultants to help report;
suspension of disbursement
when reports overdue
Private auditors will be hired
for ULB audits (approx.
$500,000); management
consultants hired under the
Capacity Enhancement
components will be asked to
provide observations and
recommendations on control
issues ($3 M)
CDMA to help hiring and
management of CA firms
($500,00)
Internal auditors or third party
inspectors will certify
concurrently the expenditure
incurred by the ULBs and
verify physical progress. (part
of $1.2 M). ULBs will address
audit findings promptly, or risk
suspension.
Safeguard specialists at MSU.
Capacity building for the ULB /
MSU staff on environmental
and social safeguards;
Environmental and social
Schedule and Milestones
of GAAP Actions*
Private auditors already
being hired.
The TA to start in year 1
This has been agreed and
is being applied.
Third party inspectors will
be hired upon start of
project.
Safeguard specialists to be
on board by negotiations;
GRMS system to become
operational in Yr 1.
APMDP Operations Manual
Issue
Risk and Rating
Mitigating Actions Already
Taken or Included
(and Estimated Cost*)
projects (Moderate)
G.
Communication,
Participation, and
Feedback
Mechanisms
1. Lack of relevant
information or their limited
accessibility limits citizens
engagement and hence
project benefits, safeguards,
and deterrence against noncompliance and corruption
(Substantial)
2. Inaccessible and ineffective
complaints and grievance
system limiting the broad
input for better project
management (Moderate)
Rights to Information Act,
Community Participation Law,
and Public Disclosure Policies
are actively enforced in AP
Environmental and social
safeguards framework has
been disclosed
Implementation of the public
disclosure and participation
will be monitored as part of
progress reports
Grievance Redressal and
Monitoring System (GRMS)
available on line
Additional Mitigation Actions
Proposed, Responsible
Agency (and Estimated Cost*)
audits to identify remedial
measures;
Strict monitoring by MSU and
independent inspectors;
Invite citizen participation in
public consultation and
Grievance Redressal System
A proactive public disclosure
system and communications
strategy will be implemented
to make information available
in accessible languages, on
websites and ULB offices or
citizen centers, and to conduct
effective public hearings
($350,000)
GRMS will also be available at
offices of ULB, PHED, and DMA
($$1.2 M)
The GRMS and dispute
resolution system will be
overseen by MAUD
Schedule and Milestones
of GAAP Actions*
Broad capacity building to
be part of Capacity
Enhancement TA
An initial version of the
communication strategy
will be put into effect at
start of project and refined
during project.
On-line GRMS now
operational.
Off-line GRMS to be
established by end of Yr 1.
* Most of the technical and institutional actions to mitigate risks are part of the Capacity Enhancement and Project Management Support
Components, with total costs of $14.5 million and $22.1 million, respectively. Other measures are conditions of financing.
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APMDP Operations Manual
Chapter 8: Monitoring & Evaluation (M&E)
9.1
MSU will be responsible for the overall project monitoring and evaluation (M&E), based
on reports from executing agencies and its own evaluation. The baseline and output indicators
will be included in the DPR in the case of infrastructure subprojects and in the consultant
reports in the case of policy and capacity development components. Eventual outcomes will be
reported by responsible ULBs and departments, and evaluated by CDMA-MSU. These
outcomes will be compared to the Results Monitoring Framework (detailed in Table 1 below).
Each executing agency will submit to CDMA quarterly progress reports covering the physical
and financial progress of their respective activities, except the ULBs which would submit
monthly reports to the CDMA of progress in urban investment sub-projects (format as
presented in Annexure 18). CDMA will review these reports as well as output or outcome
indicators, identify the issues and interventions needed, and produce quarterly project
implementation reports to be provided to MAUD and the Bank.
9.2
For ULB capacity building, MSU has employed a Capacity Enhancement Specialist
dedicated to intensively support and M&E of reform actions and TA. Issues encountered by
ULBs in planning and managing the infrastructure subprojects as well as TA will also be used as
an input for M&E of capacity building. The M&E findings and recommendations will be
reported to CDMA and used for modification of OM and on-going TA.
9.3
The Bank will monitor and support the implementation through the review of the
reports by CDMA and consultants, along with field visits at least twice a year. The team will
include economic, financial, engineering, governance and procurement specialists. In the initial
two years additional field visits will be made by engineering and fiduciary specialists. A midterm review will be conducted in about October 2011 with participation of independent
evaluators.
Urban Service Delivery Indicators
9.4
Monitoring urban service delivery outcomes is a critical part of the overall M&E system
for APMDP. The urban service delivery indicators that will be monitored under APMDP will be
consistent with the JNNURM framework for indicators. Tracking service delivery outcomes in a
systematic manner will require two main steps: (i) Baseline indicators to be collected /
compiled when a ULB initially submits the Initial Project Proposal (IPP). A number of
instruments can be adopted for measuring baseline including secondary information, ULB
databases, surveys, etc. (ii) Service delivery outcomes to be measured after completion of the
sub-project at the ULB. This should be done through both the ULB as well as independent
surveys / consultants.
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APMDP Operations Manual
Table 1: Results Framework
PDO
The project’s specific
development objectives are
to: Improve key urban
services in selected cities;
and
Improve the capacity of
Urban Local Bodies (ULBs) to
develop and manage urban
services
Outcome Indicators
Local residents’ satisfaction with urban
services increase by at least 15%;
Subproject-specific indicators such as
hours of water supply
Use of Outcome Information
From Yr 3: Modify OM to increase
relevance or quality of subprojects
Participating ULBs increase revenues at
least by 20% on average by Yr 3; At least
30 ULBs prepare and improve municipal
services status report and improvement
plans.
From Yr 4: Conduct further policy
dialogue and modify capacity
enhancement TA
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APMDP Operations Manual
Intermediate Outcomes
Urban Academy produces
pertinent analysis of and
recommendations for urban
development, and trains
officials
Improvements in the state’s
urban finance policy
framework
Increased clarity and
efficiency in procedures of
urban planning
30 ULBs improve urban
planning frameworks
Urban sector human
resources in the state acquire
improved skills
Progress and outputs of
urban infrastructure
subprojects
ULBs carry out measures to
strengthen financial and
technical capacities
ULBs and CDMA develop
improved capacity for
financial management and
control, and project
monitoring and management
Intermediate Outcome Indicators
Media reports or State Assembly
discussion of Urban Academy’s analyses
and recommendations from Yr 4;
At least 75% of officials trained report
acquiring useful knowledge from Yr 4
Completion of reports on ULB fiscal
autonomy and urban capital financing
framework by Yr 3; their review by GoAP
and adoption of half or more of
recommendations by Yr 5
Reduction in the number of steps and files
required for urban plan preparation and
development approvals from Yr 4
GIS maps and revised General Towns Plans
completed and formally adopted by at
least 24 participating ULBs by Yr 4
At least 75% of staff and officials trained
report gaining new useful skills or
knowledge; at least 50% report using it on
the job
Physical and financial progress at ULBs;
Targets for specific subprojects achieved,
such as the added water supply capacity
No. of ULBs taking specific actions to
increase revenue, improve O&M and
financial management, etc.; and
Their aggregate effects from Yr 3
Implementation progress and evaluation
reports are submitted on time, at least
80% from Yr 2, 90% from Yr 4;
At least 80% of participating ULB accounts
audited on time and without qualification
from Yr 3
50
Use of Intermediate Outcome
Indicators
Identify areas of weakness and
direct further consultant and Bank
assistance.
Monitor consultant reports and
policy workshops to strengthen
relevance and commitment, and
provide supplemental TA
The results fed back as
recommendations for further
reform
Identify main areas of improvement
and disseminate results to other
ULBs; Identify areas of
dissatisfaction with revised Plans
and provide assistance for further
corrective work
Identify areas of weakness and
adjust the advisory and training
programs
Refinement of procedures; increase
or adjustment of design and
implementation assistance
Consider project measures – such
as the strengthening of subproject
conditions, or additional TA - to
strengthen the efforts or effects
Increase or adjust technical
assistance and training if needed
APMDP Operations Manual
Approach to Monitoring and Evaluation
9.5
Two Types of Monitoring and Evaluation (M&E) will be carried out:
Project Implementation Monitoring of progress and quality of implementation of project
components, by the implementing agencies as well as the Bank, to:
 Facilitate timely and satisfactory implementation through identification and analysis of
delays, failures or constraints; and
 Ensure fiduciary accountability and progress on implementation Governance and
Accountability Action Plan (GAAP).
Outcome Monitoring, to assess outcomes against objectives of each subcomponent, would
be undertaken after the subcomponent is completed, mostly after Mid Term Review. In
some cases the outputs would be the primary target of monitoring. The targets and types
of indicators for outcome monitoring are presented in Table 2 below.
9.6
Institutional Arrangements for M&E: CDMA-MSU will be responsible for project M&E,
collecting data on its own but mainly through implementing and supporting agencies (ULB,
DTCP, PHED, etc.) coordinated by the Capacity Enhancement Specialist / PD of MSU with
support of one Individual Consultant for M&E. It would provide various regular reports to
MAUD, APUIF, and the Bank in a timely manner. The necessary management information
system for M&E, including formats and guidelines for data collection will be instituted within
the first six months of implementation of APMDP. CDMA-MSU will engage consultants to
develop the M&E information system, augment and develop its own M&E capacity through
Technical Assistance under the Project Management Component and carry out special surveys,
analysis, and evaluation.
9.7
Data Collection and Reporting: will be conducted mainly through the following types of
instruments:



ULBs to MSU: ULB level Monthly Reports of physical and financial progress on (i) urban
investment subproject implementation (in the format presented in Annexure 18) (ii)
implementation status of MRAP; (iii) implementation status of CEAP.
Other agencies to CDMA-MSU: Quarterly Progress reports from other agencies (DTCP,
APUIF, PHED, etc) to CDMA / MSU on status of implementation of APMDP
CDMA / MSU to Bank: Quarterly Project Monitoring Reports (PMR), compiled and
submitted by CDMA / MSU, will include:
Summary and consolidation of ULB monthly reports and progress reports of
state-level components;
Quarterly IUFRs required by Bank (format presented in Annexure 16);
Select results indicators;
Identification and analysis of issues;
Revised implementation plan for the next 12 months
Data on procurement done by ULBs as per Bank format agreed
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
Concurrent audits for fiduciary purposes (FM and Procurement), carried out semiannually by consultants hired by CDMA / MSU, will cover performance of implementing
agencies with regard to procurement and FM aspects

Outcomes monitoring and evaluation will be done mostly through external consultants
engaged by CDMA / MSU, starting from the Mid-Term Review.
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Table 2: Arrangements for Results Monitoring
Outcome Indicators for each
Objective
Baseline
local residents’ satisfaction with
urban services increase by at
least 15%
Varies
by ULB
YR1
YR2
Target Values
YR3
YR4
+10%
Data Collection and Reporting
Frequency and
Data
ResponsiReports
Collection
bility
Instruments
At the time of
Household
ULB and
subproject
and business
CDMA
proposal, and
Survey
1-2 years after
completion
ULB, PHED,
Operating
and CDMA
reports
YR5
+15%
Subproject-specific indicators
such as hours of water supply;
volume of waste safely disposed
Specific to subprojects
Participating ULBs increase the
revenues
Vary
by ULB
+20%
Municipal services report of the
status assessment and
improvement plans
0
10 or
more, for
key
services
Plan
approved
+35%
Annual
Budget and
audit reports
ULB and
CDMA
20 or more 30 or more;
10 updated
or
expanded
Prepared at
the time of
subproject,
updated and
expanded in 23 years
ULB and
consultant
reports
ULB and
CDMA
Staff
placed
Training
started
Analytical
and policy
notes
submitted
Quarterly
Progress /
Consultant
reports
CDMA
Interim
reports
Draft final
reports
GoAP
signs-off on
final report
GoAP
adopts part
of
recommen
dations
Quarterly
Progress /
Consultant
reports
CDMA
Final
Revision
Implement
Quarterly
Progress, and
CDMA,
-
Outcome Indicators for Each Component
State level institutional and policy development support
Urban Academy
operational
becomes
GoAP carries out urban finance
framework studies and adopt
part of recommendations
Streamlining planning rules
Draft
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APMDP Operations Manual
Outcome Indicators for each
Objective
Baseline
GIS Unit operational
Capacity Enhancement
Local officials and staff receiving
training in new skills and
knowledge.
0
ULBs prepare and implement
capacity building program
0
Participating ULBs increase
revenues
0
YR2
Target Values
YR3
YR4
YR5
Data Collection and Reporting
Frequency and
Data
ResponsiReports
Collection
bility
Instruments
Consultant
DTCP
reports
Quarterly
Progress /
CDMA,
Consultant
DTCP
reports
report
report
of rules
new rules
Plan
approved
Procurement
complete
Data
collection
starts
At least 30
GIS maps
and
analyses
for ULBs
and GoAP
At least 60
GIS maps
and
analyses
provided
for ULBs
and GoAP
At least
100
trained
At least
200
trained; at
least 70%
using skill
At least
400
trained; at
least 70%
using skills
Quarterly
Progress
reports;
consultant
reports;
survey
CDMA
At least 20
certified
At least 50
certified
At least 75
certified
Quarterly
At least 40
ULBs
At least 60
ULBs
20% or
more in at
least 20
ULBs
Complete
for at
least 10
ULBs
25% or
more in at
least 30
ULBs
Complete
for at least
20 ULBs
35% or
more in at
least 50
ULBs
Complete
for 30 ULBs
Annual
Progress, and
Consultant
reports
Progress, and
Consultant
reports
Progress, and
Consultant
reports
CDMA
At least 30
ULBs
At least
500
trained; at
least 70%
using the
skills
At least
100
certified
At least 80
ULBs
Progress, and
Consultant
reports
CDMA,
DTCP
0
ULB staff receiving professional
certification
General town plans prepared or
revised with GIS and resident
participation
YR1
At least 20
ULBs
54
Quarterly
Quarterly
CDMA
CDMA
APMDP Operations Manual
Outcome Indicators for each
Objective
Baseline
YR1
YR2
Target Values
YR3
YR4
YR5
Urban Infrastructure Investment
Subproject-specific indicators and targets such as:
 Increased number of households with municipal connection or easy access to public stand post;
 Increased number of households with access to improved sanitation such as sewers and septic tanks
 Reduction in flooding
 Increase in volume of sewage or solid waste safely collected and disposed of
 Number of the poor receiving job training or other livelihood support
Project Management Support
Complete and timely progress
reports
Number of DPRs meeting agreed
standard and criteria within the
first sub
Development of Public-Private
Partnership urban investments
Third-party and social audit of
procurement, implementation,
and disbursement vs. official
reports
At subproject
start, and 1, 2,
3 years after
completion
Survey,
Consultant
reports
CDMA,
PHED
Monthly,
Quarterly
Progress
reports,
Consultant
reports
Appraisal
summaries in
Progress
report, and
Bank review
Progress
reports,
Consultant
reports
CDMA,
PHED
Progress
reports,
Consultant
reports
CDMA,
PHED
More than
80% on
time
More than
90% on
time
More than
90% on
time
More than
95% on
time
More than
70%
satisfy.
More than
80%
satisfactory
More than
80%
satisfactory
More than
80%
satisfactory
As DPRs are
submitted to
CDMA and
Bank
Subproject
s at least
$10m
worth
started
Less than
5% find
material
discrepancy
Annual
Subprojec
ts at least
$10m
worth
planned
Less than
10% find
material
discrepancy
55
More than
95% on
time
Data Collection and Reporting
Frequency and
Data
ResponsiReports
Collection
bility
Instruments
Less than
5% find
material
discrepancy
Annual
CDMA,
PHED,
Bank
CDMA,
APUFIDC
APMDP Operations Manual
Annexures
(Templates where presented are indicative
and would be adapted as necessary during
implementation)
APMDP Operations Manual
ANNEXURE 1
PROCUREMENT FRAMEWORK AND PROCEDURES
APMDP Operations Manual
Annexure 1: Procurement Framework and Procedures
CHAPTER- I
INTRODUCTION
1.1
GENERAL
The project objectives are to help improve urban services, and the capacities at State and local levels
to sustain and expand such improvements. Procurement under the proposed project would be
carried out in accordance with the World Bank’s "Guidelines: Procurement under IBRD Loans and IDA
Credits" dated May 2004 (Revised October 2006); and "Guidelines: Selection and Employment of
Consultants by World Bank Borrowers" dated May 2004 (Revised October 2006), and the provisions
stipulated in the project’s Legal Agreement. Procurement arrangements for various items under
different expenditure categories are described below.
1.2
OBJECTIVE
Under the aforesaid background and scenario, the Procurement Manual has been prepared setting
forth the procedures and guidelines for procurement of works, goods and services by the program
partners, conducive to the program environment.
1.3
SCOPE OF THE MANUAL
Manual contains procedures to be followed for procurement of goods, works, and services at
different levels. Sample drafts of tender notice, Invitation to Quote (ITQ)/Bid, contract formats,
market survey format, format for keeping accounts of material, performance security format, bank
guarantee format, supply order format and work order formats etc. are given in the Manual. Checks
and controls required to maintain transparency in the procurement process have been covered and
as far as permissible, clauses for exercising in-built checks and controls have been inserted by fixing
value threshold of tenders at different levels of stakeholder.
1.4
LIMITATIONS OF THE MANUAL
The Manual is limited to the efficient use by all stake holders of the project; like the MAUD, DMA,
MSU, PHED and the ULBs. The Manual shall be a reference tool for the project partners and related
agencies and changes, if any, will be subject to approval of the World Bank.
1.5
REFERENCE TO THE WORLDBANK
The terms “World Bank’ or ‘Bank’ have been used in this manual and wherever any clearance
requirements or other references have been made.
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APMDP Operations Manual
CHAPTER - II
PROCUREMENT POLICY, PLAN AND STRATEGY
2.1
GENERAL
The aim of procurement is to obtain right quality of works, goods or services at reasonable and
competitive
prices,
giving
equal
opportunities
to
those
individuals/companies/
firms/manufacturers/builders who are capable of delivering the goods, works and services.
Procurement policy also needs to provide incentive and encouragement for development of national
institutions, consultancy firms, manufacturers, contractors etc. Following are the main principles
universally accepted and followed:





2.2
Need for economy and efficiency
Need for high quality services
Fair opportunity to all eligible bidders
Development of domestic contracting, manufacturing and consulting firms
Transparency in the procurement process
PROCUREMENT PLAN
Procurement plans/ schedules including the description of goods, works and services to be procured
along with their value and consistent with technically and administratively approved estimate, are
required to be prepared for the first and subsequent years, in accordance with the budgetary
provisions. The actual procurement is to follow the approved plans.
During preparation of the procurement plans/ schedules, packaging should be appropriately done.
Items of similar nature, which can be supplied by same set of firms, should be packaged together to
achieve economies of scale. They should be evaluated on slice cum package basis after taking into
account cross discounts offered. Aggregate value of total package will form the basis for determining
the procurement method as well as the review requirement of the World Bank.
The initial project procurement plan dt. __________________ has been approved by the World
Bank.
2.3
METHODS OF PROCUREMENT
Following methods will be used based on the value and nature of purchase:(a) Goods, Works and Services (Other than Consultancy Services):
 International Competitive Bidding (ICB)
 National Competitive Bidding (NCB)
 Limited Competitive Bidding (LCB)
 Shopping
 Direct Contracting
(b) Consultancy Services:
 Quality and Cost - Based Selection (QCBS)
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





2.4
Quality - Based Selection [QBS]
Selection Under a Fixed Budget (FBS)
Least - Cost Selection (LCS)
Selection Based on the Consultants’ Qualification (CQS)
Single Source Selection (SSS)
Selection of Individual Consultants
INTERNATIONAL COMPETITIVE BIDDING (ICB) AND SELECTION OF CONSULTANTS FOR
SERVICES WHERE FOREIGN CONSULTANTS ARE INVOLVED
In case of any ICB procurement, World Bank guidelines and Standard Bidding Documents/ Standard
Request for Proposal as applicable will be followed.
2.5
DELEGATION OF AUTHORITY
Particulars
Final Appraisal of DPRs
Approval of DPRs
Approval for variation in rates at the
time of procurement of individual
items in DPR
Procurement approval for Goods,
Works & Services (other than
consultancy services)
Procurement approval for
Consultancy Services
2.6
Value
All values
All Values
All values
Competent Authority
Project Appraisal Committee
Steering Committee
Steering Committee
All values
Steering Committee
All values
Steering Committee
PROCUREMENT AUDIT
Procurement audit refers to post auditing of procurement files and documents relating to contracts
for procurement of goods, works and consultancy services. It will be conducted by an independent
agency along with financial audit. The TOR of financial audit will include sufficient points to cover
issues on procurement by all stakeholders. Procurement audit is basically carried out to ascertain
whether the procurement procedures were correctly and completely followed, both in letter and
spirit. It brings out omissions/commissions and lapses, whether on account of poor or inadequate
understanding of the procedures or willful negligence including likely fraud/ corruption evidenced
during the audit. The report and observations of procurement audit therefore, also serve as a guide
for taking remedial measures to streamline and improve the procurement system. The TOR for the
financial and procurement audit will be required to be cleared with the World Bank before hiring the
agencies.
GoAP will share all reports of the above-mentioned external audits with the Bank during the
supervision missions.
Cases of non-compliance will be reported to the relevant authorities for necessary remedial actions.
In addition, the World Bank will carry out its own post review of contracts.
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2.7
MISPROCUREMENT
The Bank does not finance expenditures for goods, works and consultancy services, which have not
been procured/ contracted in accordance with the agreed provisions of the loan agreement and as
further elaborated in Procurement Plan agreed with the Bank. In such cases, the Bank will declare
misprocurement and it is the policy of the Bank to cancel that portion of credit allocated to the
goods, works, and consultancy services that have been misprocured. The Bank may, in addition,
exercise other remedies provided for under the Loan Agreement. Even when the contract is awarded
after obtaining “no objection” from the Bank, the Bank may still declare misprocurement, if it
concludes that the “no objection” was issued on the basis of incomplete, inaccurate, or misleading
information furnished by the Borrower or the terms and conditions of the contract had been
modified without Bank’s prior approval.
2.8
COMPLAINT HANDLING MECHANISM
In order to deal with the complaints received from contractors/suppliers effectively, a complaint
handling mechanism is available at the level of Project Director. On receipt of complaints, immediate
action is initiated to redress grievances. All complaints are dealt with at levels higher than those at
which the procurement process is being undertaken. Complaints and the allegations made in the
complaints are thoroughly enquired into and if found correct, appropriate remedial measures are
taken by the appropriate authorities.
In cases where an individual staff is found responsible, suitable disciplinary proceedings are to be
initiated against such staff under the Civil Services Conduct Rules at the State level. The receipt of
any illegal gratification by staff is to be considered as misconduct and results in disciplinary
proceedings against such staff, in addition to penalties under the law.
The existing provisions under the law, the discipline and appeal rules and the directives of the Central
Vigilance Commission are to be strictly followed in dealing with the complaints of
contractors/suppliers.
If a bidder complains to the Bank, the Bank may examine the complaint in consultation with the
project authorities. The Bank may also require a bidder to be debriefed, if the bidder wishes to
ascertain the grounds on which its bid was not selected.
2.9
FREQUENCY OF PROCUREMENT SUPERVISION MISSION PROPOSED
Procurement supervision shall, generally, be part of the Bank’s periodic Supervision/ Review
missions, and will be undertaken once every six months or as deemed necessary by the Bank.
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CHAPTER- III
PROCUREMENT OF CONSULTANCY SERVICES
3.1
GENERAL
Services are defined as providers of systematic organized activities that may carry out a training
programme, workshop, IEC activities, feasibility studies, environmental studies, detailed design of
structures, preparation of technical schemes, preparation of data, construction supervision of
engineering works, advisory services etc.
Following considerations are generally followed in designing the procedures and guidelines for
procurement of various services as described above.
I.
II.
III.
IV.
V.
Quality
Economy and efficiency
Opportunity to qualified experts
Encourage and develop national/ local consultants
Transparency in selection process
The employer should first assess the need of assignment and then prepare the Terms of Reference
and estimated cost consistent with objectives of the assignment so that cost of assignment may be
estimated considering the fee and remuneration of specialist & support staff on man-months basis,
reimbursable costs and miscellaneous expenses.
3.2
CONTRACT TYPES FOR PROCUREMENT OF CONSULTANCY SERVICES
Three types of contracts are currently in use for contracting services of Consultants as described
below:
(a)
(b)
(c)
3.3
A lump sum contract for assignments where scope of work, duration of work are clearly
defined. Payment is indicated to be made upon delivery of outputs as specified. Such
contracts are suitable for feasibility studies, detailed design of civil structures etc.
Time based: Assignments like construction supervision of engineering works, training
assignments, advisory services etc. where scope of work and duration could not be defined
are contracted on time-based type of contract where payment is decided to be made at
hourly, daily or monthly rates plus reimbursable expenses using actual expenses or agreed
upon unit prices.
Percentage contract: Architectural services, engineering services, procurement services etc
are suitable to be contracted on percentage basis where payment is agreed upon with the
consultants to be paid at certain percentage of the actual cost of the project or goods as
per market norm or standard practice of the industry.
STEPS FOR HIRING OF CONSULTANTS
Steps taken for hiring of consultants under different methods are explained in the following paras
and also listed in Appendix-III. World Bank guidelines for procurement of consultancy services will be
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APMDP Operations Manual
referred for details and the Bank’s standard bidding documents shall be used for hiring of
consultancy services.
3.4
PROCEDURE FOR PROCUREMENT OF CONSULTANCY SERVICES UNDER DIFFERENT METHODS
3.4.1 Quality and Cost-Based Selection (QCBS)
(i) The Selection Process
QCBS uses a competitive process among short-listed firms that takes into account the quality of the
proposal and the cost of the services in the selection of the successful firm. Cost as a factor of
selection shall be used judiciously. The relative weight to be given to the quality and cost shall be
determined for each case depending on the nature of the assignment.
The selection process shall include the following steps:
(a) preparation of the TOR;
(b) preparation of cost estimate and the budget;
(c) advertising;
(d) preparation of the short list of consultants;
(e) preparation and issuance of the RFP [which should include: the Letter of Invitation (LOI);
Instructions to Consultants (ITC); the TOR and the proposed draft contract];
(f) receipt of proposals;
(g) evaluation of technical proposals: consideration of quality;
(h) public opening of financial proposals;
(i) evaluation of financial proposal;
(j) final evaluation of quality and cost; and
(k) negotiations and award of the contract to the selected firm.
(ii) Terms of Reference (TOR)
MSU shall be responsible for preparing the TOR for the assignment. TOR shall be prepared by a
person(s) or a firm specialized in the area of the assignment. The scope of the services described in
the TOR shall be compatible with the available budget. TOR shall define clearly the objectives, goals,
and scope of the assignment and provide background information (including a list of existing relevant
studies and basic data) to facilitate the consultants’ preparation of their proposals. If transfer of
knowledge or training is an objective, it should be specifically outlined along with details of number
of staff to be trained, and so forth, to enable consultants to estimate the required resources. TOR
shall list the services and surveys necessary to carry out the assignment and the expected outputs
(for example, reports, data, maps, surveys). However, TOR should not be too detailed and inflexible,
so that competing consultants may propose their own methodology and staffing. Firms shall be
encouraged to comment on the TOR in their proposals. The borrower’s and consultants’ respective
responsibilities should be clearly defined in the TOR.
(iii) Cost Estimate (Budget)
Preparation of a well-thought-through cost estimate is essential if realistic budgetary resources are
to be earmarked. The cost estimate shall be based on the Borrower’s assessment of the resources
needed to carry out the assignment: staff time, logistical support, and physical inputs (for example,
vehicles, laboratory equipment). Costs shall be divided into two broad categories: (a) fee or
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APMDP Operations Manual
remuneration (according to the type of contract used) and (b) reimbursable, and further divided into
foreign and local costs. The cost of staff time shall be
estimated on a realistic basis for foreign and national personnel.
(iv) Advertising:
For all projects the Borrower is required to prepare and submit to the Bank a draft General
Procurement Notice. The Bank will arrange for its publication in UNDB online and in the dgMarket.
To obtain expressions of interest, the Borrower shall advertise a request for expressions of interest
for each contract for consulting firms in the national gazette or a national newspaper or in an
electronic portal of free access. In addition, contracts expected to cost more than US$ 200,000
equivalent shall be advertised in UNDB online and in dgMarket. Borrowers may also advertise
requests for expressions of interest in an international newspaper or a technical magazine. The
information requested should be the minimum required to make a judgment on the firm’s suitability
and not be so complex as to discourage consultants from expressing interest. Not less than 14 days
from date of posting on UNDB online shall be provided for responses, before preparation of the short
list.
(v) Short List of Consultants:
The Borrower is responsible for preparation of the short list. The Borrower shall give first
consideration to those firms expressing interest that possess the relevant qualifications. Short lists
shall comprise six firms with a wide geographic spread; with no more than two firms from any one
country and at least one firm from a developing country, unless qualified firms from developing
countries are not identified. The Bank may agree to short lists comprising a smaller number of firms
in special circumstances, for example, when only a few qualified firms have expressed interest for
the specific assignment or when the size of the contract does not justify wider competition. For the
purpose of establishing the short list, the nationality of a firm is that of the country in which it is
registered or incorporated and in the case of Joint Venture, the nationality of the firm appointed to
represent the Joint Venture. The Bank may agree with the Borrower to expand or reduce a short list;
however, once the Bank has issued a ‘no objection’ to a short list, the Borrower shall not add or
delete names without the Bank’s approval. Firms that expressed interest, as well as any other firm
that specifically so request shall be provided the final short list of firms.
The short list may comprise entirely national consultants (firms registered or incorporated in the
country), if the assignment is below $ 500,000 equivalent, a sufficient number of qualified firms is
available for having a short list of firms with competitive costs, and when competition including
foreign consultants is prima facie not justified or foreign consultants have not expressed interest.
However, if foreign firms express interest, they shall be considered. The nature of the shortlist will be
established in the procurement plan and agreed with the Bank.
The short list should preferably comprise consultants of the same category, similar capacity, and
business objectives. Consequently, the short list should normally be composed of firms of similar
experience or of not-for-profit organizations (NGOs, Universities, UN Agencies, etc.) acting in the
same field of expertise. If mixing is used, the selection should be made using Quality-Based Selection
(QBS) or Selection Based on the Consultants’ Qualifications (CQS) (for small assignments). The short
list shall not include Individual Consultants.
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(vi) Preparation and Issuance of the Request for Proposals (RFP):
The RFP shall include (a) a Letter of Invitation, (b) Information to Consultants, (c) the TOR, and (d) the
proposed contract. Borrowers shall use the applicable standard RFPs issued by the Bank with minimal
changes, as necessary to address project specific conditions. Borrowers shall list all the documents
included in the RFP. The Borrower may use an electronic system to distribute the RFP, provided that
the Bank is satisfied with the adequacy of such system. If the RFP is distributed electronically, the
electronic system shall be secure to avoid modifications to the RFP and shall not restrict the access of
short-listed consultants to the RFP.
(vii) Letter of Invitation (LOI):
The LOI shall state the intention of the Borrower to enter into a contract for the provision of
consulting services, the source of funds, the details of the client and the date, time, and address for
submission of proposals.
(viii) Instructions to Consultants (ITC):
The ITC shall contain all necessary information that would help consultants prepare responsive
proposals, and shall bring as much transparency as possible to the selection procedure by providing
information on the evaluation process and by indicating the evaluation criteria and factors and their
respective weights and the minimum passing quality score. The ITC shall indicate an estimate of the
level of key staff inputs (in staff time) required of the consultants or the total budget, but not both.
Consultants, however, shall be free to prepare their own estimates of staff time to carry out the
assignment and to offer the corresponding cost in their proposals. The ITC shall specify the proposal
validity period, which should be adequate for the evaluation of proposals, decision on award, Bank
review, and finalization of contract negotiations. A detailed list of the information that should be
included in the ITC is provided in the Bank Guidelines for Selection and Employment of Consultants.
(ix) Contract:
The Bank Guidelines describe the most common types of contracts. Borrowers shall use the
appropriate Standard Form of Contract issued by the Bank with minimum changes, acceptable to the
Bank, as necessary to address specific project issues. Any such changes shall be introduced only
through Contract Data sheets or through Special Conditions of Contract included in the Bank’s
Standard Form. These forms of contract cover the majority of consulting services. When these forms
are not appropriate (for example, for pre shipment inspection, procurement services, training of
students in universities, advertising activities in privatization, or twinning) Borrowers shall use other
contract forms acceptable to the Bank.
(x) Receipt of Proposals:
The Borrower shall allow enough time for the consultants to prepare their proposals. The time
allowed shall depend on the assignment, but normally shall not be less than four weeks or more than
three months (for example, for assignments requiring establishment of a sophisticated methodology,
preparation of a multidisciplinary master plan). During this interval, the firms may request
clarifications about the information provided in the RFP. The Borrower shall provide these
clarifications in writing and copy them to all firms on the short list (who intend to submit proposals).
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If necessary, the Borrower shall extend the deadline for submission of proposals. The technical and
financial proposals shall be submitted at the same time. No amendments to the technical or financial
proposal shall be accepted after the deadline. To safeguard the integrity of the process, the technical
and financial proposals shall be submitted in separate sealed envelopes. The technical envelopes
shall be opened immediately by a committee of officials drawn from the relevant departments
(technical, finance, legal, as appropriate), after the closing time for submission of proposals. The
financial proposals shall remain sealed and shall be deposited with a reputable public auditor or
independent authority until they are opened publicly. Any proposal received after the closing time
for submission of proposals shall be returned unopened.
Borrowers may use electronic systems permitting consultants to submit proposals by electronic
means, provided the GoAP and the World Bank are satisfied with the adequacy of the system,
including, inter alia, that the system is secure, maintains the confidentiality and authenticity of
proposals submitted, uses an electronic signature system or equivalent to keep consultants bound to
their proposals, and only allows proposals to be opened with due simultaneous electronic
authorization of the consultant and the Borrower. In this case, consultants shall continue to have the
option to submit their proposals in hard copy.
(xi) Evaluation of Proposals: Consideration of Quality and Cost:
The evaluation of the proposals shall be carried out in two stages: first the quality, and then the cost.
Evaluators of technical proposals shall not have access to the financial proposals until the technical
evaluation, is concluded. Financial proposals shall be opened only thereafter. The evaluation shall be
carried out in full conformity with the provisions of the RFP.
(xii) Evaluation of the Quality:
The Borrower shall evaluate each technical proposal (using an evaluation committee of three or
more specialists in the sector), taking into account several criteria: (a) the consultant’s relevant
experience for the assignment, (b) the quality of the methodology proposed, (c) the qualifications of
the key staff proposed, (d) transfer of knowledge, if required in the TOR, and (e) the extent of
participation by nationals among key staff in the performance of the assignment. Each criterion shall
be marked on a scale of 1 to 100. Then the marks shall be weighted to become scores. The following
weights are indicative. The actual percentage figures to be used shall fit the specific assignment and
shall be within the ranges indicated below, except with the approval of the Bank. The proposed
weights shall be disclosed in the RFP.
Consultant’s specific experience:
0 to 10 points
Methodology:
20 to 50 points
Key personnel:
30 to 60 points
Transfer of knowledge:
0 to 10 points
Participation by nationals:
0 to 10 points
Total:
100 points
The Borrower shall normally divide these criteria into sub-criteria. For example, sub-criteria under
methodology might be innovation and level of detail. However, the number of sub-criteria should be
kept to the essential. The Bank recommends against the use of exceedingly detailed lists of subcriteria that may render the evaluation a mechanical exercise more than a professional assessment
of the proposals. The weight given to experience can be relatively modest, since this criterion has
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already been taken into account when short-listing the consultant. More weight shall be given to the
methodology in the case of more complex assignments (for example, multidisciplinary feasibility or
management studies).
Evaluation of only the key personnel is recommended. Since key personnel ultimately determine the
quality of performance, more weight shall be assigned to this criterion if the proposed assignment is
complex. The Borrower shall review the qualifications and experience of proposed key personnel in
their curricula vitae, which must be accurate, complete, and signed by an authorized official of the
consulting firm and the individual proposed. The individuals shall be rated in the following three subcriteria, as relevant to the task:
(a) general qualifications: general education and training, length of experience, positions held, time
with the consulting firm as staff, experience in developing countries, and so forth;
(b) adequacy for the assignment: education, training, and experience in the specific sector, field,
subject, and so forth, relevant to the particular assignment; and
(c) experience in the region: knowledge of the local language, culture, administrative system,
government organization, and so forth.
Borrowers shall evaluate each proposal on the basis of its responsiveness to the TOR. A proposal
shall be considered unsuitable and shall be rejected at this stage if it does not respond to important
aspects of the TOR or it fails to achieve a minimum technical score specified in the RFP.
At the end of the process, the Borrower shall prepare a Technical Evaluation Report of the “quality”
of the proposals and in case of contracts subject to prior review, submit it to the Bank for its review
and no objection. The report shall substantiate the results of the evaluation and describe the relative
strengths and weaknesses of the proposals. All records relating to the evaluation, such as individual
mark sheets, shall be retained until completion of the project and its audit.
(xiii) Evaluation of Cost
After the evaluation of quality is completed and the Bank has issued its no objection, the Borrower
shall inform the consultants who have submitted proposals, the technical points assigned to each
consultant and shall notify those consultants whose proposals did not meet the minimum qualifying
mark or were considered non-responsive to the RFP and TOR that their financial proposals will be
returned unopened after the signature of the contract. The Borrower shall simultaneously notify the
consultants that have secured the minimum qualifying mark, the date, time, and place set for
opening the financial proposals. The opening date shall be defined allowing sufficient time for
consultants to make arrangements to attend the opening of the financial proposals. The financial
proposals shall be opened publicly in the presence of representatives of the consultants who choose
to attend (in person or online). The name of the consultant, the technical points, and the proposed
prices shall be read aloud (and posted online when electronic submission of proposals is used) and
recorded when the financial proposals are opened. The Borrower shall also prepare the minutes of
the public opening and a copy of this record shall be promptly sent to all consultants who submitted
proposals.
The Borrower shall then review the financial proposals. If there are any arithmetical errors, they shall
be corrected. For the purpose of comparing proposals, the costs shall be converted to a single
currency selected by the Borrower (local currency or fully convertible foreign currency) as stated in
the RFP. The Borrower shall make this conversion by using the selling (exchange) rates for those
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currencies quoted by an official source (such as the Central Bank) or by a commercial bank or by an
internationally circulated newspaper for similar transactions. The RFP shall specify the source of the
exchange rate to be used and the date of that exchange rate, provided that the date shall not be
earlier than four weeks prior to the deadline for submission of proposals, nor later than the original
date of expiration of the period of validity of the proposal.
For the purpose of evaluation, “cost” shall exclude local identifiable indirect taxes on the contract
and income tax payable to the country of the Borrower on the remuneration of services rendered in
the country of the Borrower by non-resident staff of the consultant. The cost shall include all
consultants’ remuneration and other expenses such as travel, translation, report printing, or
secretarial expenses. The proposal with the lowest cost may be given a financial score of 100 and
other proposals given financial scores that are inversely proportional to their prices. Alternatively, a
directly proportional or other methodology may be used in allocating the marks for the cost. The
methodology to be used shall be described in the RFP.
(xiv) Combined Quality and Cost Evaluation:
The total score shall be obtained by weighting the quality and cost scores and adding them. The
weight for the “cost” shall be chosen, taking into account the complexity of the assignment and the
relative importance of quality. Except for the type of services specified in paras 3.4.2 to 3.4.7, the
weight for cost shall normally be 20 points out of a total score of 100. The proposed weightings for
quality and cost shall be specified in the RFP. The firm obtaining the highest total score shall be
invited for negotiations.
(xv) Negotiations and Award of Contract:
Negotiations shall include discussions of the TOR, the methodology, staffing, Borrower’s inputs, and
special conditions of the contract. These discussions shall not substantially alter the original TOR or
the terms of the contract, lest the quality of the final product, its cost, and the relevance of the initial
evaluation be affected. Major reductions in work inputs should not be made solely to meet the
budget. The final TOR and the agreed methodology shall be incorporated in “Description of Services,”
which shall form part of the contract.
The selected firm should not be allowed to substitute key staff, unless both parties agree that undue
delay in the selection process makes such substitution unavoidable or that such changes are critical
to meet the objectives of the assignment. If this is not the case and if it is established that key staff
were included in the proposal without confirming their availability, the firm may be disqualified and
the process continued with the next ranked firm. The key staff proposed for substitution shall have
qualifications equal to or better than the key staff initially proposed.
Financial negotiations shall include clarification of the consultants’ tax liability in the
Borrower’s country (if any) and how this tax liability has been or would be reflected in the contract.
As Lump-Sum Contracts payments are based on delivery of outputs (or products), the offered price
shall include all costs (staff time, overhead, travel, hotel, etc.). Consequently, if the selection method
for a Lump-sum contract included price as a component, this price shall not be negotiated. In the
case of Time-based Contracts, payment is based on inputs (staff time and reimbursable) and the
offered price shall include staff rates and an estimation of the amount of reimbursable. When the
selection method includes price as a component, negotiations of staff rates should not take place,
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except in special circumstances, like for example, staff rates offered are much higher than typically
charged rates by consultants for similar contracts. Consequently, the prohibition of negotiation does
not preclude the right of the Borrower to ask for clarifications, and, if fee are very high, to ask for
change of fees. Reimbursable are to be paid on actual expenses incurred at cost upon presentation
of receipts and therefore are not subject to negotiations. However, if the Borrower wants to define
ceilings for unit prices of certain reimbursable (like travel or hotel rates), they should indicate the
maximum levels of those rates in the RFP or define a per diem in the RFP.
If the negotiations fail to result in an acceptable contract, the Borrower shall terminate the
negotiations and invite the next ranked firm for negotiations. The consultant shall be informed of the
reasons for termination of the negotiations. Once negotiations are commenced with the next ranked
firm, the Borrower shall not reopen the earlier negotiations. After negotiations are successfully
completed and the Bank has issued its no objection to the initialed negotiated contract, the Borrower
shall promptly notify other firms on the short list that they were unsuccessful.
(xvi) Publication of the Award of Contract:
After the award of contract, the Borrower shall publish in UNDB online and in dgMarket (a) the
names of all consultants who submitted proposals; (b) the technical points assigned to each
consultant; (c) the evaluated prices of each consultant; (d) the final point ranking of the consultants;
(e) the name of the winning consultant and the price, duration, and summary scope of the contract.
The same information shall be sent to all consultants who have submitted proposals.
(xvii) Debriefing:
In the publication of contract award referred to in above paragraph the Borrower shall specify that
any consultant who wishes to ascertain the grounds on which its proposal was not selected, should
request an explanation from the Borrower. The Borrower shall promptly provide the explanation as
to why such proposal was not selected, either in writing and/or in a debriefing meeting, at the option
of the consultant. The requesting consultant shall bear all the costs of attending such a debriefing.
(xviii) Rejection of All Proposals, and Reinvitation:
The Borrower will be justified in rejecting all proposals only if all proposals are non-responsive
because they present major deficiencies in complying with the TOR or if they involve costs
substantially higher than the original estimate. In the latter case, the feasibility of increasing the
budget, or scaling down the scope of services with the firm should be investigated in consultation
with the Bank. Before all the proposals are rejected and new proposals are invited, the Borrower
shall notify the Bank, indicating the reasons for rejection of all proposals, and shall obtain the Bank’s
no objection before proceeding with the rejection and the new process. The new process may
include revising the RFP (including the short list) and the budget. These revisions shall be agreed
upon with the Bank.
(xix) Confidentiality:
Information relating to evaluation of proposals and recommendations concerning awards shall not
be disclosed to the consultants who submitted the proposals or to other persons not officially
concerned with the process, until the award of contract.
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3.4.2 OTHER METHODS OF SELECTION
General:
This section describes the selection methods other than QCBS, and the circumstances under which
they are acceptable. All the relevant provisions of Section on (QCBS) shall apply whenever
competition is used.
3.4.3 Quality-Based Selection (QBS):
QBS is appropriate for the following types of assignments:
(a) complex or highly specialized assignments for which it is difficult to define precise TOR and the
required input from the consultants, and for which the Borrower expects the consultants to
demonstrate innovation in their proposals (for example, country economic or sector studies,
multisectoral feasibility studies, design of a hazardous waste remediation plant or of an urban master
plan, financial sector reforms);
(b) assignments that have a high downstream impact and in which the objective is to have the best
experts (for example, feasibility and structural engineering design of such major infrastructure as
large dams, policy studies of national significance, management studies of large government
agencies); and
(c) assignments that can be carried out in substantially different ways, such that proposals will not be
comparable (for example, management advice, and sector and policy studies in which the value of
the services depends on the quality of the analysis).
In QBS, the RFP may request submission of a technical proposal only (without the financial proposal),
or request submission of both technical and financial proposals at the same time, but in separate
envelopes (two-envelope system). The RFP shall provide either the estimated budget or the
estimated number of key staff time, specifying that this information is given as an indication only and
that consultants shall be free to propose their own estimates.
If technical proposals alone were invited, after evaluating the technical proposals using the same
methodology as in QCBS, the Borrower shall ask the consultant with the highest ranked technical
proposal to submit a detailed financial proposal. The Borrower and the consultant shall then
negotiate the financial proposal28 and the contract. All other aspects of the selection process shall
be identical to those of QCBS, including the publication of the Award of Contract as described in
above paragraphs except that only the price of the winning firm is published. If consultants were
requested to provide financial proposals initially together with the technical proposals, safeguards
shall be built in as in QCBS to ensure that the price proposal of only the selected firm is opened and
the rest returned unopened, after the negotiations are successfully concluded.
3.4.4 Selection under a Fixed Budget (FBS):
This method is appropriate only when the assignment is simple and can be precisely defined and
when the budget is fixed. The RFP shall indicate the available budget and request the consultants to
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provide their best technical and financial proposals in separate envelopes, within the budget. TOR
should be particularly well prepared to make sure that the budget is sufficient for the consultants to
perform the expected tasks. Evaluation of all technical proposals shall be carried out first as in the
QCBS method. Then the price proposals shall be opened in public and prices shall be read out aloud.
Proposals that exceed the indicated budget shall be rejected. The Consultant who has submitted the
highest ranked technical proposal among the rest shall be selected and invited to negotiate a
contract. The publication of the Award of Contract shall be as described in para 3.4.1(xvi).
3.4.5 Least-Cost Selection (LCS):
This method is only appropriate for selecting consultants for assignments of a standard or routine
nature (audits, engineering design of noncomplex works, and so forth) where well- established
practices and standards exist. Under this method, a “minimum” qualifying mark for the “quality” is
established. Proposals, to be submitted in two envelopes, are invited from a short list. Technical
proposals are opened first and evaluated. Those securing less than the minimum qualifying mark are
rejected, and the financial proposals of the rest are opened in public. The firm with the lowest price
shall then be selected.
Under this method, the minimum qualifying mark shall be established, understanding that all
proposals above the minimum compete only on “cost.” The minimum qualifying mark shall be stated
in the RFP.
3.4.6 Selection Based on the Consultants’ Qualifications (CQS):
This method may be used for small assignments for which the need for preparing and evaluating
competitive proposals is not justified. In such cases, the Borrower shall prepare the TOR, request
expressions of interest and information on the consultants’ experience and competence relevant to
the assignment, establish a short list, and select the firm with the most appropriate qualifications
and references. The selected firm shall be asked to submit a combined technical-financial proposal
and then be invited to negotiate the contract.
The Borrower shall publish in UNDB and in dgMarket the name of the consultant to which the
contract was awarded, and the price, duration and scope of the contract. This publication may be
done quarterly and in the format of a summarized table covering the previous period.
3.4.7 Single-Source Selection (SSS):
Single-source selection of consultants does not provide the benefits of competition in regard to
quality and cost, lacks transparency in selection, and could encourage unacceptable practices.
Therefore, single-source selection shall be used only in exceptional cases. The justification for singlesource selection shall be examined in the context of the overall
interests of the Borrower and the project, and the Bank’s responsibility to ensure economy and
efficiency and provide equal opportunity to all qualified consultants.
Single-source selection may be appropriate only if it presents a clear advantage over competition: (a)
for tasks that represent a natural continuation of previous work carried out by the firm (see next
paragraph), (b) in emergency cases, such as in response to disasters and for consulting services
required during the period of time immediately following the emergency, (c) for very small
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assignments (less than $ 500 equivalent or Rs. 25,000), or (d) when only one firm is qualified or has
experience of exceptional worth for the assignment.
When continuity for downstream work is essential, the initial RFP shall outline this prospect, and, if
practical, the factors used for the selection of the consultant shall take the likelihood of continuation
into account. Continuity in the technical approach, experience acquired, and continued professional
liability of the same consultant may make continuation with the initial consultant preferable to a new
competition subject to satisfactory performance in the initial assignment. For such downstream
assignments, the Borrower shall ask the initially selected consultant to prepare technical and
financial proposals on the basis of TOR furnished by the Borrower, which shall then be negotiated.
If the initial assignment was not awarded on a competitive basis or was awarded under tied financing
or if the downstream assignment is substantially larger in value, a competitive process shall normally
be followed in which the consultant carrying out the initial work is not excluded from consideration if
it expresses interest. The Bank will consider exceptions to this rule only under special circumstances
and only when a new competitive process is not practicable.
Various formats, steps and time taken for different method of procurement of consultancy services
are described in Appendix III.
3.5
PROCUREMENT OF SERVICES OF INDIVIDUAL CONSULTANT
Individual consultants are employed on assignments for which (a) teams of personnel are not
required, (b) no additional outside (home office) professional support is required, and (c) the
experience and qualifications of the individual are the paramount requirement. When coordination,
administration, or collective responsibility may become difficult because of the number of
individuals, it would be advisable to employ a firm.
Individual consultants are selected on the basis of their qualifications for the assignment. Consultants
shall be selected through comparison of qualifications of at least three candidates among those who
have expressed interest in the assignment or have been approached directly by the Borrower.
Individuals considered for comparison of qualifications shall meet the minimum relevant
qualifications and those selected to be employed by the Borrower shall be the best qualified and
shall be fully capable of carrying out the assignment. Capability is judged on the basis of academic
background, experience, and, as appropriate, knowledge of local conditions such as local language,
culture, administrative system and government organization.
From time to time, permanent staff or associates of a consulting firm may be available as individual
consultants. In such cases, the conflict of interest provisions described in the Bank’s guidelines shall
apply to the parent firm.
Individual consultants may be selected on a sole source basis with due justification in exceptional
cases such as: (a) tasks that are a continuation of previous work that the consultant has carried out
and for which the consultant was selected competitively; (b) assignments with total expected
duration of less than six months; (c) emergency situations resulting from natural disasters; and (d)
when the individual is the only consultant qualified for the assignment.
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For hiring of consultant job description, qualification and experience required and terms of
engagement should be finalized. The consultants for the assignment must be called through
advertisement in the newspaper. Individual should meet all relevant qualifications and should be
fully capable of carrying out the assignment. The qualified individuals will be called for
interview/discussions prior to offering the assignment. Based on the above a list of candidates shall
be prepared for each assignment separately and the top listed candidate shall be offered the job.
3.6
PROCUREMENT OF SERVICES OF NGO
SHORTLISTING OF NGOS:
Short listing of NGOs shall be based on the criteria given below:
Regulatory requirement:
 NGO should be validly registered under Societies Registration Act of the Government or have
other corporate status.
 NGO should be validly registered to work in the particular geographic locality
 NGO’s Article of Association or Bye laws permit, operation in the project sector
 NGO should be non political
 Should not have been blacklisted by the Central Social & Welfare Board (CSWB) or Council for
the Advancement of Peoples Action & Rural Technology (CAPART) or by Central or any State
Governments in India.
Human and physical measures:
 Committed leadership at the top supported by adequate service level leadership
 Existence of adequate skilled staff in relation to needs of the assignment
 NGO should have necessary physical resource base like accessible office space, vehicles, and
communication facilities and so on.
Financial Capacity:
 Should have required financial strength and stability
(Last three years turn over and audited balance sheet should be examined)
 Should have facilities to maintain separately, records and accounting of funds allocated for
the assignment.
Relevant Sectoral and operational experience:
 Should have prior experience in related sectors
 Should have adequate experience in Participatory Rural Appraisal
 Must have been functioning for at least three years in similar type of assignments.
RFP should be issued to short listed NGOs and their bids are obtained for the concerned services.
Technical and Financial Proposals are evaluated and contract agreement signed after following the
same procedure as for other consultants. Where large areas are involved for conducting IEC and
community mobilization the requirement of number of NGOs may fall short of their availability. In
such cases single source selection method may be used with prior approval of the Bank.
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CHAPTER-IV
PROCESS DESCRIPTION OF MODES OF PROCUREMENT
4.1
PROCUREMENT PLAN AND PROCEDURES
Before undertaking procurement, specific budget provision should be available for meeting the
expenditure in the financial year in which it is to be incurred.
A)
PROCUREMENT PLAN






B)
Preparation of a procurement plan is an essential requirement. Procurement plan covering
civil works, equipment, goods, consultancy services and resource support shall be prepared
on a firm basis for the first year of the program and on a tentative basis for the subsequent
years.
Procurement plan shall be prepared every year for proper monitoring and execution.
Procurement plan shall be prepared contract wise.
Method of purchase shall be based on the aggregate value of the package/lots, urgency of the
demand, type of goods/services and availability of different sources of supply etc.
Limit of aggregate value of package/lots applicable to the particular procurement procedure
shall be strictly adhered to.
It shall be ensured that the procurement is based strictly on actual need.
PROCUREMENT STEPS
The procurement procedure for procurement of goods and works broadly consists of the
following Steps:
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PROCUREMENT STEPS
Assessment of requirements
Deciding procurement strategy
Mode of procurement
Preparation of bidding documents
Advertising – Invitation For Bids
Issue/sale of bidding documents
Opening of bids
Evaluation of the bids
Award of contract and publication of Award
Inspection and testing
Notification of delivery
Receipt of consignment
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4.2
FORECASTING: ASSESSMENT OF THE REQUIREMENT
Bulk requirement of the stores for centralized procurement and the procurement at the level of ULBs
should be assessed prior to the beginning of the financial year. In order to obtain competitive prices,
procurement action should be initiated in accordance with the purchase procedures. While
forecasting the requirement, following factors should be considered:
 Average time period required in complete procurement cycle (4 months). Longer
procurement cycle in exceptional circumstances
 The trends in usage at the time of requirement.
 Current stock of the store, where the stock is located, when is the product due to reach the
expiry date and what is the projected time scale for distribution.
 Storage capacity for receiving the bulk consignment. In case the storage capacity is limited, it
would be necessary that the procurement/supply of commodities is phased over time rather
than being received as a single consignment.
 List of consignees and their storage capacity.
 The problems if any, encountered in the past.
Consolidating several procurement requirements can offer potential savings through price discounts
and reduces the purchaser's administrative cost associated with having to process multiple bids and
contracts.
4.3
PROCUREMENT STRATEGY
It is important to agree on the procurement strategy before initiating the procurement process. For
civil works, options like work contract on lump-sum basis or based on bill of quantities can be
explored. The procurement strategy should cover:





Key objectives of the procurement for the project;
Chosen procurement option;
Chosen procurement route (Open, Restricted, Single Source)
Key milestones (check that enough time is allowed)
Key documents e.g. requirement specifications.
Key factors influencing the procurement strategy relate to the degree of complexity, innovation and
uncertainty about the requirement, together with the time needed to achieve a successful outcome.
4.4
MODE OF PROCUREMENT
The methods of procurement normally followed are:i.
ii.
iii.
iv.
International Competitive Bidding (ICB)
National Competitive Bidding (NCB)
Shopping
Single tender/Direct Contracting
The EPC method of procurement aould also be added upon finalization of agreed bid document
between the bank and GoAP.
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Slicing/packaging/lots shall be appropriately reviewed to avoid fragmentation to the extent
practicable. Whenever bids are invited concurrently for several contracts in a package and cross
discounts are invited, the aggregate value of the total package will form the basis to determine
the procurement method as well as the review requirement.
4.4.1 INTERNATIONAL COMPETITIVE BIDDING (ICB)
This method is generally adopted where the supplies need import and foreign firms are expected to
participate irrespective of the value. In case of APURMS procurement this method is adopted where
the estimated value of procurement is more than US $ 500,000 equivalent per contract for goods and
US $ 5,000,000 equivalent per contract for works.
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REQUIREMENT:
 For projects that include ICB, the Borrower is required to prepare and submit to the Bank a
draft General Procurement Notice. The Bank will arrange for its publication in the UNDB
online and in the dgMarket.
 Apart from wide publicity nationally, invitation to bid shall also be published in UNDB online
and in dgMarket and shall be forwarded to Embassies and trade representatives of the
countries of likely suppliers/contractors of the goods and works and also to those who have
expressed interest in response to the general procurement notice
 Use of Standard Bidding Documents.
 Sale of bidding documents should start only after publication of invitation to bid
 Bidding period should be 45 to 90 days from the date of start of the sale of bidding document
Other procedure for ICB will broadly be as specified in the Standard Bidding Documents and
Procurement Guidelines of the Bank.
4.4.2 NATIONAL COMPETITIVE BIDDING (NCB)
i.
NCB is the competitive bidding procedure normally used for public procurement in the
country and may be the most efficient and economic way of procuring goods or works.
The procedures shall provide for adequate competition in order to ensure reasonable
prices. The method to be used in the evaluation of tenders and the award of contracts
shall be made known to all bidders and shall not be applied arbitrarily.
ii.
NCB is adopted normal1y where the contract value is between US $ 20,000 and US $
500,000 for goods and between US $ 20,000 and US $ 5,000,000 for works in case of
APURMS procurement.
iii.
Civil works, and also goods, could be procured under contracts awarded in accordance
with the procedures prescribed under NCB.
iv.
Various steps involved in procurement under NCB procedure have been enumerated in
para 4.1 (B).
v.
Notification/Advertising: Timely notification of bidding opportunities is essential in
competitive bidding:
(a)
(b)
Invitation to bid shall be published in at least one English newspaper with nation
wide circulation and one regional language daily. If the advertisement is for more
than one item, it should also be indicated whether the evaluation would be itemwise or as a package. The advertisement should also be placed on the website of
the department.
If it is a condition in the invitation for tender that Bid Security is to be submitted by
the supplier/ contractor, the bid of a supplier/ contractor not complying with this
requirement, shall be rejected. The acceptable forms of bid security will be
mentioned in the bidding document. The amount of bid security shall be decided,
taking into account all the items in a package. Once it is decided that the contract is
for a package, the bid security for that package is to be indicated and will not be
changed according to each item subsequently.
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(c)
(d)
(e)
vi.
The last date for receipt of bids shall be the day following the date for close of the
sale of tender documents.
Bidding period shall not be less than 30 days from the date of start of sale of tender
documents.
Bids can be sold from different places but shall be received at one place only. Bids
should normally be opened half an hour after the deadline for submission.
Bidding Documents: Sample bidding documents for different varieties of works, to be
used under the World Bank aided projects are available on the website of the World Bank.
These documents are complete in them and can be used after slight changes according to
the requirement of procuring units. Sale of bidding document should begin only after the
publication of Invitation For Bids in the newspapers. The bidding documents shall furnish
all information necessary for a prospective bidder to prepare its bid for the goods and
works to be provided. Bidding documents should be made available to all bidders
regardless of their registration status.
Clarity of Bidding Documents: Bidding documents shall clearly and precisely specify the work to
be carried out, location of the work, goods to be supplied, place of delivery or installation,
schedule for delivery or completion, technical specifications, minimum performance
requirement, warranty and maintenance requirements, and method of evaluation. The basis for
bid evaluation and selection of the lowest technically suitable and responsive bidder shall be
clearly outlined in the Instructions to Bidders. Bidding documents should state clearly whether
the bid prices will be fixed or price adjustments will be allowed to reflect any changes in major
cost components of the contract.
vii.
Standards and Technical Specifications: The implementing agency shall specify the
generally accepted standards of technical specifications. Unbiased technical specifications
shall be prepared with no mention of brand names and catalogue numbers. In case the
item to be procured is not covered under BIS and specifications are to be framed,
specifications may be prepared by a committee of experts associating the trade, if
required. The functional performance, design, quality, packaging and additional
requirements should be clearly spelt out in the specifications. The specifications should be
generic and should not appear to favour a particular brand or supplier. Technical
specifications, bill of quantities and civil drawings should be prepared before start of the
bidding process.. Specifications for the articles to be procured should be drawn up in
every case with clarity. No deviations from the specifications after opening of tender
should be allowed.
viii.
Validity of Tender: Bidders shall be required to submit bids valid for the period specified
in the bidding documents. Normally, the bid validity period shall not exceed 90 days.
Bid Security: Bid security of normally about 2% of the estimated cost of the item or works
shall be the appropriate amount, which should be indicated, as a specific amount. The bid
security shall be in the form of a demand draft/ banker's cheque/ bank guarantee from a
scheduled bank, which should be valid for 45 days beyond the validity period of the bid.
The bid security of unsuccessful bidders shall be refunded soon after the finalization of
bidding process. The bid security shall be forfeited in the event of withdrawal of the bid
within the original validity or if the successful bidder fails to execute necessary agreement
within the period specified.
ix.
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x.
xi.
xii.
xiii.
Pre-bid Conference: A pre-bid conference (date/ venue to be indicated in the bid
documents) may be arranged if required, wherein potential bidders may meet the
purchaser, copy of minutes of the pre-bid conference should also be supplied along with
the bid document sold to the parties purchasing the documents subsequent to the pre-bid
conference.
Terms and Methods of Payment: Payment terms shall be in accordance with the specific
goods and works. Tender documents should specify the payment method and terms
offered.
Conditions of Contract: The contract documents shall clearly define the scope of work to
be performed, the goods to be supplied, the rights and obligations of the implementing
agency and of the supplier or contractor and the functions and authority of the engineer,
architect or construction manager, (if one is employed by the implementation agency) in
the supervision and administration of the contract. Special conditions related to specific
items/ cases should be clearly included in the tender documents.
Performance Security:
a. Bidding document for works and goods shall require security in an amount sufficient
to protect the implementation agency in case of breach of contract by the contractor.
This shall be in the form of a bank guarantee or any other instrument specified in the
bidding document. The amount of performance guarantee shall normally be 5 % of
contract price valid upto 28 days after the date of expiry of defects liability period/
warranty period, as applicable.
b. The performance security deposit shall be refunded within one month of the
completion of supply of goods/works or expiry of guarantee/warranty/defect liability
period (as mentioned above).
c. The performance security deposit shall be forfeited in case any terms and conditions
of the contract are infringed or the bidder fails to make complete supply satisfactorily
or complete the work within the delivery/ completion period.
xiv.
Retention Money: In contracts for works, normally 5-10 % of contract price shall be
recovered as retention money. 50 % of such retention money shall be retained till
completion of the whole of the works and 50 % shall be retained till the end of defects
liability period.
xv.
Liquidated Damages: Provision for liquidated damages shall be included in the conditions
of contract to guard against delays in delivery of goods or completion of works.
xvi.
Bid Opening: The time for bid opening should not be more than half an hour after the
deadline for submission of bids
Bids shall be opened in public. The bidders or their representatives shall be allowed to be present at
the time of opening of bids. All bids received should be opened. No bid should be rejected at bid
opening time except for late bids. Late bids shall be returned to the bidders unopened. The name of
the bidder and total amount of each bid along with important conditions like excise duty, sales tax,
delivery terms, delivery period, special conditions, if any, shall be read out at the time of bid opening.
Spot comparative statement (minutes of bid opening) shall be prepared by the bid opening officials
and should be signed.
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xvii. Confidentiality: After the public opening of bids, information relating to the examination,
clarification, and evaluation of bids and recommendations concerning awards shall not be
disclosed to bidders or other persons not officially concerned with this process until the
successful bidder is notified of the award of the contract.
xviii. Examination of tenders:
a.
The implementing agency shall ascertain whether the bids
Meet the eligibility requirements specified;
Have been properly signed;
Are accompanied by the required earnest money valid for the period specified in the tender
documents;
Are substantially responsive to the bidding documents; and
Have the technical and financial capability to successfully execute the contract. For ensuring
technical and financial capacity, a minimum turnover requirement and specific experience
requirement should be prescribed in bidding documents.
Are otherwise generally in order.
b.
If a bid is not substantially responsive, that is, it contains material deviations from or
reservations to the terms, conditions and specifications in the tender documents, it
shall not be considered further. The bidder shall not be permitted to correct or
withdraw material deviations or reservations once bids have been opened.
xix.
Extension of validity of bids: As far as possible contract should be finalized within the
original validity of the bids. An extension of bid validity, if justified by exceptional
circumstances with the approval of next higher authority and after obtaining World Bank’s
no objection where required, shall be requested in writing from all the bidders (of valid
bids only) before the expiry date. Bidders shall have the right to refuse to grant such an
extension without forfeiting their bid security, but those who are willing to extend the
validity of their bid shall also be required to provide a suitable extension of bid security.
xx.
Bid evaluation and Comparison:
The purpose of bid evaluation is to determine the cost to the implementing agency of each bid in a
manner that permits a comparison based on evaluated cost. The bid with the lowest evaluated cost
and substantially responsive, but not necessarily with the lowest submitted price, should be selected
for award. The bid price read out at the bid opening shall be adjusted to correct any arithmetical
errors for the purpose of evaluation. Evaluation of bids should be made strictly in terms of the
provisions in the bidding documents to ensure compliance with the commercial and technical
aspects. Conditional discounts offered by the bidders shall not be taken into account for evaluation.
Cross discounts shall be taken into account to determine the lowest cost combination of the
contracts.
The past performance of the suppliers/ contractors should also be taken into account while
evaluating the bids. (The method of taking the past performance into account should be indicated in
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bidding documents). The implementing agency shall prepare a detailed report on the evaluation and
recommendations for the award of the contract.
xxi.
Post-qualification of Bidders: If bidders have not been pre-qualified, the implementing
agency shall determine whether the bidder whose bid has been determined to be the
lowest evaluated bid, has the capability and resources to effectively carry out the
contract, and if the bidder does not meet the specified criteria, the bid shall be rejected.
In such an event, the implementing agency shall make a similar determination for the
next-lowest evaluated bidder and so on.
xxii. Rejection of All Tenders: Bidding documents usually provide that implementing agency
may reject all bids. Rejection of all bids is justified when none of the bids are substantially
responsive. However, lack of competition shall not be determined solely on the basis of
the number of bidders. If all bids are rejected, the implementing agency shall review the
causes, justifying the rejection and consider making revisions to the conditions of
contract, design and specifications, scope of the contract, or a combination of these,
before inviting fresh tenders.
If the rejection of all bids is due to lack of competition, wider advertising shall be considered. If
the rejection is due to most or all of the bids being non-responsive, fresh bids may be invited.
Rejection of all bids and re-inviting new bids, irrespective of value shall always be after approval
of the competent authority as per delegation of authority attached and with the approval of the
World Bank.
4.4.3 SHOPPING
Shopping is a procurement method based on comparing price quotations obtained from several
suppliers, usually at least three to ensure competitive prices. Under International Shopping
quotations should be solicited from at least three suppliers in two different countries. Format as per
Appendix I may be used to invite quotations.
Goods estimated to cost below the financial ceiling mentioned in the table titled “Threshold Values”
in Chapter VI per contract may be procured under the Shopping.
It is an appropriate method for procuring readily available off-the-shelf goods or standard
specification commodities that are small in value and are ordinarily available from more than one
source.
Approval of competent authority may be obtained for items to be purchased along with
specifications, estimated costs and agencies from whom quotations should be invited.
The requests for quotations shall be made indicating the description, specifications, quantity time
and place of delivery.
If the quotations are called for more than one item, it should also be indicated whether the
evaluation would be item-wise or as a package.
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4.4.4 SINGLE BID / DIRECT CONTRACTING
The Single Bid System may be adopted in case of articles which are specifically certified as of
proprietary nature or in case of extreme emergency. The single bid system without competition shall
be an appropriate method under the following circumstances:
extension of an existing contract for goods or works awarded in accordance with the prescribed
procedure for additional goods or works;
Standardization of equipment or spare parts to be compatible with existing equipment may justify
additional purchases from the original supplier;
The required item is proprietary and obtainable only from one source;
Need for early delivery to avoid costly delays;
In exceptional cases, such as in response to natural disasters; and
The estimated cost of procurement lies within the threshold value for Direct Contracting.
4.5
AWARD OF CONTRACT
Implementing agency shall award the contract, within the original period of the validity of bids, to
the bidder who meets the bidding conditions in all aspects, has the necessary technical capability and
financial resources and whose bid is substantially responsive to the bidding documents and has the
lowest evaluated cost. The purchaser can, if it so desires, satisfy itself that the manufacturer to
whom the contract is proposed to be awarded, has the capability to produce the required quantity
and also of required standards. Single bid should also be considered for award, if it is determined
that publicity was adequate, bid specification/ conditions were not restrictive or unclear, and bid
price is considered reasonable.
4.6
RESOLUTION OF DISPUTES
The dispute resolution methodology should be very clearly indicated in the contract document. As far
as possible, disputes may be resolved with mutual agreement between purchaser and buyer through
alternate dispute resolution methods to avoid going through arbitration and litigation stage. There
are a number of possible causes of disputes during the execution of contract. These may involve:






4.7
Interpretation of the terms and conditions of the contract
Delay in delivery/ completion of the works
Delay in release of payment
Condition of the items on arrival at consignee end and after delivery
Rate of the items, variation in quantity in civil works contracts etc.
Design/ specification issues.
LAWS GOVERNING THE CONTRACT


The contract shall be governed by the laws of India in force
The court of the place from where the acceptance of bid has been issued shall alone have
jurisdiction to decide any dispute arising out of or in respect of the contract.
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
4.8
Irrespective of the place of delivery, the place of performance or place of payment under the
contract or the place of issue of advance intimation of acceptance of tender, the contract
shall be deemed to have been made at the place from where the acceptance of the tender
has been issued.
ARBITRATION
(TO BE REVIEWED AND MODIFIED TO INCLUDE UNICTRAL FOR FOREIGN BIDDERS)
In the event of any question, dispute or difference arising under the contract conditions or
any special conditions of contract or in connection with the contract (except as to any
matters the decision of which is specially provided for by these or the special conditions),
the same shall be referred to the sole arbitration of an officer, from the department other
than the department who has decided the contract. The arbitrator should be having
sufficient knowledge of law and shall be appointed as per the laid down procedure. The
award of the arbitrator shall be final and binding on the parties to this contract.
ii.
In the event of the arbitrator dying, neglecting or refusing to act or resigning or being
unable to act for any reason, or his award being set aside by the court for any reason, it
shall be lawful for the purchaser to appoint another arbitrator in place of the outgoing
arbitrator in the manner aforesaid.
iii. It is further a term of the contract that no person other than the person appointed by the
purchaser as aforesaid should act as arbitrator and that, if for any reason that is not
possible, the matter shall be referred to President, Institution of Engineers, India, for
nominating an arbitrator.
iv. The arbitrator may from time, with the consent of all parties to the contract, enlarge the
time for making the award.
v.
Upon every and any such reference, the assessment of the costs incidental to the reference
and award respectively shall be at the discretion of the arbitrator
vi. Subject to as aforesaid, The Arbitration and Conciliation Act, amended up to date and the
rules there under and any statutory modifications thereof for the time being in force, shall
be deemed to apply to the Arbitration proceedings under this clause.
vii. If the value of the claim in a reference exceeds Rs. 1 lakh the arbitrator shall give a
reasoned award
viii. The venue of arbitration shall be the place from which formal acceptance of tender is
issued or such other place as the purchaser at his discretion may determine.
ix. Suitable clause may be incorporated in the tender enquiry to obtain the consent of the
bidder to accept the arbitration clause.
i.
4.9
EXTENSION OF CONTRACT
Normally contract once awarded should not be extended. Under exceptional circumstances,
extension of existing contracts up to 25% of the original contract value may be considered, if it is
justifiable on economic grounds, subject to approval of the competent Authority as per the Schedule
of Delegation of Powers and with the prior approval of the Bank wherever required.
4.10
COMPLAINT REDRESSAL MECHANISM (ALSO APPLICABLE TO PROCUREMENT OF SERVICES)
In order to deal with the complaints received from the contractors/ suppliers effectively, a complaint
handling mechanism should be available at the MSU level as well as at ULB level, and immediate
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action should be initiated on receipt of complaints to redress the grievances. All complaints should
be handled at a level higher than that of the level at which the procurement process is being
undertaken and the allegations made in the complaints should be thoroughly enquired into, and if
found correct, appropriate remedial measure should be taken by the appropriate authorities. In case
any individual staff is found responsible, suitable disciplinary proceedings should be initiated against
such staff under the applicable government conduct rules. The existing provisions under the Indian
law including the instructions of central vigilance commission should be followed in this regard.
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CHAPTER- V
PROCUREMENT OF WORKS, GOODS AND SERVICES (OTHER THAN CONSULTANCY SERVICES) AT
MSU& ULB LEVEL
6.1
GENERAL
PROCUREMENT CELL
The procurement at MSU, ULB levels needs to be closely supervised and monitored at each stage of
procurement. In order to ensure transparency, effective control for timely supply of goods and
services and delivery of the Project within the stipulated period, a Procurement Cell has been
established at MSU. One of the PHED superintending engineers deputed to MSU has been
designated as Procurement Specialist (Goods and Works) since most procurement is that of works
under infrastructure sub-projects. The second Superintending Engineer will be responsible for hiring
of consultants, and monitoring the progress of the contract implementation, including the collection
of monthly progress reports from the ULBs based on which funds will be released to the ULBs. S/he
will also be responsible for establishing a complaint monitoring system which will capture all
complaints received either by the PMU or by the ULBs. The complaint redressal will be done in
coordination with the Procurement Specialist or ULB commissioner as the case may be. This system
will be monitored by the Project Director once every month. Groups will be formed under the
Procurement Specialist, to manage procurement for approximately 20 ULBs each. Each group will
consist of three people of the rank of one executive engineer and two deputy executive engineers.
The procurement cell will guide and monitor the process of procurement of all goods, works and
services required under the Project. It will be responsible for dissemination of information and the
trainings required for procurement.
The procurement cell shall ensure the following:
(i)
(ii)
(iii)
(iv)
(v)
The specification of the type, quality and quantity of goods to be procured, keeping in
view the specific needs of the consumer. The specifications so worked out should meet
the basic needs without including superfluous and non-essential features, which may
result in unwarranted expenditure. Care should also be taken to avoid purchasing
quantities in excess of the requirement to avoid carrying costs and wastages.
Bids should be invited following a fair, transparent and reasonable procedure.
The procuring authority should be satisfied that the bid of the selected bidder is
responsive both technically and commercially and adequately meets the requirement in
all respects.
The procuring authority should be satisfied that the price of the selected bid is reasonable
and consistent with the quality required.
At each stage of procurement the concerned procuring authority must place on record, in
precise terms, the considerations, which weighed with it while taking the particular
procurement decision.
Specific areas for dissemination of information by procurement cell are:
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(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Compilation of list of items to be procured with full nomenclature, specifications and
brand names only if unavoidable and in such cases bids should be invited to ‘brand names
or equivalents’.
Compilation of list of manufactures and their authorized dealers in the State.
Circulation of rates at which non-local items are being purchased by various ULBs.
Circulation of established rates of non-local items.
Circulation of cases of poor performance of suppliers/contractors
Suspension of business dealings or black listing [see note below] of suppliers/ contractors
in appropriate cases, such as fraud, corruption, non performance, misrepresentation,
collusive bidding, etc.
Circulation of cases of supply of sub-standard quality of material/works and rejections.
Note: NCB - The World Bank, may accept the debarment of a domestic firm from bidding on a Bank
financed NCB tender on the basis of a previous debarment by the national authorities provided that
(i) the debarment was enacted at least as part of the agreed NCB provisions, and (ii) the Bank has
satisfied itself that the procedure followed to debar the firm afforded the firm reasonable due process
and the grounds thereof.
ICB – The World Bank does not generally accept national debarment for debarring under ICB.
However, in exceptional circumstances decided on case-by-case basis, the Bank may rely on the
borrower’s representation to agree to exclude a nationally debarred firm from participation in a Bank
financed ICB tender on the basis of the firm’s lack of qualifications.
Training Activities:
(i)
(ii)
Train Project Managers, Accounts Managers and other staff involved in procurement
functions.
Train ULB staff and officers in the procurement procedures.
The trainings shall be carried out by the Capacity Enhancement Cell as per the proposal of the
Procurement Cell.
Support to ULBs
During the first two years the responsibility of the procurement manager and his team will be to:
(i) Prepare and maintain the procurement plan.
(ii) Manage the design of the procurement packages for the approved DPRs in consultation with
the DPR design consultants and ULB (Municipal Engineer).
(iii) Initiate the procurement for various packages as per the agreed procurement procedures
(preparation of tender notice and advertisement, bidding documents, receiving bids, bid
evaluation and recommendation for award)
(iv) Lead the bid evaluation committees which will include appropriate ULB representatives. The
evaluation committee will make its recommendation for award to the tender committee, which
will comprise ULB chairperson or commissioner, Project Director, Chief Engineer and
Superintending Engineer.
Since the objective of the project is to build ULB capacities, extensive procurement capacity building
program will be implemented by the MSU to bring ULBs’ capacity to conduct its own procurement.
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This program will first target ULBs with subprojects to be implemented immediately after the project
start, and other ULBs will be added subsequently. MSU will hire a consulting firm who will design
and deliver the program. The consultant will design the training modules to cater to ULB managers
(Commissioners) focused on monitoring and coordination, ULB Engineers (focused on execution) and
ULB Accountants. A plan for training these in all ULBs with initial subprojects will be implemented in
the first two years of implementation. The consultant will report to the Project Director who will
measure the effectiveness of the training, identify gaps and help prepare gap closure plans. Under
the PCBP, workshops will be organized periodically for sharing best practices. After the first two
years, the consultant’s training contract may be extended or the MSU core procurement team may
take over the large part of the training.
After the initial two year period, or sooner if it is judged that sufficient capacity for procurement has
been developed, the leading role will be turned over to the ULBs and the MSU procurement team
will turn to a supporting role in the above steps. From the beginning, ULBs will exercise its legal
authority as the owner of the subprojects. ULB chairperson or commissioner will issue the letter of
acceptance (LOA) after the contract award recommendation is approved by the tender committee,
sign the contract, and issue the work order for commencement of the works. The procurement
manager will monitor and ensure that the LOA and that the contract is signed within specified time
limits, and the contract implementation is supervised and managed properly.
A key challenge during implementation will be balancing the accountability and risks in ULB
procurement. The issue is likely to diminish over time, but to remain at least for some (smaller) ULBs
even in advanced stages of implementation. In the steady state, MSU will be responsible for
managerial oversight and review, and drive reforms at the ULB level. In the initial 24 months, as ULB
capacity needs to be built, MSU will play a leading role with active involvement of the ULB at each
stage of procurement. While MSU will retain the right for final clearance throughout the project, the
roles and responsibilities of the ULBs will increase once they are trained in Bank procurement
procedures and once their capacities have been assessed.
6.2
PROCUREMENT PLAN
The procurement plan will indicate contract wise procurement of goods, works and services for
the year keeping in view the availability of funds in accordance with budget provision for the year
and also for the subsequent year consistent with future requirement. The plan shall be scheduled
according to priority as fixed by the committee. The prioritized procurement schedule shall be
estimated item-wise, value of each contract displayed in the prescribed format as below:
Organisation
Sl.
No.
Package No.
For goods & works:Description
of
Works/Goods
1
2
3
4
Estimate
Estimate Methods of Design/Invest
Review Expected
Prepared &
d Cost Procurement
igation
by Bank
Bid
Sanctioned
(Rs. In ICB/NCB/Othe Completed
(Prior/P Opening
(Date and
Lakhs)
rs
(Date)
ost)
Date
Value)
5
6
7
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8
9
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Organisation
Sl.
No.
Package No.
For Consultancy Services:Description
of Services
1
2
3
4
Estimated
Advertisement
Review by
Cost
Methods of
for Short
Expected Proposal
Bank
(Rs. In
Selection
listing (EOI)
Submission Date
(Prior/Post)
Lakhs)
(Date)
5
6
7
8
9
No procurement will be undertaken unless it is a part of the procurement plan. The initial
procurement plan dt. ________________ has been approved by the World Bank. Any subsequent
changes will need to be agreed with the Bank during supervision missions.
6.3
POWERS OF APPROVAL FOR AWARD OF CONTRACTS
Lowest evaluated responsive bids valued upto Rs. 10 lakhs (USD 20,000 equivalent limit for
shopping/DGS&D) shall be approved by Procurement Committee at MSU level subject to the
recommended prices being within 10% above the estimated value of the goods, works and
services subject to prior review of the World Bank, wherever required. Above this limit, the
tenders shall be submitted to Steering Committee for approval. The Procurement Committee at
MSU shall prepare the comparative statement and submit it along with the tender documents
price bids etc. to the Steering Committee with its recommendations for approval. The Steering
Committee shall have full powers for approval of rates for procurement of goods, works and
services. Rates of works, goods and services administratively approved shall be the guideline for
approval of rates received against tenders. After the rates are approved, Director MSU shall
promptly execute the contract Agreement with the successful bidder as per terms and conditions
of Contract in the standard format of the Bank. Bid documents shall form part of such Contracts.
Chapter III & IV may be referred to, for procedures for notice inviting tender, preparation of bid
documents, opening of tenders, evaluation, and tender award and signing of contract etc.
6.3.1 RATE CONTRACT
Rate Contracts of DGS&D may be operated for speedy procurement of goods as per procedure
outlined below;
A.
For procurement of goods valued upto the threshold for shopping shown in para 6.6.
Rate Contracts of DGS&D shall be acceptable as an alternative to Shopping procedure.
B. For procurement of goods valued upto the threshold for Direct Contracting shown in para 6.6.
Rate Contracts of DGS&D may be used for procurement of such items also.
6.3.2 PRINTING /PUBLISHING/MISCELLANEOUS WORKS
Printers have devised their units of printing charges for text, figures, drawings, photographs etc.
Shopping procedures shall be adopted for such procurement if value of each contract is expected
to be within the shopping threshold limit for good. The MSU shall give their requirements of
printing matter including figures, writings, photographs etc. design of brochures, cover design of
books / reports etc. to obtain sealed quotations from the printers. Procedures and guidelines
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given in Chapter IV shall be followed for Shopping for the printing, publishing and other such
miscellaneous procurements for the services, technical assistance, project management and
capacity enhancement components.
6.3.3 HIRING OF VEHICLES:
Vehicles shall be hired on daily/ monthly/ yearly basis as per requirement. Quotations shall be
called from at least three travel agencies under shopping procedures provided the estimated
value is below the Shopping threshold.
6.3.4 Other procurements
Procurement of Consultants
Procurement of NGOs
Procurement of goods for office use
Procurement of individual Consultant
-
As given in Chapter III
As given in Chapter III
As given in Chapter IV
As given in Chapter III
6.4
POWERS FOR PROCUREMENT OF GOODS, WORKS AND SERVICES
Under the services components of the project the HR Policy alongwith the limits and powers of
sanction of remunerations and allowances are mentioned in Annexure 19. With regard to works
and goods the procurements for all works at ULBs would be done by ULBs with the inspection of
MSU and all other procurement of works and funds would be by MSU of APUIF as per Table 2 on
Chapter 1 of this manual, irrespecitive of financial limit and as per the World Bank procuremet
procedure only.
6.5
POWER OF APPROVAL FOR AWARD OF CONTRACT
Powers for award of contracts shall rest with Director MSU/CDMA. MSU shall process the tender
documents and send the comparative statement along with all the papers and their
recommendation to CDMA/Director MSU/PMU for approval of award of contract as per the limit
mentioned in table 2.5. After approval by the CDMA/Director, PMU, designated officer at
PMU/MSU under the orders of CDMA shall properly enter into agreement with the successful
bidder. The process of tendering shall be followed as per procedure outlined in Chapters III & IV
of the Manual.
6.6
THRESHOLD VALUES
(a) Threshold values for works and goods under different methods of procurement are given
below:
 ICB, contracts above US $ 5 million equivalent per contract for works and US $
500,000 equivalent per contract for goods in each case.
 NCB, contracts up to US $ 5 million equivalent per contract for works and up to US $
500,000 equivalent per contract for goods in each case.
 Direct Contracting, proprietary items, such as spare parts, software, books,
periodicals etc. up to US $ 500 equivalent per contract meeting requirements stated
in the Procurement manual and petty items costing up to US $ 500 equivalent per
contract may be procured through Direct Contracting up to a cumulative value of US
$ 5,000
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Note: Slicing/Packaging/Lots shall be appropriately reviewed to avoid fragmentation to the extent
practicable. Whenever bids are invited concurrently for several contracts in a package and cross
discounts are invited, the aggregate value of the total package will form the basis to determine the
procurement method as well as the review requirement,
(b)
Threshold values for consultancy:
As per the procurement plan agreed with the Bank.
(c)
Review Requirements:
Prior Review:
Goods and Works: All ICB contracts for goods estimated to cost above $ 300,000 per contract and
above $ 5 million for works shall be subject to prior review.
Consultancy Services: All contracts valued over US$ 500,000 equivalent for firms including NGO
services and above US$ 200,000 equivalent for individuals.
Post Review:
All contracts not covered under prior review will be subject to post award review. The Terms of
Reference for the auditors, to be engaged by the GoAP, would also include procurement review of
selected contracts. The Bank on its part will review the reports of the Auditors in addition to
conducting its own post review on sample basis.
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ANNEXURE 2:
SUB-PROJECT CYCLE
APMDP Operations Manual
ANNEXURE 2: Sub-project Cycle Cycle
Issue of Work Order upon
Audit
Update
Agreement by APUIF with ULBs Work Procurements by ULB
(with assistance from ULBs)
Empowered Committee
Approval by Steering Committee
APUIF – Financial appraisal
Technical Sanction by PHED
Finalizing DPRs & Bid
• Line Dept.clearance
• Council Resolution
• Other necessary clearances
TA-Technical,Social, Environmental
and OM Appraisal
Initial Screening Report
PAC / Steering
Committee
Approval
MSU - CDMA
Initial Project proposals by ULBs
TA process- Preparation of detailed design & estimates, Social /
Environmental / Financial / Economical Analysis/
Project formulation and consultation at ULB level
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ANNEXURE 3:
FUNCTIONS OF WORKING GROUPS AT THE ULB LEVEL
APMDP Operations Manual
Annexure 3: Composition and Functions of MDC and Working Groups at the ULB Level
1.1. Municipal Development Committee
The Municipal Development Committee (MDC) shall comprise of a maximum of 22 members. The
recommended composition of the Committee is as follows:a. Mayor / Municipal Chairperson (Chairperson)
b. Local MPs
c. Local MLAs
d. Vice-Chairperson of Urban Development Authority, where existing
e. Deputy Mayor / Vice-Chairperson
f. Standing Committee Chairperson (in case of Municipal Corporations)
g. All leaders of the major opposition parties in the Council
h. Three councilors in proportion to their party strength
i. Two to five representatives of TLF/SLF.
j. Commissioner (Member – Convener)
1.2.
Functions
a. The MDC shall provide the strategic guidance and support required to the MTF and
Working Groups to carry out their tasks for preparation and implementation of the
project. It’s most important function is to articulate methods to mainstream and sustain
the initiatives of APURMSP. The MDC should ensure that the principles of the project
listed below are not compromised at any stage. In particular functions of MDC include:
a. Participatory and consultative approach to planning and implementation
b. Focus on bridging the deficiencies in urban services and environmental infrastructure
development.
c. Reforms to support and sustain performance improvement and poverty reduction
d. Convergence of programmes and resources available for social development
1.3 Working Group 1 (WG 1) :WG 1 shall comprise of a maximum of 25 members. The recommended composition of the group is
as follows:
a.
b.
c.
d.
e.
f.
g.
h.
Mayor / Chairperson – Chairperson
Five or six councilors (in proportion to party strength)
Two women Councillors nominated by all the women Councillors.
Two representatives of local higher educational institutions
Three representatives of TLF/SLF.
Two representatives of colony welfare associations
Two professionals like Advocates, Doctors, Charted Accountants, Bankers, etc.
Commissioner
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i. Municipal Engineer and one other officer to be nominated by the Commissioner
j. Town project officer / poverty resource person
k. Municipal Commissioner or an officer nominated by the Commissioner – Member –
Convener.
1.4 Functions :The WG 1 is basically responsible for reforms and municipal performance improvement. In particular
functions of WG 1 include:
a. Review over all municipal performance and progress of self-funded, State or Central
Government funded and reforms; review the reform action plans that may have been
prepared earlier;
b. Articulate short term and long term priority reform areas
c. Preparation of Capacity Enhancement Plan
d. Determine mechanisms and resources for the project proposals
e. Associate and support appraisal process.
f. Provide guidance and support for programme implementation
g. Review and suggest methods to strengthen participatory process
h. Monitor implementation of reform proposals.
i. Review poverty reduction programmers implemented by the project town
j. Ensure convergence in implementation of poverty reduction programmers
k. 1.5 Working Group 2 (WG 2):WG 2 comprises of a maximum of 25 members. The recommended composition of the Committee is
as follows:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Mayor / Chairperson – Chairman
Commissioner – Co-Chairman
Six Councillors ( in proportion to party strength)
Two to four representatives of TLF/SLF
SE (PHED) or representative of PHED
Town Project Officer / Community Organizer nominated by the Commissioner
Town Planning Officer
Two expert engineers (not employees of municipality)
Special invitees – not more than 5
Municipal Engineer – Member – Convener.
1.6 Functions :The WG 2 is responsible for aspects relating to the infrastructure provision and its operation and
maintenance. In particular its functions include:
a. Review of municipal infrastructure data base for planning and appraisal
b. Review of progress of infrastructure provision in project town as a whole
c. Review environmental statement and impacts
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d.
e.
f.
g.
h.
Review and plan Town-wide infrastructure projects
Oversee preparation of O & M plan along with budget
Associate with project appraisal process
Monitor implementation of infrastructure projects and O & M activities
Ensure convergence in planning and implementation of infrastructure project with other
components
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Annexure – 3(A)
Process for preparation of Initial Project Proposal:20.
The initial project proposal comprises of preparation of three separate plans as shown
hereunder:a. Municipal Reforms Action Plan (MRAP)
b. Municipal Capacity Enhancement Action Plan (MCEAP)
c. Municipal Infrastructure Improvement Plan (MIIP)
Municipal Reforms Action Plan (MRAP):21.
The reform proposals already initiated are in different stages of implementation. The
municipality shall prepare the MRAP, consisting of the following reform agenda
i. Adoption of accrual based double entry system of Accounting in ULBs.
ii. Reforms in taxes and non-taxes to improve coverage and collection of taxes and
non-taxes and improvement of finances.
iii. Levy of reasonable user charges.
iv. Implementation of Citizen Charter and establishment of Call Center
v. Empowerment of urban poor.
The Reform Action plan shall be prepared in check list of reforms as indicated in annexure 3(B) by the
working group 1.
Municipal Capacity Enhancement Action Plan (MCEAP)
22.
It is considered necessary that the infrastructure created under the project shall be
maintained efficiently and sustainably so that the service improvements do happen within the
Municipalities and the citizens do benefit in the long run. To achieve this objective ULBs have to
improve their institutional capacity and finances for O&M and service improvement of the proposed
infrastructure services.
23.
ULBs have to prepare capacity enhancement action plan covering the following items:i.
ii.
iii.
iv.
Institutional option for maintenance of the infrastructure
Capacity building measures for this option
Institutional strengthening measures for O&M
Revenue mobilization plan
24.
Working group 1 shall prepare Municipal Capacity Enhancement Action Plan (MCEAP) as
indicated in Annexure 3(c ). Working group 1 shall meet four to five times for preparation of MRAP,
MCEAP.
Municipal Infrastructure Improvement Plan (MIIP):25.
Improvement of Town-wide Urban Infrastructure is one of the objectives of APMDP.
Environmental infrastructure improvement includes provision of roads, drains, water supply, solid
waste management, sanitation, street lighting and community centers. The prioritization will be
based on the criteria prescribed. The infrastructure improvements shall be prioritized on the
following parameters:-
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a.
b.
c.
d.
e.
f.
High priority sectoral deficiencies.
Approved by Government or has high political support.
Maximizes beneficiaries to costs
Can be implemented quickly
Complements other ongoing or proposed projects.
Rehabilitates infrastructure
In drought prone and water scarcity towns, the priority shall be given for water supply.
Proposals:26.
The WG 2 shall meet at least five times and review the needs of infrastructure provision in
the town
Town wide critical Infrastructure :27.
The WG 2 shall discuss in detail the town wide needs of infrastructure and assess the
indicative requirement of investments. The funds from various sources like Central and State
Governments, municipality and public contributions including loans from various institutions shall
also be considered and based on this exercise proposals shall be made under APMDP. The process of
identifying the improvements to infrastructure is given below:Data collection:28.
Collection of data on existing infrastructure and service provision is first requirement in
preparing improvements to infrastructure. This is needed to access deficiencies and prioritize
infrastructure requirements. The underlying causes of service deficiencies shall be analyzed. The
service deficiencies can be caused by various factors like lack of investment in capital works, poor
operation and maintenance etc.
29.
Soon after orientation of the officials, the ULB shall collect data in basic sheets as indicated in
Annexure 3(D). The data required for preparation of infrastructure improvement include:a. General information about the town
b. Information on plans and maps of the town, and
c. Infrastructure details.
Infrastructure Requirement:30.
The requirement of infrastructure and projects shall be identified based on the following
aspects:a. Existing infrastructure deficiencies in the town, and
b. Future needs based on projected population
Data required for preparation of town –wide infrastructure proposals is indicated in Annexure – 3(E).
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31.
The projects proposed may, however, address existing infrastructure deficiencies as well as
meet the future needs. For example, construction of a new elevated service reservoir may alleviate
existing deficiencies and serve new areas. Table 4 of Annexure 3(E) contains pro-forma tables to
assist in analyzing the main deficiencies in the town. These tables shall be completed and used during
discussions with working group. The same shall be included in the initial project proposal as well as
indicated in Annexure 3(E).
Assessment of Deficiencies:32.
The identification of service and infrastructure deficiencies is critical to prepare infrastructure
improvements. This shall be done by carrying out an infrastructure audit by analyzing the data
compiled. Existing coverage and levels of service are the main outputs. The data shall be analyzed to
determine where services are below standard or do not exist. For example, this shall help in
identification of those parts of the town, which do not have piped water supply, or where the per
capita water supply is very low.
33.
The causes for the poor service shall be determined through a participatory process involving
various stakeholders. Immediate and underlying causes for poor services shall be assessed. The
municipal engineer shall facilitate the process. The main problem of the service sectors in the town
shall be listed. The next step shall be to identify the causes of the problems. The various causes,
which shall be looked into include:
a. Beyond designed project life i.e. too old
b. Overuse i.e. too inadequate for current needs
c. Inadequate design
d. Inappropriate construction
e. Improper operation and maintenance
f. Resource constraints, such as insufficient sources for water supply, and
g. All, or a combination of the above
34.
In order to arrive at the causes of infrastructure and service deficiency, different methods like
matrix method, cause and effect diagram, problem tree diagram etc. may be used depending upon
their suitability. Table 4 of Annexure 3(E) depicts the matrix method for identification of causes of
infrastructure deficiency.
Assessment of Future Needs:35.
As mentioned earlier, the future needs shall be assessed to arrive at suitable projects and
their specifications. Under the future needs, the growth of the town and identification of areas
where infrastructure provision can guide growth shall be studied. This shall be done by projecting
total future town-wide infrastructure needs based upon a range of growth scenarios.
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Design Horizon:36.
The future infrastructure requirements shall be assessed on the basis of projected population
and service levels. For the infrastructure, the design milestone years shall be 2011, 2021 and 2031.
The projections shall be realistic taking into account present coverage, affordability etc. For example,
if existing piped water supply coverage is only 30% it is difficult to achieve 100% in 2011 particularly
in an ULB with limited resources. Table 2 and 3 of Annexure 3(E) provided guidance for planning
future coverage and service levels based on the existing situation.
Project Identification:37.
For the infrastructure improvement, various projects shall be identified from the following
sources:a.
b.
c.
d.
Main infrastructure deficiencies identified
Development needs of the town
Any studies or plans for the town, and
Potential projects identified during the process
Feasibility Assessment :38.
The long list of proposed projects shall be assessed to ensure its feasibility. Each project shall
be assessed on various criteria. A brief description of the feasibility criteria is as follows:
a. Existing deficiencies : The project address identified service or infrastructure deficiencies
b. Future needs: The project addresses the future requirements and guides growth.
c. Conformity with plans: The project conforms to environments, land use or town plans
and regulations for the area.
d. Socially sound: The project provided access to urban infrastructure and services for lowincome as well other disadvantaged groups and improves income generation
opportunities through encouraging more investment
e. Environmentally sound: The project improves the environment, with minimum negative
impacts and complements other proposed environmental improvements.
f. Technically feasible: The project is implementable with the proposed design and will be
functional on completion.
g. Sustainable: The project is sustainable in terms of operational cost and capacity of the
agency to maintain.
h. Short gestation: The project is executable within a time frame (preferably up to two
years) and is free from major litigations.
i. Appropriate service levels: The level of service satisfies functional requirements,
facilitates implementation and allows effective operation and maintenance.
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39.
A set of criteria shall be used to screen potential projects and ensure that projects are
technically sound and feasible from environmental, social and institutional aspects. All projects
satisfying the feasibility criteria can be included for town-wide critical infrastructure.
40.
While some projects may look feasible from these criteria, they may require detailed
investigation and designing. There are instances where large drains constructed did not solve the
drainage problems, as investigation and design were not properly carried out. In particular, care has
to be taken for storm water drainage proposals. Projects requiring detailed studies and be included
in town-wide critical infrastructure, but shall be given low priority for the first year.
Prioritization of Projects :41.
In view of limited resources and affordability of the ULBs, the list of feasible projects shall be
prioritized. This shall also take into account management capacity of the ULBs.
42.
The feasible projects shall be prioritized on the following criteria:a. High priority sectoral deficiencies: The project which helps in alleviation of high priority
problems, such as water supply or storm water drainage, shall be given priority.
b. Committed project: The committed project which has the approval of the Government
but was not taken up for want of resources shall be given priority.
c. Per capita cost: The project with low per capita cost shall be given priority. Costs shall not
only include capital cost, but also operation and maintenance and total life cost.
d. Short gestation:
The project, which can be built within the existing institutional
framework; does not involve any major land acquisition and resettlement requirements;
and does not require any studies to be carries out etc., shall be given priority
e. Complements other projects: The project, which supports other ongoing projects, shall
be given priority.
f. Rehabilitation of existing infrastructure: Rehabilitation project shall be given priority in
view of its cost effectiveness.
43.
The projects shall be scored against selected criteria on a scale of 1 to 3. The individual scores
for different criteria shall be added to get consolidated score. Project, which stores the highest, shall
be first priority and rest in the order of scoring. By applying these criteria to the eligible projects, the
prioritized list shall be prepared. The scoring guidelines form project prioritization given in table 7
and 9 of Annexure 3(E) shall be used for prioritization of feasible sub-projects. In case of a tie
continues, per capita cost of the sub-projects would be taken into consideration for prioritization.
Affordability :44.
Once the prioritized list of projects is prepared, affordability is another major consideration.
Affordability analysis of the ULB shall be carried out for the recipient, implementing line agency and
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the proposed beneficiaries. For practical reasons, at the time of prioritization, per capita cost is used
which also works as proxy indicator for affordability.
45.
Financial and operating plan (FOP) of the ULB is generally used to arrive at its affordability.
However, for the ULBs where detailed FOP is not readily available, affordability analysis shall be
carried out separately.
46.
The FOP determines the financial soundness of the town. Data on receipts and expenditure is
required to develop FOP and make projections. Future capital investment as well as increased
operations and maintenance expenditure shall also be considered while arriving at the affordability
of the ULB. The FOP eventually develops financial ratios, which look at expenditure against revenue
and also debt servicing coverage.
Draft infrastructure proposals:47.
The infrastructure Improvement plan shall comprise of three sections. The first section shall
contain information on preparation of the infrastructure proposals and annexes detailing engineering
information. The second section shall contain details of projects proposed under infrastructure
including line estimate. Third section shall comprise of additional information required for projects
proposed for first phase of funding. (Tables for preparation of infrastructure proposals are enclosed
as Annexure 3(E)).
Operation and Maintenance Plan:48.
In order to improve service delivery and citizen satisfaction, it is important that operation and
maintenance, which is a neglected subject in the towns is brought to the forefront. Preparation of O
& M plan of the town is therefore a thrust area of reform. It is expected that the WG 2 would get
sensitized to the need of O&M plan and make provision for technical assistance to prepare O&M
plan. A sample O&M table is given in Annexure 3(F).
Convergence :49.
Convergence with other programmes and schemes is very essential for rational use of funds
and better targeting. The programmes under implementation shall be explained to the communities
so that they are able to make informed choices.
The Project Formulation Process :50.
Under APMDP, the preparation of initial project proposal as discussed earlier adopts the
following process involving different stages:a. Preparatory steps
b. Orientation and review workshop
c. Preparation of draft proposals
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d.
e.
f.
g.
Stakeholders consultative workshop
Finalize draft report
Appraisal and approval
MOU and Implement
Preparatory Steps :51.
Preparatory steps involve three distinct activities viz., data compilation and updation,
constitution of committees and orientation workshops on project process. The town shall update the
data relating to different aspects of municipal performance as well as implementation of proposals
under different schemes. The formats for data compilation are enclosed at Annexure 3(D).
52.
The town shall constitute MDC and 2 Working Groups. The composition and functions have
already been indicated.
53.
Understanding of the project process and procedures is important and therefore, all
members of CBOs and civil society at the town level shall be oriented. The project provides the basic
orientation initially and this shall be followed by further orientation and support as required.
Review :54.
Second stage in the project process is review of already initiated reforms and implementation
of other schemes. If there are any bottlenecks, they shall analyze the causes and find solutions to
overcome them. Similarly, if technical assistance is required to move forward suitable proposals
should be articulated.
Orientation and Review Workshop:55.
To facilitate better understanding of the APMDP process, funding pattern and other details an
orientation workshop shall be organized at each of the towns. Councillors, members of committees,
representatives of CBOs, SHGs and civil society consisting of 100-125 members may be invited to the
orientation workshop. Apart from orientation of APMDP processes, findings of review of reforms and
other schemes shall be presented in a workshop to facilitate better understanding of the municipal
performance by the civil society as well as to ensure accountability of the municipality. Based on
review, the Working Groups shall identify broad areas for Reforms, Capacity Enhancement and
Requirement of Infrastructure. The details may also be presented in a workshop to facilitate
discussion and to get feedback. This is critical for proper identification of proposals under APMDP.
The Working Groups shall also indicate the prioritized Reforms, Infrastructure and other inputs under
APMDP.
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Draft Proposals Preparation:56.
The Working Groups shall meet to articulate the proposals for incorporation in the APMDP.
The WGs 1, 2 based on review shall identify Reforms, Capacity Enhancement and Infrastructure
Improvement Proposals.
Stakeholders Consultative Workshop:57.
The second workshop, consisting broadly the same members who attended the earlier
orientation and review workshop, is aimed at sharing the proposals with them by the Working
Groups. Each WG presents the proposals followed by discussions and consensus building on the
proposals. The participants are encouraged to make suggestions. The working groups shall take into
consideration the suggestions from the stakeholders and examine them in light of basic principles of
the APMDP.
Finalize Initial project proposal:58.
Based on the feedback and suggestions, the working groups shall finalize the initial proposals
for Reforms, Capacity Enhancement, Infrastructure Provision. The said initial project proposal shall
be placed before the MDC for review and approval. After their approval it shall be submitted to the
Municipal Council as initial project proposal for approval
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Annexure 3(B)
Andhra Pradesh Municipal Development Project
Municipal Reforms Action Plan – (Check
List of Reforms)
Name of the ULB:-
I. Adoption of accrual based double entry system of Accounting
in ULBs
DESIRED OBJECTS:
Note: APMDP requires certain reforms to be undertaken by Urban Local Bodies (ULBs) with an
objective to improve urban
governance , enhance the capacity of state, local and community based organization and general
improvement in service delivery.
CURRENT STATUS:
I-1.
Please provide a short note on the present method of accounting system being
followed in your city/ town.
I-2.
Year
Please provide the status of completion and adoption of accounts, and if they have
been audited and published in the last 5 years. In case of pending of preparation of
Accounts and/or Audit prior to 2003, please mention the no. of years and they year by
which Audit will be completed.
Preparation of
accounts
Completion of
Audit
In case of pendency, time by which it will be
completed.
Prior to 2003
2003-04
2004-05
2005-06
2006-07
2007-08
I-3.
Please state whether ULB is adopting NMAM (Please ‘’ in the appropriate box)
i. without modification
ii. with modification
If NMAM is to be adopted with modifications, please state this
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I-4.
I-5.
Please provide current status of implementations of double-entry accrual system.
TIME LINE FOR ACTION ON REFORMS (Please ‘’ in the appropriate box)
I-5-1) Resolution by Urban Local Body (ULB)expressing commitment to establishment modern municipal
account system.
2009-10
I-5-2) Adoption of manual
Year 1
Year 2 Year 3 Year 4
Year 5
I-5-3) Commencement of training of personnel
Year 1 Year 2
I-5-4) Placing Consultant at the ULB for roll out
Year 3 Year 4
Year 1 Year 2
I-5-5) Adoption of Cut off date for migrating to the
double-entry accounting system.
Year 1
Year 2
Year 5
Year 3 Year 4
Year 3 Year 4
Year 5
Year 5
I-5-6) Valuation of assets and liabilities
Year 1
Year 2
Year 3 Year 4
Year 5
I-5-7) Drawing up of opening balance sheet (OBS) : (Please ‘’ in the appropriate box)
2009-10
I-5-7-i) Provisional OBS
Year 1
Year 2
I-5-7-ii) Adoption of Provisional OBS
Year 3 Year 4
Year 1
I-5-8) Finalization of OBS
Year 1
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Year 5
Year 2
Year 2
Year 3 Year 4
Year 3 Year 4
Year 5
Year 5
APMDP Operations Manual
I-5-9) Full migration to double-entry accounting system
Year 1 Year 2
Year 3 Year 4
Year 5
I-5-10) Production of financial statements (income-expenditure
accounts for various services such as water supply,
sanitation and preparation of balance sheet)
Year 1 Year 2
Year 3 Year 4
Year 5
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Municipal Reforms Action Plan
II. Reforms in taxes and non-taxes to improve coverage
and collection of taxes and non-taxes.
Name of the ULB:II-1.
Property Tax
DESIRED OBJECTIVES:
Note: APMDP a reform oriented project requires certain reforms to be undertaken by
ULBs in Assessment and collection of taxes and non-taxes, with a broad objective of
establishing a simple, transparent, non-discretionary and equitable property tax
regime that encourages voluntary compliance. ULBs need to ensure that their
desirable objectives for reforms include these reforms, but need not restrict
themselves to these items.
CURRENT STATUS
II-1-1. Please indicate if Property tax is currently levied on the following types of
properties:
(Please ‘’ in the appropriate box)
i) Residential
ii) Commercial
iii) Industrial
II-1- 2. Please indicate the Amount of Property tax collected for year-ending 2007-08 and 2008-09
2007–08
2008-09
(Rs. in lakhs)
(Rs. in lakhs)
i) Residential
ii) Commercial
iii) Industrial
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II-1-3. Please Provide the Method of Property Tax Assessment being followed:
(Please ‘’ in the appropriate box)
(Give short note, if necessary)
i. Self assessment
ii. Demand-based
II-1-4. Please provide the below information on current coverage.
(Rs. in lakhs)
No.of
No.of
Estimated properties Properties Coverage
Type of
Demand Demand Collection
No.
No.of
in the
paying
ratio
Property
raised Collected percentage
Properties records of property
(3) / (2)
the ULB
tax
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
1
2
3
II-1-5. Please list the Exemptions given to property owners
No.
Type of Exemption
Qualifying
institution/individual
Revenue implication of
exemption
1
2
II-1-6. Please provide the basis to determine property tax.
1. Capital Value
2. Rateable Value
3. Unit Area
4. Other (please specify)
II-1-7. Please provide the use of technology in property tax management
II-1-7-i. GIS of Property records
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II-1-7- ii. Electronic database of property records
iii. Any software for compliance
II-1-8. Please provide the last updation of property records.
I-1-8-i. Last updation of property records
I-1-8- ii. Last revision of guidance values
I-1-8- iii. Frequency of revision of guidance values
I-1-8-iv. Please indicate whether the information from appropriate authorities on new
building construction, or additions to existing buildings is being captured; if so, how (e.g.
Development authority etc.,)
Yes
No
I-1-8-v. Please indicate whether the information from appropriate authorities on change of
ownership and land valuation is being captured; if so, how (e.g. Dept. of Stamps and Registration)
Yes
No
TIMELINE FOR ACTION ON REFORMS:
Please provide timelines for the following action items:
II-1-9) Extension of Property tax regime to all properties (100% coverage)
(Please indicate the coverage gap to be filled up
in percentage year-wise)
2009-10
Year 1
Year 2
Year 3 Year 4
Year 5
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II-1-10) Achievement of 90% Collection Ratio
Year 1
Year 2
Year 3
Year 4
Year 5
(Specify target increase for each year of the project in percentage)
II-2.
Municipal Reforms Action Plan
Vacant land tax:
CURRENT STATUS
II-2-1. Please indicate the Amount of tax being collected for year-ending 2007-08 and
2008-09
Rs. in lakhs
II-2-2. Please provide the Method of Tax Assessment being followed (Give short note, if necessary)
II-2-3. Please provide the below information on Current coverage
(please use additional rows if necessary)
No.of
Coverage
Estimated properties in
No.of
ratio
Demand
No.of
the records of Properties
No.
raised
properties the
paying tax
municipality
(3) / (2)
(2)
(3)
(4)
(5)
(6)
II-2-4. Please provide the last updation of tax records and guidance values.
i) Last updation of records
ii) Last revision of guidance values
TIMELINE FOR ACTION ON REFORMS
Please provide time lines for the following action items:
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Rs.in lakhs
Demand Collection
Collected Ratio
(7)
(8)
APMDP Operations Manual
II-2-5) Extension of Property tax regime to all properties (vacant lands) (80% coverage) (please
indicate the coverage gap to be filled up in percentage year-wise)
2009-10
Year 1 Year 2
Year 3 Year 4
Year 5
II-2-6) Achievement of 90% Collection Ratio (Specify target for each year of the project)
Year 1
Year 2
Year 3
Year 4
Year 5
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Municipal Reforms Action Plan
Advertisement tax:
II-3.
CURRENT STATUS
II-3-1. Please indicate the Amount of tax being collected for year-ending 2007-08 and 200809
Rs. in lakhs
II-3-2. Please provide the Method of Tax Assessment being followed
(Give short note, if necessary)
II-3-3. Please provide the below information on Current coverage
No. of
Estimated No. Advertisements
No. of
No.
of
in the records Advertisements
Advertisements
of the
paying tax
municipality
(2)
(3)
(4)
Coverage
ratio
Demand Demand Collection
raised Collected
Ratio
(3) / (2)
(5)
(6)
(7)
(8)
II-3-4. Please provide the information on fixing of rates of Advertisement tax.
i) Year in which the rates of tax are fixed
II-3-5. whether the collection of Advertisement tax is outsourced
Yes
No
TIMELINE FOR ACTION ON REFORMS
Please provide time lines for the following action items:
2009-10
II-3-6) Extension of tax regime to all Advertisements
Year 1
(Please indicate the coverage gap to be filled up
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Year 2
Year 3
Year 4
Year 5
APMDP Operations Manual
in percentage year-wise)
II-3-7) Achievement of 90% Collection Ratio
Year 1
Year 2
Year 3 Year 4
Year 5
(Specify target for each year of the project in percentage)
Municipal Reforms Action Plan
NON -TAXES
II-4.
D & O Trades:
CURRENT STATUS
II-4-1. Please indicate the Amount of Trade
Licence fee collected for year-ending 2007-08 and 2008-09
(Rs. in lakhs)
II-4-2. Please provide the procedure of fixation of trade license fee
(Give short note, if necessary)
II-4-3. Please provide the below information on current coverage:
Rs. In lakhs
No.
Estimated
No. of
D&O
Trades
(2)
No. of Trades
in the records
of the
municipality
(3)
No. of
Trades
paying
license fee
Coverage
ratio
(3) / (2)
(5)
(4)
111
Demand
raised
Demand
Collected
Collection
Ratio
(6)
(7)
(8)
APMDP Operations Manual
II-4-4. Please provide.
II-4-4-i) Previous year in which Trade License fee is revised
II-4-4-ii) Periodicity for revision of trade license fee .
TIMELINE FOR ACTION ON REFORMS
Please provide time lines for the following action items:
2009-10
II-4-5) Extension of issue of license to all D&O Trades
Year 1
Year 2
Year 3 Year 4
Year 2
Year 3 Year 4
Year 5
(Please indicate the coverage gap to be filled up
in percentage year-wise)
II-4-6) Achievement of 90% Collection Ratio
Year 1
Year 5
(Specify target for each year of the project
in percentage)
Municipal Reforms Action Plan
NON -TAXES
II-5.
Market fees and shop rooms rents:
CURRENT STATUS
II-5-1. Please indicate the amount of market fee and shop room rents being collected for
year ending 2007-08 and 2008-09
Rs. in lakhs
II-5-2. Please provide the method of fixing market fees and shop room rents.
(Give short note, if necessary)
II-5-3. Please provide the below information on Current coverage.
112
APMDP Operations Manual
No.
Demand
raised
(6)
No. of Markets and No. of shop rooms
(2)
Demand
collected
(7)
Collection
Percentage
(8)
1
II-5-4. Please provide the last revision of market fee and shop room rents.
II-5-5. Frequency of revision .
Market
Shops
TIMELINE FOR ACTION ON REFORMS
Please provide time lines for the following action items: (Please ‘’ in the appropriate box)
2009-10
II-5-6) Revision of market fees.
Year 1
II-5-7) Revision of shop room rents
Year 1
Year 2
Year 3 Year 4
Year 5
Year 2
Year 3 Year 4
Year 5
II-5-8) Achievement of 90% Collection Ratio
(Specify target for each year of the project in percentage)
Year 1 Year 2
113
Year 3 Year 4
Year 5
APMDP Operations Manual
Municipal Reforms Action Plan
III. Levy of reasonable user charges
Name of the ULB:DESIRED OBJECTIVES:
Note: APMDP requires certain reforms to be undertaken by ULB on different Municipal services with
an objective of securing effective linkages between asset creation and asset maintenance and
ultimately leading to self sustaining delivery of urban services:
CURRENT STATUS:
III-1. Please provide a list of services being delivered by municipalities and the status of
tariff / user charges for each.
Type of Service
Tariff Structure
Last Revision of Tariff
Water supply
Sewerage
Solid waste management
Parks
III-2. Please furnish the costs for providing the following services and the amount recovered in
2008-09
O & M Cost (Please
specify the unit)
Service
Total Cost
Per annum
(Rs.)
(1)
Water supply
Sewerage
Solid waste management
Parks
(2)
Unit
Cost
(Rs.)
(3)
Amount recovered
(Please specify the unit)
Total
Recovery
Per annum
(Rs)
(4)
(Including conservancy component in Property Tax)
Note: Unit=Kilolitres i.e., 1000 Litres
SWM=Metric Tonnes.
III-3. Please provide current service levels.
Item
Estimated Quantity of waste generated per
day in MT
Quantity of waste collected, (MT/day)
114
Percentage
of recovery
of O&M
cost
Gap in recovery
of O&M cost in
percentage
(6)
(7)
Unit
Recovery
(Rs.)
(5)
APMDP Operations Manual
Collection efficiency (%)
Frequency of waste collection
No. of Garbage collection centers
Average spacing of dustbins, (meters)
No. of sweepers (excludes Jawans &
Scavengers )
Number of open collections points
III-4. Water Supply:
(Liter per capita per day)
LPCD
Coverage through proper supply
Hrs. of supply
Quality
Existing no. HSCs
Existing no. of commercial connections
Existing no PSPs
No. of Connections having water meters
Please provide the following information:
III-5.Present requirement of O&M expenditure per annum (Rs. In lakhs) i.e.2009-10
III-6. Present O&M allocation per annum (Rs. In lakhs)
III-7. Gap between requirement of O&M expenditure and allocation per annum (Rs. In lakhs)
TIMELINE FOR ACTION ON REFORMS :Note: The ULB must formulate and adopt a policy on user charges which should include proper
targeting of subsidies, if any, for all services; ensuring the full realization of O&M cost by the end of
the project period i.e. 2013-14
III-8. Establishment of proper accounting system for each service so as to determine the O&M cost
separately. Please specify the timeline for each service separately
2009-10
III-8-1. Water supply
Year 1
Year 2
Year 3 Year 4 Year 5
115
APMDP Operations Manual
III-8-2. Sewerage
Year 1
Year 2
Year 3
Year 4
Year 5
III-8-3. Solid waste management
Year 1
Year 2
Year 3
Year 4
Year 5
Year 1
Year 2
Year 3
Year 4
Year 5
III-8-4. Parks
III-9. Time table to achieve improved recovery of O&M costs from user charges from Solid
waste management to fill-up the gap shown in column III-2 in percentage.
Year 1
Year 2
Year 3
Year 4
Year 5
III-10. Time table to achieve improved recovery of O&M costs from user charges from water supply
to fill-up the gap shown in column III-2 in percentage
Year 1 Year 2
Year 3 Year 4 Year 5
III-11. Time table to achieve improved recovery of O&M costs from user charges from sewerage
to fill-up the gap shown in column III-2 in percentage
Year 1 Year 2
Year 3 Year 4 Year 5
III-12. Time table for improved recovery of O&M costs from user charges from Parks
to fill-up the gap shown in column III-2 in percentage
Year 1 Year 2
Year 3 Year 4 Year 5
116
APMDP Operations Manual
III-13. Time table for bridging the gap between O &M requirement & allocation (Rs. In lakhs)
Year 1
Year 2
Year 3
Year 4
Year 5
III-14. Time table for providing meters to all non-domestic water supply connections (percentage to
be indicated)
Year 1 Year 2
Year 3 Year 4 Year 5
117
APMDP Operations Manual
Municipal Reforms Action Plan
IV. Implementation of Citizen Charter and Establishment of Call Centre
Name of the ULB:Objectives:Note: APMDP requires certain reforms to be undertaken by ULBs with an objective to improve urban
governance and general improvement in service delivery.
Current status:IV-1.
Whether citizen’s service center is actually functioning :
Yes / No
IV-2.
Whether citizen’s service center is actually functioning in circle
offices also where circle offices are established:
Yes / No
IV-3.
centers
Whether brochures are available for all services rendered at service centers & e-seva
Yes / No
IV-4.
Whether a call center is established for disposal of public grievances:
Yes / No
IV-5.
Describe briefly mechanism for redressal of public grievances:
Timeline for action on reforms:IV-6.
Time required for establishment and functioning of service center
where it is not actually functioning now
118
APMDP Operations Manual
IV-7.
Time required for making brochures available at citizen center & e-seva centers for
the following urban services (Year to be indicated)
IV-8.
IV-7-i.
Property tax assessment and allotment of door no.
IV-7-ii.
Vacant land tax assessment and issue of special notice
IV-7-iii.
Transfer of title of property in municipal records
IV-7-iv.
Water supply connection
IV-7-v.
Sewerage connection
IV-7-vi.
Building permission
IV-7-vii.
Change of land use in master plan
IV-7-viii.
Registration of births and deaths and issue of birth and death certificates
IV-7-ix.
Trade license
IV-7-x.
Valuation certificate
IV-7-xi.
Permission for establishment of factory / industry
Time required for introduction of Online Grievance Redressal Tracking System
(OGRTS i.e. Municipal Call Center) (year to be mentioned)
119
APMDP Operations Manual
Municipal Reforms Action Plan
V.
Empowerment of Urban Poor
Name of the ULB:Desired objectives: APMDP requires certain reforms to be undertaken by ULBs with an objective to improve
Urban Governance, enhance the capacity of state, local and community groups and
general improvement in service delivery.
V-1.Please provide a short note on Urban Poverty Alleviation in your city / town.
V-2.Please provide the following information.
V-2-1.
Population (as per 2001 census)
V-2-2.
Present estimate population ( March, 2009)
V-2-3.
PL Population
V-2-4.
Percentage of BPL Population
V-2-5.
Status of organization of the poor and empowerment (as on March, 2009)
V-2-5-1.No. of SHGs formed.
V-2-5-2.BPL Population covered under SHGs
V-2-5-3.Percentage of BPL population covered under SHGs
V-2-5-4.No. of SHGs having their own Book Keepers
V-2-5-5.No. of SHGs holding weekly meetings
V-2-5-6.No. of slum level federations (SLF) formed
V-2-5-7.No. of SHGs having membership in SLFs
V-2-5-8.No. of Urban CRPs / Nagaradeepikas ( social capital) trained
V-2-5-9.No. of SHGs of persons with disabilities, formed
V-2-6.
V-2-6-1.
V-2-6-2.
V-2-6-3.
Status on access to credit/ bank linkage provided to SHGs (as on March, 2009)
No. of SHGs availed bank linkage
Per capita bank linkage availed
Percentage of re-payment
V-2-7.
V-2-7.a.
V-2-7.b.
tatus on livelihoods (as on March, 2009)
No. of un-employed given skill trainings
No. of urban poor helped in setting up of micro enterprises.
V-2-8.
V-2-8-a.
V-2-8-b.
Status on social security (as on March, 2009)
No. of poor covered under insurance.
No. of poor covered under other social security schemes.
Timeline for action on reforms in empowerment of the urban poor
V-3. No. of SHGs to be formed to cover all BPL population.
Specify targets for each year
Year 1
Year 2
2009-10
Year 3
120
Year 4
Year 5
APMDP Operations Manual
V-4. No. of Book Keepers to be trained to cover all SHGs.
Specify targets for each year
Year 1
Year 2
Year 3
Year 4
Year 5
V-5. No. of SHGs to be transformed in to weekly meeting SHGs. (to cover 100% SHGs with weekly
meetings)
Specify targets for each year
Year 1
Year 2
Year 3
Year 4
Year 5
V-6. No. of slum level federations (SLF) to be formed to cover all Slums.
Specify targets for each year
Year 1
Year 2
Year 3
Year 4
Year 5
V-7. No. of SHGs of persons with disabilities, to cover all disabled in ULB
Specify targets for each year
Year 1
Year 2
Year 3
121
Year 4
Year 5
APMDP Operations Manual
V-8. No. of SHGs to be covered under bank linkage
Specify targets for each year
Year 1
Year 2
Year 3
Year 4
Year 5
V-9. Amount under bank linkage - Per capita bank linkage to be increased.
Specify targets for each year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 4
Year 5
Year 4
Year 5
V-10. Repayment percentage to be increased.
Specify targets for each year
Year 1
Year 2
Year 3
V-11.No. of un-employed to be covered under skill trainings
Specify targets for each year
Year 1
Year 2
Year 3
V-12. No. of urban poor to be covered under setting up of micro enterprises.
Specify targets for each year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 4
Year 5
V-13. No. of urban poor to be covered under social security
Specify targets for each year
Year 1
Year 2
Year 3
122
APMDP Operations Manual
Annexure :-3(c )
Andhra Pradesh Municipal Development Project
Capacity Enhancement Action Plan (CEAP)
Name of the ULB:Objectives:- The objective of the plan is to maintain the infrastructure proposed in the project efficiently and sustainably so that service
improvements do happen within the ULBs and citizens do benefit in the long run.
1) Institutional option preferred for maintenance of the infrastructure:
a) Water supply
b) Sewerage /Storm water drains
c) Street lights
Outsourcing
Departmental
:
:
:
d) Solid Waste Management :
Departmental
Outsourcing
Departmental
Outsourcing
Departmental
Outsourcing
2) In case of Departmental maintenance furnish structure of the unit
(Indicate details of officers and staff working in the unit)
Sl. No.
1
Name of the infrastructure
Water supply
2
Sewerage /Storm water drains
3
4
Solid Waste Management
Street lights
Category of officer/ staff
123
Nos.
APMDP Operations Manual
3) Capacity building measures for the officers and staff indicated in each unit
Sl. No
1
Name of the training
programme
1.
2
Procurement capacity building
programme
2.
Water supply systems
3.
Water transmission and
distribution
4.
O&M of water supply
5.
Energy study of water supply
systems
6.
Sewerage systems
7.
O&M of sewerage system
8.
Solid waste management
9.
Designing and maintenance of
street lights
Category of officers to be No. of officers Cost of training for 3 Year by which
trained
to be trained in days (Rs. 3000/- per training
will
(i.e. SE, EE, Dy.EE, AAE)
each category
participant per day)
completed
3
4
124
5
6
the
be
APMDP Operations Manual
4) Institutional strengthening measures for O&M of Urban services
Sl. No.
Additional maintenance
equipment
1.
Procurement of water tankers
2.
Procurement of vehicles for road
maintenance
3.
Procurement of vehicles for
transportation of solid wastes
4.
Procurement of vehicles for street
lighting maintenance
5.
Procurement of safety equipment
for SWM
6.
Procurement of safety equipment
for street lighting
7.
Establishment of laboratory for
testing of water supply
8.
Establishment of quality control
lab for street lighting
9.
Establishment of quality control lab
for roads & buildings
No. of vehicles /
equipment available
Additional no. of
vehicles / equipment
required
125
Time frame for
procurement
Cost of procurement
(Rs. In lakhs)
APMDP Operations Manual
5) Operation and maintenance plan
Sl. No.
Name of the sector
1
2
Water supply
1.
Regular maintenance
Operation of power bores by community /
2.
privatization
3.
Repairs of platforms and new constructions
Solid waste management
1.
Regular maintenance
2.
Procurement of safety equipments
Street lighting
1.
Regular maintenance
2.
Procurement of wireless sets/cell phones
3.
Procurement of safety equipments
4.
Establishment of quality control lab
5.
Training to the workers
Roads
1.
Regular maintenance
2.
Repairs of roads
3.
Resurfacing of BT roads
Drains
1.
Regular maintenance
2.
Awareness camps
Sanitation (including UGD)
1.
Regular maintenance
2.
Repairs of manholes
3.
Safety equipments
4.
Separate maintenance squad
5.
Awareness camps
Estimated cost
(Rs. In lakhs)
3
126
Immediate
actions
year 1
4
Medium and long term actions
Year 2
Year 3
Year 4
Year 5
5
6
7
8
APMDP Operations Manual
6) Municipal Staff Capacity Enhancement
Current status:1) No. of Municipal Functionaries to be trained
VI-1-a.
No. of Elected Representatives
VI-1-b.
No. of Officials
VI-1-c.
No. of Municipal staff
2) No. of Municipal Functionaries already trained
VI-2-a.
No. of Elected Representatives
VI-2-b.
No. of Officials
VI-2-c.
No. of Municipal staff
Time line for action:Time table for training of all Municipal functionaries
2009-10
VI-3.
Training of officers (Number to be trained each year)
Year 1
Year 2 Year 3
Year 4
Year 5
VI-4.
Training of Municipal staff (Number to be trained each year)
Year 1 Year 2 Year 3 Year 4 Year 5
VI-5.
Training of elected representatives(Number to be trained each year)
Year 1
Year 2 Year 3
Year 4
Year 5
VI-6.
Training in professional certification programme for
specialists staff in Financial Management,
Public Health Management, Municipal & Environmental
Engineering, UPA, Urban Planning and Building Regulation
(number to be trained each year)
Year 1
Year 2
Year 3
Year 4
127
Year 5
APMDP Operations Manual
Annexure – 3(D)
Basic Data of ULB
Name of the ULB:Table 3.1 Municipality at a Glance
General
Area
Population
Total Households
2001 census
Literacy
Literacy
Literacy
Male
Female
Total
Infrastructure
Water supply
Protected water supply reservoirs :
Total installed capacity of protected:
Water Supply
House service connections
:
Public stand posts
:
Length of distribution pipeline
:
Unserved population
:
Water supply through bore wells :
Power bores
:
Hand bores
:
Roads
C.C.roads length
:
B.T roads length
:
WBM roads length
:
Kutcha roads length
:
Unserved population
:
Total length of Roads
:
Drains
Pucca drains length
:
Kutcha drains length
:
Storm water drains length
:
Unserved population
:
Total length of Drains
:
Street lighting
High mast lights
:
Central lighting
:
SV lamps 150 Watts
:
SV lamps 250 Watts
:
MV lamps
:
Tube lights 40 watts
:
Unserved population
:
Total number of Street lights
:
Sanitation
Garbage generation / day
:
Garbage lifted/day
:
Service deficiency
:
Area available for dump site
:
:
:
:
:
:
Slum Population (2004 SJSRY survey):
Yearly income (incl.grants) (2003-04) :
Yearly expenditure (2003-04)
:
Hospitals
No.of Government hospitals
:
No.of Urban health centres
:
Schools
No.of Government schools
:
No.of High schools
:
No. of Upper primary schools
:
No. of primary schools
:
Other assets
Burial grounds
:
Vegetable markets
:
Parks
:
Play grounds
:
128
APMDP Operations Manual
Table 3.2 Infrastructure Coverage
Details
Unit
%
%
%
%
Hours
LPCD
Households with HSCs
Households served by PSPs
Total Households with piped water supply
Households served by tankers
Average supply time per day
Average per capital supply
Average percentage losses in system (NRW, UFW)
Dry Season
%
B. Sewerage & Sanitation
Type
Unit
Households with sanitary latrines (individual and community
Households connected to sewers
Households with unsanitary latrines
Households with no facility
C. Storm water drainage
Main areas of town prone to flooding
Frequency of flooding
Extent of damage (Financial in Rs.
Extent of damage(Physical area/Nos)
Availability of storm water drainage master plan
D. Roads
Estimated percfentage of all roads per habituated area
Estimated percentage of pucca roads per habituated area
Is there a roads or traffic plan?
E. Street lights
Average spacing of street lights on main roads
Average spacing of street lights on all roads
129
%
%
%
%
A. Water Supply
West Season
APMDP Operations Manual
Table 3.3 Projected data
Municipality ______________
Basic data
Area
Habitated area
Population 2001 Census
Density
1981 Census
1991 Census
2001 Census
Decadal growth 81-91
Decadal growth 91-01
BPL population
Slum population
Municipal wards
Slums
Notified
Slums
Non-notified
Civil Society Organisations
CDSs
NHCs
NHGs
SHGs
CMEY groups
Colony welfare associations
Civic exnora societies
NGOs
District ______________
Date :
Units
Sq.Km
Sq.Km
Number
Persons per sq.km
Number
Number
Number
%
%
%
%
No.
No.
No.
Details
No.
No.
No.
No.
No.
No.
No.
No.
Table 3.4 Plans status
Plans
Prepared by
Base map
Ward map with boundaries
Contour plan
Master plan
Roads network plan
Water supply system
UGD system
Drainage system
Others (specify)
130
Date
Scale
APMDP Operations Manual
Name of the study
Studies sponsored
(Name of Executive
body)
Municipality
DTCP
PHED/HMWSSB
UDA
APUSP
DMA
Others (specify)
Prepared by
Date
Status
Table 3.5 Studies Status
Table 3.6 Projects Sectors taken up during last five years
Sl.No.
Project
name
Scope of
work
Cost
Funding
agency
Start
date
Completion
date
Physical
improvement
made
Remarks
1
2
3
4
5
6
7
Table 3.7 Water Supply ( Headworks including Wells)
Sl.No.
Location
Date of
construction
Type of
source
Distance
from
city/town
Approximately yield
(MLD)
Dry
1
2
3
4
5
6
7
Wet
Table 3.8 Treatment Plants (Filter Beds)
Sl.
No
Name &
Location
Total
area
Year of
constru
ction
Built up
area of
plant
Installed
capacity
(MLD)
Current
capacity
(MLD)
1
2
3
4
5
6
7
131
Type of
treatment
Chlori
nation
type
Quality
of
effluent
List
main
proble
ms
APMDP Operations Manual
Table 3.9 Water Supply (Transmission and Distribution)
Mains
Transmission
Length
Diameter
Distribution
Length
Diameter
Age
Age
Total
length
RCC
PCC
CI/MS
HDPE
AC
PVC
Other name
Total
Estimated %
losses
Table 3.10 Storage
Storage
Year of
construction
Number
Capacity MLD
Whether
functional or not
ELSR
GLSR
Summer storage
Total
Table 3.11 Water Supply (Pumps and Finance)
Pumps excluding / hand borewells
Number
Installed capacity
Present capacity
Estimated efficiency of pumps and motors
Average monthly power consumption
Average monthly power charge
(April 2003 to March 2004)
Unit
Number
m3/hr
m3/hr
%
KVh
Rs.in
lakhs
Raw water
Clear water
Booster
Table 3.12 Pump House
Pump house
No.
Type
Age
Table 3.13 Sanitation (Human waste disposal)
Annual income & expenditure of Sewerage system
Item
Cost of sewer connection
Domestic
Commercial
132
Rs.in lakhs
Total
APMDP Operations Manual
Monthly tariff
Annual income (if any)
Annual power costs
Establishment costs
Equipment and material costs
Total annual expenditure
List main problems
Summarise any proposals
Table 3.14 Solid Waste Management (Garbage Collection & Disposal)
Solid Waste Management
Details
Collection per day
Frequency
Garbage generated per day
Percentage collected
Land fill site
Area
Distance
Unit
Town
centre
Markets
Suburbs/
Colonies
Slums
Total
MTs
No/week
MTs
%
Sq.Km
Km
Table 3.15 Collection & disposal of Solid Wastes
Collection
Transportation
Number
Cycle rickshaws
No.of tractor and trailers
No. of trucks
No.of Dumper places
No. bullock carts
Disposal / processing
Landfill
Site used area in Sq.Km
Site identified in Sq.Km
Disposal
Staffing
Management
No.of staff for solid
waste
No. of staff for street
sweeping
Privatisation
Area of the town, sweeping privatized
Area of the town, drain cleaning privatized
Annual expenditure
Annual expenditure on vehicles
Establishment costs for street sweeping
Establishment costs for drain cleaning
Avg. Capacity
Dumping
Condition
Composting
Supervisors
Labour
Percentage
Rs. In lakhs
133
Other
APMDP Operations Manual
Cost of consumables per year
Payment to private contractors
Total annual expenditure on solid waste
Annual income (if any)
List main problems
Summarise any proposals
Table 3.16 Roads
Type of road
R&B roads/National High Way
BT
CC
ULB roads
BT
CC
WBM
Kutcha
Length in Km
Condition
On main roads
On side roads
No. of bridges of ULB
No.of culverts of ULB
No. of bridges R&B/NH
No. of culverts R&B/NH
No. of junctions R&B/NH
No.of junctions of ULB
Condition of Junctions of
R&B/ NH
Condition of Junctions of ULB
List main problems (including
Areas prone to flooding with
extent and frequency)
Summarise any proposals
Table 3.17 Drains
Drainage type (sullage and storm water
Item
Length of drains
Kutcha
Disposal
Where do the main drains
outfall?
List main problems
Summarise any proposals
Annual expenditure
Pucca
Description
Rs.in lakhs
134
APMDP Operations Manual
Table 3.18 Costing for Maintenance of Roads and Drains
Item
Establishment costs
Equipment and material costs
Total annual expenditure
Roads
Drains
Table 3.19 Receipts during Last 4 years and Projections
Sl.
Receipts
No.
Head
I – Taxes
1
Property tax & VLT
2
Advertisement tax
3
Other taxes
Total taxes
II – Non Taxes
1
Water Charges
2
D & O Trades
3
Encroachment fee
4
Betterment charges
5
Building permission fee
6
Layout fee
7
Building regularization
scheme
8
Miscellaneous receipts
9
Others
Total Non- Taxes
III – Assigned Revenues
1
Entertainment tax
2
Surcharge on stamp duty
3
Other assigned revenue
4
Profession tax compensation
5
Per capita grant
6
M.V. tax compensation
Total assigned revenues
IV – Total Plan Grants
1
State Govt. programmes
2
Neeru-Meeru
3
Clean and green
4
NSDP
5
ILCS
6
SJSRY
7
MPLADS
8
Eco conservatory project
9
Urdu ghar / shadi khana
10
Road grant
2001-02
Actual
2002-03
135
2003-04
(Rs. In lakhs)
Projected figures
2004-05 2005-06 2006-07
APMDP Operations Manual
11
12
13
14
15
16
Drainage grant
Janma bhoomi
Water supply
CM special grants
Drought relief grant
Other central govt
programmes
Total plan grants
17
Total taxes
18
Total Non-taxes
19
Total assigned revenues
20
Total plan grants
21
Loans
Grand Total
Table 3.20 Expenditure for Last 3 years and Projections
Sl.
Item
No.
I – Establishment
1
Pay and allowances of
municipal employees & non
teaching staff
2
Pensionary benefits
II
Maintenance of Services
1
Roads
2
Drains
3
Buildings
4
Sanitation
5
Water supply
6
Lighting
III
Capital Works
1
Roads
2
Drains
3
Buildings
4
Sanitation
5
Water supply
6
Lighting
IV
Office Maintenance
V
Others (remunerative
enterprises, loan repayment,
contribution, town planning
acquisition of lands and
buildings, law charges etc.)
Total
2001-02
Actual
2002-03
136
2003-04
(Rs. In lakhs)
Projected figures
2004-05 2005-06 2006-07
APMDP Operations Manual
Annexure – 3(E)
Data required for preparation of town wide infrastructure improvement proposals
Table 1 Municipal Expenditure on Infrastructure Provision 2004-2009
Type of Expenditure in poor settlements on
Expenditure in town on infrastructure
Infrastru infrastructure provision
provision (including poor settlement)
cture
Length/
Pop
HH
Amt
Length/
Pop
HH
Amt
Units
Covered
Covered spent Units
Covered Covered spent
2
3
4
5
6
7
8
9
10
Sl.
No
1
1
2
3
4
5
Grand Total (Amount)
Sl.No.
1
2
3
Table 2 Proposed Future Coverage and Levels of Service
Sector
Item
Existing
2011
Water Supply
Households covered by piped
<30
60
water supply-house service
30-50
75
connections
50-70
90
70-100
100
Households by group taps
0-20
30-50
Households covered by PSPs
>50
<30
Sewerage
Households covered by
<30
60
sanitary items
30-70
80
>70
100
Households covered by sewer
10-40
50
connections
40-70
75
>70
90
Solid Waste
Area covered
<50
80
50-75
100
>75
100
2021
80
100
100
100
30-50
<15
90
100
100
70
90
100
100
100
100
2031
100
100
100
100
30-50
<5
100
100
100
100
100
100
100
100
100
Table 3 Population Growth and Demand Projections
A.
Water Supply
Households with house service
connections
Per capita supply (including
Units
%
Existing
LPCD
137
2011
2021
2031
APMDP Operations Manual
losses)
Households served by stand
Per capita supply (including
losses)
Total domestic supply
Non-domestic supply
Total water requirements
B. Sanitation & Sewerage
Households with sanitary latrine
Households connected to sewers
%
LPCD
KLD
KLD
KLD
%
%
C. Solid Waste Management
Generation per day
MTs
Collection per day
MTs
Land fill site area
Area
Sq.k
D. Storm Water Drainage
Details
Do new developments consider
drainage issues?
Are they on land prone to
flooding?
Could drain construction create
developable land?
E. Roads
Details
Are any parts of the town
unserved by pucca roads?
Would
bridge
or
culvert
construction improve access to
developable areas?
Proposed length of roads in Km
required
to
serve
new
development in 10 years
Road widening requirements
138
APMDP Operations Manual
Table 4 Deficiency of Infrastructure and its Causes
Sl.
No.
1
1
2
3
4
5
6
Sector
2
Water
supply
Drainage
Sewerage
Roads
Street
lighting
Solid waste
Existing
Status
Deficie
ncy
Beyond
project
life
Over
use
Inadequ
ate
design
3
4
5
6
7
Inappro Impro
priate
per
constru O&M
ction
8
9
Reso
Others
urce
(Please
const specify)
raints
10
11
Prop
osal
12`
management
Table 5 List of infrastructure Proposals Identified with Justification
Sl.N
o.
1
2
3
4
5
6
Sector
Name of
the
Project
Cost Rs.in lakhs
Population
to be
identified
Area to be
covered
Justification
Water supply
Drainage
Sewerage
Roads
Street lighting
Solid waste
management
Table 6 Process of Selection of Proposals for infrastructure
Scope
Eligible projects
 Water supply
 Main roads
 Drains etc.
Ineligible projects


Local or tertiary infrastructure
Town halls etc
Feasibility
Feasible projects
 Meet deficiencies
 Confirm with plans
 Socially sound
 Environmentally sound
 Technically feasible
 Sustainable
 Short gestation
 Appropriate service
levels
Non-feasible projects

Projects which do not
satisfy the above criteria
139
Priority
High priority projects
 Sectoral deficiencies
 Committed projects
 Low per capita cost
 Short gestation
 Complements others
projects
 Rehabilitation
Low priority projects


Long gestation
High per capita cost
APMDP Operations Manual
Table 7 Project Prioritization Scoring Guide
Sl.No.
1
Criteria
2
High priority sectoral
deficiencies
Committed project
3
4
5
6
3
Highest priority
Score
2
Second priority
In master plan
Per capita cost
Short gestation
By council or
Government
Lowest third
Less than 4 months
Complements other
projects
Rehabilitation
Required to support
other projects
>80%
Converges with
another project
30% to 80%
Medium third
4 to 9 months
1
Not a priority
Not in Master
plan
Highest third
More than 9
months (study or
LA required)
No convergence
<30%
Table 8 List of feasible infrastructure Sub projects
(Rs.in lakhs)
Item/Sl.No.
Name of the
proposal
Length
Water Supply
1
2
3
4
Drains
1
2
3
4
Roads
1
2
3
4
140
Estimated Cost
Remarks
APMDP Operations Manual
Table 9 Prioritization of feasible sub-projects under infrastructure
Sl.N
o.
Name of
sub
project
Population
covered
1
2
3
Required
to
support
other
projects
(3)
12
Sectoral deficiency
Medium
priority
(2)
5
High priority
(3)
4
Complement with project
Converg
ence
No
with
converge
another
nce (1)
project
(2)
13
14
Low
priority
(1)
6
Rehabilitation
Score
Above
80%(3)
7
30 to
80%(2)
8
9
Polilcy Commitment
Score
Council/G
ovt(3)
Master
plan (2)
Not in
Master
(1)
15
16
17
18
Below
30% (1)
Score
10
11
Gestation
Score
Below 4
months
(3)
4 to 9
months
(2)
More than
9 months
LA
required
19
20
21
22
Per Capita
Score
Lowest(3)
Medium(2)
Highest(1)
Score
23
24
25
26
27
Total Score
(7+11+15+19+23+27)
28
SOLID WASTE MANAGEMENT
(Rs.in lakhs)
Name of the proposal
Estimated Cost
Remarks
Table 10 Abstract infrastructure sub projects
(Rs.in lakhs)
Sector
Water supply
Under ground drainage
Roads
Drains
Solid waste
Parks, play grounds
Total
Required infrastructure
141
Indicative cost
APMDP Operations Manual
Table 11 Phasing of Projects
Sl.No.
Name of the
Project
Estimated cost
Rs. in lakhs
Year 1
1
2
3
142
Year 2
Year 3
Year 4
Year 5
APMDP Operations Manual
Annexure – 3(F)
Operation and Maintenance Plan
(Rs. In lakhs)
Sl.
N
o
Sector
Existing
infrastructure
Capital
cost
O&M
cost in
200910
Deficiency
in service
1
1
2
3
4
5
6
7
2
Water Supply
Sanitation
Drains
Roads
Street lights
Vehicles
Buildings
3
4
5
6
143
Funds
reqd for
O&M
in
budget
2009-10
7
Allocatio Gap O&M req.
n for
(7-8)
O&M in Amt Source
budget
2009-10
8
9
10
APMDP Operations Manual
ANNEXURE 4
INITIAL PROJECT PROPOSAL (IPP)
144
APMDP Operations Manual
Annexure 4 : Initial Project Proposal (IPP) Template
Date:
Name of Urban Local Body
:
District
:
Region
:
Address of the ULB
:
Name
:
Street, etc
:
Town / City & Pin Code
:
Phone
:
Fax
:
Mobile
:
(Postal Address, telephone, fax, mobile numbers and E-mail address)
Section 1:
General Information of the ULB
1.
Grade of the Municipality / Corporation
:
2.
Area of Urban Local Body in Sq. Kms
:
3.
Number of Wards / Divisions
:
4.
Number of Notified / Non-notified Slums
:
5.
Population & Decadal growth rates
:
Census Report
Men
Population
Women
Total
% Growth
BPL population
1971
1981
1991
2001
6.
Total slum population in the U.L.B
7. Total below poverty line (BPL) population1
(both slum and non-slum areas)
1.
1
:
:
Definition of urban poor as specified by the Government of Andhra Pradesh
145
APMDP Operations Manual
8. Total SC & ST population
:
9.
Main economic activities of the ULB :
(Agro-processing / industrial / commercial / education centres / transportation, etc)
10.
Potential areas of economic growth in the ULB
:
(Explain the strengths, opportunities, and constraints)
11.
List the measures taken to stimulate economic growth:
1)
:
12.
2)
:
3)
:
How does the proposed investment contribute to economic growth:
Section 2.
13.
Details of existing/ proposed Roads:
a.
b.
c.
d
d.
14.
15.
16.
Status of Infrastructure
Particulars
WBM Roads
BT Roads
CC Roads
Earthen Roads
Others
Existing ( in kms)
Proposed ( in Kms)
Length of roads in the ULB maintained by
:
a)
Municipality
:
b)
State High ways
:
c)
National High ways
:
d)
Others
:
Length of storm water drains
:
a)
Kutcha drains
:
b)
Pucca drains
:
c).
Incomplete drains
:
Length of roads covered with Water Distribution System
146
:
APMDP Operations Manual
17.
Length of roads covered with Under Ground
Sewerage System
:
18.
Existing critical gaps in the road infrastructure
:
19.
Details for Water Supply:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Source (s) of drinking water
:
(provide details of the sources)
Total water production per day
:
Per capita supply of water at present
:
Per capital water requirement in 2010
:
Status of water distribution system
:
Percentage of water leakage from the system
Percentage of ULB area provided with drinking water:
No of slums with piped water supply
:
percentage of slum area covered with drinking water:
Connections
:
Category
Existing
connections
Proposed new connections
in the ULB
Yr 1
Yr 2
Yr 3
Domestic (non-slum)
Domestic (Slum)
Public Stand Posts
Commercial
Industrial
Others
20.
Existing Critical Gaps in Water Supply
a)
Deficiencies in the Source
b)
Deficiencies in the Trunk lines
c)
Deficiencies in the distribution network
:
:
:
:
21.
Measures proposed to address the gaps:
:
1.
2.
3.
4.
22.
:
Goals proposed to be achieved by 2010
:
a.
source augmentation
:
b.
Percentage reduction of leakage
:
c.
Modernisation of distribution network
:
147
Y4
Total
connections
expected by
2010
APMDP Operations Manual
23.
1.
2.
Replacement of pipeline
Laying of new pipeline
3.
New Connections (Slum / Non-slum) :
4.
Reduction in the number of Public stand posts
Tariff and Deposit
Category
:
:
:
Existing Tariff
Proposed Tariff
Existing
Deposit
Domestic
Commercial
Industrial
Others
24.
c.
Existing Tariff is in force from __________________
d.
Proposed Tariff with effect from _________________
e.
Existing Deposit is in force from__________________
f.
Proposed Deposit with effect from ________________
Details of Solid Waste Management Project:
a)
Waste Generation per day (in Tonnes)
:
b)
Waste Collection per day ( in Tonnes)
:
c)
Is Compost yard/ Land fill available
:
d)
If yes, details thereof
:
e)
Average distance to compost yard from town
:
f)
Conveyance System
:
g)
No. of tricycles
:
h)
No. of tipper lorries
:
i)
No. of Dumber placers
:
j)
Other means of transport
:
k)
No. Bins
:
l)
O & M cost of Vehicle
m)
O & M cost of compost yard
n)
Please specify if ULB has any other Vehicle or equipments:
o)
Public – Private Partnership, if any and details
:
:
148
:
Proposed
deposit
APMDP Operations Manual
25.
Critical Gaps in Solid Waste Management
:
26.
Goals proposed to be achieved by 2010
:
1.
2.
3.
4.
149
APMDP Operations Manual
27.
Under-ground Sewerage System
a.
Connections :
Category
If UG is existing
connections served
Proposed new connections in the
scheme area
Year 1 Year 2 Year 3 Year 4
Total of
Existing and
Projections
Domestic
Non-Slum
Slum Areas
Commercial
Industrial
Others
b.
Tariff and Deposit
Category
:
Existing
Tariff
Proposed
Tariff
Existing
Deposit
Domestic
Commercial
Industrial
Others
c.
Existing Tariff is in force from __________________
d.
Proposed Tariff with effect from _________________
e.
Existing Deposit is in force from__________________
f.
Proposed Deposit with effect from ________________
150
Proposed
Deposit
APMDP Operations Manual
Section 3:
28.
Financial Performance
Financial Performance during the past five years (Rs. in lakhs)
Financial Year
1
Revenue Receipts
I
Ii
Iii
Iv
V
Vi
Vii
Property Tax
Water charges
Professional Tax
Library Cess
Other Taxes
Fees
Assigned Revenues
Viiii
Ix
SFC Devolutions
Education Grant
X
Xi
1
Street Light Maintenance Grant
Other Non-tax Income
Total Revenue Receipts (TRR)
II
Recurrent Expenditure
I
Ii
Iii
Establishment and Administration
Roads and Transportation
Street Lights - Maintenance
Iv
V
Vi
Vii
Viii
Ix
X
II
Total Electricity Charges
Water Supply
Public Health, sanitation and Hygiene
Education
Other Obligatory Services
Sewerage Maintenance
Miscellaneous Expenditure
Total Recurrent Expenditure (TRE)
III
Net Revenue Surplus / Deficit
151
:
APMDP Operations Manual
IV
I
Ii
Iii
Iv
V
Vi
Vii
Viii
Ix
X
Xi
Xii
Xiii
Xiv
Xv
Xvi
Xviii
Xviii
Xix
Xx
Xxi
V
I
Ii
Iii
Iv
V
Vi
Vii
Viii
X
Xi
Xii
V
VI
VII
VIII
Capital Receipts
APUSP
Decentralised Planning grants
11 Finance Commission grants
12 Finance Commission grants
School Building
Drought Relief Fund
Flood Relief Fund
MLA Constituency Fund
MP Constituency Fund
NSDP
SJSRY
City Challenge Fund
IDSMT
ILCS
River Conservation Project
Other Capital grants
Special Grants from the Government
Special grants for roads
Loans from HUDCO for water supply
Contributions from public / NGOs
Any other Income
Total Capital Receipts
Capital Expenditure
Water Supply
Roads and Transport
Street Lights
Storm Water Drainage
Sewage Disposal
Solid Waste Management
Health and Hygiene
Education
Buildings
Sanitation
Miscellaneous
Total Capital Expenditure
Total Receipts (Revenue and Capital)
Total Expenditure (II + V)
% Expenditure / Receipts (VI/V)
% Admin &Establishment (II.i /II)
152
APMDP Operations Manual
IX
Loans and Other Liabilities
I
Ii
Iii
Loans outstanding
Annuity (A = Principal + Interest)
Other Liabilities
29.
Analysis of the financial health of the ULB based on above information :
(Discuss the reasons for increase / decrease in incomes, expenditures, debt servicing, etc in
detail).
30.
Analysis of the above income and expenditure and debt servicing capacity etc (along with
supporting information).
31.
Number of Property Tax assessments
:
Existing
Projection*
Residential
Commercial
Industrial
Other
Total
* If the increase in property tax is more than 10% please state reasons.
32.
AUDIT Up to date – Details
:
33.
Debt as on date (Rs. in lakhs)
:
S.N
Source of Loan
Projec
t
Year
Principal
HUDCO
APUIF
Other
34.Composition of MDC and Working Groups:1. Municipal Development Committee
i.
ii.
iii.
iv.
Sri
Sri
Sri
Sri
153
Interest %
Repayment
Balance
APMDP Operations Manual
v.
vi.
Sri
Sri
Working Group 1
i.
ii.
iii.
iv.
v.
vi.
Sri
Sri
Sri
Sri
Sri
Sri
Working Group 2
i.
ii.
iii.
iv.
v.
vi.
35.
Sri
Sri
Sri
Sri
Sri
Sri
Details of planning and consultative process for arriving at IPP:
MDC and Working Group Meeting Details
Meetings
First
MDC
Orientation on MDP
WG 1
Orientation on
MDP
Second
Third
Fourth
Fifth
36. Planning Process
154
WG 2
Orientation on MDP
APMDP Operations Manual
37.
Preparation of Infrastructure Improvement Plan
(Summary of the process, inputs and outputs) – Enclose a copy of IIP
38.
Municipal Reform Action Plan (MRAP)
(Detail the proposed reforms in the order of priority, time-frame for implementation,
inputs and outputs, performance indicators, as well as achievements to date) –
Enclose a copy of the Reform Action Plan)
39.
Capacity Enhancement Action Plan (CEAP)
(Detail the proposed capacity enhancement measures in the order of priority, timeframe for implementation, inputs and outputs, performance indicators, as well as
achievements to date) – Enclose a copy of the Capacity Enhancement Action Plan)
40.
Approval of MRAP & CEAP:
by the Council (date and resolution No)
by CDMA (date and proceedings No)
41.
42.
Critical gaps in the infrastructure
:
First Priority
:
Second Priority
:
Third Priority
:
Fourth Priority
:
Priority sub-projects for which loan is being sought under APMDP :
(Mention all the works are per priority and the estimated cost of each)
Abstract of infrastructure sub projects
(Rs.in lakhs)
Sector
Water supply
Under ground drainage
Roads
Drains
Solid waste
Parks, play grounds
Total
Required infrastructure
155
Indicative cost
APMDP Operations Manual
Phasing of Projects
Sl.No.
Name of the
Project
Estimated cost
Rs. in lakhs
Year 1
Rationale for the project proposals
:
1
2
3
43.
156
Year 2
Year 3
Year 4
Year 5
APMDP Operations Manual
ANNEXURE 5:
INITIAL SCREENING REPORT
APMDP Operations Manual
Annexure 5: Initial Screening Report
1.ISR on the application of : (Name of ULB)
2.Date of receipt of application:
3. Aggregate Loan / Grant Sought:
4. Existing Debt (as on date)
Overdues (as on date)
(Rs. in lakhs):
(Rs. in lakhs)
Govt :
HUDCO:
JNNURM:
APUIF:
Others:
Total:
:
5. Summary of Key Urban service issues at city level:
a.
b.
c.
6. Summary of Past Financials
(Rs. in lakhs)
1996-97
PARTICULARS
Total Op Revenues (TR)
Total Op Expenditure (TE)
Surplus / Deficit
Annuity
% of TE/TR
DS/TR
1997-98
:
1998-99
1999-00
7. Compliance with Access Criteria:
Access Criteria
ULB has an operating surplus and has borrowing /
investment capacity to meet debt service obligations and
O&M expenses, after accounting for existing debt service
and other operating expenditures.
Audit of municipal accounts is satisfactory (with no
significant unresolved audit issues of the earlier years) and
up to date.
Reform Action Plan
Capacity Enhancement Action Plan (CEAP)
157
Status of Compliance
Reform Areas / Commitments from ULB:
Capacity Enhancement / Commitments from
ULB:
APMDP Operations Manual
8. Tentative (Indicative) List of Priority Sub-projects) and Financing sought:
Sl.
No
1
2
3
4
5
Item of Works
Total project
Cost
Loan
Grant
(all values in Rs. lakhs)
ULB
Contribution
Water Supply
Sewerage
&
Sanitation
Solid
Waste
Management
Urban Roads
Social
Infrastructure
Total
15. Environmental and Social Impacts: The environmental / social risk category of sub-project is
classified as follows: Sub-project 1 – E2 / S2, Sub-project 2 – E1 / S1
Recommendation:
Encl: Initial Project Proposal from ULB
158
APMDP Operations Manual
ANNEXURE 6:
Memorandum of Agreement (MOA)
Between
MSU, Office of C&DMA
And
Municipality and Municipal Corporation
APMDP Operations Manual
Annexure 6: ULB and CDMA/MSU Agreement (MOA)
Sample Memorandum of Agreement (MoA)
ANDHRA PRADESH MUNCIPAL DEVLOPMENT PROJECT (APDMP)
Draft Memorandum of Agreement (MoA)
Between
Project Director, Municipal Strengthening Unit
on behalf of the Commissioner and Director of Municipal Administration Government of
Andhra Pradesh
And
The Urban Local Body represented by the Municipal Commissioner, Bapatla Municipality, Bapatla.
Dated ..............................
THIS AGREEMENT is made on this 27th day of June' 06 between the Project Director, Municipal
Strengthening Unit on behalf of the Commissioner and Director of Municipal Administration,
Municipal Administration and Urban Development Department, Government of .Andhra Pradesh,
Part-1
AND
159
APMDP Operations Manual
The Urban Local Body represented by Sri. S. Siva Rama Krishna. S /o Subba Rao, Municipal
Commissioner, Bapatla Municipality, Bapatla or its authorized person, of the Part II.
WHEREAS the Part II seeks financial assistance under Andhra Pradesh Municipal Development
Project (APDMP)
AND WHEREAS the Part II have undertaken to implement the reform action plan, as per the timeline
indicated therein, fully detailed in Attachment – I along with Capacity Enhancement Action plan
detailed in Attachment – II.
AND WHEREAS the Part I has considered the documents mentioned in Attachment I, II, and found
then consistent with the goals and objectives of APDMP.
NOW THE PARTIES WITNESSED as follows:
1. That the Part I shall recommend for release of the first installment upon signing of the
Memorandum of Agreement (MOA) and submission of the documents i.e., Attachment I & II.
2. That the Part I shall recommend for release of the second, third and final installment upon
submission of satisfactory Progress Report indicating the progress achieved as per the
timeframe agreed for each item in Attachment – I
3. That the Part I or an Institution nominated by it, shall undertake a site visit to ascertain the
progress achieved for the agreed reforms action plan and Capacity Enhancement Action Plan
through designated representatives periodically;
4. That apart from the Progress Report, the Part 11 shall submit a Quarterly Report of the
progress achieved for the agreed reforms action plan and Capacity Enhancement Action Plan
to the Part I. In case Part 11 fails to submit such a report, it will be recommended to withhold
the further installment of loan until such submission;
5. That Part II shall submit a complete report regarding the outcome of the APDMP on the
completion of the project;
6. That the Parties to the agreement have further covenant that in case of a dispute between
the parties the matter will be resolved within the provisions of the Arbitration and
Conciliation Act, 1996 and the rules framed there under and amended from time to time.
7. That in case of delay in implementation of the reforms action plan and Capacity Enhancement
Action Plan or submission of any periodic reports, etc. by the Part 11 due to circumstances
beyond its control i.e., Force Majeure or any other reason, the decision on the matter of
extension of time for the implementation of the goals and objectives of the APURMS Project
shall be at the discretion of Part I.
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8. That in case of any breach regarding the implementation of reforms action plan and Capacity
Enhancement Action Plan of the APMDP Project, the Part I shall be entitled to recommending
for withholding the subsequent installments of grant on giving 30 clays notice to the Part II.
However, the decision taken by Part I will be final and binding on the Part II, though, before
making such orders, opportunity of hearing shall be given to the Part II.
IN WITNESS HEREOF all the parties have put their hands on these presents of Memorandum of
Agreement in the presence of witnesses.
WITTNESSES:
1. _________________________
Project director, Municipal Strengthening Unit
on behalf of the Commissioner & Director of
Municipal Administration. MA & UD Dept.
(Government of Andhra Pradesh) (Part I)
2. _________________________
Municipal Commissioner, Bapatla (Part II)
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Attachment 1: Initial Municipal Reform Action Plan (MRAP)
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Attachment 2: Initial Capacity Enhancement Action Plan (CEAP)
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ANNEXURE-7:
SUBPROJECT PREPARATION PROCESS, DPR GUIDELINES /
CHECKLIST
APMDP Operations Manual
Annexure-7: Subproject Preparation Process, DPR Guidelines / Checklist
1.1
Guidelines for preparation of DPRs:-
The objective behind preparing DPRs is four fold:
1. first choose a feasible option to meet the objectives of desired infrastructure/service
improvements;
2. for the preferred option, to produce detailed engineering designs, drawings and detailed
cost estimates, social and environmental screening and assessments;
3. then, group the works into feasible tender packages, and for such packages, produce Bill of
Quantities (BoQs) and tender documents along with procurement and implementation
plans.
4. Undertake a final assessment on ULB’s finances to bear the cash flows required to
implement the project; and to sustain O&M of the created assets.
While preparing the sub-project and DPRs, the ULB shall apply the Social and Environmental
Assessment and Management Framework contained in the Social and Environmental Manual
for ULBs. Where required, the DPR shall include Resettlement Action Plans (RAPs) and
Environmental Management Plans (EMPs). It shall also include Economic and Financial analyses,
Engineering surveys, Socio-economic surveys, Household surveys, and other relevant surveys
required to support identified sub-projects.
1.2.
The following items should be part of DPR, and will be items of subproject appraisal:
a. Base service levels and the proposed improvements after the project are defined clearly – with
linkages to project output / outcome indicators;
b. For water service improvement, the source should have adequate capacity to provide water for
future, allocations to drinking water are clearly documented;
c. Linkages between infrastructure development and city development plans shall be indicated;
d. Local service improvements proposal should show the linkage with the trunk infrastructure
e. Provisions shall be included to ensure or improve performance of the systems, such as bulk flow
meters, Pressure Reducing/Control Valves; energy efficiency measures, etc..
f. Either in the DPR or by providing linkages to separate reports -- Environmental and Social
Screening, Environmental and Social assessments, Compliance with Environmental mitigation
measures and Resettlement Action Plans shall be indicated;
g. Plan for work execution by contractors at their cost, such as: Compliance with quality control
requirements; Compliance with Environmental Management Plans; Compliance with safety
standards, traffic regulations, establishment of site offices, sanitation arrangements for labor,
security provisions etc.; Addressing site constraints such as removal of utilities, dewatering,
works execution in hard rock/rocky strata, marshy lands or other poor sub-soil conditions, narrow
lanes etc.,
h. Procurement and implementation plan: contract packaging, procurement method and schedule,
responsibilities, implementation schedule,
i. Required implementation capacities shall be assessed and plans for building those capacities shall
be indicated;
j. A TA for Planning and Implementation of sub-projects shall be provided by CDMA to ULBs as
required.
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k. Monitoring plans shall be highlighted – who will oversee implementation progress (ULB itself /
supervision consultant), environmental and social issues, works quality etc; Linkages to State
level service improvement monitoring system shall be provided;
l. O&M plans specifying: preventive maintenance activities, plans to manage crises, availability of
repair facilities; necessary facilities (tools, plants, machinery, vehicles, buildings, computers,
laboratories, software, MIS systems etc), outsourcing plan;
m. O&M and rehabilitation costs; revenue projections if applicable along with cross subsidies and
subsidies required, plans to improve revenues;
n. Required O&M capacity building plan specifying manpower and training required and how to
obtain them.
o. Costs shall be estimated based on latest market rates; which shall include provisions for
contractors’ work execution as per item (B) (h) above, as well as relevant taxes and duties,
insurance provision requirements, contractors’ profit etc.
1.3.
i.
Preparation of DPR, among others, consists of the following activities
Technical/Design: The technical component of the DPR should comprise detailed engineering
designs and drawings for sub-projects. National and International standards shall be followed for
all designs. Costing shall be based on Public Works Department (PWD) Schedule of Rates (SoRs)
and locally available material.
ii. Institutional Assessment: The institutional assessment component should review and evaluate
existing arrangement for operation and maintenance of assets and additional requirement
resulting from proposed investments or alternative means of operating and maintaining the
services. If operation and maintenance is carried out by other agencies, the assessment should
outline the obligations of parties in terms of functions and financial arrangements.
iii. Economic Analysis: Economic analysis should be carried out for all investments under APMDP
with quantitative cost-benefit analyses being carried out for all sub-projects above Rs. 15 crores
and where economic benefits are quantifiable, using standard economic appraisal models
methodologies. Individual sub-projects will be evaluated by either cost-benefit analysis (requiring
a minimum ERR of 12%) or cost effectiveness analysis (applicable to sub-projects with nonquantifiable benefits.
iv. Financial Analysis: The financial assessment methodology should focus on two aspects:
a. Sub-project level financial viability: This would apply to only cost recovery sub-projects (water,
waste-water, solid waste projects) and would see to ascertain sub-project level Net Present Value
(NPV)/Internal Rate of Return (IRR); and
b. Overall ULB Level Financial Sustainability.
1.4.
Hence the scope of financial analyses will cover:
i.
Urban Finance Flows: The Consultant shall carry out an assessment of the ULB sources and
uses of funds including revenues / expenditures / capital inflows / capital expenditures over
the last 3-5 years, from various sources including state and GOI. This may require some
extent of re-casting of the municipal books of accounts / budgets (for correct accounting of
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revenue and capital items), as well as looking at financial flows directly to the ULB as well as
to state level institutions on behalf of the ULB (state water board, etc.).
ii.
Devolutions / State Transfers: The analyses will also include a detailed review of the trends
in devolutions to the ULB from the state / GOI, including predictability of flows, basis for
devolutions, budgeting of such transfers at both the ULB and state level, etc. The
assessment will also cover a detailed analysis of the various intercepts to state devolutions
towards realization of outstanding dues, if any, of the ULB and how these are accounted
for.
iii.
Key Own Revenue and Expenditure drivers: The Consultant shall carry out an analysis of the
key ULB revenue (such as property tax, water charges) and expenditure drivers to
understand the current situation and identify key constraints (financial, legal and
institutional) in enhancing buoyancy of revenues, expenditure management, periodic
revision of rates / tariffs, collection efficiency, etc. and its impact on ULB finances.
iv.
State and Central Plan (Capital) Schemes: The Consultant shall undertake a comprehensive
assessment of various on-going state and GOI funded capital investment schemes being
directly undertaken by the identified ULBs as well as through state level entities (water
boards, slum clearance boards, etc.). This will include overall project cost, financing plan,
analysis of borrowings and debt servicing, other financial commitments (including
contingent liabilities of the state government), current payment arrangements and terms of
debt (interest rates, tenure, security, etc.), cost incurred till date and current status of
implementation. Further, for capital schemes, the study would specifically need to look at
extent of cost recovery, guarantees, debt servicing, cross-subsidies and impact on service
delivery levels of the projects.
v.
ULB Borrowing capacity Analysis / Financial and Operating Plan (FOP): For the identified
ULBs and based on the above, the Consultant shall carry out an ULB-wise assessment of
additional sustainable debt / investments that the ULBs can undertake. It may be
mentioned that the borrowing structure would be on a “general obligation” basis by the
ULBs. Such borrowing capacity analysis will take into account operating surplus, current
levels of year-on-year debt servicing obligations (both explicit debt on ULB’s books as well
as implicit debt), other obligations / liabilities (such un-paid electricity dues) and suitable
debt service coverage ratios for the proposed debt and caps on annual debt servicing as a
percentage of annual revenues. Such borrowing / investment capacity analyses shall
include a “base case” scenario based on current levels of revenues, debt, etc. and
evaluation of various other scenarios taking into account:





Higher levels of tax rates / tariffs
Enhanced levels of state devolutions
Loan / Grant mix
Improved collection efficiencies
Cost efficiencies / savings
In addition to the borrowing capacity analysis above, the output will include a Financial and
Operating Plan (summary financial statements) of both the operating and capital budgets
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for the ULB as a whole over a 10-15 year horizon, including key projected financial
indicators that can be monitored over the period of implementation of GUDP.
vi.
1.5.
Prioritized Sub-projects: The above FOP will also be used a basis for arriving at a prioritized
and sustainable set of sub-projects and so the aforesaid FOP will need to be factor in subproject level capital (based on preliminary engineering estimates) and operating costs as
well as sub-project level revenues as part of the overall ULB’s FOP. This process is expected
to be iterative to extent that the results of the FOP itself may be used to modify the set of
prioritized sub-projects.
Outputs Expected from Financial Assessment
1. Conclusions regarding present financial position of the ULB, including a set of key
financial indicators (operating surplus, debt servicing as a % of revenue / operating
surplus, collection efficiency, etc.), as well as a clear action plan for improvement of
finances over the medium term (5 years);
2. A Financial and Operating Plan (FOP) for the ULB as a whole, including 10-15 year
financial projections separately for both the operating and capital budgets (a capital
investment plan), taking into account also the likely impact of the prioritized subproject proposed to be undertaken over the medium term.
3. Conclusions regarding present financial position of stand-alone water supply and
sewerage operations of the ULB, including key financial indicators over the last 3 years;
4. A 10-year business plan for the water and sewerage operations of the ULB, including
financial projections of operating and capital budgets, tariff analysis under various
scenarios, such that water supply and sewerage operations are able meet O&M
expenses from user charges and begin to meet capital servicing as well over the
medium term (5 years).
5. Reform Action Plan: This task shall also include an action plan containing specific
measures as well as an implementation plan for improving the finances of the city (such
as improving collection efficiency, enhancing the tax base, updating consumer
database, new taxes / tariffs, etc.)
i
Financial Management Systems: The FMS assessment should focus on ULB’s institutional
capacity to handle APDMP sub-projects, which should comprise:
a.
b.
c.
d.
Staffing for sub-project civil work procurement, and fund drawdown and application;
Recording and reporting of sub-project physical and financial progress;
Budgetary provision for APDMP-funded sub-projects; and
Compliance with audit requirement under the project.
ii
Social Assessment: The SEMF for APMDP governs the social assessment of sub-projects and
the assessment should comprise:
a. Screening procedures for reviewing sub-projects in order to classify them as those having high
or medium, or low resettlement impacts;
b. Mechanisms for addressing resettlement issues at different stages of sub-project cycle;
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c. Stakeholder consultations during preparation and involvement of local people during project
implementation;
d. R&R policy identifying likely impacts and entitlement framework for the persons affected by
sub-projects; and
e. Roles and responsibilities of different agencies such as APUIF, ULBs and other government
agencies in addressing resettlement issues.
iii
Environmental Assessment: The SEMF for APMDP governs the environmental assessment of
sub-projects and the assessment should comprise:
a. National, state and local legal requirements on environmental issues that will be applicable to
the urban sector sub-projects;
b. Screening procedures for reviewing sub-projects in order to classify them as those having high
or medium or low environmental impacts;
c. Sub-project cycle and methods to address environmental considerations and assessments at
different stages;
d. Carry out documentation disclosure activities;
e. Public/stakeholder consultation done and approach during project implementation; and
f. Environmental roles, and responsibilities of different Government agencies such as APUIF and
ULBs.
1.6
Social and Environmental safeguards / mitigation plans / management plans / Resettlement
Action Plans will be prepared as the agreed SEMF for APMDP as part of the DPR.
Attachment 1: Checklist for Collection of Data on Solid Waste Management
(A)
Operational Aspects
Generation
1. Information on population for the past five decades. The population tables shall cover:
(a) Area of the city
(b) Total population
(c) Decadal population growth rates
(d) Physical area under slums
(e) Slum population figures
(f) Administrative boundaries for effective SWM
(g) Major source of town/city economy
2.
Current ward wise population and broad land use details covering:
(a) Physical area
(b) Number of households
(c) Population
(d) Break up of slum dwellings & population
(e) Area under slums
(f) Vegetable markets (designated and illegal market areas)
(g) Hotels and restaurants
(h) Commercial and institutional units
(i) Hospitals
(j) Industries
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(k) Workshops
3.
Ward wise waste generation figures with an approximate break up of waste quantities from
residential, markets, commercial/institutional, construction debris and hotels/restaurants
4.
5.
Total Waste received at the dump site
Waste Characteristics with specific details on source of information, sampling location and
sampling procedure
Collection
6. Methods and mode of primary Collection in different neighbourhoods (under the following
categories with specific details on institutional/organizational arrangements and controls):
(a) Collection by Local Body/Municipality
(b) Collection by neighborhood community through residential associations/NGOs
(c) Private sector involvement through Local Body
(d) Any other special arrangements from slum localities
(e) Arrangements for construction and building debris
* for all the above categories provide information on quantity of waste collected, type of waste
collected, Manpower costs involved, inventory of equipment and capital and O&M cost of
equipment use
7.
Norms followed for primary collection and the indicators identified for assessing the
performance standards
8.
9.
Aggregate cost per ton of waste collection
Deficiencies/gap in solid waste collection mechanism and the quantum of un-attended waste
10. Investment requirements (manpower & equipment) to meet the gap
11. In case of community initiatives: details of user fee (apart from property tax) amount per
household/month. Also estimate the extent of total area in the city serviced with the user fee
based structure
12. If the rag pickers are involved in primary collection of waste, what is the modus operandi?
13. Type of road network details with the break up on different types of roads
14. Information on sweepers currently involved in sanitary work, including:
(a)
(b)
(c)
Local body employees (temporary/permanent staff) and costs involved
NGO/Voluntary organization manpower under income generation schemes
Private contracts, percentage coverage and costs
Transportation
15. Transportation (detailed information to be collected as attached):
(a) Type and age of fleet (details like vehicles, compatibility with primary collection) operated
by Local body and costs (with a break up of staff, fuel and O&M) thereof
(b) Private sector and/or involvement of self-help (income generation groups), the
performance parameters for monitoring (type of fleet, coverage, haulage norms etc.) and
quantum of total waste attended through such arrangements and costs thereof
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16. Fleet logistic management and maintenance facility within the local body (provide detail account
of how the transportation routing, vehicle maintenance aspects are managed and institutional
arrangements thereof)
17. What are the deficiencies in transportation? What are the investment requirements:
(a) Fleet upgradation considering the compatibility with the primary collection system
(b) Additional staffing
(c) O&M Costs
18. Is there any transfer station? if so provide the details covering:
(a) Location of the transfer station
(b) Management/organizational structure
(c) Inventory of vehicles and equipment
(d) Total cost of operating the transfer station with detailed break up (staffing, equipment,
O&M etc.)
Treatment
19. Information on Waste Treatment Followed (information in the relevant form as per Table 4 in
Annexure 5):
(e) Technology
(f) Quantity of total waste treated
Disposal
20. Disposal Site:
(a) Type of disposal (if the disposal sites are sanitary landfills provide landfill details)
(b) Methods of monitoring the quantum of waste disposal
(c) Number of sites and their location
(d) Area and physical details of the sites
21. Data on contamination due to un-secured landfill (air, water, soil)
22. Information on PILs on disposal sites
23. What are the ongoing efforts to provide a landfill facility:
(a) Status
(b) Mode of implementation
(c) Financing structure
(d) Private sector involvement
(B) Financial Aspects (covering for five successive financial years)
1. Total Municipal Budget
2. Property tax structure for: residential, commercial, industrial and institutional
3. Total amount of property tax
4. Solid waste management Share in property tax
5. Total cost of municipal staff vs. cost of staff for solid waste management
6. Annual capital cost for Municipal vehicular fleet renovation with a break up for SWM fleet and
other services
7. Break up of cost of SWM (per ton or waste as well as aggregate values):
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APMDP Operations Manual
(a)
(b)
(c)
(d)
(e)
8.
Primary collection of waste
i.
staff costs
ii.
equipment costs (recurring annual capital investments)
iii.
O&M costs for maintaining the equipment
iv.
cost towards private contracts (with information on waste quantity collected)
Secondary Storage:
i.
staff costs
ii.
recurring capital cost of dustbins
iii.
maintenance of dustbins
Transportation:
i.
staff costs
ii.
fuel costs
iii.
cost of O&M
iv.
cost towards private contracts
Treatment costs
Disposal
Break up of quantity of manures and fertilizers procured per annum for horticultural and
maintenance of parks and landscaping and cost thereof
(C) Institutional Set up
1.Organogram
2.Staffing and reporting system
3.Community liaison
4.Contracts to private companies and their management
Table1: Bin to population Ratio
SR.
No.
Ward/Zone
Population
Type of bins
used
No. of bins
provided
Bin/population ratio
Distance
between
the bins
Frequency of
clearance
Table 2: Road length-Sweeper ratio
Sr.
No
Ward/zone
Popul.
Road
length
KM
No. of
sweepers
for street
sweeping
No. of
sweepers
collection
of waste
and picking
up
No. of
sweepers
Total
Table 3: Municipal Solid Waste Transportation Fleet Inventory
Type
Vehicle
Kilometer Workers Zones/wards
Age (yrs.) Travelled
+ Drivers covered
171
Sweeper /
population
ratio
Capacity
Road
length
sweeper
ratio
Mileage
(Km/lit.)
Work
norms
adopted –
road length
per
sweeper
APMDP Operations Manual
Table 4:
Information on Compost Plants2
Other Treatment Technologies-Similar Level of Information to be Provided
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Plant Location
Name of the municipality/Town Authority
Project Proponent
Waste treatment company structure
Project gestation period
Designed plant capacity and range of operational load during different seasons:
(a)
Winter
(b)
Summer
(c)
Monsoon
(a)Plot Area (Ha.)
(b)Plant Area (Ha.) including storage and processing units
Type of waste treated (composite waste or any specific type of waste)
Waste to compost ratio and the quantum of rejects per ton of waste
Does the facility includes landfill site for disposal of the rejects (if so please provide the
basic details such as landfill area, type of disposal capital and O&M cost of the site)
Capital Cost (plant, machinery and civil cost)
Cost of waste segregation facility in the plant (% of total capital cost)
Cost of technology transfer
Land cost
O&M Cost per ton of waste treated at different plant load factors
Waste Collection/transportation Responsibility (if any):
(a)
Mode of transport
(b)
Haulage distance and cost of transport per ton of waste
Royalty charges on waste provided (if any)
Local Body’s role
Financial structuring of the project
(a)Debt : Equity Ratio
(b)Debt provider and broad terms
(c)Equity share by stakeholders
(d)Government subsidy/grant funding (if any)
(e)Concession period
(f)Cost of production per ton of compost
(f)Revenue per ton of compost
(g) Tax benefits
(h)Internal Rate of Return
Compost Marketing
(a) Mode of marketing (including type of marketing network/delivery depots/dealer
arrangements, etc. )
(b) Consumer profile
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21
22
23
24
25
(c) Sale price – ex factory, at bulk delivery points for retailing (provide haulage
distances
(d) Marketing Constraints
(e) Competing products
Post treatment responsibilities
(a) Haulage distance and cost of transporting the compost rejects to landfill site
Public response (support/resistance/NIMBY, etc.)
Constraints (institutional/organizational/financial/nature of waste, etc.)
Technology limitations
Felt need for support
Note: (i) This information may be provided for the plants currently operating as well as plats that are
non functional
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ANNEXURE 8:
APPRAISAL NOTE-SAMPLE TEMPLATE
APMDP Operations Manual
Annexure 8: Appraisal Note-Sample Template
XXXXX CORPORATION
(Improvement to Solid Waste Management Handling)
--------------------------------------------------------------------------------------Sanction of Loan of INR 88.80 lacs.
1. Introduction:
XXX Corporation is incorporated under the …..Act and is located in YYY District. The population of
the town as per 2001 Census is 6,97,088 . The town is spread over an area of 91 Sq.Kms and is
mainly a trading center. The Municipality has approached APP FI for a loan of INR 88.80 lacs for
implementation of solid waste management program.
The debt status, demand – supply situation, the project viability, implementation schedules and risk
factors are summarized below. The summary ends with the appropriateness of this project with
reference to APP FI ’s exposure norms / lending policies and procedures. The special conditions to be
imposed on the Corporation for sanction of this loan is also attached.
Summary information on the project can be seen in Annexure I .
2. Debt Status:
XXX Corporation has a total debt of INR 2228.82 lacs (FI I – INR 261.01 lacs, GoAP loan INR
1290.83 lacs, IUDP loan INR 266.84 lacs and APP FI loan INR. 410.12 lacs) as on 31.03.2001. XXX
Corporation is in the process of submitting loan application for its proposed water supply project at a
cost of Rs.24.84 Crores. The likely loan for this project is 20.84 Crores. The repayment obligation on
this is expected to start from 2004-05 and has been considered while projecting the financials of
the Corporation. There are no loan arrears of APP FI loans. The analysis of the debt-service ratios
reveal that the current surpluses provide adequate safety for future repayment after loans for the
proposed project are factored in.
The total revenue receipts have increased from INR 2840.60 lacs in 1996-97 to INR 3160.02 lacs in
2000-2001, registering a compounded annual growth rate of 3 % p.a. The major items of revenue
receipts include property tax and professional tax amounting to INR 645.16 lacs (20.40 % of the total
income), taxes collected by other agencies such as duty on transfer of property amounting to INR
714.23 lacs (22.60 % of the total income), Income from special services and other receipts (other
than SFC devolution )contributed INR 797.49 lacs. The total revenue expenditure for the year 200001 amounted to INR 2337.11 lacs. The expenditure incurred towards payment of salary for all the
employees (including water supply) amounted to INR. 1788.15 lacs ( 73.51%). The expenditure
under the head obligatory services, sanitation, medical relief and pubic works were to the tune of
INR.354.43 lacs (15.16 % of total expenditure). The ratio of TE/TR and DS/TR for the year 2000-01
were 0.79 and 0.05 respectively which are satisfactory.
The SFC devolution during the year 2000-01 was INR. 1002.12 lacs and tenth finance commission
grant was INR. 116.95 lacs. The revenue receipts for the year 2004-05 is projected at INR 5246.73
lacs and expenditure for the same period is projected at INR 3425.76 lacs. Revision of property tax
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APMDP Operations Manual
to be effected every fifth year has been factored in the projection. As such the projected DSCR is
satisfactory.
The Corporation has to pay around INR 381.19 lacs as annuity on the loan outstanding in its books.
The annuity payable for the proposed loan works out to INR 14.82 lacs. The Municipality’s debt
service capacity can be seen in Annexure II and is satisfactory.
The Corporation has changed the accounting method from cash system to accrual system from
1999-2000. For comparison purposes and to study the trend in the growth of the income and
expenditure, the salary and other expenses are separated for each head of expenditure for the
F.Y.1996-97 to 1998-99. In respect of F.Y.1999-2000 and 2000-01 the accounting heads in the trial
balance are regrouped in line with the heads of expenses as per the old accounting books. The
observation is that greater care has been taken in classification of revenue and capital items. Since
the Balance Sheet schedules does not show the movement in the capital account the actual
capital receipt and expenditure are not ascertainable. Hence the net figure is shown in the
workings.
3. Demand and Supply:
The Corporation generates 400Mts.of garbage daily. The conservancy operations covers 496 kms.
of roads. The Corporation has sufficient fleet of conservancy vehicles to transport the waste to the
dumping yard. At present solid waste is handled manually by the staff, which results in more labor
hours for loading and unloading of solid waste thereby increasing the cost of operations. Hence
Salem Corporation has decided to buy 72 steel containers and 6 dumper placers for mechanical
handling of the solid waste. As part of it efforts to implement source segregation of solid waste the
Corporations plans to buy wheel barrows and molded plastic containers to be placed in all the 60
wards. With this the present average distance between bins will be brought down.
4. Contracting Procedure
The suppliers and contractor(s) for undertaking the implementation of the schemes would be
selected by the local body by following the procurement guidelines of Bank with assistance and
approval of MSU. The local body would issue the tender notification after obtaining necessary
clearances from MSU. The contract agreement would adhere to the World Bank format and would
address all World Bank formats.
5. Cost Benefit Analysis:
The expenditure on public health in the municipality is around Rs.1.96 Crores per year. The efficient
disposal of municipal solid waste through the proposed purchase of dumper placers, containers and
bins will lead to a reduction in accumulation of the waste and thereby result in a reduction of public
health hazards. Indicative analysis of the cost benefits clearly establish an ERR exceeding 12%.
At present the Corporation is handling the Municipal Solid Waste manually and with huge labor cost.
With the implementation of this project the Corporation will be in a position to introduce source
segregation of Municipal Solid waste into degradable and non degradable at source and will facilitate
the private sector participation in composting. Salem Corporation is in process of identifying a BOT
operator for MSW composting. Once the BOT operator is in place, the Corporation will save
significant space in the dumping yard for future landfill requirements. The above mechanization of
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APMDP Operations Manual
MSW handling will result in savings of Rs.24.00 lacs a year on account of salary to sanitary staff. The
Corporation will be able to recover the investment in 6 years.
6. Means of Finance
The means of finance are as follows:
Total Project Cost
APUIF Loan
Grant (GoAP)
Own Contribution
: Rs.
: Rs.
: Rs.
: Rs.
148.00
88.80
44.40
14.80
lacs.
lacs.
lacs.
lacs
7. Grant Finance
The Grant applications submitted by the Corporation for sanction of Grant for the above project was
examined as per G.O. Ms.No.with G.O.Ms. No xx dept. dated 3.2.1997 and G.O.Ms.No.61 dated
16.03.2001. The Municipality is to satisfy the following conditions to be eligible for sanction of Grant.
For Bus Stand, Commercial projects and other revenue earning schemes financial assistance under
the Grand Fund will be subject to the following conditions:
(i) The financial resource of the Local Bodies and financial assistance given by Government
should be in the ratio of 3:1
(ii) 80% of property tax should have been collected in the past three years prior to the project
investment year.
(iii) The local body should have repaid all loan dues for two years prior to the project investment
year.
For basic Services such as water supply, sewerage removal, Roads, streetlights, solid waste
management grant assistance will be available if more than 30% of project beneficiaries are people
living below the poverty line.
In case of xxx Corporation solid waste management project, it benefits more than 30% of the
people living below poverty line, and hence the Corporation is eligible for project grant. As per
the guidelines in respect of projects costing less than Rs.10 crores, project grant equivalent to 30% of
the project cost can be sanctioned. Accordingly in this case the maximum grant works out to Rs.
44.40 lacs. (30% of 148.00 lacs.).
8.
Institutional Capacity to Implement the Project:
a) APP FI has undertaken an assessment of the adequacy of internal controls. The systems
provide for accurate and timely reports of the accounts (sources and uses of funds) of the
project and the physical performance of the project. The ULB has been furnished with copy
of format and guidelines on the project management reports.
b) The Municipality will adopt the procurement guidelines of IBRD. The Municipality based on the
recommendations of APP FI would select the contractors and suppliers. The Corporation
would follow relevant formats for selection of contractors for works.
176
APMDP Operations Manual
9.
Implementation Schedule:
Implementation schedule would consist of the following:
a. Obtaining Administrative and Technical Sanction. ( obtained )
b. Tender notification and receipt of bids.
c. Evaluation of bids followed by award of work order.
d. Supply and installation.
The project execution period is 12 months.
10.
Risks and Uncertainties:
The main project risk anticipated is that of delay in implementation. APP FI has stipulated that the
local body would on its own make necessary arrangements to meet the additional fund requirements
on account of time and cost overruns. The normal financial risk is not achieving projected financial
indicators will not seriously affect the repayment as the current surplus is adequate to cover the loan
/ interest repayments of the proposed loan.
11.
Environmental and Social impacts:
As per APP FI's ESR norms, deployment of more than 5 vehicles (dumper placers) for solid waste
management are Environmentally categorized as E2. The Municipality has to implement the
Environment Management Plan which is as follows:
Type of Project
Procurement and operation
of Compost Vehicles
12.
Environmental
Issue
 Air quality,
Public Nuisance
Environment Management Plan
Procurement Phase
O & M Phase
 Conform to
 Ensure pollution
IS12402:1988 for
checks
mobile containers
 Ensure proper
of solid waste
coverage with
tarpaulins/fishnet/
metallic cover while
transporting solid
waste
Recommendations.
The total exposure of APP FI to xxx Corporation including the present loan would be INR.7.59 crores,
which is 3.83 % of APP FI ’s net-worth. Hence, it is recommended that APP FI may sanction a loan of
INR.88.80 lacs to xxx Corporation as per main terms and conditions stipulated below:
General
Rate of Interest
Repayment
Security
The Municipality should enter into agreement
with APP FI
xx% p.a.
Principal moratorium – 5 year
Interest moratorium - nil
Repayment period - 15 years
Frequency of Installments – yearly
Escrow account mechanism on own sources of
177
APMDP Operations Manual
Pre-disbursement conditions
Disbursement conditions
Other Conditions
revenue such as property tax, professional tax,
fee and other income etc will be enforced.
1. Necessary statutory approvals including
council resolution and administrative /
technical sanction from Government should
be obtained by Municipality.
2. Approval of bidding process / tender
documents by APP FI .
3. Approval of specification by APP FI and other
statutory authorities before purchase of
vehicles. ( dumper placers )
4. Opening an escrow account for own sources
of revenue such as property tax, professional
tax, fee and other income etc with a
scheduled commercial bank or bank
acceptable to APP FI . The terms and
conditions of the operation of the escrow
account will be as specified by APP FI and
covered in a tripartite contract between the
banker, the Municipality and the APPFI
The Corporation to bring 10% contribution before
the release of final installment.
1. Selection of contractors and procurement of
plant and machinery / instruments should
follow the existing IBRD guidelines and would
need appropriate sanctions from statutory
authorities.
The Corporation would
undertake the selection of contractors /
suppliers only after APP FI approves the
selection procedure.
2. The Corporation undertakes to provide
quarterly progress reports and utilisation of
funds (SOE) during the procurement in the
format prescribed by APP FI .
3. APP FI reserves the right to inspect the
vehicle and its accessories any time during
the procurement process and provide
suggestions for incorporation in the
procurement, if APP FI deems fit.
4. The Corporation undertakes to meet any cost
overrun from its own sources on account of
delay in procurement of the vehicles or due
to increase in prices of materials / labor.
5. The project is to be implemented according
to the environmental and social guidelines
prescribed in APP FI ’s Environment and
Social Report ( ESR )
.
6. The Corporation would undertake not to
avail of fresh loans from any other agency
during the tenure of APP FI ’s loan without
obtaining written approval from APP FI .
7. The Corporation has to hypothecate the
vehicles in favour of APP FI and to get
endorsement in the RC book from the
concerned RTO.
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APMDP Operations Manual
Loan Summary
1.
2.
3.
4.
5..
Borrower
: XXX Corporation
Project
: Procurement of dumper placers, steel containers and
molded polythene containers with wheel boroughs for
solid waste management.
Cost Estimates (Rs.in lacs)
: 148.00 lacs.
Financing Plan (Rs. in lacs)
: 1. APUIF loan
2. Grant ( GoAP )
3. Own contribution - 14.80
Terms of Loan
: 14.50% p.a.,
Principal Moratorium 5 year
Interest moratorium – nil
15 annual installments
Tenor of loan : 20 years.
6.
ESR Status
: E2/S3
7.
FRR & ERR, if applicable
: FRR NA ERR > 12%
8.
Debt status (without
proposed Loan)
: INR 2228.80 lacs
Exposure to APUIF
(including proposed loan)
: 3.83 %
Financial Ratios (for 1999-00)
(a) Total Expenditure
:
TE
9.
10.
Required
<1
Rs. in lacs
88.80
- 44.40
Actual
0.79
_____________________________________999_________________________________________
Total Revenue
TR
(b) Debt service (Interest+Principal)
<0.3
0.05
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------TR
(C) DSCR: Net Revenue
27.64
---------------------------------------------------------------------------------------------------------------------Debt service (Interest +Principal)
11.
Implementation timetable
179
APMDP Operations Manual
(from the date of loan
approval)
12.
: Finalisation of contract &
Award of contract - 2 month
Procurement / construction - 10
Other critical issues
: Opening of Escrow account
Name of the project
1.
2.
3.
4.
: Solid Waste Management
Purchase of dumper placers : 6 nos.
Steel Containers for garbage collection : 72 nos.
Moulded plastic containers
: 900 nos.
Purchase of Wheel boroughs
: 900 nos.
----------
Means of financing (Rs. in lacs)
APUIF – Loan
Grant ( GoAP )
Own funds
Others
Total
88.80
44.40
14.80
Nil
148.00
180
months
ANNEXURE 9:
MODEL LOAN/GRANT SANCTION LETTER
Annexure 9: Model Loan/Grant Sanction Letter
Letter No……..
To
The Commissioner,
Xxxx urban local Body,
Date
Dear Sir / Madam,
Ref:- Application for financial assistance.
Please refer to your application and the subsequent correspondence and discussions your
representatives had with us regarding financial assistance for [NAME OF THE PROJECTS] in your
Urban Local Body area. We are agreeable, to provide the Urban Local Body the following financial
assistance:
Rupee term loan not exceeding Rs xxx.xx lacs
(Rupees ……………………………….only)
Rupee Grant not exceeding Rs xxx.xx lacs
(Rupees ……………………………….only)
1.
2.
3.
4.
5.
The Loan is subject to the special terms and conditions set out in Annexure-I of this letter.
The Urban Local Body shall enter into a Funding Agreement with TRUST. Draft of the Rupee
Loan Agreement covering the above assistance would be forwarded to the Urban Local Body
by TRUST after the Urban Local Body has accepted the terms and conditions of this Letter of
Intent.
In case the above tentative terms and conditions are acceptable, please furnish within 30
days from the date of receipt of this letter two certified copies of the resolutions to this office
duly passed by the council of your Urban Local Body.
Please note that this communication should not be construed as giving raise to any binding
obligation on the part of TRUST unless the Urban Local Body communicates to TRUST within
30 days from the date of receipt of this letter that the terms and conditions set out herein are
acceptable to it and unless the Rupee Loan Agreement and other documents relating to the
above assistance are executed by the Urban Local Body in such form as may be required by
TRUST within 3 months from the date of this letter or such further time as may be allowed
by TRUST in its absolute discretion.
Please acknowledge receipt of this letter.
Yours faithfully,
Secretary, APUIF
Cc:
Commissioner and Director of Municipal Administration, GOAP.
181
Attachment
Sample format for Council Resolution
…………….. Municipality
Council Resolution
Preamble:
In the C.R.No……, dt……….. the following works were approved to be taken up under APDMP Project
Amount in Rupees
S.No. Name of the work
Value
considered
for Project
Loan from
APUIF
Grant from
APUIF
ULB Share
Council Resolution No.:
Dt……….
Resolved to avail the loan amount of Rs…… from APUIF as per terms and conditions
stipulated by APUIF towards implementation of the above works under APURMS Project and that the
Commissioner be and is hereby authorised to enter into necessary agreements and sign the related
documents on behalf of the council and is also authorised to effect repayment/payment of the loan
and interest to APUIF after payment of electrical charges. The council also resolves to contribute as
its share of the costs.
Sd/Chairperson,
……………. Municipality
182
ANNEXURE 10:
MODEL SUB-LOAN/GRANT AGREEMENT
Annexure 10: Model Sub-Loan/Grant Agreement
AGREEMENT NO. - APMDP/TDR/00012/2009
AGREEMENT TEMPLATE
BETWEEN
ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
AND
TANDUR MUNICIPALITY (TM)
FOR
FUNDING
“PROVIDING WATER SUPPLY FACILITIES AND CONSTRCTION OF CC
ROADS”
PROJECT FROM THE
APMDP FUNDS
183
RS 100 STAMP PAPER
FUNDING AMOUNT: Rs. 121.53 Lakhs of including Rs.104.21 Lakhs as Loan.
THIS AGREEMENT executed at Hyderabad on this _______day of Two thousand and Nine.
BETWEEN
(1) Andhra Pradesh Urban Infrastructure Fund ……*to be filled in+., represented by its Secretary,
hereinafter also referred to as ‘Corporation’, which expression shall, unless it be repugnant to the
subject or context thereof, include its successors, administrators and assignees of the ONE PART;
AND
Tandur
Municipality,
a
statutory
body
constituted
under
the_____________________________________,
having
its
office
at_______________________________________Tandur. Represented by its Commissioner,
hereinafter referred to as TM and unless it be repugnant to the subject or context thereof, include its
successors-in-interest and administrators of the OTHER PART;
WHEREAS
1.
Government of Andhra Pradesh for the purpose of funding Infrastructure Projects in the
State of Andhra Pradesh, (“Andhra Pradesh”) undertaken by Urban Local Bodies /
Statutory Bodies / Public Sector Undertakings/ Private Investors has set up the
“ANDHRA PRADESH URBAN INFRASTRUCTURE FUND” (“APUIF”), a Trust within the
meaning of the Indian Trusts Act, 1882, duly constituted by the Trust Indenture dated
23 February, 2005 (“the Trust Deed”) registered as document No.83 of Bk IV/2005 in
the Office of the Registrar, Hyderabad.
2.
Government of Andhra Pradesh, the Settlor of APUIF, has constituted the Board of
Trustees and appointed itself as the TRUSTEE of the APUIF in accordance with the
provisions of G.O Ms. No. 72MA dated 18-02-2005 of MA&UD Department.
184
3.
To ensure that the APUIF receives relevant professional and experienced advice and the
expertise in project financing and fund management, the TRUSTEE has entered into a
Management Agreement dated 20 April 2005 (the Management Agreement) with
Corporation, for purposes, inter alia, of appointing Corporation as the fund manager to
manage the Trust Fund and providing, inter alia, for the utilization of the Central and
State Government Contribution under various schemes by Corporation. Consequently
this Agreement is now being entered into by Corporation on behalf of APUIF.
4.
In accordance with the guidelines of GOAP Contribution are to be utilized by
Corporation for purposes, inter alia, of providing financial assistance to Urban Local
Bodies (as defined hereinafter) in Andhra Pradesh for carrying out urban infrastructure
subprojects and activities.
5.
The TM has requested Corporation to provide financial assistance out of the State
Government Contribution for the purposes of financing the project described in
Schedule 1 of this Agreement [Sub project].
6.
Corporation has accepted the Recipient’s request and has agreed, in accordance with
the provisions of the APURMSP, to fund the Recipient out of the proceeds of the Central
and State Government Contribution upon terms and conditions set forth in this
Agreement and in accordance with the financing plan as detailed in schedule 2 to this
agreement.
185
NOW THEREFORE THIS AGREEMENT WITNESSETH AS FOLLOWS:
In pursuance of the above said premises the parties mutually covenant as follows:ARTICLE –I:
DEFINITIONS
Section 1.1
Unless the context otherwise requires, the several terms defined in the Preamble to
this Agreement have the respective meanings therein set forth and the following additional terms
have the following meanings:
a)
“Accrual Period” means a financial year beginning April 1 and ending March 31 of the following
year or part period thereof ending on March 31.
b)
“Auditors” means any independent auditor(s) viz. one or more firms of chartered accountant(s)
appointed by the Corporation from time to time.
c)
“Business Day” means the day on which the registered office of the Corporation is open for
business.
d)
“Completion Date” means the date by which the TM is required to complete the Subproject,
as set out in Schedule-9 to this Agreement.
e)
“Consent” means all authorization, consents, licenses, permits, waiver, privileges,
acknowledgements, agreements, concessions, approvals from and filings with or applications
submitted to any Government Agency or any Person.
f)
“Directives” means any present or future policy, requirement, instruction, direction, order,
regulation or rule of any government Agency which is legally binding or which would customarily be
observed by a reasonable and prudent person, and any modification, extension or replacement
thereof from time to time in force.
g)
“Financing Plan” means the plan dated _______________of the TM, which provides for, inter
alia, the sources and utilization of finances for the implementation of Subproject as set out in
Schedule 2 of this Agreement;
h)
"GOAP" means the Government of Andhra Pradesh, as represented by the Secretary,
Municipal Administration and Urban Development Department, having its administrative
headquarters at the A.P. Secretariat, Hyderabad – 500 022 or any other representative and its
successors and assignors;
i)
“Subproject Cost” means the total cost of the Subproject as set out in Schedule 1 of this
Agreement;
j)
“Procurement Plan” means GOAP procurement plan containing the Guidelines for
implementation.
186
Project
Section 1.2:
Interpretation and Construction:
a. The Words: “thereof”, “herein”, “hereto”, “hereby” and “hereunder” refer to this entire
Agreement.
b. Every “request”, “requisition”, “order” “demand” “application”, “direction”, “notice”,
“statement”, “certificate”, “consent”, or similar action hereunder shall, unless the form there
of is specifically provided be in writing and shall be signed by an authorized representative in
the case of the TM and by representative of Corporation in the case of Corporation.
c.
All words and terms importing the singular number shall where the context requires import
the plural number and vice versa.
d. Words importing the masculine gender shall include female and neutral Gender.
e. The headings and sub-headings to this Agreement are inserted only for reference to the
provisions hereof and shall not affect the construction of such provisions.
ARTICLE - II
2
TERMS OF DISBURSEMENT:
2.1
The Corporation agrees to fund the TM of an amount equal to Rs.1,21,53,763/- (Rupees One
Crore Twenty One Lakhs and Fifty Three thousands Seven Hundred and Sixty Three only) out
of which Rs.1,04,21,793 /- (Rupees One Crore Four Lakhs Twenty One Thousands Seven
Hundred and Ninety Three only) as Loan on the terms and conditions set forth in this
Agreement,
Special Account
(a) (i)
The Recipient shall open and maintain a special account in a scheduled Bank
acceptable to the Corporation, including appropriate protection against set-off, seizures
and attachment.
(ii)
Disbursements made by Corporation from APURMSP funds shall be deposited
by the Recipient into the Special Account.
(iii)
Payments from the Special Account shall be made only in respect of
expenditures for goods, works and services required for financing of the Subproject.
(iv)
Recipient shall maintain all records and documents in respect of the entries on
the Special Account and shall furnish all such records and documents for verification by
the Corporation, as requested from time to time.
(v)
The Recipient shall also authorize the scheduled bank where the Special
Account is maintained to furnish to the Corporation, as and when requested by it, a
certified true copy of the said account together with all necessary details and online
access to view such account all at the expense of the TM.
187
(b) All disbursements by the Corporation shall be made through inter-bank
transfers/authorizations/cheques, collection and remittance charges in respect of which
shall be borne by the TM.
2.2
Interest:
a) The TM shall pay to the Corporation for depositing into APURMSP funds, interest on
the principal amount of the Funds disbursed from time to time at the rate and on the
dates as indicated in Schedule 4 of this Agreement. The interest on the Funds disbursed
shall accrue from the date of authorization /cheque issued by the Corporation to TM.
b) All interest on the Funds disbursed and or all other monies accruing due under this
Agreement shall, in case they are not paid on the respective due dates, carry additional
interest and / or penal interest at the applicable rate under this agreement.. Such interest
will be computed from the respective due dates and shall become payable upon the
footing of compound interest with quarterly rests as provided in this agreement and shall
be payable in the manner and on the dates specified in Schedule 5 of this Agreement as
amended from time to time.
2.3
Costs and Charges:
a) The Recipient shall during the currency of the Funds disbursed bear all such imports,
duties and taxes (including interest and other taxes, if any) as may be levied from time to
time by the Government or other authority pertaining to or in respect of the Funds
disbursed
b) The TM shall pay all other costs, charges, including cost of investigation of title to the
TM’s properties and protection of the Corporation’s interests, and expenses in anyway
incurred by the Corporation and such additional stamp duty, other duties, taxes charges
and other penalties if and when the TM is required to pay according to the laws for the
time being in force in the State in which its properties are situated or otherwise.
c) In the event of the Recipient failing to pay the monies referred to in sub-clauses (a)
and (b), the Corporation will be at liberty (but shall not be obliged) to pay the same. The
TM shall reimburse all such sums paid by the Corporation in accordance with the
provisions contained herein.
d) TM shall ensure that any concessions/exemptions claimed by the contractors
regarding any statutory payments are not for the benefit of the contractors.
2.4
Repayment:
a) The TM undertakes to repay to the Corporation the principal amount (s) of the Funds
disbursed together with interest thereon in accordance with the Amortization Schedule
given in Schedule 5 of this Agreement as may be amended from time to time.
188
b) The Corporation may, in suitable circumstances, revise, vary or postpone the
repayment of the principal amounts of the Funds disbursed or the balance outstanding for
the time being or any instalment(s) of the said principal amounts of the Funds disbursed
or any part thereof upon such terms and conditions as may be decided solely by the
Corporation.
c) In the event of any default in the payment of instalments of principal, any interest,
and liquidated damages, postponement, if any, allowed by the Corporation shall be at the
rate of interest as may be stipulated by the Corporation at the time of postponement.
d) If, for any reason, the amount finally disbursed by the Corporation out of the Funds
disbursed Account is less than the amount of the Funds agreed, the repayment of the
Funds disbursed shall stand modified accordingly, but shall be payable on the due dates as
specified in the Amortization Schedule set forth in Schedule 5 of this Agreement as
amended from time to time.
e) Notwithstanding any other provision of this Agreement, the TM agrees that the Funds
disbursed shall be repayable on a demand being made by the Corporation at any time.
2.5
Computation of Interest and Other Charges:
Interest and all other charges shall accrue from day to day and shall be computed on the
basis of 365 days year and the actual number of days elapsed.
2.6
Adjustment of Overdue:
The Corporation may deduct from sums to be disbursed by it to the TM any monies then
remaining due and payable by the TM to the Corporation.
2.7
Acceleration of Repayment by the Corporation:
If any of the following events shall occur and shall continue for the period specified below,
then at any subsequent time during the continuance thereof, the Corporation, at its
option, by notice to the TM, declare the principal amount of the Funds disbursed then
outstanding to be due and payable immediately together with the interest thereon and
other charges upon such declaration such principal, together with the interest thereon
and other charges, shall become due and payable immediately:
(a)
A default occurs in the payment of the principal required under this
Agreement.
(b)
A default occurs in the payment of the interest or any other payment required
under this Agreement and such default continues for a period of thirty (30) days.
(c)
A default occurs in the performance of any other obligation on the part of the
TM and such default shall continue for a period of 30 (thirty) days after notice thereof
shall have been given by the Corporation to the TM.
189
(d)
The TM has become unable to pay its debts as they mature or any action or
proceeding shall have been by the TM or by others whereby any of the assets of the TM
shall or may be distributed among its creditors.
(e)
Any action has been taken for the dissolution, disestablishment or suspension
of operations of the TM.
(f)
The TM have ceased to exist in the same legal form as that prevailing as of the
date of this Agreement.
(g)
Any information given by the TM in its application for the Funds disbursed or in
the reports and other information furnished by the TM under this Agreement or the
warranties given / deemed to have been given by the TM to the Corporation shall be
found to be misleading or incorrect or contradictory in any material respect.
(h)
The TM has failed to adequately insure the properties and assets offered to the
Corporation as security for the Funds disbursed or such properties and assets shall have
depreciated in value to such an extent that, in the opinion of the Corporation, further
security to the satisfaction of the Corporation shall have been given and despite notice
from the Corporation, the TM shall have failed to furnish such additional security.
(i)
Without the prior approval of the Corporation, the TM has sold, disposed of,
charged, encumbered, or alienated any land, buildings, structures, machinery, plant or
other equipment or such buildings, structures, machinery, plant or other equipment have
been removed, pulled down or demolished.
(j) The other financial institution(s) or bank(s) with whom the TM has entered into
agreements for financial assistance have refused to disburse its / their loan(s) or any part
thereof or have recalled its / their loan(s) under their respective loan agreement(s) with
the TM
(k)
An extraordinary circumstance has occurred which make it improbable for the
Subproject to be carried out or for the TM to fulfil its obligations under this Agreement.
2.8.
Without prejudice to the provisions of Section 2.7 above, if any of the events specified in
the said Section shall have occurred then the Corporation shall have the right to:
(a) enter upon and take possession of the assets of the TM; and
(b)
transfer the assets of the TM by way of lease or sale.
190
2.9.
Expenses of Preservation of Assets of TM and of Collection:
All expenses incurred by the Corporation after an event of default set out in paragraph 2.7
above in connection with:
i) preservation of the TM’s assets (whether then or thereafter existing); and
ii) collection of amounts due under this Agreement,
shall be payable by the TM.
2.10
Premature Repayment:
The TM shall not prepay the outstanding principal amounts of the Funds disbursed/s in
full or in part, before the dates set out in Schedule 5 to this Agreement as amended from
time to time, except with the prior written approval of the Corporation.
2.11 Due Date of Payment:
If the due date in respect of any instalment of principal, interest and liquidated damages
and all other monies payable under this Agreement falls on a Sunday or a day which is a
bank holiday at the place where the payment is to be made, the immediately preceding
working day shall be the due date for such payment.
2.12
Liquidated Damages on Defaulted Amounts:
In case of default in payment of instalment of principal, interest and all other monies
(except liquidated damages) on their respective due dates, the TM shall pay on the
defaulted amounts, liquidated damages as indicated in Schedule 4 to this Agreement for
the period of default. Liquidated damages shall be payable in the manner and on the
dates as specified in this Agreement for payment of interest.
2.13
Reimbursement of Expenses:
a) The TM shall reimburse all sums paid by the Corporation under the terms of this
Agreement within 30 days from the date of notice of demand from the Corporation. All
such sums shall be debited to the ‘Funds disbursed and Grant Account’ and shall carry
interest from the date of payment till such reimbursement at the applicable rate for the
loan.
b) In case of default in making such reimbursement within 30 days from the date of
notice of demand, the TM shall also pay on the defaulted amounts, liquidated damages as
indicated in Schedule 4 to this Agreement from the expiry of 30 days from the date of
notice of demand till reimbursement in accordance with this agreement.
191
2.14 Appropriation of Payment:
a) Unless otherwise agreed by the Corporation, any payments due and payable under
this Agreement and made by the TM shall be appropriated towards such dues in the
following order, viz.,
i)
Premium on prepayment;
ii)
Interest on costs, charges, expenses and other monies;
iii)
Penal interest and all liquidated damages on defaulted amounts payable in
terms of this Agreement;
iv)
Interest, including additional interest, payable in terms of this Agreement;
v)
Costs, charges, expenses and other monies;
vi)
Repayment of instalments of principal due and payable under this Agreement.
b) Notwithstanding anything contained in sub-clause (a) hereinabove, the Corporation
may, in its sole discretion, appropriate such payments towards the dues, if any, payable
by the TM in respect of other loan (s) availed of by the TM from the Corporation in the
order specified in the relative Agreements.
2.15 Place and Mode of Payment and Credit therefore:
All monies payable by the TM to the Corporation shall be paid to the Corporation in the
Bank account of the Corporation as described in the Schedule -8 of this Agreement, as
amended from time to time and shall be so paid as to enable the Corporation realise, at
par, the amount on or before the respective due dates.
OR
Credit for all payments by local cheque/pay order will be given on the Corporation’s
immediate next business day after the date of receipt of the instrument or the respective
due date or the date of realisation, whichever is later.
Credit for all payments by outstation cheque or bank draft will be given only on realisation
or on the respective due date, whichever is later.
2.16.
Notwithstanding anything contained in the Agreement and for the purpose of clarity, it is
clarified that all the payments to be made by Municipality relating to the Loan like
repayment of loan amounts, interest, costs and charges, liquidated damages etc. shall be
deposited only in the APURMSP Fund Account maintained by the Corporation in Bank as
detailed in Schedule 8.”
192
ARTICLE III.
EXECUTION OF THE INVESTMENT SUBPROJECT
3.1
The TM declares its commitment to the objectives of the Subproject and, to this end,
shall carry out the Subproject with due diligence and efficiency and in conformity with
appropriate administrative, financial, engineering practices, and environmental and social
standards, and shall provide, or cause to be provided, promptly as needed, the funds,
facilities, services and other resources required for the Subproject.
3.2
Without limitation upon the provisions of Section 3.1 above of this Article III and except
as the Corporation and the TM shall otherwise agree, the TM shall carry out the
Subproject in accordance with the Implementation Program set out in the Schedule 6 of
this Agreement.
3.3
Except as the Corporation shall otherwise agree, procurement of goods, works and
services required for the Subproject shall be governed by the provisions of Schedule 7 of
this Agreement, and the said provisions may be further elaborated in the Procurement
Plan.
ARTICLE IV
4.1
SECURITY
Security for the Funds disbursed:
The Funds disbursed together with all interest, liquidated damages, premia on
prepayment or on redemption, costs, expenses and other monies whatsoever stipulated
in this Agreement may be secured by an exclusive charge by way of hypothecation by the
TM in favour of the Corporation of its immovable and movable assets more fully
described in Schedule 8 to this Agreement.
4.2
Creation of Additional Security:
If, at any time during the subsistence of this Agreement, the Corporation is of the opinion
that the security provided by the TM has become inadequate to cover the balance of the
Funds disbursed then outstanding, then, on the Corporation advising the TM to that
effect, the TM shall provide and furnish to the Corporation, to the satisfaction of the
Corporation such additional security as may be acceptable to the Corporation to cover
such deficiency.
ARTICLE V
5.
: TM’S WARRANTIES:
Except to the extent already disclosed in writing by the TM to the Corporation, the TM shall
be deemed to have assured, confirmed and undertaken as follows:
DUE PAYMENT OF PUBLIC AND OTHER DEMANDS:-
193
The TM is not in arrears of any dues to the State or Central Governments or any
authority under law.
ARTICLE VI
6.
: CONDITIONS PRECEDENT TO DISBURSEMENT
The obligation of the Corporation to make disbursements under this Agreement shall be
subject to the TM performing all its obligations and undertakings under this Agreement and
compliance with the following conditions:
a) SECURITY IN FAVOUR OF THE CORPORATION
The TM, as may be required by the Corporation, shall have created security as
stipulated in this Agreement in favour of the Corporation.
b) NON-EXISTENCE OF EVENT OF DEFAULT:
The TM shall have satisfied the Corporation that no event of defaults as defined in
this agreement and no event which, with the lapse of time or notice and lapse of
time as specified in this agreement, would become an event of default, has
happened and been continuing.
c) COMPLIANCE WITH OBLIGATIONS
The TM shall have complied with its obligations set out in Schedule 6 and else
where in this agreement.
d) UNDERTAKING FOR MEETING SHORTFALL:
The TM shall have furnished or deemed to have been furnished an undertaking
that it shall take the responsibility for making arrangements satisfactory to the
Corporation for meeting the shortfall, if any, in the resources of the TM for
completing the Investment Subproject. The funds brought in to meet the shortfall
in the resources of the TM for completing the Investment Subproject shall be in
such form and manner and on such terms as may be required by the Corporation.
ARTICLE VII
FINANCIAL MANAGEMENT AND REPORTING
7.1
The TM shall, and shall cause its agencies carrying out any activities under the Investment
Subproject to:
(a)
(i)
maintain a financial management system, including records and accounts, and prepare
financial statements, in accordance with consistently applied accounting standards
acceptable to the Corporation, adequate to reflect its operations and financial condition and
to register separately the operations, resources and expenditures related to the activities set
out in Schedule 1 to this Agreement;
194
(ii)
have the financial statements referred to in paragraph (i) above, for each Fiscal Year
audited, in accordance with consistently applied auditing standards acceptable to the
Corporation, by independent auditors acceptable to the Corporation;
(iii)
furnish to the Corporation, as soon as available, but in any case not later than six
months after the end of each such Fiscal Year, (A) certified copies of the financial statements
referred to in sub paragraph (i) of this paragraph (a), for such Fiscal Year as so audited, and
(B) an opinion on such statements by said auditors, in scope and detail satisfactory to the
Corporation; and
(iv)
furnish to the Corporation, such other information concerning such records and
accounts and the audit of such financial statements, and concerning said auditors, as the
Corporation may from time to time reasonably request;
(b)
exchange views with and furnish all such information to the Corporation as may be
reasonably requested by the Corporation, with regard to the progress of the activities set out
in Schedule 1 to this Agreement;
(c)
prepare and submit to the Corporation, monthly reports on the progress of the activities set
out in Schedule 1 to this Agreement all in a manner satisfactory to the Corporation;
(d)
assist the Corporation in updating the Procurement Plan.
ARTICLE - VIII
8.1
The TM shall:
(i)
Promptly notify the Corporation of any proposed change in the nature or scope of the
Investment Subproject and of any event or condition which might materially and adversely
affect or delay completion of the Investment Subproject or result in substantial overrun in
the original estimate of costs. Any proposed change in the nature or scope of the Investment
Subproject shall not be implemented or funds committed thereof without the prior written
approval of the Corporation:
ii)
Obtain prior concurrence of the Corporation to any material modification or cancellation of
the TM’s agreements with its suppliers, and/or technical and other consultants; and
iii)
Promptly inform the Corporation of the circumstances and conditions that are likely to
disable the TM from implementing the Investment Subproject or which are likely to delay its
completion or compel the TM to abandon the same.
8.2
The TM shall not prepay any loan availed of by it from any other party without the prior
approval of the Corporation. If for any reason, the TM is required to prepay any loan, it shall
make proportionate prepayment to the Corporation as well as subject to such conditions as
may be stipulated by the Corporation.
195
8.3
INSURANCE:
a)
Keep insured up to the replacement value thereof as approved by the Corporation (including
surveyor’s and architect’s fees) the properties charged / to be charged to the Corporation
and such other properties as may be stipulated by the Corporation, as are of an insurable
nature against fire, theft, lightning, explosion, earthquake, riot, strike, civil commotion,
storm, tempest, flood, marine risks, erection risks, war risks, and such other risks as may be
specified by the Corporation and shall duly pay all premium and other sums payable for that
purpose. The insurance in respect of the properties charged / to be charged to the
Corporations shall be taken in the joint names of the TM and the Corporation and any other
person or institution having an insurable interest in the properties of the TM and acceptable
to the Corporation. The TM shall keep deposited with the Corporation the insurance policies
and renewals thereof.
b)
Undertake insurance to cover hazards incidental to the acquisition, transportation and
delivery of goods financed out of the proceeds of the Funds disbursed and Subgrant to the
place of use or installation, in a manner satisfactory to the Corporation.
c)
Agree that, in the event of failure on the part of the TM to insure the properties and goods or
to pay the insurance premium or other sums referred to above, the Corporation may get the
properties and the goods insured at the TM’s cost.
d)
Promptly inform the Corporation of any loss or damage which the TM may suffer due to any
force majeure circumstances or act of God, such as earthquake, flood, tempest or typhoon,
etc. against which the TM may not have insured its properties / the project.
8.4
MANAGEMENT:
Unless the Corporation otherwise agrees:
(i)
The TM shall, as and when required by the Corporation appoint and change to the
satisfaction of the Corporation, suitable technical, financial and executive staff of proper
qualifications and experience for the key posts. The terms of such appointments including
any changes therein, shall be subject to prior approval of the Corporation.
(ii)
The Corporation shall have the right to appoint, whenever it considers necessary, any person,
firm, company or association of persons engaged in technical, management or any other
consultancy business to inspect and examine the working of the TM and its factory and to
report to the Corporation. The Corporation shall have the right to appoint, whenever it
considers necessary, any Chartered Accountants / Cost Accountants as auditors for carrying
out any specific assignment(s) or to examine the financial or cost accounting system and
procedures adopted by the TM working or as concurrent or internal auditors, or for
conducting a special audit of the TM. The costs, charges and expenses including professional
fees and travelling and other expenses of such consultants or auditors shall be payable by the
TM.
196
(iii)
The TM shall constitute such committees of its Corporation with such composition and
functions as may be required by the Corporation for close monitoring of different aspects of
its working.
ARTICLE IX
9.1.
INSPECTION
The TM shall:
a.
PROJECT EXPENDITURE RECORDS:Maintain records showing expenditure incurred on the Investment Subproject,
utilisation of the disbursements out of the Funds disbursed and progress of the
Investment Subproject and the operations and financial conditions of the TM and such
records shall be open to examination by the Corporation and its authorised
representatives.
b.
TECHNICAL, FINANCIAL AND LEGAL INSPECTIONS:
Permit the Corporation and its authorised representatives to carry out technical,
quality, financial and legal inspections during the construction and operation periods
of the Investment Subproject and to inspect all records, registers and accounts of the
TM. Any such representative of the Corporation shall have free access at all
reasonable times to any part of the TM’s premises and to its records, registers and
accounts and to all schedules cost estimates, plans and specifications relating to the
Investment Subproject and shall receive full cooperation and assistance from the
employees of the TM. The cost of inspection, including travelling, all other expenses
shall be payable by the TM to the Corporation in this behalf.
9.2.
REVIEW OF THE INVESTMENT SUBPROJECT
a.
The Corporation may, at any time during the implementation of the Investment
Subproject conduct a review on the progress thereof, of such scope and in such details
as may be satisfactory to the Corporation.
b.
If as a result of such review, the Corporation determines that the TM is not
implementing/or is not likely to implement the Investment Subproject in accordance
with the provision of this Agreement, the Corporation may require the TM to take
such measures as the Corporation shall determine, on terms and conditions
satisfactory to the Corporation.
ARTICLE X
10.1
CANCELLATION, SUSPENSION AND TERMINATION:
CANCELLATIONS BY THE TM / INVESTMENT/GRANT RECIPIENT
The TM, by notice in writing to the Corporation can cancel the Funds disbursed and
grant or any part thereof, which the TM has not withdrawn prior to the giving of such
notice.
197
10.2
SUSPENSION BY THE CORPORATION:
If any of the following events shall have occurred and be continuing, the Corporation
may, by notice to the TM suspend in whole or in part the right of the TM to make
withdrawals from the Funds disbursed Account.
a.
Upon failure by the TM to carry out all or any of the terms of this Agreement or on the
happening of any events set forth in paragraph 2.7 of Article II of this Agreement.
b.
If any extra ordinary situation makes it improbable that the TM would be able to
perform its obligations under this Agreement.
c.
If any change in the TM’s set up has taken place which, in the opinion of the
Corporation, would adversely affect the conduct of the TM’s business or the financial
position or the execution and completion of the Investment Subproject.
d.
upon notice by the GOI/GOAP that it intends to exercise any of its remedies under
General Law.
e.
upon notice by the TM that it intends to terminate this Agreement with the
Corporation, or upon the actual termination of this Agreement, whichever occurs first.
10.3
The right of the TM to make withdrawals from the Funds disbursed shall continue to
be suspended until the Corporation has notified the TM that the right to make
withdrawals has been restored.
10.4
CANCELLATION BY THE CORPORATION
If (a) the right of the TM has been suspended with respect to any amount of the Funds
disbursed for a continuous period of thirty (30) days; or
(b) at any time the Corporation determines, after consultation with the TM, that an
amount of the Funds disbursed will not be required to finance the Investment
Subproject’s costs to be financed out of the proceeds of the Funds disbursed or
(c) at any time, the Corporation determines with respect to any contract to be
financed out of the proceeds of the Funds disbursed that corrupt or fraudulent
practices were engaged in by representatives of the TM, without the TM having
taken timely and appropriate action satisfactory to the Corporation to remedy the
situation, and establishes the amount of expenditures in respect of such contract
which would otherwise have been eligible for financing out of the proceeds of the
Funds disbursed or
(d) at any time, the Corporation determines that the procurement of any contract to
be financed out of the proceeds of the Funds disbursed is inconsistent with the
procedures set forth in this Agreement and establishes the amount of expenditure in
198
respect of such contract which would otherwise have been eligible for financing out of
the proceeds of the Funds disbursed or
(e) after the date specified in Article 2.1 and Schedule-2 and Schedule-6 of this
Agreement, any amount of the Funds disbursed shall remain unwithdrawn from the
Funds disbursed and unutilised, the Corporation may, by notice to the TM terminate
the right of the TM, to make withdrawals with respect to such amount. Upon the
giving of such notice, such amount of the Funds disbursed shall be cancelled and the
Corporation shall have the right to recall such un withdrawn amount from the Bank.
10.5
EFFECTIVENESS OF PROVISIONS AFTER SUSPENSION OR CANCELLATION
Notwithstanding any cancellation or suspension, all the provisions of this Agreement
shall continue in full force and effect except as specifically provided in this Agreement.
10.6
TERMINATION
If and when the entire principal amount of the Funds disbursed withdrawn from the
Funds disbursed Account and all interest and other charges which shall have accrued
in accordance with the provisions of this Agreement shall have been paid, this
Agreement and all obligations of the parties there under shall forthwith terminate.
ARTICLE XI
11.1
WAIVER
WAIVER NOT TO IMPAIR THE RIGHTS OF THE CORPORATION:
No delay in exercising or omission to exercise any right, power or remedy accruing to
the Corporation upon any default under this Agreement, security documents or any
other agreement or document shall impair any such right, power or remedy or shall be
construed to be a waiver thereof or an acquiescence in such default, nor shall the
action or inaction of the Corporation in respect of any default or any acquiescence by
it in any default, affect or impair any right, power or remedy of the Corporation in
respect of any other default.
ARTICLE XII
12.1
MISCELLANEOUS
SERVICE OF NOTICE:
Any notice or request to be given or made to the Corporation or to the TM or to any
other party shall be in writing. Such notice or request shall be deemed to have been
given or made when it is delivered by hand or dispatched by mail or telegram to the
party to which it is required to be given or made at such party’s designated address.
12.2
a)
EVIDENCE OF DEBT:The Corporation shall maintain, in accordance with its usual practice accounts
evidencing:
199
1)
2)
3)
4)
b)
12.3
The amounts from time to time lent by and owing to APURMSP under this
Agreement
The amount of any advance made under this Agreement
The amount of any principal or interest due or to become due from the TM to the
Corporation under this Agreement.
The amount of any sum received or recovered by the Corporation under this
Agreement and / or security documents executed in favour of the Corporation.
In any legal action or proceedings arising out of or in connection with this Agreement,
the entries made in the accounts maintained pursuant to these clauses above shall be
prima-facie evidence of the existence and amount of obligations of the TM as therein
recorded.
BENEFIT OF THIS AGREEMENT:
This Agreement shall be binding upon and ensure to the benefit of each party thereto
and its successors.
12.4
HEADINGS
The headings of various Articles and Sections herein and in this Agreement are
inserted for convenience of reference and are not deemed to affect the construction
of the relative provisions.
12.5 CIVIL LITIGATION
Any dispute or litigation or conflict arising out of this Agreement shall be resolved through mutual
discussions and amicable negotiations. In case such mutual discussions fail, the dispute shall be
referred to the Secretary to Government, Municipal Administration and Urban Development
Department, GOAP. However, if litigation does become inevitable, the same shall be contested
before a competent civil court having jurisdiction over Hyderabad, the headquarters of the
Corporation.
IN WITNESS WHEREOF the parties have executed this Agreement as follows:-
SIGNED AND DELIVERED BY THE
within named Corporation by the hand of
Managing Director
200
Andhra Pradesh Urban Finance and Infrastructure Development Corporation Limited (Corporation)
SIGNED AND DELIVERED BY THE
within named TM by the hand of
Shri
Commissioner, TM
an authorised official of the TM
Witnesses:
1.
2.
201
SCHEDULE-1
(Rupees in Lakhs)
Details of Sub Projects approved for Tandur Municipality
Sl.No.
1
1
2
Scheme
Name.
2
APURMSP
APURMSP
Sector
Total
Project
Cost
Loan
Grant
TM share
3
4
5
6
7
8
Water
Supply
Laying of water supply
pipelines in Saipur,
Valimikinagar, Gumasta
Colony, seetharampet &
other areas
86.64
60.65
17.32
8.66
CC
Roads
Laying of CC road from
Syndicate polishing unit
to MDO office and
Chincholi road to existing
C.C.road via DPEP School
48.40
43.56
0.00
4.84
135.05
104.21
17.32
13.50
Total
Corporation
Pattern of Finance
Name of the Work
202
TM
SCHEDULE 2
Financing Plan
(Rupees in Lakhs)
Package I - Water Supply
Name of the work
Date of
Installment release of
Installment
1
1st
nd
2
rd
3
Funding
Amount
2
01.03.2009
01.04.2009
01.05.2009
3
Grant
4
30.327
15.163
15.163
5
8.665
4.332
4.332
86.649 60.654
17.330
86.649
Total
Loan
Package III - CC Roads
Funding
Amount
8
Loan
Grant
6
4.332
2.166
2.166
Total
7
43.324
21.662
21.662
8.665 86.649
Total of Package I & III
ULB
Share
Total
9
21.782
10.891
10.891
10
0.000
0.000
0.000
11
2.420
1.210
1.210
48.404 43.564
0.000
4.840 48.404
48.404
ULB
Share
12
24.202
12.101
12.101
Funding
Amount
13
Loan
ULB
Share
Grant
14
52.109
26.054
26.054
15
8.665
4.332
4.332
135.053 104.218
17.330
135.053
16
6.753
3.376
3.376
Total
17
67.526
33.763
33.763
13.505 135.053
Funding Value includes the ‘Contract Value’ and a fixed percentage of the Contract Value as detailed
below:
1.
2.
3.
4.
5.
Insurance
Technical assistance
Banker Charges
VAT
Advertisement Charges
Corporation
0.52%
1%
0.2%
4%
1%
203
TM
SCHEDULE 3
Schedule for Loan / Grant Withdrawal
Date:
From:
The Commissioner
TM
____________ District.
To
The Managing Director,
APUFIDC, 2nd floor, Engineer-in-Chief (PH) Office Complex
AC Guards, Hyderabad – 500 004
Letter No:
Sir,
Subject:
Corporation / APURMSP - Grant/Loan – Withdrawal of Grant/Loan – Withdrawal
Application No.
Reference:
Loan Agreement Number – APURMSP/
dated
I am submitting the following documents for your review and consideration
1)
2)
3)
4)
5)
Progress Report (in the format enclosed as Annexure – 1)
Statement of Expenditure (in the format enclosed as Annexure-2)
Grant Utilisation Details (Annexure-3)
Utilisation Certificate for an amount of Rs.
(Annexure-4)
Resolution of the Council requesting for the release of Loan and/or/Grant from
APURMSP funds .
I request you to release the Grant/Loan from APURMSP funds for an amount of
Rs._______________ as the ___________ installment of the funding Agreement referred
above.
Thank you and best regards,
Commissioner
TM
Note:
Delete whatever is not applicable.
Withdrawal Applications (WA) should be numbered serially.
Corporation
204
TM
SCHEDULE 3
Annexure – 1
Progress Report
TM:
Period of Report:
From :
Withdrawal Application No.
To
:
(Amount in Rupees)
S Name of Descriptio
No. the Work n of Work
1
2
3
Work
Done
Since Last
Release of
Funds
Value
of
Work
Done
4
5
APURMS
P
Grant/L
oan
Received
till Date
6
Amount
Spent
Balance
Availabl
e
Amount
Request
ed in
this WA
Remarks
7
8
9
10
I certify that I have personally verified the above information and confirm the authenticity of the
same. The Council has been apprised of the progress.
Commissioner,
TM
Corporation
TM
205
SCHEDULE 3
Annexure – 2
Statement of Expenditure
TM:
Period of Report:
Loan Agreement No.
To
From :
:
(Amount in Rupees)
S
Item of
No. Expenditure
1
2
Value of
Column
(2)
Voucher
No. &
Date
Amount
Paid
Date of
Payment
Cheque
No.
3
4
5
6
7
Payee
Name
and
Address
8
Remarks
9
I certify that the above information is correct and true to the best of my knowledge. The
Council has been apprised of this report.
Commissioner,
TM
Corporation
TM
206
SCHEDULE 3
Annexure – 3
Statement of Sub Loan / Sub Grant released & utilised from APURMSP Funds.
TM:
Date
of Reporting:
Current WA No.
(Amount in Rupees)
Grant
Loan
S
Remarks
No. Sanctioned Released Utilised Balance Sanctioned Released Utilised Balance
1
2
3
4
5
6
7
8
9
10
I certify that the above information is correct and true to the best of my knowledge.
Commissioner,
TM
Corporation
TM
207
SCHEDULE 3
Annexure – 4
Utilisation Certificate
TM:
Date of Reporting:
Letter No. & Date
MD, Corporation
Amount
Certified that out of Rs.
of loan /
grant sanctioned during the year in favour of
Municipal
Commissioner,
TM,
under
APURMSP(Externally Aided Project) vide Letter
No. given in the margin, a sum, of Rs.
has been utilized for the purpose of execution
of APURMSP works only.
Lr.No. & Date:
Loan Agreement No. & Date:
Certified that I have satisfied myself that the conditions on which the loan / grant were sanctioned
have been duly fulfilled / are being fulfilled and that I have exercised the following checks to see that
the money was actually utilised for the purpose for which it was sanctioned.
Kinds of checks exercised:
1. Vouchers (No. Dt.
2. Cheques (No. Dt.
3. M.Books (
)
)
)
Commissioner
TM
Corporation
TM
208
SCHEDULE - 4
Interest and other Charges
1.
The TM shall pay to the Corporation to be deposited into APURMSP funds an
interest of seven and half percent (7.5%) per annum, or at a rate determined from time to
time by the Corporation, whichever is higher, on the Principal amount of the Funds
disbursed. The TM shall deposit the interest accrued on the Principal in the Account of the
Corporation as referred to in the Schedule – 8 of this Agreement, on the last day of every
quarter, as detailed in Schedule – 5 to this Agreement, duly reckoning the first day of the
financial year, i.e., first of April of the calendar year, as the first day of the quarter.
2.
The TM shall pay to the Corporation a documentation fee in an amount equal
to half a percent (0.5%) of the amount of the loan, and a service fee in an amount equal
to half a percent (0.5%) of the loan approved as referred to in the Article 2.1 of this
Agreement. The Corporation shall deduct this amount from the loan disbursed to the loan
Account by the TM.
3.
In the event of default of payment of any installment of the loan and /or the
interest in respect of the loan or different components of the loan on the due dates, the
TM without prejudice to the right of the Corporation to suspend and / or cancel the Loan
as provided at the Articles 10.2 and 10.3 of this Agreement respectively, shall pay an
additional interest at the rate of two percent (2%) per annum, or such other rate as may
be determined by the Corporation from time to time, on the amount due for payment
from the TM.
Corporation
TM
209
SCHEDULE 5
Amortization Schedule
Packages I & III
Rs. In Lakhs
Year
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Corporation
TM
Date of
Payment
31-Mar-09
30-Jun-09
30-Sep-09
31-Dec-09
31-Mar-10
30-Jun-10
30-Sep-10
31-Dec-10
31-Mar-11
30-Jun-11
30-Sep-11
31-Dec-11
31-Mar-12
30-Jun-12
30-Sep-12
31-Dec-12
31-Mar-13
30-Jun-13
30-Sep-13
31-Dec-13
31-Mar-14
30-Jun-14
30-Sep-14
31-Dec-14
31-Mar-15
30-Jun-15
30-Sep-15
31-Dec-15
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Mar-17
30-Jun-17
30-Sep-17
31-Dec-17
31-Mar-18
30-Jun-18
30-Sep-18
31-Dec-18
Interest
@ 7.50%
Principle
0.332
1.788
1.970
1.970
1.927
1.949
1.970
1.970
1.927
1.949
1.970
1.970
1.949
1.949
1.970
1.970
1.927
1.949
1.970
1.970
1.927
1.909
1.891
1.851
1.772
1.752
1.732
1.692
1.617
1.595
1.573
1.533
1.478
1.438
1.414
1.375
1.306
1.281
1.256
1.216
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
210
Total
0.332
1.788
1.970
1.970
1.927
1.949
1.970
1.970
1.927
1.949
1.970
1.970
1.949
1.949
1.970
1.970
1.927
1.949
1.970
1.970
4.027
4.009
3.991
3.951
3.872
3.852
3.832
3.792
3.717
3.695
3.673
3.633
3.578
3.538
3.514
3.475
3.406
3.381
3.356
3.316
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Total
1
31-Mar-19
30-Jun-19
30-Sep-19
31-Dec-19
31-Mar-20
30-Jun-20
30-Sep-20
31-Dec-20
31-Mar-21
30-Jun-21
30-Sep-21
31-Dec-21
31-Mar-22
30-Jun-22
30-Sep-22
31-Dec-22
31-Mar-23
30-Jun-23
30-Sep-23
31-Dec-23
31-Mar-24
30-Jun-24
30-Sep-24
31-Dec-24
31-Mar-25
30-Jun-25
30-Sep-25
31-Dec-25
31-Mar-26
30-Jun-26
30-Sep-26
31-Dec-26
31-Mar-27
30-Jun-27
30-Sep-27
31-Dec-27
31-Mar-28
30-Jun-28
30-Sep-28
31-Dec-28
1.151
1.124
1.097
1.057
0.995
0.967
0.938
0.898
0.840
0.810
0.779
0.739
0.692
0.653
0.620
0.581
0.529
0.496
0.462
0.422
0.374
0.359
0.344
0.325
0.299
0.284
0.268
0.248
0.224
0.208
0.191
0.172
0.150
0.132
0.115
0.096
0.075
0.057
0.038
0.019
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
2.100
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
1.011
3.251
3.224
3.197
3.157
3.095
3.067
3.038
2.998
2.940
2.910
2.879
2.839
2.792
2.753
2.720
2.681
2.629
2.596
2.562
2.522
1.385
1.370
1.355
1.336
1.310
1.294
1.278
1.259
1.235
1.219
1.202
1.183
1.160
1.143
1.126
1.106
1.086
1.068
1.049
1.030
88.784
104.218
193.002
The Sub loan for Package I and Package III is amortized over a period of twenty (20) years and fifteen
(15) years respectively including five (5) years of moratorium for payment of principal.
NOTE: The Interest as applicable in terms of this agreement shall be charged from the date of release
of Loan component.
Corporation
TM
211
SCHEDULE 6
Implementation Programme
The TM shall implement the sub project in accordance with the financing plan in Schedule 2
and time lines as per Schedule 9 including sub components.
SCHEDULE 7
Procurement
The TM shall follow the procurement procedures as laid down by the World Bank from time
to time for procurement of Materials, Services etc.
SCHEDULE 8
SECURITY
The TM shall implement all such measures as prescribed by the Corporation from time to
time to establish adequate security mechanism to ensure timely payment of interest and the
principal due to the Corporation to be deposited into APURMSP funds and arrange the
payment of Interest and the Principal due to the Corporation as stipulated in the
Amortization Schedule referred to in Schedule 5 in the account of the Corporation described
below:
Name of the Bank
Name of the Branch
Bank Account Number
Branch code No.
Telephone Number
Fax Number
: State bank of Hyderabad
: MCH Branch
: 52082158169
: 2432
: 040-23225011
: 040-23220719
Schedule 9
Time schedule for commencement and completion of subproject (to be given by the TM and
approval by the corporation.)
Schedule 10
Environmental Related Mitigations measures and Social Management Plan
1. Quality Assurance:The Corporation reserves the right to inspect the implementation of the project any
time during its progress and subsequently.
Corporation
TM
212
The Corporation shall reserve the right to appoint such agents the Corporation deems
fit to supervise and monitor the quality and the timeframe of implementation of the Subproject
and the borrower shall implement such suggestions that might be provided by the Corporation
through its agents in this regard.
2. Environmental Related Mitigations
The TM shall perform the following functions to reduce the adverse impact of the
subproject on the environment:
1.
shall identify alternative suitable sites before starting the excavation works to
avoid the change in topography;
2.
shall take all possible measures to avoid creation of borrow pits in and around the
site that could lead to water logging in the vicinity of the worksite;
3.
shall provide alternative route / bypass for traffic during construction work to
avoid traffic congestion;
4.
shall ensure that the appurtenances including the vehicles used for construction
activities comply with standards of the CPCB;
5.
shall undertake regular sprinkling of water required to settle the dust coming up
during the construction job;
6.
shall ensure alternative arrangement for ground water recharge;
7.
shall monitor the noise levels on the road during operational phase and ensure
proper maintenance of the roads during the operational phase, especially during
monsoons;
8.
shall implement property safety measures during the construction so that the
water bodies are not polluted; and
9.
shall employ safe engineering practices during construction.
3. Social Management Plan
The TM shall implement all measures required to involve the community at large in
the quality assurance and monitoring the implementation of the Investment Subproject.
These measures include, inter alia, redressal of the grievances of people and management of
any adverse social impact during construction, as the case may be;
Corporation
TM
213
Corporation
TM
214
ANNEXURE 11:
MODEL LOAN DISBURSEMENT FORMATS
Annexure 11: Model Loan Disbursement Formats
GOVERNMENT OF ANDHRA PRADESH
ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
PRESENT: -
SRI. CHANDAN MITRA, IFS.
SECRETARY - APUIF
Proceedings No. 030704/BPT/APDMP, Dated 31 January 2008
Sub: - APDMP- Release of 2nd installment of loan – Bapatla Municipality - Orders –
issued.
Read: - Sub loan / Sub grant Agreement No. APDMP /BPT/030704/1/2006, dt.27 June
2006.
ORDER:
1.
With the approval of MD, following is the table showing particulars of release of loan to
Bapatla Municipality:
Total sanctioned
amount
Loan(Rs.)
Grant(Rs
.)
1,50,51,02 35,81,48
2
8
2.
Total releases made
Being released now
Loan(Rs.)
Grant(Rs.)
Loan(Rs.)
3891500
13,75,500
25,00,000
Grant(R
s.)
0
Deductions
(Rs.)
Net release
(Rs.)
75,255
75,255
as documentation fee
(0.50%of total loan)
and service fee (0.50%
of total loan)
72,766
73,565
73,565
Interest on 38.915 L for
th
the quarters ended 30
th
Jun 07, 30 Sep 07 and
st
31 Dec 07.
21,29,594
The Commissioner of Bapatla Municipality is instructed to keep the amount now released in
the Bank Account No. SB 237946 in Andhra Bank opened for APDMP. The amount should be utilized
only for the purpose for which it is released and no part of it shall be diverted for any other purposes
or invested in any form of FDs under any circumstance. Further, while incurring expenditure, the
215
procurement, contracting and other guidelines communicated should be complied with scrupulously.
Monthly progress report indicating both physical and financial
aspects should be sent to this office by 10 th of each succeeding month till the amount is
exhausted and the works are completed in all respects. The commissioner is also requested to
submit Utilization Certificate in the prescribed proforma on monthly basis or earlier, as the case
may be, to the extent of expenditure incurred, along with copies of vouchers. Any deviation in
this regard will result in the cancellation of loan /grant.
Secretary - APUIF
To
The Commissioner,
Bapatla Municipality.
Copy to
1. C&DMA, Hyderabad.
2. Accounts section of APDMP.
216
GOVERNMENT OF ANDHRA PRADESH
ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
From:
To
Sri Chandan Mitra, IFS,
Secretary - APUIF.
The Assistant General Manager,
State Bank of Hyderabad,
MCH Complex,
Hyderabad.
Lr.Roc.No. 030704/BPT/APDMP, dt: 31/01/2008.
Sir,
Sub: - APURMS Project – release of funds - request for
transfer of funds by TT/Electronic Transfer – requested - Reg.
Ref: Proceedings No.030704/BPT/APDMP, Dated 31 Jan 2008
of APUFIDC.
Please arrange to transfer an amount of Rs.21,29,594/- (Rupees Twenty One Lakhs
Twenty Nine Thousand Five Hundred and Ninety Four only) in favour of the Commissioner,
Bapatla Municipality, Guntur District the details are furnished below. A Cheque bearing number
644460, dt.31.01.2008 is enclosed for effecting the above transfer.
Name of the Account Holder
Name of the Bank
Name of the Branch
Bank code
Account No.
Name of the Bank Manager
Telephone No. of the Bank
: Commissioner, Bapatla Municipality.
: Andhra Bank
: M.G.Road, Bapatla Branch.
: 037
: Savings Account No.237946
: Sri S.Satyanarayana
: 224037, 220199
2.
It is also requested to communicate the confirmation for the above transaction for our
records.
Yours faithfully,
Secretary - APUIF
Copy to the Commissioner, Bapatla Municipality, Guntur District for information with a request to
acknowledge the receipt of funds.
217
GOVERNMENT OF ANDHRA PRADESH
ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
From:
Sri Chandan Mitra IFS,
Secretary - APUIF
To
The Commissioner,
Bapatla Municipality.
Lr.Roc.No.030704/BPT/APDMP, dt: 31/01/2008.
Sir/Madam,
Sub: - APURMS Project – Release of funds to the municipal Commissioner- Reg.
Ref: - 1. Proceedings No.030704/BPT/APDMP, Dated 31 Jan 2008 of APUFIDC.
2. Lr.Roc.No. 030704/BPT/APDMP, dt: 31/01/2008 funds by TT / Electronic Transfer.
I invite kind attention to the references cited, wherein an amount of Rs.25,00,000/- has been
approved as 2nd installment of the loan component under APURMS Project to the Bapatla
Municipality.
In view of the above, vide reference second cited an amount of Rs.21,29,594/- has been
transferred to, Andhra Bank, M.G.Road, Bapatla Branch , bank account No. 237946 by way of
Telegraphic Transfer/Electronic Transfer to the Commissioner, Bapatla Municipality.
While enclosing the references, request you to confirm if this amount has been deposited in
your bank Account and acknowledge the receipt of the amount and send the report of utilization of
funds directly to this office.
These funds should be utilized only for the intended purpose. You are requested to furnish
physical and financial progress report every month.
Yours faithfully,
Secretary - APUIF
218
ANNEXURE 12:
GOVERNMENT ORDERS
Annexure 12: Government Order
GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Municipal Administration and Urban Development Department – Revival of World Bank assisted
Andhra Pradesh Urban Reforms and Municipal Services Project (APURMSP) – Revised
Implementation Arrangements – Orders – Issued.
MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT (UBS) DEPARTMENT
G.O.Ms.No. 288
1.
2.
3.
4.
5.
6.
7.
Dated: 21.04.2009
Read the following:
G.O.Rt.No.1119 MA&UD (UBS) Department dated 15.10.2004.
G.O.Rt.No.1268 MA&UD (UBS) Department dated 19.11.2004.
G.O.Ms.No 39 Finance (SMPC) Department dated 15.02.2005.
G.O.Ms.No. 72 MA&UD (UBS) Department dated 18.02.2005.
G.O.Ms.No. 61 Finance (SMPC) Department dated 14.03.2005.
G.O.Ms.No. 317 Finance (SMPC) Department Dated 08.11.2006
G.O.Rt.No. 1240 MA&UD (UBS) Department dated 29.08.2008.
*****
O R D E R:
1.
Government have approved the Andhra Pradesh Urban Reforms and Municipal Services
Project (APURMSP) with World Bank assistance for bringing about Urban Sector Reforms,
improvement in civic infrastructure and Poverty reduction.
2.
In the reference 4th read above Government issued orders constituting Andhra Pradesh
Urban Infrastructure Fund (APUIF) to act as an asset management company (AMC) / fund manager
and restructuring the Andhra Pradesh Urban Finance and Infrastructure Development Corporation
Limited (APUFIDC) as the Principal Implementing Agency along with certain operational procedures
for APURMSP .
3.
In pursuance to the discussions with the World Bank as part of the revival and redesigning of
APURMSP in 2008-09 (following repeal of the Urban Land Ceiling Act by the State Legislative
Assembly in March, 2008), it emerged that audit of the APUFIDC relating to the last few years
remains to be completed resulting in reservations on the designation of APUFIDC as the nodal
Project Implementing Agency. This has necessitated certain consequential modifications as well as
additional guidance in the implementation arrangements for the project. Based on the proposal of
Commissioner and Director of Municipal Administration and detailed discussions with all the
stakeholder organisations, Government sets out the following revised arrangements and associated
guidance for project implementation:
i.
The Commissioner and Director, Municipal Administration is designated as Principal
Implementing Agency and to that effect provisions of G.O.Ms.No. 72 stands amended. The
Commissioner and Director, Municipal Administration assisted by the Municipal
Strengthening Unit (MSU) shall co-ordinate Project preparation , implementation and
monitoring including the actions required to mitigate the risks if required in the Governance
219
and Accountability Action Plan ( GAAP). The Commissioner and Director of Municipal
Administration shall also manage the APURMSP Public Information Officer and Grievance
Redressal and Dispute Resolution System to handle concerns of the Project affected people as
well as disputes between the Urban Local Bodies and Contractors. The role of APUFIDC shall
be advisory to APUIF.
ii.
For the infrastructure component of the Project, the Urban Local Bodies shall be designated
as the implementing agency. The Municipal Strengthening Unit in the Office of the
Commissioner and Director, Municipal Administration and Engineer-in-Chief, Public Health
through their Engineers shall assist the Urban Local Bodies in preparation of Detailed Project
Report, preparation and technical sanction of the sub-projects, recording and check
measurement of works etc duly following the PHED Department Codes and Rules in practice.
The MEPMA shall be responsible for co-ordination of the social development and pro-poor
activities of the project by the Urban Local Bodies.
iii.
In order the effectively implement the APURMSP, Government hereby constitute the
following Committees to appraise, approve and provide overall monitoring, coordination and
guidance to the project:
A. Project Appraisal Committee (PAC)
The sub-projects Detailed Project Reports prepared under the Project by the
implementing agencies concerned shall be scrutinized by the MSU under the Commissioner
and Director of Municipal Administration and placed before the Project Appraisal Committee
for appraisal from the perspective of environment, social development, financial and other
perspectives as agreed under the World Bank project. The Committee shall meet as and
when required or once in a month.
Commissioner and Director of Municipal Admin.Chairman
Secretary, APUIF
Member
Mission Director, IKP-Urban (MEPMA)
Member
Engineer-in-Chief, Public Health Deptt.
Member
Director of Town and Country Planning
Member
Project Director, MSU, APURMSP
Member Convener
B. Steering Committee:
In supersession of the orders issued in G.O.Rt.No. 1240 Municipal Administration and Urban
Development (UBS) Department dated 29.08.2008 the Steering Committee is reconstituted
with the following members.
Secretary to Government, MA&UD Chairman
Department
Commissioner and Director, Municipal Vice-Chairman
Administration
Special Secretary to Government / Member
Additional Secretary to Government/
Joint Secretary to Government, MA &
UD Department
220
Additional Secretary / Joint Secretary
to Government, Finance Department
Managing Director, APUFIDC Ltd
Mission Director , MEPMA
Engineer-in-Chief Public Health
Director, Town and Country Planning
Project , MSU, APURMSP
Member
Member
Member
Member
Member
Member-Convenor
The Steering Committee
shall approve the annual action plan including of sub-projects
Detailed Project Reports (DPRs) appraised by the Project Appraisal Committee (PAC),
approve the operational guidelines under the Project , accord approval to engage subject
specialists on outsourcing basis including their remuneration , approve the operations
manual, resolve issues of coordination among the different Heads of Departments who are
implementing agencies or stakeholders in the project, review and monitor the
implementation of the Project . The Committee shall meet once in two months or whenever
deemed necessary for the implementation of the project.
C. Empowered Committee.
The Empowered Committee (EC) shall review and direct the APURMSP at the highest level ,
resolve inter departmental issues. The Committee shall meet once in 6 months or as and
when required. The Empowered Committee will be chaired by the Chief Secretary, and the
Secretary, Municipal Administration and Urban Development will be the member-convenor.
The other members of the committee will include Principal Secretary (Finance), Principal
Secretary (MAUD), Principal Secretary(Revenue), Principal Secretary,(Transport), Principal
Secretary(EFST), Principal Secretary (Irrigation), Principal Secretary (IT), Principal Secretary
(Rural Development), Commissioner and Director , Municipal Administration, Managing
Director, APUFIDC / Secretary APUIF.
Iv
FINANCIAL MANAGEMENT AND FUND FLOW
A. The Andhra Pradesh Urban Infrastructure Fund (APUIF) will act as the fiscal agent of Government
of Andhra Pradesh (GoAP) as its fund manager. The funds under the urban infrastructure
component of the project shall be transferred from the State budget to the PD account of
Commissioner and Director of Municipal Administration and from there to the bank account of
APUIF (authorized in the management agreement of APUIF in GO Ms. No. 72, MA & UD
Department, dated 18-2-2005 under the listed powers of the fund manager), which will extend
sub-loans and sub-grants to the Urban Local Bodies subject to GoAP’s treasury rules, procedures
and limitations. The Project fund shall not be kept idle in the bank account of APUIF and C&DMA
shall transfer the funds to APUIF only when APUIF is inturn ready to transfer them to respective
ULBs immediately thereafter. The rules and procedures with regard to the operation of the bank
account of APUIF shall be documented in the Operations Manual of the project. Further the funds
relating to the other three components of the project, namely the state level policy development,
capacity enhancement and project management components shall also be transferred from the
State budget to the PD account of Commissioner and Director of Municipal Administration. The
operations under the PD account of Commissioner and Director of Municipal Administration shall
confirm to the existing financial rules and procedures of Government of Andhra Pradesh (GoAP)
including the standing Government orders.
B. The funds shall flow from the bank accounts of APUIF or the PD accounts of Commissioner and
Director of Municipal Administration as above to the bank accounts of Urban Local Bodies and of
221
other implementing agencies including Municipal Strengthening Unit. Criteria for release of funds
to the implementing agencies for various sub-projects will be detailed by the Commissioner and
Director, Municipal Administration in the Operations Manual separately.
C. APUIF which operates as a loan and investment company to the Urban Local Bodies while being
governed by the Trust rules shall also adopt the best practices of Non Banking Finance Company
(NBFC) in India.
D. The Municipal Strengthening Unit / Commissioner and Director of Municipal Administration will
consolidate the actual expenditure information for all project components into the Interim
Unaudited Financial Reports (IUFR) and for seeking reimbursements. The Municipal
Strengthening Unit will be responsible for all reporting requirements including those to the Bank.
V. PROCUREMENT: The orders issued in the G.O.Rt.No.119 MA&UD (UBS) Department dated
15.10.2004 and G.O.Rt.No.1268 MA&UD (UBS) Department dated 19.11.2004 stand cancelled and
the following procedure shall be adopted.
A. The method of procurements of work, goods or services under APURMSP shall be in accordance with
the guidelines for procurement agreed with the World Bank and as per the standard Model Bid
Documents developed by the Government of India Task Force and agreed with the World Bank.
APURMSP would participate in the e-Procurement pilot as per the Standard Bidding Documents.
B.
The Urban Local Bodies will process their procurements including contracting of sub-projects in
Urban Infrastructure component of the project. For these subprojects, Municipal Strengthening
Unit will assist Urban Local Bodies in all steps of procurements through its own procurement
specialist, Public Health Engineering Department Engineers as well as consultants. The
procurements in other components of the project would be processed by Municipal Strengthening
Unit.
C.
The required technical assistance to the Project shall be engaged under relevant project
components on outsourcing / contract basis as per procurement measures with the Terms of
References and the details of remunerations, allowances etc documented in the Operations
Manual with prior approval from Finance (SMPC) Department.
Vi.
A.
AUDIT AND ACCOUNTING ARRANGEMENT
The statement of receipts, payments and vouchers of a month from the first date of the month to
the last shall be sent by the Urban Local Bodies and Implementing Agencies to APUIF and
Municipal Strengthening Unit by 15 th of next month. The copy of the consolidated and final
incorporated monthly accounts of APUIF shall be reconciled with Municipal Strengthening Unit by
28th of the next month. An on-line Financial Management Information System (FMIS) package
shall be developed for regular statements of monthly accounting.
B. The Municipal Strengthening Unit upon receipt of accounts from APUIF shall monitor the physical
and financial progress of the project as per the action plan and recommend necessary corrective
measures to the Implementing Agencies and Urban Local Bodies. The Municipal Strengthening
Unit shall recommend the next quarterly financial releases to the Urban Local Bodies based upon
the progress of works and expenditure in the previous quarter as per the action plan.
222
C.
Vii
The internal (concurrent) audit of all the participating Urban Local Bodies will be conducted by
CDMA / MSU at least once a year through Chartered Accountants (CAs) and include verification
of actual expenditures against the loans and advances to the subprojects. These actual
expenditures will be reflected in the IUFRs and will form the basis for disbursement of sub-loans
and grants. An external audit of the project shall also include the audit of the participating Urban
Local Bodies by Andhra Pradesh State Audit Department and of the State level implementing
agencies including PD account of the Commissioner and Director, Municipal Administration by
the Accountant General, Andhra Pradesh as per the generic Terms of References as agreed with
the World Bank. All the final and intermediate reports of audits, i.e., monthly internal pre-audit
of accounts and external audits shall be received by Municipal Strengthening Unit for monitoring,
evaluation and reporting in a consolidated manner to the World Bank latest by 30 th September of
the close of Financial Accounts.
ENVIRONMENTAL AND SOCIAL SAFEGUARDS
Adequate environmental and social safeguards in the project preparation, procurement and
actual execution process shall be ensured by the Urban Local Bodies. It shall be monitored by the
Municipal Strengthening Unit as per the environment and social documentation included in
Social and Environmental Assessment and Management Framework (SEAMF) and Social
Management Plans for sub-projects of Urban Local Bodies.
Viii REPORTING ARRANGEMENT:
The Urban Local Bodies shall submit quarterly financial management report (FMR) in the
prescribed form duly reflecting the physical and financial progress under approved sub-projects
to the APUIF and Commissioner and Director, Municipal Administration. Similarly they shall also
submit annual financial statement within three months of the close of the financial year which
shall be subject to audit by the statutory audit of APUIF. The APUIF shall consolidate and forward
the report to Municipal Strengthening Unit. The Municipal Strengthening Unit shall prepare a
consolidated progress report duly taking the reports from other implementing agencies like
MEPMA, ENC, CDMA and submit report to the Government and the World Bank within one
month from the close of the Financial Year.
4.
The Commissioner and Director, Municipal Administration, Hyderabad
(PIA) shall
immediately finalize the Detailed Operations Manual for Reporting Arrangement, Audit and
Accounting, Procurement and Environmental and Social Safeguards, access criteria for APURMSP,
Initial Project Proposal from Urban Local Bodies, detailed Project Report, Memorandum of
Agreement between the APUIF and Urban Local Bodies and Municipal Strengthening Unit and Urban
Local Bodies , outputs and compliance report in the Project Appraisal Committee and submit to
Steering Committee for approval.
5.
This order issues with the concurrence of the Finance (IF) Department vide their C. No.
209/Fin.PMU/09, dated 18.04.2009.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
PUSHPA SUBRAHMANYAM
SECRETARY TO GOVERNMENT &
COMMISSIONER, UPA
223
To
The Commissioner and Director of Municipal Administration, Hyd.
All Urban Local Bodies.
The Principal Secretary to Government, Finance Department.
The Principal Secretary to Government, Planning Department.
The Principal Secretary to Government, Housing Department.
The Principal Secretary to Government, Irrigation Department.
The Principal Secretary to Government, Rural Development Department.
The Principal Secretary to Government, IT Department.
The Secretary to Government, MA & UD Department.
The Managing Director, APUFIDC Limited, Hyderabad.
The Engineer-in-Chief (Public health), Hyderabad.
The director of town and Country Planning, Hyderabad
The Project Director, MSU, APURMS Project, Hyderabad.
Copy to:
The P.S. to Chief Secretary to Government.
The Finance (Expr.M&F) Department.
The Finance (BG) Department.
The Public Enterprises Department.
The P.S. to Hon’ble M(MA).
The P.S. to Principal Secretary to Government, MA & UD Dept.
The P.S. to Secretary to Government, MA & UD Dept.
The P.A. to Special Secretary to Government, MA & UD Dept.
SF/SC
//FORWARDED BY ORDER//
ASSISTANT DIRECTOR
224
GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Municipal Administration and Urban Development Department – Andhra Pradesh Urban Reform and
Municipal Services (APURMS) Project proposed under World Bank assistance – Constitution of Andhra
Pradesh Urban Infrastructure Fund, as a Trust under the Indian Trusts Act 1882 – Restructuring of
Andhra Pradesh Urban Finance & Infrastructure Development Corporation Ltd., (APUFIDC) as the
Fund Manager – Orders – Issued.
MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT (UBS) DEPARTMENT
G.O. Ms. No. 72, MA
Dated: 18-02-2005
Read the following
1. G.O. Ms. No.386, MA & UD (E) Department, dated 17.7.1992.
2. From Commissioner and Director of Municipal Administration D.O. Roc. No.21034 / 04 /
N3, Dated 30.11.2004.
<>0<>
ORDER:
Municipal Administration and Urban Development Department (MA&UD) of the Government is in
the process of preparing a project for Urban Sector Reforms and Poverty Reduction, which is
proposed to be taken up with external assistance. As part of project preparation, a Study on the
Design of Business Plan and Operating Procedures of Andhra Pradesh Urban Finance and
Infrastructure Development Corporation Ltd., (APUFIDC) was conducted by the autonomous
institution viz., Centre for Good Governance, Hyderabad. Government have perused the Report and
noted the importance of strengthening the institutional framework for financing urban infrastructure
projects which has been identified as one of the key components of the reform agenda.
2.
The project development objective is to support the State and Local level urban reforms to
improve city management and upgrade and expand municipal services with particular focus on
reducing urban poverty. The project proposal has the following components, viz., (a) Legal and
Institutional Reforms at State and Urban Local Bodies Levels; (b) Municipal Capacity Enhancement;
(c) Urban Infrastructure Investment; and (d) Project Management.
3.
The Constitution (74th Amendment) Act, 1992 mandates an institutional framework, in which
the Urban Local Bodies (ULBs) are to function as effective democratic institutions to local selfgovernment, preparing and implementing plans for economic development and social justice. The
Government's emphasis on improving the system of urban development financing is consistent with
its objective of improving service delivery, augmenting resources to meet the infrastructure
requirement and sustaining the developmental efforts over a longer period.
4.
Since the development of urban infrastructure is the thrust area for achieving the overall
economic growth of the State, Government have been in the process of identifying resources for
such huge investments. The ability to access a package of credit from the World Bank would
accelerate the development and implementation of urban infrastructure projects at the local bodies
225
level. Proposals have been sent to the World Bank, seeking financial assistance for the infrastructure
projects in the State.
5.
In this connection, in the reference 2 nd read above, in line with the recommendations of the
Centre for Good Governance, Hyderabad, the Commissioner and Director of Municipal
Administration, Hyderabad, has submitted proposals for establishment of AP Urban Infrastructure
Fund (APUIF) as a Trust under the Indian Trust Act, 1882, and Restructuring of APUFIDC as an
Asset Management Company (AMC)/Fund Manager.
6.
Government after careful examination approve the formation of the new Financial
Intermediary as a Trust i.e. the ANDHRA PRADESH URBAN INFRASTRUCTURE FUND (APUIF) and the
Restructuring of Andhra Pradesh Urban Finance Infrastructure Development Corporation Ltd.,
(APUFIDC) as an Asset Management Company (AMC) / Fund Manager with the following covenants:
I. Structure
A. Institutional Framework
The new institutional arrangement shall be a two-tier organizational structure viz., a TRUST that
should hold the fund and an Asset Management Company as the FUND MANAGER of the Trust.
(i) The Trust shall be settled in terms of the provisions of the Indian Trusts Act 1882 under the
name and style of 'ANDHRA PRADESH URBAN INFRASTRUCTURE FUND' (APUIF) and the Trust shall be
registered and function as a registered Trust.
(ii) APUIF Trust Fund shall comprise the following components:
a)
b)
c)
d)
e)
Revolving Fund;
Debt Service Reserve Fund;
Loan Fund;
Grant fund inclusive of Project Development Facility;
Scheme Fund.
(iii) A Debt-Service Fund shall be created under Commissioner and Director of Municipal
Administration, Hyderabad.
(iv) The Project Development Facility, under the APUIF shall provide grants for various components
viz., Institutional development, Project Development and Advisory services.
(v) APUIF shall facilitate the sustained development of urban infrastructure in the State by
enabling urban local bodies and other local entities to have access to capital, by supporting urban
sector reforms to make them creditworthy and eventually access the capital market on their own,
and by facilitating public-private community initiative for building urban infrastructure.
(vi) The main objectives of the Trust are as follows:
226
a) Fund urban infrastructure projects for improving the living standards of urban population,
including the urban poor through a revolving fund.
b) Assist urban local bodies and other agencies providing urban infrastructure in accessing the
capital market, individually or jointly through pooled finance arrangements.
c) Operate a complementary window, to assist urban local bodies and other agencies by way of
grants, on issues relating to project design and management and in addressing the problems of
the urban poor and the issues of environmental conservation.
d) Facilitate private sector participation in infrastructure through joint ventures and through
formats such as public-private-community partnerships.
e) Capacity building, including financial management of urban local bodies to enable them to
access debt finance from the market.
(vii) Government appoint the following officials as the Board of Trustees for the APUIF (hereinafter
referred to as the Trustee), who shall act as the Board of Management to administer the Fund. The
Board of Trustees is appointed as the TRUSTEE for APUIF.
Chief Secretary to Government of Andhra Pradesh
Principal Secretary to Government, Finance Department
Principal Secretary/Secretary to Government,
MA & UD Department
Principal Secretary to Government, Planning Department
Principal Secretary to Government, Housing Department
Commissioner and Director of Municipal Administration
Managing Director, APUFIDC
Chairman
Trustee
Trustee
Trustee
Trustee
Trustee
Secretary of Trust
Principal Secretary to Government, Finance Department, is authorised to execute and sign the Trust
Indenture on behalf of the Settlor and the Principal Secretary/Secretary, Municipal Administration and
Urban Development Department, is authorised to execute and sign the Trust Indenture on behalf of the
Board of Trustees. Annexure-1 provides the approved Trust Indenture.
(viii) The Board of Trustees shall decide on the funding, lending and operating policies of
APUlF. It shall also approve the business and financial plans proposed by the Fund Manager and
supervise its implementation. It shall have overall supervision and control over the operation of the
Fund Manager as per the Management Agreement. (Annexure-2)
(ix) The initial settlement amount of the Trust shall be Rs.10,000/- (Rupees Ten thousand only)
which shall be provided by the Government of Andhra Pradesh for establishing the Trust.
Principal Secretary, Finance Department, is appointed as the Settlor of the Trust, on behalf of
the Governor of Andhra Pradesh and is authorised to execute and sign the Trust Indenture on
behalf of the Settlor. Principal Secretary/ Secretary, MA & UD Department is authorised to register,
Andhra Pradesh Urban Infrastructure Fund (APUIF), as a Trust under the Indian Trusts Act, 1882.
(x) Sanction is accorded for Rs 10,000/- (Rs. Ten thousand only) towards the settlement amount
and for Rs 10,000/- (Rs. Ten thousand only) towards the registration charges and other expenses.
(xi) An amount of Rs. 25 crores is sanctioned as the unit capital contribution to the Trust. Further
contribution shall be brought in by the Government as and when needed and appropriate provision in
the Budget shall be made. The units shall be allotted in favour of the Governor of Andhra Pradesh.
227
(xii) A Management Agreement shall be executed between APUIF and the Fund Manager. Annexure-2
provides the approved Management Agreement Document. Principal Secretary/Secretary to
Government Municipal Administration and Urban Development is authorised to execute and sign
the Management Agreement on behalf of the Board of Trustees of APUIF and the Managing
Director/Head of the Fund Manager, on behalf of the Fund Manager.
B. Restructuring of APUFIDC Ltd.
(i)
Andhra Pradesh Urban Finance and Infrastructure Development Corporation Ltd.,
(APUFIDC) has been incorporated on January 12, 1993, as a Government Company under Section 617
of the Companies Act, 1956. The Company is presently carrying on the agency function for
channelising the funds under various schemes, being implemented by the urban local bodies.
(ii) Andhra Pradesh Urban Finance and Infrastructure Development Corporation Ltd., is appointed as
an Asset Management Company/Fund Manager for APUIF subject to approval of APUIF Board of
Trustees.
(iii) Andhra Pradesh Urban Finance & Infrastructure Development Corporation Ltd., shall be
restructured as per the approved amendments to the Memorandum and Articles of Association of
Andhra Pradesh Urban Finance & Infrastructure Development Corporation Ltd.,.
(iv) The assets and liabilities of Andhra Pradesh Urban Finance & Infrastructure Development
Corporation Ltd., shall be transferred to APUIF, after conducting appropriate due diligence with
reference to valuation of assets, its quality and applying appropriate provisioning norms on the loan
portfolio. Till such time the new financial intermediary viz., APUIF, becomes operational and the
assets and liabilities are duly transferred, Andhra Pradesh Urban Finance & Infrastructure
Development Corporation Ltd., shall continue to carry on the existing functions.
(v) The Government appoint the following officials as the Board of Directors for the Andhra Pradesh
Urban Finance & Infrastructure Development Corporation Ltd., (AMC):
Principal Secretary to Government, Finance Department
Principal Secretary/Secretary to Government,
MA & UD Department
Commissioner and Director of Municipal Administration
Engineer-in-Chief (Public Health)
Director, Town and Country Planning
Representatives from Financial Institutions
Managing Director, APUFIDC
Chairman
Director
Director
Director
Director
Director
Managing Director
(vi) Separate orders will be issued pertaining to the Staffing of Andhra Pradesh Urban Finance &
Infrastructure Development Corporation including new Managing Director.
II. Operational Procedures for Andhra Pradesh Urban Finance & Infrastructure Development
Corporation Ltd.,
228
i.
APURMS Project Components shall have the following Components: a) Legal and
Institutional Reform Component b) Municipal Capacity Enhancement Component, c)
Urban Infrastructure Investment Component and d) Project Management Component.
ii.
Government also approve the Project Funds Access Criteria for ULBs as provided in
Annexure-3.
iii.
Approval is also accorded for the Operational Procedures for APURMS Project as
detailed in Annexure-4.
Lending policy under the project will be issued separately.
iv.
III. Creation of Municipal Strengthening Unit under Commissioner and Director of Municipal
Administration.
i.
ii.
A Municipal Strengthening Unit (MSU) is constituted under the Commissioner and
Director of Municipal Administration to coordinate reforms with all the Urban Local
Bodies and concerned Government and Non-Government Agencies/Institutions.
Separate orders will be issued for the Staffing of Municipal Strengthening Unit
including appointment of a Project Director.
7.
Secretary, Municipal Administration and Urban Development Department is authorised
to undertake all actions incidental to the formation and registration of the Trust, Board of
Trustees, Restructuring of Andhra Pradesh Urban Finance & Infrastructure Development
Corporation Ltd., setting up a Municipal Strengthening Unit under Commissioner and Director
of Municipal Administration and operationalising the Andhra Pradesh Urban Reform and
Municipal Services Project.
8.
This order issues with the concurrence of the Finance Department vide their
C.No.493/PFS/2005, dated 14.2.2005.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
VEENA ISH
SECRETARY TO GOVERNMENT
To
The Commissioner and Director of Municipal Administration, Hyderabad.
The Principal Secretary to Government, Finance Department.
The Principal Secretary to Government, Planning Department.
The Principal Secretary to Government, Housing Department.
The Secretary to Government, MA & UD Department.
The Managing Director, APUFIDC, Hyderabad.
The Engineer-in-Chief (Public Health), Hyderabad.
The Director of Town and Country Planning, Hyderabad.
Copy to:
The P.S. to Chief Secretary to Government.
The Finance (Expr.M&F) Department.
The Finance (BG) Department.
The Public Enterprises Department.
The P.S. to Hon’ble M(MA).
The P.S. to Secretary to Government(S), MA & UD Department.
229
The P.S. to Secretary to Government(V), MA & UD Department.
SF/SC
//FORWARDED BY ORDER//
ASSISTANT DIRECTOR
ANNEXURE-1
(G.O.Ms.No.72, MA & UD (UBS) Department, dated 18.02.2005)
ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
TRUST INDENTURE
ARTICLE I
ARTICLE II
ARTICLE III
ARTICLE IV
ARTICLE V
ARTICLE VI
TABLE OF CONTENTS
DEFINITIONS
Section 1.1
Definitions
Section 1.2
Interpretation and Construction
NAME AND OBJECTIVES
Section 2.1
Name of the Trust
Section 2.2
Mission Statement
Section 2.3
Objectives of the Trust
APPOINTMENT AND DECLARATION
Section 3.1
Appointment
Section 3.2
Declaration
THE TRUSTEE
Section 4.1
Acceptance of the Trust
Section 4.2
Responsibilities of the Trustee
Section 4.3
Trustees’ Remuneration,
Compensation and Indemnity
Section 4.4
Trustee may rely on writings
Section 4.5
Construction of ambiguous provisions
Section 4.6
Term of office of the Trustee
Section 4.7
Appointment of new Trustee
Section 4.8
Discharge of Trustee
Section 4.9
Merger of Trustee
DUTIES OF THE TRUSTEE
Section 5.1
Financing
Section 5.2
Management Agreement
Section 5.3
Due Diligence
Section 5.4
Operations
POWERS OF THE TRUSTEE
Section 6.1
Description and Regulation
Section 6.2
Restrictions and Release of Power
Section 6.3
Delegation
230
2
ARTICLE VII
RIGHTS OF THE TRUSTEE
Section 7.1
Right to Advice
Section 7.2
Charging Expenses
Section 7.3
Protection against documents and
certain acts
ARTICLE VIII
LIABILITY OF TRUSTEE
Section 8.1
Acts done in good faith
Section 8.2
Investment of Trust Fund
Section 8.3
Negligence
ACCOUNTS AND AUDIT
Section 9.1
Accounts
Section 9.2
Furnishing periodical statements
Section 9.3
Audit
Section 9.4
Appointment of Auditors,
Remuneration, etc.
TRUST FUND
Section 10.1
Contributions
Section 10.2
Additional Contribution
Section 10.3
Borrowings
Section 10.4
Apportioning Capital and Income
Section 10.5
Distribution of Trust Fund
STATUS OF THE TRUST
Section 11.1
Tenor of the Trust
Section 11.2
Extinction of the Trust
Section 11.3
Revocability
Section 11.4
Official Seal
AMENDMENTS AND SUPPLEMENTS
Section 12.1
With the written consent of the
Settlor
Section 12.2
Amendments by the Trustee
SCHEDULES
Section 13.1
Counterparts
Section 13.2
Schedule
MISCELLANEOUS PROVISIONS
Section 14.1
Preliminary expenses
Section 14.2
Overriding exceptions
Section 14.3
Article ineffective or void
Section 14.4
Overriding effect on provisions
Section 14.5
No rights conferred on others
Section 14.6
Invalid provisions disregarded
Section 14.7
Notices to parties
Section 14.8
Successors and Assigns
Section 14.9
Headings for convenience
Section 14.10
Applicable Law
ARTICLE IX
ARTICLE X
ARTICLE XI
ARTICLE XII
ARTICLE XIII
ARTICLE XIV
231
ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
TRUST INDENTURE
THIS TRUST INDENTURE EXECUTED AT HYDRABAD ON THIS____DAY OF __________TWO THOUSAND
AND FIVE (Pursuant to G.O. No.72, of Municipal Administration and Urban Development (UBS)
Department dated 18.02.2005)
BY
THE GOVERNOR OF ANDRA PRADESH, represented by the Principal Secretary to Government
of Andhra Pradesh, Finance Department, having its administrative headquarters at the A.P.
Secretariat,Hyderabad-500 022, hereinafter called “the SETTLOR”, OF THE ONE PART
IN FAVOUR OF
The following TRUSTEES of the other part, represented by the Principal Secretary/Secretary to
Government of Andhra Pradesh, Municipal Administration and Urban Development Department
which expression unless repugnant to or inconsistent with the context, mean and include its
successor or occupying the post by designation
Chief Secretary to Government of Andhra Pradesh
Chairman
Principal Secretary to Government, Finance Department
Trustee
Prl. Secretary / Secretary to Government, MA & UD Department Trustee
Principal Secretary to Government, Planning Department
Trustee
Principal Secretary to Government, Housing Department
Trustee
Commissioner and Director of Municipal Administration
Trustee
Managing Director, APUFIDC
Secretary of Trust
The above Trustees shall be collectively called the Board of Trustees who would act as the
Board of Management to administer the Fund (APUIF)
WITNESSETH
1. WHEREAS the basic civic services in the urban areas are provided by the local
bodies. The obligatory functions of the local bodies include provision of water supply, roads,
drainage, Solid Waste Management, Street Light, Sewerage, Sewage disposal, health services
etc. In order to bridge the widening gap between demand and supply for the civic services,
large amount of investments on providing infrastructure are required.
The local bodies are under considerable strain to maintain and augment the existing
infrastructure level and they look forward to assistance from various sources.
232
2.WHEREAS, with the object of fulfilling the above said requirements, the SETTLOR for
the purpose of financing infrastructure projects in the State of Andhra Pradesh undertaken by
Urban Local Bodies, Statutory Bodies, Public Sector Undertakings and Private Investors has
noted the need for providing cost effective finance for urban infrastructure, through direct
loans, grants, equity and also provide for raising resources on a pooled basis, also provide
new credit enhancements for achieving the objective of low cost finance for the urban sector.
3.WHEREAS the SETTLOR for this purpose has decided to set up a trust to serve the
public purpose and as an entity not for private profit and for playing an important roll for
common good. This trust shall be named as ANDHRA PREDESH URBAN INFRASTRUCTURE
FUND
4
WHEREAS the SETTLOR being desirous of establishing the WSPF has placed under the
control of the TRUSTEE the sum of Rs.10,000/- (Rupees ten thousand only), which sum is
hereinafter referred to as the “INITIAL SETTLEMENT”.
5.
WHEREAS the SETTLOR being the only contributor to the Trust, this Trust will be fully
owned by the Government of Andhra Pradesh
6.
WHEREAS the trust is established as a public trust under the Indian Trusts Act 1882 as
an infrastructure development financial intermediary.
7.
WHEREAS the GoAP has accorded approval for setting up the Trust under the Indian
Trusts Act 1882 vide G.O.Ms.No. 72, dated: 18.2.2005 of Municipal Administration and Urban
Development (UBS) Department.
NOW THIS TRUST INDENTURE FURTHER WITNESSETH AS FOLLOWS:
ARTICLE – I
DEFINITIONS
Section 1.1 Definitions: - In this Indenture (except as otherwise expressly provided
for or unless the context otherwise requires) the terms used as defined terms in the recitals
hereto shall have the same meanings throughout this Indenture and in addition the following
terms shall have the meanings specified below.
a.
“Accrual Period”
means a financial year beginning April 1 and ending March 31 of the following year or part period
thereof ending on March 31.
b.
Asset Management Company:
means any company or body or undertaking, appointed to manage the funds/assets of the Trust.
c.
“Auditors”
means any independent auditor(s) viz. one or more firms of Chartered Accountant(s) appointed
by the TRUSTEE from time to time.
233
d.
“Beneficiaries/ Contributors ”
means the Government of Andhra Pradesh and or any of the public sector
undertakings, Government Agencies, authorised in this behalf by the Government of
Andhra Pradesh.
e.
“Contribution”
means any property paid or transferred or agreed to be paid or transferred to the Trust by the
Contributors.
f.
“Contribution Fund”
means (i) Contributions and (ii) any net income or surplus derived by the Trust pursuant to the
provisions hereof.
g. “Fund Manager”
means the legal entity appointed by the Management Agreement for managing the Trust Fund.
h. “ GoAP”
means the Government of Andhra Pradesh. The Governor of Andhra Pradesh, is represented by
the Secretary, Municipal Administration and Urban Development Department, having its
administrative headquarters for the time being at the A.P. Secretariat, Hyderabad-500 022 and
its successors.
i.
“Indenture”
means this Indenture of Trust. This also means the Deed of Trust.
j.
“Infrastructure Projects”
means and includes all infrastructure projects viz., utility infrastructure, economic
and commercial infrastructure, social infrastructure, area development infrastructure,
etc.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
Water supply
Solid Waste Management (including waste recycling)
Sanitation
Storm Water Drains
Roads
Bridges (including Road Over Bridges, Road Under Bridges, causeways, pedestrian
cross bridges etc)
Street Lighting
Drainage
Sewerage
Sewage Disposal
Health Services
Transportation Systems (Including LRTS and MRTS)
Bus / Truck Terminals
234
n. Parking Lots
o. Sites and Services
p. Markets, Shopping Complexes, Industrial Parks, Trade Centres, Technology Parks,
Tourism Infrastructure etc.)
q. Parks , Play Grounds and Stadia
r. Health, Educational and Recreational amenities
s. Area Development (including new townships, growth centers,etc)
t. Urban Forestry and protection of environment
u. Slum improvement and upgradation
v. Burial grounds Cremation Ghats/Grounds and Electric Crematoria
w. other remunerative and non-remunerative urban infrastructure projects aimed at
public utility.
The Trust has its core objective of planning ,development and improvement of
ULBs.
k. “Investments”
means monies lent / to be lent by the TRUST for Infrastructure Projects and includes monies
placed by the Trust in instruments such as Government Promissory Notes or other Government
Securities, stock or shares in any banking company or other Central or State public company, or
stocks, funds, shares, debenture, debenture stock, commercial papers, financial papers, short
term or long term corporate deposits, securitised debt, mortgage, bonds, obligations and
securities of any description whatsoever.
l. “Lender”
means any person /s who has given monies to the Trust, by way of loan.
m. “Loan”
means the monies lent to the Trust and includes debentures/bonds/any other financial
instruments .
n. “Management Agreement/s”
means the Management Agreement/s between the Asset Management Company
/Funds Manager and the TRUSTEE
o. “Net Income”
means in relation to any Accrual Period, the Net Income earned by the Trust as shown in its
audited statements of account for that Accrual Period, net off all costs, taxes and expenses, Fund
Manager’s fees, remuneration and interest on the borrowals by the Trust.
p. “Projects”
means the infrastructure projects mentioned in (j) above
q. “Property”
means money and includes both initial as well as additional property hereto comprising of real,
personal movable or immovable property of any description and wheresoever situate and in
relation to rights and interests includes those rights and interests whether vested, contingent, or
future.
235
r. “Rating Agency”
means any recoganised credit rating agency maintaining a credit rating on the bonds
or any other financial debt instruments
s. “State”
means the Government of Andhra Pradesh or the jurisdiction thereof.
t. “the Regulations”
means the Regulations as set out in the Schedule hereunder.
u. “the Trust”
means the Trust created by the Settlor
v. “the Trust Fund”
means and includes the aggregate of
a)
b)
c)
d)
e)
f)
the Initial Settlement
the Contribution
Investments
Loans
Receivables and
all other properties of the Trust.
w. “the Trust Period”
means the period from the date hereof until such date till it is reverted by the Settlor.
x.“ Unit”
means one unit of the nominal value of Rs.1,00,000/- (Rupees one lakh only) evidencing
beneficial interest in the Trust Fund and includes a “Fraction Certificate” evidencing beneficial
interest in the Trust Fund of the value stated therein but less than Rs.1,00,000/- (Rupees One
lakh only).
y.“APUIF Representative “
means the Chief Executive , Secretary or any other officer of APUIF or other person
designated by certified resolution of the governing body of APUIF to act for any of the
forgoing either generally or with respect to the execution of any particular document
or other specified maters, a copy of which shall be on file with the Trustee
Section 1.2 : Interpretation and Construction:
f.
The Words : ”hereof “, “herein”, “hereto”, “hereby” and “hereunder” refer to the entire
Indenture.
g. Every
“request”,
“requisiton”,”order”,”demand”
,”application”,”direction”,
“notice”,”statement”, “certificate”,”consent”, or similar action hereunder shall, unless the
form there of is specifically provided be in writing and shall be signed by a APUIF
representative in the case of APUIF and by the authorised officer in the case of one of the
borrowers.
236
h. All words and terms importing the singular number shall where the context requires import
the plural number and vize versa
d. Words importing the masculine gender shall include female and neutral gender
e.
The headings and sub-headings to this Indenture are inserted only for reference to the
provisions hereof and shall not affect the construction of such provisions.
ARTICLE - II
NAME AND OBJECTS OF THE TRUST
Section 2.1: Name
The name of this Trust shall be ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
Section 2.2: Mission Statement
APUIF would facilitate the sustained development of urban infrastructure in the State
by enabling urban local bodies and other local entities to have access to low cost capita, by
supporting urban sector reforms to make them creditworthy and eventually access the capital
market on their own, and by facilitating public-private community initiative for building urban
infrastructure.
Section 2.3: Objects:The objects of the Trust are:The main objectives of the Trust will be as under apart from the objectives mentioned
in the draft Trust Deed.
a) Fund urban infrastructure projects, which improve the living standards of urban
population, including the urban poor.
b) Assist urban local bodies and other agencies providing urban infrastructure in
accessing the capital market, individually or jointly through pooled finance
arrangements.
c) Operate a complementary window, to assist urban local bodies and other agencies by
way of grants, in addressing the problems of the urban poor and the issues of
environmental conservation.
d) Facilitate private sector participation in infrastructure through joint ventures and
through formats such as public-private-community partnerships.
e) Capacity building, including financial management of urban local
bodies to enable them to access debt finance from the market.
In tune with the above, the objects in detail are as under:
(i) To establish a financing structure. Which enables low cost urban projects in the Sate
of Tamil Nadu. To mobilise resources for the infrastructure projects under pooled finance
structure; to borrow, or raise monies or loans or receive grants or accept contributions in
such manner and on such terms, conditions and securities as the Trustee in their discretion
deem fit from time to time.
237
(ii) To provide financial assistance to Urban Local Bodies, Statutory Boards, Public Sector
Undertakings for setting up infrastructure projects in the State of Tamil Nadu. The Trust may also
provide sub-loans or take equity position in the infrastructure projects sponsored by Private
Investors when the Infrastructure Projects are considered strategically important. The ultimate
goal of the Trust is to mobilize and chanalise cost effective resources including private financing
into urban infrastructure investment, contributing to the improved living standards of urban
population.
The Trust will only invest in Infrastructure Projects that at the time of the
investment comply with all relevant State and Central Government legislation regarding
environmental and social protection.
(iii) to provide financial assistance in any manner for:
(a). strengthening and upgradation of Urban Local Bodies’ financial, technical,
managerial and service capabilities, training, and computerisation of municipal
accounts and basic records e.g. birth and death register;
(b) meeting of cost of Resettlement and Rehabilitation related to sub-project
to be financed by the Trust;
(c) financing projects which directly benefit urban low income populations
such as water supply, sanitation, storm water drain, street lighting, sewerage systems
etc. and
(d) meeting cost of project report preparation for the projects to be financed
by the Trust.
(iv) To enable market access for ULBs, Statutory Board, Public Sector Undertakings, for
setting up Infrastructure Projects in the State of Tamil Nadu with a cost effective finance,
including pooled financing.
(v) To guarantee the performance of any contract or obligations and the payment on
any bond issue or mobilisation of resources under the resource raising structure.
(vi) To subscribe for, underwrite, acquire, hold and dispose of shares, stocks,
debentures, debenture stocks, bonds, mortgages, obligations, securities of any kind issued or
guaranteed by any Company (body corporate or undertaking) of whatever nature and
industry, Government, trust, Municipal, Local Authority or body of whatever nature.
(vii) to encourage to facilitate, participate, in any manner and to contribute, fund
partially or fully the infrastructure projects involving public private partnership and Build –
Own- Operate - Transfer and similar other types of infrastructure projects.
(viii) To invest any money of the Trust, in any investments as may be thought proper
and as may be necessary. The income from such investments shall be utilised to fulfill the
objectives of the Trust.
(ix) To act as nodal or any other agencies on behalf of the Central and or the State
Governments for water, sanitation and or any other infrastructure projects
238
(x) To do all other things necessary and conducive to the attainment of all these
objects.
(xi) To make grants from time to time to Urban Local Bodies either directly or through
any of the Grant Funds fully owned by GoAP out of the Trust funds for meeting the objectives
of those specified Grant Fund guidelines.
ARTICLE - III
APPOINTMENT AND DECLARATION
Section 3.1: APPOINTMENT
The SETTLOR hereby appoints the TRUSTEE as the Trustee of the Trust, which is hereby created,
and the TRUSTEE accept such appointment on the terms and conditions mentioned herein.
Section 3.2: DECLARATION
The TRUSTEE shall stand possessed of the Trust Fund upon which and subject to the powers and
provisions herein declared and contained concerning the same and the TRUSTEE shall have the
power at any time or times during the Trust Period to accept any property whether of an onerous
nature or not from any person or persons by the provisions of any other trust or otherwise to the
intent that the same shall be held by or on behalf of the TRUSTEE as an accretion to the Trust
Fund.
ARTICLE - IV
THE TRUSTEE
Section 4.1: Acceptance of the Trust
The Trustee accepts and agrees to execute the Trust hereby created. The Trustee shall not be
required to any contribution to the Trust Fund
Section 4.2: Responsibility of the Trustee
The Trustee may exercise any of its trusts or powers and perform any duties required
of it under this Indenture or under any of the loan agreements either directly or by through agents or
attorneys and shall be entitled to the advice of counsel concerning all matters. The Trustee shall not
be responsible for the default or misconduct of any such agent or attorney (excluding officers and
employees of the Trustee) appointed by it with reasonable care. The Trustee shall be responsible for
performing such duties and only such duties of the Trustee as are specifically provided in this
Indenture and no implied duties or liabilities shall be read into this Indenture against the Trustee.
The permissive rights of the Trustee to do things enumerated in this Indenture shall not be
constructed as a duty. Provided that the Trustee shall have performed such duties as are specifically
required of it in this Indenture, the Trustee shall not be liable for any action taken or omitted to be
taken on the written advice of counsel selected by the Trustee with reasonable care. The Trustee
shall not be answerable for the exercise of any discretionary power in good faith under this
239
Indenture, or for any error of judgement made in good faith by an officer of the Trustee in exercising
such power, or for any discretionary action taken or omitted to be taken in good faith under this
Indenture, excepting only its own misconduct or negligence.
Section 4.3: Trustee’s remuneration, compensation and indemnity:
The Trustee shall not be entitled to any remuneration. APUIF shall pay the Trustee
reasonable compensation for its services hereunder, its reasonable expenses including its counsel
fees and expenses, if any, throughout its tenure as shall be agreed upon by APUIF and the Trustee.
Section 4.4: Trustee may rely on writings:
The Trustee shall be protected and shall incur no liability in acting in good faith upon
any requisition, resolution, notice, request, consent, certificate, statement, affidavit, or other
document which it shall in good faith believe to be genuine and to have been passed or signed by the
proper Board or persons or to have been prepared and furnished pursuant to any of the provisions of
this Indenture and the Trustee shall be under no duty to make any investigation or inquiry as to any
statement contained or matters referred to in any such instruments, but may accept and rely upon
the same as conclusive evidence of the truth and accuracy of such statement.
Whenever in the administration of this Indenture, the Trustee deems it desirable that
a matter be proved or established before it takes, suffers or omits any action, the Trustee may
request and may rely upon an APUIF certificate or a certificate of any of the borrowers. No provision
of this Indenture or the Loan Agreement shall require the trustee to expend or risk its own funds or
otherwise inure any financial liability in the performance of its duties hereunder or under the loan
agreement or in the exercise of any of its rights or powers.
Section 4.5: Construction of Ambiguous Provisions:
The Trustee may reasonably construe many of the provision of this Indenture insofar
as the same may appear to be ambiguous or inconsistent with any other provisions hereof; and any
construction f any such provisions thereof by the Trustee in good faith and on written advice of
counsel. The Trustee shall give APUIF prompt notice of any intention to make such construction.
Section 4.6: Term of office of the Trustee:
The individual Trustee shall hold office till the official post is held or until the
termination of the Trust or the discharge of the Trustee, whichever is earlier. The Individual trustee
may resign , only with the prior approval of the GoAP.
Section 4.7 - Appointment of new Trustee
a.
The Trustee may be removed and replaced by new Trustee by the Settlor.
(Other than on official transfers of the posts held by them)
b.
Every new Trustee shall have the powers, authorities and discretions and shall
in all respects act and be liable as if originally appointed as a Trustee under this Indenture.
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Section 4.8 - Discharge of Trustee: The Trustee shall stand discharged from its office only on the orders of the Settlor.
Section 4.9 – Merger of Trustee
Any corporation or association into which the Trustee may be merged or with which it
may consolidated, or any corporation or association resulting from any merger or consolidation to
which the Trustee shall be a party, or any corporation or association to which the trustee shall sell or
otherwise transfer all or substantially all of its corporate business, shall be the successor trustee
under this Indenture, without the execution or filing of any paper or any further act on the part of
the parties hereto, anything herein to the contrary notwithstanding; provided however that the
trustee shall give APUIF at least 30 days prior written notice of the merger, consolidation, sale or
other transfer and that at any time prior to such merger, consolidation, sale or other transfer APUIF
may by written notice by the trustee, remove the trustee and appoint a successor. The above actions
of the trustee shall be done with the prior approval of the Settler.
ARTICLE - V
DUTIES OF THE TRUSTEE
Section 5.1 – Financing
The Trustee shall provide financial assistance only in relation to Infrastructure Projects
and also lay down policies relating to credit approval and investments, PROVIDED HOWEVER, if no
Infrastructure Project has been identified for making investments and if the Trustee, deems it fit in
the interest of the Beneficiaries, the Trustee may invest the Trust Fund, in such manner as the
Trustee deems fit.
Section 5.2 – Management Agreement
The Trustee shall enter into the Management Agreement whereby the TRUSTEE shall
delegate such of its powers, as it deems appropriate to the Fund Manager to enable the Fund
Manager to manage the Trust Fund.
Section 5.3 – Due diligence: The Trustee shall at all times exercise due diligence in carrying out its duties for
protecting the interests of the Beneficiary.
The Trustee shall ensure that all transactions entered into by the Fund Manager have
been properly entered into in accordance with this Indenture of Trust.
The Trustee shall supervise operations of the Fund Manager in relation to the Trust
Fund.
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Section 5.4 – Operations: The Trustee shall hold the Trust Fund in the name of the Trust and shall enable for
opening and operating of bank accounts on behalf of the Trust, by the Fund Manager.
ARTICLE - VI
POWERS OF THE TRUSTEE
Section 6.1 – Description: The Trustee shall have the power, discretion, rights and immunities set out in the
Regulations given in the Schedule hereunder.
Section 6.2 – Restriction and Release of Power: The Trustee shall have the power at any time or times by Indenture or Indentures;
irrevocable or revocable during the Trust period to release or to any extent restrict the future
exercise of any powers hereby or by Law conferred on it notwithstanding the fiduciary nature of any
such powers.
Section 6.3 – Delegation: The Trustee may, from time to time, delegate to any committee, or any other person any
of its powers and duties under this Indenture, provided, however, the Trustee shall remain liable for
any such delegate’s acts of omission or commission to the extent the Trustee themselves would have
been liable for such acts. The Trustee may from time to time, authorise any of the Trustee to act on
its behalf and sign documents.
ARTICLE - VII
RIGHTS OF THE TRUSTEE
Section 7.1 – Right to Advice: The Trustee may, in the discharge of its duties, act upon any advice obtained from any
bankers, accountants, brokers, lawyers or other consultants, professionals or experts acting as
advisers to the Trustee. The Trustee shall not be bound to supervise the action of such advisers or
verify the advice or information received from them and the Trustee shall not be liable for anything
bonafide done or omitted to be done or suffered in reliance upon such advice or information nor be
responsible for any loss occasioned by so acting nor for the consequences of any bonafide mistake,
oversight or error of judgment on the part of such advisers.
Section 7.2 – Charging of Expenses: The Trustee shall be entitled to charge the Trust Fund with the following expenses:
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a. all expenses properly incurred in the operation or execution of the Trust and for the
realisation, preservation or benefit of the investments and assets comprising the Trust Fund
and for the protection of the interests of the Beneficiary.
b. all expenses (including expenses incidental to execution and / or registration of any
agreement or other Indentures) incurred by the Trustee for obtaining the Contributions and
or Loans or any form of raising of resources.
c. all expenses in connection with any legal proceedings by or against the Trust or concerning the
affairs of the Trust including professional fees and costs of any legal adviser.
d. all legal and statutory expenses incurred in the operation or execution of the Trust including all
levies, duties and other charges paid / payable in connection with the issue of Units and the
Unit Certificates;
e. all expenses in connection with the holding of its meetings, and the fees of the Fund
Manager.
Section 7.3 – Protection against documents and certain acts: Any request or direction of APUIF mentioned herein shall be sufficiently evidenced by
a certificate of a APUIF representative and any resolution shall be sufficiently evidenced by a
resolution certified by a APUIF representative.
a. The Trustee shall not be bound to make any investigation in to the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, direction,
consent, order or other paper or document furnished to it by APUIF. The Trustee at its discretion may
make further inquiry or investigation into such facts or matters as it may see fit , and if the Trustee
shall determine to make such further inquiry or investigation, it shall be entitled upon reasonable
notice and during regular business hours, to examine the books and records of APUIF.
b. Except as otherwise expressly provided herein, the Trustee shall not be required to
give or furnish any notice, demand, report, reply, statement, advice or opinion to any person, and
the trustee shall not incur any liability for its failure or refusal to give or furnish the same unless
obligated or required to do so by express provisions hereof.
c. In acting or omitting to act pursuant to any agreements, the Trustee shall be
entitled to all of the rights and immunities accorded to it under this Indenture.
d. The Trustee shall not be responsible for the use of any money disbursed by it to
others in accordance with this Indenture. The Trustee shall have no responsibility to insure or to
monitor the insuring of the project facilities.
ARTICLE - VIII
LIABILITY OF THE TRUSTEE
Section 8.1 – Acts done in good faith: -
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The Trustee shall not be liable on account of anything done in good faith, bonafide
with due diligence.
Section 8.2 - Investment of Trust Fund:
The Trustee shall only be chargeable for such monies, stocks, funds and securities as
the Trustee shall have actually received and shall not be liable or responsible for any banker, broker,
custodian or other person in whose hands the same may be deposited or placed nor for the
deficiency or insufficiency in the value of any investments of the Trust Fund nor otherwise for any
involuntary loss.
Section 8.3 – Negligence: The Trustee and every attorney or, agent appointed by the Trustee shall be entitled to be
indemnified out of the Trust Fund in respect of all liabilities, losses and expenses incurred in
execution of the Trust or any of the powers, authorities, and discretion’s vested in or delegated to
them other than those arising out of gross negligence and / or willful misconduct, provided however,
that, such indemnity shall not in any event exceed the total of the Contributions.
ARTICLE – IX
ACCOUNTS AND AUDIT
Section 9.1 – Accounts: The Trustee shall maintain and / or cause to be maintained by the Fund Manager
proper books of accounts, documents and records with respect to the Trust Fund to give a true and
fair picture of the affairs of the Trust.
Section 9.2 – Furnishing periodical financial statements: a. Unaudited financial statements of the Trust within 60 days of the conclusion of the
Trust’s respective Accrual Period and
b. Annual reports including audited financial statements of the Trust within 90 days of the
conclusion of the Trust’s respective Accrual Period and
c. Quarterly reports within 30 days of the end of each quarter providing narrative and
unaudited summary financial information regarding the Trust’s operations.
Section 9.3 – Audit: The accounts of the Trust shall be audited once a year by a qualified auditor. The audited
annual accounts are required to be placed before the Trustee for adoption
Section 9.4 – Appointment of Auditors, remuneration etc: -
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The Trustee shall appoint an independent auditor viz., a firm of Chartered
Accountants once a year for auditing the accounts of the trust for correctness and authenticity. This
is notwithstanding that the Comptroller and Auditor General of India (C&AG) may also carry out a
separate annual audit as per the relevant statutory provisions.
a. The first auditors of the Trust shall be appointed by the Trustee, within one month
from the date of execution of this Indenture.
b. The auditors may be removed and replaced by the Trustee by giving them three
months’ notice in writing.
c. The remuneration of the auditors shall be fixed by the Trustee
ARTICLE – X
TRUST FUND
Section 10.1 – Contributions: The Trust Fund consists of initial contribution made by the Settlor and the unit capital
contribution made by the contributors to the Fund. Apart from this, any net income or surplus
derived by the Trust will also form part of the contribution to the Fund, as reserves and surplus.
Section 10.2 – Additional Contributions :The Trustee can accept additional unit contribution made by the Settlor and other
contributors to the Fund.
Section 10.3 – Borrowings :The Trust Fund shall also include all types of the borrowings viz., short term and long
term and secured and unsecured. This also shall include market access by way of raising resources
through bond/debenture issues.
Section 10.4 – Apportioning between Income and Capital :The Trustee shall have the power to make such reserves out of the income or capital as
the Trustee deems proper for expenses, taxes and other liabilities of the Trust to pay from income or
from capital or to apportion between income and capital any expenses of making or changing
investments and of selling, exchanging including brokers commissions and charges and generally to
determine what part of the expenses of the Trust shall be charged to capital and what part to income
and to determine as between separate funds and separate parts or shares the allocation of income,
gains, profits, losses and distributions and so that any decisions of the Trustee whether made in
writing or implied from its acts shall so far as the law may permit be conclusive and binding on the
Beneficiary.
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Section 10.5 - Distribution of Trust Fund: The Trustee shall stand possessed of the Trust Fund and the net income thereof shall
accrue upon the Trust for the benefit of the Beneficiary and the Trustee shall make distribution to
the Beneficiary in their absolute discretion. Since the entire income accrue for the Beneficiary, GoAP,
which is no income of the trust is taxable.
ARTICLE – XI
STATUS OF THE TRUST
Section 11.1 – Tenor of the Trust: The period of the Trust shall commence from the date of this Indenture and it shall be
a continuing Trust entity till such date it is reverted by the Settlor.
Section 11.2 – Extinction of the Trust:The Trust is expected to be extinguished and liquidated its assets on the expiry of the
Trust Period, as and when decided by the Settlor.
Section 11.3 – Revocability: This Trust is revocable at the discretion of the Settlor. The Trust shall continues to
exist till such time as me be decided by the GoAP. At the time of extinguishments of the trust, all the
assets and liabilities of the Trust shall be transferred to GoAP.
Section 11.4 – Official Seal: The Trustee may if it thinks fit provide a Seal for the purpose of the Trust and shall have
power from time to time to destroy the same and substitute a new seal in lieu thereof, and
the Trustee shall provide for the safe custody of the Seal for the time being and the Seal shall
not be used except by the authority of the Trustee. The Seal shall be affixed to such
documents and instrument as the Trustee may direct from time to time.
ARTICLE – XII
AMENDMENTS AND SUPPLIMENTS
Section 12.1 – With the written consent of the Settlor: This Indenture may be amended or supplemented at any time and from time to time by a
supplemental Indenture executed by the Trustee with the written consent of the Settlor broadly in
respect of the following aspects:
a.
b.
c.
alter the objects of Trust,
include any contributors and increase the Contributions,
amend this Article
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Section 12.2 – Amendment by the Trustee: In addition to any amendments otherwise authorised hereby, this Indenture may be amended from
time to time by the Trustee as follows:
a.
b.
c.
d.
e.
f.
to add to the representations, duties or obligations of the Fund Manager or surrender
any rights or power granted to the Fund Manager herein;
to cure any ambiguity or correct or supplement any provisions hereof which may be
inconsistent with any other provision hereof or correct any printing, stenographic or
clerical errors or omissions; or
to reflect any change in the amount of Contribution in accordance with the terms of
this Indenture.
to make such provision in regard to matters or questions arising under this Indenture
as may be necessary or desirable and which shall not adversely affect the interest of
both the parties.
to modify, eliminate or add to the provisions of this Indenture to such extent as shall
be necessary to comply with any applicable laws of the Government of India or the
State.
any other amendment, in the opinion of the Trustee is required for better operation of
the Trust.
ARTICLE – XIII
SCHEDULES
Section 13.1 – Counterparts: This Indenture may be executed in any number of counterparts, each of which when
so executed and delivered shall be an original; but such counterparts shall together constitute but
one and the same instrument.
Section 13.2 - Schedule: The Schedule hereto shall form an integral part of this Indenture.
ARTICLE – XIV
MISCELLANEOUS PROVISONS
Section 14.1 – Preliminary Expenses: The Trustee shall have power to pay out of the Trust Fund all expenses of whatever
nature incidental to the creation of this Trust.
Section 14.2 – Overriding Exceptions: -
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Notwithstanding anything herein contained no power or provision hereby or by law
conferred upon the Trustee shall be exercised in such a way as to infringe any rule against
perpetuities, which may become applicable hereto
Section 14.3 – Article Ineffective or Void: If any Article/s or any part thereof is or are declared to be ineffective, inoperative or
void, the same shall not affect the validity of this Indenture or the other part of such Article/s as the
case may be.
Section 14.4 – Overriding Effect: In case of any conflict between the provisions of this Indenture and the Schedule
hereunder or any other Indenture or document, the provisions of this Indenture shall prevail.
Section 14.5 – No rights conferred on others:Nothing herein contained shall confer any rights upon any person other than the
parties hereto.
Section 14.6 – Invalid provisions disregarded: In case any provision in this Indenture or the Bonds shall for any reason be held
invalid, unlawful, or unenforceable in any respect, this Indenture shall be construed as if such
provision had never been contained herein.
Section 14.7 – Notices to parties: Notice hereunder shall be effective upon receipt and shall be given in writing ( or by
telephone confirmed by a writing received ) by facsimile transmission, personal service or electronic
media mail, etc to
Settlor for Andhra Pradesh Urban Infrastructure Fund
The Principal Secretary to the GoAP
Finance Department,
A.P Secretariat
Hyderabad – 500 022
The Trustee:
Principal Secretary/Secretary to Government, MA & UD Department,
A.P Secretariat
Hyderabad – 500 022
Section 14.8 – Successors and Assigns: -
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All the covenants, promises and agreements in this Indenture contained by or on
behalf of APUIF, or by or on behalf of the Trustee, shall bind and inure to the benefit of their
respective successors and assigns, whether so expressed or not.
Section 14.9 – Headings and Convenience: The descriptive headings in this Indenture are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provision hereof.
Section 14.10 – Applicable Law: The Indenture shall be governed by and construed in accordance with the laws of the
Government of India and of the State.
THE SCHEDULE herein below referred to as “REGULATIONS”
1.
GENERAL POWER: SUBJECT always to any restrictions expressly contained in this Indenture the Trustee shall in
relation to the Trust Fund have all the same powers as a natural person acting as the
beneficial owner of such property and such powers shall not be restricted by any principle of
construction or rule or requirement of the Proper Law relating to this Trust save to the extent
that such is obligatory but shall operate according to the widest generality of which the
foregoing words are capable notwithstanding that certain powers are hereinafter more
particularly set forth.
2. POWERS OF INVESTMENT:The Trust Fund shall be managed by the Fund Manager in accordance with the investment
objectives, policies and restrictions set forth in the Management Agreement.
And in the exercise of the powers herein contained the Trustee shall not be under any
duty to see that the value of the Trust Fund or any part or parts thereof is enhanced in any
way nor shall the TRUSTEE be liable for any failure in that respect whatsoever.
3. TRUSTEE NOT BOUND TO INTERFERE IN BUSINESS OF URBAN LOCAL BODIES, STATUTORY
BOARDS OR PUBLIC SECTOR UNDERTAKINGS OR PRIVATE INVESTORS IN WHICH TRUST IS
INTERESTED: a. The Trustee shall leave the administration, management and conduct of the business and
affairs of such Urban Local Boards or Statutory Boards or Public Sector Undertakings or
Private Investors to the directors, officers and other persons authorised to take part in the
administration, management or conduct thereof and the Trustee shall not be under any duty
to supervise such, officers or other persons so long as the Trustee does not have actual
knowledge of any dishonesty relating to such business and affairs on the part of any of them.
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Notwithstanding such restrictions, the Trustee may advice the Urban Local Bodies / Statutory
Boards to restructure their financial / operating parameters to enable the Urban Local Bodies
/ Statutory Boards to become creditworthy in the long run and enable the Urban Local Bodies
/ Statutory Boards to raise resources at market rates. In case of default by the borrowers the
Trustee shall have the powers to take appropriate action.
b. The Trustee shall not be liable in any way whatsoever for any loss to such Urban Local Boards
or Statutory Boards or Public Sector Undertakings or Private Investors or the Trust Fund or the
income thereof arising from any act or omission of its own, officers or other persons taking part
(whether or not authorised) in the administration, management and conduct of the business or
affairs of such Urban Local Bodies, Statutory Boards, Public Sector Undertakings or Private
Investors (whether or not any such act or omission by any such foregoing persons shall be
dishonest fraudulent negligent or otherwise)
c. Without prejudice to the generality of the foregoing the Trustee shall not be rendered
responsible in any way whatsoever for any default or other act or omission by the directors,
officers or other persons referred to herein hereof by any express notice or intimation of such
default or other act or omission and the Trustee shall not be obliged or required to make and
enforce any claim in respect of such a default or other act or omission and no person who is
or may become entitled hereunder shall be entitled to compel the making of such a claim.
4. POWER TO EMPLOY AGENTS: The Trustee shall have power instead of acting personally to employ and pay at the expense
of the Trust any agent in any jurisdiction whether attorneys, solicitors, brokers, banks, trust
companies or other agents whether associated or connected in any way with the Trustee or
not without being responsible for the default of any agent if employed in good faith to
transact any business or do any act required to be transacted or done in the execution of the
trusts hereof including the receipt and payment of moneys and the execution of documents.
5. POWER TO EMPLOY INVESTMENT ADVISOR OR MANAGER: Without prejudice to the generality of the foregoing the Trustee may, from time to time and
at any time employ, on such terms and on such payment, any person firm or company in any
jurisdiction, whether associated or connected in any way with the Trustee or not, as Fund
Manager for the purpose of managing the investment of the Trust Fund.
6. NOMINEES AND CUSTODIANS: The Trustee may permit any property comprised in the Trust Fund to be and remain
deposited with any person or persons in any jurisdiction and permit any such property to be
held or invested in the name of any person or persons in any jurisdiction instead of in the
name of the Trustee.
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7. POWER TO PAY DUTIES AND LEVIES: In the event of any taxes, or other duties or fees (and any interest or penalty chargeable
thereon) whatsoever becoming payable in any jurisdiction in respect of the Trust Fund or any
part thereof in any circumstances whatsoever the Trustee shall have power to pay the same.
8. POWER TO TAKE COUNSEL’S OPINION: The Trustee shall have power to take the opinion of legal counsel in any jurisdiction
concerning any difference arising or in any way relating to this Indenture or to Trustee’ duties
in connection with the Trust and to the extent that the Trustee acts in accordance with the
opinion of such counsel the Trustee shall not be liable for any loss to the Trust Fund which
may arise by or from so acting.
9. POWER TO BORROW, Etc.: The Trustee may, for and on behalf of the Trust, in exercise of any of the powers hereby or by
law given to it sell, lend or buy any property or borrow / raise monies, in any form, on such
terms and conditions as the Trustee may consider expedient and secure and discharge any
debt or obligation binding on the Trust in such manner as may be thought fit, and in particular
by mortgages of the undertaking(s) and all or any of the immovable and moveable property
(present and future) of the Trust or by the creation and issue, on such terms as may be
thought expedient, of bonds, debentures or debenture stock, perpetual or otherwise, or
other securities of any description or without security.
10. POWER TO EFFECT COMPROMISE: The Trustee shall have power to:
a. accept any property before the time at which it is transferable or payable
b. pay or allow any debt or claim on any evidence that it thinks fit
c..accept any composition or any security movable or immoveable for any debt or other
property
d.allow time of payment of any debt
e.compromise, compound, abandon, submit to arbitration or otherwise settle any debt,
account, claim or thing whatsoever relating to the Trust Fund or this Trust without being
liable for any loss to the Trust thereby occurring.
11. POWER TO INSURE PROPERTY: The Trustee shall have power to insure against any loss or damage from any peril, any
money or property forming part of the Trust Fund for any amount and to pay the premiums out the
Trust Fund.
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IN WITNESS whereof the parties hereto have executed this Trust Indenture (in TWO Sets) on the day
and year first hereinbefore mentioned: -
Signed and Delivered on behalf of the Settlor
(Name)
Principal Secretary, to Government of Andhra Pradesh
Finance Department,
A.P Secretariat
Hyderabad – 500 022
Witness:
(Name and Address)
Signed and Delivered on behalf of the TRUSTEE
(Name)
Principal Secretary/Secretary to Government of Andhra Pradesh
Municipal Administration and Urban Development Department
A.P Secretariat
Hyderabad – 500 022
Witness:
(Name and Address)
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ANNEXURE-2
(G.O.Ms.No.72, MA & UD (UBS) Department, dated 18.02.2005)
MANAGEMENT AGREEMENT
BETWEEN
ANDHRA PRADESH URBAN INFRASTRUCTURE FUND
AND
ANDHRA PRADESH URBAN FINANCE AND INFRASTRUCTURE DEVELOPMENT CORPORATION
LIMITED
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MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT EXECUTED AT HYDERABAD ON THIS______DAY OF _______
TWO THOUSAND FIVE
BETWEEN
ANDHRAPRADESH URBAN INFRASTRUCTURE FUND (APUIF), a trust formed under the Indian
Trusts Act 1882, having its Administrative Head Quarters at A.P. Secretariat Hyderabad – 500 022,
represented by the Principal Secretary to Government of Andhra Pradesh, Municipal Administration
and Urban Development Department, on behalf of the Board of Trustees, hereinafter referred to as
the TRUSTEE, which expression unless repugnant to or inconsistent with the context, mean and
include its successors-in-interest of the ONE PART.
AND
ANDHRAPRADESH URBAN FINANCE AND INFRASTRUCTURE DEVELOPMENT CORPORATION
LIMITED, a public limited company incorporated under the provisions of the Companies Act 1956,
having its Registered Office at Hyderabad 500 022, herein after called the “FUND MANAGER”, which
expression shall, unless repugnant to or inconsistent with the context, mean and include its
successors-in-interest of the OTHER PART.
WHEREAS
1. Government of Andhra Pradesh for the purpose of financing Infrastructure Projects in the State
of Andhra Pradesh, undertaken by Urban Local Bodies / Statutory Boards / Public Sector
Undertakings/ Private Investors has set up the “ANDHRA PRADESH URBAN INFRASTRUCTURE
FUND” (“APUIF”), a Trust within the meaning of the Indian Trusts Act, 1882, duly constituted by
the Trust Indenture dated ___________, 2005 registered as document No.___________in the
Office of the Registrar, Hyderabad.
2. Government of Andhra Pradesh, the Settlor of APUIF, has constituted the Board of Trustees and
appointed it as the TRUSTEE of the APUIF.
3. To ensure that the APUIF receives relevant professional and experienced investment advice and
the expertise in project financing and fund management, the TRUSTEE has decided to appoint
ANDHRA PRADESH URBAN FINANCE AND INFRASTRUCTURE DEVELOPMENT CORPORATION
LIMITED (APUFIDC), as the FUND MANAGER to manage the Trust Fund and the FUND MANAGER
has agreed to be so appointed.
4. The Government of Andhra Pradesh (GoAP) has accorded approval for setting up the Trust under
the Indian Trusts Act 1882 Vide G.O Ms No.72, dated 18.2.2005 of MA&UD (UBS) Department.
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5. The parties have decided to reduce the terms and conditions agreed upon into writing through
these presents: -
NOW THIS MANAGEMENT AGREEMENT
WITNESSETH AS FOLLOWS:ARTICLE – I
DEFINITIONS
Section 1.1. DEFINITIONS:
In this MANAGEMENT AGREEMENT wherever the context permits the following
word/s: a. “Accrual Period”
means a financial year beginning April 1 and ending March 31 of the following year
or part period thereof ending on March 31.
b. Asset Management Company
means any company or body or undertaking, appointed to manage the
funds/assets of the Trust.
c. “Auditors”
means any independent auditor(s) viz. one or more firms of
Chartered
Accountant(s) appointed by the TRUSTEE from time to time.
d. “Board”
Means the Board of Management of the Trust as constituted by GoAP.
d. ”Consents”
means all authorizations, consents, licences, permits, waivers, privileges,
acknowledgements, agreements, concessions, approvals from and filings with or
applications submitted to any Government Agency or any Person.
e. “Contribution”
means any Property paid or transferred or agreed to be paid or transferred to the
Trust by the Contributors.
f. “Contribution Fund”
means (i) Contributions and (ii) any net income or surplus derived by the Trust
pursuant to the provisions hereof.
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g. “Directives”
means any present or future policy, requirement, instruction, direction, order,
regulation or rule of any government Agency which is legally binding or which would
customarily be observed by a reasonable and prudent person, and any modification,
extension or replacement thereof from time to time in force.
h. “Government Agency”
means the Government of India, the Government of Andhra Pradesh or any regional
or municipal authority thereof, or other legislature, ministry, department,
Commission, Board, Authority, instrumentality, agency, political sub-division,
Corporation or Commission under the direct or indirect control of the Government of
India or Government of Andhra Pradesh or any political sub-division of either of them,
as to matters of policy or otherwise, owned or controlled by the Government of India
or the Government of Andhra Pradesh or any of their sub-divisions.
I.” Government Authorizations”
means all laws, ordinances, statutes, rules, orders, decrees, injections, licences,
permits, approvals, authorizations, consents, waivers, privileges, agreements and
regulations of any government Agency, as may be applicable, including Consents and
Directives as such are in effect as of the date hereof or as may be amended, modified,
enacted or revoked from time to time hereafter.
j. "GoAP"
means the Government of Andhra Pradesh. The Governor of Andhra Pradesh is
represented by the Secretary, Municipal Administration and Urban Development
Department, having its administrative headquarters at the A.P.Secretariat, Hyderabad
– 500 022 and its successors and assigns
k,“ Indenture”
means the Deed of Trust of Andhra Pradesh Urban Infra structure Fund.
l.
“Infrastructure Projects”
also refers to as “Projects” and means all physical structures and systems with
associated works in such sectors as
a. Water supply
x.
y.
z.
aa.
bb.
Solid Waste Management (including waste recycling)
Sanitation
Storm Water Drains
Roads
Bridges (including Road Over Bridges, Road Under Bridges, causeways, pedestrian cross
bridges etc)
cc. Street Lighting
dd. Drainage
ee. Sewerage
ff. Sewage Disposal
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gg. Health Services
hh. Transportation Systems (Including LRTS and MRTS)
ii. Bus / Truck Terminals
jj. Parking Lots
kk. Sites and Services
ll. Markets, Shopping Complexes, Industrial Parks, Trade Centres, Technology Parks,
Tourism Infrastructure etc.)
mm. Parks , Play Grounds and Stadia
nn. Health, Educational and Recreational amenities
oo. Area Development (including new townships, growth centers,etc)
pp. Urban Forestry and protection of environment
qq. Slum improvement and upgradation
rr. Burial grounds Cremation Ghats/Grounds and Electric Crematoria
ss. other remunerative and non-remunerative urban infrastructure projects aimed at
public utility.
The Trust has its core objective of planning, development and improvement of
ULBs.
m. Investments”
means monies lent / to be lent by the TRUST for Infrastructure Projects and includes
monies placed by the Trust in instruments such as Government Promissory Notes or other
Government Securities, stock or shares in any banking company or other Central or State
public company, or stocks, funds, shares, debenture, debenture stock, commercial papers,
financial papers, short term or long term corporate deposits, securitised debt, mortgage,
bonds, obligations and securities of any description whatsoever.
n.
“Lender”
means any person/s who has given monies to the Trust, by way of loan.
o. “Loan”
means the monies lent to the Trust and includes debentures /bonds/any other financial
instruments
p .“Management Agreement/s”
means this Agreement. (i.e. ) the Management Agreement between APUIF and APUFIDC.
Management Fee
Means fees, charges, and such other remuneration/compensation as may be mutually
agreed between the TRUSTEE and the Fund Manager to be paid/payable to the Fund
Manager
q. “Net Income”
means in relation to any Accrual Period, the Net Income earned by the Trust as shown in
its audited statements of account for that Accrual Period, net off all costs, taxes and
expenses, including the TRUSTEE’s fees, Fund Manager’s remuneration and interest on
borrowings by the Trust.
r. “Projects”
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means the infrastructure projects mentioned in (l) above
s. “Property”
means money and includes both initial as well as additional property hereto comprising of
real, personal, movable or immovable property of any description and wheresoever
situate and in relation to rights and interests includes those rights and interests whether
vested, contingent or future.
t. Rating Agency”
means any recognised credit rating agency maintaining a credit rating on the bonds or any other
financial debt instruments
v. “the Trustee”
means the Board of Management of the Trust
w. “the Trust”
means the Andhra Pradesh Urban Infrastructure Fund, a trust within the meaning of the
Indian Trusts Act, 1882 , duly constituted by the Trust Indenture dated _____________,
2005 registered as document No._____________in the Office of the Registrar
Hyderabad.
x. “the Trust Fund”
means and includes the aggregate of
a)
b)
c)
d)
e)
f)
the Initial Settlement
the Contribution
Investments
Loans
Receivables and
all other properties of the Trust.
y. “the Trust Period”
means the period from the date of the constitution of the Trust viz.,APUIF, until such date
till it is reverted by GoAP.
z. “Unit”
means one unit of the nominal value of Rs.1,00,000/- (Rupees one lakh only) evidencing
beneficial interest in the Trust Fund and includes a “Fraction Certificate” evidencing
beneficial interest in the Trust Fund of the value stated therein but less than Rs.1,00,000/(Rupees one lakh only).
aa. “APUIF Representative “
means the Chief Executive , Secretary or any other officer of APUIF or other person
designated by certified resolution of the governing body of APUIF to act for any of the
forgoing either generally or with respect to the execution of any particular document or
other specified maters, a copy of which shall be on file with the Trustee.
258
ab. “APUIFDC Representative”
means the Managing Director, Chief Executive , Secretary or any other officer of APUFIDC
or other person designated by certified resolution of the Board of APUFIDC to act for any
of the forgoing either generally or with respect to the execution of any particular
document or other specified maters, a copy of which shall be on file with the Fund
Manager.
Section 1.2: Interpretation and Construction:
i.
The Words: ”hereof “, “herein”, “hereto”, “hereby” and “hereunder” refer to the entire
Indenture.
j.
Every “request”, “requisiton”,”order”,”demand”,”application”,”direction”, “notice”,”
statement”, “certificate”,” consent”, or similar action hereunder shall, unless the form there
of is specifically provided be in writing and shall be signed by a APUIF representative in the
case of APUIF and by a APUFIDC representative in the case of APUFIDC.
k. All words and terms importing the singular number shall where the context requires import
the plural number and vice versa.
l.
Words importing the masculine gender shall include female and neutral
gender
m. The headings and sub-headings to this Indenture are inserted only for reference to the
provisions hereof and shall not affect the construction of such provisions.
ARTICLE – II
APPOINTMENT AND DECLARATION
Section 2.1. Appointment of Fund Manager:
The TRUSTEE hereby appoints the FUND MANAGER and the FUND MANAGER hereby
accepts the appointment and agrees to provide and be responsible for day-to-day
management and administrative services of the Trust in accordance with the
provisions of this Agreement and any directions and instructions given by the
TRUSTEE.
Section 2.2. Declaration:
The Fund Manager shall stand possessed of the Trust Fund upon which and subject to
the powers and provisions herein declared and contained concerning the same and
the Fund Manager shall have the power at any time or times during the period of this
Agreement to accept any property whether of an onerous nature or not from any
person or persons by the provisions of any other trust or otherwise to the intent that
the same shall be held by or on behalf of the TRUST as an accretion to the Trust Fund.
259
ARTICLE – III
POWERS OF THE FUND MANAGER
Section 3.1.
Powers of the Fund Manager
The Powers of the FUND MANAGER shall be as provided for in the Schedule
hereunder.
ARTICLE – IV
OBJECTIVES
Section 4.1. Main Objectives:
The main objectives of the Trust will be as under apart from the objectives mentioned
in the Trust Indenture..
e) Fund urban infrastructure projects, which improve the living standards of urban
population, including the urban poor.
f) Assist urban local bodies and other agencies providing urban infrastructure in
accessing the capital market, individually or jointly through pooled finance
arrangements.
g) Operate a complementary window, to assist urban local bodies and other agencies by
way of grants, in addressing the problems of the urban poor and the issues of
environmental conservation.
h) Facilitate private sector participation in infrastructure through joint ventures and
through formats such as public-private-community partnerships.
Section 4.2 Objectives in Detail:
i) The objectives in detail are as under:
j)
To establish viable and sustainable financing arrangements which enable creation,
upgradation and maintenance of cost effective and quality civic infrastructure in the
State.
k) To mobilise resources for the infrastructure projects using various financing
instruments and financial structures such as bonds/debentures, equity, pooled finance
arrangements etc.,
l) to borrow, or raise monies or loans or receive grants or accept contributions in such
manner and on such terms, conditions and securities as the Trustee in its discretion
deem fit from time to time.
m) To provide financial assistance in the form of loans, grants or a combination thereof
to urban local bodies for taking up and implementation of infrastructure projects
which create enduring community assets and improve living standards of the
population in their areas. The Fund may also provide sub-loans or equity in the
infrastructure projects sponsored by the Local Self Governments in association with
non-Government agencies when the Infrastructure Projects are considered
260
n)
o)
p)
q)
r)
s)
t)
u)
strategically important provided that the Fund will only invest in Infrastructure
Projects that at the time of the investment comply with all relevant State and Central
Government legislation regarding environmental and social protection.
To establish Grant Funds and provide grants from its own resources and to manage
Grant Funds as the Government may constitute from time to time as per terms set
forth for such grants so as to ensure continuous upgradation of standards of
organisational, financial and technical capacities of ULBs, viable and sustainable
infrastructure projects are put in place by the ULBs and the poor and disadvantaged
sections of the society also access the benefits of such projects.
To enable the ULBs to access capital markets, financial institutions and private
investors for setting up Infrastructure Projects in the State either individually or
through such arrangements as pooled financing, guarantees, securitisation etc
To guarantee the performance of any contract or obligations and the payment for any
bond issue or mobilisation of resources by the ULBs.
To assist the urban local bodies in getting the participation of non-Government sector
in creation and maintenance of civic infrastructure through joint ventures and other
innovative partnerships.
To subscribe for, underwrite, acquire, hold and dispose off shares, stocks, debentures,
debenture stocks, bonds, mortgages, obligations, securities of any kind issued or
guaranteed by any company (body corporate or undertaking) of whatever nature and
industry, Government, Trust, Municipal, Local Authority or body of whatever nature.
To invest any money of the Fund, in any investments as may be prudent and as may
be necessary provided the income from such investments should be utilised to fulfill
the objectives of the Fund.
To act as nodal or nominated agencies on behalf of the Central and or the State
Governments for infrastructure projects in the State.
To do all other things necessary and conducive to the attainment of all these objects.
ARTICLE – V
INVESTMENTS
Section 5.1. Investment Policies:
The Trust intends to achieve its investment objectives by investing the Trust Fund in
accordance with the investment strategy and investment policies and guidelines as
may be laid down by the TRUSTEE, subject to the following restrictions:a.
b.
Eligible borrowers will include Urban Local Bodies, Statutory Boards, Public
sector Undertakings and Private Investors, and other persons or entities
included in Trust Indenture.
Environmental, resettlement and social issues to confirm with the existing laws
and regulations in India and Andhra Pradesh and in case of externally aided
projects, as per relevant policies of external institutions such as World Bank,
Asian Development Bank etc.
261
ARTICLE – VI
INDEMNITY
Section 6.1. Indemnity:
The Trust will indemnify the FUND MANAGER, its subsidiaries, affiliates and personnel against
claims, liabilities, costs and expenses, including legal fees, incurred by them by reason of their
activities, other than those arising out of gross negligence and / or willful misconduct, on behalf of
the Trust provided however that such indemnity in any event will not exceed the total of the
Contribution at any point of time.
ARTICLE – VII
FUND MANAGEMENT
Section 7.1. ADMINISTRATION:
The FUND MANAGER shall monitor and supervise the Investments in accordance with the
policy guidelines of the Trustee.
Section 7.2. Follow –up:
i.
ii.
The FUND MANAGER shall exercise all rights available to any creditor / investor
with regard to the Investments of the Trust.
The FUND MANAGER shall require each Borrower to provide reports of
operating results, financial position, collection prospects, quarterly progress
reports and completion reports as well as annual statements of accounts
audited by a reputed auditing firm.
ARTICLE – VIII
FUND MANAGER’S FUNCTIONS AND BUSINESS
Section 8.1. Functions:
The functions and business of the Fund Manager will include and be:i.
ii.
iii.
iv.
to identify and source Infrastructure Projects, entrepreneurs, promoters and
proposals for investment of the Trust Fund.
to carry out appraisal and due diligence of such investment proposals.
to engage professionally skilled and / or experienced personnel to provide the
necessary advisory and investment managerial support and / or guidance and
if necessary to assist in the administration of the Trust
to provide the necessary advisory and investment managerial support and / or
guidance and if necessary to assist the administration of Urban Local Bodies /
Statutory Boards and restructure their financial / operating parameters to
262
enable the Urban Local Bodies / Statutory Boards to become creditworthy in
the long run and enable the Urban Local Bodies / Statutory Boards to raise
resources at reasonable and cost effective rates.
Section 8.2. Collections:
The FUND MANAGER shall collect all dividends, interest, property and other
payments, forming part of and relating to the Trust, in cash or kind.
Section 8.3. Distribution of Net Income:
The FUND MANAGER shall within 90 (ninety) days after the decision of the TRUSTEE,
distribute any part of the Net Income to the Beneficiary or Beneficiares.
Section 8.4. Debt Service:
The FUND MANAGER shall in accordance with the Agreement/s entered into between
the Trust and its Lenders make payment to such Lenders.
Section 8.5. Business Promotion:
The FUND MANAGER shall undertake business promotional activities, and in this
regard, shall conduct seminars, conferences, workshops, out reach programmes etc.,
to update the prospective borrowers, on the schemes of funding, the tenor and other
terms.
Section 8.6. Review:
The FUND MANAGER shall review the pipeline of projects periodically and develop
shelf of projects. The FUND MANAGER shall endeavour to co-ordinate and assist in
speedy project implementation by the borrowers.
ARTICLE – IX
DUTIES OF THE FUND MANAGER
Section 9.1. General Duties:
The FUND MANAGER shall:
i.
ii.
iii.
act prudently as FUND MANAGER in accordance with the terms of this
Agreement until its termination;
exercise all care, skill and due diligence and vigilance in carrying out its duties
and in protecting the rights and interest of the Trust prudently.
bring in professional expertise and build a competent team in discharging the
functions of the Trust for achieving its objectives.
Section 9.2. Books of Accounts:
The FUND MANAGER shall keep proper books of account for the Trust and
make the books available to the Trust at any time.
263
Section 9.3. Furnishing Financial Statements:
The FUND MANAGER shall provide the Contributor and the TRUSTEE with: a.
b.
c.
unaudited financial statements of the trust within 90 days of the
conclusion of the Trust’s respective Accrual Period and
annual reports including audited financial statements of the Trust
within 180 days of the conclusion of the Trust’s respective Accrual
Period and
quarterly reports within 30 days of the end of each quarter providing
narrative and unaudited summary financial information regarding the
Trust’s operations.
Section 9.4. Identifiable Fund:
The FUND MANAGER shall at all times ensure that the Trust Fund is kept segregated
from the assets of the FUND MANAGER.
Section 9.5. Devotion of Time:
The FUND MANAGER shall devote to the Trust, such time as the FUND MANAGER
reasonably determine shall be necessary to conduct the Trust’s affairs in an
appropriate manner in accordance with this Agreement.
ARTICLE – X
DELEGATION OF DUTIES
Section 10.1. Managers, Advisors, etc:
The FUND MANAGER may with the prior written consent of TRUSTEE delegate to any
entity previously approved by the TRUSTEE any or all its duties and powers under this
Agreement and specifically may appoint managers or advisors to assist the FUND
MANAGER in managing the Trust Fund.
Section 10.2. Responsibility:
Regardless of any such delegation, the FUND MANAGER shall remain responsible for
all decisions and be liable for any delegate’s act of omission or commission as if the
FUND MANAGER would itself have been liable under the Agreement for that act of
omission or commission.
ARTICLE – XI
FEES AND EXPENSES
264
Section 11.1. Management Fee:
The TRUSTEE shall pay to the FUND MANAGER such fees and incentives, on such
terms and conditions, for the services, as may be decided by the Trustee and
communicated in writing to the Fund Manager.
Section 11.2. Payment of Fee:
The Management Fee shall be payable out of income, or in the event of an
insufficiency of income in any Accrual Period out of the Trust Fund. In the event that
the Trust is unable for any reason, to pay any amount of the Management Fee when
due, the FUND MANAGER may cause the Trust to incur short-term indebtedness to
fund such payment.
Section 11.3. Taxes etc.:
The service tax on Management Fee shall be borne by the Trustee.
Section 11.4. Reimbursement of Expenses:
The FUND MANAGER shall be entitled to reimbursement of expenses incurred by the
FUND MANAGER in connection with the management of the affairs of the Trust,
including, but not limited to, amounts expended for accounting, legal (including the
fees and expenses of counsel to the Trust), printing and clerical expenses, stamp duty
and registration and filing fees of any kind, mailing and courier expenses and travel
accommodation and communication expenses. The FUND MANAGER shall not receive
any salary, profits, distributions or compensation from the Trust.
ARTICLE – XII
DURATION AND TERMINATION OF AGREEMENT
Section 12.1. Period:
This Agreement commences from the date hereof and automatically terminates on
the expiry of the Trust Period unless it is otherwise terminated as specified herein
below.
Section 12.2. Notice:
Either party may terminate this Agreement immediately by giving notice to the other
party, if the other party becomes insolvent, bankrupt, goes into liquidation or
otherwise ceases to exist. In any other event, either party may give 180 day’s notice
for terminate of this Agreement.
265
Section 12.3. Action on Termination:
Upon termination of this Agreement, the FUND MANAGER shall forth with transfer
custody of the Trust Fund, to the TRUSTEE and shall forthwith deliver to the TRUSTEE
all books of account, correspondence and records relating to the Trust which are in
the possession, custody or control of the FUND MANAGER or an entity to which the
FUND MANAGER may have delegated any of its duties under and in accordance with
this agreement.
ARTICLE – XIII
REMOVAL OF THE FUND MANAGER
Section 13.1. Removal:
The FUND MANAGER shall be removed by the TRUSTEE, if the Contributor viz GoAP so
decides.
Section 13.2. Notice:
The Contributor shall give 90 days notice in writing to the FUND MANAGER, prior to
such decision on removal.
ARTICLE-XIV
AMENDMENTS AND SUPPLEMENTS
Section14.1. Amendments:
This Agreement may be modified and or altered and or amended and or
supplemented at any time and from time to time with mutual consent by both the
parties to the Agreement a supplemental Agreement executed and signed by the
TRUSTEE and the FUND MANAGER.
ARTICLE-XV
SCHEDULES
Section 15.1 – Counterparts: This Indenture may be executed in any number of counterparts, each of which when
so executed and delivered shall be an original; but such counterparts shall together
constitute but one and the same instrument.
Section 15.2 - Schedule: The Schedule hereto shall form an integral part of this Indenture.
266
ARTICLE – XVI
MISCELLANEOUS PROVISONS
Section 16.1 – Overriding Exceptions: Notwithstanding anything herein contained no power or provision hereby or by law
conferred upon the TRUSTEE and the FUND MANAGER shall be exercised in such a
way as to infringe any rule against perpetuities, which may become applicable hereto
Section 16.2 – Article Ineffective or Void: If any Article/s or any part thereof is or are declared to be ineffective, inoperative or
void, the same shall not affect the validity of this Indenture or the other part of such
Article/s as the case may be.
Section 16.3 – Overriding Effect: In case of any conflict between the provisions of this Indenture and the Schedule
hereunder or any other Indenture or document, the provisions of this Indenture shall
prevail.
Section 16.4 – No rights conferred on others: Nothing herein contained shall confer any rights upon any person other than the
parties hereto.
Section 16.5 – Invalid provisions disregarded: In case any provision in this Agreement shall for any reason be held invalid, unlawful,
or unenforceable in any respect, this Indenture shall be construed as if such provision
had never been contained herein.
Section 16.6 – Successors and Assigns: All the Articles, Covenants, and Promises in this Agreement contained by or on behalf
of TRUSTEE and the FUND MANAGER, shall bind and inure to the benefit of their
respective successors and assigns, whether so expressed or not.
Section 16.7 – Headings and Convenience: The descriptive headings in this Indenture are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provision hereof.
Section 16.8 – Applicable Law: The Agreement shall be governed by and construed in accordance with the laws of the
Government of India and of the State.
267
Section 16.9– Notices to parties: Any notice, approval, direction or instruction given under this Agreement shall be in
writing and delivered by hand, post, cable, facsimile, telex, or electronic media mail
etc., to the Registered office of the addressee. Notice and instruction will be deemed
served seven days after posting or upon receipt in the case of hand delivery, cable,
telex facsimile or e-mail. The addresses of the parties to the Agreement, for the time
being are furnished hereunder:
THE TRUSTEE OF Andhra Pradesh Urban Infrastructure Fund
The Principal Secretary/Secretary to the GoAP
Municipal Administration and Urban Development Department,
A.P Secretariat
Hyderabad – 500 022.
THE FUND MANAGER
Andhra Pradesh Urban Finance and Infrastructure Development Corporation Limited
A.P Secretariat
Hyderabad – 500 022
SCHEDULE
POWERS OF THE FUND MANAGER
The TRUSTEE does hereby appoint, nominate, constitute, and grant to the FUND MANAGER as the
true and lawful attorney of the Trust all powers and privileges except as otherwise limited under this
Agreement and in its name or in its own name to do, execute and perform any or all the following
acts, deeds and things for the management of the Trust, that is to say: (1)
(2)
(3)
(4)
(5)
(6)
(7)
To invest the Trust Fund in accordance with the policies and procedures laid down by the
TRUSTEE from time to time.
To be responsible for the day to management of the Trust which shall be subject to any
directions, instructions and guidelines provided by the TRUSTEE
To take decisions as to investments, disinvestments, and distribution of Trust Fund only in
accordance with the provisions of this Agreement.
To invest the Trust Fund in Infrastructure projects and activities more specifically provided
herein
To sign loan agreements with sub-borrowers and other documents in connection therewith
on behalf of the Trust.
To exercise all powers, rights and privileges given to it by the Contribution Agreement.
To manage the Trust Fund by doing or causing to be done all such acts or things as may be
necessary to mobilize, invest, manage and to collect and receive by installments or otherwise
all moneys due and owing to the Trust.
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(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
To generally evolve, formulate and adopt from time to time such policies and procedure as
may be conducive for the effective administration and management of the Trust and the
attainment of its objectives as may be decided by the TRUSTEE
To disseminate information, knowledge, data, details and the like related to or in respect of
the Trust including the publication of any offer document, placement memoranda and / or
brochures etc. or requests for assistance and to otherwise do all acts and things as may be
necessary to promote the activities of the Trust.
To apply for and obtain all necessary consents including from any Government Agency and
other authorities and institutions for all activities, administration or management of the
Trust.
To comply with any directive or Government Authorization.
To appraise or evaluate such applications, requests or proposals for establishing the viability
of any Infrastructure Project and to ascertain the returns the Trust can earn on its investment
and thereafter to approve, sanction or disapprove the investment.
To advise Urban Local Bodies / Statutory Board and Public Undertakings to improve their
creditworthiness and in the long run enable them to raise resources at market rates.
To decide upon the amount or amounts to be invested in each Infrastructure Project and the
mode, manner, terms and conditions for making such investments.
To determine the forms of assistance including the return to be earned therefrom, and to
realise such investments and income and distribute the same as per the terms contained
herein
To advance monies in relation to Infrastructure Projects, whether on interim disbursement or
otherwise, upon such terms and conditions as deemed fit in anticipation of execution of any
agreement or document or issue or allotment of shares or creation of security.
To vary, alter, postpone, extend or cancel the terms and conditions of investment
agreements, contracts, guarantees, indemnities, undertakings, as entered into in respect of
the relevant Infrastructure Project.
To sustain, cancel or terminate all or any assistance or recall the advances and recover any
payments either by sale of shares or enforcement of security, guarantee or indemnity or
otherwise.
To accept premature cancellation of contracts and prepayment of assistance on such terms
and conditions as the FUND MANAGER may deem fit and also to give effective discharge for
the moneys so received.
To exercise all the powers, rights and privileges under the agreement or contracts entered
into on behalf of the Trust by the FUND MANAGER
To receive Contributions from time to time.
To distribute income to the contributors in accordance with the Contribution Agreement
To collect all amounts due or that may become due to the Trust if necessary by allowing
APUFIDC to have escrow power on revenues of UL:Bs from any of the revenue sources to
recover loans advanced by APUFIDC. Such amounts due to the Trust would include but not
limited to the sale of shares, dividends, enforcement of securities, indemnities, guarantees or
undertakings, repayment of advances, interest, charges on sales, expenses such as legal,
traveling, communication and accounting expenses as well as costs, liquidated damages,
commitment charges, processing fees, upfront fees etc and acknowledge all type of receipts
from whatever source relating to Trust Fund and to otherwise do all such acts, deeds and
things as may be necessary to ensure such collection.
To obtain the shares or other securities, wherever the trust Fund is invested in shares or
securities in the name of the Trust, if so permitted by government authorization.
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(25)
(26)
(27)
(28)
(29)
(30)
(31)
(32)
(33)
(34)
(35)
(36)
To exercise all the rights, power and privileges as of shareholders and other security holders
in such investments.
To decide upon the appropriate time, consideration, terms, mode and manner of divesting
the shares or securities obtained and to divest the same in such manner as may be decided by
the FUND MANAGER from time to time.
To nominate or get appointed its nominee’s as directors/ members on the Board of Directors
/ governing body of any borrower in accordance with the terms and conditions agreed to by
the Fund Manager or otherwise to protect the interests of the Trust in any manner it may
deem fit.
To convene, requisition, attend and vote at and otherwise take part in all meetings of the
members or security holders and to sign proxies, powers of attorney at or for any other
purpose connected therewith as fully and effectually as the Trust could do, including acting as
the authorized representative of the Trust.
To expend or agree to expend all or any money the FUND MANAGER shall receive on behalf
of the Trust in the execution of the Powers conferred on the FUND MANAGER by this
authority and paying the expenses and costs of whatever nature, as may be decided by the
FUND MANAGER, in carrying out the acts, deeds and powers granted herein.
To commence and prosecute any action or other proceedings in any court of law or through
arbitration or in any other manner for recovery of debts or sums of money, right, title or
interest, property, claim, matter or thing whatsoever now or hereafter to become due or
payable or in anyway belonging to the Trust by any means or on any account whatsoever in
respect of and pertaining to the investments made by the FUND MANAGER and to continue
the same actions or proceedings or suits or to discontinue or settle as the same as the FUND
MANAGER shall in its best judgement or discretion deem fit.
To commence, institute, conduct, defend or abandon any action or legal proceedings for the
purposes of the Trust and have for such purposes, powers to sign and verify all plaints,
written statements, petitions, appeals, declarations, revisions and applications and have
power to refer any claim to arbitration and to execute, perform, observe and challenge the
awards.
To appear in and defend or compromise any action or other proceedings now or hereafter to
be instituted, commenced or prosecuted against or pertaining to the Trust in any court of law
and if necessary through arbitration as aforesaid and to refuse and resists payment of any
sum or sums or money or compliance with or fulfillment or any claim or demand or otherwise
as the FUND MANAGER shall deem fit.
To have legal Counsel, legal advisors and engage Advocates in connection with any suit or
case filed by or against the Fund Manager, while acting as the Fund Manager of the Trust.
To pay or satisfy or to compromise or compound upon such terms which the FUND MANAGER
may deem expedient any debts or damages owing to or claimed by or from the Trust or for
which the Trust may or may be alleged to be liable in respect of the transactions done by the
FUND MANAGER.
To initiate and complete proceedings in bankruptcy and / or winding up and other process
against the estates of persons and / or as the case may require against promoters of such
Infrastructure Project.
To take part in the formation, management, supervision or control of any business or
operations of any investment and for that purpose act as administrators, or in any other
capacity if required as well as nominate and appoint any directors, administrators,
consultants, investment or fund manager accountants or other experts to the Infrastructure
Project and to remunerate them.
270
(37)
(38)
(39)
(40)
To provide counsel, consultancy, advice, services or assistance and help in obtaining such
counsel, consultants, advice or other support services related to technology, finance, legal,
commerce, accountancy, taxation, labour, public relations, statistics, science, computers,
quality control, processing, production, marketing, Investment, Managerial or other fields in
relation to Infrastructure Projects.
To hold under the terms of the terms of this Agreement the Trust’s assets such as equity
shares, security, contractual rights, leasehold rights, book debts, plant and machinery,
technical know-how, movables, equipment and other goods or assets, tangible or intangible,
property as defined herein and to hold, dispose of or deal with shares or securities of the
Trust whether of fixed or variable character.
To maintain or cause to be maintained if so authorized, such books of account in relation to
the Trust as it shall deem necessary, and to present the same to the TRUSTEE on demand.
To carry out the following activities, if so authorized by the TRUSTEE:
(a) To open such bank accounts under the name and style suitable for the operations of the
Trust with any bank and authorize officers of the FUND MANAGER to sign such forms,
documents, and things, as may be necessary in this regard.
(b) To withdraw and deal with any of the securities or documents of title which may be
deposited with the bank in any manner the FUND MANAGER may deem fit.
(c) To cause the accounts of the Trust, to be managed by the FUND MANAGER, to be audited
by such auditors as the TRUSTEE may appoint in this behalf from time to time.
(d) To cause periodical audit reports to be submitted to the TRUSTEE, and / or such other
persons as may be notified by the TRUSTEE and to otherwise assist to ensure that the
accounts of the Trust are properly audited.
(41)
(42)
(43)
(44)
To do all other acts, deeds and things, as usual, desirable or expedient in the management of
the affairs, or for the purpose of the Trust and to best expedite the carrying out its objects
and to appoint and employ in and for the purpose of transactions and management of the
investments of the Trust or otherwise for the purposes thereof such investment or fund
managers, bankers, secretaries, brokers, engineers, contractors, assistants, and other
servants, persons or employees as it shall deem proper and with such powers and duties and
upon such terms as to duration of employment, remuneration or otherwise as it shall deem
fit and, from time to time, avail of the assistance of legal advisers, chartered accountants or
technical persons on such payments or remuneration as it considers appropriate for the
business or affairs of the Trust.
To register, file or cause to be registered or filed in any of the offices of Registrar of
Companies or Sub-Registrar of assurance or any other Registrar or any court or with anybody
or authority, corporation, Trust or person this power of attorney and all deeds, notices,
memorials, contracts, instruments or documents which it may be necessary or expedient to
register or file or if required by law.
To file all such applications, forms, documents, petitions and other papers with/before any
government agency and other similar forums as may be necessary from time to time in
connection with obtaining any consents and / or in order to comply with any directive or
government authorizations and for effective management of the Trust or to Trust Fund.
And generally to do, execute and perform all other acts, deeds and things ancillary and
incidental to the foregoing powers as are lawful and thought advisable and as fully and
effectively in all respects as the Trust could do.
271
IN WITNESS whereof the parties hereto have executed this Agreement (in two sets) on the day,
month and year first hereinabove mentioned.
Singed Sealed and Delivered by
Mr.
On behalf of the Trustee
In the presence of:
1.
2.
Signed, Sealed and delivered by
Mr.
on behalf of the FUND MANGER
in the presence of ;1.
2.
MUNICIPAL BORROWING AND DEBT MANAGEMENT
The challenge that most of Urban Local Bodies in the country face is to deliver better services
to residents within a context of limited financial and human resources. The ultimate goal is to
provide better quality of life to the residents on a sustainable basis. There has to be proper planning
in place, which can address the civic, needs of the community and quantity the gaps in services. Due
efforts should be taken to find various modes of funding to fill the gap.
General borrowings for economic management have become an order for the day. It is an
integral part of any organization either in the investment process – to install capital assets and derive
enduring benefits on a long-term or on a short-term basis by way of working capital for operational
purposes. There is a dire need to ensure that these borrowings are sustainable and the organization
is able to service its debt without any hitch. The latter objective decides the appropriate debt
management approaches that an organization has to undertake in order to make it credit worthy.
One of the sources for Infrastructure functioning is contracting debt. Debt may in any of the
following form:
1.Loan from Government.
2.Loan from Financial Institutions.
3.Debentures.
The financing arrangement for urban development projects is the budgetary allocation from
state Govt.which are due to the directed credit regime. But with the revenue deficit of state Govt.
272
necessitating diversion of capital receipt to meet revenue expenditure has forced ULBs to obtain
loans from LIC and other development financial Institutions. But the financial institutions advance
loan based on the respective state Govt. guarantees. Issue of Govt.guarantees ha its own limitations
in that these are contingent liabilities on the state’s finances.
The next option is to get line of credit form the multilateral agencies such a World Bank, Asian
Development Bank etc. Again, any financial intermediaries will prefer not to get the forex
fluctuations in its books. Thus, the loans are routed through GOI and the concerned State Govts.
Market Access:
With the passing of the 74th Constitutional Amendment Bill, the ULBs can access the capital
markets for their fund requirements. This has opened a very good opportunity for the flow funds to
the urban sector. The Govt. of India, Ministry of Urban Development and Poverty vide Office
Memorandum dt.8.2.2001 on issue of tax-free Municipal Bonds, guidelines for issue of tax-free
municipal bonds have been issued. As per guidelines, the local authorities can issue tax-free bonds to
meet the capital requirement in:
a.
b.
c.
d.
e.
Sewerage and Sanitation.
Drainage.
Solid waste management.
Roads, Bridges and Flyovers and
Urban Transport (if this is a municipal function)
The capital investments shall be for setting up new projects and also for expansion, augmentation or
improvement of existing system. The maximum amount of tax-free municipal bonds as a percentage
of total project cost (excluding interest during construction period) will be 33.33% or Rs.50. Crores
whichever is lower.
Borrowing from external sources has its own financial consequences. If the state is credit
worthy, it maybe able to comer cheap source of funds for developmental purposes and also it can
meet all its liabilities including the repayment of loans by way of levy of proper user charges.
Otherwise the loan becomes costly and its liabilities cannot be converted into user charges. This
means that the debt servicing capability is not there. The government has to see that such loans are
kept to the minimum, in case it is not possible to pass on the relevant charges to the ultimate
consumers. Of late, this has been the bane of the governments, as they do not want to increase the
user charges for its services to public unduly. All the funds are diverted for provision of non-merit
goods that too at implicit or explicit subsidized charges. These have created dents in the revenue
receipts, while the revenue expenses mounted.
A time has come where the Government alone cannot meet the capital needs. Another
method of finding a source of capital for Urban projects is the user charges both for the capital
funding and also to cover the operation and maintenance needs of the project. The rationale for
levying user charges and the methods of fixing the user charge has many criteria.
User charges can be imposed in several ways, but have traditionally been levied as a price per
unit of services consumed. In general, a public service can be efficiently financed by user charges
only if the benefits derived from consumptions of the service can be restricted to the individual who
273
purchases it (exclusively) and if consumption by one person diminishes the amount of services
available to the others. Further more there must be some means to measure individual usage such as
metering, so that billing can be appropriately done. In order for user charges to be imposed on public
services, there must be a willingness to pay on the part of consumers. Normally the price paid by
consumers to private operator is always more than what is charged by the public bodies.
Debit management covers the policy aspects such as the sources of financing, the choice of
debt instruments, the amount to be borrowed and the terms of debt service. It is also concerned
with strategic aspects of restructuring the existing debt liability, including rescheduling and
refinancing and ways of minimizing the risk of exposure.
Any government is not an exception to this borrowing phenomenon in its endeavour to
manage its economy well and also to provide quality service to its people. It does not desire to
experience debt service problems. It would well advised to establish effective arrangements for
monitoring and managing debt. Otherwise, it would be lead to a plan of reschedule entailing
additional cost of debt, ultimately driving it to bankruptcy. At the same time it has to keep in mind
that the debts are scarce and costly, if the organization is not viable and also not readily available in
required quantity at the asking. It has many sources of financing. Its guarantee for debt service has
an added weight. It can resort to bank finance or market loans. The savings effected through pension
or provident fund reserves or small savings are also readily available. The Central Government also
provides loan funds. And there is always the Reserve Bank of India as a lender of the last resort. Each
of the sources has its interest burden and repayment schedule.
The key elements in debt management are:
A comprehensive inventory of all loans and liabilities-both private and public-on loan-toloan basis.
Forecasting debt service payments.
Monitoring loan utilization for efficiency and effectiveness.
Policy guidelines to maintain an optimum structure of debt with regard to maturities and
interest rates.
Determining sustainable levels of borrowings, taking into account the source wise
availability of funds.
Resorting to debt restructuring including rescheduling and refinancing as a means of short
term balancing.
Minimising exposure to risk-action on revenue augmentation.
PUBLIC FINANCE:
“Large fiscal deficits fuelled increasingly by deficits in the revenue budgets have been the
bane of government finances in India for nearly two decades” laments the 11 th Finance Commission.
It goes on to add: ‘the structure of public finances in an economy is defined by the level and
274
composition of expenditure of the government (current and capital) and the instruments relied upon
to finance them, VIZ., the tax and the non-tax revenue sources and borrowings. The excess of
government expenditure over current revenues and other non-debt receipts gets reflected in fiscal
deficits financed either by way of borrowings from internal and external sources of through
seignorage, that is money printing. If expenditure persistently exceeds revenues, fiscal deficit, to the
extent it is not covered by seignorage, steadily adds to outstanding debt, resulting in increased
interest payments.’ To avoid this self-perpetuating spiral of debt and deficit, commensurate increase
in revenue receipts must take place.
Accumulation of debt reflects the outcome of the fiscal operations of Centre/States on the
revenue and expenditure sides of their budgets. If expenditure, whether committed of discretionary,
exceeds revenues, tax and non-tax, the excess can only be financed through fresh borrowings. If
these borrowing are purely a temporary nature, then adjustments as to how to service them on a
short-term basis can be worked out. But if this persists for a long period and also grows in volume,
debt becomes unsustainable. Entry into a debt trap is a possibility. The remedy lies in identifying the
structural deficiencies and the underlying reasons and taking appropriate corrective measures.
ASSESSMENT OFSTATES’RESOURCES:
Sl.No
ITEM
1999-2000
B.E
% To
GDP
2000-2001
B.E
% To
GDP
2004-2005
B.E.
% To
GDP
1.
Revenue receipts
i) Tax Revenue
103648
5.37
108801
4.98
162224
4.56
18379
0.95
24799
1.14
30491
0.86
1711
0.09
1691
0.08
2265
0.06
123738
6.41
135291
6.20
194979
5.48
Plan
42889
2.22
315251
14.44
501670
14.09
Non-Plan
Surplus / Deficit
197668
10.23
48665
2.23
76012
2.14
On Revenue Account
Non-Plan Revenue
Surplus / Deficit
-116819
-6.05
-179960
-8.24
306691
-8.62
-73930
-3.83
-179960
-6.01
-230678
-6.48
ii) Non Tax Revenue
Non-Plan
2.
3.
4.
5.
Total (I –ii)
Revenue Expenditure
Estimated GDP at
Current market prices
1931819
2182956
275
3559252
It is sent that both plan and non-plan revenue deficits are likely to increase substantially by
the year 2004-2005. It is rather surprising that the tax and non-tax revenues are likely to decline
considerably, indicating the dormant unwillingness on the part of the states to realistically attempt
to restore balance in the budget. This requires a close look at the potential revenues-both tax and
non-tax- in the years to come for each of the States and giving due consideration to State policies of
revenue generation.
The cursory analysis so far reveals the necessity to bring down the debt burden of states over a
period of time. Four steps are needed for the purpose.
1. A comprehensive plan of providing debt relief for the existing total debt of
more than Rs.4.0 lakhs of crores incurred by the States.
2. In order that the current burden of interest and repayment of loans are
properly matched, the current revenue streams are devised in such a manner
that the incremental revenue receipts meet the incremental interest charges;
the pricing process is streamlined to ensure that the above also generates a
surplus.
3. The surplus on revenue account is credited to a sinking fund to meet the future
payment obligation.
4. The states must devise a sustainable revenue balance in future.
CONCLUSION:
It has been observed in many ULBs that a long term physical development plans along with
investment plan are rarely worked out to provide a basis for projecting requirement of expenditures
both for capital and revenue purposes over a period of time. Failure to effectively monitor the cash
flow in ULBs has lead to unrealistic revenue projections and expenditure commitments. Since ULBs
frequently encounter serious cash flow problems, they find themselves operating without sufficient
operational capital and therefore often have to make ad-hoc decisions for adjustment in expenditure
resort to using loan funds to finance the recurring expenditure. For effectingly determining the
borrowing capacity and to supervise and monitor the debt situation a centrally located Debt
Manager Cell could be established in respect of all Urban Local bodies.
276
Annexure – 3
(G.O.Ms.No.72, MA & UD (UBS) Department, dated 18.02.2005)
APURMSP Funds Access Criteria
(as per the World Bank Aide Memoire dated October 15, 2004)
Access Criteria
Compliance to be assessed based on
ULB has an operating surplus and has Based on finalized accounts of last FY
borrowing/investment capacity
A ULB not satisfying this criteria can still
access investment funds but only for those
sub-projects that are financially viable on a
stand-alone basis (Sub-project FIRR> cost of
Funds) and provided other criteria (below)
are met.
Accounts of ULBs are upto date (finalised)
and ULB undertakes to complete audit within
one year of participation in APURMSP
Property Tax Collection Efficiency > 75%
Measurable progress already achieved by ULB
with regard to atleast one area of reform
Accounts to have been finalized within 6
months of close of FY
During the Last FY
This could include progress on any of the
reforms related to urban governance
including e-governance, computerisation,
citizen charters, etc.
Revenue Improvement Action Plan for ULB in Increase in municipal revenue during the
place
Project Period
277
Annexure –4
(G.O.Ms.No.72, MA & UD (UBS) Department, dated 18.02.2005)
APURMSP Operational Procedures
Initial Project Proposal from ULBs
1. The ULB will submit documents in the format prescribed which shall form part of the Initial
Project Proposal (IPP) submitted to the MSU-CDMA. The ULB shall also submit all originals
supporting the IPP.
2. MSU-CDMA, in the capacity of PDAF fund manager, will evaluate all IPP submissions based on a
defined benchmark. The MSU-CDMA will come out with an Initial Screening Report, based on
which the qualifying IPPs would join the pipeline of projects for preparation of Detailed Project
Reports and Bid Documents by the Consultants engaged for the purpose.
3. The ULBs, based on the Consultant’s Report, shall submit to APUFIDC (i) detailed designs,
drawings, technical specification and tender documents for sub-projects, (ii) RAP and EMP for
sub-projects, and elements to be incorporated in PMS consultant’s TOR and as part of tender
documents, (iii) project execution schedules (Gantt Charts), and (iv) project cash flow schedules.
4. Sub-projects need line department clearance before being submitted to APUFIDC.
5. The ULB, based on a Council Resolution, would then apply to APUFIDC for funding of the Project
under the APURMSP Investment Component.
6. The PAC shall review the DPR and through MD, APUFIDC, submit a request to the EC through a
Board Note seeking approval for on-lending and procurement of works. Prior to submission of
DPRs to APUFIDC, the ULBs should have obtained all necessary approvals from competent
authorities.
Detailed Project Reports
The objective behind preparing DPRs is to arrive at detailed engineering designs, drawings, Bill of
Quantities (BoQs) and tender documents for approved sub-projects. The DPR shall also contain
Resettlement Action Plans (RAPs) and Environmental Management Plans (EMPs), where required,
and Economic and Financial analyses. Engineering surveys, socio-economic surveys, slum household
surveys, and other relevant surveys required to support identified sub-projects should be carried out
to support the DPR.
i.
Technical/Design: The technical component of the DPR should comprise detailed engineering
designs and drawings for sub-projects. National and International standards shall be followed for
all designs. Costing shall be based on Public Works Department (PWD) Schedule of Rates (SoRs)
and locally available material.
ii. Institutional Assessment: The institutional assessment component should review and evaluate
existing arrangement for operation and maintenance of assets and additional requirement
resulting from proposed investments or alternative means of operating and maintaining the
278
services. If operation and maintenance is carried out by other agencies, the assessment should
outline the obligations of parties in terms of functions and financial arrangements.
iii. Economic Analysis: Economic analysis should be carried out for investments above US$300,000
using standard appraisal models as per prescribed methodology. Individual sub-projects will be
evaluated by either cost-benefit analysis (requiring a minimum ERR of 12%) or cost effectiveness
analysis (applicable to sub-projects with non-quantifiable benefits or sub-projects costing less
than US$300,000).
iv. Financial Analysis: The financial assessment methodology should focus on two aspects:
 Sub-project level financial viability: This would apply to only cost recovery sub-projects (water,
waste-water, solid waste projects) and would see to ascertain sub-project level Net Present Value
(NPV)/Internal Rate of Return (IRR); and
 Overall ULB Level Financial Sustainability.
v. Financial Management Systems: The FMS assessment should focus on ULB’s institutional
capacity to handle APURMSP sub-projects, which should comprise:




Staffing for sub-project civil work procurement, and fund drawdown and application;
Recording and reporting of sub-project physical and financial progress;
Budgetary provision for APURMSP-funded sub-projects; and
Compliance with audit requirement under the project.
vi. Social Assessment: The SEMF governs the social assessment of sub-projects and the assessment
should comprise:





Screening procedures for reviewing sub-projects in order to classify them as those having high or
medium, or low resettlement impacts;
Mechanisms for addressing resettlement issues at different stages of sub-project cycle;
Stakeholder consultations during preparation and involvement of local people during project
implementation;
R&R policy identifying likely impacts and entitlement framework for the persons affected by subprojects; and
Roles and responsibilities of different agencies such as APUFIDC, ULBs and other government
agencies in addressing resettlement issues.
vii. Environmental Assessment: The SEMF governs the environmental assessment of sub-projects
and the assessment should comprise:






National, state and local legal requirements on environmental issues that will be applicable to
the urban sector sub-projects;
Screening procedures for reviewing sub-projects in order to classify them as those having high
or medium or low environmental impacts;
Sub-project cycle and methods to address environmental considerations and assessments at
different stages;
Carry out documentation disclosure activities;
Public/stakeholder consultation done and approach during project implementation; and
Environmental roles, and responsibilities of different Government agencies such as APUFIDC
and ULBs.
279
Memorandum of Agreement
1. The ULB shall enter into a Memorandum of Agreement (MoA) with the MSU-CDMA defining
the service and financial targets it proposes to achieve during the project period and
associated organisational structuring to achieve the targets.
2. In the case of ULBs, monitoring and evaluation will conform to the Memorandum of
Agreement signed between each ULB and MSU-CDMA, which is signed prior to the release of
APURMSP funds. The MoA will be tailored to the individual ULB’s requirement and covering
at least:
 Commitment to follow the outputs of the CIP process as the basis for all investment decisions
and as defined in the Performance Benchmark Report;
 Agreed action plans for reforms and revenue enhancement measures; and
 Borrowing limits for the participating ULB.
3. Satisfactory compliance to the MoA will be a condition precedent to access investment funds
for subsequent investments. This compliance will be determined by an independent
assessment, outsourced to a consultant by MSU-CDMA.
Outputs and Compliance Report
1. Sub-project Implementation Monitoring
Sub-project implementation will be monitored by a Consultant or through an independent
supervision, subject to sub-project social and environment category. Monitoring shall cover physical
progress and associated expenditures by sub-project.
2. Safeguards Monitoring
On social and environmental issues, both internal and external monitoring mechanisms will be set
up, and evaluation will be done at sub-project level and the project as a whole. Internal monitoring
on social issues will be done at:



ULB level – by the ULB and Resident Welfare Associations
District level – Grievance Redress Committee
State level – by MSU-CDMA
The supervision consultants, using the RAP/EMP requirements as the basis, will report on social and
environmental issues of sub-projects. Supervision consultants will submit regular monitoring reports to
the ULBs and MSU-CDMA, which shall include necessary actions to correct any non-compliance and the
follow-up on such actions. In turn, MSU-CDMA will assess and compile these sub-project monitoring
reports on a quarterly basis and send them to the World Bank. In addition, APUFIDC’s internal audit
reports shall cover social and environmental issues. The audit findings will include gaps/deficiencies and
recommendations, which will be implemented by MSU-CDMA.
3. Sub-Project Completion and Operations Report
Sub-Project Completion Status: The ULBs will submit completion reports to MSU-CDMA and APUFIDC
comprising physical completion of the sub-project (with a commissioning report from the
Consultant), loan drawdown and fund application statement for each sub-project, and social and
environmental risk mitigation for each sub-project (based on category). The ULB shall carry out
periodic evaluation of each sub-project to evaluate service performance, and report the performance
280
to MSU-CDMA and APUFIDC.
Municipal Financial/Reform Compliance: The ULB shall submit to MSU-CDMA half-yearly statements
of municipal fiscal status and financial performance, in the prescribed format. The ULB shall make
such submissions through the term of the loan.
Social and Environmental Compliance
The ULB shall submit to MSU-CDMA, statements on mitigation measures adopted to overcome any
social and/or environmental impacts during the sub-project operations period. The ULB shall indicate
any expenditure incurred in implementing mitigation measures.
Progress Report and Review
The Progress Report on the utilisation of the PDAF will be prepared by MSU-CDMA on a half-yearly
basis. Based on the Progress Report, the performance of the PDAF would be reviewed by the
Principal Secretary, MA&UD on a half-yearly basis with special reference to:
 Number of consultancies resulting in procurement packages; and
 Number of consultancies resulting in award of contracts.
Based on the review, the GoAP will consider, if necessary changes to this part of the manual in
consultation with the World Bank.
The ULBs shall submit to the MSU-CDMA, the PDAF sub-project implementation progress and
performance monitoring indicators regarding urban basic services and municipal fiscal status.
Performance Benchmark Report (PBR):
The ULBs shall submit a Performance Benchmark Report (PBR) indicating service and fiscal baselines,
and benchmarking improvements in service delivery and financial performance for identified
investments through the APURMSP period.
4. ULB Reporting to APUFIDC
APUFIDC shall make their sub-borrowers submit quarterly FMRs, in the agreed format, to reflect the
financial and physical progress achieved in implementing the approved sub-projects. In addition, the
participating ULBs will also be required to submit the annual financial statement within three months
of the fiscal year end, which will be subject to audit by the statutory auditor of APUFIDC.
Financial Management Reports (Role of APUFIDC)
APUFIDC will consolidate Financial Management Reports (FMRs) in prescribed formats. The FMRs
should provide actual versus budgeted expenditures/sub-loans, forecasts of cash requirements,
physical and financial progress and procurement contract management information. The FMRs
should broadly address:
i.
APURMSP physical progress juxtaposed against financial progress;
ii. Reconciliation of expenditures/sub-loans claimed from the Bank with expenditures/sub-loans
made annually;
iii. Sub-borrowers’ (ULBs and/or Statutory Boards) quarterly financial reports reflecting the
physical and financial progress achieved in implementing sub-projects; and
281
iv. Annual financial statement of ULBs/Statutory Boards within three months of the fiscal year
end – the ULB finances is subject to audit by the Controller, State Accounts Department or an
agency appointed by GoAP.
The first FMRs for the project will be submitted to the Bank within 45 days of the end of the first
quarter from the date of loan effectiveness.
Reporting to MA&UD and World Bank
APUFIDC
Based on the executing agencies’ report, APUFIDC will produce a consolidated progress report, to be
submitted to the MA&UD and the World Bank, within one month of the end of the relevant quarter.
This consolidated report will include but will not be limited to the following:
i.
Information on APUFIDC financial operations and the institutional capacity to perform its
current designated role and possible future functions (or exit strategy)
MSU-CDMA
i.
The progress and aggregate development of the sub-project development technical
assistance and training activities
ii.
Report APURMSP results framework and monitoring output to measure the impact of the
investment and/or TA activities on achievement of the overall project development
objective and results expected under each project component.
iii. Report progress towards each of the policy objectives (including information on other
institutional and policy reform activities).
iv. Report participation of sub-project beneficiaries, problems arising from sub-project
implementation, appropriate mitigation strategies & measures.
282
GOVERNMENT OF ANDHRA PRADESH
MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (UBS) DEPARTMENT
Memo No. 5121/UBS/2008.
Date: 25 -03-2008.
Sub:- APURMSP - MSU - Request to accord permission to drop out the ungrounded
works taken up in various works taken up in various Municipalities / Municipal
Corporations - Reg.
Ref:- D.O.Lr.No.001105/FC/MSU/APURMSP/06, dated: 17-01-2008 received from
CDMA, Hyderabad.
***
With reference to the D.O. Letter cited Government hereby permit the Commissioner and
Director of Municipal Administration to drop out the following works taken up under APURMSP
Project.
 193 works with cost of Rs.33.88 crores which could not be grounded for want of permission
of World Bank for re-bidding.
 7 works with cost of Rs.1.54 crores for which agreements pending at ULB level.
 Out of 696 grounded works some of works which are held up for more than one month and
which are not likely to be taken up further for various factors without making inconvenience
to the public.
 All the works of which where loan agreements have not been entered and have not
concluded with APUFIDC Ltd., so far.
Further, the Commissioner and Director of Municipal Administration is requested to take proper
care will be taken that no work or works coming under the purview of the Hon’ble C.Ms.
Assurances such as Rajeev Nagar Bata, are dropped or closed.
PUSHPA SUBRAHMANYAM
SECRETARY TO GOVERNMENT
To
The Commissioner and Director of Municipal Administration, Hyderabad.
Copy to the Managing Director, APUFIDC Ltd., Hyderabad.
///FORWARDED BY ORDER\\\
283
MOST IMPORTANT
ANDHRA PRADESH URBAN REFORMS AND MUNICIPAL SERVICES PROJECT
MUNICIPAL STRENGTHENING UNIT
O/o Commissioner & Director of
Municipal Administration
Cir.No.001105/General/MSU/APURMSP/TU/2006, Dated:21.04.2008
Sub:- MSU-APURMSP-Drop out the unground works taken up in various
Municipalities/Municipal Corporations – Reg.
Ref:- Govt.Memo.No.5121/UBS/2008, Dated:25.03.2008
*****
With reference to the above cited, all the Commissioners of the ULBs who have taken up works
under APURMSP are instructed to drop the following category of works taken up under APURMS
Project:
 All the Works which could not be grounded for want of permission from World Bank for
rebidding.
 All the works for which the agreements are pending at ULB level.
 All the works which are grounded, but held up for more than one month and which are not
likely to be resumed further for various factors without causing inconvenience to the public.
 All the works where the loan agreements have not been entered and concluded with
APUFIDC Ltd., so far.
Further the Commissioners are informed that while considering the closure of the works, it
should be ensured that no work or works which are coming under the purview of the Hon’ble
C.M’s Assurances such as Rajeev Nagara Bata etc., are dropped or closed under any cost, for
which the Commissioner will be held responsible.
In view of the Government instructions stated above, all the Commissioners are requested to
take urgent necessary action and inform this office accordingly.
COMMISSIONER & DIRECTOR
To
All the Concerned Commissioners of Municipalities/ Mpl. Corporations
Copy submitted to the Secretary to Govt., MA & UD Dept for favour of kind information.
284
ANNEXURE 13:
FLOW OF FUNDS & CLAIM PROCEDURES
Annexure 13: Flow of Funds & Claim Procedures
Government funds through Budget
CDMA
PD Account
APUIF Bank Account
(Urban Investment
Component)
MSU Bank Accounts
(other components)
ULB
Memorandum of Agreement Loan
Agreement
Claim Procedure
MSU
APUIF
Financial Manager
Govt. of AP
CAAF, GOI
World Bank
285
ULBs
ANNEXURE 14 :
SUB PROJECT IMPLEMENTATION MONITORING
(REPORTING)
Annexure 14 : Sub Project Implementation Monitoring (Reporting)
World Bank
Secy., MA&UD
Consolidated progress report (within
one month of relevant quarter) on
APUFIDC financial operations &
institutional capacity
APUIF
• Progress report on utilization of PDAF on
half-yearly basis
• Progress report on sub-project development, training activities and policy activities
MSU - CDMA
Sub-Project completion status
Municipal Financial / Reform
compliance
Quarterly Financial Management
Report
Social Environmental
Compliance
Annual financial
Statement
PDAF Sub-Project
implementation progress
ULB
286
ANNEXURE 15:
STAFFING OF MSU UNDER APMDP & STAFFING AT THE APUIF
OFFICE
Annexure 15: Approved staffing at MSU Office for APMDP
Sl. No.
1.
2.
3.
4.
5.
6.
7.
Designation
No. of Posts
Project Director (MSU)
Junior Level IAS Officer/any other State Government Officers of the rank of Joint
Director and above on deputation.
1
Capacity Enhancement Specialist
Selection/Special grade M.C,/ Gazetted Officer from Govt. on deputation
1
Technical Unit Officer from Public Health
Superintending Engineer
Dy. Executive Engineer
Assistant Engineer
1
2
4
Disbursement Analysis
Selection/Special Grade Municipal Commissioner/ Gazetted Officer from Govt. on
deputation.
Procurement Managers, Specialists
Gazetted Officer. Trained in World Bank procurement procedures (SE level or
equivalent)
1
2 Managers and
6 specialist
positions
1
Financial Manager / Specialist
Qualified profession accountant
1
Accountant
Supporting staff for Project Director
1. Spl. Category / Sr. Stenographer
2 Computer Operator
3. Driver
4. Class-IV
1
1
1
1
Supporting staff for each officer
1. Superintendent on deputation of Govt. of A.P,
2. Sr. Assistant on deputation from Govt-of A.P.
3. Computer Operator
4. Driver
5- Class-IV
5
5
5
5
5
10
Urban environmental specialist
Social Scientist
1
1
11
Technical unit officer from DTCP
JOINT DIRECTOR (on deputation)
1
8.
9.
287
Note: Functions of Joint Director:1. Coordinate between DTCP, MSU and ULBs for town planning components of the project and
linking with e-Suvidha.
2. Providing technical assistance in preparation of GIS related DPRs, tenders and RFPs,
3. Guide the consultants in preparation of GIS mapping and general town plans,
4. Monitor and review the progress of preparation of GIS mapping including property & utility
mapping and general town plan.Approved staffing at the APUIF Office for APMDP
Sl.
No.
1
2
Name of the Post
Method of filling
Company Secretary
Finance Manger
3
4
5
6
7
8
9
10
11
12
13
Financial Analyst
System Analyst
Administration Manager
Disbursement Analyst
Project Manager-I
Project Manager-II
Assistant Project Manager
Superintendent
Senior Assistant
Junior Assistant / Data Entry Operator
Computer Programmer
Out sourcing**
Deputation *
Outsourcing **
Outsourcing **
Outsourcing **
Deputation*
Deputation*
Deputation*
Deputation*
Deputation*
Deputation*
Deputation*
Outsourcing**
Outsourcing**
No.of posts
1
1
1
1
1
1
1
1
1
1
1
1
1
*
Deputation posts carry their own scale of pay
**
Remuneration for outsourcing posts is shown against the post at column No.4
288
ANNEXURE 16:
IUFR FORMAT (TO BE ADDED)
Annexure 16: IUFR Format (To Be Added)
Approximate 4 pages
289
ANNEXURE 17:
FINANCIAL MANAGEMENT AND DISBURSEMENTS
Annexure 17: Financial Management and Disbursement
I.
Project Components and Implementing Entities
1.
The nodal Implementing Entity for the project will be the Municipal Administration and Urban
Development Department (MAUD), and specifically the Directorate of Municipal Administration
(DMA) headed by the Commissioner and Director of Municipal Administration (CDMA) The DMA will
be the nodal agency for the project, managing and coordinating the project preparation,
implementation and monitoring The Municipal Strengthening Unit (MSU) under the CDMA will be
responsible for the day to day implementation arrangements. The agreed implementation
arrangements are as follows:
a) Components A [Policy and Institutional Development Support], B [Local Capacity
Enhancement], and D [Project Management Technical Assistance] : The CDMA/MSU will be
implement all these components and will be responsible for complying with all the financial
management requirements in respect of these components, including the GoAP and Bank
reporting requirements. The CDMA will receive funds through a budget allocation under the
MAUD, as per regular financial and fund flow procedures of the GoAP, and will maintain
accounts, procure and receive goods and services under this component.
b) Component C [Urban Infrastructure Investment]: This component will be funded through
the AP Urban Infrastructure Fund (APUIF), which is a Trust registered under the Indian Trust Act.
The APUIF is an intermediate entity which will receive funds from the CDMA, and will fund the
sub-projects at the ULB level by providing sub-loans and capital grants to them.
II.
Detailed functions and responsibilities of implementing entities:
2.
CDMA/MSU (Components A, B, D): The CDMA/ MSU will be responsible for implementation
and monitoring of Components A, B and D of the project. The GoAP finance department will release
funds to the PD account of the CDMA in accordance with regular financial and fund flow procedures
of the GoAP. These have been described in Government Order (GO) No 288 dt 21-4 2009 of the
GoAP which details out the Implementation and fund flow arrangements for the AP Urban Project
(APDMP). The PD account will be operated in accordance with the regular rules and procedures of
the GoAP in respect of the PD accounts in the state, including the executive instructions/ GOs
issued by the GoAP from time to time, and will be subject to the regular oversight mechanisms of
the state government. In particular, the PD account will be subject to the provisions of the GO No
43 of April 2000 and GO No 113 of May 2007. The CDMA/MSU will itself make payments for
expenditures related to these components and will be responsible for collecting and consolidating
expenditure information in respect of project components and sub-components and preparing the
Interim Un-audited Financial Reports (IUFRs) for seeking reimbursement. The CDMA/ MSU will
follow regular GoAP procedures prescribed by the finance department and treasury, in respect of
approvals, expenditure sanctions and bill payments, for these components.
3.
CDMA/MSU will also confirm the eligibility of ULBs to participate in the project, based on
agreed eligibility criteria as indicated earlier in the OM and also reflected in Para 7 on ULBs.
CDMA/MSU will appraise sub-project proposals received from the eligible ULBs, and accord approval
to the APUIF for their financing (indicating the grant/loan mix). During subproject implementation,
the CDMA/MSU will be responsible for monitoring the implementation of the sub-projects,
290
verification of assets created, financial reporting of "actual expenditure" incurred at the ULB level,
and for monitoring the recovery of the loans (the loans and the recoveries will be reflected in the
financial statements of the APUIF).
4.
APUIF (Component C): The APUIF will be the Implementing Agency for the largest
component of the project, Urban Infrastructure Investment (with an allocation of nearly 85% of the
loan). Funds under this component will be transferred from the Personal Deposit (PD) account of
the CDMA to the designated bank account of APUIF, which will extend sub-loans and sub-grants to
the Urban Local Bodies subject to GoAP’s treasury rules, procedures and limitations. The Project
fund shall not be kept idle in the bank account of APUIF, and CDMA shall transfer the funds to
APUIF only when APUIF is in turn ready to transfer them to respective ULBs immediately thereafter.
The rules and procedures with regard to the operation of the bank account of APUIF shall be
documented in this Operations Manual, and will also describe the necessary oversight requirements.
5.
The APUIF is a Trust under the Indian Trust Act, and is not a Government company that is
regulated under the Companies Act and is under the supplementary audit of the CAG. In order to
strengthen governance and accountability, the APUIF has agreed to adopt reporting and disclosure
norms and prudential guidelines as prescribed by the Reserve Bank of India (RBI) for Non- Banking
Finance Companies (NBFCs). APUIFs adoption of the NBFC norms as prescribed by the RBI will
strengthen the Governance and Accountability environment under which the project funds would
flow, and will help provide an enhanced level of oversight and disclosure in respect of APUIF and its
operations, and on the usage of project funds. The NBFC requirements that the APUIF will adopt
are additional disclosures in the Notes and Statement of Accounting Policies statement
accompanying the financial statements.
These relate to income recognition, income from
investments and accounting for them, need for policy on demand/ call loans, asset classification,
provisioning requirements and norms relating to infrastructure loans, and constitution of an audit
committee. The APUIF will also make disclosures in the Balance Sheet relating to bad and doubtful
debts as well as the provisions for depreciation in investments. These requirements have been
reflected in the GO No 288 on the project. The Board of Trustees of the APUIF shall pass a resolution
adopting the above NBFC norms by ……………(dated covenant).
6. APUFIDC: APUFIDC is a state level entity set up by the GoAP to foster urban development and
its main areas of focus are Public-Private Partnerships (PPPs) and urban financing, including access by
ULBs to market based finance. APUFIDC is currently in significant arrears in respect of accounts and
audits, and compliance with statutory requirements. In view of this, it is not involved in the Bank
project either financially or operationally, nor will funds flow through it, but will play an advisory role
and provide technical support to the project.
7. ULBs: The overall eligibility criteria for the ULBs to participate in the Bank project have been
agreed with the GoAP and documented in the PAD and the OM. A key FM eligibility criteria for ULBs
to receive project funds is the availability of audited financial statements of the immediately
preceding year (2007-08 as of now), with no significant unresolved audit issues of the earlier years.
The compliance of the said ULB with these criteria will be certified by the CDMA before the ULB is
eligible to receive project funds. An FM assessment of ULBs was conducted by requesting ULBs
expected to participate in the first stage of the project to respond to a questionnaire. It was seen
that most of the ULBs were in arrears of their audits for periods ranging from 1-3 years and more. It
was also seen that most of the ULBs had varying levels of capacity to account for and report on Bank
funds, and will require a lot of capacity building as part of the project.
291
III.
Funds Flow, Disbursement and Retroactive financing
8.
GoI will open a Designated Account (DA) in Reserve Bank of India (RBI), operated by the
CAAA, to receive disbursements from the Bank. The Bank will deposit an initial advance (amount to
be agreed at negotiations) into the DA. Reimbursements to the DA will be the amounts of actual
expenditures incurred by the project, as reflected in the quarterly IUFRs. The “actual expenditures”
are defined as the expenditures actually incurred under the various categories as reflected in the
eligible expenditure categories table in the Loan Agreement. Advances to implementing entities or
any transfers from the CDMA to sub-implementing entities will not constitute “actual expenditure”
for the purposes of disbursement. The “Actual Expenditure” incurred on different components will
be certified by the Internal Auditors each quarter before they are recorded in the IUFRs. The entire
fund requirement for the project, including counterpart contribution, will be budgeted by the GoAP
as a single annual budget line time item in the Demand for Grants of MAUD, and released to the
Department through the mechanism of the state budget. This allocation will cover the fund
requirements of all the project components and will be based on the annual work plans prepared by
the Implementing Entities.
9.
Funds for project components A, B, and D will be released by the MAUD department to the
PD account of the CDMA. The GoAP finance department will release funds to the PD account of the
CDMA in accordance with regular financial and fund flow procedures of the GoAP. These have been
described in Government Order (GO) No 288 dt 21-4 2009 of the GoAP which details out the
Implementation and fund flow arrangements for the AP Urban Project (APDMP). The PD account
will be operated in accordance with the regular rules and procedures of the GoAP in respect of the
PD accounts in the state, including the executive instructions/ GOs issued by the GoAP from time to
time, and will be subject to the regular oversight mechanisms of the state government. In
particular, the PD account will be subject to the provisions of the applicable GO and revisions
issued from time to time.. The CDMA/MSU will itself make payments for expenditures related to
these components and will be responsible for collecting and consolidating expenditure information
in respect of project components and sub-components and preparing the Interim Un-audited
Financial Reports (IUFRs) for seeking reimbursement. The CDMA/ MSU will follow regular GoAP
procedures prescribed by the finance department and treasury, in respect of approvals, expenditure
sanctions and bill payments, for these components. Funds for project component C will be released
from the PD account of the CDMA to the commercial Bank account of the APUIF, as designated by
the GoAP. The Project fund shall not be kept idle in the bank account of APUIF, and CDMA shall
transfer the funds to APUIF only when APUIF is in turn ready to transfer them to respective ULBs
immediately thereafter. The rules and procedures with regard to the operation of the bank account
of APUIF shall be documented in this Operations Manual, and will also describe the necessary
oversight requirements.
Financial management and fund flow:10.
The C&DMA is the principal implementing agency of Andhra Pradesh Municipal Development
Project. CDMA shall send Annual Budget Estimates for budgeting based on the requirement of
various components of the project to Finance Department through MA &UD Department. The
Finance Department shall release the funds on quarterly basis upon submission of progress report on
the both fronts i.e., Physical and Financial and utilization certificates obtained from the concerned
implementing agencies. The MA&UD Department shall issue an administrative sanction Order. The
Director of Treasuries and Accounts, A.P., Hyderabad shall issue an authorization for the amounts
292
sanctioned by the Government. The CDMA shall prefer a bill to the Pay &Accounts Officer,
Hyderabad for issuance of a Letter of Credit. The Pay and Accounts Officer, Hyderabad shall issue a
LoC for adjustment of these amounts in the PD Account of CDMA and the send the copies of LoC to
the Treasury Bank, the DTO, Hyderabad(Urban) and to the o/o CDMA. The APUIF shall furnish the
requirement of funds to Municipal Strengthening Unit(MSU) based on their readiness to transfer the
funds to ULBs.
Similarly, the other Implementing Agencies shall furnish their immediate
requirement of funds to MSU. The drawing & Disbursing Officer in the Office of the CDMA shall draw
and disburse funds with orders of the CDMA based on the requirement furnished by the MSU to
APUIF and other Implementing Agencies through cheques. Further, reconciliation of receipts and
payments shall be done once every month with Treasury Bank and Dist. Treasury Office, Hyderabad
(Urban). Funds under the Urban Infrastructure component of the project shall be transferred from
the PD A/c of C&DMA to the bank account of APUIF in terms of the orders issued in G.O.Ms.No.288
MA, dt.21.04.2009 of MA & UD Department and in accordance with instructions issued in G.O.
Ms.No. 43, dt.22.04.2000 and G.O.Ms.No. 113, dt.10.05.2007 of Finance (W&M) Departmenet.
APUIF will extend sub loans and sub grants to the local bodies subject to following the Treasury rules,
procedures and limitations of Government of Andhra Pradesh. The funds shall not be kept idle in the
bank account of APUIF. C&DMA shall transfer the funds to APUIF only when APUIF is in turn ready to
transfer them to the respective ULBs immediately thereafter.
11.
Further the funds relating to the other three components of the project namely the State
Level Policy Development, Capacity Enhancement and Project Management shall also be transferred
from the PD A/c of C&DMA to the bank accounts of the implementing agencies strictly in accordance
with the existing financial rules and procedures of Government of Andhra Pradesh in terms of
G.O.Ms.No.43, dated 22.04.2000 and G.O.Ms.No.113, dated 10.05.2007 of Finance (Ways & Means)
Department and the Government Orders issued from time to time on this subject. The MSU shall
recommend for release of funds to the other implementing agencies viz. MEMPA, DTCP and including
MSU as and when required based on the Progress Report both physical and financial and also
Utilization Certificate furnished by the concerned implementing agencies for the funds which were
released earlier.
12.
The criteria for release of APMDP funds to the ULBs is the Memorandum of Agreement
between MSU and the participating ULB in respect of implementation of Reforms Action Plan and
based on the progress on both fronts of Physical and Financial and subject to submission Utilization
Certificate with voucher-wise details. The process of release of funds is as described below:
1. The MSU shall recommend for release of first installment upon signing of
Memorandum of Agreement.
2. The MSU shall recommend for release of second, third and final installments upon
submission of satisfactory progress report indicating the progress achieved as per the
time frame agreed and also submission Utilization Certificate with voucher wise
details on each item of expenditure.
3. The MSU or any other institution nominated by MSU shall undertake site visit to
progress achieved for the agreed Reforms Action Plan in designated representatives
periodically.
4. As part of the progress report, the ULB submit a quarterly report of the progress
achieved for the agreed Reforms Action Plan to the MSU. In case the ULB fails to
submit such report it will be recommended to withhold further installments of loan
until such submission.
293
5. The ULB shall submit a complete report regarding outcome of the AP Municipal
Development Project on completion of the project to the MSU.
13.
The CDMA/MSU will be responsible for compiling the quarterly figures of “actual
expenditure” for all the project components, prepare quarterly IUFRs and send these to the Bank for
disbursement. These IUFRs will be certified by the CDMA, the Project Director and the Financial
Advisor (FA) for the project. The MSU will receive the expenditure information on Component B
from the APUIF and consolidate it with the overall project expenditure information received for
other components.
14.
Retroactive financing as agreed will be provided for expenditures, incurred after a specific
date, on contracts which follow Bank procurement guidelines and have maintained component wise
and category wise records of expenditure incurred. Retroactive financing of all expenditure,
including sub-projects selected for Bank financing, would be based on a separate, stand-alone,
audited IUFR which will report details of expenditures seeking to be reimbursed on contracts
procured as per the Bank’s Procurement Guidelines. Under retroactive financing, the amounts
sought for IBRD financing should correspond with disbursement by the project on the identified
contracts.
VI.
Accounting and Financial Reporting
15.
The CDMA/MSU will maintain project accounts on a cash basis for the components that it will
implement. A separate account code will be created for the project in the department’s overall
accounting system. An operations process note will be prepared by the Finance Officer of the CDMA.
This note will detail the applicable accounting and financial policies and procedures to enable data to
be captured and classified by expenditure center, project sub-components and disbursement
categories, in the prescribed accounting formats of the department. Standard books of accounts
(cash and bank books, journal, ledgers etc) will be maintained by the CDMA. Records of assets
created under the project will be separately maintained and will be subject to verification by internal
audit.
The CDMA/ MSU will be responsible for preparation of IUFRs reflecting the “Actual
expenditures” under each the project components and sub-components, as per the format agreed
with the Bank. Actual expenditures for components A, B and D are defined as moneys actually spent
on various project components and sub-components, as evidenced by payment vouchers, and will
not include advances of any kind made by the CDMA or the MSU to any entity, for any purpose. The
actual expenditures as reflected in the IUFRs will be the basis of disbursement of Bank funds to the
GOI. The IUFRs for the project will be submitted to the Bank within 45 days at the end of the each
quarter.
16.
The eligible expenditure under Component C (Urban Infrastructure Investment) will be the
actual amounts released by APUIF each quarter to the ULBs as loans/ grants for sub-projects. The
financial statements of the APUIF will record the grants and loans provided to the ULBs for subprojects, and will be prepared on an accrual basis. Accounting policies to be followed and disclosures
made will be in accordance with those mandated by the Indian Accounting Standards as applicable to
companies (since there are no relevant separate standards for Trusts). The APUIF will prepare
timely financial statements and get these audited by an auditor acceptable to the Bank.
294
17.
Accounting for sub-projects will be done in the ULB’s overall accounts. ULB accounts shall be
prepared on cash basis and these accounts will be audited by the Director of State Audit. A separate
record of assets created under the sub projects will be maintained at the ULBs, and these will be
physically verified by joint teams from the MSU and the APUIF. Although sub loan accounting will be
done by the ULBs’ own accountants, it will be the responsibility of the Finance Manager at the APUIF
and the Financial Advisor at the MSU/ CDMA to ensure that correct and up to date financial records
are maintained.
VII.
Staffing
18.
CDMA/MSU will have the responsibility for the overall reporting, disbursement and financial
management arrangements on the project. Day to day operations will be the responsibility of the
Project Director who will be appointed by the state government. The finance function of the Project
will be headed by a senior officer, preferably on secondment from the GoAP finance department
(Directorate of Treasuries or Directorate of Works Accounts) who has prior experience in the finance
function in any “works” department of the GoAP. The officer will be supported by appropriate
experienced staff and will be responsible for ensuring that actual expenditure information collected
and consolidated in respect of all the project components/ sub-components, and quarterly IUFRs are
prepared and sent to the Bank for disbursement. The officer will also be responsible for coordinating
the internal and statutory audit activity under the project and maintaining oversight over the LFAs
audit of the participating ULBs. The finance officer will be in place by negotiations.
19.
APUIF will have an experienced professional accountant as Finance Manager to be
responsible for all the financial management activities of APUIF, including compliance with statutory
and reporting requirements (including NBFC norms). The Finance Manager will oversee maintenance
of accounts, preparation of financial statements, and coordinating the annual audit of the APUIF.
S/he will be supported by appropriate experienced staff. It will also be the responsibility of the
Finance Manager to ensure that the ULBs follow appropriate accounting procedures with respect to
the sub loans and grants, that all flows and balances relating to these funds are recorded suitably in
their books of accounts, that ULBs submit quarterly expenditure reports, and that all ULB external
audits (by the LFA) are completed in a timely manner. S/he will also review all the ULB audit reports
and bring to the notice of the Project Director and the CDMA the observations and issues of
significance, especially those related to the sub-projects being funded by the Bank, for their action.
APUIF will prepare a consolidated statement of completion of audits and of significant observations
in respect of all the ULBs participating in the project, and send a report to the Bank at the end of
each half-year.
20.
ULB. A trained accountant will be in place in each of the sub-loan receiving ULBs to ensure
proper accounting and control for project money throughout the duration of the project.
VIII.
Internal Audit and Control
21.
A reputed and experienced CA firm or firms will be appointed as the Internal Auditor for the
entire project and they will be responsible for concurrent audit of the project, as per TORs agreed
with the Bank. The internal auditor will certify each quarter, the “actual expenditure” incurred by
the CDMA and the APUIF on all the Components, and this information will feed into the IUFRs. As
part of their duties, the internal auditors will also review the sub-loan portfolio of the APUIF and
295
examine if the grants and lending to the ULBs comply with relevant agreements signed between the
APUIF and the ULB. The auditors will also confirm that the relevant GoAP rules and procedures and
applicable GOs are followed in respect of operation of all the PD accounts and Bank accounts
maintained under the project. They will also verify that all the eligibility criteria for selection of ULBs
have been fully complied with. In each audit cycle the firm will also select and visit a sample of ULBs
and verify that the ULBs are utilizing the moneys as per the conditions of the sub-loan and -grant
agreements, and for the purposes for which the funding is given, and conduct a physical verification
of assets created through the sub-loans and Grants. They will also review and verify that the
expenditures incurred under other components and sub-components of the project are in
accordance with the internal financial rules and procedures of GoAP (including various finance codes
of the GoAP).
IX.
Statutory (External) Audit
22.
The CAG of India through the office of the Accountant General (Audit) AP will be the statutory
auditor for the project. The CAG’s office will conduct an annual audit of the operations of the
Project. The statutory audit of the project financial statements will be conducted in accordance with
the generic TORs that have been agreed between the Bank and the Government of India (Ministry of
Finance). The form of project financial statements will be prepared by the project in consultation
with the Bank, and will be agreed at the negotiations. TORs for the audit have been shared with
CDMA, who will seek the agreement of the CAG on these TORs. APUIF will be audited by a CA firm
acceptable to the Bank, while the ULBs will be audited by the State Audit Department, as required
under their Act. The Bank will review the CAG’s audit report of the project financial statements and
the audit report of the APUIF. Audit reports of the individual ULBs receiving loans and grants under
the project will be reviewed by the Project Director and the CDMA. The Bank will be informed of any
significant audit observations by the ULB audits. The following audit reports will be received by the
Bank within six months from the close of the financial year (due date for receipt of audit reports is 30
Sept of the year) and monitored in ARCS:
Implementing
entity
APUIF
Audit Report
Audited by
Entity audit report (with detailed Schedule of usage of Project
funds as sub-loans and Grants to ULBs under Component C)
Firm of Chartered
Accountants acceptable
to the Bank
CDMA
Audit of Project Financial Statements for the APMDP
DEA/ GOI
Special Account
296
CAG/ Accountant
General, AP
CAG of India
ANNEXURE 18:
FORMAT OF PROGRESS REPORT
ANNEXURE 18: Format Of Progress Report
Format of monthly Progress Report from ULB to CDMA / MSU
MONTHLY PROGRES REPORT ON Infrastructure Improvement Plan FOR THE MONTH OF>>>>
Name of the ULB:
Amount Rs.in Crores
Date of submition:
Sl.No.
1
Work
Name of Package
Descriptio
the
No.
n (name of awarded
package in Contracto
procureme
r
nt plan)
2
3
4
SC
approved
cost
5
Value of
contract
awarded
(actual
value)
Year of Planned
sanction completion
time
6
7
Share of
WB
8
297
GoAP
9
Amount Released by
APUIF
ULB
10
WB
11
GoAP
12
Total
% physical % Value Payment
progress of Work made by
completed
ULB
Balance
left with
ULB
13
14
16
15
Monthly progress report on implementation of Municipal Reform Action Plan (MRAP)
Name of the ULB:Sl. No.
1
Name of the Reform
2
Commitment as per the MoA for
the current financial year
3
298
Progress made during the
month
4
Cumulative progress made after
the end of the month
5
Monthly progress report on implementation of Capacity Enhancement Action Plan (CEAP)
Name of the ULB:Sl. No.
1
Name of the Capacity
enhancement initiative
2
Commitment as per the MoA for
the current financial year
Progress made during the
month
Cumulative progress made after
the end of the month
3
4
5
299
ANNEXURE-19
HR POLICY: REMUNERATIONS AND ALLOWANCES TO THE PROJECT PERSONNEL
<><><><>
I.
REMUNERATIONS TO OUTSOURCED PERSONNEL
The following remunerations shall be applicable to the project personnel employed in the
World Bank aided APMDP depending on the skill level for the Management Information Systems,
Technical Assistances and Consultancies, Capacity Building and Training Programmes, etc.
(a) MIS / GIS and other consultants on contract: The following maximum monthly
remunerations would be applicable to the outsourced personnel on Individual Contract depending
on T&M basis as per the government orders for engaging outsourcing services in the IT Department
of Government of AP in GO Ms. No. 23 IT & C Department, dated 02.11.2007 (copy appended). This
remuneration shall be limited to the rates determined through the competitive World Bank
procurement methods:
(1) Team Members (Skill Level of 1-2 years) :
(2) Module Leaders (Skill Level of 3-5 years) :
(3) Project Managers (Skill Level of 6-10 years):
Rs. 75,000/- (per person/month)
Rs. 1,00,000/- (per person/month)
Rs. 1,50,000/- (per person/month)
(b) Permanent Faculty engaged in the AP Urban Academy / SIUM: The institute like other
premier institutes of the state and the country like CGG, MCR-HRD, etc. would follow a flexible salary
structure commensurate with the qualification and experience of the faculty desired and in order to
attract the best talent. The compensations / remunerations of the faculty shall be minimum on UGC
pay scales or as otherwise permitted by the Governing Council of the Institute in order to compete
with the other institutes and private sector. The salary structure would be determined by the
Governing Council to maintain a competitive edge in terms of highly qualified and talented
manpower.
(b) Outsourced and other Contractual Employees: GO Rt. No. 336 MA, MA & UD (UBS)
Department, dated 01-03-2009, has extended the HR Policy as adopted in SERP
(World Bank Aided) to personnel engaged in MEPMA. For uniformity of
remunerations to the outsourced employees with other World Bank projects and
departments within MA&UD employing outsourced employees on the project
basis, the following payment structure to the sanctioned outsourced employees in
APMDP at par with SERP would be applicable. For Municipal Accountantant and
Financial Assistants, the compensation as existed in DFID aided APUSP would be
applicable as following depending upon experience:
300
Sl. No.
Designation
1.
Municipal Accountant and
Financial Assistants (MAFA)
2.
Personal
/
Administrative
Assistant / Steno / System
Administrator / Training assistants
3.
Computer Assistants / Data Entry
Operators / Draughtsmen /
Receptionist
4.
Drivers / Machine Operators
5.
Attender / Office Assistant /
Watchman / Gardener - Sweeper
Experience
0-2 years
2-3 years
3-5 years
Above 5 years
0-2 years
2-3 years
3-5 years
Above 5 years
0-2 years
2-3 years
3-5 years
Above 5 years
0-2 years
2-3 years
3-5 years
Above 5 years
0-2 years
2-3 years
3-5 years
Above 5 years
Remuneration
(per month)
Rs. 9,500/Rs. 10,750/Rs. 12,100/Rs. 14,500/Rs. 7,750/Rs. 8,000/Rs. 8,250/Rs. 8,500/Rs. 6,150/Rs. 6,400/Rs. 6,650/Rs. 6,900/Rs. 5,500/Rs. 5,750/Rs. 6,000/Rs. 6,250/Rs. 4,900/Rs. 5,150/Rs. 5,400/Rs. 5,650/-

As in SERP, an Annual Grade Increment @ 6 % on above remuneration shall be given to
outsourced employees who are working in APMDP at any office.

As in SERP, all outsourced employees shall be eligible to avail 12 Casual Leaves, Maternity
Leave (120 days up to two surviving children), Paternity Leave (15 days up to two surviving
children). Upon completion of one year of employment, 18 annual leaves shall be added to
the credit of the outsourced employee.

The manpower agency firms who supply man-power would be required to extend
appropriate Provident Fund facility as per the Labour Contract Laws in vogue
II.
ALLOWANCES
The policies towards the allowances followed by the National Institute of Smart Governance
funded by the Ministry of Information Technology to maintain the required HR policies and standards
which are also followed by GoAP HRD institutes like CGG and other externally aided projects like of
SERP are necessary to be followed herein in order to compete and attract the best personnel and
services to meet the project objectives of the externally aided projects. The following allowances
shall be applicable to personnel specifically and exclusively deputed, engaged or outsourced for the
APMDP project including for the AP Urban Academy / State Institute of Urban Management funded
from the project and including members of its state level committees as per the GO Ms. No. 288,
MA&UD (UBS) Deptt., dated 21 st April, 2009:
301
1.
Basic Principles







2.
Official travel is not a source of profit
Reasonable conditions of travel and stay
Generally standard terms for all categories of officers
Easy to understand and administer
Scope for exercise of financial prudence by officer to reduce expenditure
Use of services of approved travel agent to get best terms
Combination of best practices in Government and in private sector
Definition of Categories




3.
Category 1 – Members of Steering Committee of the project including DG of the Academy
Category 2 – Project related District Level Officers at MSU / ULBs / Implementing Agencies
and Professors of the Academy
Category 3 – Other project related government officers in MSU / ULBs / Implementing
Agencies / other permanent or government staff at Urban Academy / Consultants and
Individual Consultants on contract
Category 4 – Other Contractual and outsourced staff of the project
Mode of Travel on Tours




4.
Domestic Bus travel: AC / Non-AC Bus travel for all categories as per prior sanction.
Domestic Car travel: AC Taxi for category 1 and 2 and non-AC for Category 3.
Domestic Rail travel: AC First Class for Category 1 and Category-2; AC 2-tier / 3-tier for
Category -3; Non-AC Sleeper 3-tier for Category-4.
International / Domestic Air travel: Business class for Category-1; Economy class for
Category-2; Economy class with specific prior sanction for other categories.
Lodging Charges


Abroad: As in CGG, SERP maximum US $150/- per night for Category-1 (in case travel with
Ministers/Secretaries or for conferences actual costs would be permissible); US $125/- for
Category - II; US $ 100 for all other categories.
India: As per the permitted actuals as per the World Bank procurement methods.
Exceptions: Waiver of the above conditions with regard to eligibility in travel and lodging and in view
of any special circumstances (like urgency and non-availability in the eligible class) shall rest with the
sanctioning authority.
5.
Subsistence Allowances

India: At par with the rates in APUSP and personnel engaged in other Externally Aided
Projects the following subsistence allowance shall be applicable for each completed hour at
the place of temporary official duty in India (in USD / equivalent).
302
Aplicability of subsistency Allowance for Travel in India (per hour)
Category-I
Category-II
Category-III
Category-IV

6.
Overseas: US $2/- for each completed hour at place of temporary official duty (All Categories)
International Travel Documentation (Charges which are reimbursable)





7.
Cost of passport services;
Visa related charges;
Cost of photographs/immunisation;
Cost of medical insurance for hospitalisation abroad, and,
Other such necessary expenses as permitted.
Advances:

8.
Advance of anticipated expenditure as approved by the Sanctioning Authority.
Entertainment Allowance

9.
At actuals for Category-I (Production of bills mandatory)
City Compensatory Allowance

10.
As in SERP, City Compensatory Allowance (CCA) shall be paid to the employees working in
MSU office at Hyderabad over and above the remunerations @ Rs. 1250/- (Rupees One
Thousand Two hundred and Fifty only) per month.
Insurance Allowance

11.
per hr. (in USD)
$ 1.00
$ 0.75
$ 0.50
$ 0.25
Medical and Personal Accident Insurance shall be provided at par with SERP employees to all
categories.
Local Transport Policy: Vehicle Allotment
As in CGG, SERP, etc., the project personnel are required to hire vehicles to be used for project
purposes:
1. Category-I
A/C vehicle, (Tata/ Mahindra/ Toyota or any other
permitted vehicle. In view of early morning and late
night work an additional vehicle would to be reserved.
Log book to be maintained by PA)
303
2. Category-II
A/C vehicle, (Tata/ Mahindra or any other permitted
vehicle.)
3. Category-III and IV
For late working hours (beyond 8 PM) based on
certifications by the concerned reporting officer,
eligibility of reimbursement of actual auto expenditure.
Two pool vehicles shall be under the control of Disbursement Analyst in MSU and Academy
for other category and two public transport vehicles on hire will be under the control of
Capacity Enhancement Specialist for trainings. Log book to be maintained by the concerned
assistants.
Note: All travelling and lodging expenses will be reimbursed only against the paid bills/receipts from
the shortlisted support agencies by EOI as per the World Bank procurement procedures.
III.
S.No.
1
2
3
4
5
6
7
IV.
SANCTIONING AUTHORITY:
For all levels, the following shall be the sanctioning authorities:
LEVEL
C&DMA, HODs, DG
All other personnel of Academy / SIUM
Project Director
All other personnel of MSU
All other project personnel of implementing department
ULB Commissioner
All project personnel at ULB
MODE OF SANCTION
Government
DG
CDMA
Project Director
Concerned HOD
CDMA
ULB Commissioner
PROCEDURAL DETAILS:
All the Officers and staff should invariably take necessary prior written sanction for the tour in
order to claim the above allowances. The concerned sanctioning authority shall detail the necessary
internal procedural rules by designating responsible officers within their units for the internal
scrutiny and accounts.
304
GOVERNMENT OF ANDHRA PRADESH
Abstract
AP Portal Project- Updated Guidelines to departments for developing G2C, G2G and
G2B applications and services and hosting them on Internet - Application Development,
Maintenance, Implementation & Transaction/Subscription based charges on AP Online Orders - Issued.
Information Technology & Communications Department
E-Governance
G.O.Ms.No.23
Dated: 2.11.2007
Read the following:-
1. G.O.Ms. No. 19 of IT&C Department, dated: 03.07.2004
2. G.O.Ms. No. 21 of IT&C Department, dated: 28.07.2005
3. G.O.Ms. No. 14 of IT&C Department, dated: 06.07.2006
ORDER:
1.
Government of Andhra Pradesh wishes to improve the efficiency and productivity of operations
of all departments in addition to being citizen centric. APOnline Ltd., a Joint Venture between
Government of Andhra Pradesh and Tata Consultancy Services limited, is being revitalized to be made
relevant to the growing IT needs of all departments.
APOnline Ltd., also operates and maintains the official portal of the Government of Andhra Pradesh
(http://www.aponline.gov.in) with a view to provide an electronic gateway to various services offered by the
Government. The GO read above offers detailed guidelines for the development of application, services and
websites and their hosting by APOnline.
2.
With a view to enable Government departments to utilize the services of APONLINE LIMITED, in a
speedy and convenient manner, the following guidelines are prescribed in supersession of the guidelines
issued in the GO Ms No.19 read above. These guidelines willl come into force with effect from the date of
issue and will be valid for a period of one year. The departments of the Government of Andhra Pradesh are
permitted to entrust the work relating to
development, implementation and maintenance of application software, and related activities to the
APOnline Ltd without following any other selection process subject to the payment of the following charges.
Alternatively, the departments are not restricted from pursuing a competitive bidding process for the
procurement of these services.
Rates for various services to be rendered by the ApOnline Portal are as follows:
a. Charges for Development of Software Applications :
S.
No
1
Category of Application
Cost (in Rs)
Management Information
System (Simple)
75,000
Functionality
These applications include various simple
reporting systems, which are reviewed at the
level of Secretaries, HOD, Collector and
Department Officers. The application shall
have features to enable the following:
305
2
Management Information
System (Complex)
including online payment
features.
3
Online application for
Registration, Certificates,
Admissions, Licenses,
Benefits. (Applicable only
wherever service charges
are not collected from
the citizens)
4
Application Development,
Maintenance & Support
(a)
One data entry screen at
the field
levels like mandal & district
(b) Three reports each at district & state levels
(detailed, summary & exception reports)
with options to view these reports mandal
wise and district wise for any prescribed
period.
Examples:
Monthly reports, quarterly reports etc.
Which are reviewed by Secretaries/ HoD /
Collector and Daily reports on revenue
receipts by revenue earning departments
etc.
1,50,000
These applications include various complex
reporting systems which are reviewed at the
level of Secretaries, HoD, Collector, District
officers. The application shall have the features
to enable the following:(a) Three data entry screens at the field
levels like Mandal & District
(b) Automatic consolidation at all levels
(c) Four reports including drill-down and
graphical options for each report as
needed at district and state levels
(detailed, summary and exception
reports) for a specified period.
Examples:
MIS for Single Window Clearance, File
Disposal System and Performance
Monitoring System etc.
2,00,000
This application enables provision of
interactive services through portal:
(a) It enables the citizen to file an
application seeking a registration or a
certificate from a statutory authority
like for caste/ birth certificate of
applying for study centres, for
scholarships by students applying for a
license and applying for benefits under
various Govt scheme etc.
(b) Provides online acknowledgement
(c) Enables tracking of the status of the
application
(d) Enables verification/printing of the
certificate as and when the same has
been issued by the statutory authority
• For Team
Pricing is on a T&M basis. Transition to a Fixed
members at a Price
skill level 1-2 Model can be adopted after a detailed study of
years of of Exp- the
Rs.75,000 per application. It is recommended that
person month.
Maintenance & Support work be entrusted
306
For
Module
Leaders
&
Architects at a
skill level 3-5
years of of ExpRs.1,00,000 per
person month.
• For Project
Leaders with 3-5
years of Exp –
Rs.1,25,000 per
person month.
• For Project
Managers with
6-10 years of
experience
Rs.1,50,000 per
person month.
initially on a T&M basis for a period of 6
months with an option to move
to Fixed Price later. Price for a Fixed Price
Model will be submitted separately by
APOnline within a week after the completion
of the study.
Notes
1. This model can be employed by desirous
departments for evaluating and reengineering
(if required) their existing applications.
2. The composition of the Project Team will be
decided by the concerned department in
mutual
agreement with APOnline.
3. In the event of the Project Team members
being shared across various projects of the
same department or different departments;
the related costs will be apportioned
accordingly.
b. Charges for specialized skills, BPO & Call Center applications
Government Departments can employ services of APOnline for areas requiring niche skills such as Data ware
housing, SAP or to set up BPO and Call Centers. Prices can be mutually agreed up on between APOnline and
the department for these services.
c. Development, Hosting, Maintenance, Application Hosting and Data transfer charges of Website:
(i)
1. The charges for development for a website consisting of up to 30 pages will be Rs.30,000/2. The charges for development of every additional web page will be Rs.300/-
(ii). Many of the departments run their websites with different ISPs including some outside the country
depending on convenience. It is felt desirable that the hosting of websites can be promoted
through the framework of APOnline Portal by prescribing a uniform rate of hosting, as described below:
Storage Space
Upto 200 MB
Upto 500 MB
Upto 1 GB
Upto 5 GB
Upto 10 GB
Upto 20 GB
Annual Charges (in Rs.)
20,000/30,000/33,000/66,000/1,15,000/2,00,000/-
For additional space and the data transfer, the following charges are applicable.


Annual charge for additional space of 1GB is Rs.5,000
Minimum unit for charges will be a month
307
iii.
For the application, which require significantly higher bandwidth, during a short period of less than 1
month, for example Exam results, Hall tickets, etc., charges would be levied as under:
Storage Space
Upto 200 MB
Upto 500 MB
Upto 1 GB
Upto 5 GB
Upto 10 GB
Upto 20 GB
Annual Charges (in Rs.)
30,000/40,000/43,000/76,000/1,25,000/2,10,000/-
The above hosting charges include:
I.
II.
III.
IV.
V.
VI.
Storage and setup charges, which implies that necessary memory space will be made available
and the site should be ready for viewing on the Internet.
Maintenance and Support of the website.
Storage and setup charges, which implies that necessary memory space will be made available
and the site should be ready for viewing on the Internet.
Periodic updation of website as necessary.
Regular reminder of URL registration / renewal to the Department.
Any Data base should be supported. Conversion should be done by Aponline Ltd only
d. Advertisements, Notifications, Notices, and Tenders:
The departments are advised to place their respective advertisements, notifications, notices and tenders
on APOnline Portal. The above will be hosted on the APOnline Portal for a period not exceeding one
calendar month.
e. Revenue sharing between APONLINE Limited, government Departments and other stakeholders:
(a). There shall be a sharing of revenue arising out of any web- based application of any department or
agency hosted on APOnline - in such a proporation which will reflect relative efforts involved in providing
the services to the citizen, which could include a whole spectrum starting with backend computerization
activity, middleware, hosting and front end services. The actual manner in which the revenue has to be
shared will be decided through a SLA that will take into account the interests of the following
stakeholders.
1.
2.
3.
4.
5.
The department or agency that develops and implements the backend
The agency that develops and maintains the middleware
the Portal Joint Venture
The owner of delivery mechanism namely kiosk or service center
The payment gateway, if any
(b). The above revenue sharing shall be worked out department – wise and service- wise, to be
eventually incorporated into a SLA, after approval by a specially empowered committee to be
appointed by the Government of Andhra Pradesh.
f. Home Delivery Service on AP online: AP Online franchisees may offer services at the doorstep of
the Citizen of Andhra Pradesh with a device that can connect in time to APOnline servers. For this
service, the franchisee can charge Rs.5/- per transaction to be borne by citizen.
308
3. Payments to APONLINE LIMITED:
a) GOAP Departments will forward all payments to APONLINE Limited towards their
subscription, transaction, hosting and development charges by AP Online Limited.
b) 50% of Software development charge shall be paid to the APONLINE Ltd. in advance. The
remaining 50% of the amount shall be paid after successful implementation and stabilization
of the application/service. For Maintenance & Support Projects on a T&M basis, the invoice
will be presented on a monthly basis. For Maintenance & Support Projects on a Fixed Price
Model, payment terms can be arrived through mutual agreement with the respective
department.
c) All payments shall be made by DD/Cheque in favor of APONLINE Limited, payable at
Hyderabad. Within 15 days of presenting the invoice.
d) Principal Secretary, IT&C will facilitate with the respective departments for any outstandings
that are due to APOnline for invoices that are pending for over 3 months.
All prices are exclusive of taxes.
e) It is for the concerned department to workout specific time frame for execution of works with
the APOnline. In case of any deficiency of service, the concerned department can withhold a
part payment due to APOnline in consultation with IT&C Department.
4. Responsibilities of APONLINE LIMITED:
The APONLINE LTD shall be responsible for the following:
a) Ensure uptime of Portal servers at a service level of 99% on a monthly basis. Thus a
high availability of online services to citizens/businesses would be ensured. Preventive
maintenance schedules on Portal servers and the duration of maintenance and shut
downs will be intimated well in advance to GOAP and information will be made
available on AP portal.
b) Ensure that the sufficient bandwidth is available at the server end, so that the time
taken in viewing any page is reasonable, say less than 7 seconds. If the time to
download any page exceeds the above stated time, APONLINE Limited shall ensure
that internet bandwidth to the website is increased, so that the time of download
comes down to below 7 seconds. In case the above service level is not maintained,
(i) No amount will be payable to the APONLINE Ltd. by the Department.
(ii)Amounts paid to APONLINE Ltd. as advance shall be recovered.
(iii)Departments will be free to migrate to any other service Provider, duly indicating
reasons therefore.
309
(c). Defects/bugs in software (if any) noticed by HODs will be attended promptly and
depending on the severity of defect, time norms will be set for rectification and
redeployment.
The table below is indicative on the service levels for rectification of defects:
SL.NO Nature of Defect
1.
Critical: Service delivery is
impaired
Important: Service delivery is
affected partially and causes
dissatisfaction
Service likely to be affected in
future
2.
3.
Severity
Category
High
Fix Time
Average
2 days
Low
10 days
8 Hours
(d) Provide technical support to Portal users through help desk facility. The help desk will function
between 9.00 AM and 6.00 PM on all working days.
(e) APONLINE Limited shall be responsible for security/ upkeep of data maintained on Portal servers
located in its data center. Firewall protection and usage of Intruder Detection Systems will be
provided. Back-ups of data will be taken twice in a week and maintained in a protected environment.
(f) Impart training to select departmental users, on on-line services.
I.
II.
III.
Initial training on Portal Services & operations to Nodal Officers.
Training to departmental functionaries.
Training of staff at Government department counters.
5. Ownership:
The ownership of the applications, websites developed in terms of para 2 (a), (b) & (c) above, as well as the
data captured/hosted on the AP Online shall rest with the concerned department. AP Online shall handover a
copy of the software to the departments concerned along with source code and documentation in respect of
each version.
6. Responsibilities of Departments:
1. Each department/HOD shall identify the citizen services that can be offered at Kiosks / online through
APOnline and finalize the dates by which the services should be offered through APOnline.
2. Each department/HOD shall appoint an officer who will be the single point contact for APONLINE LTD.
Responsibilities of the nodal officer shall be to:




Facilitate/liaise with APONLINE LTD on the organization’s services to citizens
Provide access to forms, data and knowledge of business processes
Ensure updating of information on the Portal about the organization
Provide contact details of key functionaries at State/District/Mandal level including telephone
numbers, e-mail Ids, addresses
3. All departments of Secretariat/ HODs shall make an effort to migrate their
applications/website/services to APOnline
310
7. Contact Details:
For any system access related issues, users may contact
Name
APonline Help Desk
Telephone
66675612
Email ID
[email protected]
8. This
order
issues
with
the
concurrence
U.O.No.5864/128/A2/Expr.GAD.II/07; dated: 6.8.2007
of
Finance
Department
vide
their
9. A copy of the G.O is available at http://www.aponline.gov.in/ and http://www.ap-it.com/
(BY ORDER IN THE NAME OF THE GOVERNOR OF ANDHRAPRADESH)
S.K. JOSHI
SECRETARY TO GOVERNMENT
To
All Departments in the Secretariat
All HODs
All District Collectors
M/s. APONLINE Limited, Kohinoor ePark, No1, Jubilee Layout, Hyderabad-81.
Copy to:
The PS to Chief Secretary
The PS to Secretary, IT&C Dept.
//FORWARDED BY ORDER//
SECTION OFFICER
311
ANNEXURE 20
PROCUREMENT PLAN FOR CONSULTANCIES
312
Annex-20: PROCUREMENT SCHEDULE FOR CONSULTANCY SERVICES (PROPOSAL)
(Ist Year 18 months 01.06.2009 to 01.12.2010)
Country: INDIA
Borrower: GOVERNMENT OF ANDHRA PRADESH
Project: ANDHRA PRADESH URBAN REFORMS AND MUNICIPAL SERVICES PROJECT
Packag
e No.
Description
Method of Quantity
Procureme (Number)
nt
Procure
ment
Authority
Estimated Estimate Review Firm/ National
Cost
d Cost by bank Individu /Interna
(RS. In (Million prior/
al
tional
Million
USD)
post
short list
local
currency)
1
State Level Policy and Institutional Development
1.1 Study for
modernization of
planning
QCBS
Single
MSU
2.50
legislation
(consultancy)
1.2 Urban Finance related services
a)
Consultancy for
FMIS
QCBS
Support to FMIS
including
QCBS
integration of
Suvidha
1.3 Urban Training Academy
Single
MSU
5.0
0.05
Post
Individ
ual
0.10
Post
Firm
Consultancy for
design and
planning project
TOR, EOI SPN
and RFP
drafted
Estimate
Prepared &
Sanctioned
Appraisal
Revised
Actual
1.8.2009
1.8.2009
18.8.2009
8.9.2009
25.09.2009
Appraisal
Revised
1.6.2009
1.6.2009
17.06.2009
7.7.2009
1.4.2010
1.4.2010
16.04.2010
1.7.2009
1.7.2009
1.7.2009
Appraisal
Revised
Actual
Appraisal
Actual
Appraisal
b)
a)
Stage
Evaluation of
technical
proposals and
submission of
report to the Bank
Bank's No
Objection to
technical
evaluation
report
Opening of
Bank's no
Contract Signed Publication of
Contract
Procurement Monitoring
No. of Consultants
Bid
Contract
financial
objection to
Contract Award Completed
Applied particip Qualifie premiu Planned Actual
proposals and contract award
ated
d
m
financial
recommendatio
evaluation
ns
16.10.2009
23.10.2009
-
30.10.2009
4.12.2009
11.12.2009
28.7.2009
18.8.2009
25.8.2009
-
9.09.2009
8.10.2009
13.10.2009
7.5.2010
28.5.2010
18.6.2010
25.6.2010
-
9.07.2010
7.08.2010
13.08.2010
17.07.2009
7.8.2009
28.8.2009
18.9.2009
25.9.2009
-
9.10.2009
6.11.2009
13.11.2009
1.7.2009
17.07.2009
7.8.2009
28.8.2009
18.9.2009
25.9.2009
-
9.10.2009
6.11.2009
13.11.2009
1.4.2010
1.4.2010
16.4.2010
7.5.2010
28.5.2010
18.6.2010
25.6.2010
-
9.7.2010
7.8.2010
13.8.2010
1.9.2009
1.9.2009
17.9.2009
7.10.2009
21.10.2009
28.10.2009
18.11.2009
25.11.2009
-
9.12.2009
7.1.2010
14.1.2010
1.4.2010
1.4.2010
16.4.2010
7.5.2010
21.5.10
28.5.2010
18.6.2010
25.6.2010
2.7.10
9.7.2010
7.8.2010
13.8.2010
1.10.2009
1.10.2009
16.10.2009
7.11.2009
27.11.2009
18.12.2009
26.12.2009
-
2.1.2010
6.02.2010
15.02.2010
Revised
Actual
Single
MSU
20.0
0.40
Post
Firm
Single
MSU
5.0
0.10
Post
Firm
Revised
Actual
10.0
0.20
Post
Firm
Appraisal
Appraisal
QCBS
Bank’s No
Publication of Preparation of
Approval of Issue RFP to short
Receipt of
Objection to SPN in UNDB and
shortlist
shortlist/RFP by listed consultants proposals and
TOR, EOI SPN,
Newspapers
Bank
opening technical
RFP Document
proposals
1.4 Studies for preparation of Urban poor program
a)
Consultancy for
preparation of
urban poor
strategy
QCBS
Single
MSU
Revised
Actual
1.5 Study for
preparation of
QCBS
Single
MSU
Urban PPP
FrameworkConsutancy
Enhancement
2 Capacity
2.1 Capacity building for professionalisation of
urban management and operations including
related to urban poor programme.
a)
b)
Capacity
building
training,
implementation
of CENA and
studies for
furhter strategy
formulation
Training to Urban
poor programme
(Community)
10.00
0.20
Post
Firm
Revised
Actual
QCBS
Single
MSU
15.0
0.30
Post
Firm
QCBS
Single
MSU
40.0
0.80
Prior
Firm
MSU
15.0
0.30
Appraisal
9.4.2010
31.7.10
Revised
Actual
2.2 Technical Assistance for Institutional and
Financial improvements at ULBs
a)
Technical
QCBS
Assistance to
ULBs
Design of ULB
institutional and
financial
management
strategy
programme
Single
Appraisal
Revised
Actual
Post
Firm
2.3 GIS Mapping for
selected ULBs and
support cell at
DTP
313
No. of
offers
rebid
No. of Extensio
offers n of bid
with validity
insuffici
ent bids
a)
b)
c)
d)
e)
TA Studies for
design of
simplified land
use planning
process,
operations
manual and
new act
TA for GIS base
maps
Appraisal
QCBS
Single
MSU
7.5
0.15
Post
Firm
1.7.2009
17.7.2009
7.8.2009
Appraisal
1.4.2010
1.4.2010
Revised
Actual
Appraisal
1.4.2010
Revised
Actual
Appraisal
28.8.2009
18.9.2009
25.9.2009
-
2.10.2009
09.4.2010
16.4.2010
7.5.2010
1.4.2010
9.4.2010
16.4.2010
1.4.2010
1.4.2010
9.4.2010
1.4.2009
1.4.2009
1.7.2009
1.7.2009
6.11.2009
13.11.2009
21.5.2010
28.5.2010
18.6.2010
25.6.2010
2.7.2010
9.7.2010
31.7.2010
7.8.2010
13.8.2010
7.5.2010
21.5.2010
28.5.2010
18.6.2010
25.6.2010
2.7.2010
9.7.2010
31.7.2010
7.8.2010
13.8.2010
16.4.2010
7.5.2010
21.5.2010
28.5.2010
18.6.2010
25.6.2010
2.7.2010
9.7.2010
31.7.2010
7.8.2010
13.8.2010
16.4.2009
7.5.2010
28.5.2010
18.6.2010
25.6.2010
-
09.07.2010
7.08.2010
13.08.2010
17.7.2009
7.8.2009
28.8.2009
18.9.2009
25.9.2009
2.10.2009
9.10.2009
6.11.2009
13.11.2009
Revised
Actual
QCBS
Single
MSU
32
0.64
Prior
Firm
QCBS
Single
MSU
74.5
1.49
Prior
Firm
TA for
preparation of
Master Plan
QCBS
Single
MSU
43.0
0.86
Prior
Firm
Establishment
of GIS
Monitoring Cell
within the
Department of
Town Planning
QCBS
TA for property
and utility
Mapping
1.7.2009
Revised
Single
MSU
9.5
0.19
Post
Firm
Actual
Appraisal
Revised
Actual
4 Project Management
4.1 Monitoring & Evaluation system
(CDMA/ APUFIDC)
a)
Consultancy for
design
development
training and
implementation
plan
Appraisal
Revised
QCBS
Single
MSU
25.00
0.5
Prior
Firm
Actual
10.7.2009
21.8.2009
20.10.2009
4.2 Support to CDMA & APUFIDC for management
a)
b)
c)
Procurement of
experts for
Technical Audit
Procurement of
experts for
Procurement
Audit
Procurement of
experts for
Financial
Management
Audit (Internal
& External)
1.7.2009
17.7.2009
7.8.2009
28.8.2009
18.9.2009
25.9.2009
-
2.10.2009
6.11.2009
13.11.2009
Single
MSU
5.0
0.1
Post
Firm
Appraisal
Revised
Actual
1.7.2009
QCBS
1.7.2009
17.7.2009
7.8.2009
28.8.2009
18.9.2009
25.9.2009
-
2.10.2009
6.11.2009
13.11.2009
Single
MSU
5.0
0.1
Post
Firm
Appraisal
Revised
Actual
1.7.2009
QCBS
Appraisal
1.7.2009
1.7.2009
17.7.2009
7.8.2009
28.8.2009
18.9.2009
25.9.2009
-
2.10.2009
6.11.2009
13.11.2009
Revised
Actual
QCBS
Single
MSU
5.0
0.10
Post
Firm
4.3 Sub-project preparation and implementation
support to ULBs
a)
Revision of
DPRs
Group I ULBs
Palasakasibugg
a, Markapur
QCBS
1.6.2009
17.6.2009
7.7.2009
28.7.2009
18.8.2009
25.8.2009
-
9.9.2009
8.10.2009
13.10.2009 12.11.2009
MSU
1.5
0.03
Post
Firm
Appraisal
Revised
Actual
1.6.2009
Single
Group II ULBs
Guntur &
Malkajgiri
1.6.2009
17.6.2009
7.7.2009
28.7.2009
18.8.2009
25.8.2009
-
9.9.2009
8.10.2009
13.10.2009 12.11.2009
Single
MSU
3.0
0.06
Post
Firm
Appraisal
Revised
Actual
1.6.2009
QCBS
Group III ULBs
Armoor,
Kurnool
1.6.2009
17.6.2009
7.7.2009
28.7.2009
18.8.2009
25.8.2009
-
9.9.2009
8.10.2009
13.10.2009 12.11.2009
Single
MSU
3.0
0.06
Post
Firm
Appraisal
Revised
Actual
1.6.2009
QCBS
314
b)
c)
Third Party Quality Assurance
Consultants (TA)
Group I ULBs
Palasakasibugg
MSU
a, Markapur &
QCBS Single
Guntur
Group II ULBs
Malkajgiri,
MSU
Armoor &
QCBS Single
Kurnool
Preparation of sub project DPRS by
consultants.
Group I ULBs
Vizianagarm,
Kakinada,
Manuguru
Group II ULBs
Ananthapur,
Chittor, Badvel
d)
e)
Group III ULBs
Rajendra
Nagar(DPR is
ready)
Group IV ULBs
Nizamabad,
Kothagudem,
Metpalli,
Bhainsa,
Narayanpet,
Medak,
Suryapet
Group V ULBs
Proddatur,
Adoni,
Hindupur,
Srikalahasti
Firm
1.8.2009
0.6
Prior
Firm
Appraisal
Revised
Actual
1.8.2009
30.0
18.8.2009
8.9.2009
10.8.09
18.8.2009
8.9.2009
25.9.2010
16.10.2009
23.10.2009
-
30.10.2009
22.09.2009
20.9.2009
19.10.2009
26.10.2009
3.11.2009
09.11.2009
4.12.2009
11.12.2009
30.11.2009
7.12.2009
14.12.2009
1.7.2009
10.7.2009
17.7.2009
7.8.2009
21.8.2009
28.8.2009
18.9.2009
25.09.2009
2.10.2009
9.10.2009
30.10.2009
6.11.2009
13.11.2009
5.2.2010
MSU
30.0
0.6
Prior
Firm
Appraisal
Revised
Actual
1.7.2009
Single
1.7.2009
10.7.2009
17.7.2009
7.8.2009
21.8.2009
28.8.2009
18.9.2009
25.09.2009
2.10.2009
9.10.2009
30.10.2009
6.11.2009
13.11.2009
5.2.2010
Single
MSU
83.0
1.6
Prior
Firm
Appraisal
Revised
Actual
1.7.2009
QCBS
1.3.2010
17.3.2010
7.4.2010
28.4.2010
18.5.2010
25.5.2010
-
9.6.2010
6.7.2010
13.7.2010
19.50
0.4
Post
Firm
Appraisal
Revised
Actual
1.3.2010
MSU
1.3.2010
17.3.2010
7.4.2010
28.4.2010
18.5.2010
25.5.2010
-
9.6.2010
6.7.2010
13.7.2010
10.0
0.2
Post
Firm
Appraisal
Revised
Actual
1.3.2010
MSU
1.5.2010
17.5.2010
7.6.2010
28.6.2010
19.7.2010
26.7.2010
9.8.2010
6.9.2010
13.9.2010
6.12.2010
0.33
Post
Firm
Appraisal
Revised
Actual
1.5.2010
16.50
1.5.2010
17.5.2010
7.6.2010
28.6.2010
19.7.2010
26.7.2010
9.8.2010
6.9.2010
13.9.2010
6.12.2010
0.08
Post
Firm
Appraisal
Revised
Actual
1.5.2010
4.0
Appraisal
Revised
Actual
1.5.2010
1.5.2010
17.5.2010
7.6.2010
28.6.2010
19.7.2010
26.7.2010
2.8.2010
9.8.2010
6.9.2010
13.9.2010
6.12.2010
Appraisal
Revised
Actual
1.5.2010
1.5.2010
17.5.2010
7.6.2010
28.6.2010
19.7.2010
26.7.2010
-
9.8.2010
6.9.2010
13.9.2010
6.12.2010
QCBS
Single
Preparation of sub project DPRs by
Consultants for 2nd year procurement of
works
Group I ULBs
Amadalavalasa,
Ongole,
Jaggaiahpet,
MSU
QCBS Single
Narsapur,
Anakapally
Group II ULBs
Bobbili
Amalapuram,
Chilakaluripet
(Revision of
DPR)
Post
QCBS
Third Party Quality Assurance
Consultants
(TA)
Group I ULBs
Vizianagarm,
Kakinada,
QCBS Single
Manuguru
Group II ULBs
Ananthapur,
Chittor, Badvel
1.8.2009
0.38
Appraisal
Revised
Actual
1.8.2009
19.0
QCBS
Single
MSU
Firm
QCBS
Single
MSU
25.0
0.5
Prior
Firm
QCBS
Single
MSU
18.0
0.36
Post
Firm
Total
Appraisal
Revised
Actual
10.5.2010
21.6.2010
30.8.2010
591.50 11.78
PROJECT DIRECTOR
MSU-APURMSP
DATE
VERSION NO.
APPROVAL DATE:
315
ANNEXURE 21
PROCUREMENT PLAN FOR WORKS
316
PROCUREMENT PLAN
I.General
1.
Project information:


State Name: Andhra Pradesh (APMDP)
Agency responsible for preparing the procurement plan: MSU.
2.
3.
Bank’s approval Date of the procurement Plan
Draft Procurement Plan dated 6th May 2009 Revision 1 approved on ___________
3.
Date of General Procurement Notice: ………………..
4.
Period covered by this procurement plan: 18 months (From 01-06-2009 to 01-12-2010) Is there
retro-financing proposed, if so that needs to reflect in the procurement plan
II. Goods and Works and non-consulting services.
1 a) Procurement Methods and Thresholds
Category
Method of Procurement
ICB
NCB
Shopping
DC / Force Account
Goods
ICB
(also applicable for non- NCB
intellectual services and the Shopping
services contracted on the Petty Purchases
basis of performance of
measurable
physical
outputs)
Works
1(b) Prior Review Threshold
Works/Goods:
Services
(Other than consultancy)
Threshold (US$ Equivalent)
> 5million $
20,000$ < -< 5 m$
< 20,000 $
Based on Bank prior approval
>5,00,000 $
20,000$ < -< 5,00,000 $
< 20,000 $
$ 500 (Cummulative $5000)
All con estimated $5million Equivalent;
2.
3.
4.
Pre-qualification. Not applicable
Reference to (if any) Project Operational/Procurement Manual: Please add
Any Other Special Procurement Arrangements: NA
5.
Procurement Packages with Methods and Time Schedule317
1(b) Prior Review Threshold
Works/Goods:
Services
(Other than consultancy)
All con estimated $5million Equivalent;
2.
3.
4.
Pre-qualification. Not applicable
Reference to (if any) Project Operational/Procurement Manual: Please add
Any Other Special Procurement Arrangements: NA
5.
Procurement Packages with Methods and Time Schedule-
III.
Selection of Consultants.
1(a) Selection Methods and Thresholds
Category
Method of Procurement
Threshold (US$ Equivalent)
Consultants Services CQS/QCBS/LCS
Consultants’ Services. As per para 5.2 to 5.4 of the
( Individual)
World Bank Guidelines.
Services Delivery
As per para 3.2.1 of the
Contractors.
World Bank Guidelines.
1 b) Prior Review Threshold
1.Study for modernization of Planning Legislation Services .
2. Urban finance related.
3. Urban raining Academy.
Consultancy Servies:
4. Study of Urban poor Programme.
5. Study of Urban PPP fre.
6. Trains Capacity-blds.
7. GIS Mapping @DTP 8 Sub Project Preparation.
2. Any Other Special Selection Arrangements:
3. Reference to (if any) Project Operational/Procurement Manual:
As in 1(b) as per Ann II
4. Consultancy Assignments with selection Methods and Time Schedule.
Refer Annexure III
enclosed.
IV. Implementing Agency Capacity Building Activities with Time Schedule.
Please mention as discussed.
318
Slice 1:
Providing offtake
arrangements at
Regulapadu
Off-shore
Reservoir,
Construction of
sump cum
pump houses
at head water
works,
Providing
submersible
Slice 2:
Construction of
RG-filters .
(Est Rs.1.59
Cr.)
Slice 3:
Construction of
Balancing
Reservoir and
ELSRs. (Est
cost Rs.1.91
Cr.)
Revised
319
18
19
20
21
22
23
24
25
26
Completi
on of
contract
ual
obligatio
ns
27
Procurement
monitaring (Please
use the monitoring
indicators as
mentioned in the
consulting plan)
28
02-01-2011
17
11-01-2010
Appraisal
16
05-01-2010
1.09
15
ULB
50%
100%
Loan
work
work
Agt.
complete complete
With
APFIDC
12-01-2009
5.63
14
Issue of
contract
award
notice
11-01-2009
1
13
15-10-2009
ULB
with
support
from
MSU
12
30-09-2009
4 No. (as below)
11
____
NCB
10
09-01-2009
9
Beginnin Opening Submissi Approva Signing
g of Sale of Bids on of
l of BER of the
of Bid
BER to
contract
documen
Bank for
t
approval
08-01-2009
8
Publicati
on of
IFB in
Newspap
ers /
UNDB
30-7-2009
7
Approva
l of IFB
and Bid
documen
ts by the
World
Bank
____
6
Preparat
ion of
the Bid
Docume
nt
15/7/2009
5
____
4
07-01-2009
3
15/6/2009
I
2
Constuctionof Head
Water Works
Components at
Regulapadu Reservoir
source and providing
submersible pumpsets
and transformer etc.,
under Palasa Kasibugga
Water Supply
Improvments Scheme
Preparat Technica Initiate Preparat
ion of
l
preparat ion of
DPR
sanction ion of
IFB and
from
Specifica submissi
PHED
tion and on to the
Bid
Bank
Docume
nt
06-01-2009
1
Prior/Po Stage
st review
post Review
Annexure 21 : PROCUREMENT SCHEDULE FOR WORKS
Country: INDIA
Borrower: GOVERNMENT OF ANDHRA PRADESH
Project: A.P.U.R.M.S.P.
APMDP
Palasakasibugga Municipality
S.No/Pac
Description
Method of Schedule/ Slice
Procure Quantity Estimate Estimated Cost
kage No.
Procureme
ment
(Number d Cost
(Million USD)
nt
Authorit )
(Rs.
y
Crores)
local
currency
)
Slice 4:
Construction of
Storm water
drain from
Palasa
Kasibugga
surplus weir
alon g with
service road to
protect the
head works site
incuding
approach road
and Providing
protection
works around
head works
site, sercice
reservoirs and
roof covering
works to
existing open
wells. (Est
Actual
Revised
Slice 1:
Providing DI
Gravity main
from
Regulapadu
reserviour to
Proposed
filtration plant
for 14 Km
Length. (Est.
Rs.10.39 Cr.)
320
02-01-2011
11-01-2010
05-01-2010
12-01-2009
11-01-2009
15-10-2009
30-09-2009
____
09-01-2009
08-01-2009
30-7-2009
Appraisal
____
3.80
15/7/2009
19.65
15/7/2009
1
07-01-2009
3 No. (as below)
15/6/2009
NCB
06-01-2009
II
ULB
with
support
from
MSU
post Review
Actual
Providing Gravity Mains,
Pumping Main and
Distribution System
under Palasa Kasibugga
Water Supply
Improvments Scheme
Slice 2:
Providing
Pumping main
from sump cum
pump house to
Balancing
Reservoir and
Providing
DI/HDPE
gravity mains
from balancing
reservoir to
individual
service
reservoirs. (Est.
Rs.3.09 Cr.)
Slice 3:
Providing
distribution
system in
extension areas
and unserved
areas including
interconnection
s (Est. Rs.6..17
Cr.)
Revised
Actual
Date:
Version No:
Approved Date:
321
Annexure.II : PROCUREMENT SCHEDULE FOR WORKS
19
20
21
22
23
24
25
26
Slice 1:
Remodell
ing
Distributi
on
System in
Zone-I,
Zone-II
& ZoneIII areas
of the
town.
(Est. cost
Rs.8.62
Cr.)
Slice 2:
Providing
Raw
water
pumping
main,
sump
cum
pump
house,
vertical
turbine
motors
etc., from
Gundlaka
mma
River to
Treatmen
t works.
(Est cost
Rs.2.10
Cr.)
Revised
Actual
Version No:
322
Approved Date:
Complet Procurement monitaring.
ion of
contract
ual
obligatio
ns
27
28
1/2/2011
Appraisal
18
100%
work
complet
e
1/11/2010
2.07
17
50%
work
complet
e
1/5/2010
10.72
16
ULB
Loan
Agt.
With
APFIDC
1/12/2009
1
15
14
Issue of
contract
award
notice
1/11/2009
ULB with
support
from
MSU
13
15-10-2009
2 No. (as
below)
12
30-09-2009
NCB
11
____
10
1/9/2009
9
Beginnin Opening Submissi Approva Signing
g of Sale of Bids on of
l of BER of the
of Bid
BER to
contract
documen
Bank for
t
approval
1/8/2009
8
30-7-2009
7
Publicati
on of
IFB in
Newspa
pers /
UNDB
____
6
Approva
l of IFB
and Bid
documen
ts by the
World
Bank
15/7/2009
5
Preparat
ion of
the Bid
Docume
nt
____
4
1/7/2009
Remodelling of
Distribution
System and
providing Raw
Water pumping
main,
construction of
Pump House and
Supply of
Pumpsets under
Markapur Water
Supply
Improvments
3
Preparat Technic Initiate Preparat
ion of
al
preparat ion of
DPR
sanction ion of
IFB and
from
Specific submissi
PHED
ation
on to the
and Bid Bank
Docume
nt
15/6/2009
I
2
Proir/Post Stage
Review
1/6/2009
1
OF ANDHRA PRADESH
Markapur Municipality
Method Schedul Procure Quantity Estimate Estimated Cost
of
e/ Slice ment
(Number d Cost
(Million USD)
Procure
Authorit )
(Rs.
ment
y
Crores)
local
currency
)
Post Review
Country: INDIA
Borrower: GOVERNMENT
Project: A.P.U.R.M.S.P.
A.P.U.R.M.S.P.
S.No/Pa
Description
ckage
No.
Annexure.II : PROCUREMENT SCHEDULE FOR WORKS
15
16
17
23
24
25
26
30-09-2009
15-10-2009
1/11/2009
1/12/2009
1/5/2010
1/11/2010
1/2/2011
30-09-2009
15-10-2009
1/11/2009
1/12/2009
1/5/2010
1/11/2010
1/2/2011
28
____
27
____
22
1/9/2009
21
1/9/2009
20
1/8/2009
19
1/8/2009
18
30-7-2009
Appraisal
14
Complet Procurement
ion of
monitaring
contract
ual
obligatio
ns
30-7-2009
6.39
13
100%
work
complet
e
_____
33.05
12
50%
work
complet
e
15/7/2009
1
11
ULB
Loan
Agt.
With
APFIDC
_____
ULB with
support
from MSU
10
Issue of
contract
award
notice
15/7/2009
9
Beginnin Opening Submissi Approva Signing
g of Sale of Bids on of
l of BER of the
of Bid
BER to
contract
documen
Bank for
t
approval
_____
8
Publicati
on of
IFB in
Newspa
pers /
UNDB
_____
7
Approva
l of IFB
and Bid
documen
ts by the
World
Bank
1/7/2009
6
Preparat
ion of
the Bid
Docume
nt
1/7/2009
4 No. (as below)
5
15/6/2009
ICB
4
Preparat Technic Initiate Preparat
ion of
al
preparat ion of
DPR
sanction ion of
IFB and
from
Specific submissi
PHED
ation
on to the
and Bid Bank
Docume
nt
15/6/2009
3
Stage
1/6/2009
I
2
Providing Pump
sets,
Transformers,
Construction of
ELSRs & Water
Treatment Plant
under Guntur
Prior/
Post
Review
1/6/2009
1
Procurem Quantity Estimate Estimated Cost
ent
(Number) d Cost
(Million USD)
Authority
(Rs.
Crores)
local
currency)
Post Review
Country: INDIA
Borrower: GOVERNMENT OF ANDHRA PRADESH
Project: A.P.U.R.M.S.P.
A.P.U.R.M.S.P. Guntur Municipal Corporation
S.No/Pa
Description
Method Schedule/ Slice
ckage
of
No.
Procure
ment
Slice 1:
Providing
Summer RW pump sets,
Transformer at Undavalli ,
Transformer at Takkelapadu,
pump sets at various locations
at Takkelapadu, SJ Mudi, CW
pumping station, Transformer
at SJ Mudi, RW pump sets at
SJ Mudi, RW pump sets at
Mangalagiri, Raw Water pump
sets at Takkella padu. (Est
Rs.4.52 Cr.)
Slice 2:
Construction
of two tier ELSR at
Takkelalapadu HWW and
ELSRs in various localities of
the town.(Est Rs.21.94 Cr.)
Slice 3:
Construction of Rapid Gravity
Filtration Plant at SJ Mudi,
Installation of new pressure
gauges and flow meters in
existing installation such as
filter house, pup houses etc.
(Rs.4.20Cr.)
Revised
Slice 4:
Construction of CW sump at
HLR, sump at Nehru Nagar,
RW sump at Mangalagiri, RW
sump at Takkellapadu, pump
house at Takkellapadu. (Est
Rs.2.39Cr.)
Actual
Revised
II
ICB
3 No. (as below)
ULB
(With the
Support of
MSU)
1
70.70
13.66
Post Review
Actual
Providing
Pumping Mains
and Gravity
Mains under
Guntur Water
Appraisal
Slice 1:
Providing
Gravity Main from
Takkelapadu new balancing
tank to BR Stadium sump,
Providing Gravity main from
Vengalayapalem to HB colony
(Rs.7.98Cr.)
323
Slice 2:
Providing
Pumping Main from BR
Stadium to IPD colony sump,
Pumping main from HLR sump
to Sita Ram Nagar NGO
colony, Pumping main from
Nehru Nagar sump to HLR,
Pumping main from SJ Mudi
sump to HLR, Pumping main
from RW sump to WTP at SJ
Mudi, Pumping main from AT
Agraharam sump to
Venugopalnagar HB Colony,
(Rs.18.59Cr.)
Slice 3:
Providing
Pumping Main from Raw
Water Pumping station at
Mangalagiri to Takkellapadu
raw water pump house ( Est
Rs.44.13 Cr.)
Revised
Slice 1:
Renovation and Modernisation
of Distribution System by
laying trunk mains in various
zones (Rs.10.32Cr.)
Slice 2:
Providing
Distribution lines in illserved
and unserved areas
(Rs.28.24Cr.)
Revised
Actual
Date:
Version No:
No:
324
Approved Date:
1/3/2011
1/12/2010
1/6/2010
1/2/2010
1/1/2010
30/11/2009
30/10/2009
15/10/2009
25-9-2009
10/8/2009
Appraisal
7/8/2009
7.45
30/7/2009
38.56
15/7/2009
1
15/7/2009
ULB
(With the
Support of
MSU)
1/7/2009
2 No. (as below)
15/6/2009
ICB
1/6/2009
III
Prior Review
Actual
Renovation and
Modernisation
of Distribution
system and
Providing new
Distribution
pipeline System
in illserved and
unserved areas
under Guntur
Water Supply
Improvements
Scheme
Annexure.21 : PROCUREMENT SCHEDULE FOR WORKS
18
19
20
21
22
23
24
25
26
Complet Procurement
ion of
monitaring.
contract
ual
obligatio
ns
27
28
1/2/2011
17
100%
work
complet
e
1/11/2010
16
50%
work
complet
e
1/5/2010
15
1/12/2009
Appraisal
14
1/11/2009
2.97
13
15-10-2009
15.36
12
30-09-2009
1
11
Submissi Approva Signing Issue of ULB
on of
l of BER of the
contract Loan
BER to
contract award Agt.
Bank for
notice
With
approval
APFIDC
____
ULB
(With the
Support
of MSU)
10
1/9/2009
9
Beginnin Opening
g of Sale of Bids
of Bid
documen
t
1/8/2009
8
30-7-2009
7
Approva Publicati
l of IFB on of
and Bid IFB in
documen Newspa
ts by the pers /
World UNDB
Bank
_____
-
6
Preparatio
n of the
Bid
Document
15/7/2009
NCB
5
_____
I
4
1/7/2009
3
15/6/2009
2
Construction of
ELSRs &
GLSRs, pump
houses including
supplyand
erection of
pumpsets under
comprehesive
water supply
scheme for
Malkajgiri in
GHMC
area.Concerned
to Yr. 2026
Preparat Technic Initiate
Preparat
ion of
al
preparation ion of
DPR
sanction of
IFB and
from
Specificatio submissi
PHED n and Bid on to the
Document Bank
1/6/2009
1
Procure Quantity Estimate Estimated Cost Prior/Po Stage
ment
(Number) d Cost
(Million USD) st
Authorit
(Rs.
review
y
Crores)
local
currency)
Post Review
Country: INDIA
Borrower: GOVERNMENT OF ANDHRA PRADESH
Project: A.P.U.R.M.S.P.
A.P.U.R.M.S.P. Malkajgiri (GHMC)
S.No/Pa
Description
Method of Schedule/ Slice
ckage
Procurem
No.
ent
Revised
15/7/2009
15/7/2009
30/7/2009
7/8/2009
10/8/2009
25-9-2009
15/10/2009
30/10/2009
30/11/2009
1/1/2010
1/2/2010
1/6/2010
1/12/2010
1/3/2011
15/7/2009
30/7/2009
7/8/2009
10/8/2009
25-9-2009
15/10/2009
30/10/2009
30/11/2009
1/1/2010
1/2/2010
1/6/2010
1/12/2010
1/3/2011
Appraisal
15/7/2009
8.09
1/7/2009
41.88
1/7/2009
1
15/6/2009
ULB
(With the
Support
of MSU)
15/6/2009
-
1/6/2009
ICB
1/6/2009
II
Prior Review
Actual
Providing Inlet
mains & Outlet
mains for the
Water Supply
requirements for
the Year 2026
under
comprehesive
water supply
scheme for
Malkajgiri in
GHMC area.
Revised
III
ICB
-
ULB
(With the
Support
of MSU)
1
115.34
22.29
Prior Review
Actual
Providing
Distribution
System to
Malkajgiri
hydraulic zone.
Under Malkajgiri
comp.water
supply
improvement
scheme.
Appraisal
325
Slice 1: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for
Vaypayee nagar ELSR zone
in Malkajgiri. (Est. Rs.
12.91 Cr)
Slice 2: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for
Vaypayee nagar GLSR
zone in Malkajgiri. (Est. Rs.
23.01 Cr)
Slice 3: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for
Chanakyapuri zone I in
Malkajgiri. (Est. Rs. 7.42
Cr)
Slice 4: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for Defence
colony zone in Malkajgiri.
(Est. Rs. 11.14 Cr)
Slice 5: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for
Chanakyapuri zone II in
Malkajgiri. (Est. Rs. 4.85
Cr)
326
Slice 6: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for Goutham
nagar GLSR zone in
Malkajgiri. (Est. Rs. 23.1
Cr)
Slice 7: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for
Sainikpuri zone in
Malkajgiri. (Est. Rs. 15.07
Cr)
Slice 8: Manufacture,
supplying, lowering, laying,
jointing, testing and
commissioning of
500,450,400 mm, 350mm,
300mm, 250mm, 200mm,
150mm & 100 mm
MS/BWSC/DI mains with
cement mortar factory lining
and outcoating for
Sainathpuram zone in
Malkajgiri. (Est. Rs. 17.84
Cr)
Revised
Actual
Version No:
No:
Date:
327
Approved Date:
Annexure.21 : PROCUREMENT SCHEDULE FOR WORKS
10.47
Appraisal
18
19
20
21
22
23
24
25
26
27
1/3/2011
54.20
17
1/12/2010
1
16
1/6/2010
ULB
(With the
Support
of MSU)
15
1/2/2010
3 No. (as below)
14
1/1/2010
ICB
13
30/11/2009
12
30/10/2009
11
15/10/2009
10
Complet Procurement
ion of
monitaring.
contract
ual
obligatio
ns
25-9-2009
9
100%
work
complet
e
10/8/2009
8
50%
work
complet
e
7/8/2009
7
Submissi Approva Signing Issue of ULB
on of
l of BER of the
contract Loan
BER to
contract award Agt.
Bank for
notice With
approval
APFIDC
30/7/2009
6
Beginnin Opening
g of Sale of Bids
of Bid
documen
t
15/7/2009
5
Approva Publicati
l of IFB on of
and Bid IFB in
documen Newspa
ts by the pers /
World UNDB
Bank
15/7/2009
4
Preparat
ion of
the Bid
Docume
nt
1/7/2009
3
15/6/2009
I
2
Providing pumping
main, Gravity mains
and Distribution
System in the town
under Armoor Water
Supply Improvments
Scheme
Preparat Technic Initiate Preparat
ion of
al
preparat ion of
DPR
sanction ion of
IFB and
from
Specific submissi
PHED ation
on to the
and Bid Bank
Docume
nt
1/6/2009
1
Prior/Post Stage
Review
Prior Review
Country: INDIA
Borrower: GOVERNMENT OF ANDHRA PRADESH
Project: A.P.U.R.M.S.P.
A.P.U.R.M.S.P.
Armoor Municipality(Grade III)
S.No/Pa
Description
Method Schedule/ Slice
Procure Quantity Estimate Estimated Cost
ckage
of
ment
(Number d Cost (Million USD)
No.
Procure
Authorit )
(Rs.
ment
y
Crores)
local
currency
)
Slice 1: Providing
punmping main from
existitng SRSP canal
to treatment plant at
Narendhra Enclave
(Est. Cost Rs.40.21 Cr)
Slice 2: Providing
Gravity Mains (i)
from junction to
overhead tank (ii)
T.P. to hill (iii)
Church to hill (iv) Jn.
Point at open market
land to over head
tank (v) Babu
Jagjeevanram statue
to over head tank at
hill (vi) Jn. to open
market area (vii) Jn.
at N.S.canal to over
head tank (viii) Jn. at
overhead tank at
power bore (ix) Jn.
to overhead tank
(Est. Rs.2.84 Cr.)
328
28
Slice 3: Providing
Distribution system
in five zones of the
town. (Est. Cost Rs.11.15 Cr)
1
2.55
Revised
Actual
Date:
Version No:
329
Approved Date:
1/3/2011
1/12/2010
1/6/2010
1/2/2010
1/1/2010
25-9-2009
10/8/2009
7/8/2009
30/7/2009
15/7/2009
15/7/2009
1/7/2009
15/6/2009
1/6/2009
Appraisal
30/11/2009
-
0.49
30/10/2009
NCB
ULB
(With the
Support
of MSU)
15/10/2009
II
Construction of Water
Treatment Plant,
Providing CI D/F pipe
connectins including
connecting main,
Construction of clear
water sump,
construction of
generator rooms,
construction of
watchman quarters,
Providing Generators
at all pumping stations
and Electric SubStation near intake
well.
Prior Review
Revised
Actual
18
19
20
21
22
23
27
Revised
Actual
Date:
Version No:
330
Approved Date:
25
26
Completio Procurement
n of
monitering
contractua
l
obligation
s
27
28
1/2/2011
17
100%
work
complet
e
1/11/2010
16
50%
work
complet
e
1/5/2010
15
1/12/2009
Appraisal
14
1/11/2009
3.86
13
15-10-2009
19.98
12
30-09-2009
1
11
Submissi Approva Signing Issue of ULB
on of
l of BER of the
contract Loan
BER to
contract award Agt.
Bank for
notice
With
approval
APFIDC
____
ULB with
support
from
MSU
10
1/9/2009
9
Beginnin Opening
g of Sale of Bids
of Bid
documen
t
1/8/2009
8
30-7-2009
7
Approva Publicati
l of IFB on of
and Bid IFB in
documen Newspa
ts by the pers /
World UNDB
Bank
_____
-
6
15/7/2009
NCB
5
Preparat
ion of
the Bid
Docume
nt
_____
I
4
1/7/2009
3
15/6/2009
2
Laying of distrubution
pipe lines in unserved
areas of Kurnool
Municipal Corporation
Preparat Technic Initiate Preparat
ion of
al
preparat ion of
DPR
sanction ion of
IFB and
from
Specific submissi
PHED ation
on to the
and Bid Bank
Docume
nt
1/6/2009
1
Estimate Prior/Post Stage
d Cost Review
(Million
USD)
Post Review
Annexure.21 : PROCUREMENT SCHEDULE FOR WORKS
Country: INDIA
Borrower: GOVERNMENT OF ANDHRA PRADESH
Project: A.P.U.R.M.S.P.
A.P.U.R.M.S.P.
Kurnool Municipal Corpoation
S.No/Pa
Description
Method Schedul Procure Quantity Estimate
ckage
of
e/ Slice ment
(Number d Cost
No.
Procure
Authorit )
(Rs.
ment
y
Crores)
local
currency
)
ANNEXURE-22
Correspondences of importance with regard to the Project Costs
and Retroactive Funding
331
The World Bank
1818 H Street N.W.
(202) 477-1234
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
Washington, D.C. 20433
U.S.A.
Cable Address: INTBAFRAD
Cable Address: INDEVAS
March 16,2009
Mr. Ashok Chawla
Secretary
Department of Economics Affairs (DEA)
130 North Block
New Delhi 110 001
Dear Mr. Chawla:
India: Join DEA/Bank Portfolio Performance Review:
Urban/ Urban Water Sector (February 18, 2009)
Summary of Agreed Actions between DEA, the Project Authorities and the Bank
First of all, we would like to thank DEA and, through DEA, all the representatives from the state and
central governments and the project implementing agencies for their participation and excellent
contributions to the above review meeting. Please find attached a copy of our presentation along
with a summary of the issues and agreed actions for each project for information and follow up on
the part of the project authorities.
I would like to take this opportunity to report on the outcome of the urban sector portfolio review.
During the meeting, we reviewed only three projects, namely, Karnataka Municipal Reforms, Tamil
Nadu Urban, and Karnataka Urban Water (Emergency Tsunami will be taken up later). The Karnataka
Urban Water Improvement project continues to break new ground, with the only issue there being
the delay in complying with the legal covenant related to establishment of a State Water Council and
setting the water tariff. This was one of the grounds for extending the project, which has achieved its
physical and financial targets otherwise. We are working with our counterpart in Karnataka on this
long overdue legal covenant and hope to reach some agreement on the way forward. However, our
prime concern is over the other two projects. The Tamil Nadu Urban project is in problem status for
sometime due to the continued slow implementation of the urban transport component which
constitutes 40% of the loan amount and which was dovetailed to the project at the last minute.
Subsequent to the portfolio review meeting, we have received a formal proposal from the
Government of Tamil Nadu through DEA for restructuring the project. We are currently reviewing the
proposal and will be getting back to DEA and the Government of Tamil Nadu on this shortly. The
Karnataka Municipal Reforms project was downgraded due, among other things, to weak interagency coordination, procurement bottlenecks including lack of competition, delays in land
acquisition, and serious internal control weaknesses. Overall, the project is progressing very slowly,
reflected in very slow disbursement (18% after 3 years). As you will notice, these are project-specific
issues which are well within the capacity of the project authorities to resolve. We are therefore
hoping that the concerns highlighted above will be addressed on priority in order that the ratings can
he upgraded and the projects are able to achieve the desired outcomes. We will also take the
opportunity of the upcoming portfolio review meetings in Karnataka and Tamil Nadu (dates to be
determined) to bring these issues to the attention of the state governments and seek swift and
decisive actions to take implementation forward.
332
We also briefly reviewed the status of preparation of the Andhra Pradesh Urban project. There were
discussions regarding the modalities of possible Bank funding under retroactive financing beyond
one year as per Bank policies. Subsequent to the meeting, we have reconsidered this matter
internally and suggest to either go ahead with the option of increasing the loan size (possibly
combined with a higher share of Bank financing) now or make a provision for additional financing if
so desired during implementation (subject to due approval process in the Bank), but with retroactive
financing limited up to one year before project signing. We have since had a state portfolio review
meeting in Andhra Pradesh on March 12-13, 2009, where we shared our views above with the
Government of Andhra Pradesh.
Going forward, some of the challenges that face this growing sector are strengthening institutions,
increasing competition, addressing the supply side constraints, and improving project readiness. We
hope to work with you and our counterparts in the urban sector to address these issues and ensure
the long-term sustainability of investments in this sector.
With regards,
Sincerely yours,
Roberto Zagha
Country Director, India
Enclosure (s)
cc:
Dr. Alok Sheel, Joint Secretary, DEA
Mr. D.K. Singh, Director, DEA
M. Ramachandran, Secretary, Ministry of Urban Development, New Delhi
Ms. Kiran Dhingra, Secretary, Ministry of Housing and Urban Poverty
Alleviation, New Delhi
Ms. Pushpa Subramanyam, Secretary, MAUD, GOAP, Hyderabad
Mr. I.Y.R. Krishna Rao, Principal Secretary, Finance Department, GOAP, Hyderabad
Mrs. Vasudha Misra, Principal Secretary, Finance Department, GOAP, Hyderabad
Mr: Sunil Sharma, Commissioner and Director, Municipal Administration, Hyderabad
Mr. D. Thangaraj, Principal Secretary, Urban Development Department, GoK
Mr. Jawaid Akhtar, Secretary, Urban Development Department, GoK
Mr. Arvind Srivastava, Managing Director, Karnataka Urban Infrastructure Development &
Finance Corporation (KUIDFC)
Mr. K. H. Gopala Krishne Gowda, Managing Director, Karnataka Urban Water
Supply and Drainage Board
Mr. Niranjan Mardi, Secretary, Municipal Administration and Water Supply
Mr. Phanindra Reddy, MD & Chief Executive Officer, Tamil Nadu Urban Infrastructure Finance
Ltd
333
Joint DEA/World Bank Sector Portfolio Performance Review
Urban Sector
February 18,2009
Summary of Agreed Actions
Project Name
1
2
Third Tamil Nadu Urban
Development Project
(TNUDP-III)
Karnataka Municipal
Reform Project
Issues
Agreed Actions
 Restructuring of Chennai Urban Transport Sub-component:
Agreements/ Discussions have been held on the revised
scope as well as loan reallocations, formal proposal is yet to
be received from GoTN via DEA;\
 Subsequent to the meeting, a formal
restructuring proposal has been received.
 Slow disbursement (above 50%of projections): Caused due
to delays in completing procurement as per the (revised)
procurement plan and in execution of on-going contracts
under the ‘Line of Credit’ sub-component;
 GoTN /implementing agencies to follow-up-on
implementation of remedial measures
identified and agreed to earlier, including for
on- going contract.
 Procurement (e.g. Delays in contract awards, Deviation from
agreed procurement arrangements for post-review
contracts).
 TNUIFSL to closely monitor other
implementing agencies to expedite the award
of remaining contracts by September 30,
2009.
 GoK /KUIDFC to:
 Slow implementation progress leading to also slow
disbursement performance. This relates to mainly two
components:
335



Municipal Investment component: Land acquisition
related issues, delays in completing sub-project
preparation and not enough capacity at KUIDFC to
follow up;
Greater Bangalore
Sewerage component: Delay was mainly caused due
to clearance of e-procurement and bidding docs.
 Procurement: Feedback on post procurement review is
awaited as well as contracts related information.
 In addition, in response to complaint, a technical review of
BBMP roads component has been conducted, and a draft
report is in the process of being sent out.
 Weak monitoring and non availability of data on
procurement indicators.
 Particular to BWSSB, delays have been partially due to:




Accelerate implementation of this
component through increased capacity
for technical / operational follow-up of
works
and
to
coordinate
implementation of other components
backed up by strong M&E and project
management systems.

For Sewerage component, address
concerns on poor bid response and
ensure enhanced competition and
comply with agreed procurement plan.
 KUIDFC to respond to this, at the earliest.
The draft technical review report is being
finalized within Bank and would be sent to
GoK for comments shortly.
 GoK / KUIDFC to organize contractors’
conference on February 28, 2009( This has
since been done as scheduled).
Requests for dilution on qualification criteria not
backed by facts (not approved by GoK Empowered
Committee)
Non compliance of Bank prior review requirements
including changes in procurement
methods/packaging without Bank no-objection
Unable to carry out agreed action plan in a timely
manner for improving competition leading to poor
bid response and rebidding.
Financial management
 Poor internal controls leading to double claims / excess
claims; lack of coordination amongst three implementing
336
 KUIDFC to provide full time professional FM
staff for the project by march 31, 2009
 KUIDFC to ensure that the FMS is
agencies.
 Lack of timely and satisfactory Financial Monitoring Reports
Poor implementation of agreed operation manual
 Issue in audit reports (reconciliation statements not
attached): Auditor (Project audit) selection process needs
strengthening
3
Karnataka Urban Water
Sector Improvement
Project (KUWASIP)
4
AP Urban Reform and
Municipal Service
Project (APUERMSP)
 Pending decisions on Sector Development Component :
(I)approval of State Water supply Tariff framework and
(ii)presentation for approval to appropriate level of establishment of
State Water Council
 Delays in taking actions regarding final phase of
implementation required, including extension of operator
contract and movement to volumetric tariffs in
demonstration areas of two cities.
 Procurement: Feedback on post-procurement review is
awaited.
 FM: lack of timely and reconciled Financial Monitoring
Reports:
 Delay in submission of audit reports and the quality of audit
reports (which are not reconciled to claims)
 This project was originally negotiated in 2005 but not
presented to the Board, pending a Board condition (repeal of
Urban land Ceiling Act) which was met in March 2008. The
project is being updated. Appraisal and negotiations are
planned in February –Mar 2009 and Board presentation in
April 2009.
 A few Financial Management (FM) related actions by GoAP
are pending.
 During the portfolio review meeting GoAP requested that
Bank considered retroactive financing beyond one year from
337
strengthened, operation manual is fully
implemented to strengthen the internal
controls and there is adequate oversight by
management.
 Internal auditor (for the project) to be
appointed, on agreed terms of reference,
to strengthen internal controls by
September 30, 2009
 KUIDFC to agree on a selection process for
external auditor.
 GoK to indicated dates for compliance with
the above two legal covenants, along with
decision and action plan for subsequent
implementation.
 GoK /KUIDFC to extend operator’s contract
up to December 2009 and reach final
agreement with 2 ULBs to begin
implementation of volumetric tariffs.
 KUIDFC to respond at the earliest.
 KUIDFC to ensure FM staffing and the
oversight by the senior management on
financial issues.
 Discussions have been held on the pending
FM issues and mow an early response from
GoAP is expected.
 Subsequent to the meeting, Bank has
reconsidered the issue of retroactive
financing internally and would prefer to go
ahead with option of increasing Bank loan
size (possibly combined with a higher share
of Bank financing), but with retroactive
financing limited to one year.
the date of last negotiations help for the project in 2005. An
alternative option of increasing the Bank’s share in the
proposed project / loan size was also discussion in this
context and it was agreed that Bank would revisit this issue
internally.
338
GOVERNMENT OF ANDHRA PRADESH
FINANCE (PMU) DEPARTMENT
U.O.Note No. 797/Fin.PMU/08
Date:17.01.09
Sub: Externally Aided Projects – Proposal for revision of Project Cost in terms of local
currency on a later date – Instructions – Issued – Reg.
***
It is observed that a number of proposals are being received from the Project
Implementing Authorities of Externally Aided Projects for altering the Project Cost in terms of
local currency on the ground that the Indian Rupee is depreciated, when ever there is
depreciation in India Currency Value.
The debt sustainability is worked out in terms of Indian Currency only for every
Externally Aided Project proposal, and that the cost of every Externally Aided Project will be
arrived at in Indian currency with reference to RBI’s foreign Exchange Rate as on the date of
obtaining Debt Sustainability certificate from Department of Expenditure, Ministry of Finance,
Govt. of India, New Delhi.
As such revision of Project Cost is not permissible as it will adversely affect the Debt
Sustainability of the State which is already fixed in rupee terms. Therefore, project
Implementing Authorities are requested to avoid sending such proposals for revision of
Project Cost on the ground of depreciation of Rupee.
I.Y.R. Krishna Rao
Principal Finance Secretary to Govt.
To
All the Project Implementing Authorities
All the Special Chief Secretaries/Prinicipal Secretaries/Secretaries to Govt. A.P.
Secretariat, Hyderabad
C.C. to:
The P.S. to the Chief Secretary
//FORWARDED BY ORDER\\
Deputy Financial Advisor
339
F.No: 4(8)/FRU/2005
Govt of India
Ministry of Finance
Department of Expenditure
(Fiscal Reforms Unit)
5th Floor,Block-11
CGO-Complex
Lodhi Road,New Delhi.
Dated: 2nd March,2009.
OFFICE MEMORANDUM
Subject: Andhra Pradesh Urban Reforms and Municipal Services Project (APURMSP)clearance from debt sustainability angle
The undersigned is directed to refer to DEA’s OM No: 14/10/99-FB-VI dated 19th
December,2008 on the subject mentioned above and to convey that Govt of Andhra Pradesh
does not fall under the category of “debt stressed State”. Hence, this Department has no
objection to support the aforesaid project for World Bank assistance subject to the following
conditions that:

the clearances from Planning Commission and Ministry of Urban Development is
obtained by the State Government.

the financing of the project will remain within the respective annual borrowing
limits fixed for the State.

Project proposal should be included in the annual paln/XIth plan
This issue with the approval of JS (PFI)
(Nalini Pathak)
Asst. Director
Tel.24368543
Shri Rohit Mathur
Under Secretary (FB-VI)
Dept of Economic Affairs,
North Block, New Delhi
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Annexure-23
State Institute of Urban Management,
Andhra Pradesh
Memorandum of Association
341
State Institute of Urban Management,
Andhra Pradesh
Memorandum of Association
Department of Municipal Administration and Urban Development
Government of Andhra Pradesh
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Memorandum of Association
The State Institute of Urban Management, Andhra Pradesh shall be the Andhra Pradesh Urban
Academy as envisaged in the first component of the World Bank funded “Andhra Pradesh Municipal
Development Project” (APMDP). With an intention to establish an exclusive agency for training and
research for Urban affairs in Andhra Pradesh, the institute has been conceptualized to be positioned
as one of the premier institutes for training, research, policy support and information dissemination
in the field of urban affairs. The State Institute of Urban Management, Andhra Pradesh,(SIUMAP)
shall be constituted as a registered society under the Andhra Pradesh Societies Registration Act,
2001.
1) Preamble:
The State Institute of Urban Management, Andhra Pradesh (SIUMAP) shall be an apex institute of
Training and Research in the area of urban affairs. It shall evolve into a centre of excellence in urban
affairs management to provide necessary support to the Municipal Administration and Urban
Development (MA&UD) department and the Urban Local bodies in the state of Andhra Pradesh. Over
a period of time, it is envisaged that the institute shall develop capacities of thought leadership in
various fields of urban affairs like i) Policy formulation, ii) Development of program initiatives and
implementation strategies for Urban Development, iii) Manpower planning and Human Resource
Development, iv) Financial effectiveness and tax administration efficiency, v) Improved service
delivery to citizens and vi) Research and dissemination of information through quality publications.
The institute shall focus on three functional areas namely i) Training and Human Resource
Development, ii) Research in Urban affairs and iii) Policy Support for state and local governments. By
nature of its establishment, the institute shall be an autonomous body registered under the Andhra
Pradesh State Societies Registration Act, 2001.
2) Definitions:
In these articles, unless the context otherwise requires: a) “Area of operation” means areas where the Institute will operate or carry out its activities
b) “Executive Committee” means the Executive Committee of the State Institute of Urban
Management constituted under Article 7.
c) “Financial Year” means the year commencing from 1st April and Ending 31st March of the
following year
d) “Government” means Government of Andhra Pradesh
e) “Governing Body” means the Governing body of the SIUMAP constituted under Article 3.
f) Institute means “State Institute of Urban Management”
g) “Prescribed Rules” means guidelines/rules issued by the Executive Committee and approved
by the Governing Body from time to time.
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h) The State Institute of Urban Management, Andhra Pradesh, shall be referred as the following
acronym namely “SIUMAP” or alternately as State Institute of Urban Management.
3) Name of the Society:
The Society is named as State Institute of Urban Management, Andhra Pradesh
4) Registered Office of the Society:
The Registered office of the Society shall be situated at the City manager’s training centre, Road
No:12, Jubilee Hills, Hyderabad in the State of Andhra Pradesh. The Institute shall establish its
own Regional or District level Centres in the State as per the training requirement upon approval
of the Governing council. A new office building shall be developed with support of APMDP as per
the project guidelines.
5) Aims of SIUMAP society:
The aims of the State Institute of Urban Management, Andhra Pradesh and the proposed
objectives bring a focus to the functions of SIUMAP which shall be based on three foundations
namely, i) Training and Human Resource Development, ii) Research and iii) Consultancy and
policy support. The functional foundations of SIUMAP are depicted in the figure below.
Figure-1: SIUMAP- Key Foundations
The aims of the SIUMAP are as follows.
i) The State Institute of Urban Management aims to be an organization of excellence for
Capacity building of Municipal bodies in the state. The mandate emanating from this
aim of the institute shall mainly encompass training and conducting of human
resource development initiatives for the staff of Municipal bodies and the elected
representatives of the Municipal councils. The institute shall therefore function as
apex training and Human resource development organization for the Department of
Municipal Administration and Urban Development, Government of Andhra Pradesh.
The institute shall conduct training courses and award certifications primarily to the
functionaries of Urban Local Bodies. The institute may also conduct certification
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courses and distance education programs for general applicants with interests in
urban affairs.
ii) Along with Human Resource Development, the institute shall also conduct research
into policy issues relating to urbanization, urban development, urban local body
management, urban poverty alleviation and urban governance. Through conduct of
national and international conferences, seminars and symposia, the institute shall
bring together experts and diverse stakeholders working in the field of Urban affairs to
synergize policy for urban reform and resolution of urban developmental and
management issues. The State Institute of Urban Management shall conduct original
research in various thematic areas of urban affairs and shall produce quality
publications and thought leadership articles. SIUMAP shall take up both internal and
externally funded research projects and shall network with national and international
institutes of repute to conduct collaborative research. The research platform of the
SIUMAP shall also be a foundation for the conceptualization, design and development
of training curricula and certification programs.
iii) With strong academic and research foundations laid down by the objectives of the
society, the State Institute of Urban Management, Andhra Pradesh aims to evolve into
a thought leadership organization and a think tank for provision of policy support on
various issues relating to urban management. The institute shall empanel experienced
domain experts, consultants, academic and technical professionals and organizations
in furtherance of the objectives of the society.
iv) To support the above key mandated functional areas SIUMAP shall house the State
Library for Urban Management and shall be an Information clearing house and
repository. SIUMAP shall specialize in the production of a wide range of
communication and training material in Telugu and English such as exercises, case
studies, readers, films, manuals, journals, resource books, self-learning material,
success stories, newsletters, brochures and pamphlets. These are an integral part of
SIUMAP's research, training and Policy support activities. The publications of SIUMAP
are therefore not produced in isolation but are inevitably linked to the objectives of
the training and the goals of the larger research and policy support programmes. The
training curricula and materials shall draw heavily on the Institute's rich research and
strong domain expertise. SIUMAP aims to be a self-sustainable research and academic
institution and policy support think tank for Urban affairs in future and shall focus its
activities to that end.
6) Objectives of the SIUMAP society:
The objectives of the SIUMAP, AP society are as follows,
1. To act as an autonomous, training, research and policy support organization to undertake,
promote and coordinate studies on urbanization, urban reforms, urban management and
urban development;
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2. To act as a centre for advanced study of urban problems and challenges in Andhra Pradesh
and to provide and promote the necessary training and human resource development
facilities to various stakeholders;
3. To evaluate the social, administrative, financial and other aspects of the implementation of
urban development plans and programmes in the state;
4. To design and conduct state of the art training programs and courses on various areas
relating to Urban management in order to build capacities of the municipal functionaries
including elected representatives.
5. To mobilize available expertise in the field of urban affairs and to offer and co-ordinate
technical and consultancy services;
6. To provide professional certifications in urban management and governance to the various
stakeholders.
7. To conduct research and engage in thought leadership to usher innovative strategies for
urban reform and development and act as a think tank for Urban policy in the state of Andhra
Pradesh.
8. To render professional assistance and consultancies in the field of Urban management with a
focus on urban reform, poverty alleviation and infrastructure development.
9. To carry on operational and policy-oriented research, to evolve ideas and concepts
appropriate to the local, state and national environment and to formulate policy
alternatives.
10. To study and review policies and programs and prepare developmental plans with respect to
balancing Infrastructure development with the growing needs of the urban population.
11. To research and study national and international best practices to be replicated for
improvement of performance of Urban local bodies in Andhra Pradesh.
12. To act as a clearing house of information, and to operate a Library and Knowledge
repository centre to disseminate information on urban affairs;
13. To constitute or cause to be constituted or give affiliation to regional, state or local centers
to promote the purpose of the institute;
14. To organize and sponsor training courses, workshops and seminars in various fields;
15. To promote modern management science as a major instrument for development of
economic and social activities of the Urban local bodies and other organizations of the State
Government;
16. To develop managerial skills, organizational capability, leadership and decision-making ability
for Urban development planning and efficiency in implementation of policies, programmes
and projects in Urban Areas.
17. To identify appropriate technologies for various functional aspects of Urban management and
facilitate transfer of such technologies to Urban local bodies.
18. To pursue independent inter-disciplinary studies and action research with special focus on
citizen service delivery systems and administrative process improvement.
19. To act as an Information clearing house and to house the State repository and library for
urban management studies.
20. To engage in publishing of original research articles, journals and other publications in
furtherance of the objectives of the society.
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21. To provide handholding support to urban local bodies, for strengthening administrative and
financial processes on a pilot basis.
22. To collaborate and network with other organizations involved in research and training in
urban affairs and to foster community based organizations in order to encourage citizen’s
participation in local governance.
23. To offer fellowships, scholarships, prizes, stipends in the area of urban management of
governance in furtherance to the objectives of the society.
24. To undertake and facilitate publication and distribution of books, research papers,
monographs, a journal and other communication material pertaining to urban affairs.
7) Membership and General Body of the SIUMAP society:
The SIUMAP society shall primarily be established through the Government funding. The founding
members of the society shall be the members of the Empowered committee of the Andhra Pradesh
Municipal Development Project. The society shall therefore have Government members as the
members of the General body during its inception. The chairperson of the Empowered committee of
APMDP shall be the President of the SIUMAP, Society. The SIUMAP society shall have a Governing
council headed by the President of the SIUMAP society. The President of the society shall nominate
two Vice Presidents who shall be Principal Secretaries to the Government of Andhra Pradesh, for
Finance and MA&UD departments respectively.
The Government shall appoint a senior officer of Indian Administrative Service as Director General of
SIUMAP who shall head the SIUMAP as its chief executive authority. The Director General of the
society shall be the Member Convener of the Governing council of the SIUMAP society.
The society shall have a memorandum of association and the following membership structure.
a. Founding members: All the Members of the Empowered Committee of the Andhra Pradesh
Municipal Development Project shall be the Founder members of SIUMAP. The following are
the founder members of the SIUMAP society.
Member
Designation
Chief Secretary
Principal Secretary (Finance)
Principal Secretary(Revenue),
Principal Secretary,(Transport),
Principal Secretary(EFST)
Principal Secretary (Irrigation)
Principal Secretary (IT),
Principal Secretary (Rural Development),
Commissioner and Director , Municipal Administration
Managing Director, APUFIDC / Secretary APUIF
Principal Secretary (MAUD),
Secretary (MAUD),
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member-Convener
b. Nominated Members: The General body shall also have six nominated members from the
Government of India, Research and Academic institutions, and two Elected Chairperson
representatives from Urban Local bodies. Two nominated members each shall be selected
from, a) a Pool of Senior Government officials in working in the area of urban affairs and
Finance from Government of India identified by the Governing council, ii) Pool of
Chairpersons of Urban Local bodies identified by the Governing council, iii) Pool of eminent
academicians and researchers working in Management and urban affairs identified as by the
Governing council. The following are the nominated members to the General body of
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SIUMAP, a) One Representative of Ministry of Urban affairs, Government of India, b) One
Representative of Finance Department, Government of India, c) Two elected Chairpersons of
an ULB in the state of Andhra Pradesh nominated by the C&DMA and d) Two eminent
Researchers and/or academicians with extensive experience in Urban affairs and
management as nominated by the Secretary MA&UD department.
c. Patron Members: The Society shall also qualify and admit members from diverse
stakeholders in the area of Urban affairs for a membership subscription fee. These patron
members are basically various stakeholders in Urban affairs of Andhra Pradesh both from
Government and otherwise. The members are admitted to the fold of SIUMAP society
primarily to bring together diverse opinion and voice of various stakeholders and to make
them part of Urban development policy formulation and also to contribute to various
activities of the SIUMAP. The patron members can belong to different categories namely
Individuals, Institutions, Corporate bodies National and international donor organizations,
State governments, Central government departments and Urban local bodies, who shall be
represented by their authorized representatives in the General body of SIUMAP.
The Governing council is the executive body of the SIUMAP society and shall lay down guidelines on
rules of membership to admit patron members into the society for an annual or a life time
subscription fee. All the members of the society namely the Founding members, Ex-officio
nominated members and the Admitted patron members shall form the General body of the Society.
The initial terms and conditions applicable and the manner of receiving applications for admission of
different categories of members shall be determined by a committee consisting of the President and
Vice-Presidents of the Governing council of SIUMAP society and two or three founding members of
the society. Subsequently after the constitution of the complete Governing council, the membership
rules can be further amended as per the SIUMAP’s requirements.
The patron members are non-executive members of the Society. Patron members shall get involved
in all developmental activities of SIUMAP to strengthen the capacity enhancement initiatives
undertaken by SIUMAP in furtherance of its objectives. Some of the activities identified for
involvement of patron members are resource mobilization for training and research, sponsorship of
research and training programs, mobilizing participation in urban development schemes, sponsoring
fellowships and scholarships, etc.
The Governing council of the General body of SIUMAP shall lay down the principles and guidelines for
admission of patron members and their involvement in the affairs of the SIUMAP. The Annual
membership of SIUMAP society is Rs 100000/- and Life time membership is Rs 500000/- for all
Institutional members. The institutional members can nominate five representatives from each
institution to General body meeting or any other meeting held by SIUMAP society. The Annual
membership fee for Individuals is Rs 20000/- and life time membership for individuals is Rs 100000/-.
All the Patron members shall receive the Annual report and other publications of the SIUMAP.
i) Roll of Members: The Institute shall keep a Roll of Members giving their occupations and
addresses and every member shall sign the same. If a member of the Institute changes his
address, he/she shall notify his new address to be entered in the Roll of Members. If the member
fails to notify his address, the address given in the Roll of Members shall be deemed to be his
address.
a. The Institute shall maintain a Roll of Members, who have been admitted and paid
their subscription, stating their full address as given in the application for
membership.
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b. Whenever any member changes his address, he shall notify his new address to the
executive authority of the Institute, but if he fails to notify the change, his address, as
recorded in the RolI of Members, shall be deemed to be his address.
c. The rights of Patron Members and Corporate Members shall be exercised by
respective representatives, whose names are notified in writing to executive authority
of the Institute (Director General of SIUMAP) from time to time.
d. When a person is a Member of the Institute or its Governing Council by virtue of an
office held by him, his membership shall terminate when he ceases to hold that office
and the vacancy so caused shall be filled by his successor.
e. A member of the Institute may resign by a letter addressed to the executive authority
of the Institute, but his resignation shall take effect only on its acceptance by the
Governing Council.
f. In all proceedings of the Institute, no person shall be entitled to vote or be counted as.
a member, whose subscription at that time has been in arrears for a period exceeding
three months as per relevant section of the Act.
g. A member of the Institute shall cease to be such a member if he becomes unsound of
mind or insolvent or is convicted of a criminal offence involving moral turpitude.
ii)
Meetings of the Society:
a) Annual General Meeting: The General Body of the Institute shall meet at least once a year
at a time and place as may be determined by the President to transact the following
business:i. to appoint Auditors each year;
ii. to consider the Annual Report along with Annual Accounts of the Institute;
iii. to consider any other matter of which seven days notice has been given in
advance to the Director General, in writing and any other ancillary business as
may be brought forth with the permission of the Chairman.
b) Extraordinary General Meeting: The President may convene Extraordinary General
Meeting of the Institute on the written requisition of not less than one-fifth of the
members of the Institute. Every requisition so made by the members of the Institute shall
express the objects for which the meeting is proposed to be called and shall be left at the
address of the Director General or posted to his address. Upon receiving any such
requisition, the Director General in consultation with the President shall forthwith
convene a meeting of the Institute. At all Extraordinary General Body Meetings, no
subject other than that stated in the notice of the requisition, shall be discussed, except
with permission of the President.
c) Notice: Every notice calling a meeting of the Institute shall state the date time and place
at which such meeting shall be held and shall be served upon every member of the
Institute not less than fifteen days before the day appointed for such a meeting.
d) Quorum: Any ten members present in person shall form a quorum for any meeting of the
General Body.
e) President of the Meeting: The President and in his absence one of the Vice-Presidents and
in their absence one of the members to be elected by those present shall preside at the
meeting of the General Body.
f) Decisions by Majority: All matters before the General Body of the Institute shall be
decided by a majority of those present and voting and the presiding officer shall have a
casting vote.
iii) Office Bearers of the SIUMAP society
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The office bearers of the Institute shall be:The Government of Andhra Pradesh shall appoint a Director General as the executive authority to
head the State Institute of Urban Management, Andhra Pradesh. The term of his or her office and
other conditions of service to be such as may be determined by the Governing Council, which shall
be constituted by the Chairman of the Empowered committee (Founding members) of APMDP. The
Chairperson of the Empowered Committee of APMDP shall become the Chairperson or President of
the Governing Council of SIUMAP. The Principal Secretary (Finance) and Principal Secretary (MA&UD)
shall be the Vice Presidents of the Governing council. The Director General of SIUMAP shall be the
Member Convener of the Governing council. The President of the Governing council shall appoint
other members of the Governing council. The members of the governing council shall form the Office
bearers of SIUMAP society.
iv) Body of the Institute at the Annual General meeting-GENERAL
i.
ii.
No proceedings of the General Body of the Institute or the Governing Council shall be
deemed to be invalid by reason merely of any Vacancy in or any defect in the constitution of
the Institute or the Governing Council as the case may be.
The income and property of the Institute however derived shall be solely applied towards the
promotion of the objects of the Institute as set forth in the Memorandum of Association. No
portion of the income and property of the Institute shall be paid or transferred directly or
indirectly by way of dividends, bonus or otherwise howsoever by way of profit to persons
who at any time are or have been members of the Institute or to any of them, or to any
claiming through them or any of them, provided that nothing herein shall prevent the
payment in good faith of remuneration to any members or other person in return for service
rendered to the Institute or for traveling allowance, halting allowances and other similar
charges.
v) Service of Notice
i.
ii.
A notice may be served upon any member of the Institute either personally or through the
post at his/her addresses mentioned in the roll of members.
Any notice so served by post shall be deemed to have been served on the day following that
on which the letter, envelope or wrapper containing the same is posted and in proving such
service it shall be sufficient to prove that the cover containing such notice was properly
addressed and put into the Post Office.
8) Governing Council of SIUMAP, AP Society
i) Composition of the Governing Council
The Governing council is the Executive committee of the society which confers powers needed for
execution of various duties for furtherance of the objectives of the society. The Governing council of
the society shall be drawn from the General body of the Society
The Chairperson of the Empowered committee of APMDP (Founding members), the Chief Secretary
to the Government of Andhra Pradesh shall be the President of the Society and the chairperson of
the Governing council, the Principal Secretary to the Government of Andhra Pradesh, MA&UD
department shall be one of the Vice President of the Society and the Vice chairperson of the
Governing council and the Principal Secretary to the Government of Andhra Pradesh, Finance
department shall be the Vice chairperson of the Governing council and the Vice President of the
society.
The Government of Andhra Pradesh shall appoint a Director General for the SIUM society, who shall
be the Secretary (member convener) of the society. The Director General shall be the chief executive
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authority of the SIUMAP and shall be responsible to the Governing council of SIUMAP. The Director
General shall be the Secretary of the Society and Member Convener of the Governing council. The
Government of Andhra Pradesh shall appoint an Executive Director of SIUM, who shall assist the DG
in the regular administration of the institute. The Executive Director shall hold the position of
Treasurer of the SIUM society and shall be a member of Governing council.
The Governing council shall have eleven executive official members and four nominated members.
Five of the executive official members are President, two Vice Presidents, One Secretary cum
Member Convener and One Treasurer shall be the office bearers of the Society. Six more members
shall be nominated by the Chairperson of the council from the various heads of departments of
stakeholder organizations in MA&UD department. Out of four nominated members two of them
shall be Ex-officio members and two shall be Patron members admitted to the General body. The
Chairperson of the council shall nominate two Patron members to the council to take into
consideration the diverse opinion and understand the views of all the stakeholders. In total the
Governing council shall have twelve members. The Governing council shall meet at least twice every
year and review the performance of the SIUMAP.
The Director General as Member Convener of the council shall be responsible for schedule of the
meetings with the approval of the Chairperson. Annual Report of the previous year of SIUMAP shall
be presented to the Governing body in the first meeting of the financial year by the Director General,
SIUMAP which shall be approved for presentation in the Annual General Body meeting. The
Governing Council shall review all strategic issues relating to SIUMAP and shall provide guidance and
direction to the institute on various matters in addition to all approvals to the autonomous SIUM.
The Chairperson shall also have powers to constitute different sub-committees and study panels
from time to time for meeting the objectives of the society. The Chairperson shall constitute a
Monitoring and Review (M&R) committee for review of the management of operational activities of
SIUMAP. The M&R committee shall monitor, review and validate all the proposals of SIUMAP before
they are put up before the Governing council or the Annual General body. The M&R committee shall
play an advisory cum review role for SIUMAP, while upholding and facilitating its autonomy.
ii) Functions of the Governing Council
The Governing council shall have the following powers and functions,
a. Observe the provisions of the memorandum of Association, Articles of Association and such
instructions of the Government of Andhra Pradesh;
b. Exercise general control and issue such directions for the efficient management and
administration of the affairs of the Institute as may be necessary;
c. Approve the annual budget of the Institute including addition or reduction of manpower with
recommendation on allowances
d. Consider the Annual Report and audited Annual Accounts, of the Institute for the
immediately preceding financial year along with the Audit Certificate, the Audit Report, and
replies of the Institute to the observations contained in the Audit Report;
e. Add to, amend, vary or rescind, any of these rules mentioned in the Memorandum of
Association;
f. Perform such other functions as are entrusted to it under these rules.
g. Approve bye-laws in its first meeting with any modifications/amendments which may be
necessary.
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iii) Terms of the Governing Council:
a) The tenure of founding and ex-officio members of the Governing body shall be coterminous
with their appointment in their posts and the nominated members shall have tenure of three
years;
b) The nominated Patron members of the Governing body shall be appointed by the
Chairperson of the Governing council. The casual vacancies in the Governing Body due to
death or resignation or otherwise shall be filled by the Government;
c) The meeting of Governing council shall be held at such date, time and place as may be
determined by the President;
d) The Governing council shall meet at least once in six months duly giving notice of at least
fourteen days;
e) For the purpose of the preceding sub-rule, each year shall be deemed to commence on the
first day of April and terminate on the thirty first day of March of the following Calendar Year;
f) The Chairperson of the Governing council shall call a special meeting, if 1/3 rd of its members
make written requisition. He may also call special meeting on his own accord whenever he
thinks fit. In both cases, a notice of at least 6 days shall be given;
g) In the absence of the chairperson, the senior Vice-chairperson shall preside;
h) One-third of the members shall form the quorum for a meeting;
i) Each member shall have one vote;
j) The voice of majority shall prevail, if there is a difference of opinion;
k) If there is equal division of votes on any matter, the President of the meeting shall have a
casting vote;
l) The chairperson may invite any person other than member, to attend a meeting of the
Governing council,
m)The Governing council shall function notwithstanding any vacancy therein and
notwithstanding any defect in the appointment, nomination or election of any member and
no act or proceedings of the Governing council shall be invalidated or nullified merely by
reason of the existence of any vacancy therein or any defect in the appointment, nomination
or election of any member; and
n) Where for any reason it is not possible for the Governing council to meet, any business which
it may be necessary for the Governing council to perform may be carried out by taking the
approval of the Chairperson after due recommendation by the Monitoring and Review
Committee, provided that the ex-post-facto approval of the Governing Council shall be
obtained at its next meeting.
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iv. Powers of the Governing Council
The general superintendence, direction and control of affairs, funds, assets and properties of the
Institute shall vest in the Governing Council, which shall exercise all powers and do all acts and things
which may be necessary or expedient for the furtherance of the objects of the Institute.
v.Legal powers
The Governing Council may on behalf of the Institute sue and defend all legal proceedings through
the Director or such other officer as may be designated for the purpose by the Governing Council in
accordance with relevant section of Act.
vi. Bye-laws
The Governing Council shall formulate and approve bye-laws,as it deems fit for the regulation of the
business of the Institute and in particular with reference to the appointment of the staff, their
condition of service, preparation and sanction of budget estimates, the sanctioning of expenditure,
entering into contracts and investment of the funds of the Institute provided that, (i) the structure of
emoluments of posts, i.e. pay scales and allowances and revision thereof, and (ii) creation of
additional posts above the pay level specified by the Department of Finance from time to time, shall
come into effect only after the approval of the Department of Municipal Administration and Urban
Development, Government of Andhra Pradesh in consultation with Department of Finance,
Government of Andhra Pradesh. Provided, further, that, the approval of the Department Of
Expenditure, may not be necessary for the creation of posts of Project Consultants as well as posts
for projects sponsored by other organizations, required for specific periods, and also for the terms
and conditions of appointment to such posts.
vii. Acceptance of Endowments and Grants
The Governing Council may accept the management of any endowment, trust or donation provided
that it is unaccompanied by any condition inconsistent or in conflict with the objects of the Society.
viii.Delegation of Powers
The Governing Council may by Resolution delegate to the Chairperson, Director General or any
officer or any Committee or Sub-Committee which may be formed, such of its powers for the
conduct of business as it may deem fit.
ix. Committees and Study Panels
The Governing Council may by Resolution appoint:(a) Committees for such purposes and with such
powers as the Governing Council may think fit, and lay down rules of procedure for such
Committees; and (b) Specialists' Panels and Expert Working Groups, drawn if necessary from nonmembers, for studies and investigation in particular fields and make necessary provision for their
functioning.
x. Meetings of the Governing Council
a. Method of Calling Meeting of Governing Council: The Chairperson himself can, or by
requisition in writing signed by him may require the Director General to call a meeting
of the Governing Council at any time and on the receipt of such requisition the
Director shall forthwith call such meeting.
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b. Notice of Meeting of Governing Council: Not less than seven clear days' notice of every
Meeting of the Governing Council shall be given to each member of the Governing
Council.
c. Presiding Authority: Every meeting of the Governing Council shall be presided over by
the Chairperson. If the Chairperson is not present at any meeting one of the ViceChairpersons and in their absence one of the members chosen by those present shall
be the Chairman of the meeting.
d. Quorum: Any six members out of twelve members of the Governing Council present in
person shall form a quorum for any Meeting of the Governing Council.
e. Decisions by Majority of Vote: All matters at a meeting of the Governing Council shall
be decided by a majority of those present and voting and in case of an equality of
votes, the Chairman shall have a casting vote provided further that, in the event of
disagreement between the ex-officio member nominated in accordance with subclause (b) of clause (1) of Rule 9 and the Chairman of the Governing Council on any
financial matter which is beyond the powers delegated to the Ministry of Urban
Affairs & Employment, Govt. of India, the matter shall be referred to the Ministry of
Urban Affairs & Employment and the Finance Minister for a decision.
f. Business by Circulars: Any business which it may be necessary for the Governing
Council to transact may be transacted by circulation among all its members and any
reso1ution so circulated and approved by a majority of the members shall be as
effectual and binding as if such resolution had been passed at a meeting of the
Governing Council.
xi. Names and Address of the Present members of the Governing Council (Executive Committee)
of SIUMAP:
SNo
1
2
3
4
5
6
7
8
9
10
11
Name in full
Designation
Address
Chief Secretary to the
Government
Principal Secretary (Finance)
Principal Secretary
(MA & UD) Department
Director General,SIUMAP
Secretary(MA&UD)
Commissioner and Special
Officer, GHMC
Commissioner and Director of
Municipal Administration
MD of HMMSWB
MD of HMDA
MD of APFUIDC
Executive Director, SIUMAP
Secretariat, Hyderabad
Governing council
position
Chairperson
Secretariat, Hyderabad
Secretariat, Hyderabad
Vice Chairperson
Vice Chairperson
SIUMAP, Hyderabad
Secretariat, Hyderabad
GHMC, Hyderabad
Secretary
Member
Member
Secretariat, Hyderabad
Member
HMMSWB, Hyderabad
HMDA, Hyderabad
APFUIDC, Hyderabad
SIUMAP,Hyderabad
Member
Member
Member
Member
*The names and addresses shall be filled at the time registration
Within a fortnight of the Annual Meeting every year, a list of names, addresses and occupations of
the members of the Governing council( Executive Committee) shall be filed with the Registrar of
Societies under the provisions of the A.P. Societies Registration Act 2001 (Act 35 of 2001).
9. Thematic and Thrust Areas:
354
The main function of State Institute of Urban Management, Andhra Pradesh (SIUMAP, AP) is to
design and impart state of the art training for the executive and legislative functionaries of the Urban
Local Bodies (ULB) in Andhra Pradesh. The institute shall also conduct research in various areas of
urban governance and development and shall aim at evolving as a Policy support organization for
formulation of urban reform and developmental policy and as a nodal organization for advisory
support for implementation of developmental schemes in urban areas.
It is also envisaged that institute shall establish information clearing house and Knowledge repository
and library in urban affairs for the state of Andhra Pradesh. The institute shall also produce high
quality research publications and literature various thematic areas of Urban affairs. These thematic
areas shall form a framework for identification of the thrust areas for design of training curricula and
planning for training courses. The following are the core thematic areas of research at SIUMAP, AP.
The three major thematic areas identified for SIUMAP under Urban affairs are i) Urbanization, Urban
policy and Urban management, ii) Urban Governance and iii) Urban Poverty alleviation and
generation of sustainable livelihoods. The three thematic areas shall have three Centres at SIUMAP
and all the three centres shall be collectively called as Centre for Excellence in Urban Affairs. Each of
these three centres shall be headed by a Professor and shall have other faculty to support Training,
Research and policy support activities. The senior most professors among the three centres shall be
the head of the Centre for excellence on Urban affairs and shall be conferred with Additional Director
designation with responsibility of coordination of administration affairs. The below thrust areas
under each thematic area are not exhaustive and can be redefined on a regular basis with the
approval of the Governing council of SIUMAP, AP.
a. Thematic Area:1- Urbanization, Urban Policy and Urban Management:
This thematic area focuses mainly on development of Urban policy tailored to meet the growing
needs of urbanization. The area shall explore the study, research, review and formulate urban
policies for the development of urban management models to meet the growing needs and
challenges of urbanization in the state of Andhra Pradesh. The thematic area shall be managed by
the Centre for Urbanization, Urban Policy and Urban Management at SIUMAP, AP. This area shall
broadly encompass the i) Urban planning and Infrastructure development, ii) Urban finance policy,
iii) Enabling Technologies for Urban Development and iii) Urban Sanitation and Environment
Management. An Urban Infrastructure and Planning Cell shall be part of this thematic area
exclusively to study issues on Urban infrastructure development.
Research and Publication activities in this thematic area shall form the major thrust for the design
and development of training programs and curricula in this area. The main focus of such training
programs in this area shall be on capacity building of senior level Department officials and the
Legislative functionaries (Elected representatives of urban local bodies).
The center shall also conduct policy level research and design training programs on technology
enablers which improve urban management (both internal administration and citizen service
delivery). The emphasis for technology based research and training programs shall primarily be on
alignment of technologies to administrative process flows of the government. The following are the
thrust areas under this thematic area on which research and training programs shall be based.
i.
Conceptualization, design and development of Urban infrastructure
i.
Performance improvement of functioning of Urban Local Councils
355
ii.
Management of Urban Environment and new developments in Urban Sewerage
management, solid waste management, sanitation and public health.
iii.
Information Technology and other enabling technologies for Management of Urban Services
iv.
Resource Mobilization
implementation
v.
Privatization, Pricing and Cost Recovery with respect to Public Private Partnership and Shared
Service models for improving efficiencies of Urban local bodies
vi.
Valuation and Assessment of Municipal Taxes and Municipal Tax administration-Revenue
management and Procedural compliance
vii.
Project Formulation for Urban Infrastructure
viii.
Development of Suburban areas and Satellite townships
ix.
Utilities and Urban management policy
x.
Urban Transport mechanisms and Implementation policy
xi.
Paradigms of Urbanization and Urban Planning
&
Financing
of
Urban
Infrastructure-urban
planning
and
b. Thematic Area-2: Urban Governance
The second thematic area shall primarily focus on strengthening the internal administration of urban
local bodies and building capacities of the Municipal functionaries for improvement of services to
citizens. This area shall have themes addressed for improvement of services for each section of the
ULB administration. Based on the broad thematic areas, thrust areas for development of training
courses and curriculum shall be developed for the following. The training programs under this
thematic area shall be directed mostly for the ULB staff. Training for both senior and junior staff shall
be part of this thematic area.
i) Municipal Finances, Audit and Accounting-Standardization of procedures and enabling
compliance.
ii) Tax administration and Revenue management at ULBs.
iii) Citizen Charter and Streamlining Citizen services
iv) Technologies for improved Town planning and Building permission procedures
v) Improved methods for Solid waste management and Urban Sanitation
vi) Human Resource Development for Public managers(Commissioners and Senior officials)
vii) Interdepartmental cooperation and Administrative procedures
viii) Single window Service delivery mechanisms
ix) Municipal Accounting, Book keeping and Audit
x) Public/Municipal Finance Management
xi) Project Management for Municipal Managers and Engineers
xii) Assets and Inventory management at ULBs
xiii) Procurement methodologies for Urban management.
356
c. Thematic Area-3: Urban Poverty alleviation and generation of sustainable livelihoods
The third thematic area shall focus on the functioning and improvement of urban poverty alleviation
and welfare schemes for generation of sustainable livelihoods in urban areas of Andhra Pradesh.
Under this theme research shall be carried out in the following major thrust areas. The training
programs based on the below thrust areas shall be for both Municipal Functionaries and the Elected
representatives.
i) Improvement of Program and Scheme management service delivery
ii) Urban housing scheme management
iii) Generation of employment and sustainable incomes for the urban poor
iv) Slum area improvement programs
v) Provision of Basic utilities (Clean drinking water, Cooking gas and electricity) for urban poor.
vi) Community participation in Urban development
vii) Urban thrift groups and financing micro-enterprises.
viii) Urban Public health program monitoring and improvement
ix) Alignment of Legislative goals to the executive functions for poverty alleviation.
Organization of State Institute of Urban Management (SIUMAP), Andhra Pradesh
SIUMAP aims to be a premier training institute for building strong capacities among the functionaries
of Urban Local Bodies in Andhra Pradesh. In addition to Training ULB and departmental employees
and elected representatives, SIUMAP shall engage in Policy support and Research to the Government
of Andhra Pradesh to buttress and strengthen the Citizen Service delivery and urban poverty
alleviation programmes.
SIUMAP shall enter into partnership with various institutes of national and international repute for
furtherance of its objectives in different areas. SIUMAP shall conduct training programmes and
workshops for capacity building of Urban Local Body staff and administrators, community
facilitators and elected representatives. The core activities of the Institute shall be carried out by an
experienced and multidisciplinary in-house faculty team with experience in Urban reforms and
development, Management sciences, Public policy, Engineering, Public health, Urban planning,
Finance, Economics, Sociology, Information technology, Government affairs, etc. External faculty
with strong domain experience in various thematic areas shall also be invited by the institute on a
periodical basis as per the requirements.
The Governing council of the SIUMAP society is the apex decision making body for the institute and
the Institute shall be headed by the Director General, who is appointed by the President of the
Governing council of SIUMAP. The Director General is the Chief executive authority of SIUMAP and
shall be assisted by the staff of SIUMAP in deliverance of the duties as per the objectives and
mandate of the SIUMAP society. The Director General shall be responsible for performance of all
the activities and duties of SIUMAP.
a) Monitoring and Review committee
There shall be a Monitoring and Review Committee for SIUMAP which shall be constituted by the
Governing council to bring together various government stakeholders in Urban affairs of Andhra
357
Pradesh to review the strategic/operational proposals and plans, Training, Research and Policy
support activities and outcomes, Stakeholder/trainee feedback, budgets, partnerships and alliances
and any other matters relating to SIUMAP before the same is put up before the Governing council’s
final approval.
The committee shall function under the general control and direction of the Governing council of the
SIUMAP society to facilitate improvements in the functions of SIUMAP in the process of meeting the
objectives. The committee shall oversee and review the functioning of SIUMAP in accordance with
the memorandum of Association of the society and the rules and service bye-laws made there under
for furtherance of the objectives of the society. The committee shall specifically review the training
need assessment status, training program and the research output and effectiveness on a regular
basis and shall review the institute’s budget before the final approval and sanction by the Governing
council. The society shall be consisting of the following members.
1. The Director General of SIUMAP shall be the chairperson
2. The Commissioner and Director of Municipal Administration shall be the Vice-Chairman
3. Managing Director, APUIDC shall be the Member
4. Mission Director, MEPMA shall be the Member
5. Director of Town and Country Planning shall be the Member
6. Engineer – in – Chief, PH shall be the Member
7. The Nominee of Director General of MCRHRDTI/CGG shall be the Member
8. The Nominee of Commissioner and Special Officer GHMC
9. The Nominee of MD,HMDA
10. The Nominee of MD,HMWSSB
11. The Executive Director of the Institute shall be the Member-Secretary
i) Functions and Powers of the Monitoring and Review Committee:
The Chairman of the Monitoring and Review (M&R) Committee shall call the meeting of the
Committee after giving a notice of at least three days. In case of emergency meeting, a notice of 24
hours shall be sufficient. The quorum shall be of half of the number of members. At least three
meetings of the Committee shall be held in one year.
The following are the functions of the M&R committee of SIUMAP. Subject to the general control and
direction of the Governing Council, the M&R Committee shall be responsible for the management
and administration of the affairs of the Institute in accordance with the rules and the Bye-laws made
there under for the furtherance of the objectives of the SIUMAP and shall have all powersadministrative and financial which may be necessary or expedient for the stated purpose;
The M&R Committee shall have the following powers and functions, namely to:
a) Review and approve the detailed plans (annual and periodical) and programmes
submitted by the Executive Director and Centres of Excellence on Urban Affairs for the
furtherance of the objectives of the Institute;
b) Review creation and recruitment of posts, and appointments for staff other than those for
whose appointment, specific provision has been made elsewhere, as may be required for
the efficient management of the affairs of the Institute and approve activities to regulate
the terms and conditions of their services as per the Service byelaws before presenting
the same for the approval of Governing council.
c) Review the Budget proposals and fund status of the Institute and advise the Director
General regarding specific requirements of the stakeholders;
358
d) Monitor the Earnings, Expenditure and Investments of SIUMAP and review the purchases,
hire/lease/exchange and other transactions dealing with movable or immovable assets of
the Institute provided.
e) Review any issues relating to contracts, collaboration agreements, general/special
instruments, service agreement, agreements containing arbitration clauses, indemnity
bonds, and deeds in respect of or connected with sale/lease/license, mortgage,
hypothecation or other deeds of a legal character of whatever description, powers of
Attorney, enforce any other legal rights and incur legal expenses entered by the Institute.
Provided that these powers are exercised for and on behalf of the Institute;
f) Support the Director General in defense of all legal proceedings on behalf of the Institute;
g) Appoint Committees, with or without the power to co-opt, for disposal of any business of
the Institute or for advice in any matter pertaining to the Institute; Provided that in cases
of emergency, the Chairman of the M&R Committee shall have the power to appoint such
committees in consultation with the Director General of the institute;
h) To accept the management of any endowment, trust, fund, subscription or donation;
Provided that it is not attended by any condition inconsistent, or in conflict, with the
objectives of the Institute;
i) To prepare for the Governing council and General body meetings on all matters
connected with the budget of the Institute;
j) To incur expenditure subject to the provisions of the approved budget for specific
purposes related to the conduct of the affairs of the SIUMAP society. Provided that
where, in the opinion of the Chairperson, an immediate decision on any matter is
essential, he/she may, within the ambit of operational necessity and efficiency or to meet
an emergency, authorize the incurring of expenditure not covered by the provisions of the
budget in consultation with the Director General of SIUMAP and Provided further that a
report would be made to the Governing Body at its next meeting and its ex-post-facto
approval obtained, wherever necessary; and
k) To lay down terms and conditions governing scholarships, fellowships, deputations,
grants-in-aid, research schemes and projects;
The M&R Committee may by resolution delegate to its Chairperson, to any Committee, or to the
Commissioner and Director of Municipal Administration or Director General or to any other officer of
the Institute, such of its powers for the conduct of business as it may deem fit, subject, if deemed
necessary to the condition that the action taken by the Director General or other officers under the
powers of delegated shall be subject to confirmation at the next meeting of the Executive
Committee.
a. Powers and functions of the Director General of the Institute:
The Director General shall be responsible for the over-all supervision of the affairs of the Institute
under the direction and guidance of the Governing Council. He shall regulate the work of the
Institute undertaken in furtherance of its objects as its technical and academic head. He shall be
responsible for all administrative duties as the Chief Executive Officer of the Institute, control the
academic, professional and other staff and perform all duties and exercise all powers assigned to him
under these, rules or entrusted or delegated to him by the Governing Council.
359
(i) The Director General of the Institute as head of the institute shall be responsible for
administration of the affairs of the Institute and shall exercise powers under the direction and
guidance of the Executive Committee;
(ii) It shall be the duty of the Director General to coordinate and exercise general supervision
over all the activities of the Institute;
b. Selection Committee:
There shall be a minimum permanent In-house faculty of SIUMAP. Utmost care shall be taken in
appointing the Researchers/Trainers/Faculty Members in the Institute. In order to attract the best
talent on a competitive basis there shall be a Selection Committee to select the faculty and staff of
the Institute including personnel to be appointed on deputation or contract basis. The Director
General of the Institute shall be the Chairman of the ‘Selection Committee’. The other members of
the Selection committee shall be nominated by the M&R Committee from time to time.
Although initially the staff shall be recruited on deputation, faculty is recruited with UGC scales and
contractual staff is recruited based on Government guidelines, SIUM shall develop a rationalized
emoluments and benefits plan for all its employees under the guidance of Director General with the
approval of the Governing council. After approval of the Emoluments and benefits plan, SIUM shall
follow a flexible salary structure and emoluments, commensurate with qualifications and experience.
The flexible salary structure shall be applicable for all the managerial staff, In-house faculty, Resource
personnel and Consultants, administrative and contractual staff of SIUM. Thus the selection
committee shall offer competitive pay and allowances to attract quality manpower and talent for all
the human resources of SIUM.
c. Operational Guidelines Handbook of the Institute:
An Operational Manual for effective management of the Institute including the functions of various
officers and staff of Institute shall be prepared separately and adopted after approval of the
Executive Committee.
d. Annual Report:
The Annual Report of the proceedings of the Institute including all works undertaken and various
achievements made, during a year together with the Audited Annual Accounts (viz., Receipts and
Payments Accounts, Income and Expenditure Accounts and Balance Sheet) for the year, the Audit
Certificate, the Audit Report and replies of the Institute to the observations contained in the Audit
Report shall be placed before the Governing Body at its next annual general meeting through the
Governing council. The Governing council shall cause a copy of the Audit Report along with its
observations thereon to be submitted to the Government of Andhra Pradesh after the Annual
General Meeting.
e. Organization Structure
The State Institute of Urban Management, Andhra Pradesh shall be headed by a Director General
who shall be a senior officer of Indian Administrative Service. The Director General shall be Secretary
and member convener of the Governing council of the SIUMAP and the Chairperson of the M&R
committee of SIUMAP. The Director General shall also represent SIUMAP for all administrative
360
matters and in all events of national and international importance. The Director General shall belong
to the Indian Administrative service and shall be appointed by the Government.
The Director General shall be assisted by an Executive Director, who shall be responsible for day to
day administration, training, Infrastructure maintenance and development and finance and any other
powers delegated by the Director General. The Executive Director shall be an officer of Indian
Administrative service or equivalent service who shall be responsible for day to day administration
and maintenance of all the functions of the institute as assigned by the Director General of SIUMAP.
The following units shall function under the leadership of the Director Genera which include the; i)
Centre for excellence (CoE) in Urban Affairs comprising of a) Centre for Urbanization, Urban policy
and Urban Management b) Centre for Urban Governance, c) Centre for Urban Poverty alleviation and
sustainable livelihoods, and other Administrative, support and maintenance units such as i)
Administrative, Accounts, Stores, Training cell and Establishment section, ii) IT cell and iii) Library,
Documentation and Publications Unit.
An Urban Infrastructure and Planning Cell as a specialized cell within the Centre of Urbanization
,Urban policy and Urban management and shall be a technical agency which shall produce all the
relevant support in Urban infrastructure and town planning domain for meeting all the objectives of
the institute.
Similarly the IT cell shall not only provide IT infrastructure maintenance support, but also be a
functional unit which shall provide information and training support on all matters relating to the use
of Information and communication technologies and other technologies like GIS,GPS, etc at ULB
offices as part of the meeting the objectives of the institute. The Administration, Accounts and
Establishment section shall be responsible for General administration, Accounts management and
regular upkeep, maintenance of institute’s infrastructure and management of logistics.
As SIUMAP, AP is positioned as a premier academic and research organization, appropriate
experienced merit based recruitment of staff shall be followed at all levels. The faculty of the
institute shall mainly be involved in Research and Training functions. The Director General shall also
invite eminent faculty for training and research functions. The personnel at Centres of Excellence
shall be dedicated only for Research and training functions and all other units of the organization
shall support their efforts under the guidance and leadership of the Director General of the institute.
The head of the Centres for excellence in urban affairs shall be of an Additional Director rank and
shall attend to the administrative activities for coordination of research and training initiatives and
any other duties as assigned by Director General.
It is envisaged that the quality of the research and training output of the Centres of Excellence is
directly proportional to the success of the training programs and all other research and policy
initiatives of the SIUMAP, AP. Therefore the institutional focus shall be more on the development of
Centres of Excellence as advanced centres of learning and research. To meet this objective the
faculty at Centres of excellence shall be supported adequately in terms of manpower and training
grants to attract the best in the country.
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f. Administrative and Governance set up
The Institute's policies and directions are determined by the Governing council of the SIUMAP
society which shall meet at least twice annually and review the functions of the SIUMAP. The M&R
council of the institute shall provide assistance and support for the function of the Governing council
meetings. While Governing council shall be involved in providing strategic guidance to SIUMAP,
M&R committee shall be involved in providing both strategic and operational support to meet the
institute’s objectives. An Operational guidelines Handbook for effective and efficient management
of the Institute including the Service byelaws, functions of various officers and staff of Institute shall
be prepared separately under the guidance of the Director General and shall be adopted after
approval of the M&R Committee.
Figure2: Organization structure of the State Institute of Urban Management, Andhra Pradesh
g. Managerial Staff of the Institute
The institute shall be started with core managerial staff members at the inception stage funded by
APMDP during the project period with most of the Key Administrative staff to be appointed on
deputation basis by the Government. During the initial phase operational, maintenance and support
staff shall be outsourced and the faculty and other key functional staff shall be recruited by a
selection committee constituted by the Director General and approved by the M&R committee.
Other staff as approved subsequently by the Governing council shall be funded from the General
funds of the Institute. The institute shall however from time to time source resource persons,
Consultants, domain specialists and other professionals on piece rate basis for conducting Training
programs and to meet other objectives of the institute. All the other operational and maintenance
362
staff shall be outsourced in the first year during the institute’s establishment. The key managerial
staff of the institute who shall be initially recruited for establishment of the institute are as follows.
The details of the Job description of the staff that shall be supported from APMDP for the duration
of the project are as follows.
SNo
Staff Designation
Director General’s Office
1
Director General
Number
Description of Qualifications
One
(On
Deputation)
Senior
post
of
Indian
Administrative
Service
or
equivalent
2
Executive Director
One
(On A Junior post of Indian
deputation)
Administrative
service
or
equivalent
3
Private Secretary to DG One
(On On deputation(IT experience is
Deputation)
highly desirable)
Administration and Establishment(Administration, Accounts, Stores, Training
maintenance) Section
1
Additional
Director One
(On Senior
officer
from
(Administration,
Deputation)
C&DMA/MA&UDD
of
Training
and
Additional Director cadre
Infrastructure)
2
Assistant
Director One
(On Assistant Director cadre from
(Administration
and Deputation)
the Municipal Department on
Finance )
deputation with Experience in
Finance section
3
Senior Assistant with IT One
(On On deputation from MA&UDD
experience
for deputation)
Administration
and
Stores
4
Senior Assistant with IT One
(On On deputation from MA&UDD.
experience for Training Deputation)
cell
5
Accountant with IT One(On
On deputation from MA&UDD.
experience for Finance Deputation)
and Accounts
6
Junior Assistant with IT One(On
On deputation from MA&UDD.
experience
for Deputation)
Infrastructure
maintenance
Centre for Excellence in Urban Affairs
1
Professors (One each Three (As In- One with PhD in Public policy
for each of the three house faculty)
Finance or Economics, or Public
Centres)
Administration,
or
Professors with 20
Management
Sciences
years
of
total
background for heading the
experience of research
Centre for Urban Management.
or academic work in
-One with PhD in Urban
training and research
Economics, Public Finance,
organizations
of
Public
administration/policy,
Government of India or
Management Sciences for
Andhra Pradesh. (–PhD
heading Centre for Urban
essential
for
a
Governance
professor post)
-One
with
Developmental
economics,
Sociology,
Psychology, Human Resource
development background for
heading Centre for Urban
363
Pay
On their own pay
On their own pay
On their own pay
Cell & Infrastructure
On their own pay
On their own pay
On their own pay
On their own pay
On their own pay
On their own pay
UGC scales
2
Associate Professors-
One (As Inhouse faculty)
3
Assistant
ProfessorsPhD essential
(One each for each
CoE)
-One with Architecture
and/Or
Civil
Engineering
background
with
experience in Urban
Infrastructure
-One
with
Public
Finance and Accounting
or
Management
sciences background
-One with
Social
sciences
or
Management sciences
background
Three (As Inhouse faculty)
IT cell
1
Head IT cell
One
(On
Deputation)
Library, Publication and Documentation Centre
1
Librarian
One
(On
deputation)
Contractual Staff
Poverty alleviation
The Senior most of the three
professors shall be the head of
the Centre for excellence in
Urban affairs and shall be of
Additional Director rank. He
shall
have
certain
administrative
duties
to
perform mainly related to
coordination between the
centres of excellence and shall
report to Executive Director on
all operational issues.
Associate Professors with 10
years experience. Should be a
PhD or Post graduates with
equivalent
experience
in
Research and academics in
urban affairs may also be
considered.
One with Architecture and/Or
Civil Engineering background
with experience in Urban
Infrastructure who shall be
incharge
for
the
Urban
Infrastructure and Planning cell
at the Centre of Urban
Management.
Assistant Professors with 5
years experience
UGC scales
UGC scales
District officer rank with
Experience in IT sector projects
for a minimum of three years
on deputation
On their own pay
Librarian/Assistant
cadre on deputation
On their own pay
librarian
Pay decided by the
Governing council as
per
approved
364
Government posts in
similar institutes
To assist different
sections
of
the
SIUMAP. Allocation of
the contractual staff to
various sections shall
be based on the
decision of the Director
General.
For contractual staff
recruited as part of any
research
project
deployment shall be as
per project.


To
be
outsourced
through
Manpower
supply agencies.










Training Assistants (3)
System
Administrator(1)
Data entry operators
(8)
Personal
Assistants
cum typist (2-One each
for DG and ED)
Personal
Secretary
cum Stenographer (2One each for DG and
ED)
Attender
cum
Messengers (4)
Chowkidars (2)
Staff vehicle drivers (8)
Receptionist
cum
telephone operators
(1)
Machine Operator (1)
Gardener
cum
Sweepers (4)
Draughtsman (1)
The Director General of SIUMAP shall be the appointing authority of the above staff with the
approval of M&R committee of SIUMAP and ratification of the Governing council. As an executive
authority of the institute the Director General shall lead the administration and all the initiatives to
meet the objectives of the society.
An Executive Director shall be appointed by the Director General with the approval of the Governing
council who shall assist the Director General in all Administration affairs on a regular basis for
meeting the objectives of the institute. One Additional Director shall work as Incharge for Training
cell and Infrastructure maintenance and administration of the SIUMAP.
The Centre for Excellence in Urban affairs shall be the hub of activity for performing all the key
training, and research functions of the SIUMAP. The Centre shall be headed by an Eminent Professor
in Urban affairs who shall spearhead all the training, research and policy support initiatives of
SIUMAP in consultation with the Director General of the institute.
The Professor shall be of Additional Director designation and shall be responsible for setting the
research and training agenda of the institute in consultation with the Director General. There shall be
three centres for three thematic areas in Urban affairs. Each centre shall be headed by a Professor
and shall have other faculty such as an Associate Professor and an Assistant Professor.
The Professors of the Centres of Excellence shall be the In-house faculty of SIUMAP and shall be
responsible for conduct of all the training programmes with the support of Additional Director
(Admin, Training and Infrastructure). The Executive Director of the Institute shall coordinate the
efforts of the faculty and administrative staff under the overall supervision of the Director General.
365
The Director General shall constitute the following sub-committees for smooth functioning of
internal operational issues of the institute on a regular basis.
i) Infrastructure maintenance committee (Under the chairmanship of Executive Director with
Assistant Directors, Librarian and three Faculty members as members and Additional
Director(Infra & Training) as Member Secretary)
ii) Staff research council (Headed by Director General and Additional Director (Research and
Policy support) as member Secretary,, three Faculty, Librarian as members and Administrative
officer member secretary)
iii) Training cell committee (Under the chairmanship of Executive Director and Additional
Director (Training & Infra) as member Secretary, with Assistant Directors, Editor, Librarian and
3 faculty as members)
iv) Staff welfare committee (Under the chairmanship of Executive Director with Additional
Director (Training and infra)as member secretary and with Assistant Directors, Editor,
Librarian and 3 faculty as members)
v) Publication Committee Headed by Director General, three Faculty, Librarian as members and
Additional Director (Research and Policy support),as member secretary)
vi) Purchasing Committee Under the chairmanship of Executive Director, with Additional
Director
(Training and infra) as member Secretary, with Assistant Directors, Editor,
Librarian and 3 faculty as members)
vii) Other ad hoc committees as may be necessary
The State Institute of Urban Management shall have the following functional units under it.
1. Centres for Excellence in Urban affairs with three sub-centres for three thematic areas
namely
i. Centre for Urban management,
a. Urban Infrastructure and Planning Cell
ii. Centre for Urban governance and
iii. Centre for Urban poverty alleviation and sustainable livelihoods.
2. Administration, Finance, Stores, Training cell and Infrastructure maintenance section
3. Library, Publication and Documentation unit
4. IT cell
The Centres for Excellence (CoEs) shall be headed by the Professor and Head of Urban affairs and
Additional Director (Research and Policy).Rest of all the units shall be headed by the Additional
Director (Administration, Training and Infrastructure). The Executive Director shall coordinate the
activities of the Additional Directors and ensure smooth functioning of all the activities in the
institute. The following is brief description of the functional units of the institute other than the
centres of Excellence in Urban affairs. The description of Centres of Excellence in Urban affairs has
been detailed in Chapter-2 of this document.
i. Library, Publication and Documentation Unit
The Institute shall have a state of the art Library and Knowledge repository centre which shall be the
nodal information repository for urban affairs in the state. The Library of SIUMAP shall function as a
State level library for Urban affairs and shall be an Information clearing house. The Library shall
maintain latest publications and journals on Urban affairs and shall coordinate and seek help of
National Institute of Urban affairs in establishment of online book and literature databases. The
library shall have an annual budget and shall be prioritize the procurement process upon the
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indenting from the faculty and Institute’s council. The Library shall be headed by a Librarian or an
Assistant Librarian..
The publication unit shall work in close coordination with the Institute’s Library, Centres for
Excellence, IT and the Training cell. The Unit shall be responsible for the production of all Published
material from the institute. The Intellectual property rights for all such material shall rest with
SIUMAP. The unit shall also house xerography, reprography and printing units. The unit shall
primarily produce Annual Report and other reports, journals, monographs, Resource books, Training
material, Brochures, Leaflets, Flyers, Training calendars, etc. for meeting the objectives of the
institute. The Assistant Director (Admin) shall be responsible for maintenance and stores for the
Publication unit which shall be managed in coordination with Librarian.
ii.
Administration and Establishment (Administration, Accounts, Stores, Training Cell and
Infrastructure maintenance)
The Administration and Establishment section shall be headed by the Assistant Director (Admin and
Accounts) who shall report to the Additional Director (Administration, Training and Infrastructure).
This section shall have five sub-sections namely i) General Administration ii) Accounts iii) Training cell
(Logistics, Scheduling and Program management), iv) Stores and v) Infrastructure maintenance.
Infrastructure maintenance shall also be part of this section. The main maintenance functions are i)
Maintenance of the Institute’s physical infrastructure (Classrooms, Mess, Hostel, Auditorium,
Conference hall, lecture halls, etc.), ii) maintenance of IT infrastructure, iii) Maintenance of vehicles
and other assets of the institutes and iv) Any other maintenance activity as delegated by the
Director General of the institute.
The training cell shall be headed by Additional Director (Training & Infra) and shall be assisted by an
Assistant Director (Admin and Accounts ) for planning, scheduling and design and conduct of training
courses and programmes in close coordination with the faculty of the institute’s Centres for
Excellence. The Training cell shall be responsible for management of all the training infrastructure
including the Auditorium, Classrooms, Conference halls, hostel, outsourcing of vehicles, invitation of
eminent faculty and arrangement of logistics and reception for all the trainees and the guests of the
institute as deemed necessary. The Training cell head shall coordinate with IT cell, Administrative and
Finance section, Publication unit in furtherance of the objectives of the institute.
iii.
Information Technology Cell
There shall be an Information Technology Cell for the SIUMAP. The cell shall be headed by a District
officer rank official. A SIUMAP LAN network shall be established and the cell shall be responsible for
development and maintenance of SIUMAP website. The IT cell shall coordinate the management of
IT infrastructure of the institute and shall be responsible for all IT related matters of the institute
under the guidance of the Executive Director. The IT cell shall have a System Administrator and a
Data base administrator and other staff as approved by the M&R committee of SIMAP.
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10. Key Functional Activities
The State Institute of Urban Management shall of three primary functional activities. They are
i) Training
ii) Research
iii) Policy Support and consultancy
Training shall be focused on development of courses targeted to both the Executive and Legislative
functionaries of local bodies. The main aim of the training programs is to build the capacities of the
ULBs in line with the objectives of enhancing the operational efficiency of ULB administration for
improved delivery of services to the citizens. The Institute’s Training cell sub-committee and the
Research and policy support sub-committee shall work in coordination to arrive at the Training plan
and calendar every year which shall be approved by the M&R council.
i) Training Areas and Courses
The three functional areas of the State Institute of Urban Management shall drive one another to
produce outcomes as per the objectives laid down in the Articles of Association of the institute.
Capacity building of the ULB staff shall be core activity which shall be the foundation for planning and
implementation of all the functional areas. As training is the key component of capacity building of
ULB functionaries, all the training programs shall be planned broadly as per the thematic areas and
specifically with reference to the thrust areas mentioned in chapter-2 of this document. The mode of
training shall be classroom based lectures, seminars, workshops, Interactive sessions, hands-on
workshop sessions, or by any other means approved by the M&R committee. Although courses shall
be developed as per the key thematic and thrust areas, the Director General and the M&R
committee shall continuously monitor and review the programs, training needs, curricula and
propose new areas and courses if necessary. But broadly the training areas shall be functionally
classified into the following areas namely,
i) Training for Senior functionaries of ULBs and MA&UD department for improving
Administration and decision making, Procedural aspects of administration, Project and
Program management, Building skills in new technologies, etc., across all the thematic
areas.[Mostly the mode of training in this area shall be in the form of 1-2 day workshops,
Study tours, Seminars (1/2 day to 1 day) and interactive sessions (1-2 days) for courses in
Information technology, GIS ,etc.]
ii) Training programs for Elected Representatives of ULBs on Scheme implementation .(Mostly
the mode of training in this area shall be in the form of 1-2 day workshops, Study tours,
Seminars (1/2 day to 1 day)
iii) Certification courses for Municipal staff on various functional domains based on thematic
areas (The courses can be 2-7 day duration and shall be mostly based on classroom based
lectures).
iv) Certification courses for Technical staff (Engineering, Public Health, Town planning)(Interactive sessions of 2-3 day duration)
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v) Provision of Online training material/videos and conducting online certification examinations
for Municipal staff in various functional domains like Revenue, Engineering, Public Health and
Sanitation, Engineering, Administration and Establishment, Accounts and Poverty alleviation.
vi) Training programs on Accounts and Municipal Finance for Assistants, Senior Assistants,
Superintendants, Managers, Accountants, etc.(3-5 day in-house training programs)
vii) Training Programs on use of Information technology and other technologies for Assistants,
Senior Assistants, Superintendants, Managers, Accountants, etc.(3-5 day in-house training
programs)
In addition to the above the areas, SIUMAP shall also conduct interactive training sessions, symposia,
etc. involving various stakeholders involved in urban management like NGOs, citizen forum,
Community organizers, etc. SIUMAP shall maintain a website with a link to a training portal for
information dissemination and registration for training courses.
ii) Research and Thought leadership in Urban Management
The Centres of Excellence in Urban Affairs at SIUMAP shall nurture scholarship and advanced
research towards solving various problems associated with Urban Development, Urban Governance
and Urban poverty alleviation. The faculty of the institute shall conduct field based investigations and
analytical studies into various challenges faced in urban areas. The research faculty shall liaise with
institutes of national and international repute to exchange ideas and work on joint projects to
develop long lasting solutions to the Urban challenges faced in Andhra Pradesh. SIUMAP shall take
up both internal and external projects and shall also apply for competitive grants given by national
and international funding agencies. Through original and peer-reviewed research, SIUMAP shall
undertake though leadership publications in Urban management which shall help in dissemination of
information on urban affairs within India and abroad. SIUMAP shall provide some of the thought
leadership publications and articles free on its website to various researchers around the world. The
executive staff of SIUMAP namely Director General, Executive Director, Additional Director (Admin,
Training and Infra) who have long years of administrative experience may also participate in policy
support, Research and Training activities as per Service rules.
iii) Policy support for Implementation of Urban reforms and Urban Development
Through its comprehensive training curricula, well designed training courses and strong research
focus, SIUMAP is envisaged to specialize in urban management and governance issues of Andhra
Pradesh and evolve as a think tank on urban affairs in the state and the country. The Director
General of the institute in coordination with the in-house and external researchers and faculty shall
foster policy research for finding solutions to the problems of Urban management. The institute shall
develop strong linkages with institutes like NIUA-New Delhi, MCRHRDTI-Hyderabad, ASCI-Hyderabad,
NIFPP-New Delhi, SIUD-Mysore, NIRD-Hyderabad, APPA, Hyderabad, AMR-APARD, Hyderabad,
NAARM, Hyderabad, SVPNAP, Hyderabad, WALAMTARI, Hyderabad ,IITs, IIMs, SPA,New Delhi and
other such academic and research institutes in India and abroad to jointly conduct research and
policy design workshops, brain storming sessions, symposia, etc. to develop foundations for urban
development policy formulation. The Institute shall also bring together diverse stakeholders on a
common platform to understand various facets of the challenges and problems associated with
Urban development, which shall help in development of comprehensive foundation for policy
formulation for the government. Essentially the institute shall in its capacity of apex training and
research body shall provide policy support to the state and local government and shall support the
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governments in project and program implementation. The SIUMAP shall also partner with various
consultant organizations and individual consultants for focusing on outcomes of policy support to the
governments.
11. Resources, Budget Provisions and Sources of Funding
i)
Infrastructure and Resource Plan
The institute shall be established in the premises of City Manager’s Training Institute Hyderabad and
new infrastructure shall be developed based on Governing council’s approval.
The infrastructure at the City managers training Centre, Jubilee Hills, and Hyderabad shall be
utilized for the State Institute of Urban Management, Andhra Pradesh. SIUMAP aims to be a
residential training institute and shall provide hostel accommodation facilities to all the trainees and
guests of the institute. However accommodation, logistics, lodging, boarding and catering facilities
shall also be procured from the open market based on the need and requirement as approved by
the Governing council of the institute.
The institute shall also house a Knowledge repository centre and State library on Urban
management which shall function as the apex information repository for Urban affairs in the state
of Andhra Pradesh. The institute shall be equipped with the latest Information Technology
infrastructure, audio-visual aids and Multimedia set up and other enabling technologies for conduct
of research projects, training programs, publication and other allied academic and research
activities. SIUMAP shall also conduct programs at district and ULB level, details of which shall be
detailed as per the directions of the Governing council.
SIUMAP with the directions of the Governing council shall also establish Regional and district level
training centres as per requirements of the Government and can conduct e-learning and other
certification courses to reach wider target audiences as per the directions of the M&R council.
ii) Funds of the Institute
As the establishment and running of SIUMAP is funded as one of the component of the World Bank
funded “Andhra Pradesh Municipal Development Project”, the initial funding for the institute during
the implementation of APMDP shall be from the APMD project during the period of the project. As
the institute shall developed as a Registered society which is a perpetual legal body, additional
sources of funding for conduct of the institute affairs shall be explored and generated through
various ways and means.
All efforts with reference to fund management and financial planning of the institute shall be
directed towards making the institute self-sustainable over a period of time. All the funds for SIUMAP
shall be under the control of the Treasurer of the Society and Executive Director of the Institute who
shall be assisted by the Assistant Director (Administration and Finance)
The sources of funding for SIUM society are the following.
a) grants made by the Government of India, any State government or planning and
development authority; municipal corporation or other local bodies;
b) donations and contributions from other sources;
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c)
d)
e)
f)
Membership fees and subscriptions;
fees and charges imposed by the Institute for services rendered by it;
income from investment, properties and other assets;
income and receipts from publication and other sources.
To mobilize more resources the institute shall also seek endowments, sponsorships and grants from
corporate bodies, NGOs, National and International donors and individual patrons. Such members
provide grants or sponsor training and/or research programs or shall subscribe for annual or lifetime
memberships of the Institute’s society. All such members shall be qualified and admitted to the
society by the President on the recommendation of Director General. All members admitted into the
society shall become part of the general body and are generally stakeholders in urban affairs with
strong interests and qualified experience in management of Urban affairs.
iii) Fund Administration
a) The bankers of the Institute shall be any of the nationalized Public Sector bank or banks as
decided by the Director General and approved by the Governing council.
b) The Director General shall by order designate any of the officers of the of the Institute as
Drawing & Disbursing Officer of the Institute, who shall be under the administrative control of
the Treasurer of the Society/Executive Director of the institute.
c) For the funds provided by the APMDP the rules under the operational manual of the APMDP
under fund administration shall apply.
a) Reserve Funds or Special Funds
The Governing Council may set apart a Reserve Fund or Special Funds out of any income,
endowments, loans, donations, grants and contributions for specified purposes and for progressive
financing of the activities of the Institute. No part of such funds shall be utilized for purposes other
than specified.
b) Bankers, Accounts & Audit
The bankers of the Institute shall be a duly constituted bank or banks designated for the purpose by
the Governing Council from time to time. All money shall be paid into the Institute's account with the
bank or banks so appointed and shall not be withdrawn except by means of cheques signed by the
Director General or by such officer or officers of the Institute or by such of its members as may be
decided by the Governing Council.
i.
The accounts of the Institute shall be audited by Auditors appointed by the General Body. The
nature of audit to be applied and the detailed arrangements to be made in regard to the form
of accounts and their maintenance and presentation of the account shall be determined by
the Governing Council from time to time.
ii.
The annual account of the Institute together with the audit report thereon and a report of the
proceedings on all work undertaken during the year shall be prepared by the Governing
Council for the information of the members and shall be placed before the General
iv) Audit of the Accounts
a) The Institute shall cause regular accounts to be kept of all its money and properties in respect
of is affairs. The accounts shall be maintained in such form as the Government may prescribe.
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b) The accounts of the Institute shall be audited annually by the Charted Accountant besides
regular audit done by the Comptroller and Auditor General of India or by any person
authorized by him in this behalf and any expenditure incurred in connection with such audit
shall be payable by the Institute to the Comptroller and Audit General of India/Chartered
Accountant.
c) The results of the Audit shall be communicated by the Auditor to the Director General.
d) For the fund support of APMDP the auditors as appointed for the project under
comprehensively defined Terms of Reference as decided by Governing council shall apply.
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12. Miscellaneous
i. Powers of the Government:
The SIUMAP shall be an autonomous institute. As the founding member of the society and in the
capacity of the official membership of the Governing council, the government shall have complete
authority over monitoring the conduct of the affairs of the institute as per the set objectives. The
Director General shall be responsible for execution of the powers vested in the position by the
General body through Governing council for conducting the affairs of SIUMAP with the assistance of
Executive Director.
ii. Alteration or Extension of the purpose of the Institute:
Subject to the provision of the A.P. Societies Registration Act 2001, the Governing Body may alter,
extend or abridge any purpose or purposes for which the society is established. The Institute may
alter or extend the purposes for which it is established:
a) If the Governing Council shall submit a proposal for such alteration or extension as aforesaid
to the members of the Institute in a written or printed report;
b) if the Governing Council shall convene an Extraordinary General Body Meeting of the
members of the Institute according to these Rules for the consideration of the said proposal;
c) if such report be delivered or sent by post to every member of the institute fourteen clear
days previous to such Extraordinary General Meeting as aforesaid;
d) if such proposal be agreed to by the votes of three-fifths of the members of the Institute
delivered in person at such Extraordinary General Meeting as aforesaid; and
e) if such proposal be confirmed by the votes of three-fifths of the members of the Institute
present at a second Extraordinary General Meeting convened by the Governing Council at an
interval of one month after the former meeting. .
iii. Amendment of the rule:
These articles shall not be altered varied or cancelled unless passed by a special resolution voted by a
2/3rd strength of the members present and voting at a meeting of the Executive Committee, called
for this purpose. The rules of the Institute may be altered at any time by Resolution passed by twothirds majority of members of the Governing Council present and voting at a meeting of the Council
which shall have been specially convened for the purpose, and subject to confirmation at a meeting
of the General Body of the Institute, duly convened for the purpose.
iv.
Change of Name of the Institute:
The Institute may change its name by a Resolution passed by a majority of the members of the
Institute present and voting at a meeting of the General Body of the Institute, which shall have been
duly convened for the purpose.
v.
Legal Proceedings:
The Institute may sue or be sued in the name of the Society. The jurisdiction of all suits for or against
the Society shall be jurisdiction of the Hyderabad District.
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vi.
Dissolution
a.The Institute may be dissolved subject to provisions of sections 24 of the A.P. Societies Registration
Act 2001. If any property remains after the settlement of its debts and liabilities, it will be
transferred to an Institute or organization of similar objectives chosen by the Governing Body by
3/4th of the members, but shall not, under any circumstances, be distributed among the members
of the Institute.
b.
If on winding up or dissolution of the Institute there shall remain after the satisfaction of all
its debts and liabilities any property whatsoever, the same shall not be paid to or distributed
among the members of the Institute or any of them, but shall be transferred to the Government of
Andhra Pradesh, “subject to the condition that the transfer shall take place to some other society
having similar aims and objectives”.
13. Declaration:
We the undersigned are desirous of forming a Society in pursuance of this Memorandum of
Association. We, the undersigned being the members of the Executive Committee of the State
Institute of Urban Management, do hereby, certify that the above is a correct copy of the Articles of
Association of the said Institute unanimously adopted by the members of the Executive Committee
present on the………………. of ………. 2008 in the meeting called for the purpose.
S No
Signature in full
Address, Occupation
and Designation
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Witness (Full name and
Signature)