Grant Implementation Manual

Project Number: 34038 July 2008

People’s Republic of Bangladesh: Erosion-Affected Poor in the Jamuna-Meghna Floodplains (Financed by the Japan Fund for Poverty Reduction)

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TABLE OF CONTENTS

ABBREVIATIONS……………………………………………………………………………... ivPROJECT SUMMARY………………………………………………………………………... vMAP…………………………………………………………………………………………….. xFUND PROCESSING HISTORY…………………………………………….………………. xi I. Project description ……………………………………………………………………. 1 A. Project Area and Location ………………………………………………………... 1 B. Objectives ………………………………………………………………………….. 2 1. Objectives …………………………………………………………………….. 2 2. Specific Objectives ………………………………………………………...… 2 C. Scope…………………………………………………………………………….. 2 1. Livelihood Enhancement Through Permanent Employment…………….. 2 2. Community Organization & Networking of the Poor……………………… 2 3. Project Management & Poverty Impact Assessment…………………….. 3 D. Implementation Planning Issues on Individual JFPR Components...……... 5 E. Special Features………………………………………………………………… 7 i. Process Approach……………………………………………………………. 7 ii. Poverty Alleviation…………………………………………………………… 8 iii. Women in Development…………………………………………………….. 8 iv. Environmental Issues……………………………………………………….. 8 II. COST ESTIMATES AND FINANCING PLAN…………………………………….. 8 A. Detailed Cost Estimates……………………………………………………...... 8 B. Financing Plan…………………………………………………………………... 9III. IMPLEMENTATION ARRANGEMENTS…………………………………………... 9 A. Executing and Implementing Agencies……………………………………….. 9 B. Implementation Procedures……………………………………………………. 11 C. Relending and On-lending Arrangements for Micro-credit Activities……… 12 D. Linkages to the ADB-Financed Project……………………………………….. 13 E. Sustainability…………………………………………………………………….. 13 F. NGO and Community Involvement……………………………………………. 13 G. Implementation Schedule………………………………………………………. 13IV. FUND FLOW, PROCUREMENT, CONSULTING SERVICES AND

FUND DISBURSEMENT…………………………………………………………….. 14 A. Fund Flow………………………………………………………………………... 14 B. Procurement …………………………………………………………………... 14 C. Consulting Services…………………………………………………………….. 14 D. Implementation of Training…………………………………………………….. 14 E. JFPR Fund Disbursement ……………………………………………………… 14 F. Contract Awards/Commitments and Disbursement Projections …………… 15 G. Fund Closing Date………………………………………………………………. 15 V. PERFORMANCE/BENEFIT AND IMPACT MONITORING INDICATORS …….. 16 A. Performance/Benefit Monitoring and Evaluation (BME)…………………….. 16 B. Mid-Term Review……………………………………………………………….. 17 VI. REPORTING, ACCOUNTS, AUDITS AND PROJECT COMPLETION

REPORT……………………………………………………………………………….. 18 A. Progress Report…………………………………………………………………. 18 B. Auditing Report ………………………………………………………………….. 18 C. Project Completion Report……………………………………………………... 18VII. IMPACT ASSESSMENT…………………………………………………………….. 19 A. Sustainable Poverty Reduction Impact ……………………………………….. 19 B. Participatory Development Issues …………………………………………... 19VIII. RISKS, ASSUMPTIONS, AND ASSURANCES …………………………………... 20 IX. DIRECTORY OF PERSONNEL…………………………………………………….. 21

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APPENDICES

APPENDIX 1: JFPR PROJECT FRAMEWORK ……………………………………... 23 APPENDIX 2: PROJECT STRUCTURE/ARRANGEMENTS………………………… 26 APPENDIX 3: COST ESTIMATION AND FINANCING PLAN……………………... 27 APPENDIX 4: GENERAL TERMS OF REFERENCE FOR PROJECT

IMPLEMENTATION UNIT (PIU) AND IMPLEMENTING AGENCY… 31

APPENDIX 5: ELIGIBILITY CRITERIA FOR IAs (NGO/MFls) SELECTION……..... 33 APPENDIX 6: MODEL OF A DEVELOPMENT PLAN………………………………… 35 APPENDIX 7: PROJECT IMPLEMENTATION SCHEDULE…………………………. 36 APPENDIX 7a: PROJECT PERSONNEL DEPLOYMENT SCHEDULE……………... 37 APPENDIX 8: TERMS OF REFERENCE OF THE IMPLEMENTATION

CONSULTANT…………………………………………………………… 39

APPENDIX 9: GENERAL PROCEDURE FOR ESTABLISHING AND OPERATING IMPREST FUND…………………………………………

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APPENDIX 10: WITHDRAWAL APPLICATION FORM………………………………. 42 APPENDIX 11A-11C: FORMS FOR FUNDS DISBURSEMENT FROM EA TO IA AND

EA's REPORTING TO ADB…………………………………………… 45

APPENDIX 12: SUGGESTED FORMAT FOR THE QUARTERLY PROGRESS REPORT…………………...................................................................

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APPENDIX 13: SEMI-ANNUAL GRANT STATUS REPORT………………………... 50 APPENDIX 14: OUTLINE FOR PROJECT COMPLETION REPORT……………… 52 APPENDIX 15: M&E PLAN ……………………………………………………………….. 53 APPENDIX 16: EXPECTED POVERTY REDUCTION IMPACT……………………… 59

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CURRENCY EQUIVALENTS

( as of 11 December 2006) Currency Unit = Taka (Tk) Tk1.00 = $0.0142 $1.00 = Tk.70.00

In this Report, a rate of $1.00 = Tk 70 has been used. This was the rate generally prevailing during the appraisal of the Project. The Bangladeshi taka is fully convertible on all current account transactions.

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ABBREVIATIONS ADB Asian Development Bank BME Performance/Benefit Monitoring and Evaluation BWDB Bangladesh Water Development Bank CBO Community-based Organization CRO Chief Resettlement Officer EA Executing Agency FGs Functional Groups IA Implementation Agency IC Implementation Consultant IRCs Information and Resource Centers JFPR Japan Fund for Poverty Reduction JMREMP Jamuna Meghna River Erosion Mitigation Project MDIP Meghna Dhonagoda Irrigation Project MFls Microfinance Institutions NGO Non-Government Organization O&M Operation and Maintenance PKSF Palli Karma Shahayak Foundation PIU Project Implementation Unit PIRDP Pabna Irrigation and Rural Development Project PMO Project Management Office PCR Project Completion Report RCF Revolving Credit Fund SHGs Self-help Groups SMO Subproject Management Office SOE Statement of Expenditures SRS Senior Rural Sociologist TSD Targeted Social Development WMGs Waterworks Maintenance Groups

NOTE (i) In this report, "$" refers to US dollars. (ii) The fiscal year (FY) of the Government ends on 30 June.

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PROJECT SUMMARY

Recipient

: The Government of Bangladesh (GoB).

Project Description : The project will (i) create permanent employment opportunities, such as, nursery development and social forestry, fish culture, and livestock development, along with the effective use of existing water management facilities (including the lands and water bodies); and (ii) develop the organizational, institutional, and leadership capacities of the poor through community mobilization and organization and networking, and by establishing self-managed information and resource centers (IRCs) in the Pabna Irrigation and Rural Development Project (PIRDP) and Meghna Dhonagoda Irrigation Project (MDIP) areas, established under Jamuna Meghna River Erosion Mitigation Project (JMREMP). In return, the beneficiaries will be engaged in the operation and maintenance (O&M) of water management facilities, thereby, contributing to their long-term sustainability.

Classification : Primary objective: Targeted poverty reduction and commensurate institutional development for those affected by river erosion and others of the poor people with an emphasis on destitute women.

Environmental Assessment

: :

Category B An initial environmental examination was undertaken.

Rationale : Bangladesh, with an area of 144,000 square kilometers (km) and population of 130 million, is a deltaic floodplain. The country is largely made up of alluvial soils deposited by the three main river systems: Padma, Jamuna and Meghna rivers. Most of the lands in the delta have a slight slope, resulting in rapid silt deposition on the riverbeds. As a result, occasional high floods caused by the decreased carrying capacity of the river channels, and gradual or sudden shifting of river courses, sometime by as much as 1 to 2 km annually, can wipe out towns, market centers, and village settlements along the riverbanks. Riverbank erosion displaces around 100,000 people every year. Floods have a dual significance in Bangladeshi culture. The annual flood, which is generally associated with monsoon rains, is beneficial and considered to be a routine part of life. The traditional agricultural economy is largely dependent on this annual normal flooding, which typically inundates about 20% of the country. However, abnormal or high floods, which occur once every few years, cause widespread damage to crops and property and sometime significant losses of animal and human lives. In the areas of Pabna Irrigation and Rural Development Project (PIRDP) and Meghna-Dhonagoda Irrigation Project (MDIP), vulnerability to floods and erosion are much greater than other

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areas due to the settlement of large number of people, displaced by erosion, on their flood embankments. In the last 10 years, some 5,000 households migrated from nearby eroded areas. Many of these households live as informal settlers/squatters along the 4.4 km embankment section in the MDIP area and 7.0 km embankment section in the PIRDP area. A larger number of displaced households have settled in other sections of the embankments and public lands forming squatter communities. All of these households have few physical assets and derive their livelihoods mainly from daily wage labor and petty trading. More than 70% of the informal settlers have incomes below the poverty line. The Jamuna-Meghna River Erosion Mitigation Project (JMREMP) will provide a secure environment to beneficiaries in both PIRDP and MDIP areas by means of riverbank stabilization that will also protect the informal settlers. However, their biggest challenge remains economic survival in terms of livelihood sources and incomes. Their vulnerability has social and gender dimensions. Women shoulder more responsibilities for household sustenance and are disproportionately burdened by the hardships of erosion and poverty. The incidence of female-headed households on embankments is high: nearly twice the national average of 6%. As a result, the prevalence and magnitude of poverty is significantly higher than average among the informal squatters on the embankments. Social welfare programs run by the government and NGO(s) working in the area do not have targeted programs for erosion victims, particularly those living on the embankments, due to their floating nature. In the context of implementing JMREMP, good opportunities exist to help the poorest households by providing them with income generating opportunities on lands (such as, embankments and canal banks) under public, and water bodies (such as, canals, ponds, and lakes) under public, private or community ownerships. Opportunities also exist to sustain the benefits of water management infrastructures by seeking involvement of these households in routine O&M of them in return for their use of the above-mentioned land and water resources.

Objectives and Scope : The long-term goal of the project is to help improve both 'income' and 'social indicators' of 'poverty' of the 'most vulnerable' poor, who lost their lands and became displaced by river-erosion in the areas of MDIP and PIRDP. The specific objective of the project is to 'pilot' and establish a 'community-based' and 'self-help mechanism' aiming for Targeted Social Development (TSD) of the 'informal settlers' and 'other landless' who live in and around the flood embankments in the above subproject areas based on using land and water resources owned by BWDB under long term lease and microfinance generated and operated by the implementing agency/NGO. In return of an access to BWDB's land and water resources, the beneficiaries will be engaged in regular O&M of the physical infrastructures of the JMREMP within their reach. In light with the above goal and objective, the project encompasses three

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components, such as, (i) Livelihood Enhancement, (ii) Community Organization and Networking, and (iii) Project Management and Impact Assessments. Under Livelihood Enhancement component, a number of relevant subcomponents and activities are addressed, which are: (i) community-based routine maintenance of the flood embankment and other water management facilities through organizing and building capacities of the waterworks maintenance groups (WMGs), (ii) social forestry, site plantation, and nursery development through organizing and building capacities of the community forestry groups (CFGs), (iii) income generation of the target populations through developing capacity of the self-help groups (SHGs) and creating environment for them to undertake pond and open water fisheries, (iii) provision of microfinance facilities to sustain the above and several other household income generating activities towards achieving the long term livelihood enhancement of the target populations. The second component, on the other hand, would focus on social empowerment of the target populations through establishing and strengthening cohesive and community-level coordinating organizations and developing other facilities to coordinate disaster responses, infrastructure maintenance, and various other project activities to be implemented by the beneficiary-groups of the project. The third component would cover various subcomponents and activities in relation to ensuring smooth project management and conducting impact assessments of the project by highlighting, amongst others, replicability of the project in other similar cases elsewhere in Bangladesh in future. Considering the pilot nature and various contingencies at each subproject level, the project would basically follow a process approach in identifying concrete activities, scopes and their implementation methodologies at the field level over the project period. Further, given the time and resource constraints, actual implementation of the project would be in a phased manner in both subproject areas to cover first the river bank protection area followed by unprotected area along the embankment and inside the command area.

Cost Estimates : The total cost of the Project, including 12.57% of the GoB (to cover cost of office accommodation and utilities, counterpart staff and auditing), 20.10% of the implementing agency/NGO (to finance microfinance activity with the beneficiaries), 1.17% of the beneficiaries (imputed labor cost for tree plantation and excavation of fish ponds), and 66.16% of JFPR contributions, is estimated at $1,194,000 equivalent. No local taxes or duties shall be financed under the JFPR assistance.

Financing Plan

: ($ thousand) Source Foreign

ExchangeLocal Currency

Total Costs Percent

The Bank (JFPR) 790 - 790 66.16Government 000 150 150 12.57

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Implementing agencies/NGO( s) 000

240

240 20.10

Beneficiaries 000 014 014 1.17Total 790 404 1194 100.00

Terms and Condition of the fund

:

Grant assistance financed by the Japan Fund for Poverty Reduction.

Period of Utilization : Until End – December 2009.

Implementation Arrangements

: The Bangladesh Water Development Board (BWDB) will be the executing agency of the project to provide general policy guidance, overseeing general project activities, and facilitating coordination with other government agencies. The JFPR Project Implementation Unit (PIU), within Project Implementation Office (PMO) established for JMREMP implementation, will be headed by the Chief Resettlement and Environmental Management Officer of the Project Management Office for the JMREMP, who will act as the JFPR Project Manager. The PIU's operations and duties will be contracted to a locally engaged Senior Rural Sociologist (SRS) by the ADB. A central Steering Committee, chaired by the Secretary of the Ministry of Water Resources, will be formed with the representatives from BWDB and other relevant government departments, implementing agency/NGO and other pertinent partners. This committee will be the same as it has been formed for implementation of the JMREMP. The JFPR project manager will act as secretary of the steering committee. Similarly, at subproject level a JFPR implementation subcommittee will be established under the Joint Management Committee (JMC) established in each subproject under the JMREMP. The main implementing agency will be selected from the NGO(s) with demonstrated track record in the relevant fields, particularly in operating microfinance activity amongst the vulnerable poor.

Executing Agencies : BWDB.

Procurement : The procurement of Bank-financed goods under the Project will be carried out in accordance with the Bank's Guidelines for Procurement. Materials and equipment required by the Project will be procured on the basis of international shopping procedures and, if the procurement cost is less than $50,000, only in that case, through direct purchase procedures acceptable to the Bank.

Consulting Service : The Project provides for 8 person-months per year of national consultant services as a Project Implementation Consultant/Senior Rural Sociologist. Consultant will be funded from the JFPR grant and recruited directly by the Bank.

Estimated Project Completion Date

: 31 December 2009.

Project Benefits and Beneficiaries

: Expected direct benefits of the Project are (i) long-term employment opportunities provided to approximately 4,000 poor households, (ii) Information Resource Centers (IRCs) established

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and operated in a sustainable manner as effective centers for networking, training, skill development, and monitoring and evaluation, (iii) active participation of the existing village disaster preparedness committees (VDPCs) in village-level planning, monitoring, and coordination of the project activities, (iv) establishment of effective participatory processes to engage the landless poor in maintaining water infrastructure and undertaking livelihood activities using the infrastructure, which are replicated nationwide, (v) capacity development of the BWDB, relevant local governments, and NGO(s) to support participatory poverty reduction processes. TSD-JFPR project beneficiaries would include 4,000 poor and landless households, living below the poverty line, with an emphasis on female-headed households. Out of them, an estimated 2,000 households live along the JMREMP's 12 km protected riverbank, who have the priority over other 2,000 households living further along the riverbanks (partly not yet protected) and inside the command area. Again, of the 2,000 priority households, roughly 90% or 1,800 are in PIRDP and 200 in MDIP.

The beneficiaries will be organized into several specific functional groups (FGs) by the implementing NGO/microfinance institution for O&M of various infrastructures within their reach and other livelihood development activities supported by the microfinance. These groups will be directly involved in the design, planning, and implementation of the project through a participatory planning process that will result in the development of the community organization. During the project period, 75% targeted households will be organized in FGs and 60% of them will sustain in the long run based on self-sustaining networking system and institutional set up in the form of reconstituted and strengthened VDPCs; 90% households would have improved access to facilities and development supports and have increased access to employment and income generating activities on a sustainable basis. The Project will result in socio-economic empowerment of the most vulnerable river-erosion affected populations to better manage physical infrastructures and achieve socially equitable opportunities for them in the long run.

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MAP

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FUND PROCESSING HISTORY

Dates

a. Initial concept clearance by the Government April 2002

b. Project Design and Appraisal June 2002

c. Submission of JFPR paper to the Government of Japan August 2002

d. Approval from the Government of Japan November 2002

e. Interdepartmental Review August 20051

f. Board Circulation December 2005

g. ADB President (management) Approval December 2005

h. JFPR Fund Agreement Signing June 2006

i. Fund Effectiveness June 2006

j. Inception December 2006

k. First disbursement of JFPR Funds October 2006

Appliance with conditions for Withdrawals from the Fund Account:

i. Establishment of imprest account for DOI

ii. Establishment of imprest account for RMDC

iii. Appointment of Project Coordinator August 2006

iv. Financing agreements with participating MFIs. 20 February 2008

PROJECT START-UP ACTIVITIES Implementation Schedule

Critical Activities Projected Actual

1. Project Management and Coordination

(a) Establishment of Project Implementation Unit (PIU) September 2006

September 2006

(b) Establishment of a Project Steering Committee September 2006

September 2006

2. Appointment of Project Staff

(a) Project Coordinator September 2006

September 2006

(b) Other Staff of PIU September 2006

September 2006

7. Establishment of Imprest Accounts February 2008

April 2008

8. Submission of Withdrawal Application for Initial Deposit to the Imprest Accounts

February 2008

March 2008

9. Recruitment of Implementation Consultant (JFPR) August 2006

10 Engagement of Implementing Agency/ies (MFI/NGO) December 20 February 1 Processing was deferred due to a change in the project design and reconciliation with the progress of the counterpart loan (Loan 1941-BAN: Jamuna-Meghna River Erosion Mitigation Project). The revised project design was approved by the Government of Japan in September 2005.

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Implementation Schedule

Critical Activities Projected Actual 2007 2007

11 Benefit Monitoring and Evaluation established at 2 levels

(a) Central level

(b) Project level

(c) Performance monitoring and evaluation at the field level

12 Preparation of annual report March 2009

13 Submission of the First Progress Report May 2008

14 Training of Functional Groups April 2008

15 In-country Training for beneficiaries and concerned staff

(a) Placement of participants in regional-country training venues

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I. PROJECT DESCRIPTION 1. An Asian Development Bank (ADB) Loan No.1941-BAN: Jamuna-Meghna River Erosion Mitigation Project (JMREMP), consisting of Pabna Irrigation and Rural Development Project (PIRDP) and Meghna-Dhonagoda Irrigation Project (MDIP), will provide a secure environment to the beneficiaries in the above subproject areas. It will be done by means of riverbank stabilization that will also protect the informal settlers on and around the flood embankments. However, the biggest challenge of these settlers remains economic survival in terms of livelihood sources and incomes. Their vulnerability has social and gender dimensions. Women shoulder more responsibilities for household sustenance and are disproportionately burdened by the hardships of erosion and poverty. The incidence of female-headed households on embankments is high: nearly twice the national average of 6%. As a result, the prevalence and magnitude of poverty is significantly higher than average among the informal squatters on the embankments. Social welfare programs run by the government and NGO(s) working in the area do not have targeted programs for erosion victims, particularly those living on the embankments, due to their floating nature. In the context of implementing JMREMP, good opportunities exist to help the poorest households by providing them with income-generating opportunities on lands (such as, embankments and canal banks) under public, and water bodies (such as, canals and ponds ) under public, private or community ownerships. Opportunities also exist to sustain the benefits of water management infrastructures by seeking involvement of these households in routine O&M of them in return for their use of the above-mentioned land and water resources. The objective of the JFPR project is targeted poverty reduction of the extreme poor, including those affected by river-erosion and others in the above areas. It will be achieved by (i) promoting income-generating activities using water management facilities and microfinance support; and (ii) establishing cohesive organization, leadership, and institutional capacity of the emerging community organizations and self-help groups (SHGs). This will, in turn, promote self-reliant sustainable socioeconomic development of the targeted beneficiaries (See Appendix 1 for the Project Framework), especially women. Assistance is needed to establish and manage effective procedures through appropriate institutional, social, technical, and financial supports. 2. The innovation in JFPR support lies in optimizing poverty reduction impacts of the JMREMP by enhancing the livelihoods of the erosion-displaced and others among the poorest people in the project areas. They are not normally reached by the existing programs because of their highly unstable social status. The organizations and capacities of these groups will also be strengthened so that they can participate effectively in the local decision-making process for further development of the PIRDP and MDIP areas. Moreover, the JFPR Project will enhance the performance of water management infrastructure through improved O&M supported by the same people. Implementation of the Project will establish effective procedures and arrangements for strengthening poverty reduction impacts within the water resources interventions while enhancing their sustainability, thereby, contributing to the capacity development of BWDB and local government institutions to support the process in an inclusive manner. Successful implementation of the Project will serve as a model for effective livelihood enhancement of those affected by river erosion and others among the poorest with improved sustainability of water management facilities, which could be replicated in similar schemes throughout Bangladesh. A. Project Area and Location 3. The Project consists of two subproject areas: Pabna Irrigation and Rural Development Project (PIRDP) situated in Pabna district and Meghna Dhonagoda Irrigation Project (MDIP) in Chandpur district under the main JMREMP. The latter focuses on riverbank protection to protect the flood embankments and institutional development for self-sustaining community based irrigation water management by the command area populations. JFPR is a small separate component of the main

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JMREMP to address targeted social development (TSD) of the squatter households in both subproject areas in a phased manner. Thus, the riverbank protection areas along the 12 km long embankment (7 km in PIRDP and 5 km in MDIP) threatened by river erosion will be covered first followed by the areas beyond in the unprotected embankment sections, and villages inside the command area. Out of the total 4,000 targeted households, 2,000 have the priority, of which an estimated 1,800 live in the PIRDP and only 200 in the MDIP. The remaining 2,000 households live beyond the protective river bank and inside the command areas, as estimated. Further, considering a huge variation in the beneficiary-coverage and consequent variation in budget allocations in the subproject areas as well as time constraint, JFPR Project should primarily focus on PIRDP compared to MDIP. B. Objectives

1. Objectives 4. The overall objective of the JFPR Project is to help reduce poverty (in terms of incomes and other social indictors) of the most vulnerable poor who were displaced by river erosion, became landless, and settled in riverine fringe areas covered by the PIRDP and MDIP. A total of 4,000 households, living below the poverty-line, are expected to benefit directly from the project via long term employment opportunities in the water management facilities available in the subproject areas, and also in various other income generating activities based on appropriate skills enhancement and microfinance supports by the NGO.

2. Specific Objectives 5. Its specific objective is to pilot and establish a community-based, self-help mechanism of social development for poor informal settlers living on and around the flood embankments and other landless people in the PIRDP and MDIP areas. Aiming to core poverty reduction with a primary focus on areas along the riverbank, the project will (i) create permanent employment opportunities, namely, nursery development and social forestry, fish culture, livestock development etc, based on initial promotional grants and microfinance support to effectively utilize existing water management facilities (lands and water bodies) and acquired skills; and (ii) develop the organizational, institutional, and leadership capacities of the poor through community mobilization and organization, networking, and by establishing self-managed information and resource centers (IRCs) in the subproject areas. In return of these benefits, the beneficiaries will be engaged in the operation and maintenance (O&M) of water management facilities, thereby, contributing to their long-term sustainability. C. Scope 6. To achieve the above objectives, the scope of the Project will include the following three main components, under each of which a number pertinent sub-components will be covered. A. Livelihood enhancement through permanent employment.

A1. Community-based routine maintenance of embankments and other water management facilities.

A2. Social forestry, site plantation, and nursery development. A3 Income generation using existing water management facilities.

A4 Other income generating activities.

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B. Community organization and networking for the poor.

B1. Mobilization, awareness – creation, and organization. B2. Information and resource centers (IRCs).

C. Project management and poverty impact assessment.

C1. Consulting services. C2. Office facilities. C3. NGO administration. C4. Travel, accommodation and per diem. C5. Reviews, reporting, and knowledge dissemination.

7. The Project will last for a duration ending December 2009 and will cover two subproject areas. It will focus on meeting the specific performance indicators by (i) having an effective poverty reduction approach, (ii) achieving empowerment of poor and vulnerable poor, (iii) ensuring long-term employment and income opportunities for approximately 4,000 households.

8. The Project structure/arrangements are given in Appendix 2. Detailed descriptions of the Project sub-components under the above A & B main components are given below. As regards component C, description is given for the component itself by considering individual sub-components altogether.

A1. Community-based routine maintenance of embankments and other water management facilities.

9. The poor - both men and women - will be organized into groups for community-based routine O&M work for embankments, canals, and other water management facilities inside the command areas. To this end, the implementing agency/NGO will organize groups in consultation with existing Village Disaster Preparedness Committees (VDPCs), provide the groups with the training needed to carry out the maintenance work, and equip them with the necessary tools and materials. BWDB will be responsible for arranging appropriate provision of permanent benefits, e.g., leasing of BWDB land, water bodies and engaging the poor in income-generating activities in A2-A4.

A2. Social forestry, site plantation, and nursery development. 10. By means of a self-help approach, the JFPR project will promote the planting of fruit trees, fodder trees, and shrubs on embankment slopes and canal banks, and BWDB will lease land for this purpose. Priority will be given to destitute women. The development of nurseries that will produce income within weeks will be encouraged. Skills training will be provided by the implementing agencies/NGO(s) following the design and approach adopted by other similar projects.

A3. Income generation using existing water management facilities.

11. The MDIP and PIRDP areas have water bodies, such as, irrigation and drainage canals and ponds within the flood embankments. The JFPR Project will also take the opportunity to expand fish culture and related activities with the targeted poor by engaging experienced NGO(s) to undertake

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the necessary re-excavation of ponds owned by communities or private beneficiaries and to provide skills training for fish culture activities.

A4. Other income generating activities. 12. The JFPR will support other types of income-generating activities through skills and capacity development training, giving high priority to female-headed households. Viable activities will include livestock development for milk and meat production; poultry including duck raising; horticulture (vegetation), and home-based micro-industries, such as, bamboo crafts, weaving, jute goods etc. The skills training will be provided under JFPR project, whist the implementing agencies/NGO(s) will make provision for microfinance support from established facilities (such as, Palli Karma Shahayak Foundation) and/or from own and other sources together with other technical and extension services for the beneficiaries. These are essential preconditions to ensure implementation of income-generating activities from A2-A4. The microfinance will be provided after the beneficiaries have gained sufficient eligibility through group formation, savings promotion, and skills training, and, if required, initial inputs for demonstration purposes will also be provided.

B1. Mobilization, awareness – creation, and organization. 13. To empower the erosion-affected population and help make them self-reliant, this subcomponent will establish and strengthen cohesive, community-level coordinating organizations and functional groups (FGs). FGs will include those formed under the JFPR Project according to the activities they will be engaged in, as well as existing ones, such as, those formed for disaster preparedness. The existing VDPCs will be strengthened and, if necessary, reconstituted to act as coordinating organizations. They will coordinate disaster responses, infrastructure maintenance, and other JFPR Project activities to be implemented by the FGs, and will also represent the targeted groups in the joint management committees (JMCs) in the PIRDP and MDIP areas.

B2. Information and resource centers (IRCs). 14. The IRCs will facilitate information sharing; community-wide campaigns on a variety of social, health, and other relevant issues and topics; and training. This will strengthen the voice of the poor and women and will enhance their ability to network with other groups. The venue will provide the beneficiaries to have access to newspapers, income-generation related booklets, and telephone connections to obtain flood level or marketing information. They will be constructed on land owned by BWDB. Decisions about the number of IRCs and their design, facilities, ownership, maintenance, resource mobilization, and implementing agency will be taken primarily by VDPCs with the support of FG representatives, in consultation with implementing agency/NGO, BWDB and local government institutions. The quantity and locations of IRCs should be convenient and useful for all villages and vulnerable groups, and their management should be truly participatory and responsive to the needs of the FGs to avert unwanted competition and monopolization among villages. Further, IRCs need not necessarily be new buildings that take considerable time to build. They might be located in or attached to existing schools, community buildings, or offices of well-respected NGO(s) in the area. Funds will be available from the project for construction or improvement and furniture, and, if needed, for information materials. 15. The management capacities of the IRCs will be developed by building up the capabilities of beneficiary representatives during the project period. Care should be taken in the whole process to avoid the risk of domination of the centers by the non-poor. Direct beneficiaries of the IRCs, including those covered by the JFPR Project, will contribute an annual O&M fee to ensure their sustainability.

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C1 – C5. Project management and poverty impact assessment. 16. This component will provide project management support to the JFPR Project Executing Agency - the Bangladesh Water Development Board (BWDB). The Asian Development Bank (ADB) will engage locally a Senior Rural Sociologist (SRS), as implementation consultant, for overall JFPR Project management with the support of BWDB. The SRS will be supported by the international and domestic consultant sociologists involved with the JMREMP, and qualified NGO will be contracted as implementing agency for the JFPR activities. A poverty impact assessment will be conducted by an independent institution or agency using a baseline established at the start of the JFPR Project. The baseline data/information will be regularly reviewed during the implementation phase by the implementing agency/NGO and SRS. This component will also support the dissemination of knowledge gained through the JFPR Project by producing publications about its approach, results, and lessons, and by organizing seminars.

D. Implementation planning issues on individual JFPR components.

1. Basic data (provisional)

17. Land and water body inventory: Provisional data on land and water bodies owned by BWDB and private owners, which can be used to ensure the above employment and income opportunities by the beneficiaries, are being collected in specific areas for each subproject area. The work will be finished soon to ascertain the actual scenario in providing lease by the BWDB of those available resources in specific locations to certain number of potential beneficiaries for permanent employment opportunities. 18. Categories of beneficiary-households by locations: These are provisionally depicted in table-1 to identify the coverage of the targeted households in separate locations in the subproject areas.

Table–1: Household categories by locations Sub-projects Households by location

PIRDP MDIP Total

1. Squatter households along the protected river bank. 1,800 200 2,000

2. Squatter beyond the protected river bank. 1,200 100 1,300

4. Poor inside the command area. 600 100 700 Total 3,600 400 4,000

19. Categories of beneficiary-households by access to public assets: The data are provided in table - 2 to know the number of households who can be potentially involved in routine O&M of the physical facilities, including the embankments, in the subject project areas in return of their use of public assets (owned by BWDB) for IGAs.

Table–2: Household categories* by access Households in sub-

projects Households by access to public assets PIRDP MDIP

Total

1. Households using public assets along the river bank protection and beyond areas. 1,000 100 1,100

2. Households not using public assets along the river bank protection and beyond areas. 2,000 200 2,200

3. Households using public assets inside the 100 25 125

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command area. 4. Households not using public assets inside the

command area. 500 75 575

Total 3,600 400 4,000* More than 50% households should consist of female-headed and destitute women. 20. Distribution of households by IGAs: This distribution is given in the following table-3 including those stipulated in grant proposal and others based on preliminary consultation with the prospective beneficiaries, NGOs as well as with the PIU/SMO staff. The basic assumption behind this distribution is limited availability of lands and water bodies under BWDB in both subproject areas in the vicinity of the households' present locations.

Table–3: Household categories by involvement in IGAs Sub-projects area Involvement of households by

IGAs PIRDP MDIP Total

1. Social forestry 312 52 3642. Nursery development 278 35 3133. Fisheries (public land) 139 Nil 1394. Fisheries (private land) 35 Nil 35

Sub-Total 764 87 851

5. Other IGAs

a. Livestock b. Horticulture c. Micro/cottage industry d. Tailoring e. Petty trading

139208347104

2,038

35 17 69 35

157

174225416139

2,195

Sub-Total 2,836 313 3,149Total 3,600 400 4,000

21. The above distribution of households by IGAs in the subproject areas has been done on two basic assumptions including (1) beneficiaries are linked with microfinance facility, either of their own or established microfinance facilities (PKSF), for viable income and employment opportunities in the long run, and (2) duration of the project is up to the end of 2009. In relation to the first assumption microfinance should ideally cover all 4,000 targeted beneficiaries, whereby, an estimated 55% of the beneficiaries should be involved in all kinds of petty trading to be independently determined by individual borrowers.

2. Training

22. Skills and capacity development training for the targeted beneficiaries is instrumental to achieve both short and long term objectives of the JFPR project. To this end, implementing agency/NGO will organize the beneficiaries into several FGs or SHGs to develop their skills and capacities for (i) undertaking O&M of embankments and other water management facilities, social forestry, site plantation and nursery development, fish culture; and for (ii) microfinance management, including savings mobilization and fund utilization. The latter will be undertaken from the outset to make the FGs/SHGs eligible for integration into the mainstream microfinance program, thereby, enabling them

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to undertake the above and various other farm/non-farm IGAs, as outlined in Table-3, in the short as well as long run. 23. In addition to the above skills and capacity development training, awareness raising and capacity development in organizational management of the FGs/SHGs should also be crucial part of training activities so that beneficiaries have the capacity to develop their own self-sustainable community-based organizations (CBOs) at the grass roots level as well as effectively build networking with local NGOs and institutions (i.e. UPs, Mosque Committees, local groups and youth clubs, Upazilla Nirbahi Officer, block supervisors, health workers, union government line agencies, WMGs in the command area, JMREMP contractors etc.) delivering public goods and services. The emerging self-sustaining community-based organizations will be expected to operate their own microfinance activities based on self-help credit groups (so called savings-credit program) or established facilities in the long run. 24. To cover the total number of 4,000 beneficiaries during the project period of 24 months for various need-based training programs, more than 165 households should be covered each month in both sub-project areas. Assuming minimum 15 beneficiaries in each training group, every month training programs for pre-approved modules should be conducted in more than 11 batches. 25. The training will be conducted based on participatory learning approach by skilled resource persons from within or outside the implementing agency/NGO on case-by-case. In case of outsourcing, appropriate arrangement should be there between the implementing agency/NGO and the training implementing agency/individuals to ensure good management and quality training benefiting the target groups. Any arrangements with regard to implementing the training programs should be done in consultation with and approval of the PMO and SRS.

3. JFPR Project Management 26. The BWDB will extend project management support, including rental and office staff, to the central JFPR Project Implementation Unit (PIU), operated under JMREMP Project Management Office (PMO), and Subproject Management Offices (SMOs), operated at PIRDP and MDIP areas. On the other hand, JFPR-Project will provide office equipment and supplies for administration of both PIU and SMOs (including motorcycles for SMOs). Administration of the Project will be assisted by the provision of Project Manager, engineers, accountant and office assistant to the PIU. In addition, a local JFPR implementation consultant (IC) services, contracted by the ADB, will be provided at PIU to assist in trouble shooting, the coordination and management of the Project, and the effective integration of training and Project activities.

4. Benefit Monitoring and Evaluation 27. Regular and effective benefit monitoring and evaluation systems will be institutionalized through SMOs. Field data collected by implementing agency/NGO in collaboration with SMOs will be collated and analyzed by the implementing agency/NGO staff under the guidance of the IC. All data will be stored at PIU/SMOs. A special care will be taken to ensure that most deserving and poor members of FGs benefit from this project.

E. Special Features

i. Process Approach

28. The Project is designed to be 'demand driven' based on highly participatory planning process that will enable the beneficiaries and other actors in the Project to make the decisions on what they need

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for the future and how they want and consider it best to get there. This will ensure that there is commitment and ownership of the planned activities and that these activities are within the capacity and capability of those responsible for their implementation. 29. Although some lessons can be learned from other programs targeting the poor, the situation of embankment dwellers and erosion victims is too unique to apply these lessons indiscriminately in this Project. Besides, very preliminary need assessments and consultations were conducted for different proposed interventions of the project. In this context, the only valid approach is a cautious process approach, in which feasibility studies and more concrete consultations following the participatory approach should precede the start of any specific interventions during the project period. Although the project is indicative in nature, which is subject to change according to the decisions of the participatory process, it should, however, be implemented within the upper cost limit set out by the documents. It is to be noted that the flexible approach to Project design, makes it even more essential than normal to maintain a rigorous, accurate, continuous and effective monitoring and evaluation system throughout the Project period, especially on financial matters. These requirements were taken into account in preparing the details of the management, monitoring and evaluation systems of the Project and in the assignments of staff and consultant. All proposals for implementation must be well documented, and subject to review and agreement, as outlined in the guidelines.

ii. Poverty Alleviation

30. The Project is specifically designed to focus on target groups, who were identified following participatory approach and initial social assessment studies/surveys in each subproject areas in order to get them involved in the Project activities. The approaches and proposed activities are, therefore, biased towards assisting the river-erosion affected landless and asset-less poor squatter households living along the embankment and inside the command area in two subproject areas. The Project is expected to impact 4,000 poor households with an emphasis on female-headed households. 31. The Project is expected to have a direct and positive effect on creating permanent employment and income opportunities for the above-mentioned households based on microfinance support in the long run. A typical beneficiary household consists of 5 members, on average.

iii. Women in Development 32. As mentioned, the Project in selecting the beneficiaries will emphasize on destitute women and female-headed households. It is expected to have a positive social impact on them by improving their accessibility to various permanent employment and income opportunities opened up by the Project. While the women will be involved in O&M and other activities using the water management resources of the BWDB, other avenues for them to get involved in farm and non-farm activities through operation of own savings-credit groups will also be created by the project. Women will be benefited substantially by the organization of specific women's groups as well as through their joint membership in several FGs. The Project will assure that at least 50 percent of the participants in all activities are women. The participatory approach will ensure the involvement of women in the planning and implementation of the development activities and decision-making process. Women will also benefit from social and economic empowerment through functions of the community organization and networking within VDPCs and management of IRCs, and more effective credit delivery for home-based micro-enterprises and processing activities.

iv. Environmental Issues

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33. The Project shall be implemented following applicable environmental laws and regulations and the Bank's Environmental Guidelines for Selected Agricultural and Natural Resources Development Projects. Appropriate measures, acceptable to the Bank shall be adopted by the Executing Agency to minimize any negative impact the Project activities may have on the environment. Specifically, such activities include: (i) social forestry, site plantation, and nursery development; (ii) income generation using existing water management facilities; and (iii) other income generating activities by independent choice of the microfinance borrowers, (iv) construction of IRCs. 34. The participatory planning process will create greater awareness of environmental issues and lead to more sustainable community efforts to reduce environmental degradation. Overall, it is considered that the Project will have a positive impact on the environment.

II. COST ESTIMATES AND FINANCING PLAN

A. Detailed Cost Estimates 35. The total cost of the Project is estimated at $1,194,000 equivalent. ADB will administer $790,000 equivalent to be financed on a grant basis by the Government of Japan. The remainder will be shared by the Government of Bangladesh (GoB), implementing agency/NGO and the beneficiaries. Thus, GoB's contribution will be $150,000 equivalent, from its own resources to cover office accommodation and operation and maintenance, counterpart staff support expenses at the central and subproject levels, and audit; implementing agencies/NGO(s)'s $240,000 equivalent to cover microfinance; and beneficiaries' $14,000 equivalent as imputed labor cost for tree plantation for embankments and canals, and fishponds excavation (see cost estimation and financing plan in Appendix-3).

B. Financing Plan 36. It is approved that the Bank provides a grant assistance of $790,000 equivalent from the JFPR Funds to finance 66% percent of the total Project cost. The proceeds of the grants will finance skills and capacity development training of the beneficiaries, basic tools and equipment for O&M; seeds, saplings etc. for nurseries; initial inputs for fisher lings, hand tools etc. for fish culture; construction of IRCs, benefit monitoring and evaluation, workshop and seminars, consulting services, employment of implementing agency/NGO, transport and office equipment and certain recurrent costs. 37. An estimated 12.56 percent ($150,000) of the grant money will be channeled by the GoB to BWDB through its annual budgetary appropriations to finance various components. Approximately $240,000 (20.10%) allocated for provision of microfinance to be channeled through implementing agency/NGO and $14,000 (1.17%) through beneficiaries, measured by imputed labor costs. The remaining 66.17 will be directly administered by the ADB.

III. IMPLEMENTATION ARRANGEMENTS

A. Executing and Implementing Agencies 38. The Executing Agency (EA): The Bangladesh Water Development Board (BWDB) will be executing agency (EA) for the Japan Fund Poverty Reduction (JFPR) Project. It will have the overall responsibility to provide general policy guidance, oversee general project activities, and facilitate coordination with other government agencies. The JFPR Project Implementation Unit (PIU) within BWDB will be headed by the chief resettlement and environmental management officer of the Project Management Office (PMO) for the Jamuna Meghna River Erosion Mitigation Project (JMREMP), who

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will act as the JFPR Project Manager. The PIU's operations and duties will be contracted to a locally engaged Senior Rural Sociologist (SRS) to be engaged by the Asian Development Bank (ADB), and to independent, competent non-government organization (NGO), to be selected as implementing agency/NGO, with the assistance of the SRS and in consultation with ADB. 39. At the central level, a Steering Committee, chaired by the secretary of the Ministry of Water Resources, will be formed that-comprises representatives from BWDB and other relevant government departments responsible for forestry, fisheries, agricultural extension, cooperatives, and public health engineering; participating NGO; and other pertinent partners. The JFPR project manager will act as secretary of the Steering Committee that will approve annual work plans and budgets, review progress reports and perform overall progress monitoring, and provide guidance for implementation to the PIU. An ADB representative may participate in the Steering Committee as an observer. 40. At each sub-project level, a JFPR implementation subcommittee (JISC) will be established under the Joint Management Committee (JMC), established in each subproject under the JMREMP. The subcommittee will be chaired by the JMC Chairperson and will consist of field representatives of the concerned departments, the local government bodies, the community organizations of the erosion-affected poor to be established under the JFPR Project, and the selected NGO. The subcommittee will meet regularly to review and approve implementation plans, coordinate the delivery of specific services by the concerned departments, and resolve disputes about project activities. 41. Overall project management and coordination will be carried out by the PIU and will consist of project administration, financial disbursements, progress monitoring (both technical and financial), networking, and coordination among the various implementing agencies and stakeholders. It will also include the coordination and provision of guidance for the independent poverty impact assessment. The PIU will manage a project imprest account through which it will make financial disbursements directly to the implementing agency/NGO and other implementing agencies to be contracted to implement the project components, subcomponents, and activities. 42. The implementing agency (IA): The main implementing agency for the JFPR project activities will be selected from NGO(s) that has partnership with the Palli Karma-Shahayak Foundation (PKSF), satisfactory track records, and experience with the relevant JFPR project activities. The IA should have access to microfinance, operational strength in the subproject areas, and adequate technical and community development staff resources, to be detailed out by the staff consultant engaged by ADB and agreed by ADB. The JFPR implementation consultant (Senior Rural Sociologist) will also help select the NGO. An independent research institution or organization will be contracted for the poverty impact assessment. The selected IA will (i) mobilize microfinance based various income generation activities, including micro-enterprise, in the selected Sub-project areas by forming microfinance groups of the targeted beneficiaries; (ii) provide social mobilization, awareness-raising programs, skill and capacity development training for the poor women and other target groups for various planned activities of the project under different components and sub-components; (iii) provide and coordinate technical/material support for capacity building of functional groups of the beneficiaries in WMGs, CFGs and CBOs; (iv) ensure proper implementation of participatory rural appraisal and monitoring; (v) review project implementation activities, prepare periodic project monitoring (monthly) and progress (quarterly) reports; (vi) assist organization of workshops and seminars for knowledge dissemination; and (vii) assist administration of poverty impact assessment study; (viii) assist SMOs to comply fully with BWDB regulatory requirements, and the auditing requirements of BWDB and the JFPR Project. The general terms of reference for the PIU and IA are in Appendix 4.

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43. The IA will be selected jointly by PIU and ADB based on the proposals submitted by the short listed MFls/NGO(s). ADB and the EA (BWDB) may identify some capable MFls/NGO(s) in concerned areas and include as IAs. A reputed national/local MFI/NGO meeting the specified criteria will be engaged as IA by the PIU in coordination with ADB to work under agreement with the PIU to conduct first multipurpose baseline surveys in two subproject areas and, based on findings of the surveys, prepare JFPR implementation plans fur each subproject area as well as implement other activities, as specified in the above ToR. The eligibility criteria for MFls/NGO(s) are in Appendix 5. 44. While conducting the surveys, each sub-project management office (SMO) at PIRDP and MDIP will be reoriented towards preparing a routine operation and maintenance (O&M) plans for embankment, and main, secondary and tertiary irrigation and drainage canals. Similarly, land/water body allocation plans for engagement of JFPR beneficiaries will also be undertaken. If necessary, O&M plans will be further revised to make them more concrete, during preparation of the detailed sub-project implementation plans, following baseline surveys. The same would also be true for other major livelihood components, subcomponent and activities proposed for the sub-project areas. 45. At project inception, the EA will organize sub-project level consultation meetings in PIRDP and MDIP, inviting representatives of relevant local government institutions, government line department/agencies, local elected bodies, NGO(s), CBOs and other stakeholders, to assess the current social conditions and develop specific work plans for JFPR. Women's needs will be particularly explored and identified in these meetings. 46. The content and planning of the multifaceted training program will have to have inputs from the beneficiaries. The SMOs, JFPR implementation subcommittee members as well as the potential borrowers will be consulted before credit conditions and norms are finalized by the NGO/MFI (IA). In each sub-project, work will start with mass awareness building and sensitization of potential beneficiaries through awareness campaign and community mobilization. Community demands for credits, proposed activities (O&M, social forestry, site plantation, nursery development and fish culture etc.) and developing micro-enterprises for women and disadvantaged groups are to be stimulated through self-assessment or participatory process of the beneficiaries themselves. On final selection of the various functional groups, implementing agency/NGO will prepare a sub-project development plan separately for PIRDP and MDIP on the requisition of the members. A model of such Development Plan is suggested in Appendix 6. 47. The item of micro-credit activities will have to be assessed during start up activities including orientation campaign and community mobilization which may be different for different locations. The communities will provide feedback on the benefit flow through participatory evaluation. The engaged IA/NGO/MFI being the main implementer will play a lead role in community mobilization, skills and capacity development training, institutional development and networking of the beneficiaries, credit operation, and impact evaluation. A number of eligible activities should be undertaken in these areas in accordance with the development plan under overall supervision of PIU.

B. Implementation Procedures 48. For JFPR project implementation, each subproject management office (SMO) that is implementing the JMREMP will prepare a routine operation and maintenance (O&M) plan for each group of erosion-affected and other vulnerable people. The plan will include work on embankments and main, secondary and tertiary irrigation and drainage canals. At the same time, in collaboration with the selected NGO, each SMO will undertake an information campaign and update the inventory of potential beneficiaries based on the inventory prepared during appraisal of the JMREMP. On the basis of these plans, the PIU will prepare a JFPR project implementation plan with the assistance of

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the SMOs, the JFPR implementation consultant, and the implementing agencies/NGO to outline the specific activities, implementation schedules, and potential beneficiaries of the individual JFPR project components. 49. The activities under employment and income generation component will start with the formation of the JFPR beneficiary groups for routine O&M and various income-generating activities using the water management facilities. For O&M services, groups of laborers may also be required to form from relevant labor contracting societies, embankment maintenance groups, and Village Disaster Preparedness Committees (VDPCs) with the assistance of the selected NGO. Each of these groups will be provided with the training for routine O&M (mainly labor-intensive earthworks) by SMO staff and the IA. The JFPR Project will provide the initial necessary tools and materials for the purpose. Individual groups will also enter into contracts with the SMOs in relation to their routine O&M responsibilities and specific programs and schedules. 50. After the formation of the groups and routine O&M training, support for income generating activities (IGAs) will be provided by the JFPR Project. The IGAs will include (i) social forestry activities along flood embankments and canal banks;1 (ii) fish culture activities in BWDB's borrow pits, irrigation and drainage canals, and private ponds; and (iii) other income-generating activities, such as, poultry (including duck raising) and other livestock activities, home gardens, and home-based micro-industries, such as, paddy husking and bamboo crafts and weavings etc. For these activities, the selected NGO will undertake group-based training with support from relevant line departments and private sector specialists and will provide microfinance to individual group members to undertake these IGAs from the existing microfinance facilities, to which they have access, or from own sources. Given the vulnerability of the targeted beneficiaries, microfinance will be provided after they have gained sufficient eligibility through group formation, savings promotion, and skills training, all of which will be supported under the JFPR Project. 51. To implement community organization and networking, the beneficiaries, with the help of the implementing agency/NGO, will form cohesive community organizations of erosion affected and other vulnerable poor people in each subproject area, adhering to the Cooperatives Societies Act and its associated rules or any other appropriate framework acceptable to ADB. Groups will be based on specific functions, and consultative bodies will be engaged at the village level. The latter will be the already existing VDPCs, which consist of respected village leaders and, if needed, will be augmented with the representatives of the FGs. The heads of the VDPCs will meet when coordination is needed. They will decide, in consultation with the JMC, who will participate as members in the JMC. Key members will also participate in the JISC under the JMC. The selected NGO and IC will provide and arrange necessary training to strengthen the administrative, financial, and managerial capacities of the VDPCs and functional groups, including, for the latter, training for the microfinance activities using the cooperative shares and savings collected. To support the activities of the community organizations, including the VDPCs and functional groups, information and resource centers (IRCs) will be established for erosion-affected and other poor people in the subproject areas.

C. Re-lending and On-lending Arrangements for Microfinance Activities 52. JFPR project does not have a provision to generate a credit fund from its own source for lending purposes to small borrowers of the targeted beneficiaries. It is, therefore, expected that the IA will create that fund with a link to the established facilities, such as, Palli Karma Shahayak Foundation

1 Specific sections of these facilities will be assigned to the beneficiary groups to plant trees, fodder trees, and shrubs, provided through the JFPR Project, which the groups will care for. The mature trees and their products will be shared by the beneficiary groups and the subproject

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(PKSF). In absence of it, the IA should either draw upon their own source or any other external financiers providing grant or soft loan for re-Iending to the targeted groups. To undertake normal microfinance program based on revolving credit fund (RCF), PKSF re-Iends to its partners [NGO(s)] at around 4.5% and the NGO(s) on-lend to the ultimate target groups members at around 15%. A government-owned commercial bank called Bank of Small Industries & Commerce (BASIC) specializes in relending business for targeted activities, including activities promoted by the NGO(s), at a softer rate of around 10% than, if available, at any traditional commercial banks. The NGO(s) use this loan at the above rate of 15% to the targeted borrowers. In case of own or other sources, if not financed through grant, the re-Iending and on-lending rates would be around the above. The repayment systems by the borrowers in the revolving microfinance program, as institutionalized by the Grameen Bank, are more or less the same, across the board. In case of BASIC yearly repayment system can be applied. Loan applications and repayment procedures will vary, which will be prescribed during an agreement with any of the above-mentioned sources. 53. In case of cooperative credit operations by the targeted beneficiaries, rules and procedures should be developed for individual cooperatives of the beneficiaries in consultations with the local government cooperative departments. 54. The implementing agency/NGO, functioning as established MFls, will provide microfinance to the identified borrower groups using the re-Iend fund from the Palli Karma Shahayak Foundation (PKSF) or own or other sources. 55. In addition, capacity development training in microfinance management for the beneficiaries should also be imparted in several groups together with fulfilling other eligibilities (savings mobilization and others by individuals) to access microfinance from established facilities and other sources.

D. Linkages to the ADB-Financed Project

56. The ADB's country strategy has given the priority to improve water resources management of Bangladesh within the broader framework of the country's national strategy for economic growth, poverty reduction, and social development (March 2003). Accordingly, the main JMREMP project was approved under a separate ADB's loan agreement. The JFPR project, on the other hand, will be implemented, as a separate component, to accelerate targeted social development in two subproject areas covered by the JMREMP. It is anticipated that the impact of JFPR Project on poverty will be significantly high.

E. Sustainability 57. The sustainability of the JFPR Project within the JMREMP is envisaged through empowering and strengthening the most vulnerable groups of beneficiaries, who will be represented in the Joint Management Committees (JMCS)2. This will, in turn, develop their capacity to operate in representative forums. It is anticipated that a viable institutional base also will be created for delivery of microfinance to the targeted beneficiaries to support their long-term employment and income opportunities. 2 The JMREMP emphasizes sustainability of the PIRDP and MDIP by establishing and operating JMCs in each area, which consist of the representatives of line departments; local government institutions; and community organizations, including water management associations (WMAs) and organizations (WMOs) of the erosion affected poor. The JMCs decide on the strategic delivery of public services within the project area while bearing O&M responsibilities by mobilizing public resources and contributions by the beneficiaries.

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F. NGO and Community Involvement 58. Community involvement is critical to the success of the JFPR Project. The targeted beneficiaries within the communities will be consulted at every stage of project implementation and they will be at the center of the participatory evaluation of the project impact. The content and plans of the multifaceted training programs will need inputs from the beneficiaries. The credit group members will be consulted before credit conditions and norms are finalized. The JFPR Project will start with awareness building and sensitization of potential beneficiaries through community mobilization. Beneficiaries' demand for credit and other facilities would be stimulated through self-assessment of the beneficiaries themselves. The direct beneficiaries as well as other members of the community will provide feedback to the flow of benefits through participatory evaluation. The MFI/NGO will play a lead role in community mobilization, credit operation, training, and impact evaluation.

G. Implementation Schedule 59. The Project will be implemented in 2 sub-project areas in two main phases over a period closing end of 2009 in the south-western and south-eastern regions of Bangladesh. In the first phase (preparatory phase), the Project management arrangements will be established and implementing agency will be recruited to start project activities. In the second phase (implementation phase) project activities will be started to cover the components and subcomponents, as outlined above. The indicative implementation schedule is given in Appendix 7 and corresponding project personnel deployment in Appendix 7a.

IV. FUND FLOW, PROCUREMENT, CONSULTING SERVICES, TRAINING AND FUND DISBURSEMENT

A. Fund Flow

60. JFPR funds will provide support for (i) skills and capacity development training and material inputs for the targeted beneficiaries; (ii) community organization and networking; (iii) project management and impact assessment (including consulting services, NGO(s)' administration, reporting etc). The PIU will carry out overall Project coordination and management, and disburse the necessary funds for implementing field-level activities except payment for consulting services. The sub-project coordinators at SMOs would be responsible for monitoring, reporting, and advising the PIU directly on the quality of services by MFI/NGO and other service providers. The PIU will, on the other hand, do the same with the assistance of the IC, for which necessary funds will be allocated by the PIU, as per the budget line item in Appendix 3.

B. Procurement 61. The procurement of bank-financed goods and works under the Project will be carried out in accordance with the ADB Procurement Guidelines (February 2007). Small works, materials and equipment required by the Project will be procured on the basis of national competitive bidding for contracts above $100,000, and through shopping for contracts up to $100,000. Items below $10,000 may be purchased by direct contracting with suppliers provided ADB is satisfied that the price paid is reasonable.

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C. Consulting Services 62. One national JFPR implementation consultant (IC) to be called Senior Rural Sociologist will be recruited intermittently for eight months every year over the project period to assist the PIU. The individual consultant will be selected and engaged by the ADB in accordance with ADB Guidelines on the Use of Consultants (February 2007) and other arrangements satisfactory to ADB for engaging national consultant. The Terms of reference of the IC is included in Appendix 8. The PIU will be responsible for selection of NGOs for services as IA with the assistance of IC in accordance with the same above ADB Guidelines on the Use of Consultants (February 2007).

D. Implementation of Training 63. The targeted beneficiaries organized in FGs or SHGs are expected to cope with the future challenges that should be faced with their collective experiences and efforts. For this matter, carefully designed capacity and awareness development training programs should be implemented for individual FGs throughout the project period. Criteria for the selection of trainees in specific groups will be prepared by the IA in consultation with the PIU/SMO and assistance from the consultants, and approved by ADB.

E. JFPR Fund Disbursement

64. A Japan Fund for Poverty Reduction (JFPR) imprest account managed by the JFPR PIU in the BWDB will be established for the Project. This account will be maintained as a non-interest bearing account. The advance to the imprest account will be 6 months' estimated expenditures for the Project or 10% of the grant amount, whichever is less. The imprest account will be established, managed, replenished, and liquidated in accordance with the ADB's Guidelines on Imprest Fund and Statement of Expenditures Procedures (general procedures for establishing and operating the grant assistance - imprest fund is given in Appendix 9). The imprest account will be used to pay for equipment, materials, maintenance, training/workshops, and locally recruited service providers (excepting IC). Statement of expenditure (SOE) procedures will apply to every payment not exceeding $10,000. The imprest account and the SOE activities will be audited as per the annual audit requirement and a separate opinion will be provided on each. 65. EA is required to submit to ADB, through its JFPR PIU, an authorization letter together with the relevant specimen signature(s) before withdrawals from the ADB's JFPR account can commence. To request for an initial advance, EA needs to submit to ADB a withdrawal application for imprest fund (withdrawal application form - Appendix 10). An initial amount will be deposited into the account based on the projected expenditures for the next six months. EA will submit to ADB a monthly report of expenditures for the liquidation of advance (Forms 1 for funds disbursed from EA to IAs; and Forms 2-3 for EA’s reporting to ADB - see Appendix 11 a, 11 b & 11 c). With respect to each contract costing the equivalent of $10,000 or less, the withdrawal application for reimbursement or liquidation of advance shall be accompanied by duly certified by the authorized signatory that the expenditures have been incurred in accordance with the terms and conditions of the JFPR Agreement Letter. The SOE shall list the eligible items, the contract summary, the name and address of the supplier, and the amount applied for. A bank statement of the imprest account issued by the designated bank shall also be submitted. Unless requested by ADB, copies of all supporting documents relating to the contracts shall be retained by the JFPR PIU for ADB review.

F. Contract Awards/Commitments and Disbursement Projections 66. To assist in the monitoring of Project implementation, it is necessary to have projections of contract awards/commitments and disbursements. A comparison of such projections with the actual will help identify constraints in the implementation of the Project as well as assist in the identification

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of suitable remedial measures to enable the Project to be implemented on-schedule. One month prior to the beginning of each calendar year, the Project Manager in consultation with consultant shall prepare annual projections of contract awards, commitments and disbursements with quarterly breakdown for each component of the fund, using a format to be developed by the PIU. The following procedures shall be followed to ensure the timeliness and completeness of the information to be submitted:

(i) the worksheet for the quarterly and yearly contract awards, commitments and disbursement projections shall be completed by 10 January of each year;

(ii) the telex format of these projections shall reach the Bank not later than 15 January

each year; (iii) the completed worksheet shall be simultaneously sent by airmail or courier to reach

the Bank not later than 20 January of each year.

G. Fund Closing Date 67. The Fund Closing Date for the Grant is set at 31 December 2009, by which date the Government must complete all withdrawals from the Grant account. The Fund Closing Date may be extended, if required, by agreement between the Government and the Bank. Extension of the Closing Date may become necessary due to delays in Project implementation. When an extension of Fund Closing Date is being considered, BWDB PIU must ascertain: (a) whether the proposed extension of the Closing Date will allow sufficient time for the successful completion of the Project; and (b) whether adequate remedial measures have been formulated to overcome the causes of delay. Once it has been determined that the Closing Date should be extended, BWDB, through Economic Relations Division (ERD) of the Ministry of Finance, should submit an appropriate request to the Bank.

V. PERFORMANCE/BENEFIT AND IMPACT MONITORING INDICATORS A. Performance/Benefit Monitoring and Evaluation (BME)

68. A multi-purpose baseline survey report based on participatory approach will be prepared during the initial period of social mobilization activities in the field. With the help of the lAs, the participating FGs will set their own indicators, monitor at regular intervals, and evaluate success at the end of the Project. These monitoring and evaluation activities of FGs will be reflected in the EA's progress reports and examined by ADB's review missions. In addition, a gender-differentiated baseline survey will also be conducted, looking especially into social indicators of these groups, including their health status and literacy, and their access to resources. 69. Performance monitoring indicators relate to project implementation as well as impacts. Implementation-related indicators include formation of FGs (number and location); formation of WMGs and CFGs (number and locations); establishment of an effective and replicable participatory process for community-based O&M of the water works and livelihood activities using water/land infrastructures; awareness-building campaign and credit orientation for FG members (number and location); skills training for WMGs and CFGs (number and tools delivered); social forestry; site plantation and nursery development (number & location), pond-fisheries (number & location); activities of VDPCs (number of meetings, decisions, activities implemented, participation); nature and activities of community organizations and networking of the targeted beneficiaries; activities of IRCs (nature & number of events completed, cost sharing, participation); capacities of BWDB, relevant local governments, and NGO(s) to support participatory poverty reduction process; credit applications

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received (number and gender), loans processed and disbursed (number and amount by gender); loans utilized (number of beneficiaries by gender, trade and size); loan repayment (amount by gender); administration costs (percent); repayment rate (percent by gender); and loan arrears (percent by gender). Impact indicators will include community-based O&M status of embankments, sustainable employment and income increases of the FGs, including SHGs (emphasizing destitute women and women-headed households), through various IGAs based on microfinance; acceleration of social empowerment of the FGs; transformation of FGs into self-sustaining CBOs; sustainability of SHGs to operate own savings-credit activities; capacity enhancement of BWDB, relevant local governments, and NGO(s) to support participatory poverty reduction process for river-erosion affected extreme poor; improvement of multifaceted poverty indicators of individual targeted households compared to the benchmark levels; improvement of social harmony and gender discrimination in the project areas. 70. Three levels of BME will be carried out during Project implementation. The first consists of the standard project BME, as outlined in the Bank's Benefit Monitoring and Evaluation Handbook, and this will be coordinated by the PIU with the assistance of IC. The second integrates the information obtained by the planning and monitoring system established under the JFPR Project. This activity will be undertaken by SMOs/lAs in cooperation with the PIU and IC. The third level of BME to be undertaken will be a qualitative "performance monitoring and evaluation" arising from the participatory approaches used by the FGs. BME will play an essential role in the ongoing planning and management of the Project keeping in view its future activities, as they will evolve through the participatory process approach. Annual reviews of development initiatives will be conducted by the VDPCs and individual FGs, using the participatory approach to evaluate achievements and risks. IAs will assist in ensuring adequate minutes with copies to the PIU for record. IAs will initially be responsible for organizing this participatory BME and will train the groups so that they can continue with the review process after completion of the Project. Similarly, annual reviews will be undertaken at the project levels by the IAs with the cooperation of SMOs and IC to consolidate the qualitative assessment of Project activities and identify successful activities and approaches that can be replicated to similar other areas. 71. Key benchmark indicators will include (i) socioeconomic data of the targeted beneficiaries (such as, family income in cash and kind by individual earners; value of household assets; extent of female participation in vegetable gardening, small livestock activities, and home-based activities; allocation of family labor in agricultural activities; number of existing community groups operating in the sub-projects); (ii) beneficiary participation in O&M and existence of any number of targeted community groups undertaking plantation, nursery development and pond fisheries; (iii) magnitude of beneficiaries' participation, especially women, in social actions/activities to raise their voices; (iv) participation and activities of the beneficiaries, especially women, in existing VDPCs; (v) number and coverage of any NGO-backed small credit groups; (vi) activities and income earned through IGAs by the existing micro-credit groups etc. Records of the key benchmark indicators will be held at the PIU/SMOs/IAs and maintained by designated staff. Results of all forms of BME activities will be reported annually in progress reports generated by the PIU and submitted to the BWDB and the Bank. (The proposed M&E plan for the Project is attached as Appendix-15)

B. Mid-Term Review 72. In addition to the standard monitoring activities conducted by the Bank, a detailed review of the progress in Project implementation will be carried out at the middle of the project period. This review will ensure that all activities prescribed have been completed effectively, especially (i) the establishment of institutional arrangements, including the Project offices and staffing; (ii) skills and capacity development training of the FG members by IAs and/or subject specialists drawn from line

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departments or private agencies; (iv) recruitment of consultant; (v) procurement of equipment; (vi) strengthening of functional coordinating organizations (VDPCs); and (vii) completion of the survey and preparation of subproject implementation plans; (viii) progress of the ongoing and completed activities/tasks, as outlined in the subproject implementation plans. At the midterm review, the effectiveness of Project implementation will be assessed in detail (especially the effectiveness of the process approach), and, as may be required, adjustments made to the strategy, scope, and arrangements for implementing remaining activities. The emphasis of the review will be on qualitative and out-put achievements rather than achievement of physical input targets.

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VI. Reporting, Accounts, Audits and Project Completion Report A. Progress Report

73. The PIU and IAs will report on their respective JFPR activities quarterly. The standard reporting format is presented in Appendix 12. A detailed annual status report using the performance indicators is required. This report will be distributed to the Government and other stakeholders. The PIU and IAs will maintain separate accounts and financial statements of the JFPR subprojects and have them audited annually by auditors acceptable to ADB and in accordance with sound auditing standards. All financial transactions for the Project will be recorded separately in the project account in a manner that allows identification of expenditures under the Project. Certified copies of such audited reports will be submitted to ADB, in English, within 12 months after the end of each fiscal year. In addition, semi-annual Grant Status Report of JFPR will be prepared and submitted by the implementation consultant in consultation with the PIU/SMOs and IAs based on a standard ADB format (see Appendix 13). It highlights project achievements by individual components, grant utilization status, and major issues/problems faced and necessary actions taken/proposed during the reporting period.

B. Auditing Report 74. The IAs (including any agents or intermediaries acting on their behalf) will regularly submit quarterly progress reports on their activities to the PIU. The PIU will compile the progress reports in addition to its own progress report, and submit the compiled report to BWDB and ADB. It will also establish a performance and impact monitoring system in conjunction with the SMOs, and IAs. The IAs (including any agents or intermediaries acting on their behalf) involved in the project implementation will also be required to keep separate accounts for the Project and submit audited financial statements on these accounts to PIU and the Bank for monitoring their institutional and financial performance, not later than 12 months after the end of each fiscal year. The annual financial statements to be audited should be carried out by suitably qualified external auditors acceptable to PIU and the Bank. Reporting and auditing procedures will comply with the Bank's guidelines, including the Financial Reporting and Auditing of Projects Financed by the Bank. 75. The imprest account and expenditure reimbursed or replenished/liquidated under SOE procedures will be audited by a qualified auditor acceptable to the Bank, and the opinion relating thereto will be included separately in the audit reports or separately issued. Such audit may be carried out as part of the regular annual audit of the EA's general accounts and should be submitted to the Bank in 6 months after close of each fiscal year.

C. Project Completion Report (PCR) 76. Promptly after physical completion of the Project, but in any event not later than three months thereafter or by such other later date as may be agreed between the Executing Agency (EA) and the Bank, PIU will prepare a Project Completion Report (PCR) and submit it to the Bank. The PCR shall be in a form and in such detail as indicated in Appendix 14 (General Guidelines for the Preparation of the PCR), and it will cover the execution and initial operation of the Project, including its cost, the performance of the EA with respect to its obligations under the Grant Agreement and the accomplishment of the purposes of the Fund.

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VII. IMPACT ASSESSMENT A. Sustainable Poverty Reduction Impact

77. Given the extreme poverty and vulnerability of the targeted beneficiaries of the JFPR, especially of those females and female-headed households, the JFPR Project is expected to have significant impact on livelihood development and poverty improvement of the mentioned populations. The most important focus of the project is to create long term employment opportunities for approximately 4,000 poor households, emphasizing female headed households, in two subproject areas based on acquired skills, management and organizational capacities, and microfinance support provided by the IA/MFI. Assuming an average family size of 5 members, a total of 20,000 populations will be befitted directly as a result of the Project. To create a congenial social environment within which the beneficiaries should sustain the above impacts, social empowerment interventions have also been proposed in the project. They include development and strengthening of the community-based coordinating organizations together with other institutional support (IRCs) where the beneficiaries, especially the women, should be duly represented with equal footing to raise their voices in favor of protecting their rights and privileges within the community they live in. This is, in fact, very crucial to protect their newly gained employment and income opportunities in the long run from any kind of potential threats asserted by the local vested interests, who might see economic empowerment of the targeted beneficiaries a threat to continuing their own social and economic domination in society. The highly participatory economic and social development process in the JFPR Project is also expected to instill a sense of ownership amongst the beneficiaries to sustain the existing opportunities as well as encourage exploring others in the fields of health, education, water and sanitation, democratic and social rights, gender equality, social security, restoration of peace and harmony in society against all kinds of human rights violations etc. in the project areas. All these have both direct and indirect bearing on incidence of poverty, as long as the latter is not viewed to be uni-dimensional or purely economic in nature, rather it is multi-dimensional and not mutually exclusive in the project and other areas. On the other hand, social and economic empowerment should deliver a responsibility on the part of the beneficiaries to engage themselves in community-based regular O&M of the embankments and other water management facilities that support their livelihood and social development process. This is crucially important to the extent that this kind of community-based O&M approach is expected to be treated as a model to replicate in similar other situations elsewhere in Bangladesh. The expected poverty reduction impact is discussed in Appendix 16.

B. Participatory Development Issues

78. The design of the JFPR Project makes it highly participatory, and it will be implemented through NGO/MFI experienced with livelihood enhancement based on microfinance in collaboration with the beneficiary groups. Several consultative meetings were conducted during project preparation, including two focus group discussions involving only female groups. The feedback from and observations made at the focus group discussions have been incorporated in preparing the scope and programs of the JFPR Project. As the absorptive capacity of the target group is low and available natural resources are scarce, the implementability of each type of intervention for each area and group needs to be established in more detail than usual, for which more study and consultations will be required than was possible during project formulation. The JFPR Project will, therefore, follow a process approach, where IA/MFI will start by establishing baseline data and consultative platforms before activities are designed by means of intensive consultations. Participatory methods will ensure that the beneficiary-groups are adequately consulted about their needs, based on which appropriate interventions are designed for income generation and skills training. The IA will provide leadership and advocacy training for organizational and capacity building among the poor and women's groups to develop

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independent, sustainable organizations capable of managing the IRCs. This will strengthen the voice of the poor and women and will enhance their ability to network with other groups.

VIII. RISKS, ASSUMPTIONS, AND ASSURANCES 79. The above is represented in the following table:

Type of risk Assumptions Assurances Governance BWDB and local government bodies

may not effectively support the participatory development process targeted for the erosion-affected poor.

Full involvement of BWDB and local bodies with the support of JFPR project and JMREMP consultants and engagement of experienced NGO.

Implementation Delay

Implementation of the JFPR may take longer than envisaged because of (i) slow processing of procurement and project activities, (ii) inadequate need assessment, feasibility study and/or consultations in identifying various components of the proposed JFPR Project, (iii) lack of eligibilities of the potential borrowers to have access to mainstream microfinance program and market link of certain activities, etc.

The ADB-recruited JFPR implementation consultant will assist the process, and qualified NGO with proven track records of microfinance and other targeted community development activities will be recruited.

High-mobility of erosion-affected poor.

The floating nature of the informal settlers may require additional work to organize and monitor the beneficiaries' activities and eligibility.

Priority will be given to destitute women and female-headed households, which tend to stay within the community and are unlikely to migrate to urban areas compared to males.

Implementability As the absorptive capacity of the target group is low and available resources are scarce, the feasibility of each type of intervention for each area and group-needs to be established in more detail than usual, for which more study and consultation will be required than was possible during project formulation.

The JFPR project follows a participatory approach, whereby the implementing NGO will start by establishing baseline data and consultative platforms before designing activities by means of detailed consultations.

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IX. DIRECTORY OF PERSONAL A. Executing Agency Personal: Md. Makbul Hossain, Project Director

Golam Sadeque, Executive Engineer, PMO-JMREMP (JFPR Project Manager) Address: Bangladesh Water Development Board Project Management Office, JMREMP 28 Toyenbee Circular Road (3rd Floor) Motijheel CIA

Dhaka - 1000, Bangladesh. Telephone: 9567678, 9568792 Facsimile: 88-02-9567678 B. Asian Development Bank

6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel: + 632 632 4444 Fax: + 632 636 2444

Director: Frederick C. Roche

Agriculture, Natural Resources and Social Services Division (SANS) South Asia Department Tel +63 2 632 6908 SANS Fax No. +63 2 636 2391

Project Officer: Kenichi Yokoyama, Principal Water Resources Management Specialist, SANS, South Asia Department Tel +63 2 632 6397

Program Officer: Jeffry Kongoasa, Country and Regional Cooperation Specialist Country Coordination and Regional Cooperation Division South Asia Department Counsel: Kala Mulqueeny, Senior Counsel Office of the General Counsel Control Officer: Francis Emmanuel, Senior Control Financial Specialist, CTLA-1

Controller’s Department

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APPENDIX 1: JFPR PROJECT FRAMEWORK

Narrative Summary

Indicators and Targets Monitoring Mechanisms

Key Assumptions

Goal Reduction of human, economic, and social poverty among 4,000 erosion-affected vulnerable poor landless households (hhs) in the riverine fringe areas.

1. Proven poverty reduction model for erosion-affected

riverbank areas. 2. Empowerment, organized, skilled and self-reliant erosion-

affected poor households ((hhs). 3. Long-term employment and income opportunities for up to

4,000 hhs. 3a. 30% of hhs per income category. 3b. Increased number of income sources for the poorest hh

category. 3c. Decreased level of debt for the hhs. 3d. Enhanced nutritional levels of the hhs. 3e. Increased value of assets of the hhs.

Participatory evaluation Project completion report

Goal Level High level of commitment of the BWDB and stable habitats of the targeted beneficiaries.

Purpose 1. Test poverty reduction approach for erosion- affected poor in riverbank areas.

b. Poverty reduction approach tested and found effective. • NGO multi-year work plan feasible. • Useful and easy to maintain and manage baseline &

monitoring system. • NGO adopts & uses baseline data, hh tracking, & mentoring

system. • 75% VDPCs and FGs state that approach is effective. • Independent impact study shows sufficiently positive impacts.

- Baseline & impact study. - NGO work plan. - NGO's M&E system.

2. Empowerment of poor and vulnerable people.

2.1 At least 20 VDPCs functional as consultation and development platforms. • 100% VDPCs active as consultation platform & support for

FGs.

• 75% VDPCs adopt own simple self-monitoring system.

• 50% of active VDPC members belong to the poorest and most vulnerable hhs.

• The elite and traditional leaders in VDPCs play supportive

role. • At least 20 VDPCs officials take active part in PIRDP/MDIP

O&M framework.

2.2 75% targeted hhs in FGs; 60% FGs sustain. • 75% potential target group is member of FGs.

• 50% FGs able to manage, monitor and improve their IGAs

independently. • 60% FGs continue as FG after project end. • 50% FGs start new development initiatives without JMREMP

support. 2.3 90% hhs improve access to facilities & development

support. • 75% FGs & VDPCs use IRCs or networking, training, M&E. • 75% IRCs effectively managed & maintained. • 90% FGs find BWDB & LGls more accessible &

representative. • 90% targeted hhs know where to get external support, as &

when needed. • GO-NGO coverage of riverbank areas are at per with rest of

the district. • 50% FGs receive support from third parties when needed.

- NGO Baseline/ Impact Study. - VDPC self-monitoring findings. - Training Impact Assessments. - FG self- Monitoring. - NGO/project monitoring.

Purpose Level - Timely fielding of capable IAs/MFls; - BWDB &ADB administrative procedures allow flexibility and smooth operation; - Local elite supportive of program. - Stable socio-political and security situations in the country and subproject areas.

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Narrative Summary

Indicators and Targets Monitoring Mechanisms

Key Assumptions

3. Long-term employment and income opportunities for approximately 4,000 hhs.

3.1. 20 profitable IGAs identified & developed • 10 new marketable skills/products & markets identified and

developed. • 10 old marketable skills/products & markets improved.

- NGO Baseline/ Impact Study. - NGO tracking.

3.2. 60% of target group involved in more profitable IGA than before • 2,000 target hh involved in IGA through functional groups

(50% women).

• Participants' drop-out or failure rate below 20%. 3.3. 90% hh have increased access to employment and IG opportunities • 500 target hh increase access to common/government land

& water resources. • 100% producers/groups know how to access markets &

financial support. • 100% groups have long-term linkages with traders &

markets. • 75% producers and groups have linkage with Fls and

access to finance.

-Mentoring and coaching system. - VDPC & FG self-monitoring findings. - NGO Product assessment reports. - Market surveys. - Training impact assessments.

Components/Outputs 1. Livelihood enhancement through regular employment. 2. Community organization and networking for the poor. 3. Project management and poverty impact assessment.

• Long-term employment opportunities provided to

approximately 4,000 targeted poor households.

• Well-functioning cohesive & community-level organizations established at the project areas.

• Project operated and completed successfully without great difficulties and interruption.

• Significant poverty improvement of the targeted

beneficiaries.

Poverty impact Assessment report. Project progress report & ADB review mission. Project completion report. Poverty impact Assessment report.

Component Level • Stable habitats of

the targeted hhs ensured.

• HHs used acquired capacity and skills in various IGAs based on needed micro-credit support.

• Local influential people and community leaders are supportive towards community-level organizations.

Activities for Outputs Formation of WMGs, CFGs and SHGs Training Credit

• 360 WMGs, 100 CFGs 260 SHGs for fish culture formed for

specific activities O&M and IGAs.

• Skills and capacity development training conducted for 267 training groups, comprising 15 beneficiaries in each group, over a period of 25 months.

• 4,000 beneficiaries covered by microfinance over the project

period to undertake permanent income opportunities.

Quarterly report. Quarterly report. Quarterly report.

Activity Level IA successfully implemented awareness and community mobilization as per the timetable. IA successfully completed pre-designed training programs within the timeframe following participatory approach. All beneficiaries complied with various eligibilities for

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Narrative Summary

Indicators and Targets Monitoring Mechanisms

Key Assumptions

microcredit.

Inputs 1. Revolving credit Initial promotional grants, including tools and equipment, for undertaking envisaged O&M and IGAs. 2. Training, workshops, seminars. 3. Consulting services. 4. Vehicles maintenance/fuel/driver for PIU and other team members. 5. Project Management. 6. Contingencies.

Resources • JFPR Grant. • GoB contribution. • Beneficiary contribution in imputed labor cost. • NGOs contribution to finance micro credit.

Quarterly report.

-Timely and required disbursement of JFPR and GoB contribution. - Groups of beneficiaries motivated to put voluntary labor required for fish culture and tree plantation. - Adequate and timely disbursement of micro credit to the beneficiaries as per their needs.

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APPENDIX 2: JFPR PROJECT STRUCTURE/ARRENGEMENTS

JMC/WMF

DC’s Office

Disaster Management

NGO

WMA

Implementation Subcommittee

Village Disaster Preparedness Committee (VDPC)

VDPC Maintenance workers >1,000 Resettlement Households

> 2,000 TSD group members Other target population

BWDB/SMO & PMO

JFPR NGO

Resettlement NGO

Upazilla Government (UZ Disaster MC)

Union Council (Union Disaster MC)

WMG

Water Management

Local Government

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APPENDIX 3: DETAILED COST ESTIMATES AND FINANCING PLAN

Costs ($) Contributions ($)

Costs ($) Contributions ($) JFPRItems Unit

Quantity Cost per Unit Total Amount Method of

ProcurementGoB NGO Beneficiaries

Component 1: Livelihood Enhancement (by NGOs) 652,400 398,400 0 240,000 14,000 1.1 Community-based routine maintenance 1.1.1 Organizing Waterworks Maintenance Groups (WMGs) Group 360 80 28,800 28,800 NGO 0 0 0

1.1.2 Skills training and capability building of the WMGs Group 360 200 72,000 72,000 NGO 0 0 0

1.1.3 Basic tools and equipment delivered Group 360 80 28,800 28,800 NGO 0 0 0

Sub-total 129,600 129,600 NGO 0 0 0 1.2 Social forestry, site plantation, and nursery development

1.2.1 Organizing Community Forestry Groups (CFGs) Group 100 80 8,000 8,000 NGO 0 0 0 1.2.2 Skills training of CFGs Group 100 200 20,000 20,000 NGO 0 0 0 1.2.3 Tree plantation for embankments and canals Group 200 250 50,000 40,000 NGO 0 0 10,000

1.2.4 Seeds, saplings, etc. for establishing nurseries Group 100 300 30,000 30,000 NGO 0 0 0

Sub-total 108,000 98,000 NGO 0 0 10,000 1.3 Income generation 1.3.1 Strengthening self-help groups Group 260 80 20,800 20,800 NGO 0 0 0 1.3.2 Skills training and capability building of groups Group 260 200 52,000 52,000 NGO 0 0 0

1.3.3 Excavation of fishponds Group 50 400 20,000 16,000 NGO 0 0 4,000 1.3.4 Initial supplies and inputs of fisherlinqs, hand tools, etc. Group 260 300 78,000 78,000 NGO 0 0 0

Sub-total 170,800 166,800 NGO 0 0 4,000

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JFPR Quantity Cost per Unit

Total Amount Method of

Procurement

GoB NGO Beneficiaries

1.4 Microfinance facilities 1.4.1 Microfinance to support Component 1

House- hold

4,000 60 240,000 0 NGO 0 240,000 0

1.4.2 Training groups in microfinance management

Lump sum

4,000 4,000 NGO 0 0 0

Sub-total 244,000 4,000 NGO 0 240,000 0 Component 2: Community Organization and Networking

82,000 82,000 0 0 0

2.1 Civil works: Information and Resource Centers (IRCs)

2.1.1 Earth work and laying the foundations

Building 2 7,000 14,000 14,000 LCB 0 0 0

2.1.2 Construction of the IRC buildings

Building 2 14,000 28,000 28,000 LCB 0 0 0

Sub-total 42,000 42,000 0 0 0 2.2 Furniture’s, furnishing, library, and audiovisual equipment

Sub- project

2 1,000 2,000 2,000 DP 0 0 0

2.3 Management training and networking activities by NGO

Course 200 150 30,000 30,000 NGO 0 0 0

2.4 Baseline survey and information campaign by NGO

Sub- project

2 8,000 8,000 NGO 0 0 0

Component 3: Project Management and Impact Assessments

459,600 309,600 150,000 0 0

3.1 Project staff (Coordinator, Accountant, Assistants)

Lump sum

65,000 65,000 0 0

3.2 Consulting services 3.2.1 JFPR Implementation Consultant (Senior Rural Sociologist)

Person- months

30 3,000 90,000 90,000 Consultant 0 0 0

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Costs ($) Contributions ($) JFPR Items Unit Quantity Cost per

Unit Total Amount Method of Procurement

GoB NGO Beneficiaries

3.2.2 Consultant out-of-pocket expenses

Lump sum 10,000 10,000 Consultant 0 0 0

Sub-total 100,000 100,000 0 0 0 3.3 Office facilities (central and 2

subprojects)

3.3.1 Rental Lump sum 21,000 21,000 0 0

3.3.2 Operation and maintenance (utilities ) Month 40 1,500 60,000 60,000 0 0

3.3.3 Office supplies and Office 3 4,000 12,000 12,000 DP 0 0 0 Sub-total 93,000 12,000 81,000 0 0

3.4 NGO administrative costs Lump sum 430,400 20% 86,000 86,000 NGO 0 0 0

3.5 Transport and office

3.5.1 Equipment and supplies Lump sum 3,000 3,000 DP 0 0 0

3.5.2 Motorcycles* Lump sum 3,000 3,000 DP 0 0 0

Sub-total 6,000 6,000 0 0 0 3.6 Travel, accommodation & perdiem

3.6.1 Travel, accommodation and per diem for PIU staff

Lump sum 15,000 15,000 0 0 0

3.6.2 Per diem for supporting line agency staff

Lump sum 8,500 8,500 0 0 0

Sub-total 23,500 23,500 0 0 0 3.7 Reviews, reporting and

knowledge dissemination

3.7.1 Project reviews and reporting Report 7 1,500 10,500 10,500 Consultant 0 0 0

3.7.2 Project publication Lump sum 4,000 4,000 4,000 DP 0 0 0

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Costs ($) Contributions ($)

JFPR Items Unit Quantity Cost per

Unit Total Amount Method of

Procurement GoB NGO Beneficiaries

3.7.3 Seminars and workshops Lump sum 6,000 6,000 6,000 Consultant 0 0 0

3.7.4 Poverty impact assessment Lump sum 7,000 7,000 NGO 0 0 0

3.7.5 Auditing Report 4 1,000 4,000 4,000 0 0 Sub-total 31,500 27,500 4,000 0 0

Contingencies 54,600 54,600 0 0 0 Grand-total 1,194,000 790,000 150,000 240,000 14,000

*Motorcycles will be used to support the day-to-day field activities of the JFPR project office staff in two subproject areas, and handed over to the subproject management office upon completion of the project.

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APPENDIX 4: GENERAL TERMS OF REFERENCE FOR PROJECT IMPLEMENTATION UNIT (PIU) AND IMPLEMENTING AGENCY (MFI) 1. A project implementation unit (PIU) to coordinate and manage Japan Fund for Poverty Reduction (JFPR) activities will be established in the Project Management Office (PMO) of Bangladesh Water Development Board (BWDB), headed by the JFPR project manager. With the assistance of the IC engaged under the JFPR, the PIU will carry out the following tasks: (i) Undertake an information campaign for the JFPR Project.

(ii) Identify and engage local MFls/NGOs as IA with potential for participating in the project activities, assess their experience, staff qualification, gender awareness, and financial and managerial capacity, with the assistance of the IC and in coordination with the ADB.

(iii) Supervise lA's activities to prepare the subproject implementation plans for

the concerned subproject areas. (iv) Supervise and ensure implementation of the subproject implementation plans

in accordance with the JFPR implementation plan at the subproject level. (v) Coordinate with IC and ADB in implementing the JFPR implementation plan. (vi) Coordinate with the government line departments both at central and

subproject levels and local institutions (particularly, local government and elected bodies) to arrange for specific services and support that IA will need to implement the JFPR plan.

(vii) Undertake impact evaluation with the support of the IA. (viii) Coordinate with the Water Development Board effectively and expeditiously

for kinds of designated supports in the implementation of the project activities. (ix) Provide and arrange for all kinds of necessary administrative and managerial

supports at the central and subproject levels to overcome any problems during implementation of project activities at any point in time.

2. Following the project implementation plan, the selected MFI(s)/NGO(s) as IAs engaged by the PIU will undertake, but not limited to, the following tasks: a. Carry-out a multi-purpose baseline survey of the erosion affected poor to draw data on

(a) actual number and size of different categories of potential JFPR beneficiaries to be organized in functional groups or SHGs for various IGAs and other activities; (b) their locations (squatters and non-squatters inside the embankment); (c) need based skills training of individual group members together with how and who will conduct the training; (d) the plan of available land and water resources owned by the BWDB and private owners, which can be used by the beneficiaries for permanent employment and income generation supported by initial promotional grants (necessary tools, equipment and other inputs) and long term microfinance support provided by the implementing NGO covering; and (e) relevant local institutions for networking and informal campaign etc.

b. Prepare overall sub-project implementation plans for PIRDP and MDIP areas. c. Assist SMOs prepare and implement routine O&M plans for water management facilities

i.e. embankment, irrigation canals, drainage and other physical structures.

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d. Prepare and update annual implementation plans in consultation with the identified project beneficiaries for various income generating and other activities keeping in view the O&M plans.

e. Prepare plans and implement skills training for the beneficiary groups for various IGAs,

such as, social forestry, site plantation, nursery development, pond/open water fisheries, livestock, horticulture, micro/cottage industry etc.

f. Prepare plans and implement capacity development training at the beneficiary level for community organizations, networking and microfinance management.

i. Provide microfinance from own or other established facilities to provide long term support

for various IGAs undertaken by the beneficiaries.

ii. Facilitate implementation of social forestry, nursery development, and fish culture for the identified beneficiaries using public and private assets with initial promotional grants provided by the JFPR Project.

iii. Develop and implement networking activities with the beneficiary groups, Village

Disaster Preparedness Committees (VDPCs) and relevant local institutions to accelerate social empowerment process and self-reliance initiatives of the beneficiaries.

iv. Mange information on JFPR project beneficiaries and activities, including (a)

computerizing baseline data; (b) reporting on progress with project implementation and delivery; and (c) recording changes in physical, institutional, and socioeconomic status and impacts.

v. Propose progress, performance and impact monitoring plans by incorporating a

reasonable number of appropriate indicators for specific activities.

vi. Prepare and submit regular implementation monitoring and progress reports and a completion report at the end of the project.

vii. Produce monthly accounts of NGO’s administrative budget expenditures.

viii. Assist SMOs prepare monthly program budget expenditure account.

ix. Organize information sharing and dissemination workshops/seminars, as and when

required.

x. Assist conduct impact assessment at the end of the project.

xi. Assist organize orientation workshops on JFPR action plan for the relevant staff of the BWDB at central and subproject levels, and establish a JFPR Implementation Sub-Committee (JISC) under the Joint Management Committee (JMC), established under the JMREMP in each sub-project.

xii. Assist the community coordinating organizations (VDPCs) to implement Information

Resource Centers (IRCs) to be established at a number of project sites.

33

APPENDIX 5: ELIGIBILITY CRITERIA FOR NGO/MFI The criteria for selecting IA (MFI/NGO) will be as below: 1. Operational strength, knowledge and working experience in the PIRDP and MDIP project

areas. 2. Knowledge and experience with the embankment squatters and floating populations of

vulnerable poor including widows, divorced, separated and adolescent girls. 3. Adequate technical and community development staff expertise to be involved in

infrastructure maintenance, livelihood enhancement through skills, income generating activities and institutional development for the target populations based on participatory approach.

4. Expertise in microfinance operation with at least five years of ongoing satisfactory

performance in partnership with Palli Karma Shahayak Foundation (PKSF) or based on own/other funding sources, and 'confirmed willingness' to deliver microfinance to JFPR target beneficiaries. In this regard up to date information on the total number of borrowers, total outstanding loans, loan repayment rate and interest rate (flat or declining) should also be mentioned.

5. Earlier experience in working and coordinating with the various line agencies, including ,

in similar projects with demonstrated performance confirmed by the concerned organizations is preferred.

6. Capacity in fulfilling gap in full-time staff expertise in specific areas by establishing link

with reputed relevant agencies or individual consultants. 7. Capacity to mobilize external specialists to conduct feasibility studies on subjects to be

defined during the participatory planning stages. 8. Capacity to determine gender related indicators and action planning. 9. Extensive experience of the staff in working with rural women having majority of women

in the mid and senior positions. Have male and female staff trained in gender and development, with a vision and strategy for gender development.

10. Expertise in conducting training, workshops and surveys based on standard participatory

methods.

34

APPENDIX 6: MODEL OF A DEVEOPMENT PLAN (for each subproject) A. Beneficiary profile:

Gender Status in the household Household Head Other

Beneficiary Code

Name of the beneficiary Age (Years) Male Female

Yes No Son Daughter Relative

Specific Geographic Location

B. Active to be undertaken and supports to be provided:

Supports required

Credit (Tk.)

Name of supporters by planned activity

Beneficiary Code

Name of the IGAs planned or desired (ranking in descending order) Training

Yes/No Total amount Credit (Tk.)

Self-contribution

Loan Supporter Activity

35

36

37

APPENDIX 8: OUTLITE TERMS OF IMPLEMENTATION CONSULTANT A Project Implementation Consultant (IC) will be engaged intermittently for a total period of about 27 months over the JFPR project period to assist the JFPR Project Implementation Unit (PIU) and the participating implementing agencies (IAs) in ensuring good governance and effective management of project activities. In particular, the consultant will undertake the following activities. i). Review, refine, and finalize the grant implementation manual in consultation with JFPR

Project and JMREMP staff and ADB.

ii). Prepare a draft inception report explaining the work plan for the JFPR project implementation period based on the grant implementation manual and initial consultations with the prospective beneficiaries.

iii). Refine and finalize the documents for recruiting the main implementing NGOs for the

PIRDP and MDIP areas, including the invitation document, the detailed terms of reference, and the evaluation criteria, in coordination with the PIU and the JMREMP consultants.

iv). Help the PIU select the main implementing NGOs

v). Assist the PIU and SMOs with the initial start up activities, including (a) preparing O&M and

land and water body allocation plans to be pursued in consultation with JFPR beneficiaries; (b) supervising the selected NGOs in undertaking the baseline survey, information campaign, and inventory update of potential beneficiaries; (c) preparing the JFPR Project implementation plan for the PIRDP and MDIP areas.

vi). Help the PIU and SMOs guide and supervise the implementing NGOs in preparing,

executing, and reporting on implementation plans for the individual project components.

vii). Coordinate with the Palli Karma Shahayak Foundation (PKSF) for the prudent management of the implementing NGOs' activities in pursuit of the delivery of microcredit.

viii). Coordinate with the PIU, the SMOs, the JMREMP consultants, and pertinent VDPCs in

relation to the construction of information and resource centers (IRCs) at sites selected with the JFPR Project beneficiaries.

ix). Help the PIU, the SMOs, and the implementing NGO(s) put in place appropriate processing,

recording, and reporting arrangements for procurement and disbursement that adhere to guidelines.

x). Assist the PIU, the SMOs, and the implementing NGO(s) in developing appropriate

institutional arrangements and management systems for the IRCs.

xi). Supervise the implementing NGO(s) in identifying appropriate progress indicators and in reporting on the progress of implementation and help the PIU prepare and submit JFPR project implementation progress and other reports.

xii). Help the PIU engage an appropriate institution to undertake poverty impact assessment in

relation to the JFPR Project and supervise its work.

38

APPENDIX 9: GENERAL PROCEDURES FOR ESTABLISHING AND OPERATING THE GRANT ADVANCE IMPREST FUND

Imprest Account for Grant Proceeds 1. The Government of Bangladesh (GoB) as recipient of the Grant fund shall establish, or

cause EA to establish, after the Effectiveness of project, an imprest account (with two ledgers, one for PIU and other for IAs) for the operation of grant proceeds and for making payments in respect of eligible project expenditures, in accordance with the following provisions:

Eligible Expenditures 2. The Account may be used for the purpose of making payments for any eligible expenditure

incurred under the Project for implementing the scope of works. 3. The account shall be denominated in Bangladeshi Taka. Account Name and Authorization of Withdrawals of Advance Fund 4. The Account shall be named "JFPR No. 9080 - BAN Imprest Account" and the EA will

authorize PIU to be responsible for operating the Account and making replenishment from Bank and payments there from. An accountant of the counterpart project will be assigned to operate the account jointly with the JFPR Project Manager.

Initial Advance and Ceiling 5. The request for initial advance will be made by PIU by submitting an Application for Advance

Fund (Appendix 10). The advance to the imprest account will be 6 months' estimated expenditures for the Project or 10% of the grant amount, whichever is less. The Bank then deposits an amount not exceeding equivalent to the above as an initial advance to the new account of the PIU opened in any convenient bank.

6. The amount of the initial advance establishes a ceiling up to which the PIU may request for

deposits into the Account for replenishment purposes. This ceiling may be changed by the mutual agreement of the ADB and the EA/PIU.

Replenishment 7. Once a ceiling has been established, all additional deposits by ADB into the Account will be

made based on actual expenditures made out of the Account, whereby PIU submits a certified SOE 2 Form (Appendix 11b) for expenditures and a bank statement to obtain replenishment. In this manner, the Bank replenishes from the time-to-time the exact eligible amount spent out of the Account.

8. Notwithstanding the provision of paragraph 7 of this Annex, the Bank may at any stage by

notice to the EA suspend making further deposits (replenishments) to the Account if the EA has failed to comply with any provision in this annex or if Project completion is near or when the undisbursed loan balance is equal to twice the amount of the prevailing ceiling.

Accounts and Records

39

9. The EA/PIU shall ensure that all amounts received for or in connection with the Account and

amounts withdrawn there from are recorded in a separate account in accordance with consistently maintained sound accounting principles. The ENPIU shall retain until one year after the closing of the project or such other date as the Bank may agree, all accounts and records including orders, invoices, bills, receipts and other original documents evidencing the expenditures paid out of the Account, and shall enable the Bank's representatives to examine such accounts and records during disbursement and review missions.

Audit 10. The EA shall cause an independent qualified auditor acceptable to the Bank to periodically

audit the accounts and records referred to in the paragraph above and furnish the audit report thereon to the Bank not later than six months after the end of each related fiscal year. The opinion of that part of the examination relating to the Account should be separately set out in the auditor's report.

Closing of the Account 11. Notwithstanding the provisions of paragraph 7, when the Bank shall have determined that

the Project components to be financed with the payments from the Account pursuant to Para, 2 above are near completion, the Bank may reduce the amount of any replenishment as the Bank may deem appropriate with a view towards gradually closing the Account.

12. In the event that (i) the Bank determines that any amount outstanding in the Account will not

be required to cover eligible expenditures, or (ii) any amount remains outstanding in the Account after the Project Closing Date specified in the Project Document, the EA shall, promptly upon notice form the Bank and unless otherwise agreed by the Bank, refund to the Bank such amount then outstanding in the Account.

40

APPENDIX 10: WITHDRAWAL APPLICATION FOR IMPREST FUND (From ADB-IFP)

Date : ........................... JFPR : ........................... Application : ...........................

To: Asian Development Bank Dhaka, Bangladesh.

Type of Disbursement: ---------Initial Advance ---------Increase in Ceiling ---------Replenishment

Attention: Controller’s Department-Disbursement Division (LFIS) Sir/Madam: 1. In connection with the JFPR Grant Assistance Project Report with Reference Number JFPR: ------------------------- dated ----------------------approved by the Board of directors of the Asian Development Bank (Bank), please pay from the Grant Account for the purpose of establishing/replenishing the Imprest Fund. ----------------------------- --------------------------------------- (Currency name) (Amount to be paid in figures) 2. The undersigned certificates and agrees as follows: a) The said amount is required for payment of eligible expenditures as described in the

attached Estimate of Expenditures Sheet( s) from (date/month/year) to (date/month/year) b) Any advances by the Asian Development Bank to the Imprest Fund may be limited to a sum

smaller than the amount requested for advances or replenishment, allowing the Fund to be gradually reduced and fully documented prior to Project closing date.

c) The undersigned has not previously withdrawn or applied for withdrawal of any amounts

from said JFPR Grant Account nor obtained or will obtain any loan, credit, or grant for the purpose of fully or partially meeting the expenditures described in the Estimate of Expenditures Sheet(s) or Summary Sheet(s);

d) The expenditure described in the attached Estimate of Expenditures/Summary Sheet are to

be made for the purposes specified in the JFPR Grant Assistance Project Report and in accordance with it terms and conditions; and

e) Promptly within 6 months after the payment(s), the undersigned will furnish proof

satisfactory to the Bank to liquidate and document the advance.

41

f) For expenditures to be liquidated on the basis of a Statement of Expenditures (SOE), an authenticating documents will be retained in the location shown on the individual SOE Summary Sheet(s) and will be made available for review by auditors and Bank representatives_____________

g) If any funds withdrawn pursuant to this application are returned, the current value of such funds will be applied as credit to the JFPR Grant Account.

3. PAYMENT INSTRUCTIONS

a) Name and Address of Payee's Bank and Account Number Bank Name : __________________________________

Bank Address : __________________________________

Payee's Account No. : __________________________________

SWIFT Code : __________________________________

b) Payee's Name and Address Payee's Name : __________________________________

Payee's Address : __________________________________

c) Correspondent Bank in USA: Bank Name : __________________________________

Bank Address : __________________________________

SWIFT Code : __________________________________

d) Special Payment Instruction and Other References 4. This application consists of (number) page(s) including (number) page(s) of Summary

Sheet(s):

By: ______________________________________ Signature(s) of Authorized Representative(s) of the Executing Agency

______________________________________ Print Name & Title of authorized Representative(s)

42

APPENDIX 11(a): MONTHLY REPORT OF EXPENDITURE (From NGO/MFI [IA] to PIU/JFPR)

For the Month of _________________________200 ____________

S.N. Project Expenditure Category Beginning to Date

This Period Accumulated Expenditure

Cheque No. (Footnote -b)

Description

(1 ) (2) (3) (4=2+3) (5) (6) Component 1/sub- components/activities

Component 2/sub- components/activities

Component 3/sub- components/activities

IA Accountant

Approved by:

IA Manager.

1

-

-

-

-

2

-

-

-

3

-

-

-

-

-

Prepared by: Footnote (a): This copy is retained by the PIU or EA reference Footnote (b): If there is more than 1 payment or cheque, please list all the cheque numbers on a separate sheet

(SOE Form – 1)

43

APPENDIX 11 (b): CONSOLIDATED STATEMENT OF ACCUMULATED EXPENDITURES (From the EA to ADB)

For the beginning of Project to _________________________ (the date of the last report submitted to ADB)

S.N. Project Expenditure Category Imp. Agency NGO/MFI PIU Total

1

- - - -

2

- - -

3

- - -

Component 1/sub- components/activities Component 2/sub- components/activities Component 3/sub- components/activities

Total:

Prepared by: PIU-Accountant: Approved by: Project Coordinator: ADB Consultant Note: This report is prepared based on Monthly Report of Expenditure from IAs to EA

(SOE Form – 2)

44

APPENDIX 11(c): CONSOLIDATED STATEMENT OF ACCUMULATED EXPENDITURES (From the EA to ADB)

For the beginning of Project to _______________________ (the date of last report submitted to ADB) S.N. Project Expenditure Category Imp. Agency 1 NGO/MFI PIU Total Remarks, Description etc.

1

-

-

-

- 2

-

-

- 3

-

-

-

-

-

Component 1/sub- components/activities Component 2/sub- components/activities Component 3/sub- components/activities

Total:

It is hereby certified that the above amounts have been paid for project execution of project activities within in the terms and conditions of the JFPR Grant Report. All documentation authenticating these expenditures have been retained in the national IA’s office and will be made for review by visiting missions on request. PIU Accounts Signature ADB Consultants Signature Project Coordinator Signature: Footnote (a): This is the amount requested by the EA for liquidation or replenishment in the withdrawal application.

(SOE Form – 3)

45

APPENDIX 12: SUGGESTED FORMAT FOR THE QUARTERLY PROGRESS REPORT3 (For the use of JFPR Project PIU and Implementing Agencies)

A. Summary 1. This section will summarize the events during the period under review, including (i) major events and progress relating to project implementation, (ii) status of major procurement and disbursement actions, (iii) implementation problems encountered, (iv) significant project impact noted and reported, and (v) other related matters. It will also include the summary of the activities planned for the next period for review. The summary needs to be concise and clearly focused on major points to be reported. B. Status of Project Implementation 1. Important Events 2. The important events to be reported include the relevant policy and institutional set ups, personnel engaged budgetary release matters, etc. 1. Progress 2. The project performance during the period under review needs to be presented in a summary table format by component.

3. Status of Disbursement 4. The summary of the disbursements under the Project needs to be reported with the contents, amount, and supplier and procurement mode of the supply order. The progress of disbursement and liquidation with ADB will be included in the report in a summarized form.

3. Project Management 4. One of the important purposes of the quarterly or trimesterly progress report is to identify managerial problems and issues to be resolved for effective project implementation. They will be stated in the report together with their cause and effect and recommendations for their resolution. The degree of participation by project beneficiaries, CMC and by community-based organizers (COs) in relation to the project needs to be assessed and efforts made to achieve the objectives of the project. 5. Project Impact 6. The format to be used by the IAs field staff for monitoring and reporting needs to include sections for socioeconomic and productivity impacts generated under the project. Actual measures taken by the field staff to enhance positive impact will also be described in detail.

C. Other Matters 7. This section will discuss other matters related to project activities. Any other outstanding issues or problems will be highlighted together with the recommended measures for resolution. 8. This report will facilitate discussions particularly at the meetings of the JFPR Project Steering Committee and ADB's review missions.

D. Work Program for the Next Quarter

3 This section describes a suggested outline of the quarterly or trimesterly progress and impact report. The final format and detailed procedures need to be determined by the JFPR Project PIU and the participating implementing agencies (IAs) in consultation with ADB, and in conjunction with the project performance and monitoring system to be established for the project.

46

9. The specific project activities planned for the next quarter or trimester including procurements and disbursements, required inputs and targets, etc. will be described in this section. Any implementation and managerial issues to be addressed immediately need to be highlighted.

APPENDIX 13: SEMI-ANNUAL GRANT STATUS REPORT (Note: To be received by OCO within one month after the end of the reporting period)

A. Basic Grant Data DMC: BANGLADESH

Grant Number: 9080-BAN Name of Grant: Social Development of Erosion-affected Poor in the Jamuna Meghna Floodplains

Approved Grant Amount: $ 790,000

Responsible Project Officer and Division: Kenichi Yokoyama, Principal Water Resources Management Specialist, SANS, South Asia Department, kyokoyama@adb.org

Grant Commencement Date (Date LoA was signed): 5 December 2005

Original Closing Date / Revised Closing date (after extension): 6 June 2010

Executing Agency: Bangladesh Water Development Board, Project Management Office, JMREMP, 28 Toyenbee Circular Road (3rd Floor) Motijheel CIA, Dhaka - 1000, Bangladesh. Telephone: 9567678, 9568792, Facsimile:88-02-567678, e-m: pdjmremp@gmail.com

Implementing Agency(ies): Hilful Fuzul Samaj Kallyan Sangstha (HFSKS) & Environment, Agriculture & Development Services Ltd. House-38/3, Road-16(new), DRA, Dhaka-1209. Telephone: 9132383, 913393. Facsimile: 88-02-8117156. E-m: zafrul_q@yahoo.com

Period of Reporting {date from/to}: B. Grant Status Date when this report was prepared:

General Status (Summary)

A B C D E4 Specify: _______________________

Grant Development Objective:

Physical Accomplishments

Grant Components

Targeted/Expected Output

(%) Rating5 (HS,S,PS,U)

Notes - Remarks:

4 A = Financially Closed; B = Implementation already started or is ongoing; C = LOA signed but implementation has not started yet; D = ADB Approved but LOA not yet signed; E = Others, (please briefly specify, e.g. extension, or issues that need to be flagged) 5 HS=Highly Satisfactory, S=Satisfactory, PS=Partly Satisfactory, U=Unsatisfactory

47

C. Grant Utilization

Grant Committed: $

Cumulative Disbursements: $

Balance: $

Annual Disbursements (from ADB to Grant Accounts):

1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.

Projected: $ $ $ $

Actual: $ $ $ $

Notes - Remarks:

Procurement of Goods and Services:

Goods

Services

No. of contracts

Total Amount

No. of Contracts

Total Amount

Contracts Awarded:

Outstanding Contracts:

Notes - Remarks:

D. Major Issues / Problems {please add extra sheet if necessary}

Problems / Issues Action Taken / Proposed

48

Prepared By: Name / Division / Signature Comments

Project Officer:

Cleared By: Name / Division / Signature Comments

1. Director, SANS and OIC-SARD

Frederick C. Roche

APPENDIX 14: OUTLINE FOR PROJECT COMPLETION REPORT I. Project Description

A. Objectives B. Components C. Implementation methods D. Description and justification of changes in components/implementation methods II. Project Implementation A. Comparison between original and actual implementation schedules. Delays, length and

cause of delays, and remedial action taken.

B. Comparison of cost estimates made during appraisal and actual costs. Factors that contributed to any significant cost overruns or underruns.

C. Statements of problems or difficulties in recruiting implementing agency/ies (IAs), with

reference to ADB procedures. Assessment of the (IAs) work and working relationship between the executing agency (EA) and (IAs).

49

D. Statements of problems or difficulties encountered in procuring goods and services with reference to ADB procedures. Assessment of the suppliers' and contractors' performance under the contracts.

E. The extent of compliance of the EA with the Project covenants, with reasons for

noncompliance or delays in compliance and the remedial action taken. F. Statement of the reasons for any delays in fund utilization. Evaluation of the

appropriateness of the disbursement methods used. Justification for the reallocation of fund proceeds.

III. Initial Operation A. Description on initial operations to the project and transitional problems encountered

from project completion to initial operations.

B. Description on measures taken to ensure continued smooth operation to the project relative management, staffing, funding, and maintenance of project facilities.

C. Analysis of the prospects of the project benefits being realized. IV Evaluation of the Asian Development Bank's Performance A. Assessment of JFPR/ADB' performance in supervising project implementation with

comments on the adequacy of the consultants' terms of reference and appropriateness of specifications in tender documents. Evaluation of the effectiveness and timelines of assistance extended by ADB to solve implementation problems.

B. Comments on problems encountered with JFPR/ADB's procedures with the measures

taken to resolve these problems. Suggestion for changes in procedures and requirements.

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APPENDIX 15: M&E PLAN FOR JFPR PROJECT

Activities Targets Indicators Sources of verification

Timetable for M&E

Activity 1: Conduct a multipurpose baseline survey and information campaign.

• 4,000 female-heads, including 3,800 in PIRDP and 200 in MDIP, representing the same number of households identified as JFPR beneficiaries and they became aware of the Project objectives.

• The locations of all the beneficiaries identified in both subproject areas, who are voluntarily involved in group development activities.

• Survey report and consultation with the beneficiaries.

Mid July 2008.

Activity 2: Formation of beneficiary-groups in the subprojects.

• 267 functional groups (FGs) formed, consisting of 15 beneficiaries in each group with a spread of 253 groups in PIRDP and 14 in MDIP, for implementing project activities with active participation of the group-members.

• Group members actively participate in consolidating and maintaining group disciplines to undertake various project activities.

• Weekly group meetings of the beneficiaries.

Mid June 2008.

Activity 3: Organization of SMO set up in each subproject.

• 2 SMOs in the two subprojects organized to coordinate and monitor JFPR project field activities implemented by implementing NGO Consortium (NGOC).

• Relevant BWDB staff at SMOs act according to their roles and responsibilities in the implementation of JFPR activities on a continuous basis.

• Activity monitoring report.

Mid-August 2008.

Activity 4: Establishment of operational JFPR Implementation Sub-committees (JISCs) in the subprojects.

• 2 operational JISCs established in each subproject chaired by head of each SMO, JFPR-Manager, Sr. Rural Sociologist, relevant JMREMP consultants, representatives of FGs and NGOC.

• JISCs act as platforms at the subproject level to review plans and progress of the project and coordinate specific services by the government line departments, and consult and resolve conflicts, if any, in project implementation on quarterly basis.

• JISCs meet on quarterly basis to perform their assigned activities & responsibilities at the subproject level.

• Activity monitoring report.

• Quarterly meeting minutes.

Starting from mid-August 2008 on quarterly basis.

51

Activities Targets Indicators Sources of verification

Timetable for M&E

Activity 5: Organization of project launching ceremonies in the subprojects.

• 1 project launching ceremony organized in each subproject to make local public, government institutions and distinguished people aware of the JFPR Project objectives and activities.

• Local people and government institutions are familiar with the JFPR Project objectives and activities.

• JFPR Project enjoys all kinds of necessary supports from local administration, institutions and communities.

• Activity monitoring report.

• Interview with the local institutions and people.

September2008.

Activity 6: Construction of platforms on BWDB lands on the riverside of PIRDP for resettlement of a number of squatter households.

• More than 100 squatter households resettled on the platforms in embankment cross section of PIRDP near Pechakola on the riverside.

• Socio-economic vulnerability of the households reduced significantly.

• Settlers on the platforms accessed stable employment and income.

• Households secured stable habitats free from eviction & other social threats reducing their vulnerability.

• Activity monitoring report.

• Interviews with the resettled households.

End- December 2009.

Component 1: Livelihood enhancement through regular employment.

• Long-term employment opportunities created for approximately 4,000 targeted households in both sub-project areas, with an overwhelming majority in PIRDP.

• Long term improvement of various poverty indices (i.e. income, health, education, social security, access to basic social services, etc.) of the targeted households.

• Poverty impact assessment report.

End-May 2010.

Sub-component/ activities: 1.1 Community-based routine

maintenance of embankments and other water management facilities.

• Long-term O & M of the

embankments, canals, and other water management facilities augmented by the Functional Groups (FGs).

• Strength and durability of the water

management facilities accelerated.

• Activity monitoring

report. • Field verification of

the physical facilities.

End-December 2008 and end-May 2010.

1.1.1 Organizing waterworks maintenance groups (WMGs).

• 15 WMGs organized in PIRDP comprising 15-20 beneficiaries in each group.

• Presence of active and functional WMGs.

• Activity monitoring report.

• Field observation of functional WMGs.

End-September 2008.

52

Activities Targets Indicators Sources of verification

Timetable for M&E

1.1.2 Skills training and capability building of the WMGs.

• All members of the WMGs acquired required skills and capacities to carry out the maintenance work of water management facilities.

1.1.3 Delivery of basic tools and

equipment to WMGs. • WMGs equipped with necessary

tools and materials for the maintenance work.

• Demonstrated abilities of the WMGs in the maintenance work.

• Activity monitoring report.

• Strong operational WMGs.

Mid-November 2008.

1.2 Social forestry, site plantation, and nursery development.

• Social forestry, site plantation, and nursery development promoted in the project areas based on self-help approach by the FGs.

• Integrity of the embankments maintained against normal natural and man-made threats.

• Income of the poor women in the relevant activities increased.

• Activity monitoring report.

• Quarterly progress reports.

End- January 2009.

1.2.1 Organizing community forestry groups (CFGs).

• 15 CFGs formed in PIRDP.

• CFGs in operation for assigned activities.

• Activity monitoring report.

• Quarterly progress reports.

End-September 2008.

1.2.2 Skills training for CFGs.

• CFGs acquired knowledge & skills social forestry.

• CFGs are in operation for assigned activities.

• Activity monitoring report.

• Quarterly progress reports.

Mid-November 2008.

1.2.3 Tree plantation for embankments and canals.

• 200 trees planted along the canals in the vicinity of the embankment to protect normal erosion.

• Income of CFG members increased.

• Visibility of tree plantation on sites. • Activity monitoring report.

• Quarterly progress reports.

End- January 2009.

1.2.4 Seeds, sapling, etc. for establishing nurseries.

• 2 nurseries developed & income of CFG members increased.

• Income of the CFG members increased by 10% compared to the past.

• Activity monitoring report.

• Quarterly progress reports.

End- January 2009.

1.3 Income generation using existing water resources.

• 10% increase in income of the FG-members by using existing public and private/community water resources/facilities.

• Increased expenditure in nutritional foods, health and education for the hh members.

• Interviews with the hh members.

• Quarterly progress reports.

End-May 2009.

53

Activities Targets Indicators Sources of verification

Timetable for M&E

1.3.1 Strengthening self-help groups (SHGs).

• 2 SHGs mobilized to involve in fish culture using available water resources/facilities.

• Presence of the motivated SHGs. • Activity monitoring report.

• Quarterly progress reports.

End-October 2008.

1.3.2 Skills training and capability building of SHGs.

• 2 SHGs members acquired knowledge & skills in pond/open water fish culture.

• Demonstrated abilities of the SHGs in fish culture for income generation.

• Activity monitoring report.

• Quarterly progress reports.

End-November 2008.

1.3.3 Re-excavation of fishponds under public & community/private ownership.

• 2 derelict ponds re-excavated for fish culture with the participation of SHGs.

• Derelict ponds made suitable for fish culture.

• Activity monitoring report.

• Quarterly progress reports.

End-May 2009.

1.3.4 Initial supplies and inputs of fisher-lings, hand tools, etc.

• SHGs used necessary initial inputs for pond/open water fish culture.

• Existence of fish culture in ponds & open water.

• Activity monitoring report.

• Quarterly progress reports.

End-June 2009.

1.4 Other income-generating activities.

• Employment and income of the FG members generated through other farm and non-farm activities.

• FG members engaged in various income generating activities as identified in group formation and orientation.

• Quarterly progress reports.

Throughout the project period after November 2008.

1.4.1 Training groups in micro-finance management.

• 2,500 beneficiaries acquired knowledge & skills micro finance management.

• Demonstrated abilities of the group members in microfinance management for various income generating activities.

• Activity monitoring report.

• Quarterly progress reports.

May 2010.

1.4.2 Micro-finance support for regular employment.

• 1,000 beneficiaries received microfinance support for various income generating activities.

• Stable employment & increased income of the credit borrowers.

• Activity monitoring report.

• Quarterly progress reports.

End-October 2010.

Component 2: Community Organization and Networking for the Poor

• 14 cohesive community-level organizations established & strengthened in the project areas to accelerate social empowerment of the targeted beneficiaries.

• Presence of 13 in PIRDP and 1 in MDIP well-functioning cohesive community-level organizations.

• Activity monitoring report.

• Quarterly progress reports.

February 2010.

54

Activities Targets Indicators Sources of verification

Timetable for M&E

Sub-component/ activities: 2.1 Management training and

networking activities by INGO.

• All beneficiary groups strengthened

to become self-reliant SHGs capable of managing themselves & building network with local institutions through a community framework linked with the UPs.

• Well-functioning community

framework truly representative of the JFPR beneficiary groups.

• Activity monitoring

report. • Quarterly progress

reports.

April 2010.

2.2 Civil works: Information and Resource Centers (IRCs).

• 2 IRCs either newly built or located in or attached to existing schools, community buildings, or offices of well-respected NGOs in PIRDP.

• IRCs facilitate information sharing & dissemination, and provide venue for training, meetings, and administrative work for FGs, committees and NGOC.

• Activity monitoring report.

• Quarterly progress reports.

February and April 2009.

2.3 Furniture, furnishing, library, and audio-visual equipment.

• IRCs equipped with necessary logistics to accelerate delivery of desired outputs.

• Logistics are in proper use. • Activity monitoring report.

• Quarterly progress reports.

February and April 2009.

Component 3: Project Management and Poverty Impact Assessment Sub-component/activities: 3.1 Reviews, reporting and

knowledge dissemination.

• Monitoring, progress or any other

review reports, including bi-annual grant status report for ADB, prepared and circulated to all concerned.

• Local institutions & various development agencies as well as populations in both subproject areas became aware of the objective, activities and development of the JFPR project, benefiting river erosion affected people.

• All concerned are aware of the

development of JFPR project at any point in time throughout the implementation period.

• Monitoring and

quarterly progress reports.

Throughout the project period.

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Activities Targets Indicators Sources of verification

Timetable for M&E

3.2 Seminars and workshops.

• 2 seminars and 5 workshops organized for the concerned local & international organizations/agencies to make them properly aware of the development of the JFPR activities and lessons learned during implementation.

• Government organizations and development agencies consider potential replication of JFPR pilot in similar other cases elsewhere in Bangladesh.

• Seminar and workshop papers/documents.

As per the specific schedule of seminars/ workshops.

3.3 Poverty impact assessment • 1 poverty impact assessment carried out towards the end of the project by external evaluators/researchers to find out socio-economic impact of JFPR project on the lives of the beneficiaries as well as its achievement in sustainable O&M of embankment and other water infrastructures of the BWDB, which is replicable in similar other cases in Bangladesh.

• The team of researchers/evaluators engaged in impact assessment study in cooperation of the PMO, IC and NGOC.

• Impact assessment report.

June 2010.

3.4 Auditing • Overall JFPR project accounts audited after closing of the project.

• Audit report complies with the internationally accepted standard.

• Project audit report.

After end of the project.

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APPENDIX 16: EXPECTED IMPACT ON POVERTY REDUCTION

1. The Japan Fund for Poverty Reduction (JFPR) Project aims to reduce poverty by optimizing the productivity of extremely poor and landless households displaced by river erosion in PIRDP and MDIP. Through skills and capacity development training, access to microfinance services, and improved organizational and social network targeted households will be expected to increase their productivity. In addition to linking the beneficiaries into the mainstream micro credit support, the JFPR Project will also enhance communities' capacity to operate their own sustainable credit delivery system. Availability of microcredit and access to specialized training will increase income and employment opportunities for women. It is anticipated that by the end of the JFPR Project, some 4,000 poor households will have access to improved social and livelihood opportunities through building their own organizational strength and network with local communities and institutions. The poverty of the above households will, therefore, reduce via permanent income and employment generation.

2. The river-erosion affected households, particularly destitute women and women-headed households suffer from different kinds of social and economic vulnerabilities, as different from other non-affected households. The squatter and floating characters of the targeted households are mainly responsible for this situation. Their vulnerabilities are manifested and intensified by their very limited access to means of livelihood, including skills and capacity development, and other social supports vis-à-vis others, which are essential to help improve the above. JMREMP provides effective riverbank protection and irrigation support for the whole community (including poor and no-poor) protected by the flood embankments, whilst the JFPR Project will enable the squatters on the embankment and other poor inside the embankment to improve their vulnerabilities and extreme poverty.

3. The JFPR Project will provide skills and capacity development training to the targeted beneficiaries to productively use the available water management facilities owned by the BWDB and other private owners in the subproject areas. This support will be reinforced and accelerated with the microfinance support to be provided by the NGO(s) to sustain beneficiaries’ employment and income opportunities in the long run. The economic empowerment will be consolidated by social mobilization, and organization and network building of the targeted households to have access to all kinds of social services provided by the relevant local institutions and government departments on a sustainable basis. In return of these supports the households will be motivated to engage in voluntary participation of O&M of all kinds of physical infrastructures developed and maintained by the main flood control and irrigation systems in the subproject areas. This will ensure physical protection to developing and sustaining livelihood opportunities of all households covered by the subprojects.