project administration manual · 2018-12-17 · d. allocation and withdrawal of loan proceeds 13 e....

Project Number: 49309 Loan Number: LXXXX November 2018

People’s Republic of China: Hubei Yichang

Comprehensive Elderly Care Demonstration Project

Project Administration Manual

ABBREVIATIONS

ADB – Asian Development Bank ADL – activities of daily living CECC – community-based elderly care center CMTCC – Caregiver and Manager Training and Career Center ECS – elderly care system EMP – environmental management plan FMA – financial management assessment GAP – gender action plan GRM – grievance redress mechanism HPFD – Hubei Provincial Finance Department ICB – international competitive bidding ICT – information and communication technology IEE – initial environmental examination LIEC – loan implementation environment consultant m2 – square meter PAM – project administration manual PIA – project impact area PIE – project implementing entity PPMS – project performance management system PRC – People’s Republic of China SDAP – social development action plan SOE – statement of expenditure SPH – Second People's Hospital of Yichang SPS – Safeguard Policy Statement YCAB – Yichang Civil Affairs Bureau JTKY – YCJT Group Kangyang Industry Investment Co. Ltd. YDSWI – Yidu Social Welfare Institute YFB – Yichang Financial Bureau YMG – Yichang Municipal Government YPMO – Yichang project management office YSWI – Yiling District Social Welfare Institute ZGCY – Zigui County Chuyuan Investment Co. Ltd. ZJJRY – Zhijiang Jinrunyuan Construction Investment Holding

Group Co.

CONTENTS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 3

A. Project Readiness Activities 3 B. Overall Project Implementation Plan 4

III. PROJECT MANAGEMENT ARRANGEMENTS 6

A. Project Implementation Organizations: Roles and Responsibilities 6 B. Key Persons Involved in Implementation 8 C. Project Organization Structure 10

IV. COSTS AND FINANCING 11

A. Cost Estimates Preparation and Revisions 11 B. Key Assumptions 11 C. Detailed Cost Estimates by Expenditure Category 12 D. Allocation and Withdrawal of Loan Proceeds 13 E. Detailed Cost Estimates by Financier 14 F. Detailed Cost Estimates by Outputs and/or Components 16 G. Detailed Cost Estimates by Year 18 H. Contract and Disbursement S-Curve 19 I. Fund Flow Diagram 20

V. FINANCIAL MANAGEMENT 21

A. Financial Management Assessment 21 B. Disbursement 22 C. Accounting 24 D. Auditing and Public Disclosure 24

VI. PROCUREMENT AND CONSULTING SERVICES 25

A. Advance Contracting and Retroactive Financing 25 B. Procurement of Goods, Works, and Consulting Services 26 C. Procurement Plan 27 D. Consultant's Terms of Reference 38

VII. SAFEGUARDS 38

VIII. GENDER AND SOCIAL DIMENSIONS 43

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 47

A. Project Design and Monitoring Framework 47 B. Monitoring 50 C. Evaluation 52 D. Reporting 53 E. Stakeholder Communication Strategy 53

X. ANTICORRUPTION POLICY 53

XI. ACCOUNTABILITY MECHANISM 53

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 54

APPENDIX: OUTLINE TERMS OF REFERENCE 55

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

The executing and implementing agencies are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan agreement. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the loan agreement shall prevail.

After ADB Board approval of the project's report and recommendations of the President (RRP),

changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM.

I. PROJECT DESCRIPTION

1. The proposed project aims to support the development of a comprehensive three-tiered elderly care system (ECS) in Yichang Municipality, Hubei Province by improving the coverage and utilization of home-based, community-based, and residential-based elderly care services. 2. The project is aligned with the following impact: a three-tiered ECS (home-based, community-based, and residential-based care services) established.1 The project will have the following outcome: coverage and utilization of elderly care services in Yichang increased. 3. Output 1: Home-based and community-based care services and facilities improved. Output 1 will (i) help identify and strengthen appropriate home-based and community-based day care services with short-stay care, and (ii) rehabilitate or construct facilities for community-based elderly care centers (CECCs). 4. Output 2: Elderly care service capacity increased and its support system improved. Output 2 will (i) improve dementia care service capacity and construct a dementia care center; (ii) develop an elderly care–information and communication technology (ICT) platform, which will support the exchange of information, monitor elderly care services, and link elderly care and health care services; and (iii) strengthen the training capacity of elderly care training institutions (Three Gorges College, and the Caregiver and Manager Training and Career Center) to meet the demands for human resources in the elderly care sector. 5. Output 3: Facilities and services supporting the integration of health care and elderly care established. The output will (i) strengthen geriatric care functions by constructing a secondary-level geriatric hospital and expanding the geriatric capacity of a tertiary-level hospital, and (ii) construct an elderly care nursing home with basic health care functions to support the continuity of care for the elderly in need. 6. Output 4: Capacity of elderly care management and project management support developed. The output includes (i) capacity development support to strengthen the management capacity of the Yichang Civil Affairs Bureau (YCAB) which is responsible for the elderly care sector, and strengthen other related bureaus and agencies to develop an ECS in Yichang,2 (ii) elderly care-related technical support to ensure that designs of respective elderly care or medical facilities and respective functions and services to be delivered under each facility are technically appropriate, and (iii) project management support for the executing and implementing agencies and project implementing entities (PIEs) to manage and implement the project.

Table 1: List of Project Components and Outputs Output Major Content PIEsa

Output 1 Community-based elderly care centers. This is to strengthen the capacity and improve the quality of home-based and community-based elderly care services and short-stay services. It will construct or rehabilitate buildings and facilities to develop 16 CECCs. The operation will be outsourced, except for the CECCs in

YSWI for one CECC in Yidu, YDSWI for two CECCs in Yiling,

1 Government of the People’s Republic of China, State Council. 2013. Opinions on Promoting the Development of

Elderly Care Service Industry (Circular No. 35). Beijing. 2 Home-based delivery care services typically cover care for activities of daily living (ADL), such as bathing and

feeding, as well as instrumental ADL, such as shopping and managing medications. Caregivers visit homes of elderly people to provide those care for ADL and/or instrumental ADL. Day care services would provide care for ADL for those elderly people who come to the CECCs. Home-based care and day care would enable family members to return to the labor market, or for elderly who do not have family members to stay home or visit CECCs to receive those needed care services.

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Output Major Content PIEsa

Yiling district and Yidu county. Respective social welfare institutes of Yiling and Yidu will operate the CECCs in their district or county.

ZGCY for one CECC in Zigu, and ZJJRY for one CECC in Zhijiang

Output 2

Dementia care center. This is to improve the capacity to provide needed elderly care services for the elders who are suffering from dementia. It will construct a new dementia care center. Operation will be outsourced. Elderly care-ICT platform. This is to develop an elderly care-ICT platform. Major functions of the elderly care-ICT platform are to support the exchange of information, monitor elderly care services, and support the linkage between elderly care services and health care services. This component will procure ICT goods, develop software, and install and configure the ICT system. Human resources for elderly care. This is to strengthen the training capacity of relevant institutions and improve the quality of elderly care human resources. It will support Three Gorges College and the CMTCC to develop and strengthen elderly care-related courses and trainers. It will also expand the facilities of CMTCC.

Output 3 Geriatric medicine care. This is to strengthen the geriatric care functions of tertiary- and secondary-level hospitals and an elderly care nursing home with basic health care and rehabilitation capacity. This component will build (relocate) a secondary-level hospital in the hospital zone and convert its function to a geriatric hospital (secondary-level). Also, an elderly care nursing home will be built next to the hospital. Also, this component will extend facility (construct a building) of a tertiary-level hospital to expand its geriatric functions. The referral systems between the tertiary-level and secondary-level geriatric hospitals, and between the geriatric hospitals and the elderly care nursing home will be also strengthened.

SPH for the expansion of its geriatric section

Output 4 Elderly care management and project management capacity. This is to provide consulting services to (i) develop an elderly care system in Yichang; (ii) ensure the technical appropriateness and quality of elderly care and medical facilities, elderly care and geriatric functions, and elderly care and geriatric services; and (iii) support project management and implementation.

CECC = community-based elderly care center, CMTCC = Caregiver and Manager Training and Career Center, ICT = information and communication technology, PIE = project implementing entity, SPH = Second People’s Hospital of Yichang, YDSWI = Yidu Social Welfare Institute, ZGCY = Zigui County Chuyuan Investment Co. Ltd., ZJJRY = Zhijiang Jinrunyuan Construction Investment Holding Group Co., YSWI = Yiling District Social Welfare Institute. a YCJT Group Kangyang Industry Investment Co. Ltd. will be responsible for day-to-day administration for those

facilities which do not have specific PIEs. Source: Asian Development Bank.

7. The operation of CECCs, except in Yidu county and Yiling district, will be outsourced to operator(s) which have sufficient experiences and capacity in operating elderly care institutions, preferably to non-profit organizations, and meet the minimum requirements.3 To ensure that appropriate operator(s) will be selected, the following minimum requirements will be included in the selection criteria of the operator(s): (i) operational experience of managing elderly care institutions for at least 2 years or more; (ii) operational experience of managing elderly care institutions with attached 50 beds or more; and (iii) compliance with the human resource requirements, prepared by YCAB. The PIEs (Yidu Social Welfare Institute or Yiling District Social Welfare Institute) will operate the CECCs in their respective county and district.

3 The public bidding procedures will be applied to select the operator(s) of CECCs, except those in Yidu county and

Yiling district, and the operator of dementia care center. The operator should hold the license of elderly care institute, certified under the Ministry of Civil Affairs. Operators, holding the license of elderly care institutes, are eligible for the existing public subsidies for elderly care operation in Yichang.

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8. The operation of the dementia care center will be also outsourced to an operator which have sufficient experiences and capacity in operating elderly care institutions, preferably non-profit organizations, and meet the minimum requirements. To ensure that an appropriate operator will be selected, the following minimum requirements will be included in the selection criteria of the operator: (i) operational experiences of managing elderly care institutions for at least 2 years or more, (ii) operational experiences of managing elderly care institutions with attached 100 beds or more, and (iii) compliance with the human resource requirements, prepared by YCAB. 9. The Three Gorges Hospital will operate the geriatric hospital (the secondary-level hospital), after relocating the facilities and converting from a general hospital to a geriatric hospital. It will establish appropriate institutional setup for the operation of the elderly care nursing home, which will be constructed next to the secondary-level geriatric hospital. The Second People’s Hospital of Yichang (SPH) will continue to operate the expanded facility and capacity of its geriatric section.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 2: Project Readiness Activities

Indicative Activities 2018 2019

Responsible Party

5 6 7 8 9 10 11 12 1 2 3 4 Establish project implementation arrangements

YMG, YPMO, implementing agency, and PIEs

Staff Review Meeting ADB

Advance contracting actions (tendering and bidding evaluation)

YPMO, implementing agency, and PIEs

FSR approval and FCUP submission

HPG

FCUP approval MOF, HPG, YMG, and ADB

Loan negotiations

NDRC

Board approval ADB

Loan signing MOF, HPG, YMG, and ADB

Government legal opinion provided

MOF, MOFA, HPG, and YMG

Loan effectiveness ADB and MOF

ADB = Asian Development Bank, FCUP = foreign capital utilization plan, FSR = feasibility study report, HPG = Hubei Provincial Government, MOF = Ministry of Finance, MOFA = Ministry of Foreign Affairs, NDRC = National Development and Reform Commission, PIE = project implementing entity, YMG = Yichang Municipal Government, YPMO = Yichang project management office. Source: Asian Development Bank.

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B. Overall Project Implementation Plan

Table 3: Investment Project Implementation Plan

Activities 2019 2020 2021 2022 2023 2024

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Output 1: Home-based and community-based care services and facilities improved 1.1 Detailed design completed 1.2 Land acquisition completed 1.3 Resettlement completed 1.4 Bidding organized and completed 1.5 Contracts awarded 1.6 Civil works completed 1.7 Procurement of goods completed Output 2: Elderly care service capacity increased and its support system improved 2.1 Dementia care center constructed 2.1.1 Detailed design completed 2.1.2 Land acquisition completed 2.1.3 Resettlement completed 2.1.4 Bidding organized and completed 2.1.5 Contracts awarded 2.1.6 Civil works completed 2.1.7 Procurement of goods completed 2.2 Elderly care-information and communication technology platform developed 2.2.1 Bidding organized and completed 2.2.2 Contracts awarded 2.2.3 Consulting services engaged and completed 2.2.4 Procurement of goods completed 2.3 Capacity of Three Gorges College strengthened 2.3.1 Bidding organized and completed 2.3.2 Contracts awarded 2.3.3 Procurement of goods completed 2.4 Capacity of Caregiver and Manager Training and Career Center strengthened 2.4.1 Detailed design completed 2.4.2 Bidding organized and completed 2.4.3 Contracts awarded 2.4.4 Civil works completed 2.4.5 Procurement of goods completed 2.4.6 Consulting services completed

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Activities 2019 2020 2021 2022 2023 2024

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Output 3: Facilities and services supporting the integration of health care and elderly care established 3.1 Three Gorges Hospital constructed 3.1.1 Detailed design completed 3.1.2 Land acquisition completed 3.1.3 Resettlement completed 3.1.4 Bidding organized and completed 3.1.5 Contracts awarded

• 3.1.6 Civil works completed

• 3.1.7 Procurement of goods completed

3.2 Strengthen geriatric functions of the People’s Hospital of Yichang (tertiary level) 3.2.1 Detailed design completed 3.2.2 Bidding organized and completed 3.2.3 Contracts awarded 3.2.4 Civil works completed 3.2.5 Procurement of goods completed 3.3 Complete nursing home with rehabilitation and medical-nursing 3.3.1 Detailed design completed 3.3.2 Bidding organized and completed 3.3.3 Contracts awarded 3.3.4 Civil works completed 3.3.5 Procurement of goods completed Project Management Recruitment of startup consultants Recruitment of project management firm

Inception/Annual/Midterm review Loan closing procedures

Source: Asian Development Bank.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

10. Yichang Municipal Government (YMG) is the executing agency. It is responsible for overall planning and implementation of the project, and has experience in the preparation, implementation, and management of projects funded by ADB. Under YMG, Yichang project management office (YPMO) has been established to supervise the overall project implementation and coordinate among bureaus and agencies. The director of YCAB acts as YPMO director, and senior officials from the YCAB, Yichang Development and Reform Commission, and Yichang Finance Bureau (YFB) act as deputy directors of YPMO to ensure effective senior level interdepartmental coordination. The project leading group, chaired by the vice mayor, has also been set up to act as a steering committee. 11. YCJT Group Kangyang Industry Investment Co. Ltd. (JTKY) is the implementing agency and responsible for overall project implementation, covering all project components. It will set up a project financial account; and compile all project-related documents and statements for project administration, auditing, and evaluation. 12. There are five PIEs which will be responsible for day-to-day administration.4 The Second People's Hospital of Yichang (SPH) will be responsible for day-to-day administration for the expansion of its geriatric section. Yiling District Social Welfare Institute (YSWI) and Yidu Social Welfare Institute (YDSWI) will be responsible for day-to-day administration of constructing CECCs in their respective district and county, while Zhijiang Jinrunyuan Construction Investment Holding Group Co. (ZJJRY) and Zigui County Chuyuan Investment Co. Ltd (ZGCY) for CECCs in their respective counties. JTKY will also act as PIE for the day-to-day administration of the remaining constructions and project activities. Under the supervision of YPMO, all PIEs will submit all required project documents to JTKY. 13. Project management roles and responsibilities of the key agencies and bodies involved in the project are summarized in Table 4. The project organization diagram is in Figure 1.

Table 4: Project Implementation Roles and Responsibilities Project Implementation Organizations Management Roles and Responsibilities 1. Executing agency: Yichang

Municipal Government (YMG) (i) Establish project management arrangements (ii) Overall accountable for ensuring project success

2. Project Leading Group (i) Provide overall project direction and any required policy guidance (ii) Oversee the project implementation (iii) Support cross-bureau/agency dialogue (iv) Review project progress and provide strategic advice to support

effective implementation 3. Yichang project management

office (YPMO) (i) Supervise the implementing agency and project implementing entities’

(PIE) activities and provide guidance and support (ii) Ensure the institutional coordination among relevant bureaus and

agencies (iii) Ensure the coordination between the implementing agency and PIEs,

including submission of project documents, such as financial statements, from PIEs to the implementing agency

4 Led by YCJTL (parent unit), the Kangyang Group has been set up and is composed of five PIEs (member units).

Yiling District Social Welfare Institute and Yidu Social Welfare Institute are public institutes, and Zhijiang Jinrunyuan Construction Investment Holding Group Co., and Zigui County Chuyuan Investment Co. Ltd. are 100% state-owned, county-level enterprises.

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Project Implementation Organizations Management Roles and Responsibilities

(iv) Coordinate project procurement, including the annual updating of the procurement plan and disbursement estimates

(v) Supervise project implementation activities and elderly care capacity building activities and consulting services

(vi) Ensure establishment and operation of the project’s grievance redress mechanism

(vii) Ensure monitoring and report project progress and performance, including environmental management plan, resettlement, and social and gender safeguards and action plans

(viii) Ensure external project auditing (ix) Review and submit reports on project activities, as required, to the

Asian Development Bank (ADB) (x) Coordinate project evaluation activities, as needed

4. Implementing agency: YCJT Group Kangyang Industry Investment Co. Ltd. (JTKY)

(i) Responsible for the overall project implementation (ii) Compile all project financial statements and other relevant documents,

and maintain it for project implementation and auditing (iii) Engage a procurement agency to support all procurement under the

project covering all components (iv) Review procurement documents of all project components and submit

them to ADB (v) Review all loan withdrawal applications, covering all components, and

submit them to Yichang Finance Bureau (YFB) for its review and sign-off

(vi) Engage design institute, construction supervision, and required monitoring institutes

(vii) Prepare and submit reports on project activities, as required, to YPMO 5. Project implementing entities:

(i) Second People’s Hospital of Yichang (SPH)

(ii) Yiling District Social Welfare Institute (YSWI)

(iii) Yidu Social Welfare Institute (YDSWI)

(iv) Zhijiang Jinrunyuan Construction Investment Holding Group Co. (ZJJRY)

(v) Zigui County Chuyuan Investment Co. Ltd. (ZGCY)

(i) Under the supervision of YPMO, organize land acquisition and resettlement activity in accordance with arrangements set out in the resettlement plan

(ii) Responsible for day-to-day project administration covering all procurements of goods, civil works, and consulting services as well as disbursement preparation

(iii) Responsible for procurement and contract management (supported by the engaged procurement agent) under the overall supervision of YPMO; submit the procurement documents to the implementing agency for submission to ADB

(iv) With relevant consulting support engaged under the project, conduct project implementation training, such as financial management and procurement training, for ensuring effective and timely project management and implementation

(v) Project accounting and financial management and submit project financial statements and other relevant documents to the implementing agency

(vi) Ensure quality in project activities necessary to meet objectives (vii) Under the supervision of YPMO, coordinate and ensure environmental

management plan implementation, as needed (viii) Under the supervision of YPMO, ensure resettlement costs will be

made available timely (ix) Under the supervision of YPMO, ensure counterpart financing will be

made available timely (x) Prepare withdrawal applications, and submit them to the implementing

agency (xi) Implement social development and gender action plan (xii) Establish and maintain project monitoring and reporting systems and

report progress regularly to the implementing agency and YPMO 6. Yichang Finance Bureau (YFB) (i) Ensure counterpart funding

(ii) Review and endorse PIEs’ project budgets and financial projections (iii) Review and endorse withdrawal applications and submit them to

HPFD (iv) On behalf of the executing agency, ensure the project financial

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Project Implementation Organizations Management Roles and Responsibilities

statements to be audited annually are in accordance with appropriate auditing standards acceptable to ADB

7. Yichang Civil Affairs Bureau (YCAB)

(i) Develop an office under YCAB to be responsible for coordination, management, and development of the elderly care sector in Yichang

8. Hubei Provincial Finance Department (HPFD)

(i) Provide the overall project guidance (ii) Establish and operate the advance account (iii) Review and approve (sign off) the project withdrawal applications and

submit them to ADB 9. ADB (i) Assist YPMO and the implementing agency by providing guidance at

each stage of the project for smooth implementation in accordance with the implementation arrangements

(ii) Review all the documents that require ADB approval (iii) Conduct periodic loan review, midterm review, and project completion

missions (iv) Monitor compliance with loan covenants including safeguard

requirements (v) Timely process withdrawal applications and release eligible funds (vi) Post on ADB website the updated project information documents for

public disclosure, and the safeguards documents as per disclosure provision of the ADB’s Safeguard Policy Statement (2009)


B. Key Persons Involved in Implementation

Executing Agency Yichang Municipal Government LV Lin

Secretariat Telephone: 13972602998 Email address:

Implementing Agency YCJT Group Kangyang Industry Investment Co. Ltd Project Implementing Entities Zigui County Chuyuan Investment Co. Ltd.

Office Address: No. 102 Riverside Avenue, Xiling District,

Yichang City 宜昌市西陵区沿江大道 102 号

ZHANG Wen Head of Marketing Department Telephone: 13872587110 Email address: [email protected] Office Address: Shengli 2nd Road, Wujia District, Yichang

City 宜昌市伍家区胜利二路

SUN Ting Manager of Project Management Department Telephone: 13997693258 Email address: [email protected] Office Address: Room 315, Admin Building, Vehicle Administration Office, Jingangcheng New District, Zigui

County 秭归县金缸城新区车管所综合楼 315 室

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Yidu Social Welfare Institute

Zhijiang Jinrunyuan Construction Investment Holding Group Co.

Yiling District Social Welfare Institute

Second People's Hospital of Yichang

LI Wei Dean Telephone: 13986819218 Email address: [email protected] Office Address: No. 11, Lucheng Wuyi Avenue, Yidu City

宜都市陆城五宜大道 11 号

YUAN Juqiao Officer Telephone: 18307130655 Email address: [email protected] Office Address: No. Majiadian Sports Road, Zhijiang City

枝江市马家店体育路 6 号

LI Ping Dean Telephone: 13972585809 Email address: Office Address: No. 8, Huangjin Road, Yiling District,

Yichang City 宜昌市夷陵区黄金路 8 号

LIU Bo Dean Assistant Telephone: 18908601976 Email address: [email protected] Office Address: No. 21, Xiling 1st Road, Xiling District,

Yichang City 宜昌市西陵区西陵一路 21 号

Asian Development Bank

Urban and Social Sectors Division, East Asia Department

Sangay Penjor Director, EASS Telephone No.: +63 632 6148 Email address: [email protected]

Mission Leader

Hiroko Uchimura-Shiroishi Senior Social Sector Specialist, EASS Telephone No.: +63 632 6996 Email address: [email protected]

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C. Project Organization Structure

Figure 1: Investment Project Organizational Structure

EA

Yichang Municipal Government (YMG)

Yichang Project Management Office (YPMO)

Yiling District Social Welfare

Institute (YSWI)

(CECCs in Yiling District)

Second People's

Hospital of Yichang (SPH) (expansion of the geriatric

section of SPH)

PIE

YCJT Group Kangyang Industry Investment Co. Ltd (JTKY)a

Yidu Social Welfare Institute (YDSWI) (CECC in

Yidu County)

PIE

Zhijiang Jinrunyuan

Construction Investment

Holding Group Co (ZJJRY)

(CECC in Zhijiang County)

Zigui County Chuyuan

Investment Co. Ltd. (ZGCY)

(CECC in Zigui County)

IA

PIE PIE PIE

EA = executing agency, IA = implementing agency, PIE = project implementing entity, CECC = community-based elderly care center. a JTKY will also act as PIE for the day-to-day administration of the remaining construction and project activities.

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IV. COSTS AND FINANCING A. Cost Estimates Preparation and Revisions 14. The project investment cost is estimated at $305.05 million, including taxes and duties of $22.97 million. ADB loan will cover taxes and duties on items financed by ADB. The total cost includes physical and price contingencies and financial charges during implementation. During implementation, costs will be updated in the procurement plan once a year to reflect the actual contract prices, contract variations, and updated cost estimates. B. Key Assumptions

15. The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: CNY6.3325 = $1.00 (as of 28 April 2018). (ii) Price contingencies based on expected cumulative inflation over the

implementation period are as follows:5 Table 5: Escalation Rates for Price Contingency Calculationa

Item 2019 2020 2021 2022 2023 Foreign rate of price inflation

2.0% 1.7% 1.7% 1.8% 1.7%

Domestic rate of price inflation

2.3% 2.4% 2.5% 2.5% 2.5%

a Interest during construction for the ordinary capital resources loan has been computed at the 5-year United States dollar fixed swap rate plus an effective contractual spread of 0.5% and maturity premium of 0.2%. Commitment charges for the ordinary capital resources loan are 0.15% per year to be charged on the undisbursed loan amount.


5 Physical contingencies computed at 5% of base cost, excluding training center and capacity building subcomponents.

Price contingencies computed at average 1.7% on foreign exchange costs and 2.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

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(iii) Detailed Cost Estimates by Expenditure Category

Table 6: Detailed Cost Estimates by Expenditure Category

Item

(CNY million) ($ million) % of Base Cost

% of Total Cost

Foreign Exchange

Local Currency Total

Foreign Exchange

Local Currency Total

A. Base Cost 1. Civil works 206.7 620.1 826.9 32.6 97.9 130.6 50% 43%

2. Equipment and materials 262.1 65.5 327.6 41.4 10.4 51.7 20% 17%

3. Capacity building, consulting services, and study tour 42.4 0.0 42.4 6.7 0.0 6.7 3% 2% 4. Land acquisition, resettlement compensation, and

assets purchase 0.0 339.9 339.9 0.0 53.7 53.7 20% 18%

5. Project management cost 0.0 124.1 124.1 0.0 19.6 19.6 7% 6%

Subtotal (A) 511.2 1,149.7 1,660.9 80.7 181.6 262.3 100% 86% B. Contingencies

1. Physical 19.8 56.6 76.3 3.1 8.9 12.1 5% 4%

2. Price 21.7 92.7 114.5 3.4 14.6 18.1 7% 6%

Subtotal (B) 41.5 149.3 190.8 6.6 23.6 30.1 11% 10% C. Financial Charges During Implementation

1. Interest during construction 76.1 0.0 76.1 12.0 0.0 12.0 5% 4%

2. Commitment charges 3.9 0.0 3.9 0.6 0.0 0.6 0% 0%

Subtotal (C) 80.1 0.0 80.1 12.6 0.0 12.6 5% 4% Total Project Cost (A+B+C) 632.8 1,298.9 1,931.7 99.9 205.1 305.1 116% 100%

Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

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(iv) Allocation and Withdrawal of Loan Proceeds

Table 7: Allocation and Withdrawal of Loan Proceedsa

No. Category Total Amount Allocated for ADB Financing ($)

Percentage and Basis for Withdrawal from Loan

Account

1 Works, equipment, and capacity buildingb 150,000,000

Up to 100% of total expenditure

claimeda

Total 150,000,000

a Detailed categories and disbursement percentages to be used during disbursement are in Table 8. b Subject to the condition for withdrawal described in paragraph 7 of Schedule 3. Source: Asian Development Bank.

Table 8: Detailed Allocation and Withdrawal of Loan Proceeds Category ADB Financing

No. Item

Total amount allocated for ADB financing ($ million)

Percentage and Basis for Withdrawal from the Loan Account

Category Subcategory 1 Civil Works 117,110,000 1.1a Civil works for 11 CECCs in Yichang city 20,510,000 100.0% of total expenditures claimed 1.1b Civil works for 1 CECC in Zigui county 3,950,000 99.6% of total expenditures claimed 1.1c Civil works for 1 CECC in Yidu county 4,740,000 97.1% of total expenditures claimed 1.1d Civil works for 2 CECCs in Yiling district 3,950,000 82.7% of total expenditures claimed 1.1e Civil works for 1 CECC in Zhijiang county 3,950,000 61.8% of total expenditures claimed 1.2 Civil works for component 2 (dementia care center) 7,240,000 100.0% of total expenditures claimed 1.3a Civil works for Second People’s Hospital of Yichang 31,580,000 99.7% of total expenditures claimed 1.3b Civil works for Three Gorges Hospital and a nursing home 33,620,000 99.2% of total expenditures claimed 1.4 Civil works for component 5 (Caregiver and Manager Training and

Career Center) 7,570,000 100.0% of total expenditures claimed 2 Equipment and materials 26,200,000 100.0% of total expenditures claimed

3 Capacity building, consulting services, training, workshops, and study toursa 6,690,000 100.0% of total expenditures claimed

TOTAL 150,000,000 Source: Asian Development Bank. a The cost of all capacity building related activities, including the capacity building for Three Gorges College and the Caregiver and Management Training and Career Center, are covered under this item.

14

(v) Detailed Cost Estimates by Financier

Table 9: Detailed Costs Estimates by Financier

Item Total Costs

ADB Government Project Entities

Amount % of Cost

Amount % of Cost

Amount % of Cost

Category Category Category A. Base Cost

1. Civil works 130.6 117.1 89.7% 5.5 4.2% 7.9 6.1%

1.1 Component 1 (16 CECCs) 44.4 37.1 83.5% 3.9 8.9% 3.4 7.6%

1.1a Yichang City (11 CECCs) 20.5 20.5 100.0% 0.0 0.0% 0.0 0.0%

1.1b Zigui County (1 CECC) 3.9 3.9 99.6% 0.0 0.0% 0.0 0.4%

1.1c Yidu County (1 CECC) With ADB support 4.9 4.7 97.1% 0.1 2.9% 0.0 0.0%

Government-financed 3.0 0.0 0.0% 3.0 100.0% 0.0 0.0%

1.1d Yiling District (2 CECCs) 4.8 3.9 82.7% 0.8 17.3% 0.0 0.0%

1.1e Zhijiang County (1 CECC) With ADB support 6.4 3.9 61.8% 0.0 0.0% 2.4 38.2%


1.2 Component 2 (Dementia care center) 7.2 7.2 100.0% 0.0 0.0% 0.0 0.0%

1.3 Component 3 (2 geriatric hospitals and 1 nursing hospital) 71.3 65.2 91.4% 1.5 2.1% 4.6 6.5%

1.3a SPH With ADB support 31.7 31.6 99.7% 0.0 0.0% 0.1 0.3%


1.3b TGH With ADB support 33.9 33.6 99.2% 0.3 0.8% 0.0 0.0%


1.4 Component 5 (CMTCC) 7.56 7.6 100.0% 0.0 0.0% 0.0 0.0%

2. Equipment and materials 51.7 26.2 50.7% 13.1 25.3% 12.4 24.1%

2.1 Component 1 (16 CECCs) 2.1a Yichang City (11 CECCs) 5.5 5.5 100.0% 0.0 0.0% 0.0 0.0%

2.1b Zigui County (1 CECC) 0.7 0.0 0.0% 0.0 0.0% 0.7 100.0%

2.1c Yidu County (1 CECC) 1.3 0.0 0.0% 1.3 100.0% 0.0 0.0%

2.1d Yiling District (2 CECCs) 0.5 0.0 0.0% 0.5 100.0% 0.0 0.0%

2.1e Zhijiang County (1 CECC) 1.9 0.0 0.0% 0.0 0.0% 1.9 100.0%

2.2 Component 2 (Dementia care center) 2.5 2.5 100.0% 0.0 0.0% 0.0 0.0%

2.3 Component 3 (2 geriatric hospitals and 1 nursing home)

2.3a SPH 9.9 0.0 0.0% 0.0 0.0% 9.9 100.0%

2.3 b TGH With ADB support 1.3 1.3 100.0% 0.0 0.0% 0.0 0.0%


2.4 Component 4 (Elderly care-ICT) 9.1 9.1 100.0% 0.0 0.0% 0.0 0.0%

2.5 Component 5 (TGH, CMTCC) 7.9 7.9 100.0% 0.0 0.0% 0.0 0.0%

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Item Total Costs

ADB Government Project Entities

Amount % of Cost

Amount % of Cost

Amount % of Cost

Category Category Category

3.Capacity building, consulting services, training, workshops, and study toursa 6.7 6.7 100.0% 0.0 0.0% 0.0 0.0%

4.Land acquisition, resettlement compensation, and assets purchase 53.7 0.0 0.0% 50.3 93.8% 3.34 6.2%

5.Project management cost 19.6 0.0 0.0% 13.4 68.4% 6.2 31.6%

Subtotal (A) 262.3 150.0 57.2% 82.3 31.4% 29.9 11.4% B. Contingencies

1. Physical 12.1 0.0 0.0% 8.6 71.2% 3.5 28.8%

2. Price 18.1 0.0 0.0% 12.9 71.2% 5.2 28.8%

Subtotal (B) 30.1 0.0 0.0% 21.5 71.2% 8.7 298.8% C. Financial Charges During Implementation

1. Interest during construction 12.0 0.0 0.0% 8.7 72.3% 3.3 27.8%

2. Commitment charges 0.6 0.0 0.0% 0.5 74.9% 0.2 25.2%

Subtotal (C) 12.6 0.0 0.0% 9.2 72.4% 3.5 27.6%

Total Project Cost (A+B+C) 305.1 150.0 49.2% 112.9 37.0% 42.1 13.8% % of Total Project Cost 100.0% 49.2% 37.0% 13.8% ADB = Asian Development Bank, CECC = community-based elderly care center, CMTCC = Caregiver and Manager Training and Career Center, SPH = Second People's Hospital of Yichang, TGH = Three Gorges Hospital. Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

a The cost of all capacity building related activities, including the capacity building for Three Gorges College and the Caregiver and Management Training and Career Center, are covered under this item.

16

(vi) Detailed Cost Estimates by Outputs and/or Components

Table 10: Detailed Cost Estimates by Outputs ($ million)

Item Total Cost

Home-based and community-based care services and facilities improved

Elderly care service capacity increased

and its support system improved

Facilities and services supporting the

integration of health care and elderly care

established

Capacity of elderly care management

and project management support

developed

Amount % of Cost Category Amount

% of Cost Category Amount

% of Cost Category Amount

% of Cost Category

A. Base Cost

1. Civil works 130.6 44.4 34% 14.8 11% 71.3 55% 0.0 0%

2. Equipment and materials 51.7 9.9 19% 19.4 38% 22.4 43% 0.0 0%

3. Capacity building, consulting services, and study tour 6.7 0.0 0% 3.2 48% 0.0 0% 3.5 52%

4. Land acquisition, resettlement compensation, and assets purchase 53.7 27.8 52% 3.9 7% 22.0 41% 0.0 0%

5. Project management cost 19.6 7.3 37% 2.6 13% 9.7 49% 0.0 0%

Subtotal (A) 262.3 89.4 34% 43.9 17% 125.4 48% 3.5 1% B. Contingencies 1. Physical 12.1 4.5 37% 1.3 11% 6.3 52% 0.0 0%

2. Price 18.1 6.7 37% 1.9 11% 9.4 52% 0.0 0%

Subtotal (B) 30.1 11.2 37% 3.3 11% 15.7 52% 0.0 0% C. Financial Charges During

Implementation 1. Interest during construction 12.0 3.2 27% 3.4 28% 5.1 42% 0.3 3%

2. Commitment charges 0.6 0.2 30% 0.1 22% 0.3 46% 0.0 2%

Subtotal (C) 12.6 3.4 27% 3.5 28% 5.4 42% 0.3 3% Total Project Cost (A+B+C) 305.1 103.9 34% 50.7 17% 146.5 48% 3.9 1%


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Table 11: Detailed Cost Estimates by Components ($ million)

Item Total Cost

Community-based elderly care center

Dementia care center

Geriatric medicine and

nursing service

Elderly care-information and communication

technology platform

Elderly care human

resources development

Capacity building for elderly care

management

Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category A. Base Cost

1. Civil works 130.6 44.4 34% 7.2 6% 71.3 55% 0.0 0% 7.6 6% 0.0 0%

2. Equipment and materials 51.7 9.9 19% 2.5 5% 22.4 43% 9.1 17% 7.9 15% 0.0 0%

3. Capacity building, consulting services, and study tour 6.7 0.0 0% 0.0 0% 0.0 0% 2.4 36% 0.8 12% 3.5 52%

4. Land acquisition, resettlement compensation, and assets purchase 53.7 27.8 52% 0.7 1% 22.0 41% 0.0 0% 3.2 6% 0.0 0%

5. Project management cost 19.6 7.3 37% 1.2 6% 9.7 49% 0.0 0% 1.4 7% 0.0 0%

Subtotal (A) 262.3 89.4 34% 11.6 4% 125.4 48% 11.5 4% 20.9 8% 3.5 1% B. Contingencies 1. Physical 12.1 4.5 37% 0.6 5% 6.3 52% 0.0 0% 0.7 6% 0.0 0%

2. Price 18.1 6.7 37% 0.9 5% 9.4 52% 0.0 0% 1.1 6% 0.0 0%

Subtotal (B) 30.1 11.2 37% 1.5 5% 15.7 52% 0.0 0% 1.8 6% 0.0 0% C. Financial Charges During

Implementation 1. Interest during construction 12.0 3.2 27% 0.8 6% 5.1 42% 0.9 8% 1.6 13% 0.3 3%

2. Commitment charges 0.6 0.2 30% 0.1 7% 0.3 46% 0.1 7% 0.1 9% 0.0 2%

Subtotal (C) 12.6 3.4 27% 0.8 6% 5.4 42% 1.0 8% 1.7 13% 0.3 3% Total Project Cost (A+B+C) 305.1 103.9 34% 13.9 5% 146.5 48% 12.5 4% 24.4 8% 3.9 1%


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(vii) Detailed Cost Estimates by Year

Table 12: Detailed Cost Estimates by Year ($ million)

Item Total Cost 2019 2020 2021 2022 2023 2024 A. Base Cost

1. Civil works 130.6 0.0 10.9 34.9 36.9 31.9 15.9

2. Equipment and materials 51.7 1.0 1.1 12.4 8.7 16.2 12.2

3. Capacity building, consulting services, and study tour 6.7 0.0 1.5 1.5 1.7 1.5 0.6

4. Land acquisition, resettlement compensation, and assets purchase 53.7 16.2 32.9 4.6 0.0 0.0 0.0

5. Project management cost 19.6 1.8 2.9 4.4 4.8 4.1 1.7

Subtotal (A) 262.3 18.9 49.2 57.8 52.2 53.7 30.4 B. Contingencies 1. Physical 12.1 0.8 2.3 2.6 2.5 2.6 1.2

2. Price 18.1 0.6 2.3 3.2 4.3 5.4 2.3

Subtotal (B) 30.1 1.4 4.6 5.8 6.8 8.0 3.5 C. Financial Charges During Implementation 1. Interest during construction 12.0 0.0 0.2 0.9 2.9 4.6 3.4

2. Commitment charges 0.6 0.2 0.2 0.1 0.1 0.0 0.0

Subtotal (C) 12.6 0.2 0.4 1.0 2.9 4.6 3.4 Total Project Cost (A+B+C) 305.1 20.6 54.3 64.6 61.9 66.3 37.4 % Total Project Cost 100.0% 6.7% 17.8% 21.2% 20.3% 21.7% 12.3%


19

(viii) Contract and Disbursement S-Curve

Table 13: Contract Awards and Disbursements ($ million, by quarter)

Year Projected Contract Awards ($ million) Projected Disbursement ($ million)

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 2019 0.0 0.0 0.9 11.6 12.5 0.0 0.0 0.0 1.2 1.2 2020 17.6 3.9 10.1 2.4 33.9 0.8 2.3 2.2 3.1 8.4 2021 27.2 3.8 24.5 3.7 59.1 6.1 6.1 9.2 9.2 30.5 2022 20.3 1.3 0.0 0.0 21.6 3.4 10.0 15.0 12.0 40.4 2023 7.6 11.4 3.9 0.0 22.9 5.9 12.0 15.0 12.6 45.5 2024 0.0 0.0 0.0 0.0 0.0 12.0 11.9 0.0 0.00 23.9 Total 72.7 20.3 39.5 17.6 150.0 28.1 42.4 41.4 38.1 150.0

Q = quarter. Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

Figure 2: Contract Awards and Disbursements Projections

($ million)

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160

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Contract Awards Disbursement

20

(ix) Fund Flow Diagram Figure 3: Fund Flow Diagram

ADB = Asian Development Bank, PIE = project implementing entity, PRC = People’s Republic of China, SPH = Second People’s Hospital of Yichang, YDSWI = Yidu Social Welfare Institute, JTKY = YCJT Group Kanyang Industry Investment Co. Ltd., YSWI = Yiling District Social Welfare Institute, ZGCY = Zigui County Chuyuan Investment Co. Ltd., ZJJRY = Zhijiang Jinrunyuan Construction Investment Holding Group Co. a The advance account is established and administered by Hubei Provincial Finance Department. b The executing and implementing agencies and PIEs will establish and manage separate project accounts. c The PRC Government will make the loan available, through Hubei Provincial Government, to YMG on the same

terms and conditions as those of the ADB loan. d Yichang Finance Bureau reviews withdrawal applications and submits them to Hubei Provincial Finance Department

for its approval and signs off. Hubei Provincial Finance Department submits withdrawal applications to ADB.

16. The Government of the People’s Republic of China (PRC) is the borrower of the loan and will make the loan available, through the Hubei Provincial Government, to YMG on the same

Withdrawal Application

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terms and conditions as those of the ADB loan. YMG will make the loan proceeds available to the implementing agency, SPH, Yiling district finance bureau, Yidu county finance bureau, Zigui county finance bureau, and Zhijiang county finance bureau. Through Zigui county finance bureau, Zhijiang county finance bureau, Yidu county finance bureau, and Yiling district finance bureau, the loan proceeds will be made available to the respective PIEs. 17. The PIEs will provide counterpart funds for their respective subcomponents as follows: SPH for the subcomponent under component 3 (expansion of geriatric section in SPH), YSWI for 2 CECCs in Yiling district, YDSWI for CECC in Yidu county, ZJJRY for CECC in Zhijiang county, ZGCY for CECC in Zigui county, and JTKY for all remaining components and subcomponents. YMG will be responsible for ensuring that all counterpart funds are made available by the implementing agency and the PIEs for project implementation in a timely manner.

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

18. The financial management assessment (FMA) was conducted in February–March 2018 in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due Diligence: A Methodology Note.6 The FMA considered the capacity of Hubei Provincial Finance Department (HPFD), YMG (the executing agency), JTKY (the implementing agency), and the PIEs; including funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. 19. Based on the assessment, the key financial management risks identified particularly for the implementing agency and PIEs are (i) implementation risk, due to lack of familiarity with ADB disbursement procedures and requirements, which could delay project implementation; (ii) compliance risk, due to limited experience with ADB financial management requirements, relating to accounting, reporting, and auditing, which may delay project reporting and the identification of issues on the use of loan proceeds; (iii) financing risk, due to delays in provision of, or inadequate counterpart funding, which could delay project implementation; and (iv) construction and operational risks due to limited experience in construction and operations management, which will impact project progress and quality of the services to be provided. 20. It was concluded that the overall pre-mitigation financial management risk of the executing and implementing agencies is moderate. HPFD and YMG have previously demonstrated the capacity to administer the use of an advance fund and in administering the statement of expenditures (SOE) procedure. The executing agency have agreed to implement an action plan as key measures to address the deficiencies. The financial management action plan is provided in Table 14. Financial management risks and risk mitigation measures will be reviewed jointly by the executing and implementing agencies and ADB and updated throughout the life of the project.

6 ADB. 2005. Financial Management and Analysis of Projects. Manila; and ADB. 2009. Financial Due Diligence: A

Methodology Note. Manila.

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Table 14: Financial Management Action Plan Action Responsibility Timing 1. Training on ADB financial management requirements,

specifically on accounting, reporting, auditing, disbursement procedures and requirements

YPMO, implementing agency, PIEs, and startup consultants

3 months before loan effectiveness 6 months after loan effectiveness for further training

2. Prepare financial management manual with detailed accounting procedures to ensure effective management and control of the project funds and assets

YPMO, implementing agency, PIEs, and startup consultants

1 month after loan effectiveness

3. Close monitoring to quickly identify potential issues in counterpart funding

YPMO, implementing agency, PIEs, and ADB

Annually during project implementation

4. Financial management and procurement experts of the project to provide support and training for the financial and other relevant staff in the implementing agency and PIEs

YPMO to oversee implementation of consulting services, implementing agency, and PIEs for implementation

6 months after loan effectiveness

ADB = Asian Development Bank, PIE = project implementing agency, YPMO = Yichang project management office. Source: Asian Development Bank.

B. Disbursement

1. Disbursement Arrangements for ADB Funds 21. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time),7 and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.8 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.

22. A combination of direct payment by ADB, reimbursement, and advance fund procedures may be used for disbursement of the loan. Responsibilities for different disbursement activities can be summarized as follows: (i) the implementing agency will prepare project-level disbursement projections based on individual projections prepared by each PIE; (ii) individual PIEs will be responsible for arranging counterpart financing; (iii) PIEs will prepare disbursement claims and collect supporting documents, which will be submitted to the implementing agency and YPMO; and (iv) YPMO will confirm eligibility for ADB financing and request YFB to initiate the disbursement through HPFD. HPFD is responsible for making payments from the advance account (para. 23) and is also responsible for sending loan withdrawal applications to ADB to initiate either advance account replenishment or, where appropriate, to initiate direct payments by ADB to foreign-based consultants or suppliers. 7 The handbook is available electronically from the ADB website (English version: http://www.adb.org/documents/ loan-

disbursement-handbook; Chinese version: https://www.adb.org/zh/documents/loan-disbursement-handbook). 8 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning

23

23. Advance fund procedure. An advance account will be established in a commercial bank and maintained by HPFD for making disbursements from the ADB loan. The currency of the advance account will be the US dollar. The advance account is to be used exclusively for ADB’s share of eligible expenditures. The HPFD is accountable and responsible for proper use of advances to the advance account. Based on well established procedures in the PRC, HPFD will make any (i) foreign currency payments direct from the advance account, and (ii) convert the remaining funds in local currency and make these available to the YFB. PIEs will prepare withdrawal applications and submit them to the implementing agency for review. The implementing agency will submit the reviewed withdrawal applications to YFB for review and endorsement. Upon endorsement, YFB will, wherever possible, initiate direct payment to the relevant contractors, suppliers, and consultants. 24. The total outstanding advance to the advance account should not exceed the estimate of ADB’s share of expenditures to be paid through the advance account for the forthcoming 6 months. The YFB through HPFD may request for initial and additional advances to the advance account based on an Estimate of Expenditure Sheet9 setting out the estimated expenditures to be financed through the account for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by the HPFD, YFB, or the implementing agency as appropriate, in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time) when liquidating or replenishing the advance account.

25. Statement of expenditure procedure. The SOE procedure may be used for reimbursement of eligible expenditures or liquidation of advances to the advance account. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.

26. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is stipulated in the Loan Disbursement Handbook (2017, as amended from time to time). Individual payments below such amount should be paid (i) by the YFB and subsequently claimed to ADB through reimbursement, or (ii) through the advance fund procedure, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements (CPD) 10 system is encouraged for submission of withdrawal applications to ADB.

27. No withdrawals will be made from the Loan Account until the Borrower shall cause YMG to certify that the Project Implementation Agreements shall have been executed and delivered.

2. Disbursement Arrangements for Counterpart Fund 28. The executing agency shall, and shall cause the implementing agency and the PIEs, in line with the cost estimate prepared for the subprojects, to make available, promptly and as

9 Estimate of Expenditure sheet is available in Appendix 8A of ADB’s Loan Disbursement Handbook (2017, as

amended from time to time), 10 The CPD facilitates online submission of withdrawal application to ADB, resulting in faster disbursement. The forms

to be completed by the Borrower are available online at https://www.adb.org/documents/client-portal-disbursements-guide.

24

needed, the necessary and stipulated counterpart funds as well as facilities, services, land, and other resources. C. Accounting 29. The YMG will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following accrual-based accounting following the equivalent national accounting standards. The implementing agency, supported as required by YFB, HPFD, and individual PIEs, will prepare project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices. D. Auditing and Public Disclosure 30. YMG will cause the project financial statements to be audited in accordance with equivalent national standards adopted by Supreme Audit Institution’s Regulations, by an independent auditor acceptable to ADB. The project auditing should be conducted at the level of each entity responsible for maintaining the primary documents of the transactions including payment vouchers, etc. Hence, the project audit will be conducted at each PIE. Then, each audited project financial statement with the respective auditors’ opinions will be complied by the implementing agency. The implementing agency will prepare a cover letter for the compiled audited project statements; and the implementing agency should present in the cover letter that the total amount of disbursements and provided counterparts’ financing indicated in each of the financial statements is equal to the actual amount of total disbursements and counterpart financings covering all project components during the audited period. The implementing agency will submit the compiled audited project financial statements with auditors’ opinions and the mentioned cover letter, covering all audited financial statements, to the executing agency (YMG). YMG will submit the audited project financial statements, together with the auditor’s opinion in the English language, and all those documents to ADB within 6 months of the end of the fiscal year. 31. YMG will also cause the implementing agency and PIEs’ annual financial statements for the project to be audited in accordance with equivalent national standards and by an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion and management letter will be presented in the English language to ADB within 1 month after their approval by the relevant authority. 32. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the loan were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable). 33. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor. 34. The government, the executing agency, and the implementing agency have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and

25

acceptable quality of the audited project financial statements.11 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. 35. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.12 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.13

VI. PROCUREMENT AND CONSULTING SERVICES A. Advance Contracting and Retroactive Financing

36. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Guidelines (2015, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, the executing and implementing agencies, and PIEs have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. 37. Advance contracting. Advance contracting will include (i) tendering and bid evaluation for goods packages, (ii) awarding of contracts, and (iii) recruitment of consultants. The issuance of invitations to bid under advance contracting will be subject to ADB’s approval. In preparing the bidding documents under the advance contracting arrangement, the YMG, through the YPMO, must ensure that the provisions of this PAM are complied with, and all loan assurances agreed at loan negotiations are adhered to. These assurances include monitoring and reporting requirements for contractors, compliance with labor laws and regulations, specific measures in the environmental management plan (EMP), and social development action plan and gender action plan. 38. Retroactive financing. Retroactive financing could only apply up to the equivalent of 20% of the total ADB loan, with respect to eligible expenditures incurred prior to loan effectiveness but not more than 12 months before the signing of the Loan Agreement. The borrower, executing and 11 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months.

(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.

12 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications 13 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2011.

Public Communications Policy. Paragraph 97(iv) and/or 97(v).

26

implementing agencies, and PIEs have been advised that approval of advance contracting and retroactive financing does not commit ADB to subsequently approve the project or to finance the procurement costs, and ADB will not finance expenditures paid by the borrower prior to loan effectiveness, even if advance contracting is approved, unless retroactive financing has also been approved by ADB. B. Procurement of Goods, Works, and Consulting Services

39. All procurement of goods and works funded wholly or partly by ADB will be undertaken in accordance with ADB’s Procurement Guidelines (2015, as amended from time to time). 40. Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB’s Procurement Guidelines (2015, as amended from time to time). 41. International competitive bidding (ICB) procedures will be used for civil works contracts estimated to exceed $40 million, and for goods contracts estimated to exceed $10 million. Contracts estimated at less than the ICB thresholds would be procured following national competitive bidding (NCB) procedures in accordance with the PRC Tendering and Bidding Law (1999), subject to modifications as agreed with ADB and consigned in the NCB annex to the procurement plan. Contracts for works estimated to cost less than the ICB threshold values, but from $100,001; and contracts for goods estimated to cost less than the ICB threshold values, but from $100,001; will be procured based on NCB procedures. Shopping will be used for contracts for procurement of works and goods estimated at $100,000 and below. 42. Procurement under ICB procedures will use the single-stage one-envelope modality. Procurement shall use the latest ADB standard bidding documents which can be downloaded from ADB’s website. 43. For procurement under NCB, the following provisions will apply: (i) the advertisement may be limited to the national press, an official gazette or an open access website; (ii) bidding shall follow the standard bidding documents issued by the Ministry of Finance and approved by ADB; and (iii) bidding documents may be only in the Chinese language, and CNY may be used for the purpose of bidding and payment. Procurement under NCB and shopping will be subject to the provisions of the NCB annex of the procurement plan. 44. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The outline terms of reference for consulting services are in the Appendix of this PAM. 45. An estimated 394 person-months (29 international, 365 national) of consulting services are required to (i) develop an elderly care system in Yichang; (ii) ensure that designs of respective elderly care or medical facilities and respective functions and services to be delivered under each facility are technically appropriate; (iii) support project management and implementation including project startup consultants and external monitoring consultants; and (iv) develop the elderly care-ICT platform. 46. Eligibility of state-owned enterprises. Under the ADB Procurement Guidelines, bidders that are SOEs must meet related eligibility requirements. In order to establish eligibility, the SOEs or institutions shall demonstrate, inter alia, that they (i) are legally and financially autonomous, (ii) operate under commercial law, and (iii) are not dependent agencies of the governments.

27

47. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C.

C. Procurement Plan

48. PIEs will carry out the administration of procurement. PIEs will prepare procurement documents and submit to the implementing agency for its review. Upon confirming the documents, the implementing agency will submit them to ADB for review and approval. Upon ADB approval, PIEs will conduct and complete the bidding processes with the support of procurement consultants, engaged under the project, the implementing agency and under the supervision of YPMO. Under supervision of YPMO, PIEs will submit all required project documents to JTKY, the implementing agency. 49. Scope of procurement. A procurement plan, indicating procurement or selection methods, estimated costs of contracts, thresholds, and review procedures for goods, works and consulting service contract packages, is summarized below. The procurement plan shall be executed as it has been approved by ADB. The procurement plan shall be updated annually or as needed throughout the duration of the project. The contract packages are categorized into three categories including goods, works, and consulting services. Some of the equipment and materials are included in the works contracts to reduce contract interface and minimize the contract management risks, based on the nature of the equipment and materials and their interaction with relevant works. Other equipment and materials that are independent of the civil works are listed as goods contracts. The technical assistance, training, and studies designed to strengthen the capacity of the YPMO, the implementing agency, and PIEs during implementation and operation of the project are packaged under consulting services contracts. 50. Packaging. The project has 26 NCB packages, 2 shopping packages, 5 consulting services packages for firms, and some packages for individual consultants. A summary of the contract packages is provided below.

Table 15: Basic Data

Project Name: Hubei Yichang Comprehensive Elderly Care Demonstration Project Project Number: 49309 Approval Number: TBD Country: People’s Republic of China Executing Agency: Yichang Municipal Government Project Procurement Classification: B Implementing Agency: YCJT Group Kangyang Industry

Investment Co. Ltd. (JTKY) Project Implementing Entities: (i) Second People’s Hospital of Yichang (SPH), (ii) Yiling District Social Welfare Institute (YSWI), (iii) Yidu Social Welfare Institute (YDSWI), (iv) Zhijiang Jinrunyuan Construction Investment Holding Group Co. (ZJJRY), (v) Zigui County Chuyuan Investment Co., Ltd. (ZGCY)

Procurement Risk: Moderate

Project Financing Amount: $305.05 million ADB Financing: $150 million Non-ADB Financing: $155.05 million

Project Closing Date: 31 December 2024

Date of First Procurement Plan: 28 May 2018 (loan fact-finding)

Date of this Procurement Plan: 13 November 2018

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A. Methods, Thresholds, Review and 18-Month Procurement Plan

51. ADB’s Project Administration Instructions (PAI) 3.02 provides a range of ADB prior review threshold for each procurement risk level (low risk, medium risk, and high risk). The procurement risk level established for the PRC is medium risk and the range of ADB prior review threshold for medium risk for works, plant, and goods is up to $10 million. Since the PRC is a large country, the higher end of the threshold range ($10 million) is proposed as ADB’s prior review threshold for this project, provided that the first contract of each category will be under prior review and be developed into model templates for other contracts, regardless of the contract amount.

Procurement of Goods and Works

Procedure Threshold Comments Prior review Above $10 million The first international competitive bidding (ICB) contract for works,

the first ICB contract for goods, the first national competitive bidding (NCB) contract for works, and the first NCB contract for goods will be for prior review by ADB irrespective of the estimated value. ADB’s prior review and no objection are required for each step of procurement (invitation for bids, bidding document, bid evaluation report, draft negotiated contract, signed contract, contract variations).

Post review Below $10 million ADB approves a contract award after the contract is signed based on the review of the signed contract and bid evaluation report.

1. Procurement and Consulting Methods and Thresholds

52. Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works

Method Threshold Comments International competitive bidding (ICB) for works Above $40 million For Prior review International competitive bidding (ICB) for goods Above $10 million For Prior review National competitive bidding (NCB) for works From $100,001 up to

$40 million Prior review of the first bidding package and all packages $10 million or above

National competitive bidding for goods From $100,001 up to $10 million

Prior review for the first bidding package

Shopping for works Up to $100,000 Shopping for goods Up to $100,000

Consulting Services

Method Comments

Quality- and cost-based selection (QCBS) 80:20 with full technical proposal for above $1 million and simplified technical proposal for below $1 million, prior review

Consultants’ qualifications selection (CQS) Up to $200,000, prior review Individual consultant selection (ICS) Prior review

2. Goods and Works Contracts Estimated to Cost $1 Million or More 53. The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

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Package Number General Description

Estimated Value

($ million) Procurement

Method

Review

(Prior/Post) Bidding

Procedure

Advertisement Date

(quarter/year) Comments

Civil Works

A. To be procured by YCJT Group Kangyang Industry Investment Co. Ltd. (JTKY)

YC-XL-C01 Community-based elderly care center (CECC) at Sanjiangyuan

1.15 NCB Post 1S1E Q3/2019

YC-TB-C9 Caregiver and Manager Training and Career Center 7.57 NCB Post 1S1E Q3/2019

YC-DC-C04 Dementia Care Center 7.24 NCB Post 1S1E Q4/2019

B. To be procured by Second People’s Hospital of Yichang (SPH)

YC-2H-C01 Building construction 27.30 NCB Prior 1S1E Q3/2019 First civil works

package

C. To be procured by Yiling District Social Welfare Institute (YSWI)

YC-YL-C01 CECC-Building construction 4.77 NCB Post 1S1E Q3/2019

D. To be procured by Yidu Social Welfare Institute (YDSWI)

YC-YD-C01 CECC-Main building construction 4.88 NCB Post 1S1E Q3/2019

E. To be procured by Zhijiang Jinrunyuan Construction Investment Holding Group Co. (ZJJRY)

YC-ZJ-C01 CECC-Main building construction 6.38 NCB Post 1S1E Q4/2019

F. To be procured by Zigui County Chuyuan Investment Co., Ltd (ZGCY)

YC-ZG-C01 CECC-Main building construction 3.96 NCB Post 1S1E Q3/2019

Subtotal 63.25

Goods

A. To be procured by YCJT Group Kangyang Industry Investment Co Ltd (JTKY)

YC-TC-E20 Equipment for elderly nursing training center 1.89 NCB Prior 1S1E Q2/2019 First goods package

YC-TC-E21

Equipment of practical training center (elderly medical treatment simulation, rehabilitation simulation, oral medicine simulation, elderly-medical technology, nursing preclinical medicine

3.80 NCB Post 1S1E Q2/2019

Subtotal 5.69

Total 68.94 1S1E = single stage one envelope, NCB = national competitive bidding, Q = quarter. Source: Asian Development Bank.

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3. Consulting Services Contracts Estimated to Cost $100,000 or More

54. The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Package Number

General Description

Estimated Value ($)

Recruitment Method

Review (Prior/Post)

Advertisement Date (quarter/year) Type of Proposal Comments

YC-CS-01

Project startup consultants

380,000 ICS Prior Q1/2019

Several contracts, advance contracting

YC-CS-02

Elderly care -Technical support

370,000 QCBS (80:20)

Prior Q1/2019 STP International and national, ADB-financed (100%)

YC-CS-03

External monitors

470,000 QCBS (80:20)

Prior Q1/2019 STP International and national, ADB-financed (100%)

YC-CS-04

Project management and capacity development

1,230,000 QCBS (80:20)

Prior Q3/2019

FTP

International and national, ADB-financed (100%)

YC-ICT-S01

Consulting services to prepare the elderly care-ICT Platform

200,000 CQS Prior Q3/2019

STP

National, ADB-financed (100%)

Total 2,650,000 ADB = Asian Development Bank, ICS = individual consultant selection, CQS = consultant’s qualifications selection, QCBS = quality- and cost-based selection, FTP = full technical proposal, STP = simplified technical proposal. Source: Asian Development Bank.

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

55. The following table groups smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.


Estimated Value

($ million) Number of Contracts

Procurement Method

Review (Prior / Post)

Bidding Procedure

Advertisement Date Comments

B. Indicative List of Packages Required Under the Project

56. The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

31


Estimated Value

($ million)

Estimated Number of Contracts

Procurement Method


Bidding Procedure Comments

Civil Works A. To be procured by YCJT Group Kangyang Industry Investment Co. Ltd. (JTKY)

YC-WJG-C02 Community-based elderly care center (CECC) at Shangheyuan

1.57 1 NCB Post 1S1E Q1/2020

YC-ZX-C03 CECC at other 9 sites (may split into several contracts based on the sites availability)

17.79 Several NCB Prior 1S1E Q1/2021

YC-GH-C05 Geriatric hospital-main building 24.67 1 NCB Prior 1S1E Q1/2020 YC-NH-C07 Nursing home-main building 9.22 1 NCB Post 1S1E Q1/2020

B. To be procured by The Second Peoples Hospital of Yichang (SPH) YC-2H-C02 Air conditioning and ventilation system 4.37 1 NCB Post 1S1E Q3/2020

Goods A. To be procured by YCJT Group Kangyang Industry Investment Co. Ltd (JTKY)

YC-XL-E01 Furniture, home appliances for CECC-at Sanjiangyuan

0.36 1 NCB Post 1S1E Q2/2020

YC-XL-E02 Nursing and rehabilitation equipment for CECC-at Sanjiangyuan

0.05 1 Shopping Post 1S1E Q2/2020

YC-WJG-E03 Furniture, home appliances for CECC- at Shangheyuan

0.40 1 NCB Post 1S1E Q4/2020

YC-WJG-E04 Nursing and rehabilitation equipment for CECC at Shangheyuan

0.05 1 Shopping Post 1S1E Q4/2020

YC-ZX-E05

Furniture, home appliances for CECC-other 9 sites (may split into several contracts based on the sites availability)

4.26 1 NCB Post 1S1E Q4/2021

YC-ZX-E06

Nursing and rehabilitation equipment for CECC-other 9 sites (may split into several contracts based on the sites availability)

0.41 Several NCB Post 1S1E Q4/2021

YC-DC-E07 Equipment and facilities for Dementia Care Center

2.48 1 NCB Post 1S1E Q3/2020

YC-GH-E08 Elevators for geriatric hospital 0.95 1 NCB Post 1S1E Q3/2020 YC-NH-E14 Elevators for nursing home 0.32 1 NCB Post 1S1E Q3/2020 YC-TB-E16 Equipment and facilities for CMTCC 2.20 1 NCB Post 1S1E Q4/2020 YC-ICT-E17 IT Infrastructure for EC-IT Platform 3.66 1 NCB Post 1S1E Q4/2020

YC-ICT-E18 Smart devices for elderly care service delivery

4.23 1 NCB Post 1S1E Q4/2020

YC-ICT-E19 Smart end-user devises for the elderly in special need

1.16 1 NCB Post 1S1E Q4/2020

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Consulting Services


Estimated Value

($ million)


Recruitment Method


Type of Proposal Comments

YC-CS-05 Support to develop an elderly care system in Yichang

0.68 1 ICS Prior N/A Q1/2020

YC-ICT-S02 Elderly Care-ICT platform software development

2.21 1 QCBS Prior FTP Q1/2020

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C. List of Awarded and Ongoing, and Completed Contracts 57. The following tables list the awarded and ongoing contracts, and completed contracts.

Awarded and Ongoing Contracts Goods and Works

Package Number

General Description

Estimated Value

Awarded Contract

Value Procurement

Method

Advertisement Date (quarter/

year)

Date of ADB Approval of

Contract Award Comments

Consulting Services

Package Number

General Description

Estimated Value

Awarded Contract

Value Recruitment

Method


year)

Date of ADB Approval of

Contract Award Comments

Completed Contracts

Goods and Works

Package Number

General Description

Estimated Value

Contract Value

Procurement Method


year)

Date of ADB

Approval of Contract Award

Date of Completion Comments

Consulting Services

Package Number

General Description

Estimated Value

Contract Value

Recruitment Method


year)

Date of ADB

Approval of Contract Award

Date of Completion Comments

D. Non-ADB Financing 58. The following table lists goods, works and consulting services contracts over the life of the project, financed by non-ADB sources.

Goods and Works

General Description

Estimated Value

($ million)


Procurement Method Comments

Civil Works A. To be procured by YCJT Group Kangyang Industry Investment Co. Ltd. (JTKY)

YC-GH-C06 Geriatric Hospital-10KV power supply and distribution 0.88 1 Government procedure

Q3/2020

YC-NH-C8 Nursing Home-10KV power supply and distribution 0.38 1 Government procedure

Q3/2020


YC-2H-C03 Medical air supply system 1.44 1 Government procedure

Q3/2020

YC-2H-C04 Information system and IC card system 1.89 1 Government procedure

Q3/2020

YC-2H-C05 10KV power supply and distribution system 1.18 1 Government procedure

Q3/2020

34

General Description

Estimated Value

($ million)



C. To be procured by Yiling District Social Welfare Institute (YSWI) None D. To be procured by Yidu Social Welfare Institute (YDSWI)

YC-YD-C02 Elderly friendly decoration 1.74 1 Government procedure

Q4/2019

YC-YD-C03 Heating and ventilation system 0.84 1 Government procedure

Q4/2019

YC-YD-C04 Electrical system 0.43 1 Government procedure

Q4/2019

E. To be procured by Zhijiang Jinrunyuan Construction Investment Holding Group Co., Ltd. (ZJJRY)

YC-ZJ-C02 Outdoor works 0.34 1 Government procedure

Q1/2021

YC-ZJ-C03 10KV power supply and distribution system 0.57 1 Government procedure

Q1/2020

F. To be procured by Zigui County Chuyuan Investment Co., Ltd (ZGCY) None Goods A. To be procured by YCJT Group Kangyang Industry Investment Co Ltd (JTKY)

YC-GH-E09 Surgical equipment for geriatric hospital 3.34 1 Government procedure

Q3/2022

YC-GH-E10 Non-surgical equipment for geriatric hospital 4.28 1 Government procedure

Q3/2022

YC-GH-E11 Medical image equipment for geriatric hospital 2.19 1 Government procedure

Q3/2022

YC-GH-E12 Office equipment for geriatric hospital 0.30 1 Government procedure

Q3/2022

YC-GH-E13 Software for geriatric hospital 0.41 1 Government procedure

Q3/2022

YC-NH-E15 Nursing and rehabilitation equipment for nursing home 0.79 1 Government procedure

Q3/2022


YC-2H-E01 Elevators 0.82 1 Government procedure

Q4/2019

YC-2H-E02 Medical image equipment 1.92 1 Government procedure

Q1/2022

YC-2H-E03 First-aid devices 2.68 1 Government procedure

Q1/2022

YC-2H-E04 Endoscopic equipment 0.74 1 Government procedure

Q1/2022

YC-2H-E05 Hemodialysis equipment 0.65 1 Government procedure

Q1/2022

YC-2H-E06 Inspection equipment 0.98 1 Government procedure

Q1/2022

YC-2H-E07 Supply room equipment 0.45 1 Government procedure

Q1/2022

YC-2H-E08 Rehabilitation equipment 1.07 1 Government procedure

Q1/2022

YC-2H-E09 Ambulances 0.16 1 Government procedure

Q1/2022

YC-2H-E10 Office equipment 0.38 1 Government procedure

Q1/2022

C. To be procured by Yichang Yiling District Social Welfare Institute (YSWI)

YC-YL-E01 Elevators 0.24 1 Government procedure

Q3/2019

YC-YL-E02 Furniture, home appliances 0.23 1 Government procedure

Q3/2020

35

General Description

Estimated Value

($ million)



YC-YL-E03 Nursing and rehabilitation equipment 0.01 1 Government procedure

Q3/2020

D. To be procured by Yidu Social Welfare Institute (YDSWI)

YC-YD-E01 Elevators 0.39 1 Government procedure

Q4/2019

YC-YD-E02 Kitchen, furniture, home appliances 0.91 1 Government procedure

Q2/2020

E. To be procured by Zhijiang Jinrunyuan Construction Investment Holding Group Co., Ltd. (ZJJRY)

YC-ZJ-E01 Elevators 0.16 1 Government procedure

Q4/2019

YC-ZJ-E02 Furniture, home appliances 1.45 1 Government procedure

Q4/2020

YC-ZJ-E03 Nursing and rehabilitation equipment 0.18 1 Government procedure

Q4/2020

YC-ZJ-E04 Training equipment 0.08 1 Government procedure

Q4/2020

F. To be procured by Zigui County Chuyuan Investment Co., Ltd (ZGCY)

YC-ZG-E01 Furniture, home appliances 0.72 1 Government procedure

Q4/2020

Consulting Services

General Description Estimated

Value ($)


Recruitment Method

Comments

None

36

National Competitive Bidding A. Regulation and Reference Documents 59. For all national competitive bidding (NCB) procurement, the standard NCB model document issued by the Ministry of Finance of the People’s Republic of China (PRC), as amended from time to time, should be used.14 The procedures to be followed for NCB shall be those set forth in The Government Procurement Law of PRC approved on 29 June 2002 and Law of the PRC on Bid Invitation and Bidding of the PRC promulgated on 30 August 1999 with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines. B. Procurement Procedures

1. Competitive Bidding Procedure (Procurement Law Article 26 and Law on Bidding Article 10)

60. Public tendering is the acceptable method of government procurement, and public invitation is the accepted bid invitation mode.

2. Eligibility

61. The eligibility of bidders shall be as defined under section I of the Procurement Guidelines; accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in section I of the Guidelines, as amended from time to time.

3. Advertising

62. All invitations to prequalify or to bid shall be advertised in the national press (China Daily Newspaper) or a free and open access website (www.chinabidding.com). Such advertisement shall be made in sufficient time for prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. In any event, a minimum preparation period of 28 days shall be given. The preparation period shall count (i) from the date of advertisement, or (ii) when the documents are available for issue, whichever date is later. The advertisement and the prequalification and bidding documents shall specify the deadline for such submission.

4. Bidding Period

63. The minimum bidding period is 28 days prior to the deadline for the submission of bids.

5. Participation by Government-Owned Enterprises

64. Government-owned enterprises in the Borrower’s country may be permitted to bid if they can establish that they (i) are legally and financially autonomous, (ii) operate under commercial law, and (iii) are not a dependent agency of the Borrower/Project Executing Agency.

6. Rebidding

65. Re-bidding shall not be allowed solely because the number of bids is less than three (3).

14 The latest version of the model NCB document dated November 2015 can be downloaded at the following link:

http://gjs.mof.gov.cn/pindaoliebiao/xzzx/.

37

C. Bidding Documents

7. Qualification Requirements

66. Qualification requirements of bidders and the method of evaluating the qualification of each bidder shall be specified in detail in the bidding documents, and in the prequalification documents if the bidding is preceded by a prequalification process.

8. Bid Submission and Opening 67. Bidders shall be allowed to submit bids by mail or by hand. 68. All bids shall be opened in public; all bidders shall be afforded an opportunity to be present (either in person or through their representatives) at the time of bid opening, but bidders shall not be required to be present at the bid opening.

9. Bid Evaluation and Award 69. No bid may be rejected solely on the basis that the bid price falls outside any standard contract estimate, or margin or bracket of average bids established by the Borrower/Project Executing Agency. 70. Each contract shall be awarded to the lowest evaluated responsive bidder, that is, the bidder who meets the appropriate standards of capability and resources and whose bid has been determined (a) to be substantially responsive to the bidding documents and (b) to offer the lowest evaluated cost. The winning bidder shall not be required, as a condition of award, to undertake responsibilities for work not stipulated in the bidding documents or otherwise to modify the bid as originally submitted.

10. ADB Policy Clauses 71. Each contract financed with the proceeds of the loan shall provide that the suppliers and contractors shall permit ADB, at its request, to inspect their accounts and records relating to the performance of the contract and to have said accounts and records audited by auditors appointed by ADB. 72. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question. 73. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract.

38

D. Consultant's Terms of Reference

74. The outline of Terms of Reference is in the Appendix.

VII. SAFEGUARDS 75. Safeguard classifications. Potential impacts of the project are classified as B for environment, B for involuntary resettlement, and C for impacts on indigenous peoples. The project has been screened, categorized, and assessed to reflect the PRC and its provincial laws, regulations and guidelines, and also the safeguards policies of ADB as outlined in the Safeguard Policy Statement (SPS) (2009).15

76. Grievance redress mechanism. YPMO ensures that each PIE will establish grievance redress mechanisms (GRMs) at the respective subcomponent level within 60 days of loan effectiveness date, as detailed in the environmental management plan (EMP) and resettlement plan, respectively. The GRMs set out procedures for managing public concerns and complaints and safeguard issues that may arise during project implementation. The GRMs will be established before the start of any construction work of the subprojects. Each GRM will provide a set of procedures to receive, record, and resolve concerns or/and complaints of affected persons and communities. It will provide contact details of the focal point at YPMO, the implementing agency, PIEs, contractors’ teams, and other relevant safeguard authorities within project administration authorities. All contractors will be briefed by YPMO and/or the implementing agency on safeguard requirements of subprojects and the role of GRMs. Multiple entry points to each GRM will be available including verbal and written complaints, hotline number, anonymous drop boxes, and email contacts. YPMO will report on complaints and the degree of their resolution to ADB in quarterly project progress reports and safeguard monitoring reports.

77. Prohibited investment activities. Pursuant to the SPS, ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. YPMO, the implementing agency, and PIEs will ensure that their investments comply with the applicable national laws and regulations and with the prohibited investment activities list of ADB.

A. Environment 78. The project is classified as category B for environment. An initial environmental examination (IEE) report, including an environmental management plan (EMP) was prepared and disclosed on the ADB website on 19 July 2018. The IEE incorporates the results of the domestic EIA that will be submitted for approval by the Yichang environment protection bureau. The IEE complies with ADB’s policies and requirements including ADB's SPS. The IEE concludes that the project’s anticipated environmental impacts are insignificant and can be mitigated through full and effective implementation of the EMP. 79. Environmental assessment, reports, and approvals. The project IEE and EMP form the basis of the official loan agreement between ADB and the Borrower. The EMP is the key document to be used by the YMG and contractors to manage and report on the environmental impacts of project construction and operation. The EMP defines the mitigation measures, monitoring program, GRMs, public consultation process, and roles and responsibilities for the

15 ADB. 2009. Safeguard Policy Statement. Manila.

39

project agencies. The YMG holds final responsibility for implementation and compliance with the EMP. 80. The YPMO and implementing agency will be responsible for ensuring the project is designed, constructed, and operated in accordance with (i) the national and local government environmental, health and safety laws, regulations, procedures, and guidelines; (ii) ADB’s SPS; and (iii) the IEE and EMP. 81. An environmental officer will be assigned by the YPMO to coordinate implementation of the EMP. The effectiveness of the mitigation measures listed in the EMP will be evaluated through environmental monitoring and reporting, and periodic review missions of ADB. Environmental monitoring will be conducted by the government environment monitoring stations and certified monitoring companies of project components. Assurances for environmental safeguards have been prepared and are included in the loan and project agreements. 82. Environmental benefits and impacts. The project will improve the environment by having modernized elderly care facilities, with updated treatment facilities for wastewater and solid/medical wastes, thus improving the quality of life of the city. 83. Potential environmental impacts of the project during construction and operation stages include air, noise, water quality, solid waste, and disturbance to local communities and traffic. Impacts will be avoided and/or mitigated through the implementation of the EMP. The IEE concludes that full and effective implementation of the EMP will result in minor residual impacts that are within the limits of the PRC standards defined in the EMP. 84. Public consultation. Information disclosure and public consultations were conducted with key stakeholders in accordance with the PRC Guideline on Public Consultation in EIA (2006) and ADB’s SPS. Public concerns about noise, dust, solid waste, wastewater, sludge, odor, traffic, medical waste storage and transport, and indoor air qualities were documented and have been addressed in the project design and EMP. 85. A project-specific GRM will be established as part of the EMP to receive and manage any community concerns which may arise due to the project. The YMG will have final responsibility for management, implementation, and reporting of the GRM. The environmental officer, assigned by YPMO, will coordinate the GRM tasks to ensure that a full record is maintained of grievances received (both written and oral) and how these are resolved. This record will be made available to ADB review missions and summary information contained in the annual project progress reports. The circumstances that would trigger corrective action to be taken and requirements for corrective action plan, are described in the GRM. The GRM procedures, reporting timelines, roles and responsibilities of all agencies, are described in the EMP. 86. Environment budget. The YPMO shall ensure to make available the necessary budget and human resources by each of PIEs and the implementing agency to fully implement the EMP. Also, YPMO will ensure to engage external monitoring consultants under the project. If any unanticipated environmental risks and impacts, which may include any change in scope of work or a design change to a subproject arise during construction or operation of the project that were not considered in the IEE and/or EMP, the YPMO, through the implementing agency, should promptly inform ADB in writing of the occurrence of such risks or impacts, with detailed description of the event and the proposed action plan for incorporation in the updated EMP as necessary. The total estimated cost of EMP implementation is CNY10.33 million.

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87. Climate risk and vulnerability assessment. A climate risk and vulnerability assessment found that all project sites would have a medium risk to climate change impact. Under the supervision of YPMO, the implementing agency and PIEs will ensure that the detailed project designs by the design institutes incorporate the adjustments to engineering designs derived from assessment results, as proactive adaptation measures. Antiflooding designs and evacuation devices are the principal measurements to antagonize predicted climate events. Heating and cooling system will be installed within all project sites to help senior citizens and practitioners to adapt extreme temperature conditions. Conserving existing buildings, new energy and resource saving can be the three main method to mitigate greenhouse gas emission. B. Involuntary Resettlement 88. The involuntary resettlement categorization of the project is category B. The land of 94.28 mu will be affected: collectively owned land 62.86 mu (66.67%) and state-owned land 31.42 mu (33.33%).16 The area of demolished houses is 15,313 square meters (m2) including 5,433 m2 of residential houses and about 9,880 m2 are non-residential buildings. The project will directly affect 269 persons, including 170 persons in 44 households, 51 employees in 3 enterprises, and 4 renters with 48 persons. Three households with 10 persons will be affected by the project’s occupation of their houses. Twenty-three households with 88 persons will be affected by the land acquisition. Eighteen households with 72 persons will be affected by the land acquisition and house demolition. 89. Compensation for acquired land. Compensation standards for land acquisition include land compensation and resettlement subsidy. The range of compensation standards are from CNY49,000/mu to CNY58,380/mu in Yichang. Compensation standards for vegetable gardens range from CNY3,646/mu to CNY4,600/mu in Yichang.

Table 16: Compensation Standards for Acquired Collectively Owned Land (CNY/mu)

District

Affected Village Name

Cultivated Land Pond

Garden Plots

Unused Land

Rural Residential

Land Road Dianjun Fanjiahu 53,900 53,900 53,900 24,500 49,000 49,000

Bawangdian 53,900 / 53,900 24,500 49,000 49,000

Tucheng / / 53,900 / / / Gaoxin Liaojiawan

community 58,380 58,380 / / 53,800 /


90. Compensation for demolished residential houses. The compensation standard for a brick-concrete housing is CNY600/m2, and for a brick-timber-tile housing is CNY370/m2. The transition subsidy is CNY8/m2 per month, and the standard of relocation subsidy is CNY20/m2 per household/month. The affected persons could purchase houses at a centralized resettlement community at the rate of CNY560/m². The compensation paid for demolished houses is sufficient to buy relocation houses in their area of residence. The gap between the comprehensive cost price which is CNY2,200/m² and the basic resettlement house price which is CNY560/m² will be paid by the land users. 91. Compensation for demolition of three enterprises. The compensation consists of the following: (i) compensation for assets including land, houses, ground attachments, machines, and

16 A mu is a Chinese unit of measurement (1 mu = 666.667 square meters).

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equipment at replacement cost; and (ii) compensation for business losses due to production or business suspension. It will be determined according to the actual conditions and the duration of shutdown, and the actual business loss and the expected business loss and income loss of the employees, subsidies including removal subsidy,17 temporary transition subsidy, and relocation reward, if the enterprise completes the removal of debris, as planned. The compensation for the three enterprises will be calculated at CNY1,000,000/mu. The actual compensation fee will be decided on the basis of the assessment price report of an independent assessment agency and the results of the negotiations between the two parties. 92. The compensation for the affected renters. The preliminary agreement is as follows: (i) pay penalty fee to the affected renters, based on the damages because of the breach of clause of the agreement; (ii) pay compensation for the improvements assessed; (iii) provide notice to renters to leave at least 6 months before project implementation; (iv) plan CECCs’ implementation schedule to commensurate with the expiration of the contract period; (v) assist the building owners to find new places to continue their business, if needed; and (v) give the affected employees priority in recruiting workers at CECCs. 93. Livelihood and restoration scheme. The average land loss rate per affected household is 28.19% and agricultural income accounts for less than 10% of the total household income. Land compensation will bring considerable cash income to them. The main measures for income rehabilitation include: (i) provision of employment opportunities during the project construction and operational phases, (ii) promotion and development of new enterprises and self-employed secondary and tertiary businesses, and (iii) provision of occupational training and employment information free of charge. Through these measures, affected persons can maintain or acquire more stable incomes to restore and enhance their living standards. 94. The YPMO will inform the affected enterprises/renters early so that they can rebuild the enterprises elsewhere before the demolition of the enterprises and other buildings so that they can restore production as early as possible. If the enterprises/renters want to continue their business, their employees could also continue to work at new enterprises. If the enterprises and building rentals are shut down after the building demolition, the employees will get compensation for transition, and free-of-charge vocational trainings and work recommendations which will help them to find employment. Meanwhile, there are many enterprises in Dianjun District, which could provide employment to some of the former employees. JTKY, Yiling District Welfare Center, and the PIEs agreed that those affected employees who do not want to move together with the original employers could have priority in getting employment at the CECCs. 95. Resettlement cost. The estimated cost of land acquisition and resettlement is CNY87.11 million, including contingencies. Resettlement implementation will be scheduled to precede the project construction schedules. Resettlement implementation will be completed prior to project construction works. Under the supervision of YPMO, the PIEs will ensure that such funds are made available on a timely manner.

Table 17: Summary of Resettlement Cost

No. Item Amount

(CNY10,000) Percentage in Total

Investment (%) A Basic expenses 6,663.73 76.49 1 Land acquisition expenses 2,758.94 31.67 2 Compensation for house demolition and resettlement 706.79 8.11 3 Compensation for demolished 3 enterprises 3,142.00 36.07

17 The removal subsidy is calculated by considering transport distance, measurements, and materials.

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No. Item Amount

(CNY10,000) Percentage in Total

Investment (%)

4 Penalty fees for affected renters of the buildings demolished

56.00 0.64

B Relevant expenses 1,048.14 12.03

1 Agency fees for land acquisition and house demolition (1.8% of the basic cost)

119.95 1.38

2 Expenses for external resettlement monitoring and evaluation (calculated as 36 person-months)

148.12a 1.70

3 Other related expenses for demolition and clearing, engagement and assessment and auditing body (calculated as per 1% of basic expenses)

66.64 0.76

4 Construction expenses for resettlement buildingsb 713.43 8.19

C Administration fees for resettlement (calculated as per 5% of basic expense)

333.19 3.82

D Unexpected expenses (calculated as per 10% of basic expenses)

666.37 7.65

Total 8,711.42 100.00 a These expenses have been included in the loan. b Computation of construction expenses for resettlement buildings in Dianjun District: (comprehensive cost of

resettlement houses – basic price of resettlement house) * house demolition area = (CNY2,200/m2 - CNY560/m2)*4,129 m2 = CNY6,771,888. Computation of construction expenses for resettlement buildings in Gaoxin District: (comprehensive cost of resettlement houses – price of resettlement house) * house demotion area = (CNY2,200/m2 – CNY1,245/m2) * 379.52 m2 = CNY362,441.


96. Tenants. There are four occupants of houses that are renting and their contracts will expire between 2019 and 2022. But because of the project, these contracts may get terminated before their expiry. Their resettlement requirements are included in the resettlement plan to reduce their income loss impacts to a minimum. 97. Temporary displacement. About 210 old persons live in two welfare institutions at the Xiling District Social Welfare Institute and at the Yiling District Welfare Home. Both institutions will be renovated as CECCs of the project. The Xiling District Government and Yiling District Government and the old persons’ families have come to an agreement through consultations that those district governments will provide residential facilities for the respective affected elderly people at other welfare institutions during the transition. After the renovation of facilities as new CECCs, the affected elderly persons can choose to move to the new CECCs or to remain in the welfare home where they stay during the above-mentioned renovation. Those district governments have also agreed that the current charges will not be raised at the new institutions for them. 98. The government will ensure that (i) the resettlement plan agreed between the government and ADB is updated based on final technical design and submitted to ADB for review and concurrence prior to land acquisition activities, and implemented in accordance with applicable government laws and regulations and ADB’s SPS; in case of any inconsistency between government laws and ADB’s policy, the latter will prevail; (ii) whenever there are changes to sites, land acquisition, number of affected people, valuation, there will be no lowering of standards or entitlements; (iii) meaningful consultations will continue to be carried out and that all affected persons are given adequate opportunity to participate in resettlement planning, updating, and implementation; (iv) counterpart funds for land acquisition and resettlement activities are provided according to the budget and project schedule; (v) any additional costs in excess of the resettlement plan budget estimates are met within the project schedule; (vi) the YPMO, the implementing agency, and all PIEs will designate adequate staff and resources to supervise and

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monitor updating and implementation of the resettlement plans and submit semiannual internal monitoring reports to ADB; and (vii) a functional and effective grievance mechanism is established. 99. The implementing agencies will not handover a specific section of a contract to the civil works contractor until (i) payment of compensation has been fully disbursed to the affected people and rehabilitation measures are in place for that specific section as per the resettlement plan; (ii) affected people who were compensated for that specific section have vacated the site; and (iii) the specific section is free from any encumbrances. C. Ethnic Minorities 100. The safeguard category for project impacts on indigenous peoples/ethnic minorities is C. The social impact assessment indicates that ethnic minorities in the project impact areas (PIA) account for less than 1% of the project-affected population. Most of them live in Yichang, Yidu County, Zigui County, and Zhijiang District. Tujia is the dominant ethnic minority group in the PIAs. Among the ethnic minorities, 87% of them live in Wufeng and Changyang counties, which are not part of the PIA. Of the Tujia people, 36,700 live in Panjiawan Tujia Township of Yidu County and in three ethnic minority villages of Chexi, Hejiaping, and Shizhu. Other ethnic minorities in the PIAs are the Hui, Miao, Manzhu, and Zhuang. Twelve other small ethnic minority groups also live in the PIAs and each has less than 500 members. The poverty and social assessment found that ethnic minority groups are well integrated socially, culturally, and economically with the Tujia ethnic group. The YPMO pays attention to cultural and religious sensitivities of ethnic minority groups, and will arrange food and recreational facilities, which are culturally appropriate, and design elderly care buildings to reflect ethnic diversity in PIA. Old persons who need care in affected local communities will benefit equally regardless of their ethnic identity from the project because the project’s objective is to cover all ethnic groups by its improved range of quality elderly care services. Old persons of affected ethnic minority groups firmly believe that they will benefit from the improved and expanded elderly care system under the project. In this context, no specific ethnic minority action plan is necessary.

VIII. GENDER AND SOCIAL DIMENSIONS 101. The project is classified as effective gender mainstreaming. Women outnumber men, live longer than men, and also suffer from elderly related diseases than men. Especially among the ‘empty nest’ elders (elderly who live alone) and those 80 years and above, women significantly outnumber men, but their average income levels tend to be lower than men. Family members often help them in accessing elderly care services, and the degree of support varies among families. Strengthening the capacity of elderly care services will help relieve family caregivers and provide the elderly with better access to improved and expanded elderly care services. Benefits will include reduced time burdens of family caregivers and improved job opportunities especially for young women at elderly care services centers. Training focused on women for elderly care services will equip them with better skills to obtain better employment. Further, the community- and home-based care strategies will address gender equality and gender stereotypes, and ensure that equity and participation are included in all aspects of project operation and elderly care service delivery. 102. The social development and gender action plan (SDGAP) incorporates women’s participation in project-related public consultations, incorporation of gender-responsive features in the project design, promotion of increased employment opportunities for women, and improving institutional capacity of the executing and implementing agencies for gender mainstreaming.

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Table 18: Social Development and Gender Action Plan

Outputs Action Indicators and targets Responsible Institutions Timeframe Budget

Output 1: Home-based and community-based care services and facilities improved Improve CECCs

1. Construct or renovate facilities for CECCs

2. Improve public consultations and communication among community residents and service providers

3. Establish gender-sensitive community feedback mechanism on the quality and accessibility of ECS, and complaints, if any

4.Where there are Muslim residents, special kitchen facilities (and cooks) will be provided

1. 16 CECCs constructed or renovated with age-friendly design and gender-sensitive facility use

2. Fee schedule (cost of elderly care services) publicly announced

3. Records of attendees to public consultations (sex-,age-, and ethnicity-disaggregated)

4. Feedback records, including the number of complaints received, and solution adopted

5. Records of Muslim elderly residents, if any

6. Number of personnel (i.e., cooks) and facilities provided specifically for Muslim residents (this indicator is only applicable when there are Muslim elders in the residential community)

Implementing agency, PIEs, YPMO, consultants, design institute, YCAB, and communities

2019–2023

Project budget

Develop services, create links, and support networks

1. Develop a CECC working group to coordinate CECC activities

2. Select the members from relevant government offices, service providers, and elderly care service beneficiaries

1. 50% of the group members are women

2. Satisfactory record-keeping of meetings

3. Records of agreed actions completed

Implementing agency, PIEs, YPMO, and YCAB

2019–2024

Project Budget

Output 2: Elderly care service capacity increased and its support system improved Develop information technology networks

1. Conduct training and consultations on how to use ICT terminal facilities

2. The elderly care ICT platform established to collect and analyze sex-disaggregated data of ECS receivers

1. The amount of sex- disaggregated data collected

2. Records of training on ICT terminal facilities provided for users

Implementing agency, PIEs, YPMO, YCAB, communities, and ICT operator

2017–2023

Project budget

Training

1. Three Gorges College develop a gender- and age-sensitive staff recruitment plan

2. Three Gorges College develop and conduct elderly care related-training programs

3. CMTCC strengthen its capacity to train caregivers and care managers

1. Gender-sensitive and age-sensitive staff recruitment plan

2. Three elderly care related training programs developed; 60 certificates of completion awarded, of which 60% awardees are women

3. 25% increase in trained caregivers and care managers of which 60% are women

4. Type of trainees (sex-disaggregated)

Implementing agency, PIEs, YPMO, YCAB, communities, and ICT operator

2017–2023

Project budget

Output 3: Facilities and services supporting the integration of health care and elderly care established Provide expanded institutional care facilities and

1. Provide staff orientation and in-service training on diversity and inclusion of project beneficiaries

1. 80% of staff, including caregivers, received training on diversity and inclusion

2. 60% of trainees are women

Implementing agency, PIEs, YPMO, consultants, YCAB,

2019–2024

Project budget

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Outputs Action Indicators and targets Responsible Institutions Timeframe Budget

geriatric treatment services for elderly

2. Organize caregivers’ support program, including counseling services

and health planning commission

For Outputs 1–3: Generating job opportunities Develop CECCs, geriatric hospital, nursing home, and training base at CMTCC

1. Generate skilled and unskilled employment opportunities at the construction stage

2. Generate employment opportunities (unskilled, skilled, and managerial) at operation stage

1. During CECC construction, 690 skilled and 176 unskilled jobs generated, with no age limit, of which 15% are made available to women (baseline for female construction workers: 5%)

2. During CECC operations, 1,032 skilled, 2,059 unskilled, and 177 managerial jobs generated with no age limit, of which 40% are made available to the low-income people and 60% to women (baseline for female staff: 30%)

3. 40% of managerial positions given to womena

Implementing agency, PIEs, YPMO, consultants, design institute, and contractors

2019–2024

Project construction and operation funds

Output 4: Capacity of elderly care management and project management support developed Develop the elderly care management system

1. Prepare and implement domestic and international trainings on ECS and elderly care system

2.Raise the awareness of service providers and local officials on residential-based, community-based, and home-based ECS and on social inclusion issues

3.Enhance public awareness, involvement, and knowledge on issues of elderly abuse/harassment, and aging towards active involvement of general people (from young people to the elders themselves)

4. Enhance the analysis in utilizing collected sex-disaggregated data

1. Domestic and international training on ECS and elderly care system provided for YCAB and other relevant bureaus and agencies (35% of the participants are women)

2. Gender and age-sensitive training conducted to service providers and local relevant officials (sex-disaggregated data of persons attended)

3. Reported incidents of abuse/harassment (sex-disaggregated data) and indicators discussed and approved

4. Reports of elderly-related activities organized for public awareness, involvement, and knowledge on elderly abuse/harassment

5. At least one training on use of sex-disaggregated data for elderly care management (35% of participants are women)

Implementing agency, PIEs, YPMO, consultants, local government, and YCAB

2019–2024

Project budget

CECC = community-based elderly care center, CMTCC = Caregiver and Manager Training and Career Center, ECS = elderly care services, ICT = information and communication technology, PIE = project implementing entity, YCAB = Yichang Civil Affairs Bureau, YPMO = Yichang project management office. a The target is subject to the availability of qualified women. Source: Asian Development Bank.

103. Three surveys of 2,535 project affected persons and six focus group discussions indicated that some old or young people believe that children should take care of their parents when they are disabled (21%). But they also know that children are busy with other responsibilities. In this context, better access to adequate quality elderly care services is essential to ensure good and

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quality life for the elderly people. Of the elderly population, 80% prefers community- and home-based elderly care services and preferred elderly care services institutions as their preferred care locations. Several factors influence an individual’s decision on accessing elderly care services. Chief among them are current health condition, economic status, age, education level, number of living children, perceptions on traditional elderly care, and social networks. Those factors would also influence their willingness-to-pay. The CECCs to be established and improved under the project will expand the coverage and access to adequate elderly care services. A social and gender specialist, engaged under the project, will guide YPMO, the implementing agency, and PIEs in implementing the SDGAP. The cost of implementing the SDGAP will be part of the project budget. The SDGAP will be implemented during the entire life of the project. With the support from the social and gender specialist, YPMO will be responsible for coordinating the implementing the SDGAP. YPMO will assign a social and gender focal point to coordinate SDGAP implementation. 104. The project will directly benefit residents of five districts and one high-tech development zone at the city center of Yichang, Zigui County, Yidu City, and Zhijiang City with the development of geriatric hospitals, a dementia care, and CECCs that will enhance elderly care service capacity, facilities, and ICT systems. The construction of elderly care facilities and their operation will create new job opportunities for 3,268 persons. The project targets the elderly people who need care services, and mostly in the lower-middle to the middle-economic level. Potential caregivers, care managers, rehabilitation therapists, and service providers would benefit from expanded business opportunities, income sources, and skill training programs. 105. The SDGAP will be implemented by the implementing agency and the PIEs, under the supervision of the YPMO. All actions, monitoring indicators, responsible institutions and agencies, timeframes, and budgets have been discussed with the YPMO, implementing agency, PIEs, and relevant local government bureaus; and agreed on the actions included in the SDGAP (Table 18).

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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework Impact the Project is Aligned with A three-tiered elderly care system (home-based, community-based, and residential-based care services) established (Opinions on Promoting the Development of Elderly Care Service Industry [Circular No. 35, 2013])a

Results Chain Performance Indicators with

Targets and Baselines Data Sources and

Reporting Risks Outcome Coverage and utilization of elderly care services in Yichang increased

By 2025 a. 20% increase in the number of

elderly people using elderly care services; disaggregated by level of care and sex (2018 baseline: not applicable)

b. 10% increase in elderly care

service providers; disaggregated by district (2018 baseline: not applicable)

a–b. Annual reports

of Yichang Civil Affairs Bureau

Development of adequate elderly care services not prioritized by Yichang Municipal Government Limited expansion of private elderly care services providers

Outputs 1. Home-based

and community-based care services and facilities improved

2. Elderly care

service capacity increased and its support system improved

1a. By 2023, 16 CECCs with age-friendly design and gender-sensitive facility use, newly constructed or rehabilitated for home-based and community-based service provisionsb (2018 baseline: 0)

1a. Semiannual project monitoring reports of YPMO

Insufficient institutional coordination among relevant bureaus and agencies to develop an elderly care system Human resources are insufficient to meet all targets

2a. By 2024, a dementia care center built and serving 100 or more elderly people with dementia (2018 baseline: 0)

2b. By 2023, the elderly care–ICT

platform established (2018 baseline: 0)

2c. By 2023, at least three elderly

care-related training programs developed and conducted by the Three Gorges College, and 60 certificates of completion in elderly care-related training programs awarded, with 60% of awardees are women (2018 baseline: not applicable)

2d. By 2023, the percentage of

trained caregivers and care managers of CMTCC increased by 25%, of which 60% are

2a–d. Semiannual project monitoring reports of YPMO

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Results Chain Performance Indicators with

Targets and Baselines Data Sources and

Reporting Risks women (2018 baseline: not applicable)

3. Facilities and services supporting the integration of health care and elderly care established

3a. By 2024, geriatric medicine from

expanded geriatric hospitalsc provided to 500 or more elderly people in need; number of beneficiaries disaggregated by sex (2018 baseline: not applicable)

3b. By 2024, rehabilitation and

nursing services from the developed elderly care nursing homed provided to 100 or more people in need; number of beneficiaries disaggregated by sex (2018 baseline: 0)

3a–b. Semiannual project monitoring reports by YPMO

4. Capacity of elderly care management and project management support developed

4a. By 2023, recommendations for elderly care needs assessment system prepared (2018 baseline: not applicable)

4b. By 2023, recommendations for

elderly care services performance evaluation scheme prepared (2018 baseline: not applicable)

4c. By 2024, recommendations for

elderly care financial framework and operational model prepared (2018 baseline: not applicable)

4d. By 2023, at least 70% of

domestic and international training participants reported enhanced knowledge on elderly care services and elderly care system, of which 35% are women (2019 baseline: not applicable)

4a–c. Semiannual project monitoring reports of YPMO

4d. Training

questionnaires

Key Activities with Milestones 1. Home-based and community-based care services and facilities improved 1.1 Complete detailed design by Q4 2019 1.2 Organize and complete bidding process by Q2 2021 1.3 Complete construction or rehabilitation of CECC and procurement of equipment by Q3 2022 1.4 Complete preparation for selection of operator(s) by Q3 2021 2. Elderly care service capacity increased and its support system improved 2.1 Construct dementia care center 2.1.1 Complete detailed design by Q3 2019 2.1.2 Organize and complete bidding process by Q3 2020 2.1.3 Complete construction of dementia care center and procurement of equipment by Q2 2021 2.1.4 Complete preparation for selection of operator by Q2 2020 2.2 Develop elderly care-ICT platform

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Key Activities with Milestones 2.2.1 Organize and complete bidding process of ICT firms by Q4 2020 2.2.2 Complete procurement of ICT equipment by Q1 2022 2.2.3 Develop and install ICT application by Q3 2022 2.2.4 Complete installation and configuration of ICT system by Q2 2024 2.3 Strengthen capacity of Three Gorges College 2.3.1 Organize and implement staff training program, and complete by Q4 2019 2.3.2 Complete procurement of equipment by Q3 2020 2.3.3 Complete development of relevant programs and training by Q1 2023 2.4 Strengthen capacity of CMTCC 2.4.1 Complete detailed design by Q3 2019 2.4.2 Organize and complete bidding process by Q4 2020 2.4.3 Complete construction by Q1 2021 2.4.4 Procure goods by Q3 2021 2.4.5 Complete training and strengthening programs by Q1 2023 3. Facilities and services supporting the integration of health care and elderly care established 3.1 Construct geriatric hospital (secondary level) 3.1.1 Complete detailed design by Q3 2019 3.1.2 Organize and complete the bidding process by Q3 2022 3.1.3 Complete construction of geriatric hospital by Q2 2023 3.1.4 Complete procurement of medical and other goods by Q3 2023 3.2 Strengthen geriatric functions of the Second People’s Hospital of Yichang (tertiary level) 3.2.1 Complete detailed design by Q3 2019 3.2.2 Organize and complete bidding process by Q1 2022 3.2.3 Complete construction of expanded building by Q3 2022 3.2.4 Complete procurement of medical equipment and other goods by Q4 2022 3.3 Complete nursing home with rehabilitation and medical-nursing 3.3.1 Complete detailed design by Q1 2020 3.3.2 Create an office under the Yichang Civil Affairs Bureau by Q2 2020 3.3.3 Organize and complete bidding process by Q3 2022 3.3.4 Complete construction of nursing home by Q2 2023 3.3.5 Complete procurement of equipment and other goods by Q3 2023 4. Capacity of elderly care management and project management support developed 4.1 Establish elderly care needs assessment system 4.1.1 Complete selection of consultants by Q2 2020 4.1.2 Conduct relevant analyses by Q2 2022 4.1.3 Prepare and submit recommendations for assessment system to relevant bureaus by Q4 2022 4.2 Establish elderly care service performance evaluation scheme 4.2.1 Complete selection of consultants by Q4 2020 4.2.2 Conduct relevant analyses by Q4 2022 4.2.3 Prepare and submit recommendations for assessment system to relevant bureaus by Q2 2023 4.3 Prepare elderly care financial framework and operational model 4.3.1 Complete selection of consultants by Q4 2020 4.3.2 Conduct relevant analyses by Q4 2022 4.3.3 Prepare recommendations of elderly care financial framework and operational model by Q1 2024 4.4 Conduct domestic and international training 4.4.1 Finalize training agenda by Q3 2019 4.4.2 Complete training by Q4 2023 Program Management Activities Complete selection of consultants by Q2 2020 Prepare and manage implementation and procurement plans (Q1 2019–Q4 2023) Monitor project performance and ensure timely delivery of outputs (Q3 2020–Q2 2024)

Inputs Asian Development Bank: $150.00 million (loan) Government: $155.05 million

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Assumptions for Partner Financing Not applicable CECC = community-based elderly care center, CMTCC = Caregiver and Manager Training and Career Center, ICT = information and communication technology, Q = quarter, YPMO = Yichang project management office. a Government of the People’s Republic of China, State Council. 2013. Opinions on Promoting the Development of

Elderly Care Service Industry (Circular No. 35). Beijing. b The CECCs’ services also cover short-stay services. Gender-sensitive facility use provides separate rooms per

gender. c The expanded geriatric hospitals include the secondary-level geriatric hospital (Three Gorges Hospital) and the

expanded geriatric section of the Second People’s Hospital of Yichang. d The elderly care nursing home constructed under the project will be adjacent to the secondary-level geriatric hospital

(Three Gorges Hospital). Source: Asian Development Bank.

B. Monitoring

106. Project performance monitoring: The project performance monitoring system (PPMS) indicators, as specified in the design and monitoring framework, will include number of (i) elderly people using elderly care services, (ii) elderly care service providers, (iii) beneficiaries of home care and day care services, (iv) elderly people who were received and serviced at the dementia care center, (v) who received geriatric care from the tertiary and the secondary geriatric hospitals, (vi) elderly who received care services from the elderly care nursing home, (vii) trained elderly care-related staff, and (viii) elderly care related training courses. At the start of project implementation, the executing and implementing agencies, and PIEs, with support of the project management consultants will develop comprehensive PPMS procedures to generate data systematically on project outcome, inputs, and outputs of each subproject. These will be used to measure the project impact, outcome, outputs, and compliance with ADB safeguard policy requirements. The YPMO will ensure to (i) refine the PPMS framework, (ii) establish and/or verify the baselines, (iii) confirm achievable targets, (iv) finalize the monitoring and recording arrangements, and (v) establish data collection systems and reporting procedures no later than 9 months after the loan effectiveness. A project performance monitor specialist, engaged under the project, will support the executing and implementing agencies and PIEs to conduct appropriate project monitoring. Disaggregated baseline data and output and outcome indicators gathered during project processing will be updated and reported quarterly through the quarterly progress reports and after each ADB review mission. These quarterly reports will provide information necessary to update ADB's project performance reporting system.18 107. Compliance monitoring. The YPMO, the implementing agency, PIEs, and project management consulting service will conduct compliance monitoring, submit periodic (at least semiannual) reports to ADB concerning the use of the loan proceeds, project implementation, project implementation performance, and compliance of loan and project covenants. These reports will also include (i) progress reports on project implementation including resettlement, ethnic minority elements, and SDGAP; (ii) consolidated annual reports; (iii) annual environmental progress report; (iv) semiannual external resettlement monitoring report including ethnic minority elements, and SDGAP; and (v) a project completion report, which should be submitted not later than three months after the completion of the project facilities. The compliance status of loan and project covenants will be reported and assessed through quarterly progress report and consolidated annual reports. ADB review missions will verify the status.

18 ADB's project performance reporting system is available at

http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool

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108. Safeguards monitoring. Implementation of the EMP and the resettlement plan will be monitored by internal and external environment, resettlement, and social development and gender specialists.

109. Environmental compliance monitoring. Three types of project monitoring will be conducted under the EMP:

(i) Project readiness monitoring. Before construction, the loan implementation environment consultant (LIEC) and YPMO’s environment officer will assess each PIE’s readiness in terms of environmental management based on a set of indicators (i.e., environmental supervision in place, compliance with loan covenants, public involvement effectiveness, Chinese version of EMP distributed to all parties, contracts with environmental safeguards, site construction planning, EMP budget established, and required funds set aside for EMP implementation, etc.) and report it to ADB, the implementing agency, and YPMO. This assessment will demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggests corrective actions to ensure that all requirements are met. The assessment will be repeated at regular intervals to account for new works contracts and documented in the annual environment monitoring reports to ADB.

(ii) Environmental quality monitoring. The following project monitoring will be conducted under the EMP: (a) Internal monitoring will be conducted by the contractors and the

construction supervision companies, and includes the monitoring of dust and noise at all construction sites as well as the quality of discharged construction wastewater, and erosion control. It also includes daily inspection and internal compliance assessment with the approved site management plans of contractors, including construction site health and safety. During operations, internal monitoring will cover the implementation of the facilities, including Air Quality Protection Plan, the growth and survival of landscape plantings and features, and emergency response preparedness.

(b) During construction, local environmental monitoring stations will be contracted by the implementing agency to measure the effects and monitor the values of noise and dust in the project area, which extends from the construction site boundary to any nearby sensitive receptors. The results of the environmental monitoring report will be compared with requirements in the EMP site management plans and relevant PRC standards. Non-compliance will be highlighted in the monitoring reports. The reports will be submitted to YMG which are then reported to ADB in the annual environmental monitoring reports that are prepared with support from the LIEC.

(c) External monitoring will also be conducted. An external environmental monitor will be engaged to conduct third party independent review and monitoring of EMP implementation for the entire duration of project administration. YMG will retain qualified and experienced external experts to verify information. The external monitor will help to review project progress and compliance with EMP and review the environment monitoring reports submitted by the environmental monitoring stations to the implementing agency. YMG will ensure compliance, and ADB will oversee project compliance through the annual environmental monitoring reports

52

provided by YMG and site visits, as required. External monitoring reports will be submitted annually, 3 months after the internal environment monitoring reports are submitted; and as needed when compliance/grievance issues occur.

(iii) Compliance monitoring or auditing. EMP compliance monitoring is the systematic evaluation of the overall progress of the implementation of EMP measures. Evaluation of the compliance with the EMP will be undertaken regularly by the YPMO environment officer and the LIEC, who will report EMP implementation progress and compliance through quarterly project progress reports and annual environmental monitoring reports, along with information on project implementation, environmental performance of the contractors, and environmental compliance. The LIEC supports the YPMO environment officer in developing the annual environmental monitoring reports. The reports will identify environment-related implementation issues and necessary corrective actions and reflect these in a corrective action plan. The reports will also include safeguards aspects of the operation and performance of the project, GRM, environmental institutional strengthening and training, and compliance with all covenants under the project.

110. ADB will oversee project compliance based on the quarterly project progress reports and annual environmental monitoring reports provided by YPMO and review missions (generally 1–2 times per year). Disclosure of safeguards monitoring reports will be done both locally and on the ADB website.

111. Involuntary resettlement monitoring. Internal monitoring of resettlement plan implementation will be conducted by the YPMO. Indicators and methods of internal monitoring are specified in the resettlement plan. 112. Gender and social dimensions monitoring. The YPMO, the project implementing agency, PIEs, and the social and gender specialist consultant, engaged under the project, are responsible for reporting on the progress on gender and social dimensions of the project. Key monitoring indicators will be included in PPMS and will be reported semiannually. The results-based monitoring system will also include an analysis of gender and social issues. These reports will be submitted to ADB for review. C. Evaluation

113. The YPMO, the implementing agency, PIEs, and ADB will undertake annual or semiannual review missions to evaluate the progress of project implementation. The YPMO, the implementing agency, PIEs, and ADB will undertake a comprehensive midterm review 2 years after the start of project implementation to have a detailed evaluation of the scope, implementation arrangements, resettlement, achievement of scheduled targets, and progress on the agenda for policy reform and capacity building measures. Feedback from the PPMS activities will be analyzed. Within 3 months of physical completion of the project, the executing agency will submit a project completion report to ADB.19

19 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-

Sector-Landscape.rar

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D. Reporting

114. The YPMO will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; (iii) submission of semiannual reports on the progress of resettlement and social safeguards monitoring, i.e., land acquisition and resettlement activities, SDGAP implementation, and (iv) a project completion report within 6 months of physical completion of the project. To ensure that the project will continue to be both viable and sustainable; project accounts, the compiled audited financial statements of the implementing agency and PIEs, and the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

115. The Stakeholder Communication Strategy is based on the principles of transparency, timeliness, meaningful participation and inclusiveness. The strategy ensures that vulnerable groups, such as the poor and women, who risk further marginalization, are provided opportunities for communication and feedback during project implementation. Meaningful participation is defined as a process that (i) is carried out throughout the project cycle, and (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to the affected persons.

116. The stakeholder communication strategy is designed to ensure: (i) a regular flow of reliable project information; and (ii) ownership over project outcomes and interest and/or willingness to take advantage of the project benefits.

X. ANTICORRUPTION POLICY

117. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project. 20 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency, the implementing agency, PIEs and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.21 118. To support these efforts, relevant provisions are included in the loan agreement and the bidding documents for the project.

XI. ACCOUNTABILITY MECHANISM

119. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working

20 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 21 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp

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with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.22

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

120. All revisions/updates during the course of implementation will be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

No. Description of Revision Date 1 Discussed during loan fact-finding mission May 2018 2 Incorporated comments from interdepartmental review

and staff review meeting (revisions were discussed and agreed with the executing agency and the implementing agency through emails)

September 2018

22 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

Appendix 55

OUTLINE TERMS OF REFERENCE

1. Project startup consultants (individuals). Project startup consultants, i.e., project management specialist/team leader, procurement specialist, financial management specialist, social and gender specialist, and land acquisition and resettlement (LAR) safeguards specialist, and environment safeguards specialist will be engaged to provide direct support to the executing and implementing agencies and the project implementing entities (PIEs) for the quick and appropriate project startup. Specific tasks may include, but not limited to the following:

(i) A project management specialist/team leader will closely work with the executing agency, and directly support the implementing agency and PIEs of each components and subcomponents, to prepare needed project implementation arrangement setup, operational procedures, work plan, and guide and facilitate the initial phase of project implementation. S/he will report to the respective PIEs, and executing and implementing agencies.

(ii) A project management specialist, as team leader, will lead the startup consultants team to support the executing and implementing agencies and PIEs to ensure the compliance with Asian Development Bank (ADB) guidelines and requirements for project implementation, particularly for the initial phase, including (a) project performance management system (PPMS); (b) procurement of goods and works; (c) disbursement and contract management; (d) construction planning, supervision and monitoring; (e) reporting requirements; and (f) safeguards management and monitoring.

(iii) Under the supervision of Yichang project management office (YPMO), social and gender specialist and LAR safeguards specialist will support the implementing agency and PIEs of each subproject to ensure compliance with ADB’s requirements on land acquisition, involuntary resettlement, ethnic minority, and gender and social development. If any LAR has not been completed, the social safeguards specialists will closely follow up to meet the ADB requirements and provide needed support for the implementing agency and respective PIEs to complete appropriate LAR and implement and monitor SDGAP.

(iv) Under the supervision of YPMO, environment safeguards specialist with the implementing agency and PIEs will ensure compliance with ADB’s requirements on environment safeguards.

(v) Under the supervision of YPMO, the procurement specialists will closely support the implementing agency and the respective PIEs to carry out actual implementation activities of each subproject, particularly procurement of goods and works and contracting. They will also work with the procurement agent hired by the implementing agency, and design institutes and construction supervision consultants hired by the PIEs, and ensure compliance with ADB guidelines and requirements.

(vi) Under the supervision of YPMO, the financial management specialists will closely support the implementing agency and respective PIEs to carry out implementation activities of each component/subcomponent, i.e., financial management of each subproject, including accounting, managing respective project accounts, financial reporting, disbursement, and contract management. They will also work with the procurement agent, hired by the implementing agency, and design institutes and construction supervision consultants, hired by the PIEs, and ensure compliance with ADB guidelines and requirements.

56 Appendix

2. Project management and capacity development (firm). A firm will be engaged to support the executing and implementing agencies and PIEs for the project implementation, covering all project components and corresponding major deliverables. The team will be comprised of the following experts: team leader, sub-team leader, procurement specialists, financial management specialists, environment safeguards specialists, social, gender and LAR safeguards specialists, and project performance monitoring specialist. Specific tasks may include, but not limited to the following:

(i) Each consultant should preferably have a master’s degree or equivalent professional knowledge and expertise in respective fields.

(ii) Consultants will support the executing and implementing agencies and PIEs in project management and capacity building to ensure compliance with ADB guidelines and requirements for project implementation, including (a) PPMS; (b) procurement of goods and works; (c) disbursement and contract management; (d) construction planning, supervision, and monitoring; (e) reporting requirements; (f) safeguards management; implementing and monitoring; (g) SDGAP; (h) human resources development plan, corporate planning and financial management; and (i) awareness raising and promoting the enabling environment for implementing project components. The consultants will also provide capacity development support to the executing and implementing agencies and PIEs including, ADB’s requirements on procurement, disbursement, safeguards, and financial management.

(iii) Set up the project implementation management framework, operational procedures, document filing system, and work plan to guide and facilitate project implementation.

(iv) Set up a PPMS in accordance with ADB requirements, including establishing baseline and operation mechanism for data collection, analysis and reporting, and introducing management information system tools, as appropriate.

(v) Conduct contract management during project implementation; with respective technical consultants, monitor construction progress, conduct regular site visits and provide technical inputs to construction planning, supervision, and monitoring for quality control of construction under each component; prepare progress reports, review and certify the contractor’s claims for payments, provide expert inputs, review justification for contract variations and prepare necessary documentation; and coordinate project implementation among contractors and stakeholders, and coordinate daily operational tasks.

(vi) Establish an efficient and effective financial management system for project implementation in accordance with ADB policy and procedural requirements.

(vii) Provide support to ensure compliance with ADB’s requirements on environment, involuntary resettlement, ethnic minorities, and gender and social development.

(viii) Prepare necessary information for ADB’s loan administration missions. (ix) Prepare human resources development plan, corporate planning and training plan,

in consultation with the executing and implementing agencies and PIEs. (x) Organize and provide training for the executing and implementing agencies and

PIEs on the skills necessary for construction supervision, project management, implementation of social and environment safeguards for ADB requirements, project financial management, procurement procedures and anticorruption measures.

3. External safeguards monitoring (firm). A firm will be engaged, comprising social and LAR safeguards specialists and environment safeguards specialists, to conduct independent

Appendix 57

monitoring on social/LAR safeguards and environment safeguards respectively, including following major tasks. Environment Safeguards

(i) Conduct sampling and monitoring of environmental quality data related to the project.

(ii) Conduct independent monitoring on environmental management plan implementation status and additional environmental monitoring, if necessary, to verify that issues reported in the internal environmental monitoring report, quarterly progress report, and semiannual environmental progress report are in compliance with ADB’s safeguards and other relevant policies.

(iii) Conduct independent verification of the project’s environmental management performance, identify any environment-related implementation issues, propose necessary corrective actions, and reflect these in a corrective action plan.

(iv) Determine if any adverse impacts have occurred during project implementation, compare the predicted impacts with the actual environmental impacts, assess the effectiveness of the mitigation measures, and suggest remedial and enhancement measures, as required.

(v) Make recommendations and due diligence to resolve any issues or problems on implementing the EMP.

(vi) Participate in ongoing stakeholder consultations and evaluation and report on how environmental grievances, if any, are handled, make recommendations to resolve any issues or problems, and provide independent advice to YPMO and relevant implementing agency.

(vii) Submit English and Chinese external environmental monitoring verification report to the YPMO, the implementing agency, and ADB with quality acceptable to ADB on annual basis during project implementation period.

Social/LAR Safeguards 4. According to ADB’s Safeguard Policy Statement (SPS 2009) on involuntary resettlement and regulations of the People’s Republic of China, the resettlement work of the subprojects which trigger category A or B classification will be subject to external monitoring and evaluation (M&E). The monitoring will ensure that the resettlement processes are being implemented in accordance with the requirements set out in the resettlement plan. The external M&E will also undertake an evaluation of changes in peoples’ standard of living as a result of project and project related LAR activities. For this project, the category for involuntary resettlement is B in accordance with ADB’s SPS. The resettlement plan has been prepared accordingly. If some of the LAR activities were not completed in accordance with the PRC laws and regulations, the scope and methods of external monitoring needs to be tailored accordingly. M&E reports are submitted to ADB, the executing and implementing agencies regularly twice a year (semiannual) during the implementation period. Specific tasks include:

(i) Independent monitoring of LAR activities completed for the project and confirm category C for indigenous peoples including monitoring of SDGAP activities, if necessary, to verify that issues reported in the internal monitoring report, quarterly progress report, and semiannual progress report are in compliance with ADB’s safeguards and other relevant policies.

(ii) Monitor if the grievance redress mechanism is functioning. (iii) Monitor and report on the process of public consultation and participation including

stakeholder consultation in line with SDGAP and provide advice to the implementing agency and PIEs, as required.

58 Appendix

(iv) Monitor and report on the various activities outlined in SDGAP and progress including adequate budget support and trained staff to implement SDGAP.

(v) Provide training to resettlement focal and SDGAP implementation staff. (vi) Make recommendations and due diligence to resolve any issues or problems and

provide advice to the executing and implementing agencies and PIEs. (vii) Submit English external monitoring reports including record of grievances to the

quality acceptable to the YPMO, the implementing agency, and ADB on semiannual basis during project implementation period.

5. Elderly care and geriatric technical support (firm). A firm will be engaged to provide technical support for the executing and implementing agencies and PIEs to ensure that services, functions, and facilities for elderly care or geriatric are technically appropriate. The team will be composed of the following experts: (i) elderly care service specialists (i.e., elderly care and dementia care services), (ii) elderly care facility design specialists, (iii) medical-nursing specialist, (iv) geriatric hospital planners, (v) medical facility architect, (vi) engineer (medical facility), (vii) medical equipment specialist, (viii) geriatric care specialist, and (ix) information and communication technology (ICT) specialist. Major deliverables are as follows.

(i) Each consultant should preferably have a master’s degree or equivalent professional knowledge and expertise in his/her respective field.

(ii) Respective elderly care technical specialists will support the executing and implementing agencies and PIEs to ensure: (a) the technical appropriateness of respective functionality of each-tier of elderly care (home-based care, community-based day care, residential-based care, dementia care), (b) the technical appropriateness of each tier of elderly care services to be delivered by respective operators, and (c) the needed human resources and training plans.

(iii) Elderly care technical specialist (dementia care) will support the executing and implementing agencies to ensure to: (a) design appropriate service plan for dementia care center, (b) needed human resource and training plan, and (c) incorporate adequate features of dementia care in its facility design.

(iv) Respective elderly care facility design specialists will work closely with the elderly care technical specialists and support the executing and implementing agencies and PIEs to ensure the appropriate detailed design of respective elderly care facilities (community-based elderly care centers, dementia care center, and residential-based elderly care nursing home).

(v) The medical-nursing specialist will support the executing and implementing agencies and PIEs to: (a) identify appropriate medical-nursing services to be delivered by the residential elderly care nursing home developed under the project, (b) clarify its functionality, (c) prepare needed human resource plan and operational plan, and (d) develop a coordination (referral) scheme between the geriatric hospitals and the residential elderly care nursing home.

(vi) The geriatric hospital planner will support the executing and implementing agencies and PIEs to: (a) project service requirements based on sound evidence based on demographic and epidemiological data; (b) clarify a preliminary functional content for the proposed hospital with the list of services to be provided and basic departmental facilities required; (c) prepare a prioritized schedule for the development of the site and/or expansion (building/land) and a schedule of departmental accommodation listing functional areas and optimum floor areas; (d) develop the outline operational policy with description of hospital operational functions and management; and (e) prepare dimensions of structures needed to carry out the services (population, expected demand, taking into account

Appendix 59

epidemiology, standards, volume, human resources need and availability, staff, size, equipment planning, etc.)

(vii) The medical facility architect will support the executing and implementing agencies and PIE to: (a) develop a comprehensive checklist of clinical requirements in each room with identification of furniture and equipment which have engineering implication; (b) prepare way finding and defined circulation routes for vehicles and pedestrian traffic; (c) develop functional requirements for the hospital with sufficient detail for downstream architecture, engineering and constructions services; and (e) work in collaboration with the three other consultants for common tasks.

(viii) The engineer (medical facility) will support the executing and implementing agencies and PIE to: (a) prepare the outline construction and engineering specifications; and (b) work in collaboration with the other three consultants (the geriatric hospital planner, the medical facility architect, and the medical equipment specialist) for common tasks.

(ix) The medical equipment specialist will support the executing and implementing agencies and PIE to: (a) identify new and emerging health technologies to consider in advancing geriatric care; (b) prepare the medical equipment schedule with list of medical and non-medical equipment and location; (c) develop the technical specifications for equipment (medical, non-medical); (d) prepare bidding documents and the procurement plan (that follow ADB procurement guidelines) for the medical and non-medical equipment in coordination with the architecture/engineering services; and (e) work in collaboration with the three (the geriatric hospital planner, the medical facility architect, and the engineer (medical facility) other consultants for common tasks.

(x) The medical facility architect, the engineer (medical facility), and the medical equipment specialist will collaborate to support the executing and implementing agencies and PIE to: (a) develop the floor-to-floor and room-to-room data sheets and prepare terms of reference of the detailed engineering design, construction, supervision, and equipment procurement and installation; and (b) supervise the architecture and engineering design firms’ deliverables.

(xi) The geriatric care specialist will provide the Second People’s Hospital of Yichang and Three Gorges Hospital with on-the-job training/coaching of high and mid-level management of the geriatric hospital, covering geriatric care topics such as multidisciplinary team building, clinical geriatrics (assessment, polypharmacy, multi-morbidity, etc.), functional relationships with geriatric ward, hospital discharge management, quality of care, etc.

(xii) The ICT specialist will be responsible for preparation of terms of reference for the selection of the firm for the first procurement package of elderly care-ICT platform (package number: YC-ICT-S01) and for providing the project monitoring and quality assurance support to the implementing agency during the project implementation period.

6. Elderly care system development support (individual). Elderly care related consultants will support Yichang Civil Affairs Bureau (YCAB) and relevant bureaus and agencies to develop an elderly care system in Yichang. Experts will be comprised of elderly care specialists, elderly care standards and evaluation specialists, elderly care finance and insurance specialists, elderly care operation specialists, elderly care business and financial model specialists, elderly care public awareness specialist, elderly care counsellor, and elderly care social worker. Major deliverables are as follows.

(i) Each consultant should preferably have a master’s degree or equivalent professional knowledge and expertise in respective fields.

60 Appendix

(ii) Consultants will support YCAB and relevant bureaus and agencies to develop an elderly care needs assessment scheme, design the organizational framework for its implementation, and set up needed institutional arrangements for the implementation.

(iii) Consultants will support YMG to set up an adequate and sustainable elderly care financial framework through (a) examining the existing elderly care financial framework of Yichang, (b) examining possible reforms of elderly care related subsidies of Yichang, (c) examining a possible long-term care insurance which could be introduced to Yichang, (d) examining the adequate level of user charges for elderly care services, and (e) preparing recommendations to develop an adequate and sustainable financial framework for Yichang elderly care sector.

(iv) Consultants will support YCAB, relevant bureaus and agencies, to set up service standards on elderly care services in Yichang, and an adequate performance evaluation scheme, including developing key performance indicators for service providers of CECCs, the dementia care center, and the elderly care nursing home.

(v) Consultants will help YMG identify sustainable business and operational model of elderly care services through: (a) reviewing existing operation models of elderly care service provision, (b) examining improved financial models for elderly care operation, (c) examining the responsibility alignment between the public and the private sectors, and (d) preparing recommendations to develop sustainable business and operational models of elderly care service provision.

(vi) Consultants will support YPMO and the implementing agency to enhance public knowledge on elderly care, including issues of elderly abuses and harassment, public awareness on aging, and active public involvement in aging society and elderly-related public activities through: (a) planning relevant activities, (b) helping YPMO and the implementing agency prepare and implement each activity, and (c) assessing the feedback from each activity.

(vii) Consultants will support YPMO and the implementing agency to conduct effective domestic and international study training (study tours) through helping: (a) identify focal issues for each of study tour, (b) prepare agenda for each study tour, (c) identify appropriate destinations, (d) prepare the list of issues to be studied for each study tour, and (e) discuss findings for in-depth understanding and learning of the focal issues.

7. Elderly care-ICT platform support (firm). An ICT consultancy firm will support Yichang smart city office under YPMO and the implementing agency to define elderly care-ICT platform and related ICT infrastructure (lead ICT specialist, elderly care sector-ICT specialist, ICT architecture, ICT system business analyst, ICT infrastructure specialist, and ICT procurement specialist). Major deliverables are as follows.

(i) Define requirements for undertaking a detailed requirement analysis for elderly care-ICT platform and related ICT infrastructure needed for hosting the platform in the data center and disaster recovery site.

(ii) Prepare requirement specifications, terms of reference and bidding document to support the executing and implementing agencies in selecting solution provides for elderly care-ICT platform software and its ICT infrastructure.

(iii) Provide bid process management support for the executing and implementing agencies to select the vendors.

8. Elderly care-ICT software development support (firm). An ICT consultancy firm will design, develop, and implement the elderly care-ICT platform application software and its integration with other existing ICT systems in Yichang (Project Manager, Lead Software Architect,

Appendix 61

System Developers, Testing and Quality Assurance Lead, Software Testing Support Specialists, Database Architect). Major deliverables are as follows.

(i) Be responsible for undertaking detailed system design, development, implementation and maintenance of software application required for elderly care-ICT platform and other related software such as mobile platform for elderly care service delivery.

(ii) Detailed design and development of application software for elderly care-ICT platform, and its integration with existing systems, such as hospital systems.

(iii) Detailed design and development of mobile application software required for mobile nursing staff and elderly caregivers.

(iv) Training for the end users of those systems. (v) Digitization and migration of data required for elderly care-ICT software, and

mobile platform. (vi) Software maintenance and support services for the mentioned-software. Technical

training for relevant staff of YMG, the implementing agency, and related bureaus and agencies in administration and maintenance of software systems delivered under the project.