A. Central Level

The arrangements and responsibilities for project management and implementation at the central level and decentralized level will be in accordance with the provision of Schedule 4 of the Grant Agreement. The executing agency for the Project will be MLD, and DOLIDAR will be the central implementing agency for central level activities. The organizational structure for implementing the Project is outlined as:

Project Monitoring Committee and Project Implementation Coordination Committee:
Within one month of the Effective Date of 1 February 2008, Project Monitoring Committee (PMC) will be established in MLD chaired by the Joint Secretary of MLD. The PMC will be responsible to
(i) monitor overall Project implementation,
(ii) resolve policy issues,
(iii) guide PCU; and
(iv) facilitate inter-ministerial coordination. Project monitoring committee will meet at least once every six months. DOLIDAR will establish a Project Implementation Coordination Committee (PICC) within one month of Effective Date of 1 February 2008, PICC will be responsible to
(i) supervise day-to-day Project implementation;
(ii) review Project progress; and
(iii) coordinate between DOLIDAR and DDCs. The PICC will meet whenever necessary, but not less than once every three months.

Project Coordination Unit:
Within one of the Effective Date of 1 February 2008, DOLIDAR will have established and fully staffed a Project Coordination Unit (PCU). The PCU at all times during Project implementation will be headed by a full-time Project Coordinator of class one officer. The PCU will include at least the following full-time staff: two senior divisional engineers, five engineers, one environmental engineer, one senior resettlement officer, one sociologist, one account officer, two accountants, one computer operator and sufficient support staff. The PCU staff will be supported by consultants of whom the expertise and duration of assignment will be as agreed between MLD and ADB. The Project Coordinator will report to the Secretary of the MLD through the Director General of DOLIDAR.

The PCU will coordinate, guide and monitor day-to-day Project implementation, including engineering, compliance with safeguard provisions including gender action plan, financial management, and procurement. Specific responsibilities of the PCU will include, but not be limited to,:
(a) detailed planning of Project implementation;
(b) guiding and monitoring DDCs/DTOs that participate in the Project;
(c) allocating and disbursing Project funds in accordance with mechanisms and processes established in the Recipient’s Local Body Financial Administration Regulations;
(d) liaising with other donor-funded projects in the rural infrastructure sector on day-to-day implementation matters;
(e) preparing consolidated annual work plans;
(f) ensuring satisfactory implementation of the gender action plan, the environmental guidelines, the resettlement frameworks and plans, and indigenous peoples framework and plans;
(g) ensuring timely compliance of agreed covenants; and
(h) preparing necessary progress reports as well as the Project completion report.

B. Decentralized Level

Project Implementing Agencies:
The DDCs will be the Project Implementing Agencies at the district level. The DTO of each respective DDC shall be responsible for technical and Project management matters. Each DDC shall establish and chair a District Project Coordination Committee to
(i) coordinate with all relevant line agencies;
(ii) issue District policy guidelines;
(iii) resolve District implementation issues; and
(iv) hear complaints against the Project, if any.

District Project Office:
Within one month of the Effective Date, each DDC will have established and staffed a DPO. The head of the district technical office (DTO) of each participating DDC will also head the DPO in the District. In addition, each DPO will comprise the following full-time DTO staff: one rural infrastructure engineer, one sub-engineer, two assistant sub-engineers, one accountant, one administrative staff, one computer operator, and sufficient support staff. The DTO staff in the DPO will be supported by the DIST, which will be engaged as a firm and will include engineering, safeguards, and social mobilization staff. DOLIDAR will ensure that DISTs engage equally qualified local engineers and other staff on a priority basis, provided such engineers and local staff are equally qualified as candidates from outside the District.

Specific responsibilities of the DPO, assisted by the DIST, shall include, but not be limited to:
(a) preparing annual work programs;
(b) finalizing detailed subproject designs;
(c) ensuring that all safeguard measures including gender action plan shall be complied with;
(d) supervising all construction activities;
(e) organizing community level training; and
(f) arranging procurement.

Any Project activities to be implemented in the DRILP districts, will be implemented through the District implementing agencies for such DRILP.

Village Level Implementation:
At the village level, village infrastructure construction coordination committees (VICCCs) will be constituted in each in each VDC where projects will be implemented. VICC will be formed prior to the commencement of any Project activities and will include representatives of political parties, nongovernment organizations active in the VDC area, women, dalits and other disadvantaged groups. All efforts must be made to ensure participation of 33% women as well as a due representation of various ethnic groups and castes.

Each VICCC, in close cooperation with and under the guidance of the respective DPO, shall be responsible for:
(a) coordinating supplementary infrastructure planning;
(b) guiding the formation of building groups (BGs) for rural roads and of Village Infrastructure User Groups for supplementary infrastructure with gender and caste/ethnicity sensitivity;
(c) ensuring proper payment to BGs;
(d) supervising beneficiaries’ contributions for subprojects;
(e) monitoring implementation of village infrastructure works; and
(f) ensuring public audits upon subproject completion.

C. State Restructuring

If at any time during Project implementation, the Recipient shall undergo state restructuring resulting in changes to its public administration, the Recipient shall immediately inform the ADB thereof. In such case, the Recipient and ADB shall review the Project management and implementation arrangements to ensure such arrangements reflect the changes.

D. Budget Reallocation

The reallocation of budget to another district if work in one district is constrained due to conflict will be done. The details of this reallocation will be worked out.