Road Project Implementation Manual

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THE REPUBLIC OF UGANDA

MINISTRY OF WORKS AND TRANSPORT

ROAD
PROJECT
IMPLEMENTATION MANUAL

January 2010

Project ImpIementation ManuaI VoIume I/Section 9

54
Ministry of Works and Transport
List of Reference Documents

 Bidding Document for the Procurement of Works and
 Bidding Document for the Procurement of Consultancy Services
 World Bank publication "The Project Cycle¨, dated 2004
 African Development Bank publication "Project Cycle¨, dated 2004
 EU publication "Project Cycle Management¨, published 1997
 CÌDA publication "Overview of Bilateral Project Cycle¨, published Feb 1999
 Road Design Manual, new version under preparation
 FÌDÌC publications Tendering Procedure, Contract Guide, Consultant
selection, Red Book, White Book
 Standard Tender Documentation for Road and Bridge Works, new version
under preparation

PREAMBLE

This Road Project Implementation Manual is one of a series of Engineering
Specifications, Standards, Nanuals and Guidelines issued by Ninistry of Works and
Transport. !t gives guidance and recommendations to the Engineers responsible for
the maintenance of roads in Uganda. !t complements the Ninistry's efforts in
providing guidance to the construction industry by setting uniform standards to be
used in the construction and maintenance of infrastructure facilities that meet the
needs of the users.

The purpose of this Nanual is to serve as nationally recognized document, the
application of which is deemed to serve as a standard reference and ready source of
good practice for project implementation of roads, and will assist in a cost effective
operation and an environmentally sustainable development of the country's road
network.

Further, this Nanual is a technical document, which, by its very nature, requires
periodic updating from time to time arising from the dynamic technological
developments and changes. The Ninistry, therefore, welcomes proposals on areas
for further development and revision stemming from the actual field experience and
practice. !t is hoped that the comments will contribute to future revisions of the
Nanual expected to lead to better and more economical designs.

Ninistry of Works and Transport
P.O. Box 10
Entebbe

January 2010

Road Project ImpIementation ManuaI VoIume I

TABLE OF CONTENTS

DEFINITIONS ............................................................................................................................. i
ABBREVIATIONS .................................................................................................................... iii
1.0. INTRODUCTION .............................................................................................................. 1
1.1 Background ............................................................................................................ 1
1.2 Scope of the Manual .............................................................................................. 1
1.3 Organization of the Ministry .................................................................................... 1
1.4 Project Cycle .......................................................................................................... 1
1.4.1. General ...................................................................................................... 1
1.4.2. Ìdentification .............................................................................................. 2
1.4.3 Feasibility and Preliminary Engineering Study .......................................... 2
1.4.4 Detailed Design ......................................................................................... 2
1.4.5 Procurement / Tendering ........................................................................... 3
1.4.6 Construction supervision and management .............................................. 3
1.4.7 Operation ................................................................................................... 3
1.4.8 Project Evaluation ..................................................................................... 3
2.0 PROJECT IDENTIFICATION .......................................................................................... 4
2.1 General ................................................................................................................... 4
2.2 Project Concept ...................................................................................................... 4
2.2.1 Project Ìdentification of a Road Project ..................................................... 4
2.2.2 Procedural Framework for Project Ìdentification ....................................... 4
2.2.3 Project Conception .................................................................................... 4
2.3 The Project Write up ............................................................................................... 5
2.3.1 New Projects ............................................................................................. 5
2.3.2 On-going projects ...................................................................................... 5
2.4 Project Profile ......................................................................................................... 5
3.0 FEASIBILITY AND PRELIMINARY ENGINEERING STUDIES ..................................... 6
3.1 General ................................................................................................................... 6
3.2 Feasibility Study ..................................................................................................... 6
3.2.1. Need for the Feasibility Study ................................................................... 6
3.2.2. Responsibility for the feasibility study ....................................................... 6
3.2.3. Traffic Studies ........................................................................................... 7
3.2.4. Sectoral Studies ........................................................................................ 7
3.2.5. Cost Benefit Analyses ............................................................................... 7
3.2.6. Sensitivity Analysis .................................................................................... 8
3.2.7. Economic Evaluation ................................................................................. 9
3.2.8. Risk Analysis ............................................................................................. 9
3.3 Preliminary Engineering Studies ............................................................................ 9
3.3.1 Topographic Surveys ................................................................................ 9
3.3.2 Soils and Materials Ìnvestigations ........................................................... 10
3.3.3 Hydrological Surveys ............................................................................... 10
3.3.4 Design Standards .................................................................................... 10
3.3.5 Preliminary Design and Drawings ........................................................... 10
3.3.6 Cost Estimates ........................................................................................ 11
3.4 Other Studies........................................................................................................ 11
3.4.1 Environmental Ìmpact Assessment Study ............................................... 11
3.4.2 Social Studies (Women's Role in the Transport Sector) ......................... 12

53
Project Financing

Fundin
g
Source
Project
Approv
aI
USD
'000
Expend to
June 02
Shs '000
Budget Past
year 2002/03
Shs '000
Expected
Out Turn
Past FY
2002/03
Shs '000
Projected
New FY
2003/04
Shs '000
Projecte
d
beyond
next FY
(1)
Shs '000

GoU 3,380 3,435,430,97
7
2,100,000,00
0
988,160,00
0
662,100,000 0
Donor 10,990 2,533,983,40
0
2,072,590,00
0
0
Taxes 1,235 474,000,000 464,500,000 0
Other -
TotaI 15,605 3,434,430,97
7
5,107,983,40
0
988,160,00
0
3,199,190,00
0
0

Note: The "projected beyond next Financial Year¨ covers only the MTEF period of FY 2004/05
and 2005/06.

52
9.2 Appendix 2 , Project Write-up

UPGRADING OF KYOTERA-MUTUKULA ROAD

Project Code : TR 65(A)
Project Name : Upgrading of Kyotera-Mutukla Road
Start Date : 1999
Completion Date: 2003

Background

Kyotera-Mutukula Road is located in south Western Uganda. This road is part
of the Nothern Corridor and the PTA transportation systems. Ìnternally, it is
an interstate road connecting Uganda to Tanzania via Bukoba.

The road traverses a highly populated and fertile area with major crops grown
such as coffee, bananas, beans, tea, cocoa, maize, millet, sorghum, and
potatoes. Upgrading this road to bitumen is expected to increase household
incomes as it will facilitate increase in crop production, help in the
establishment of more social services and encourage rural investment.

Objective

The project aims at upgrading Kyotera-Mutukula road from its present gravel
state to bitumen standard.

OveraII achievements since the project started

Kyotera-Mutukula road (45km): A contract for civil works for this road was
signed in August 2000 and the Contractor mobilized and started works in
January 2001. Civil works were completed in September 2002.

Current year to date compared with the forecast in the Iast
Ministry PoIicy Statement

This road is being upgraded from gravel to Class ÌÌ Bitumen Standard. Civil
works were completed in September 2002.

Expected in the coming FinanciaI Year

The defects liability period started in October 2002 and will be completed in
October 2004.


4.0 DETAILED ENGINEERING DESIGN ............................................................................ 13
4.1. General ................................................................................................................. 13
4.2 Data Collection and Analysis ................................................................................ 13
4.3 Detailed Engineering Ìnvestigations ..................................................................... 14
4.4. Engineering Design Requirements....................................................................... 16
4.5 Prequalification, Tender and Contract Documents .............................................. 18
4.6. Reports ................................................................................................................. 19
4.6.1 Ìnception Report ...................................................................................... 19
4.6.2 Progress Reports .................................................................................... 19
4.6.3 Design Standard Report .......................................................................... 19
4.6.4 Engineering Report ................................................................................. 19
4.6.5 Soils and Materials Report ...................................................................... 19
4.6.6 Hydrological/Hydraulic and Structural Report ......................................... 20
4.6.7 Environmental Ìmpact Assessment Report ............................................. 20
4.6.8 Land Acquisition Plans and Report ......................................................... 20
4.6.9 Topographic Survey Report .................................................................... 20
4.6.10 Final Consultancy Completion Report ..................................................... 20
5.0 PROCUREMENT ........................................................................................................... 21
5.1. General ................................................................................................................. 21
5.2 Project Funding .................................................................................................... 21
5.3. Procurement of Consultancy Services ................................................................. 21
5.3.1 Prequalification (Shortlist) ....................................................................... 21
5.3.2 Prequalification (Longlist) ........................................................................ 22
5.3.3 Restricted Tenders .................................................................................. 22
5.3.4 Ìnvitation To Tender (ÌTT) ........................................................................ 22
5.3.5 Evaluation of Tenders ............................................................................. 22
5.3.6 Contract Negotiations .............................................................................. 24
5.3.7 Award of Contract .................................................................................... 24
5.4 Procurement of Contractors ................................................................................. 24
5.4.1 General .................................................................................................... 24
5.4.2 Prequalification ........................................................................................ 25
5.4.3 Open Tenders ......................................................................................... 25
5.4.4 Ìnvitation To Tender (ÌTT) ........................................................................ 26
5.4.5 Evaluation of Tenders ............................................................................. 26
5.4.6 Contract Negotiations .............................................................................. 26
5.4.7 Award of Contract .................................................................................... 27
6.0 CONSTRUCTION SUPERVISION AND MANAGEMENT ............................................ 28
6.1 General ................................................................................................................. 28
6.2 Contract Documents ............................................................................................. 28
6.3 Performance Bond ............................................................................................... 29
6.4 Advance Payment Guarantee .............................................................................. 29
6.5 Ìnsurance of Works .............................................................................................. 30
6.6 Parties to the Project ............................................................................................ 30
6.7 The Project Manager ............................................................................................ 30
6.8 The Project Manager's Representative ................................................................ 31
6.9 The Site Agent ...................................................................................................... 32
6.10 Commencement Order ......................................................................................... 32
6.11 Work Programme ................................................................................................. 32

6.12 Facilities for the Project Manager ......................................................................... 33
6.13 Records of Construction ....................................................................................... 33
6.14 Monthly Progress Reports .................................................................................... 33
6.15 Checking of Line and Level .................................................................................. 33
6.16 Materials, Testing and Quality Control ................................................................. 34
6.17 Safety ................................................................................................................... 34
6.18 Welfare ................................................................................................................. 34
6.18.1 Welfare Officer ........................................................................................ 35
6.18.2 Medical Services ..................................................................................... 35
6.19 Provisional Sums, Prime Cost Sums, Contingencies and Day Works ................. 35
6.20 Deviation Orders (Variation Orders) ..................................................................... 36
6.21 Cost variations (Contract Price Adjustment) ........................................................ 36
6.22 Claims ................................................................................................................... 36
6.23 Measurement of Works and Procedure for Payment ........................................... 37
6.24 Ìnterim Payments.................................................................................................. 37
6.25 Complaints and Third Party Claims ...................................................................... 38
6.26 Certificate of Practical Completion ....................................................................... 39
6.27 As-built Drawings.................................................................................................. 39
6.28 Project Completion Report ................................................................................... 39
6.29 Defects Liability Period ......................................................................................... 39
6.30 Retention Money .................................................................................................. 40
6.31 Final Account ........................................................................................................ 40
6.32 Arbitration ............................................................................................................. 40

7.0 PROJECT EVALUATION .............................................................................................. 42
7.1 General ................................................................................................................. 42
7.2 Types and objectives of Evaluation ...................................................................... 42
7.3 Responsibility for Project Evaluation .................................................................... 42
7.4 Element of Project Evaluation .............................................................................. 43
7.5 Application of Results ........................................................................................... 43
7.6 External Funding Agency Evaluations ................................................................. 43
8.0 ROLE OF MINISTRY OF WORKS AND TRANSPORT IN PROJECT
IMPLEMENTATION ....................................................................................................... 44
8.1 General ................................................................................................................. 44
8.2 Project Co-ordination ............................................................................................ 44
8.3 Counterpart Staff .................................................................................................. 44
8.4 Assignment/Attached Staff ................................................................................... 44
8.5 The District Engineer ............................................................................................ 45
9.0 APPENDICES ................................................................................................................ 46
9.1. Appendix 1, World Bank Project Cycle ................................................................ 46
9.2 Appendix 2 , Project Write-up ............................................................................... 51
List of Reference Documents ............................................................................................... 54




50

At the end of the loan disbursement period (anywhere from 1-10 years), a
completion report identifying accomplishments, problems, and lessons
learned is submitted to the Bank Board of Executive Directors for information
purposes.
UsefuI pubIic document

Implementation Completion Reports review the results and assess an
operation on completion of each loan financed by the Bank. Operational staff
prepare these self-evaluations for every completed project.

The Evaluation Phase

Following the completion of a project, the Bank's Operations Evaluation
Department conducts an audit to measure its outcome against the original
objectives. The audit entails a review of the project completion report and
preparation of a separate report. Both reports are then submitted to the
executive directors and the borrower. They are not released to the public.

UsefuI pubIic documents

Project Performance Assessment Reports rate project outcomes (taking into
account relevance, efficacy, and efficiency), sustainability of results, and the
institutional development impact. One in four completed projects (or about 70
a year) is chosen for a Project Performance Assessment Report, which takes
Operations and Evaluation Department staff about six weeks to produce and
normally includes a visit to the project in the borrowing country.

Impact Evaluation Reports assess the economic worth of projects and the
long-term effects on people and the environment. These "second looks" at
projects are performed five to eight years after the close of loan
disbursements.

Inspection Panel Reports review claims by affected parties that the Bank
failed to follow its operational policies and procedures with respect to the
design, appraisal and/or implementation of a Bank-financed operation.

Projects may be dropped at any point in the project cycle from preparation to
approval. For these projects, which never achieve active status, Project
Ìnformation Documents, described above, are effectively the final documents.
See also Measuring Results.

AdditionaI Information

 The Monthly Operational Summary discloses the status of projects in
the World Bank's lending pipeline from the point they are identified to
the time the loan or credit agreement supporting them is signed.
 The Ìnfoshop provides an explanation of the Project Cycle and related
documents.
 The Bank's Latin America and Caribbean section has prepared its own
description of the Project Cycle, along with relevant links and check lists
associated with different stages
 The Business Opportunities site provides advice on how businesses
wishing to bid on Bank-financed projects can interact with the Project
Cycle.
 A glossary of project documents.
Project ImpIementation ManuaI VoIume I

i
DEFINITIONS
The following definitions shall apply to all projects executed by and on behalf of the Ministry of
Works and Transport:
a) The Employer is
The "Employer¨ is the party named in the Agreement, who employs the Contractor to
carry out the Works and means Procuring and Disposing Entity as defined in the
Public Procurement and Disposal of Public Assets Act, 2003.
b) The Project Manager is
The "Project Manager¨ is the person named in the SCC (or any other competent
person appointed by the Employer and notified to the Contractor, to act in
replacement of the Project Manager) who is responsible for supervising the execution
of the Works and administering the Contract.
c) The Project Manager's Representative (usually called the Resident Engineer) is
The MOWT employee or Consultant appointed in writing to have overall engineering
responsibility for supervision of the construction works.
d) The Contractor is
A person or corporate body whose Bid to carry out the Works has been accepted by
the Employer and is named as such in the Agreement, and means Provider as
defined in the Public Procurement and Disposal of Public Assets Act, 2003.
e) The Contract is
The agreement between the Employer and the Contractor to execute, complete, and
maintain the Works.
f) The Contract Documents are
The documents that define the terms, conditions and specifications governing the
Contract. They include the Form of Tender, the Conditions of Contract, the
Specification, the Bill of Quantities, the Drawings, the Form of Agreement, the
Performance Bond and if requested, the Advance Payments Guarantee.
g) The Tender is
Contractor's offer to undertake the Works in accordance with the terms of the
Contract Documents.
h) The Site Agent is
The Contractor's chief representative on the site of the Works.
i) The Works are
All those items which are to be constructed under the terms of the Contract i.e. all
Permanent and Temporary Works.

j) The Contractor is the legal entity that is party to and performs a works contract, the
other party to the contract being the "Employer.¨ Contractor means "Provider¨, as
defined in the Public Procurement and Disposal of Public Assets Act, 2003.
k) The Consultant is a professional entity or individual who has been engaged to offer
professional expertise as defined by the terms of reference agreed between the entity
or individual and the Employer.

iii
ABBREVIATIONS

ACE Assistant Commissioner for Engineering
ADB African Development Bank
ADF African Development Fund
CML Central Materials Laboratory
DE Director of Engineering
DP Direct Purchase
EACD External Aid Co-ordination Department
EEC European Economic Commission
EFA External Funding Agency
EÌC Engineer -in- Chief
ERA Ethiopian Roads Authority
EÌRR Economic internal rate of return
FA Force Account
FÌDÌC Federation Ìnternationale des Ìngenieurs-Conseils
GCC General Conditions of Contract
GOU Government of Uganda
ÌCB Ìnternational Competitive Bidding
ÌDA Ìnternational Development Agency
ÌTT Ìnvitation to Tender
LCB Local Competitive Bidding
LÌCB Limited Ìnternational Competitive Bidding
LS Local Shopping
MOFPED Ministry of Finance, Planning and Economic Development
MOWT Ministry of Works and Housing
NGO Nongovernmental Organisation

49

The Bank is responsible for this part of the process. Bank staff review the
work done during identification and preparation, often spending three to four
weeks in the client country. They prepare for bank management either Project
Appraisal Documents (investment projects) or Program Documents (for
adjustment operations) and the Financial Management team assesses the
financial aspects of the project. The PÌD is updated during this phase. These
documents are released to the public after the project is approved (see
below).

The Negotiation and Approval Phase

After Bank staff members have appraised the proposed project, the Bank and
the country that is seeking to borrow the funds, negotiate on its final shape.
Both sides come to an agreement on the terms and conditions of the loan.
Then the Project Appraisal Document (PAD) or the Program Document
(PGD), along with the Memorandum of the President and legal documents are
submitted to the Bank's Board of Executive Directors for approval. The
appropriate documents are also submitted for final clearance by the borrowing
government which may involve ratification by a council of ministers or a
country's legislature. Following approval by both parties, the loan agreement
is formally signed by their representatives. Once this has occurred, the loan or
credit is declared effective, or ready for disbursement, after the relevant
conditions are met, and the agreement is made available to the public.


The Project Appraisal Document (PAD) presents all the information the Board
needs to approve Bank financing of the proposal. Before 1999, this document
was called the Staff Appraisal Report. The Program Document (PGD)
describes adjustment lending operations, and sets out the Bank's appraisal
and assessment of the feasibility and justification for the program.

The Technical Annex supplements a Memorandum and Recommendation of
the President for freestanding technical assistance loans, which do not
require Project Appraisal Documents.

The Implementation and Supervision Phase

The implementation of the project is the responsibility of the borrowing
country, while the Bank is responsible for supervision. Once the loan is
approved, the borrowing government, with technical assistance from the
Bank, prepares the specifications and evaluates bids for the procurement of
goods and services for the project. The Bank reviews this activity to ensure
that its procurement guidelines have been followed. Ìf they have, the funds
will be disbursed. The Bank's Financial Management Team maintains an
oversight of the financial management of the project including periodically
requiring audited financial statements.

UsefuI pubIic document

Report on the Status of Projects in Execution provides a very brief summary
of all projects that were active during the previous fiscal year. Previously an
internal communication to the Board of Executive Directors, the SOPE Report
now is available to the public. Projects that closed during the fiscal year are
no longer included in the SOPE, since their Ìmplementation Completion
Reports are also publicly disclosed.

The ImpIementation CompIetion Report

48
Bank's lending program and are a useful source of information for interested
stakeholders and businesses wishing to identify potential future areas of Bank
lending. During the identification phase, Bank teams work with the
government to identify projects which can be funded as part of the agreed
development objectives. Once a project has been identified, the Bank team
creates a Project Concept Note (PCN) which is an internal document of four
to five pages that outlines the basic elements of the project, its proposed
objective, likely risks, alternative scenarios to conducting the project, and a
likely timetable for the project approval process.


The Project Information Document (PÌD) is prepared after an internal review
of the PCN and is released publicly through the Bank's ÌnfoShop. Ìt is usually
four to five pages long and contains the information mentioned above - the
objective, a brief description, etc. Ìt also contains the name of the World Bank
Task Manager or Team Lead who is supervising the project, a useful contact
for companies interested in bidding for work on the project. The PÌD is an
essential resource for tailoring bidding documents to the project concerned.

The Integrated Safeguards Data Sheet (ÌSDS) is also prepared for the first
time after the project's first formal review and made available publicly. Ìt
identifies key issues under the World Bank's safeguard policies for
environmental and social issues, and provides information about how they will
be addressed during project preparation.

The Preparation Phase
This part of the process is driven by the country that the Bank is working with
and can take anything from a few months to three years, depending on the
complexity of the project being proposed. The Bank plays a supporting role,
offering analysis and advice where requested. During this period, the
technical, institutional, economic, environmental and financial issues facing
the project will be studied and addressed - including whether there are
alternative methods for achieving the same objectives. An assessment is
required of projects proposed for Bank financing to help ensure that they are
environmentally sound and sustainable (Environmental Assessment). The
scope of the Environmental Assessment depends on the scope, scale and
potential impact of the project.

An Environmental Assessment Report (EA) analyzes the likely environmental
impact of a planned project and steps to mitigate possible harm.

An Indigenous Peoples Development Plan identifies potentially adverse
effects on the health, productive resources, economies, and cultures of
indigenous peoples.

The Environmental Action Plan - describes the major environmental concerns
of a country, identifies the main causes of problems, and formulates policies
and concrete actions to deal with the problems.

The Appraisal Phase

iv
PCN Project Concept Note
PÌP Public Ìnvestment Plan
PPDA Public Procurement and Disposal Authority
SPP Sectoral Planning Department
SCC Special Conditions of Contract
SG Solicitor General
TOR Terms of Reference


1
1.0. INTRODUCTION

1.1 Background

The Ministry of Works and Transport (MOWT) executes a number of road
and bridge projects from the identification stage all through the project cycle
among other mandated functions.

While project identification, feasibility and detailed design studies, contract
documentation, procurement services and construction supervision are
handled by Engineering Development Division, is handled by the
Construction Section. The input of the Transport Planning and Materials
Section is made as and when required during project implementation.
Completed projects are handed over to the Road Maintenance Division for
operation and maintenance.

While different stages of the project cycle are handled by different sections of
the Ministry, they are also often funded by different donors and contracted to
different Consultants and Contractors. Project execution has consequently
varied, in the past, from project to project depending on the parties involved
in the execution.

This Project Ìmplementation Manual has been written to ensure that MOWT
Projects are implemented in a timely, orderly and standard manner. Ìt is
hoped that the Manual will be a good reference book for Project Co-
ordinators, Consultants and Contractors handling MOWT Projects.

1.2 Scope of the ManuaI

The Manual covers all stages involved in the implementation of road and
bridge projects. For every stage of project implementation, the Manual states
what has to be done, who does it and how it is done. A number of annexes
are provided in the Manual to explain fully how certain tasks are performed
and also giving standard formats for reports, certificates, agreements, bonds,
etc. The Manual applies to projects that follow all stages of the project cycle
and may not be directly applied to projects such as technical assistance,
twinning arrangements, etc.

1.3 Organization of the Ministry

The MOWT organisation structure consists of two Directorates, one of
Engineering and one of Transport. The Engineering Directorate is
responsible for management of trunk roads while the Transport Directorate
handles the management of other sub-sectors namely rail, air and water.
The Ministry also has a Department of Finance and Administration, which is
responsible for administration, personnel and finance and Administration,
which is responsible for administration, personnel and finance matters.

1.4 Project CycIe

1.4.1. GeneraI

Projects are planned and carried out using a sequence of activities commonly
referred to as the project cycle. There are many ways of defining the steps in
the sequence but the following terminology in road projects is used by
MOWT: - identification, feasibility and preliminary engineering study, detailed

47

How the Process Begins: Poverty Reduction and Country Assistance
Strategies
The Bank recognizes that many past assistance efforts, including some of its
own, failed because the agenda was driven by donors rather than by the
governments it was trying to assist. Under its current development policy, the
Bank helps governments take the lead in preparing and implementing
development strategies in the belief that programs that are owned by the
country, with widespread stakeholder support, have a greater chance of
success.
Ìn low-income countries, the Bank uses the Poverty Reduction Strategy (PRS)
approach which involves widespread consultation and consensus building on
how to boost development. Under this process, a national poverty reduction
strategy is prepared by the country, creating a framework for donors to better
co-ordinate and align their programs behind national priorities. The
government consults a wide cross-section of local groups and combines this
with an extensive analysis of poverty in the country's society and its economic
situation. The government determines its own priorities from this process and
produces targets for reducing poverty over a three to five year period. These
are outlined in a Poverty Reduction Strategy Paper (PRSP). The Bank and
other aid agencies then align their assistance efforts with the country's own
strategy - a proven way of improving development effectiveness.
The Bank's blueprint for its work with a country is based on a Country
Assistance Strategy (CAS) which, in the case of low income countries, is
derived from the priorities contained in the country's Poverty Reduction
Strategy Paper. The CAS is produced in co-operation with the government
and interested stakeholders. The preparation of the CAS may draw on
analytical work conducted by the Bank or other parties on a wide range of
economic and social sectors, such as health, education, agriculture, public
expenditure and budgeting, fiscal management, or procurement, among
others.
The Identification Phase
The Bank's Country Assistance Strategy (CAS) forms the blueprint for its
assistance to a country. Ìn low-income countries, the CAS is based on the
priorities identified in the country's Poverty Reduction Strategy Paper (as
outlined above). The goals outlined in the CAS guide the priorities of the

46
9.0 APPENDICES

9.1. Appendix 1, WorId Bank Project CycIe

Project Cycle

Overview

Each year the World Bank lends between US$15-$20 billion for projects in the
more than 100 countries it works with. Projects range across the economic
and social spectrum in these countries from infrastructure, to education, to
health, to government financial management. The projects the Bank finances
are conceived and supervised according to a well-documented project cycle.
Documents produced as part of the project cycle can be valuable sources of
information for interested stakeholders wanting to keep abreast of the work
the Bank is financing and for businesses wishing to participate in Bank-
financed projects. Below is a step-by-step guide to the project cycle, the
documents that are produced as part of the process, and how to access them.
Click on image to see larger view


2
design, procurement and funding, construction supervision and management,
operation and project evaluation.

1.4.2. Identification

The first stage of the cycle is to find potential projects. This is sometimes
known as the pre-feasibility stage. Projects are generally speaking identified
by any of the following methods.

i. Suggestions from MOWT technical staff and political leaders
ii. Proposals by MOWT to extend existing programmes or projects.

Projects that are identified to support approved strategies and are financially,
economically and environmentally sound will be selected for further
development by the and included into PÌP. This process usually involves
consulting of donor agencies. Once a project has been accepted for further
development a Project Concept Note (PCN) will be prepared, often in co-
operation with the potential donor agency. The Project Concept Note outlines
the basic elements of the project, its proposed objective, likely risks
(environmental including), alternative scenarios to conducting the project and
likely timeframe for the project approval process.

Ìdentification of projects is done very carefully to distinguish promising
projects from dubious ones and also avoid halting of projects at a later stage
after arousing the expectations of interested groups.

1.4.3 FeasibiIity and PreIiminary Engineering Study

Projects that have been identified and for which Project Concept Note has
been prepared will have go through the next phase, the feasibility and
preliminary engineering study as well as environmental and social impact
assessment.

The study and environmental/social assessment provides enough information
for deciding whether to/not to proceed to a more advanced stage of planning.
The level of detail of this study depends on the complexity of the project and
how much is known already about the proposal. This study defines the
objective of the project. Ìt also considers alternative ways of achieving these
objectives and eliminating poor alternatives. The study provides the
opportunity to mould the project to fit its physical and social environment in
such a way as to maximise the return on the investment. Once this study has
indicated which project alternative is likely to be most worthwhile, detailed
planning and analysis may begin.

Project appraisal, performed by borrowing banks and/or donor agencies
concludes this phase of the project implementation.

Note: The study may also indicate that the project is not viable and thus, has
to be abandoned.

1.4.4 DetaiIed Design

Detailed design of the project usually is the responsibility of the MOWT and
follows government's provisional commitment to the project as a result of the
outcome of the feasibility and preliminary engineering study. MOWT usually
employs a Consultant to conduct the detailed engineering study and to
prepare consequent Tender Documentation. Financiers and/or donor
agencies (if any involved) will supervise this process.

3
Several decisions which affect economic performance are taken throughout
the design and economic appraisal often results in redesign.

1.4.5 Procurement / Tendering

This stage involves negotiations with potential financiers, invitations to tender
and negotiations with Consultants, Contractors and suppliers.

Once financing arrangements have been finalised, the Employer, often in co-
operation with the financiers, will prepare the tenders for consulting services,
for construction of works and for supplies.

Chosen Consultants will usually assist to review the tender documentation,
prepare invitations for Contractors to pre-qualify, invite tenders for
construction and analyse the tenders received from Contractors and prepare
Contracts to be signed by the Employer.

1.4.6 Construction Supervision and Management

At the beginning of this stage the Employer will enter into contracts for the
construction and supervision of the works. These contracts usually will have
to be reviewed by the financier.

Consultants are recruited to assist the Employer to ensure that procurement
guidelines, contract drawings, specifications, schedules and other contract
documents are followed in the execution of works.

Contractors are employed to execute the works in accordance with Contract
Documents.

1.4.7 Operation

Once a certificate of completion has been issued and works have been taken
over by the Employer, the constructed road or bridge may be put into use. Ìt
is during this phase that benefits of the infrastructure are realised and its
maintenance undertaken.

1.4.8 Project EvaIuation

The final phase of the project cycle is evaluation. This consists of looking
back systematically at the successful and unsuccessful elements of the
project experienced during implementation and the lessons acquired can
help to learn how planning can be improved in the future.

For evaluation to be successful, it is important that data about the project is
collected and recorded in a systematic way throughout all the stage of the
project cycle. Project evaluation may be carried out using different methods.
Ìn the same cases when project evaluation has been carried out by MOWT,
but if each stage of the project, that need to be brought to the attention of the
project management.

Project evaluation should lead to specific recommendations about improving
aspects of the project design which is then used to improve on-going and
future planning.


45
shall be allowed to the Assigned/Attached Staff, during the mobilisation
period, to permit the determination of their current experience and abilities.
All these are to facilitate the assessment of Training Needs of the
Assigned/Attached Staff.

The Consulting Engineer shall be required to include in his proposal details of
how this training shall be affected, showing exactly the number of man-
months proposed for each staff in the field and in the office. The Consulting
Engineer shall in the proposal compute all the costs required for
accomplishing this task.

Assigned/Attached Staff shall work under the exclusive direction of the
Project Engineer, who shall from time to time submit their training progress
reports to the EÌC/DE.

8.5 The District Engineer

Ìf completion with the Consulting Engineer's work requires co-operation with
other Government Departments, the Ministry shall provide liaison and
assistance to the Consultant's efforts to gain access to all information that
may be necessary for the proper conduct and completion of works. The
District Engineer shall from time to time be called upon to provide such
assistance at the District level.

The MOWT District Engineer, to whom maintenance of the works will revert
after handing over, shall attend all site meetings and shall raise such issues
that, to his opinion, might assist in proper conduct and completion of works,
and this opinion shall not be unreasonably ignored.

44
8.0 ROLE OF MOWT IN PROJECT IMPLEMENTATION

8.1 GeneraI

(a) All Government Civil Engineering Contracts are signed on behalf of the
MOWT by the EÌC/DE. The ACE (Engineering Development) and ACE
(Materials) are delegated the powers to control all civil engineering
construction works on behalf of the EÌC/DE. No changes in the
contract documents can therefore be made except with the specific
consent and authority of the EÌC/DE.
(b) The Project Engineer and his/her staff are appointed by the EÌC/DE to
direct and supervise the project on his behalf and to ensure compliance
with the contract documents can therefore be made except with the
specific consent and authority of the EÌC/DE.

8.2 Project Co-ordination

The Commissioner / Roads shall play the role of Project Co-ordinator in
linking the Project Manager with the EÌC/DE and other senior staff of the
Ministry. The ACE (Engineering Development) may do so by appointing, on
behalf of EÌC/DE, a Principal Executive Engineer to be project co-ordinator
when and where he/she sees fitting.

The Project Co-ordinator shall in liaison with the Project Manager closely
monitor progress of works, organise site meetings, recommend to ACE
(Engineering Development) all necessary changes to the contract documents
for further discussion with and approval by EÌC/DE.

8.3 Counterpart Staff

The Ministry will in conjunction with the Consulting Engineer arrange for the
selection and provision of Counterpart Staff where required. Counterpart
Staff will work under the exclusive direction of the Consulting Engineer, in so
doing they improve on their performance by gaining additional experience.

Ìn the event that member of the Counterpart Staff fails to perform adequately
the work assigned to him/her by the Consulting Engineer, provided such work
assignment is consistent with the position occupied by the staff member, the
Consulting Engineer, may request that he/she be replaced and such request
shall not be unreasonably refused.

Ìf counterpart staff is not provided in accordance with the agreement, the
Ministry and the Consulting Engineer shall agree on how the affected part the
works will be carried out and upon a revised compensation thereof.

8.4 Assignment/Attached Staff

The Ministry shall if deemed necessary assign/attach to the project junior
professional staff herein referred to as Assigned/Attached Staff, and the
Consulting Engineer shall provide for the appropriate training and
instructions. Ìt is important that the Assignment/Attached Staff are given
enough opportunity to gain professionally from and follow closely all the
stages of the Consulting Engineer's work.

Access shall be required to and co-operation from such Ministry Senior Staff
as may be appropriate to determine the skills required of the
Assigned/Attached Staff by the end of the training period. Also, prior access

4
2.0 PROJECT IDENTIFICATION

2.1 GeneraI

Project Ìdentification is the first among the seven (7) stages involved in the
life cycle of a road project.

2.2 Project Concept

The Project Ìdentification process involves the development of the concept of
the project, definition of its objectives and consideration of possible ways of
achieving these objectives. Ìt is considered as the process leading to the
acceptance of a project by Ministry of Finance, Planning and Economic
Development (MOFPED) and its ultimate inclusion in the Public Ìnvestment
Plan (PÌP).

The Project Ìdentification Stage has three steps: -

a. The development of the Concept of the Project.
b. Preparation of the Project Write-up
c. Preparation of the Project Profile

2.2.1 Project Identification of a Road Project

A road construction/rehabilitation project is usually large, complex and donor
financed. The road project identification process is accompanied by an
economic feasibility, environmental and social impact assessment and
preliminary engineering study, often carried out by Consultants
appointed/approved by the donor agency. This study considers in detail the
alternative technical solutions and administrative arrangements for the road
project and analyses its financial and economic as well as environmental
ecological and social viability.

2.2.2 ProceduraI Framework for Project Identification

The procedural framework for road project identification is shown in the
attached Appendix 1 as part of the overall project planning process.

2.2.3 Project Conception

The idea for a project originates either form within MOWT, local community,
private sector or NGO and is mainly conceived through the following: -

a) The need to improve on the level of service of a facility or
infrastructure, as in the case of a road rehabilitation or construction
project.
b) Whether investing in the project is the best solution to the problem
rather than a policy change measure.
c) Whether the proposed way of implementing the project is the most
feasible way of achieving the project objectives.
d) Whether other investments are required in order to secure the
success of the project.
e) Whether the project, is likely to be accommodated within the
Ministry's budgetary ceilings for both the recurrent and development
budget.

5

2.3 The Project Write up

2.3.1 New Projects

This is the second step of the project identification process. The project
write-up is prepared by the Ìmplementing Agency (MOWT), having
considered all the points in 2.2 above. The project write-up constitutes the
formal request to MOFPED to include the project in the PÌP. A typical Project
write-up consists of summary data about the project, a description of the
background, objectives, main features of the project and the proposed
financing plan. The format of a project write-up is shown in Appendix 2 in
Clause 9.

2.3.2 On-going projects

An on-going project requires a project write-up as a part of the annual review
of the PÌP. A project write-up is also re-written for an on going project when
there is a significant change in the project. Ìt is also revised annually as part
of the PÌP review.

2.4 Project ProfiIe

The project write-up is submitted by the implementing agency (MOWT) to
MOFPED where it is used as a basis for the preparation of a shorter project
profile which is incorporated in the PÌP. The profile is prepared by the
Sectoral Planning Department (SPD) within the MOFPED. The preparation
of all Project Profiles by SPD provides consistency in the style and format
and facilitated linkages between different projects to be considered.


43
7.4 EIement of Project EvaIuation

There are at least three main elements of project evaluation exercise: -

 Reviewing the technical success. Did the technical design work as
expected? What were the main strengths and weaknesses in the design?
How did the project adjust to them?
 Reviewing the implementation and management. How satisfactory were
the management arrangements? How realistic were the assumptions on
which implementation schedule was based/ How did the project
management perform?
 Reviewing the environmental aspect. To which extent the measures
specified in the Environmental Management Plan have been adhered to
and how successful and adequate those measures have been.

What was the ex post Economic Ìnternal Rate of Return (EÌRR) and how did
this compare with that predicted? (Ex post EÌRR calculations may be
attractive in concept, but in practice they may pose considerable difficulties
and are only occasionally attempted).

The person/agency responsible for evaluation may ask this questions and
more others during the evaluation process. These guidelines must be
adhered to.

7.5 AppIication of ResuIts

The evaluation should result in specific recommendations about improving
aspects of the project design which can be used to improve on-going and
future planning. Evaluations require a considerable commitment of resources
and for this reason should only be undertaken where the results can be
expected to contribute to subsequent decision making.

Mid-term evaluations are likely to be particularly useful since there is a direct
link with the subsequent implementation of the project. By contrast ex post
evaluations can be the most expensive to undertake since they frequently
involve a special data collection exercise and should be undertaken more
selectively. For example, there might be little point in conducting an ex post
evaluation of a project which had failed for reasons which are now obvious
and which represented an investment strategy which was no longer
government policy, (However, it might still be useful to ask how such an
inappropriate decision came to be made).

7.6 ExternaI Funding Agency EvaIuations

External Funding Agencies (EFAs) have their own internal requirements to
evaluate the projects they fund and will often offer to undertake an evaluation
or to assist the Ministry in undertaking one. Such offers shall generally be
welcomed because: -

a) they reflect a legitimate concern on the part of the EFA about the
effectiveness of the aid they provide, and
b) they provide additional professional and logistical resources to the
Ministry to undertake evaluations.

However, there are no free offers, and an EFA evaluation will inevitably have
an opportunity cost in the considerable amount of officials' time taken up.

Procedure for EFA evaluations are available with the Ministry of Planning and
Economic Development and shall be adhered to.

42
7.0 PROJECT EVALUATION

7.1 GeneraI

The final stage of the Project Cycle is evaluation. This consists of looking
back systematically at the successful and unsuccessful elements of the
project experience to learn how planning can be improved in the future. For
evaluation to be successful, it is important that data about the project is
collected and recorded in a systematic way throughout all stages of the
project cycle. Without this, it is usually impossible to determine detailed
events and information that were available during periods leading up to the
taking of important decisions.

7.2 Types and objectives of EvaIuation

Evaluation may take place at one or more of three stages during the project
cycle:

 Mid-term evaluation: - During Ìmplementation to assess the likelihood of
the project achieving its objectives and suggesting changes in design or
otherwise to increase the project's chances of success.

 Terminal evaluation: - Undertaken immediately on completion of the
project. Since it is usually still too early to assess the benefits of the
project, the evaluation concentrates on reviewing the implementation
stage and identifying the main lessons applicable to other projects.
There are similarities between terminal evaluation and a project audit.
 Mid-term Evaluation: - Undertaken during completion of the project. Ìt is
usually still too early to assess the full benefits of the project, the
evaluation concentrates on reviewing the implementation stage and
identifying the main lessons applicable to other projects. There are
similarities between terminal evaluation and a project audit
 Ex-post evaluation: - undertaken sometime after completion of the project
when its impact can be assessed against its original objectives. The
results of ex post evaluations feed back into the design of new projects
and the development of sector policy.
7.3 ResponsibiIity for Project EvaIuation

Evaluation may be carried out by three different parties: -

 The sponsoring organisation or external funding agency (EFA) may
undertake evaluation.
 Ìn large projects, a separate unit within the implementing organisation, in
this case the MOWT, may be set up to monitor each stage of the project
by collecting data for identifying problems that need to be brought to the
attention of the project management.
 Ìn other cases, outside agencies will be used to provide independent
audits.

The Ministry of Works and Transport will specify the responsibility of
evaluation for particular projects depending on its scope and when and where
the said evaluations applicable.

6
3.0 FEASIBILITY AND PRELIMINARY ENGINEERING
STUDIES

3.1 GeneraI

Economic feasibility, environmental impact of the project including social
aspects are analysed and a preliminary engineering study is performed at
this stage of the project life. The Bidding Document for the Procurement of
Consultancy Services, issued by the PPDA gives detailed instructions as how
to perform such studies. General description of these studies is given here
below.

3.2 FeasibiIity Study

3.2.1. Need for the FeasibiIity Study

A feasibility study (economic and preliminary engineering) is always a
requirement for a road project after the project identification process. There
are usually a number of alternative technical solutions to be considered from
which the most economically viable alternative is determined. During the
feasibility study it is always established whether for the best alternative
solution chosen:-

a) the project confirms with the country's development objectives and
priorities;
b) the relevant policy framework is compatible with the achievement of the
projects' objectives;
c) the project is technically sound and that it is the best of the available
technical alternatives;
d) the project is administratively workable;
e) there is adequate demand for the projects output;
f) the project is economically justified and financially viable;
g) the project is compatible with the customs and traditions of the
beneficiaries; and that
h) the project is environmentally (ecologically and socially) sound.

3.2.2. ResponsibiIity for the feasibiIity study

Donor Agency procedures often require that a feasibility study be carried out
by Consultants engaged through international competitive biding and the
agency usually provides the financing. Consultants engaged on a feasibility
study would normally be responsible to the Engineering Development
Division of MOWT, the sector Ministry under which the road project falls.
However since the study involves commitment of resources, the MOFPED is
involved in the approval of the need for the consultancy, of the Terms of
Reference and of the final report. The MOFPED through the External Aid
Co-ordination Department (EACD) is also the formal channel of
communication between the Government and the Donor Agency.


7
3.2.3. Traffic Studies

Traffic Studies are one of the major elements of the economic feasibility
study. The type and volume of traffic forecast to use the proposed road is
estimated by collecting and analysing traffic counts and Origin-Destination
Survey of the present volume of freight and passenger vehicle on the road
under study. Traffic studies involve the following activities: -
a) examination of statistical data on the current and historic traffic
counts disaggregated into vehicle categories or classes;
b) Carrying out additional traffic counts and other field investigations to
supplement existing data;
c) identifying, describing and quantifying existing and potential traffic
generating factors in the area served by the road, based on the economic
development of the region and the future needs of highway transport
that would result from growth in other sectors;
d) making annual traffic forecast and general projections of future traffic for
the economic life of the proposed road.

3.2.4. SectoraI Studies

These studies are part of the economic feasibility study. They are always
carried out to determine the future needs for highway transport that will result
from developments in other sectors; i.e.: -

e) population growth and changes in rural and urban population distribution;
f) national and regional economic growth;
g) development of industry, agriculture, tourism and commerce within the
project area;
h) development of animal industry;
i) traffic growth in neighbouring countries;
j) development of social services, medical facilities and schools caused by
the new project facility.

3.2.5. Cost Benefit AnaIyses

Available information on vehicle operating and road maintenance costs
should be examined and valid current estimates of such costs for both
"without" and "with" situations should be produced. Attention should be given
in the analyses to conditions affecting costs, which are specific to Uganda
and to the area of the studies.

Since the greater element of measurable and quantifiable user benefits will
be derived from the improvement of existing roads, in practice, from savings
in vehicles operating costs, particular attention should be given to the
development of valid current estimates of such costs. Ìn particular, all
individual factor unit costs (such as vehicle prices, interest rates, tyres, fuel,
crew wages, insurance, etc) input into the economic model should be derived
from direct investigation of present costs.

The individual parameters, such as roughness, which are input into the model
to determine the different component costs of vehicle operations shall be
those that apply to the individual design standard being evaluated. Ìn
particular, the analyses shall ensure that the base case (without) is well
justified and in accordance with the existing and expected future road

40
The defects liability period is a period during which the Contractor must
complete any outstanding work and also make good any defects. The period
begins when the Contractor is issued with a Certificate of Practical
Completion, stating when the works were completed and maintained to the
Project Manager's satisfaction.

Ìn the event that some items maintenance for which the Contractor is
responsible remain unattended to after the stipulated defects liability period,
MOWT shall be entitled to withhold the estimated cost of such work from the
balance of the retention money, until the Contractor has completed it. Failing
this, MOWT may complete the work items at the Contractor's expense.

6.30 Retention Money

Retention Money is a percentage of the value of work completed and any
other items as measured monthly for payment to the Contractor that is
retained by MOWT during the period of construction.

Generally MOWT contracts stipulate a percentage of retention as 5% of each
payment and also 5% of the contract price as the limit of the Retention
Money. Half of this retention money is paid back to the Contractor when the
Certificate of Practical Completion is issued, and the balance at the expiration
of the defects liability period.

6.31 FinaI Account

The Project Manager's representative shall assess the final payment due to
the Contractor under the terms of the contract before the end of the defects
liability period. The assessment of the outstanding payments takes into
account both the measured items of work and claims, if any.

The Project Manager's representative prepares a Final Account and issues
the Final Certificate on MOWT Form 760. The Final Certificate must be
signed by both the Project Manager's representative and the Contractor's
Agent and shall be supported by a full submission of measurements and
computation of quantities.
6.32 Arbitration

Ìf on account of failure to settle a claim, or for any other reason a dispute still
remains between the parties in connection with the works it may be referred
to arbitration under the conditions prescribed in the contract.

Arbitration should be resorted to only after ultimate failure of the parties to
agree by negotiation. Arbitration shall take place in Uganda and be in
accordance with the Ugandan rules of Conciliation and Arbitration by one or
more Arbitrators appointed in accordance with the rules.


39
A decision to recompense a Contractor in respect of extra-contractual claims
may be taken by the Employer on what he/she may consider to be a moral
obligation in order to avoid an admission of liability. Claims of this nature are
often examined in this light and, where possible, ex-gratia payments are
granted to settle such claims.

6.26 Certificate of PracticaI CompIetion

When a Project (or a section of road) has been substantially completed, the
Project Manager's representative may inspect the work in conjunction with
the Contractor and the responsible District Engineer and take over the project
from the Contractor by the issue of a Certificate of Practical Completion
issued on MOWT Form 761.

6.27 As-buiIt Drawings

The Consultant shall produce as-built drawings showing any deviations from
the working drawings, occurring during construction. As-built drawings
should also include data additional to the pre-contract soil survey on strata
encountered, foundation levels and the condition and position of services
diverted during the contract.

Work on the as-built drawings should begin on the first day of the contract
and deviations from the contract details should be marked as work proceeds,
attention being given to change which will subsequently be hidden below
ground. As-built drawings are of immense value in clarifying certain aspects
of the final account.

6.28 Project CompIetion Report

At the end of the project, the Project Manager and/or Consultant shall
prepare a Project Completion Report detailing factual information about the
project regarding the following:

i) Actual contract data;
ii) Construction details adopted and reasons for deviation from original
designs
iii) Materials incorporated in the permanent works;
iv) Cost of the works;
v) Special problems encountered and how they were tackled;
vi) Recommendations for operation and maintenance; and
v) Any other recommendations that may be relevant in the planning and
implementation of future projects.

Six copies of the Project Completion Report shall be submitted to MOWT not
later than 30 days after completion of the project. Two copies of the report
shall be sent to the Donor Agency by the Consultant on approval by MOWT.
This report provides feedback, both to MOWT and the Donor Agency, for
future contracts of the same type.

6.29 Defects LiabiIity Period

A defect liability period (maintenance period) of twelve months has been
adopted by MOWT on most road projects completed in the past.


8
maintenance policies and capabilities. Ìt is expected that where design
standards evaluated in the study have significantly different parameters they
will be reflected in vehicle operating costs.

For road maintenance costs for different identified options the analyses shall
ensure that such costs are strictly related to current and forecast traffic
volumes.

Ìn determining the economic costs for all factors in the study, the analyses
shall ensure that costs are net of all taxes and duties, or any other transfer
payments to Government, and shadow priced where appropriate to reflect the
true scarcity value of the resources being used.

Economic benefits for each identified option shall be expressed primarily in
terms of:
a) Saving in vehicle operating cost;
b) Savings in road maintenance expenditure;
c) Residual value of the road's structures at the end of the evaluation
period; and
d) Any other factor(s) that shall be considered relevant for the analyses, e.g.
employment generation, accident reduction, time savings, etc.

The last factor(s), if included, must be of demonstrable value added within
the Ugandan economy.

Ìn view of the fact that some indirect economic and social benefits arising
from the improvement in road conditions are intangible or difficult to quantify
accurately, detailed qualitative analysis of these benefits shall be performed.
Only when such benefits can be firmly demonstrated, can they be included in
the economic analyses. Ìn all other cases these benefits will not be included
in the economic evaluation of the project but may be used as secondary
justification for project implementation.

3.2.6. Sensitivity AnaIysis

This is the second stage of the economic feasibility study. Since the
economic analysis is based on assumptions made about the outcome of a
project, sensitivity analysis is carried out to determine the changes in the
Cost-Benefit Ratio and the Economic Ìnternal Rate of Return (EÌRR) in case
there is a change in the assumptions. The viability of a project can be
affected if the following changes occur: -

a) Design modifications due to unforeseen difficulties.
b) Unexpected cost increases.
c) Actual traffic levels on a new road differ significantly from those
predicted.

9
While carrying out sensitivity analysis of a road project the following steps are
followed:

a) Ìdentify the most important variable in the economic analysis.
b) Consider the realistic range of outcomes for each variable
c) Repeat the Cost-Benefit Analysis and EÌRR calculations for different
outcomes or combination of outcomes.

A robust road project design is the one where even under adverse
assumptions the outcome of the project is favourable, so the project is less
sensitive to uncertainty.

3.2.7. Economic EvaIuation

The evaluation of the economic viability of each option for the twenty years
following the completion of the construction of the road shall be assessed.
For this, the economic costs of the options being evaluated shall be
compared with the relevant level of economic user benefits arising from
implementation of the project.

The economic viability for each option shall be expressed in terms of:

a) The Economic Ìnternal Rate of Return;
b) The Net Present Value in relation to the Uganda Government's current
opportunity costs of capital; and
c) The Benefit ÷ Cost ratio.

The results of the analysis should be expressed in terms of the first year Rate
of Return to indicate the optimum year of construction and opening of the
road.

3.2.8. Risk AnaIysis

Uncertainty is where the likelihood of a particular project outcome is
unknown. Risk is where probabilities are attached to different outcomes of
the project economic assumptions, e.g. traffic increase levels. Risk analysis
is used on a road project with historical data and is taken into account during
the calculation of the projects' Costs and Benefits.

3.3 PreIiminary Engineering Studies

Having carried out the economic feasibility of a road project and determined
the most sound road improvement/construction alternative a technical study
(preliminary engineering study) is then carried out. The purpose of
preliminary engineering study is to determine what is going to be done and
what it requires to do it to attain the project objectives. Preliminary
engineering of a road project involves the following: -

3.3.1 Topographic Surveys

Topographic and aerial surveys are carried out to determine the following: -
a) Location of the existing road centre-line and the proposed route.
b) Cross-sections related to the centre-line of the proposed route
alternative.

38
3. All amounts due in respect of materials prepayment.
4. All amounts due in respect of any provisional sums in the Bill of
Quantities.
5. All amounts due in respect of any approved day works.
6. All monies due to the Employer in respect of recovery of mobilisation
advance and liquidated damages, if any.
7. All other sums to which the Contractor considers himself entitled to
under the contract, including cost claims.

The Contractor's monthly progress statement shall be presented in the form
approved by the Project Manager.

The Project Manager examines the Contractors Monthly Progress Statement,
approves it, prepares a certificate and issues it to the Employer within a
specified period after receiving the Contractor's Monthly Progress Statement.

But no Payment shall be made to the Contractor if the sum due is less than
the minimum stated in the contract.

The Ìnterim Certificate shall contain the following elements, as appropriate:

1. The value of the work items which are included in the Bill of
Quantities.
2. Variations, if any,
3. Day works, if any
4. Price-Adjustment
5. Materials prepayment
6. Retention money
7. Mobilisation advance
8. Liquidated damages if any
9. Currencies of payment

6.25 CompIaints and Third Party CIaims

Complaints in the case of road works usually arise from the public for
compensation for their land, crops, building, etc which may be used or
destroyed during construction, care must always be taken to ascertain
ownership, follow the right procedures for valuation, ascertain that the
complaint is not within the road reserve and that no compensation has been
made for the property before.

Third party claims which are either not made under the conditions of contract
or those allegedly made under them but considered legally unenforceable by
the employer on the basis that they do not fall within their provisions.

Consequently payment in respect of such claims is considered to be outside
the framework of the contract.

Claims which fall into this category often arise because a Contractor has
suffered a loss which cannot be attributed to a fault of either party within the
terms of the contract.


37
The advance notice requirement is usually included in the contract because it
enables the Project Manager to investigate claims at the material time and
make cost records and take steps to avoid or minimise claims.

To be able to deal with claims the Project Manager must have access to all
relevant facts and estimates.

The Project Manager must always check that claimed losses do not arise
from Contractors own inefficiency. The Project Manager must have adequate
record in order to be able to check claims properly.

Several GCC clauses deal with Contractual claim which may be for extension
of time or extension of time with costs or costs alone.

6.23 Measurement of Works and Procedure for Payment

The measurement and payment clauses of each section of the specification
and preamble to the Bill of Quantities lay down provisions of methods for
measurement of completed works and for payment.

Measurements are done in order to ascertain and determine the value of the
works done in accordance with the contract as the quantities set out in the
Bill of Quantities are estimated quantities of the works, but they are not to be
taken as actual and current quantities of the works to be executed by the
Contractor in fulfilment of his obligations under the contract.

Normally measurement of work is the Resident Engineer's obligation.

When he/she requires work to be measured, he/she gives notice to the
Contractor's Agent who will assist the Resident Engineer in making such
measurement, and shall furnish all particulars required by them.

Should the Contractor's representative not attend, the measurement made or
approved by the Resident Engineer shall be taken as correct measurement of
the work.

The Resident Engineer shall prepare measurement records month by month,
and the Contractor shall examine and sign these when agreed.

The Contractor may raise a dispute over the correctness of named records in
writing within 14 days after his examination of the records.

6.24 Interim Payments

These are payments made to the Contractor for works carried out on monthly
basis.

The Contractor shall present Monthly Progress statement to the Project
Manager as soon as possible at the end of each calendar month.

The monthly progress statement shall include the following elements, as
appropriate:

1. The estimated value of permanent works up to end of the month
2. All amounts due under the price adjustment provisions.

10

Drawings showing the vertical and horizontal alignment and cross sections of
the proposed route alternative are made and presented in a format
prescribed in the Terms of Reference (TOR).

3.3.2 SoiIs and MateriaIs Investigations

Preliminary soils and materials investigations and tests are carried out to
identify sources of locally available construction materials and the necessity
for imported materials which are necessary to carry out the
economic/technical feasibility, final design and construction of the road
project. The Consultants always ensure that such materials exist in sufficient
quantities in the required area and if they do not, the implications of having to
import such materials are assessed.

3.3.3 HydroIogicaI Surveys

During the preliminary engineering studies, rainfall, drainage and other
hydrological factors are investigated to a sufficient extent to see how they
affect the design of the road. These studies are particularly carried out to
enable preliminary design on bridge structures and culverts to be undertaken.

3.3.4 Design Standards

The geometric and loading standards to be used in the road design are
always given in the TOR and the Consultant is responsible for the design
details within that framework. The methodologies employed for the design of
pavements, earthworks, drainage and other structures all conform with the
prevailing proven international techniques and always ensure use of available
materials.

The metric system is used throughout the design and the standards for
design of different types of roads and bridges as adopted by the Ugandan
Government are always adhered to where possible and adequate
explanations are always given where different standards are recommended
and subsequently adopted by the Consultant.

3.3.5 PreIiminary Design and Drawings

Based on the traffic studies, economic analysis and geophysical tests, the
Consultant recommends what he/she considers to be the most suitable
design and standards giving reasons for these recommendations.

The Consultant is required to carry out a preliminary engineering design of
the road at the suggested road standards and to prepare preliminary design
drawings using the format and title sheets as required by the Government or
as laid out in the TOR.

The Consultant shall prepare the preliminary design/drawings for the different
options using the format and title sheets as required by the Employer, as
follows:

a) Location plans, Scale 1:50,000;
b) Road plans, Scale 1:5,000 showing road centre-line, with chainages of
horizontal curves; location description and references to all drainage and
bridge works; right-of-way demarcation indicating land utilization; and
other relevant natural and cadastral information; and

11
c) Typical road cross-sections providing all geometric and pavement
features. Original plans shall become the property of the Employer.

3.3.6 Cost Estimates

Based on the findings and analysis of the various investigations carried out
the following information is furnished by the Consultant:

a) Quantities

Preliminary quantities estimated to an accuracy of +/- 20% are submitted for
the proposed construction. These quantities should include all the elements
described in detail in the Road Design Manual.

b) Costs

Preliminary design cost estimates for the different options including costs of
environmental mitigation measures and social costs, shall be net of taxes.
The preliminary cost estimate should give justification for details of foreign
and local costs as well as duties and taxes to be paid. The foreign exchange
component should include equipment depreciation; imported materials;
wages of foreign personnel; overhead and profit of foreign firms that may
undertake the construction of the road. The local currency component should
include the cost of right-of-way acquisition, local materials, salaries and
wages of local employees and taxes. The estimates shall include price
escalation, contingencies.

Detailed analysis of the taxes and duties element of the cost estimates shall
be presented separately.

3.4 Other Studies

Ìt is a requirement of every road project to include the following study
components: -

3.4.1 EnvironmentaI Impact Assessment Study

This study is always carried out to analyse the effect of the road project
investment on the environment and recommend appropriate solutions to
forestall any disagreeable effects resulting from the improvement of the road.
The study assesses the positive and negative impacts of the road project.
The study shall describe and assess the environmental impacts in the
development plans at local and national level, from construction,
maintenance, and traffic use of the proposed road, for example loss of
vegetative cover, foreclosure of other land uses, modification of natural
drainage patterns, changes in ground water table, landslides, erosion, stream
and lake sedimentation, degradation of vistas or cultural sites, and
interference with movements of wildlife, livestock and local residents. The
study shall also contain Environmental Management Plan to mitigate adverse
environmental effects that that project may have.


36
plant used to carry out the extra work are observed and checked by his
inspectors.

The Contractor's time and material sheets shall be checked and signed by
the Resident Engineers staff for each varied works authorised.

6.20 Deviation Orders (Variation Orders)

The contract binds the Contractor to construct the project as defined in the
Contract Documents. Ìt might, however, be necessary or desirable to change
some part of the original project during construction, due to for example:

1. Unforeseen conditions encountered on site.
2. Changed circumstances
3. Possible cost savings

GCC allows such changes or 'Variations' to be made within the frame work of
the contract through Variation Orders.

Under the contract it is only the Project Manager who is empowered to order
variations after due consultations with the Employer.

The Project Manager shall have a right and duty to order a variation when
he/she is of the opinion that such variation is either necessary or desirable.

Varied works shall be authorised in writing. All verbal orders on variation
must later be confirmed in writing either by the Project Manager sending
some authorisation to the Contractor or by the Contractor sending a letter of
confirmation to the Project Manager.

6.21 Cost variations (Contract Price Adjustment)

Ìn case adjustment of Contract Price becomes inevitable, the GCC shall be
applied to determine the effects of such an event.

6.22 CIaims

A claim is a formal demand for additional payment due under some provision
of the Conditions of Contract.

Claims by a Contractor for extra payment usually arise from: -

1) Encountering adverse physical conditions or obstructions which he/she
could not reasonably have foreseen, or
2) Dissatisfaction with rates fixed by the Project Manager for altered or
additional works, or
3) Delays caused to him which have affected the progress of works.
The Contractor must always give notice of his/her intention to claim.

The advance notice must be given as a matter of urgency


35
6.18.1 WeIfare Officer

On large contracts, especially those where a construction camp is provided,
the Contractor shall employ a welfare officer to see that living conditions
conform with the requirements of the local health authorities. He/she must
listen patiently to all complaints and do everything reasonable to remedy
them. He/she must also arrange recreational facilities and entertainment.
The Contractor shall also employ a camp superintendent to look after the day
to day running of the camps and their services.

6.18.2 MedicaI Services

A clinic and ambulance service shall be provided by the Contractor on site for
provision of basic medical treatment, immunization services and causality
arrangements for the site workers. For treatment of accidents on site,
persons trained in first aid should be located at convenient centres
throughout the work. All Contractor's foremen shall be equipped with first aid
kits.

6.19 ProvisionaI Sums, Prime Cost Sums, Contingencies and
Day Works

A provisional sum is usually a round figure quoted by the Project Manager
against an item, which the Contractor is not called upon to price himself. Ìt is
a kind of reserve fund to pay for doing that particular item, which may or may
not be spent, wholly or in part. The amount to be paid to the Contractor for
carrying out the item shall be that agreed upon later, either by reference to
the bill rates for the work actually carried out, or by a lump sum agreement, or
on a cost plus percentage basis.

Prime Cost Sums are monies provided in the Bill of Quantities to cover works
or services to be executed by a nominated Sub-Contractor or for supply of
goods from a nominated supplier, together with an opportunity to add a
percentage to cover his related work and profit.

Usually, prime cost sums cover supply and installation of certain materials.

Contingencies is a provision of a round sum in the Bill of Quantities accepted
by the employer for ordering extra works of a contingent nature arising from
essential need for changes.

The Project Manager shall have to seek approval of the Employer before
ordering extra works which he/she deems essential for the right construction
of the works.

Day works is a reimbursement to the Contractor for extra or varied works.
The prices to be paid for Day works are usually set out in a schedule
attached to the Contractors Tender and priced by him.

The typical Day work Schedule contains three parts which provide for
reimbursement to the Contractor on the basis of: -

1. The cost of labour plus a percentage for overheads.
2. The cost of materials used plus a percentage for handling etc.
3. The cost of plant at certain rates for each type of plant.

When the Resident Engineer authorises some extra works to be carried out
on a Day work basis, he/she must arrange that the labour, materials and

12
3.4.2 SociaI Studies (Women's RoIe in the Transport Sector)

This study is conducted to assess women's role in the transport sector in so
far as the project road influences the lives of women, children and the elderly,
and to quantify the benefits which would accrue to them during and after the
construction of the road. The Consultants are also required to indicate the
positive and negative effects of the development of the project on women in
the project area and should recommend appropriate modifications to the
project to minimise any negative effects.


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4.0 DETAILED ENGINEERING DESIGN

4.1. GeneraI

The work consists of furnishing engineering services complete in all respects
including all field and office works in accordance with highest standard of the
engineering profession and as approved by the Employer.

The Consultant will prepare all the necessary documents as required in the
Terms of Reference based on the works volume and approved by the
Employer, to call for bids in such further details as may be required for the
construction of works to be satisfactorily implemented by a Contractor.

The Study should take proper account of development master plans of the
towns traversed by the proposed route. A joint session meeting (Employer,
town administration officials and the Consultant) will be conducted to have a
common understanding to the town's future development plans to incorporate
as practical as possible in to the road design. These may include but not
limited to the extent of town sections standard of the main highway crossing
the towns, bus bays, utility locations and all the information shall be tied to
the design of the project road.

4.2 Data CoIIection and AnaIysis

i) CIimate

The Consultant shall examine existing data and provide the climatic
information conditions of the study area providing details of: -

a) Rainfall (length of records, monthly distribution and intensity, etc);
b) Temperature (length of records, monthly minimum, maximum and
average values) and;
c) Any other climatic features of importance and indicate the effects on
the construction work.

ii) GeoIogy, Land Use, Mapping and AeriaI Photography

The Consultant should compile a catalogue of the relevant geological
features of the study area including a description of the soils and rocks
encountered along the existing and new alignment and their effect and
influence on such factors as route location and design. The Consultant shall
use also relevant maps and aerial photographs from the Department of
Lands and Surveys.

The Consultant shall assess the need for and separately include in his
proposal the cost of any additional mapping and aerial photography
considered necessary for the study.

iii) Route SeIection

Alternatives of new realignments shall be proposed when the existing route is
not to the standard in different aspects. Horizontal and vertical alignments
shall be improved for the existing route in conformity with the design
standards.

iv) Design Standards

The geometric and loading standards for the different options shall comply
with current Uganda standards appropriate to the traffic and engineering

34
placed on the Contractor, it is necessary for the Resident Engineer's staff to
check all the setting out. A procedure for checking and approval of the
Contractor's setting out must be established early in the contract.

6.16 MateriaIs, Testing and QuaIity ControI

The Contractor shall set up a site laboratory with experienced staff to carry
out materials testing. The Contractor's Materials Engineer shall be approved
for the post by the Resident Engineer. All materials testing and quality
control activities both in the field and laboratory shall be executed jointly and
as directed by the Consultant's Materials Engineer.

The Consultant shall design and establish a workable quality control
procedure early in the contract and ensure that all site laboratory staff
understand the correct approach to sampling, interpretation of results and the
criteria for acceptance/rejection of tested sections of work to avoid site
disputes and confrontations that often arise from the test results.

Central Materials Laboratory (CML) shall carry out independent testing of
materials on site or completed sections of work, whenever it is found
necessary. The Contractor shall send samples of all materials proposed for
use in the permanent works to CML for independent testing and approval
prior to placing orders for their procurement in bulk. Site materials that fall in
this category include lime, cement, other soil stabilizing agents, bitumen,
aggregates, road base materials, sub-base materials, mild steel bars,
gabions, mattresses, guard-rails, road signs, road marking paint, road
chippings etc.

The following aspects for materials testing and quality control shall also be
approved by CML prior to implementation on site:

(i) Variations in project materials specifications;
(ii) Replacement of the Consultants Materials Engineer for project
supervision;
(iii) Materials testing standards;
(iv) Type and make of equipment to be procured for the site laboratory.

Ìn addition to the above, the Consultant shall submit a monthly materials
report in a separate cover, summarising results of all tests carried out and
indicating sections approved, rejected or repeated prior to approval. The
Consultant shall also submit a certificate of calibration for all site laboratory
equipment at commencement of the project and the end of each year in case
of projects lasting more than one year.

6.17 Safety

Under the construction regulations, the Contractor is made responsible for
the safety of his own employees and he/she is also responsible in certain
circumstances for the safety of other people such as when he/she undertakes
blasting operations, or in the use of machinery.

The specifications usually spell out Safety and Public Health requirements.

6.18 WeIfare


33
based upon the programme submitted by the Contractor as part of his Tender
and shall not deviate from the said programme. The Contractor shall
whenever required by the Project Manager also provide in writing for his
information a general description of the arrangement and methods which the
Contractor proposes to adopt for the execution of the works (Method
Statement).

6.12 FaciIities for the Project Manager

The Project Manager's facilities to be provided and maintained by the
Contractor are usually spelt out in detail in the specifications.

6.13 Records of Construction

There are five principal categories of records that the Resident Engineer
must keep on a construction site.

These are: -

i) Historical ÷ showing progress stage by stage, as proposed and as
achieved, including all relevant information having a bearing on this
subject such as records of weather, notes of discussions, decisions
and other key matters influencing the course of the job.
ii) Quantitative and Financial ÷ Measuring all that is done, the time and
rate it is done, together with all relevant particulars, so as to form the
basis of fair payment to the Contractor and for furnishing of figures
which show the cumulative cost of the job, the cost of the separate
parts of it, and the estimated total final costs at any time.
iii) Qualitative ÷ Being a record of all measurements and observations of
the quality and behaviour under test of the component parts of the
works the raw and made-up materials used and the foundation and
other conditions whose characteristics have an influence on the
behaviour of the works.
iv) As built records ÷ Being a pictorial record (the Record Drawings, etc of
all works as completed, showing the whereabouts and dimensions of
all parts as they exist at completion, together with factual descriptions
of their origin, their operation as described in the instruction manuals
and their performance under test.
v) Environmental ÷ Being a record of measures taken to safeguard the
environment

6.14 MonthIy Progress Reports

These are short but comprehensive reports complied by the Resident
Engineer and submitted to the Employer on a monthly basis in the first week
of each calendar month.

The report shall contain records of site meetings, site visits, physical and
financial progress of the contract, Contractors plant, equipment and labour
deployment, weather conditions and all other relevant details.

6.15 Checking of Line and LeveI

A major function of the site supervisory staff shall be to ensure that work are
built to correct line and level. Although the onus for correct setting out is

14
characteristics of the road, which will be agreed in writing with the Employer.
The Consultant shall be responsible for the design details within this
framework. The methodologies employed for the design of pavement,
earthworks drainage and structures shall conform to current internationally
accepted standards ensuring maximum use of locally available materials
where appropriate.

v) EnvironmentaI Impact Assessment

The Consultant will prepare an EÌA and social study and propose mitigating
action to be carried out during construction and operation of the road in order
to minimize any negative impact, which the upgrading of the road may have
on the people and the natural/physical environment.

The Consultant will conduct a study, which shall detail the positive and
negative effects on the environment from the development of the study road,
and shall recommend appropriate solutions to minimize any undesirable
effect resulting from construction of the proposed road.

The study shall asses the social benefits possible from road improvement
and shall offer mitigating measures and management strategies and actions
to reduce or avoid threats to local systems conservations, wild life areas and
water catchments. The impacts from quarries, borrow pits and material
storage areas serving the project shall be assessed as described in the TOR
for the Request for Proposal.

The study Consultant shall propose mitigation measures for all adverse
impacts; alternative approaches, recommendations and plan control including
cost estimates for their implementation. Most importantly the Consultant
shall itemize and include all the mitigation measures in the bill of quantities
for costing in the construction tenders.

vi) Traffic Data

The Consultant shall assess and update the existing traffic data and carry out
any further studies, which can be used to determine the requirements of the
pavement design. The additional traffic count to be made should not be less
than five days for twelve hours and two days for twenty-four hours.

4.3 DetaiIed Engineering Investigations

i) TopographicaI Surveying

Detailed ground survey along the length of the proposed project road shall be
performed using the most up to date surveying equipment such as total
station or GPS to examine the road alignment and cross section and any
bridge sites and culvert sites that are considered necessary to complete the
detailed design and the estimation of quantities.

ii) Geometric Investigation

1) The vertical and horizontal geometric characteristic of the road centre-
line shall be computed and defined.
2) Detailed site investigation and surveys shall be carried out for areas
susceptible to flooding, landslide and at all proposed new or replacement
drainage structure locations including a sufficient length up stream and
down stream to the structures. All topographical surveys under taken by
the Consultant shall be to acceptable international standards for such
works and after approval by MOWT shall be recorded in standard or

15
electronic survey field books which shall become the property of the
Employer up on the completion of the study.
3) A computation and definition of the geometric characteristics of the
centre-line survey data shall also be given at regular intervals along the
curve and the longer tangent alignments. Vertical alignments will be
defined and computed.

iii) Pavement Investigations

Ìnvestigations on the existing pavement shall be performed at the intervals of
500 m. These pavement investigations should be supplemented by an
appropriate pavement and sub-grade soils sampling and testing program.

The purpose of the pavement investigation includes but not limited to

1) Ìdentifying of problem areas i.e. areas where the sub-grade is weak or
areas where the quality and the bearing capacity of the pavement
materials is insufficient;
2) Determine the thickness and quality of the existing pavement layers to
incorporate in the new design;
3) Designing on appropriate pavement structures for the new works.

iv) SoiI and MateriaI Investigations

Material investigations on the existing as well as any new alignment shall be
performed to approved standards. The samples taken from centre-lines and
existing embankment materials shall be tested.

The general study shall be carried out on the existing pavement condition
sub-grade soils and construction materials along the route. The sampling
and testing program shall be proposed by the Consultant and approved by
Employer.

For new alignment sub-grade soils shall be sampled and tested. For existing
alignment pavement depths will be established and sub-grade soils shall be
tested for classification, in-situ density and moisture content at an interval of
not greater than 1km. Proposed additional tests appropriate for the
pavement analysis will also be made. The tests are to include
soil/moisture/density relationships and CBR values of sub-grade soils.

Ìnvestigations for sources of construction materials for embankment,
pavement and drainage structures shall be carried out and suitable materials
sources will be surveyed and shown in the plans. Quantities of over burden
and material will be proved and sampled by pitting or drilling where
necessary.

A soil and material report should be prepared showing exact locations of all
construction materials available with an indication of their approximate
quantities.

v) Drainage and Bridge Site Investigations

Detailed hydrological analysis along the road alignment shall be performed
and plans for drainage structures and a detailed drainage schedule shall be
provided.

32
10) The agreement of on-account rate for work for which no rates exist in
the Bill of Quantities until such time as they have been fixed.
11) Maintenance of records of measurement together with level and
dimensions of work as executed and details of any deviations from the
working drawings, if any.
12) Maintenance of temporary records in relation to any claims put forward
by the Contractor and agreement at site on factual data related to
claims.
13) Channelling of any claims received from the Contractor to the Project
Manager. This would include proposed new schedule rates with his
recommendations to the Project Manager.
14) Order stoppage of works if it is considered unsafe or is not in
compliance with the specifications.

6.9 The Site Agent

The Site Agent is the Contractor's top most man on site. He/she is the
person who undertakes the construction of works in the project as the
Contractors Site Representative.

The Agent is responsible for directing and controlling the whole of the
construction works on site.

The Agent has on the spot responsibility for programming of works and
keeping progress in line.

Ìnstructions from the Resident Engineer are written to the Site Agent who
then relays them to his foreman.

The Site Agent is the man the Resident Engineer deals with on all matters to
the Construction Works.

6.10 Commencement Order
The order of commencement of works is issued on MOWT Form 757 by the
Employer to the Contractor and copied to the Project Manager or Consultant
shortly after the contract agreement has been signed between the
Government and the Contractor. The commencement order will state the
name and address of the Project Manager's representative.

6.11 Work Program

The Work Programme is the Contractors own proposals of carrying out works
in compliance with the completion period stated in the Appendix to Tender.

This proposal is usually presented in form of bar charts giving the duration of
working on particular operations.

Clause 27.1 of General Conditions of Contract requires the Contractor to
submit to the Project Manager for his/her approval a detailed programme of
work within a prescribed period.

The Programme submitted should show the order of procedure in which
he/she proposes to carry out the works. This detailed programme shall be

31
The Project Manager may be firm of Consulting Engineers or an individual
thereof, or he/she may be an individual within the organisation of the
Employer. Ìf the Project Manager is an individual from within the organisation
of the Employer, the Employer will give him full scope to carry out his duties
without allowing policy to override the Project Manager's independence in
matters calling for fair decisions.

Usually, the Employer engages the services of an independent Project
Manager ÷ a Consulting Engineer. He/she will enter into a contract for
supervision of construction of the project.

Ìn return for this service the Employer will pay the Consulting Engineer a
professional fee.

At this stage the Consulting Engineer becomes designated as the Project
Manager for the project. The Employer agrees to accept the Project
Manager's advice on matters of engineering.

6.8 The Project Manager's Representative

The Project Manager's Representative is the chief responsible person on site
designated as the Resident Engineer.

The function of the Project Manager's representative is to watch and
supervise the construction to completion and maintenance of the works.

The Project Manager's representative shall have no authority to relieve the
Contractor of any duties or obligations under the contract (except to order
minor variations involving delay or extra payment by the Employer) to make
any variation of or in the works.

The duties that the Project Manager's Representative may carry out may be
expressed in the following terms: -

1) The organisation of the supervision of the works according to the
agreed program.
2) Agreement of detailed programmes to conform with the overall
construction programme.
3) Checking of progress of works at regular intervals in relation to agreed
progress.
4) Supervision of the permanent works and ensuring that the materials
and workmanship comply with the specifications.
5) Checking of the setting out of works to ensure that they are in
accordance with drawings and the intent of the contract.
6) The examination of method statements for the execution of permanent
works and for temporary works proposed by the Contractor with special
reference to the safety of such proposals.
7) Ìssue of site instruction to the Contractor in the way of clarification of
construction drawings, modifications required thereto to the extent of
such powers that are delegated to him by the Project Manager.
8) The admeasurements and agreement with the Contractor's site staff of
quantities of works executed.
9) The issue of instructions for work to be carried out on Day works, the
receipt and checking of statements relating thereto and in prime cost
items, before they are incorporated by the Contractor into the Ìnterim
and Final Payment statements.

16
This shall include an assessment of the adequacy of the size and spacing of
the existing structures and recommendations for ensuring the integrity of
these structures with the analyzed requirement.

Hydrological studies shall be carried out for all drainage structures with
careful analysis of stereoscopic aerial photography, available maps and field
investigations.

vi) Traffic and AxIe Load Studies

Ìn addition to the evaluation of existing traffic records and forecasting the
future traffic to consider in the pavement design requirements the likely level
of traffic on the project road will be established by conducting traffic surveys
at least for a minimum of five days for twelve hours and not less than two
days for twenty-four hours.

A traffic engineering analysis shall be prepared to specify the design of
necessary traffic control features. Based on traffic assignment the Consultant
shall determine the location of signs, pavement markings and other control
features. The Consultant shall design the road furniture such as road signs
and markings, guard rails, rest areas, and bus stops in accordance with
Uganda Standards and guidelines (when available) and/or other standards
approved by the Employer.

4.4. Engineering Design Requirements

The Engineering design shall be done using Computer Aided design and
drafting soft ware or appropriate design software.

i) Geometric Design

The horizontal alignment of the road line shall be determined by study of the
optimum alignment between control points specified as a result of the
engineering investigations.

Ìn selection of vertical and horizontal alignment improvement and new
realignment safety consideration will be applied to the alignment design.

The vertical alignment shall take into account the design standard adopted.
While optimizing the earthwork involved, there shall be coordination between
horizontal and vertical alignments to the extent possible.

The following points shall be considered in the design of town sections:

 The development master plan of the town.
 The volume of non-motorized traffic and the requirement of parking
lanes, bus bays and footways;
 Assessment of existing junctions and incorporating changes including
intersections and interchanges;
 The provision of adequate road furniture like safe drainage signing and
pedestrian crossings;
 The geometric design shall incorporate the environmental mitigation
proposed by the Consultant.

ii) Pavement Design

Ìn consideration of the materials available for construction, existing pavement
structure, testing results and the anticipated traffic composition and loading
the Consultant shall propose alternatives of adequate pavement structures.

17
A comparison between the different design standards will be presented and
recommendation will be made on the design standard to be adopted for the
work.

The pavement shall be designed on the basis of the anticipated traffic in
consideration of the legal load limits of Uganda. The design period shall be
15 years.

The carriageway width shall be 7m including shoulders in town sections. For
difficult terrain the Consultant shall propose width of the carriageway and
shoulder to the Employer for approval.

iii) Drainage Structures and Bridges

All existing data, field investigations and analysis shall be incorporated in the
bridge design or rehabilitation proposals. The optimum solution concerning
replacement, repair, extension of existing structures shall be established
having regard to economy, applicable construction method and level of future
maintenance. Proposals to bridges design shall be recommended for
approval by the Employer and the design work shall be to an approved bridge
design standard.

Structures of less than 6 meters shall be specified as standard structures
which shall be fully designed with supporting hydraulic and structural
calculations. The additional new pipes and culverts and the extension of
existing pipes and culverts shall be designed using these standards. Where
drainage away from the road is problematic the Consultant shall provide
details of invert levels and dimensions of side drains.

iv) Engineering PIans

The following plans for the project shall be prepared using a format agreed
upon with the Employer. The originals will become the property of the
Employer.

i) Plans and profiles: Scale 1:2000 and 1:200 respectively, showing
natural ground levels horizontal and vertical curve details; drainage;
cross sections; side drains and etc.
ii) Typical and other necessary cross sections Scale 1:50, showing all
details of road cross sections in cuts and fills, side drains: pavement
thickness: camber and super elevation: pavement widening. Etc
iii) Cross sections shall be prepared at scales of 1:200 showing details of
all types of drainage structures with inlet and outlet details and any
necessary protection works.
iv) Soils plans

Soil plans showing the characteristics of soils for various sections of the road
and plans showing locations of borrow and quarry sites.

v) Construction Quantities

The calculated quantities for the items of construction shall be based on the
final design drawings. The earthwork quantities shall be derived from
calculation based on the field cross sections along the road centre-lines and
in accordance with accepted methods of measurement that shall be agreed
with the Employer. A detailed bill of quantities shall be prepared generally
under the following sections: preliminary and general: clearing and earth
works: drainage (culvert and protection works): sub base and base:
surfacing: major structures including bridges: road furniture: ancillary works:
schedule of day works.

30
Ìt is usual for the Employer to make an interest free loan to the Contractor for
the cost of mobilisation in respect of the works. The amount is stated in the
Appendix to Tender, usually 10% of the Tender sum less provisional sums.

The Contractor shall provide a guarantee from a bank acceptable to the
Employer in an amount equal to the Advance Payment; the Contractor may
provide a separate guarantee for each currency.

The Advance Payment shall be repaid by percentage deductions from the
Ìnterim Payments certified by the Project Manager under the contract.

6.5 Insurance of Works

The GCC require the Contractor to take full responsibility for the care of the
works from their commencement to 14 days after substantial completion.

Further, the Contractor is required to exercise this responsibility and care to
any outstanding work undertaken by him to finish during the period of
maintenance until such outstanding works are complete.

According to the GCC the Contractor is required to repair and make good at
his own cost any damage, loss or injury from any cause whatsoever (unless
they are excepted risks) that shall happen to the works while the Contractor
is responsible for the care of the works.

Under the General Conditions of Contract, the Contractor is required to
insure the permanent and temporary works, materials on site and
constructional plant to their full value against loss or damage for which the
Contractor is responsible under the terms of the contract.

This insurance shall be effected in the joint names of both the Employer and
the Contractor.

The type of policy and amount is usually stated in Appendix to Tender.

6.6 Parties to the Project

There are three main parties to a Project namely, the Employer, the
Consultant and the Contractor.

1. The Employer is the owner of the project. He/she pays for the
development of the project and takes it over at completion.
2. Consultant is a specialist adviser to the Employer. The Consultant
undertakes to supervise the construction works of the project on behalf
of the Employer.
3. The Contractor is the person or entity who undertakes the construction
of works in the project. He/she tenders to construct the works for a
given sum. Ìf his tender is accepted he/she enters into agreement with
the Employer to construct the works. He/she uses his skills and
competence in building the works in every respect that the engineer
requires. He/she is directed by drawings, specifications and
instructions issued to him by the Project Manager in accordance with
the rules laid down in the contract.
6.7 The Project Manager


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1) The Contract Drawings: - These Pictorially shows the works to be built,
their dimensions, levels, etc.
2) The Specifications: - These describe in words the works to be built, the
quality of materials and workmanship to be used, and methods of testing,
directions for measurement and pricing.
3) The BiII of Quantities: - This sets out the expected measures of each
operations of construction as calculated from the drawings, classified
according to trade or location within the proposed works.
4) The GeneraI Conditions of Contractor: - This define the liabilities,
responsibilities and powers of the Employer, the Contractor and the
Project Manager. Ìt also covers such matters as methods, liability of
parties to the contract, etc.
5) EnvironmentaI Management PIan:- This describes the measures that
the Contractor has to take to safeguard the environment.
6) The Tender: - This is the signed financial offer of the Contractor to
construct the works in accordance with 1-4 above.
7) Memorandum of Understanding: - This spells out all that has been
agreed between parties during contract negotiations seeking clarification
on the Tender. These agreements will apply during the execution of the
works and fall within the scope of the contract.
8) A Ietter of Acceptance: - This is a letter issued by the employer to the
Contractor accepting his tender and stating the amount to be paid to
completion and maintenance of the works. Ìt also states who the Project
Manager is and reminds the Contractor to furnish a performance
Security Bond within 30 days from the date of receipt of the Acceptance
letter.
9) The Agreement: - This is the document signed by both parties,
confirming their respective intention to have a contract between them as
defined by all the above foregoing documents.

6.3 Performance Bond

This is a guarantee which a Contractor obtains from an insurance company
or a bank against sufficient sureties binding the insurance company or bank
jointly and severally with the Contractor for the sum required for the purpose
of the contract by the employer.

The guarantee is usually 30 percent of the contract sum and is provided
within 28 days from the date of receipt of letter of Acceptance by the
Contractor.

Ìt shall be in writing and must be under seal.

Ìt provides that if the Contractor completes and maintains the works the
covenant becomes void.

The Employer may call in the bond if the Contractor defaults after notifying
the Contractor on the nature of default.

6.4 Advance Payment Guarantee


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vi) Cost Estimate

Ìn order to make a fair and reasonable estimate of the construction costs the
Consultant will prepare a unit price analysis of each item using basic cost
elements (labour, material, equipment overhead and profit) including
Environmental mitigation measures cost but excluding and showing
separately the cost for taxation. The estimate for the right of way acquisition
shall also be made with due consultation with the owner. Ìf necessary, the
Consultant will also break down the costs into foreign and local currency
components.

4.5 PrequaIification, Tender and Contract Documents

The Consultant shall prepare a complete set of prequalification, tender and
contract documents. The conditions of contract to be used will be agreed with
the Employer at the contract preparation stage.

The Prequalification documents shall comprise;-
Section 1. Ìnstructions to Applicants
Section 2. Application Data Sheets
Section 3. Qualification Criteria
Section 4. Application Forms
Section 5. Eligible Countries
Section 6. Scope of Works

The Tender document shall comprise; -
Volume Ì: Ìnvitation to Tender, Condition of Tender and Ìnstruction to
Bidders. Appendix to Tender, Tender and Agreement Forms,
Schedules, Conditions of Contract, Technical Specifications,
Bill of Quantities, Schedule of Basic Rates.
Volume ÌÌ: Complete set of Drawings
Volume ÌÌÌ: Soils and Material Report
Volume ÌV: Hydrological/Hydraulic and Structural Report

a) Pre-qualification questionnaire and notice according to a format agreed
by the MOWT.
b) Ìnstructions to Tenderers, giving general information, list of equipment
and senior staff, proposed sub-Contractors, work schedule etc.
c) Form of Agreements, Form of Performance Bond, Form of Surety
Bond, Form of Declaration of Transferable foreign exchange
requirements.
d) General Conditions of contract and conditions of particular application.


19
4.6. Reports

The Consultant shall prepare and submit the following reports. All reports
shall be in English and prepared on metric size papers:

4.6.1 Inception Report

The Ìnception Report, which briefly describes the planning which the
Consultant has established for the project, staffing, detailed program and
methodology of executing the work, preliminary recommendations on design
standards and such other remarks as are deemed appropriate.

4.6.2 Progress Reports

These shall be submitted at monthly intervals from the date of contract
signature and shall give a brief statement of work performed during the
preceding month and a schedule of work for the next month. The progress
report shall also contain comments and recommendations describing the
effects of the accomplishment on future activities and any proposed change
to the work plan for future months.

4.6.3 Design Standard Report

This report summarizes the design standards to be used for the project. A
review of all appropriate standards and recommendation for the use of one
document for each of the main design elements (Geometric, pavement,
structure and hydrology) shall be included. Parameters from different
standards should not be mixed to project standard. A brief description of
recommended standards and reasons for recommendation and list of
"departures" from standard recommended and reason for departure shall be
included.

4.6.4 Engineering Report

The engineering report summarizes all the assumptions and criteria used in
the analysis and design of the work together with details of all standards used
and the rehabilitation/upgrading/construction strategies and implementation
program.

4.6.5 SoiIs and MateriaIs Report

The soil and materials report shall summarize all the geotechnical findings
and adoption of those findings to the design. This report shall be a factual
report. Specific design information shall be discussed in the Engineering
Report.

This report should cover the quantities of pavement materials needed for the
construction and indicating locations of possible material sources with
estimated available quantities, thickness of overburden, thickness of the
investigated material and a proposed material utilization diagram. The report
shall provide full details, descriptions and locations of all geotechnical
problems with regard to weak sub-grade soils, slope stability problems and
landslide areas. Test results and information concerning borrow areas,
quarries etc. shall be included in this report as an Appendix. All design
calculations for pavement should also be included as an appendix.


28
6.0 CONSTRUCTION SUPERVISION AND MANAGEMENT

6.1 GeneraI

Having conceived the aim of an intended works and designed it to practical
details, the third stage is the construction works.

The construction works may last for a few months to several years. Ìt may
use the labour of thousands of men, the accumulated knowledge of
generations of experts.

Till such time when the works are completed there must be a continuous
resolve to pursue their construction to finality.

Resources must be provided in the form of money, manpower, machines and
materials to support this resolve throughout the construction period.

Construction works must be commissioned or ordered in advance.

There must be an Employer who resolves to undertake the works, agrees to
pay for them and to own them when completed.

Payments must be progressive throughout the stages of development.

Until the final stage is reached the Employer acts in faith that what his expert
advisers say can be done will be done; that what they say will be the cost, will
in fact be the cost.

The obIigations of the EmpIoyer are: -
1. To define the functions the works must perform.
2. To evaluate the worth of the intended project and to be assured this
satisfies his predicted requirements.
3. To obtain the necessary powers for the construction of the works.
4. To find the money to pay for the works.

The Employer can be a person or a group of persons acting as corporate
body such as a local government authority or a government department or a
company.

To exercise his powers effectively he/she will, on the engineering side,
require two key specialist advisors and executives ÷ the Project Manager
who undertakes the supervision and the Contractor who undertakes the
construction.

6.2 Contract Documents

The contract for the construction of the works binds the Contractor to execute
the works and the employer to pay for the works.

Contract documents describe comprehensively what the works are, and how
payment is to be made. The works are often complex involving the
Contractor in numerous different operations and requiring him to buy various
manufactured items and materials and to employ a variety of men and
machinery.
Therefore the contract itself shall comprise a number of documents as listed
below: -

27
Contract Negotiations are carried out with the next firm. The process can be
repeated until the contract is successfully negotiated.

5.4.7 Award of Contract

After the successful conclusion of Contract negotiations, a draft Contract
Agreement plus the minutes of the negotiations are sent to the Funding
Agency for review and approval. A copy of the same draft Contract
Agreement is also submitted to the Solicitor General (SG) for their legal
opinion and clearance for Contract Signature. On receipt of the "No
Objection¨ from the Funding Agency the Contract is signed and awarded to
the firm to implement the project.

A typical time scale for Procurement of Consultancy Services and Contractor
for an average 12 months contract is shown in appendix 1 in Clauses 1 -9.


20
4.6.6 HydroIogicaI/HydrauIic and StructuraI Report

The hydrological/hydraulic and structural report summarizes all hydrological
and hydraulic analysis/calculation together with assumptions and criteria
used for the design of drainage structures. All details of standards used shall
also be included. Detailed calculations with regard to waterway openings for
major water courses during peak flood condition with the needed protection
of the road slopes and structures, list of structures showing existing
discharge capacity, estimated design flood and proposed new culvert or
bridges, and description of the structural condition investigations shall be
included in this report.

The report shall further elaborate on the availability of water for the
construction and measures required/proposed to obtain such water. The
water has also to be analyzed with regard to quality and quantity. All design
calculations for structures should also be included as an appendix.

4.6.7 EnvironmentaI Impact Assessment Report

The report shall include but not limited to:

 Description of environment in the area affected by the project;
 Anticipated environmental impacts and mitigation measures;
 Consideration of alternate projects or approaches;
 Ìnstitutional requirements and environmental monitoring program and;
 Public involvement and environmental impact monitoring.

4.6.8 Land Acquisition PIans and Report

For the purpose of land acquisition, land acquisition plans are to be prepared
based on the available cadastral maps and the available data collected from
location surveying. Ìn addition, the intersection between the new road
reserve and the plot boundaries shall be set out and referenced on the
ground with an accuracy of 1m.

The plans are to be supplemented by a listing of the affected plot numbers,
the area required of such plot and list of all properties in the right of way and
their cost estimate.

4.6.9 Topographic Survey Report

This report shall contain a detailed description of the method of survey, list of
established control points with their coordinates, method of approach to the
established control points, location of traverse control points, list of inter-
visible control points, list of scale factor for each established control point,
check control points, etc..

The report should be detailed so as to provide the supervision Consultant
and the Contractor with adequate survey information and for easy reference
during construction stage.

4.6.10 FinaI ConsuItancy CompIetion Report

This report has to be prepared and submitted after the completion of
Consultancy services. Ìt shall be a comprehensive report on the Consultancy
services throughout the project. Ìt shall describe the aims of the project, the
achievements, any problems encountered and any recommendation to be
made by the Consultant, etc. Ìt shall also include the Consultant's final
statement.

21
5.0 PROCUREMENT

5.1. GeneraI

Project Ìmplementation now reaches the stage of procurement of goods,
works and/or services. Procurement may take various forms depending on
the funding agencies as shall be discussed elsewhere in this Manual.

The basic principles in procurement of goods, works and/or services is that
proceeds (funds) secured for implementation of a given project be used with
due attention to considerations of economy and efficiency. This principle
therefore calls for competitive bidding for procurement of goods, works and/or
services needed for the implementation of the projects.

The following forms of procurement methods are commonly used:

i) Ìnternational Competitive Bidding (ÌCB)
ii) Limited Ìnternational Competitive Bidding (LÌCB)
iii) Local Competitive Bidding (LCB)
iv) Ìnternational Shopping
v) Local Shopping
vi) Force Account (FA)
vii) Direct Purchase (DP)

5.2 Project Funding

Project funding forms a very essential and vital component during project
implementation and can take the following forms:

1) Sole funding ÷ only one party, i.e. GOU, Bank (WB, ABD, ÌDA) etc.
provides all required funds.
2) Co-funding ÷ Two or more parties other than the "burrower¨ (e.g. GOU)
are providing funds during implementation of a project either on parallel
or joint basis.
3) Parallel funding ÷ Two or more parties are providing funds for separate
packages of the same project during implementation of a project.
4) Joint funding ÷ Two or more parties are providing funds for the same
project during implementation of a project.

5.3. Procurement of ConsuItancy Services

The procurement of Consultancy Services is described in detail MOWT
publication "Request for Proposal for Consultancy Services¨. The process, in
general is as described here below:

5.3.1 PrequaIification (ShortIist)

Usually a notice is run in a public and widely circulated newspaper including
the UN Newsletter "Development Business¨ requesting firms who are eligible
to participate on a given project to apply to be pre-qualified to bid.
Ìn preparation of the Shortlist, the funding agency and the borrower must
make use of several factors in compiling the Shortlist of Consultants i.e.


26
This method is not very commonly used as it is laborious and time consuming
due to large number of firms who may wish to bid. The EEC employs this
method.

5.4.4 Invitation To Tender (ITT)

On completion of the above Procurement process i.e. Prequalification and
Open Tender, the firms selected are issued with Ìnvitation to Tender (ÌTT) as
prepared by the borrower and approved by the funding agency.

The ITT shaII usuaIIy incIude: -

(i) a brief description of the services to be supplied;
(ii) Conditions for obtaining the bidding documents and the place for
having access to them;
(iii) date for the invitation to bid as well as the date, hour and place for the
latest delivery of bids;
(iv) date, hour and place for the public opening of bids;
(v) name, address, telex, cable, cable and telephone numbers of the
executing agency i.e MOWT or any other agency capable of giving
sufficient information to bidders;
(vi) any indication of any restriction to procurement i.e. eligibility; and
(vii) sources of funding with reference to the funding agency and GOU.

5.4.5 EvaIuation of Tenders

Another stage of Project Ìmplementation is the Evaluation of Tenders.

Depending on the period indicated in the ÌTT as noted under 5.4.4 (iii) bids
received in time shall be publicly opened at the Contact Committee and the
tenders shall then be evaluated by the MOWT.

The evaluation is usually carried out by a team/committee with well laid out
guidelines for scoring based on the funding agencies rules of procurement.
Ìn more complicated cases (large tenders) Consultants may be engaged to
carry out the evaluation on behalf of the Ministry.

The Evaluation Report which shall be based on the funding agency's rules of
evaluation shall then be sent to both the funding agency and contract
committee for review and approval. Ìf any of the two bodies are not satisfied
with the Report, they may request for a further review. One must not hear
that at this stage of procurement, a lot of lobbying takes place although the
process of evaluation is meant to be confidential.

After clearance of the Evaluation Report, the firm so selected shall be invited
to come for negotiations with the MOWT.

5.4.6 Contract Negotiations

The MOWT would then invite the selected firm to come to negotiate the
Contract during which time all the shortfalls raised in the Evaluation Report
are discussed and negotiated with the firm until satisfactorily concluded. Ìn
the rare event that negotiations are not successful, the MOWT would then
inform the Funding Agency recommending that negotiations be initiated with
the second highest firm. On getting clearance from the Funding Agency,

25
iv. Ìnternational Shopping (ÌS)

This method is applied by public competition through request for quotations
at Ìnternational level in a situation where the value of the works are too small
or works are so diverse to warrant a single Contract or works cannot be
carried out by LCB. This procurement procedure is more relevant to the
supply of goods and is rarely used in Works Contracts.

v. Local Shopping (LS)

LS is similar to the circumstances in ÌS above except that the works can be
contracted in the borrower's country and there is sufficient number of
Contractors to ensure completion in bids. Again this method of procurement
is common during the supply of goods.

vi. Force Account (FA)

This method is usually applied when both the funding agency and the
borrower are satisfied that FA may be the most efficient and economic way of
executing certain works and that the borrower has adequate staff, equipment
and the works can be expeditiously executed at a reasonable cost.

vii. Direct Purchase (DP)

DP is a method of procurement where the funding agency has waived
altogether any other form of public competition as described above and has
authorised the borrower to procure through direct negotiation with a specified
Contractor. These is applicable where the works are already satisfactory
under construction and are to be extended so long as the on-going Contract
had been awarded based on ÌCB or where specific technologies and
processes are obtainable only from one manufacturer holding exclusive
patents and manufacturing rights.

Based on any of the above modes of procurement the funding agency and
the borrower can then agree on how to proceed to the next stage of procuring
of Contractors. Two common methods are used at this stage of procurement
i.e. Prequalification and Open Tenders.

5.4.2 PrequaIification

This method of procurement of works involves mostly large or complex
projects and it ensures that only capable firms participate.

Usually a notice is run in a public and widely circulated newspaper requesting
firms who are eligible to participate on a given project to apply to be pre-
qualified to bid. Most funding agencies prefer this method of procurement.

The borrower i.e. GOU would then prepare an evaluation report on the
applications received making recommendations on the number of firms
qualified to bid.

The funding agency would then approve the list of firms who then shall be
considered as the pre-qualified firms.

5.4.3 Open Tenders

The method of open tenders for procurement of Contractors calls all eligible
interested firms to submit their bids for consideration to provide the works.

22
(a) Borrower's own experience of individual Consultants and Consulting
Firms;
(b) List of Consultants who have expressed interest in providing the
proposed services; and
(c) Funding agency's own record of Consultants.

The borrower i.e. GOU would then prepare an evaluation report on the
applications received making recommendations on the number of firms found
acceptable to bid.

The funding agency would then approve the list of firms normally ranging
from 5 to 7 who then shall be considered as the pre-qualified firms. This
method is sometimes called Short listing.

5.3.2 PrequaIification (Long Iist)

This method of procurement of Consultancy Service is usually not
encouraged as it has serious disadvantages: better Consultants may not be
inclined to submit proposals and other Consultants may be discouraged from
putting enough effort into their proposals.

5.3.3 Restricted Tenders

This method of procurement of services is also similar to the ones above
except the borrower in agreement with the funding agency select (shortlist) a
number of firms ranging between 3 and 7 to be invited to bid without
requesting for application to pre-qualify.

The selected criteria are usually based on past experience and area of
speciality in relation to the project for implementation.

5.3.4 Invitation To Tender (ITT)

On completion of the above Procurement process which amounts to
Shortlisting the firms selected are issued with Ìnvitation to Tender (ÌTT) as
prepared by the borrower and approved by the funding agency.

The ITT shaII usuaIIy incIude:-

i) a brief description of the services to be supplied;
ii) conditions for obtaining the bidding documents and the place for having
access to them;
iii) date for the invitation to bid as well as the date, hour and place for the
latest delivery of bids;
iv) date, hour and place for the public opening of bids;
v) name, address, telex, cable and telephone numbers of the executing
agency i.e. MOWT or any other agency capable of giving sufficient
information to bidders;
vi) any indication of any restriction to procurement i.e. eligibility; and
vii) sources of funding with reference to the funding agency and GOU.
5.3.5 EvaIuation of Tenders

Another stage of Project Ìmplementation is the Evaluation of Tenders.
Depending on the period indicated in the ÌTT as noted under 5.3.4 (iii) bids
received in time shall be publicly opened at the Contract Committee and the
technical proposals shall then be evaluated by the MOWT.

23

The evaluation is usually carried out by a team/committee with well laid out
guidelines for scoring based on the funding agencies rules of procurement.

The Evaluation Report on the technical proposals is the submitted to Contract
Committee with a request to open the financial envelopes for financial
evaluation of only those firms who were found technically competent and are
recommended as such in the Technical Evaluation Report.

Again based on the funding agency, the scores of the financial evaluation
shall then be used to select the best firm as follows:-

(i) For ADB/ADF funded projects, the firm with the lowest evaluated
financial proposal i.e. with the highest financial score irrespective of the
technical evaluation score, shall be recommended for contract award.
(ii) For ÌDA, EEC funded projects the firm with the highest total aggregate
score of the combined Technical and Financial proposals shall be
recommended for Contract award.
(iii) Parallel funding ÷ Two or more parties are providing funds for separate
packages of the same project during implementation of a project.
(iv) Joint Funding ÷ Two or more parties are providing funds for the same
project during implementation of a project.
(v) Other funding agencies adopt other Methods of selection i.e. selection
can be based on only technical evaluation with the highest ranked firm
being recommended for Contract award. Ìn such a case the firm's
financial proposal is presented and negotiated during the stage of
contract negotiated during the stage of contract negotiations.

A complete Evaluation Report is then prepared based on both the technical
and financial analysis with recommendations for award of contract.

The now completed Evaluation Report on the bids received is then sent to
both the funding agency and Contract Committee for clearance should any of
these bodies find the Report not conforming to the general rules of
Procurement for one reason or the other, they may object to the
recommendation of the Report and ask the MOWT to review the whole
process. Such situations although undesirable keep cropping up now and
again and a lot of time delay is usually realised and Project Ìmplementation
suffers considerable time delay. The important thing to note there is that in
carrying out the evaluation the team involved MUST follow the guidelines and
procedure to the letter and MUST be impartial to a large degree as every part
of the Report is thoroughly reviewed by the Funding Agency as a neutrals
body entrusted with the funds from all member states whose firms shall
benefit from bids where possible.

After clearance of the Evaluation Report, the firm so selected shall be invited
to come for negotiations with the MOWT.

24
5.3.6 Contract Negotiations

This stage of Procurement of Consultancy Services involves the review of
both the technical and financial proposal of the selected firm, outlining the
shortfalls in the proposals. During the process of Contract negotiation all the
shortfalls raised in the Evaluation Report are discussed and negotiated with
the firm until satisfactorily concluded. Ìn the rare event that negotiations are
not successful, the MOWT would then inform the lending agency
recommending that negotiations be initiated with the second highest firm. On
getting the clearance from the funding agency, Contract negotiations are
carried out with the next firm. The process can be repeated until the contract
is successfully negotiated. Contract negotiations usually last between 2 ÷ 3
days.

5.3.7 Award of Contract

After the successful conclusion of Contract negotiations, a draft Contract
Agreement plus the minutes of the negotiations are sent to the Funding
Agency for review and approval. A copy of the same draft Contract
Agreement is also submitted to the Solicitor General (SG) for their legal
opinion and clearance for Contract Signature. On receipt of the "No
Objection¨ from the Funding Agency the Contract is signed and awarded to
the firm to implement the project. This process usually takes approximately
one (1) month, although cases where the funding agency has further
clarification can take up to three (3) months.

Most Consultancy Services i.e. Supervision, Technical Assistance, Studies
etc. usually take 30 days from date of signature to the Commencement of the
service.

5.4 Procurement of Contractors

5.4.1 GeneraI

Procurement of Contractors is described in detail in the MOWT publication
"Procurement of Bridge and Road Works¨ and can take any of the modes
outlined under section 6.1 below. The general principle for each of the
various models is described here for ease of reference: -

i. Ìnternational Competitive Bidding (ÌCB)

ÌCB is used where international financing is involved and is carried out by
open advertisement addressed to potential Contractors with a view to inviting
them to bid.

ii. Limited Ìnternational Competitive Bidding (LÌCB)

LÌCB is used where the number of potential Contractors for a particular
project is proved to be limited. The same procedure where notifications are
made public but the number of Contractors are limited.

iii. Local Competitive Bidding (LCB)

This method requires notification only in the local press and is usually applied
when the size, location and complexity of the works are such that they are
unlikely to attract bids from outside the borrower's country.

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