Selection of Consulting Services for: Third Party Independent Supervision and Audit Consultant (ISC)

1. The main objectives of ISC service

The main objectives of ISC service include:

Ensure that all project activities comply with the financing agreement that has been approved by independent monitoring and evaluation of project activities, including: detailed design, procurement, contract execution management, construction management, financial management, disbursement and safeguard policies.

Monitor and evaluate measures to mitigate the negative impacts through the implementation of Resettlement Action Plan, Ethnic Minority Development Plan, Gender Action Plan, and Environmental and Social Impact Assessment/ Environment and Social Management Plan and in compliance with the approved project frameworks. To support and guide the PPMUs in implementing the safeguard policies of the project.

Ngoi La Dam – Tuyen Quang Province

Offer recommendations/suggestions for the Client to make decisions in the management, implementation of project and compliance with the Financing agreement to ensure the effectiveness and availableness of the project. Draw lessons-learnt for the similar project implementation in the future.

2. Tasks of consulting service:

The  Consultancy Service missions will include (but is not limited to) the following tasks:

Task 1: Monitoring project implementation

The ISC will carry out site visits to all project provinces to monitor PIAs/PPMUs’ activities against project documents (FA, PAD,…),including: procurement of works, goods and consulting services, capacity strengthening training/workshop, payment and disbursement, ensuring compliance  with Financing Agreement, regulations of WB and Government, specifically:

The Consultant must provide and operate the monitoring system based on Geo-Tagging technology to ensure that the information including updated data on technical aspects as well as imasory data are updated into MIS system. The consultant shall provide a server and synchronous software installed in Hanoi to operate this system during the Contract implementation period. Each PPMUs will be provided with each separate account which to post its sub-projects’ information into the system by itself. The Consultant shall directly discuss and guide the PPMUs, the contractors and provincial consultants to collect and update data into the system as well as to operate the system in order to ensure smooth and continuous operation of the system. The Geo-Tagging system provided by the Consultant shall meet the Client’s requirements. By the end of contract, The Consultant shall transfer all data to the Client.

Monitor and evaluate the progress of preparation and approval of detail design.

Monitor and evaluate the status and progress of procurement activities against the approved Procurement Plan, and its compliance with WB’s guideline.

Monitor and evaluate the factual progress of construction and goods supply/equipment installation.

Monitor and evaluate the management, control of works/good quality (these are the tasks of PIAs/PPMUs); the order and procedure of field monitoring, the preparation of daily and periodical reports, monitoring of internal quality of contracts according to technical specification, including checking quality of completed works.

Monitor and evaluate the contract management, especially management in term of Time, Quality and Cost.

Monitor and evaluate the financial management and disbursement in accordance with the provisions set forth in Financing Agreement, including allocation of counterpart funds (provincial and state counterpart funds).

Assist in capacity building on environmental and social management for subproject implementing units.

Task 2: Internal audit

Conduct internal audit and strengthen internal audit capacity for the internal auditors who are assigned in charge of project internal audit within CPO, the tasks as below:

Establish a risk-based internal audit methodology by nature and scope of the project in compliance with international internal audit standards for issued by Institute of Internal Audit (IIA).

Prepare the detailed internal audit manual appropriate with the project. Contents of manual include but not limited to: Introduction on internal audit; instructions on internal audit procedures; guidance for internal audit activities management; guidance for internal audit quality management and improvement; forms and tables; a number of illustration for internal audit procedures in the project. The internal audit manual must be acceptable to WB and CPO.

Review effectiveness and efficiency of the accounting system through: all project’s transactions which are recorded, analyzed, stored, and the project’s source of funds… Review the compliance with policies which designed in line with WB’s and Government’s requirements through evaluating effectiveness of internal audit system in managing expenditures, other project’s financial operations, assets financed under the project and existing assets to ensure not to use for improper purposes or in uneconomic, ineffective manner to achieve the internal audit objectives, prevent fraud and corruption. Make recommendations to improve financial management system, internal audit system.

Review PMU’s financial management against terms, conditions of signed contract, identify any incompliance, abnormality (including accusation of fraud and corruption), delay or bottlenecks, and propose remedy measures for the first year of service contract.

Prepare internal audit reports on the basis of internal audit outputs for other WB-financed project, which was approved by Ministry of Finance.

The Consultant must coordinate with external financial audit consultants (if any) during planning process, and transfer internal audit skills to the designated internal auditors.

The Consultant must cooperate with WB’s missions during contract performance.

Provide capacity strengthening training courses on internal audit for staffs of CPMU, PIAs/PPMUs on: (i) amended duties of relevant agencies, (ii) risk-based audit by appropriate methods and (iii) overall audit plan and detailed audit program for the project. The training program consists of training courses and workshops. The Consultant shall provide on-the-job training as training courses through field visits. Besides, 02 workshops will be also organized (with estimated 02 people/unit), specifically:

+ The 1st time: After issuance of the internal audit manual, the Consultant shall organize workshops for CPMU/PPMUs/PIAs.

+ The 2nd time: The consultant shall organize the second workshops for CPMU/PPMUs/PIAs to be conducted internal audit.

The Consultant shall ensure that participants will have understanding and ability to perform the internal audit after being trained.

Prepare internal audit plan and submit to the Project Owner for approval before each mobilization time (the plan, program must consist of internal audit contents, time, coordination compositions …)

Task 3: Monitoring the compliance with the World Bank safeguard policy requirements

Monitor the environmental and social safeguard implementation is based on provisions set forth in Environmental and Social Management Framework, Resettlement Policy Framework, Ethnic Minority Policy Framework and approved Action Plans of each subproject.

3. Objective of the inception report:

The Inception Report is made to specify the methodology and implementation plan for each task of the ISC package. In the report, the consultants will also submit the tools for monitoring, sample reports and comments of the consultant unit by reviewing the original documents of the project, specifically:

Confirmation, and if necessary, detailization and adjustment of approach and methodology of the Consultant on the basis of database and information collected during initial phase.

The detail plan for Consultant’s activities, including plan for staff mobilization, and confirmation and/or adjustment of tasks of each specialist, attached the detailed tasks if necessary.

Problems identified during initial phase and recommendations to address such problems.

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