MPCIF Guideline 1

Market-oriented Public and Community Infrastructure Fund Guidelines ASDP
Government of Nepal
Ministry of Agriculture and Livestock Development
ASDP
Agriculture Sector Development Programme
Market Oriented Public and Community

Infrastructure Fund (MPCIF)Guideline
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JLIFAD
Investing in rural people
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Car.fw.lwa;NII..,.,.,
SWISS AGENCYFOR DEVElOPMENT
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Programme Coordination Office (PCO)

I~:.HELVETAS
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Birendranagar. Surkhet
info@asdp.gov.np
www.asdp.gov.np
083-523296
Loan No. 2000002118 Grant No.2000002117
JlIFAD
Investing in rural people
Government of Nepal
Ministry of Agriculture and Livestock Development
Agriculture Sector· Development Programme

(ASDP)
MARKET-ORIENTED PUBLIC AND COMMUNITY
INFRASTRUCTURE FUND (MPCIF) GUIDELINES
BS 2076.06.02
PSC Approval Date IFAD No Objection Date 17 February 2020
(19 September 2019)
First Amendment by BS 2077.03.26

PSC (10 July 2020)
Technical Assistance by
Programme Coordination Office (PCO)
Birendranagar,Surkhet
HELVETAS
Karnali Province, Nepal \ ; j
...... _ .....
Swiss intercooperation
September 2019
This is alive document, which can later be amended during the implementation if felt
necessary. Such amendments shall be in effect only after endorsement from Programme
Steering Committee (PSC) constituted under Ministry of Agriculture and Livestock
Development (MoALD) of Government of Nepal and the International Fund for
Agricultural Development (IFAD). However, the Programme Coordination Office can make
revisions on various template annexes presented in this document.
In this guideline, NPR is calculated using the exchange rate of Programme Design Report
=
(US$ .1 NPR 102)
Contents
Acronyms vi
1. Market-oriented Public and Community Infrastructure Fund (MPCIF) 1
1.1 Introduction 1
1.2 Scope of Guidelines 1
1.3 Purpose of the MPCIF Guidelines 2
1.4 Enforcement and Effectiveness of Guidelines 2
2. Terms used in MPCIF Guidelines 2
2.1 Producer Organizations (POs) 2
2.2 Service Providers (SP) 2
2.3 Users' Committee (UCs) 3
2.4 Market Management Committee (MMC) 3
2.5 Municipality Agriculture Development Committee (MADC) 3
2.6 PCU Team 3
2.7 Value Chain Team 4
2.8 Field Verification Team (FV Team) 4
2.9 Corridor level Investment Committee (CIC) 5
2.10 PCO level Investment Committee (PIC) 5
3. Areas of Investment 6
4. Grant Limit and Co-financing 6
5. ImplementationArrangement: 7
6. Beneficiaries and eligibility criteria 8
7. Grant Approval and Implementation Process under MPCIF 9
7.1 Call for Infrastructure Application (IA) 11
7.2 Desk Review and Initial Screening 11
7.3 Field Verification 11
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7.5 Preparation of Detail Survey, Design and Cost Estimate of Selected

Infrastructures 12
7.6 Facilitate for Proposal Developmentand Submission 12
7.7 Evaluation and Appraisal 13
7.8 Incorporation in Municipal Annual Plan and Allocation of Fund 14
7.9 Appraisal and Recommendation 14
7.10 Approval and Grant Agreement 14
8. Fund Disbursement. 15
9. Management & Administration 16
9.1 Modification of Grant Agreement 16
9.2 Technical support for construction 16
9.3 Project Implementationand Procurementof materials and contractor 17
9.4 Accounting 17
9.5 Operation and MaintenanceArrangement 17
9.6 Ownership 17
9.7 Transparency,Good Governance and Audit Provisions 17
9.8 Restriction to use of sub-project fund 18
10. Monitoring, Evaluation and Reporting 18
11. Sub-Project Completion and Reporting Arrangement 19
Annexes 20
List of Tables:
Table 1. List of Potential Community based and Public Infrastructures 6

Table 2. Co-financing Status of Public and Community Infrastructures 7
List of Figures:
Figure 1: Community based Infrastructure Grant Approval Procedure 10
Figure 2: Market Led Public Infrastructure Grant Approval Procedure 10
List of Annexes:
Annex 1. Template for Infrastructure Development Applications 21
Annex 2. Checklist for IA Screening and Short Listing 22
Annex 3. Template for Matters to be Considered during Field Visit.. 23
Annex 4. Template for Feasibility Report (Engineering Aspect) 24
Annex 5. Proposal Template for Market-oriented Public and Community Infrastructure
(English Version) 27
Annex 6. Proposal Template for Market-oriented Public and Community Infrastructure (Nepali
Version) 28
Annex 7. Sub Project Proposal Assessment and Approval Procedure 30
Annex 8. Template for Grant Agreement of Market-oriented Public and Community
Infrastructure Fund 32
Annex 9. ToR for Consultancy Services Firm for Feasibility Study, Survey, Design, and Cost
Estimation of Market linked Infrastructures and Roads (sample) 39
Annex 10. Template for Public Display Board.· 44
Acronyms
ADO Agriculture Development Office
ASDP Agriculture Sector Development Programme
CIC Corridor Level Investment Committee
DCCI District Chambers of Commerce and Industries
DSA Daily Subsistence Allowance
EIA Environmental Impact Assessment
Eol Expression of Interest
ESP External Service Provider
GESI Gender Equality and Social Inclusion
GoN Government of Nepal
HHs Households
HIS HELVETAS Swiss Intercooperation
HVC High Value Commodity
IA Infrastructure Application
lEE Initial Environmental Examination
IFAD International Fund for Agricultural Development
IP Infrastructure Development Proposal
LlDP Local Infrastructure Development Policy
M & E and KM Monitoring & Evaluation and Knowledge Management
MADC Municipality Agriculture Development Committee
MEC Municipality Executive Committee
MMC Market Management Committee
MoALD Ministry of Agriculture and Livestock Development
MPCIF Market-oriented Public and Community Infrastructure
Fund
MSP Multi-Stakeholder Platform
PC Programme Coordinator
PCO Programme Coordination Office
PCU Programme Coordination Unit
PIC PCO level Investment Committee
PO Producer Organization
PPA Public Procurement Act
PRA Participatory Rural Appraisal
PSC Programme Steering Committee
SIP Strategic Investment Plan
SP Service Provider
SM Social Mobilizer
ToR Terms of Reference
UC User's Committee
USD United States Dollar
VC Value Chain
VCD Value Chain Development
VCDF Value Chain Development Fund
VHLSEC Veterinary Hospital and Livestock Service Office
W1 Window-1
W2 Window-2
1. Market-orientedPublic and Community Infrastructure Fund (MPCIF)
1.1 Introduction
Market-oriented Public and Community Infrastructure Fund (MPCIF) is a grant facility within
the Agriculture Sector Development Programme (hereinafter referred to as 'Programme') sub-
component (ii) Market-oriented Infrastructure Functional under the component 1: Value
Chain Development.
Market-oriented Public and Community Infrastructure Fund (MPCIF) will invest on "community
owned and public goods Infrastructures" that address specific value chain (VC) constraints
and have clear and direct benefits to a wider group of VC actors but are not likely to
attract purely private investment. Identification and recommendations for investment on
infrastructure will come from VC actors themselves through the Multi-Stakeholder Platform
(MSP) dialogues processes.
In alignment with the SIP and as identified and prioritized through participatory community
planning, MSP/similar consultative meetings and their alignment with Municipality
infrastructure plans, the programme would make co-investments for public and community
market-linked infrastructure that provide public goods and collective benefits (Semi-public
good) essential to targeted commodity value chain engagement and/or climate change
adaptation. The major types of infrastructures are village and farm access roads, trails,
bridges, ropeways, commodity storage /collection centre, market centres, ponds, small-scale
irrigation and multi-purpose village water supply.
The programme will be structured to cater for innovative demands as they emerge. For
public infrastructure (village roads, trails, markets, etc.) funds will be advanced to
Municipalities to implement with Programme-contracted infrastructure design and construction
supervision support whereas, collective goods infrastructure, with beneficiary contributions in
cash and in kind", will be primarily built through community action unless their scale or
complexity required contracting.
1.2 Scope of Guidelines
This guideline is an elaboration of programme design report (PDR) and programme

implementation manual (PIM) based on financing agreement between GoN and IFAD and
intended to support implementation of market-oriented public and community infrastructure
sub-projects.This guideline provides basis for selection, implementation and administration of
infrastructure applications and proposals from producer groups/ cooperatives, market
management committee, user's committee, associations, and local government. Any
provisions conflicting with any prevailing laws and regulations of Nepal shall be void to that
extent. This guideline has two parts - the main body text and the annexes. The annexes
1Marketowned by group, cooperativesand agri-businesseswill be treated as 'private'and have to contribute 15%

cash whereas the markets owned by Municipalitieswill be treated as 'publicgoods' and hence no cash contribution
consist sample templates for various purposes and may need frequent updating as the
Programme gains experiences during the course of implementation.
1.3 Purpose of the MPCIF Guidelines
The purposes of the Guidelines are:
.:. To provide guiding principle, procedures, eligibility and evaluation criteria for selecting
viable sub-project and their smooth implementation under MPCIF .
•:. To enhance the capacity and understanding of the programme stakeholders and
implementing partners including Local government on the implementation of Market-
oriented Public and Community Infrastructure sub-project.
.:. To assist and guide the Programme Coordination Office and Programme Coordination
Unit in planning, implementing, supervision and monitoring sub-project investment
through MPCIF.
1.4 Enforcement and Effectiveness of Guidelines
This guideline is a living document to facilitate the implementation of activities on the

ground and 0 shall come into force only after the approval from Programme Steering
Committee (PSC) constituted under the Ministry of Agriculture and Livestock Development
(MoALD) and no objection from IFAD. The guidelines may be revised as required based on
the experience and lessons learned during the course of implementation as recommended
bythe Joint Review Missions fielded by IFAD and GoN. Any revisions shall be in effect only
after the endorsement by both the PSC under MoALD and no objection (NoL) from IFAD.
The PCO is authorized to make necessary changes in the various templates presented in
the annexure of this document with a view to simplify the procedure without any implications
on the main body part.
2. Terms used in MPCIF Guidelines
2.1 Producer Organizations (POs)
The producer organisations (POs) are formal rural organisations whose members are
smallholder farmers organized themselves with the objective of improving farm income
through improved production and post harvest practices. pas can be a group, a cooperative
or a consortium/associationof a few groups under a cooperative, community forest users'
group, and other's community-based organizations registered under relevant government
entities, collaborating with the programme under value chain development fund (VCDF)
Window-2.
2.2 Service Providers (SP)
Service Providers (SP) may be an individual or a consulting firm who are engaged by the
Programmeto supportthe participatingmunicipalitiesin providingtechnicalsupportfor PUbli8 J
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infrastructure sub-project preparation, appraisal, screening and implementation such as

feasibility study, detail design, survey, drawings and cost estimate preparation and quality
construction and supervision of the sub project.
2.3 Users' Committee (UCs)
Users committee (UC) is a committee involving representatives among the direct

beneficiaries of the intended infrastructure sub-project and registered in relevant government
entities. The UC will work together with the local (municipality and ward) governments and
responsible to carry out construction, implementation, operation and maintenance of the
infrastructure in a timely manner. The· UC is also responsible to record the funds received
and to submit documents, bills, receipts and progress reports to the Municipality/PCO in
timely manner.
2.4 Market Management Committee (MMC)
MMC comprise representatives from producer organizations, traders, local

government/Municipality, and agriculture offices of the command areas of proposed market
infrastructure including market manager in line with the Agricultural Product Marketing
Development and Management Directive-2073 and its amended regulations for the
operation and management of wholesale market, collection center and retail market. The
MMC shall have own market operation guidelines and responsible for
extension/expansion/management of market infrastructure and providing market related
information/services to producers, traders, consumers and other related institutions.
2.5 Municipality Agriculture Development Committee (MADC)
MADC is a committee formed at municipality level responsible for overall planning,

coordination and supervision of agriculture related programme/activities in concerned
municipality. MADC shall support initially and lead on a later stage for conducting MSP at
municipality level and to identify, prioritize and select potential infrastructure for support.
MADC shall facilitate and support the respective municipalities in identifying infrastructure
sub-projects and ensure that the selected infrastructures are reflected in Municipal plan and
forward them to ASDP PCO or PCU for approval and co-financing of the sub-projects.
MADC also facilitates and supports for feasibility study, field verification, quality construction,
supervision, monitoring and reporting of the sub-project investment. The participants from
MADC during the meeting at PCU/PCO shall be entitled for meeting allowance as per the
rate decided by P_C9.
2.6 PCU Team
There will be a PCU Team in each (three) corridor office i.e. in Salyan, Jajarkot and Jumla.
The team shall comprise of ASDP corridor level staffs and HELVETAS staffs. PCO will
provide technical backstopping to the PCUs as required.
2.7 Value Chain Team
A value chain team overall responsible for planning, screening and preparation of
infrastructure proposal shall be established at corridor level and PCO consisting following
members;
PCU Level:
.:. Value Chain and Business Development Officer- Coordinator
.:. Rural Finance Officer
.:. Gender and Social Inclusion (GeSt) and Nutrition Officer
.:. Programme Engineer
PCO Level:
.:. Value Chain Expert (Business)- Coordinator
.:. Value Chain Expert (Technical)
.:. Rural Finance Expert
.:. Gender and Social Inclusion Expert .
•:. Infrastructure Development Expert
The value chain team in coordination with PCU/PCO shall support in disseminating
information/notice in the cluster/corridor as well as coordinate/support municipalities/wards to
dispatch information/notice for wider dissemination to inform target beneficiaries. The VC
team alsocarries out the preliminary screening and short listing of Infrastructure Proposal
(IPs) and is overall responsible for coordination of field verification with support of
Programme Coordination Unit (PCU). During the field visit, anyone member of the VC team
shall be involved to coordinate and facilitate the field verification team with support of Social
Mobiliser or field level staff as per requirement.
2.8 Field Verification Team (FV Team)
A team for field verification of Infrastructure Sub-projects shall be established, consisting

following team members;
.:. Anyone member of value chain team to coordinate and facilitate the field verification,
.:. Any one representative from MADC/MunicipalitylWard elected Representative
.:. Programme Engineer2and/or Municipality Engineer
Service providers (Consultants) and representatives from concerned authorities shall be

invited for field verification as per requirement. In case of public infrastructures, the PCU
level VC team member shall be replaced by PCO level VC team as applicable. Th@e
programme will pay remuneration to FV team as per the GoN rules on daily basis. In cas ,{: ,
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of the representatives from Non-Governmental Organisations and elected bodies, the DSA
shall be of officer level.
2.9 Corridor level Investment Committee (CIC)
CIC shall be formed in each corridor offices/Programme Coordination Unit PCU. The CIC
shall comprise of following members;
.:. GoN deputed Agriculture Officer-Coordinator
.:. Value chain and business development officer- Member
.:. Programme Engineer-Member
.:. GoN deputed Technical Assistant- Member Secretary
.:. Rural finance officer, GeSI & Nutrition Officer, M&E Officer and other staff, experts and
representatives from concerned authorities-Invitee Member (if required for technical
support and consultation)
The role and responsibility of CIC Committee will be as below:
• Evaluate, appraise and check compliance with procedures/selection criteria/ MSP

recommendations etc. of community based collective and public infrastructures
submitted by value chain team and then recommend to MADC for endorsement.
• Facilitate and support for implementation and monitoring of sub-projects at field level
and recommend Programme Coordinator for corrective action and grant modification as
required.
2.10 PCO level Investment Committee (PIC)
One PIC at PCO shall be formed comprising of following members
.:. Senior Agriculture Officer from PCO- Coordinator
.:. Planning Officer from PCO- Member Secretary
.:. Funds and Financial Management Expert- Member
.:. Value Chain Expert (Business)-Member
.:. Value Chain Expert (Technical)- Member
.:. Infrastructure Development Expert- Member
Based on nature of investment, other experts and representatives from concerned authorities
may be invited as invitee member(s).
The role and responsibility of PIC will be as follows:
.:. Appraise and

recommendations/MADC
check compliance with
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recommendations including duplication of resources of proposed Infrastructure sub-
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.:. Recommend PC to seek no objection from IFAD for individual public and public
private infrastructures proposal having grant size equivalent to NPR 5,100,000.003 and
above.
•:. Monitoring all infrastructure investment by representativesof the investment committee

and recommend PCO/Municipality for corrective action, clarify the clause in the
guidelines as needed and grant modification as required.
3. Areas of Investment
Market-oriented Public and Community Infrastructure Fund (MPCIF) investment should

provide public goods and collective benefits that are needed to thrive and/or essential to the
successful development of targeted commodity value chain engagement and/or climate
change adaptation and are not likely to attract purely private investment. Investments will
include both community-based collective good infrastructures co-financed along with
concerned community beneficiaries and public good infrastructures mostly co-financed along
with concerned municipality and beneficiariesas given in table-1 below:
Table 1: List of Potential Community based and Public Infrastructures
Type of Infrastructure Examples (not exhaustive list)
Community Based • Water - pond irrigation, small-scale irrigation and multi-

Collective Infrastructures use water system
• Collective good infrastructures like commodity

storage/collection centres, market centres, cold storage,
pre-cooling facilities, grading- packaging facilities etc.
Public good infrastructure • Rural/AgricultureRoads
• Trails & trail bridges, culvert and Gravity ropeways
Public-private partnership • Agri-Markets and expansion of wholesale market facility,

infrastructure haat bazaar for high value agricultural products
4. Grant Limit and Co-financing
Co-financing of construction costs of public and collective good infrastructure works would
be in accordance with the accompanyingTable-2 below. The programme shall co-finance up
to NPR 2,040,000.004 for community based collective infrastructures whereas for public
infrastructures,the investment shall be as per the detail design and cost estimate. However,
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3 First Amendmentas per PSC meeting held on July 10, 2020
Amendmentas per PSC rneetinq held DO July 10, 2020
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the Individual infrastructure investments exceeding NPR 5,100,000.005 will require no-
objection from IFAD, with full justification.
Table 2: Co-financing Status of Public and Community Infrastructures
Type of Infrastructure Financier
ASDP Municipality Beneficiary
Public Goods Infrastructures as Rural/Agriculture

Roads, Trail & Trail bridges and Agri. markets etc. 15%
60% 25%
(in Kind)
construction through user's committee .
Public Goods Infrastructures as Rural/Agriculture

Roads, Trail & Trail bridges and Agri markets etc. 75% 25%
through Contractor via. competitive bidding
Community-basedcollective infrastructure as 15%

85% (in kind or
irrigation, collection centres, multi-use water system #
cash)
Market linvestment feasibility studies, Design and
100 % 0% 0%
Supervision etc.
# Note: these infrastructureswill be managed by producer organisationsand fund will be

disbursedto their account similar to VCDF
5. ImplementationArrangement
Public or collective market-linked infrastructure investment schemes that provide collective

benefits and essential for successful development of value chains would be identified and
prioritized through community planning, SIP, MSP process and similar consultative meetings,
facilitated by VC team in liaison with respective Municipalities. All infrastructure investments
should be climate change adaptive and in line with the Local Infrastructure Development
Policy (LlDP).
Community based Collective Infrastructure including irrigation will be primarily built through
community action, with beneficiary contributions in cash and in kind", unless their scale or
complexity required contracting. These infrastructures shall be endorsed through MADe and
funds will be advanced to community user committee (UCs)/Producer organizations (POs)
once the proposal along with cost estimate and design is approved and tripartite contract is
5 First Amendment as per PSC meeting held on July 10, 2020

6 Market structure owned by group, cooperativesand agri-businesseswill be treated as 'Communitygoods and
require community contributions and Value of land for community infrastructureswill be considered as cash
contribution,whereas the markets owned by Municipalitieswill be treated as 'public goods' and hence no cash
signed between producer organization, respective municipality and ASDP similar to Value
Chain Development Fund (VCDF).
Public and public private infrastructure (village roads, trials, markets, etc.) will be co-
financed along with concerned municipality once the prioritized infrastructures is socio-
economically and technically feasibleand included in Municipality annual plans as well as
ASDP's annual work plan and budget. User committees will be formed for all public
infrastructures (village roads, trails and trail bridges) and infrastructure will be primarily built
through user's committee unless their scale or complexity required contracting. A tripartite
contract will be signed between Users. Committee, Respective Municipality and ASDP and
funds would be reimbursed to municipalities along with Programme-contracted infrastructure
design and construction supervision support by the PCO.
6. Beneficiaries and eligibility criteria
For the Market-oriented Public and Community Infrastructure Fund, the beneficiary can be
any legal public or private entity/organisation as producer organisations, market management
committee, traders/Agribusiness/commodity/cooperative associations, relevant government
agencies and local government who are linked for the successful development of respective
value chain and sector as a whole. However, those having obtained any grant from any
other projects for the same type of infrastructures/work shall not be eligible for co-financing
under this fund.
The points to be considered for selection and prioritization various type of public and
community infrastructures are summarized below:
Irrigation and water supply will be new or existing one and shall be in the high potential
pockets/cluster areas and depend on technical feasibility. Existing farmer managed small-
scale irrigation systems/will be rehabilitated and upgraded using modern technologies that
promote water use efficiency and CLOp productivity along with improved domestic water
supply systems for the community. Rehabilitation and upgrading of irrigation schemes will be
prioritized depending on the: (i) number of beneficiaries; (ii) value of crops to be grown;
(iii) number of disadvantaged communities benefitting; (iv) linkage with a commercial trader
to buy the produce and (v) availability of road access.
Local transport infrastructure (Rural Roads) include motorized and non-motorized

transportation focusing on market access and village roads that are less than 5 km in
length and link highly potential production clusters/pockets of targeted high value
commodities and community benefitting from such rural roads has worked with ASDP in
selected value chain for at least one crop cycle.
Priority would be given to upgrading roads from fair weather access to all year access,
whilst new roads may be included. All village roads to be upgraded or new development
will be part of the districtlmunicipality transport master plan. The municipality will make an
undertaking to co-finance the construction and maintenance of the road after construction,
as part of condition for selecting the road. The specific criteria and scoring for selection of
transport infrastructure as rural roads is given in Annex 2. It is anticipated that the cost of
development for market access and village roads will be about $100,000 equivalentlkm.
Trails and trail bridges will be owned by the municipality and maintained jointly by the
community and municipality. The municipality will co-finance the construction of the trail
bridges, culverts and associated trails and the community will contribute towards the
construction and maintenance of trails and trail bridges;
Market infrastructures will be according to the needs identified in the SIP and in line with
local government priorities. Markets shall be of different sizes depending on the locations
and identified need, owned by the local government (municipality) but managed by
registered Market Management Committee (MMC). The MMC will charge fee for users to
finance optimal operation and maintenance of the market. The land ownership of the
proposed local and regional agriculture market infrastructures should be within the name of
beneficiaries/local government however, the land shall not be considered as part of
Municipality co-financing contribution.
Community-based collection centres: Collection centres shall be developed in line with the
needs of traders, owned and operated by legally registered producer organization.
Community of the command areas have to contribute 15% cash or kind in such
infrastructures.
7. Grant Approval and ImplementationProcess under MPCIF
The sub-project application/proposalcollection, identification, selection, evaluation, appraisal

and approval procedure for co-investment of both i) community infrastructures and ii) public
infrastructuresunder MPCIF is summarized in Figure 1 and 2 respectively.
Figure 1: Community based Infrastructure Grant Approval Procedure
Market led Community Based Collective Infrastructure Grant Approval Procedure
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• IAIIP: Infrastructure Applications/Proposal • MADC Munidpality Agricunure Development Corrmittee
• PC: Programme Coordinator • SIP: Strategic Investment Plan
• MSP: Muilistakehoider Platlorrn • PO: Producer Organization
Figure 2: Market Led Public Infrastructure Grant Approval Procedure
Market Led Public and Public-Private Infrastructure Grant Approval Procedure
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• MADC: Municipality Agriculture Development committee • SP: Consultant/Consulting Firm
The various steps involved in identification and selection of potential infrastructure sub-
project under MPCIF and their smooth implementation shall be as follows:
7.1 Call for Infrastructure Application (IA)
PCO/PCU shall call for submission of application/proposal for public and community-based
infrastructures identified/prioritized by SIP, MSPs and similar consultation meetings through
public call or by sending official request letter to respective municipalities and concerned
institutions, depending on the type of infrastructures", Producers' organization from the
identified clusters in selected value chain and public/private entity as MMC, associations,
Government agencies and Municipalities shall submit the Infrastructure Applications (IA) to
ASDP as provided in Annex 1 to PCU and PCO.
7.2 Desk Review and Initial Screening
The VC team as outlined above shall carry out desk review of Infrastructure Applications
(lAs) in consultation with MADC. The VC team shall consider checklists including climate
proofing as provided in Annex 2 for screening. The VC team (in particular Engineer)shall
prepare a summary report for collected infrastructures applications and proceed for field
verification.
7.3 Field Verification
The PCU/PCO will organize field verification of screened infrastructures applications/proposal.

Member of VC team and representatives from MADC/Municipality/Ward elected
representative will conduct socio- economic and technical feasibility survey of the proposed
infrastructures. The field verification of community based collective infrastructure can be
done together along with the VCDF window 2 proposal to the extent possible. The FV team
will invite experts from respective agencies, individual or consulting firm (service provider) as
relevant depending on the type of infrastructure during the field verification. ASDP will pay
remuneration to the members as per the prevailing norms during the field verification.
In addition, the programme Engineer or service provider (Consulting firm) shall prepare
feasibility report of proposed infrastructure (particularly public infrastructures)as per the
sample template given in Annex 4 with the involvement of MADC/respective ward
representatives and recommend whether the proposed sub-project is feasible or not in the
site. The FV report and feasibility report shall be submitted to PCU/PCO.
7.4 Selection and Endorsement
PCU/PCO shall submit the field verification / feasibility report of the initial screened
infrastructures to MADC/Municipality for endorsement and final decision. Only after the
endorsement from MADC, the detail survey, design and cost estimate of community based
collective infrastructures shall be undertaken.
8Eol/Noticefor production related Community infrastructures and letter for Public infrastructures as roads, markets,
gravity rope ways etc.
However, in case of public and public- private infrastructures such as rural roads, agriculture
market, trail and trail bridges, that require co-financing from municipalities, MADC shall
facilitate to receive recommendation letter from concerned municipality ensuring co-
investment percentage as required and subsequently include in the Municipal annual plan.
7.5 Preparation of Detail Survey, Design and Cost Estimate of Selected Infrastructures
VC team (in particular the programme Engineer) shall carry out detail survey, design,
prepare bills of quantities and cost estimate of the proposed community based collective
infrastructures based on the prevailing local governmentldistrict norms including climate risk
assessment and possible preventive measures.
In regard to public and public private infrastructures, the programme team will closely work
with MADC/Municipality for detail survey, design and also seek technical support from
service provider (local or external) if required based on the nature /type of infrastructures for
technical design, survey and cost estimate (DPR) of the selected infrastructures including
detailed environment and climate risk assessment along with possible preventive measures
to improve climate resilience of infrastructures, both during construction and at operation and
maintenance (O&M) stage besides financial and economic analysis. The cost of the
contracted service provider during this process shall be fully covered by ASDP.
The design of the transport link (road) will aim to achieve the lowest life cycle costing
(costlkm), which include: (i) the amortized cost of the investment for the link (new or
rehabilitation); (ii) the annual maintenance cost; and (iii) any annual operation costs for that
link. The detail surveys for roads and irrigation sub-projects shall be conducted during the
driest periods i.e. in the pre-monsoon months of mid-February to mid-May.
7.6 Facilitate for Proposal Development and' Submission
The VC team in coordination with field staff will support and lor facilitate linkages with
private service providers for developing proposal of those selected infrastructures. The
selected qualified private/public entities as producer organizations, market management
committee, associations, Government Institutions, Local Government will submit proposals as
per the template in Annex 5 & 6 to PCU/PCO in hard copy or electronically. The proposal
will include essential information related to proposed infrastructures development as given
below.
• Main concept and idea
• Situation Analysis
• Objectives and description of the investment
• Relevance for infrastructures in addressing VC constraints /Ieveraging opportunities
•
Technical and economic viability if applicable
Implementation arrangement, and role and responsibility of edaChentity/partnership e J
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• Cost Estimate
• Cost Sharing Mechanism (as applicable)
• Implementation/InvestmentSchedule (Timelines)
• Expected result
• Sustainability e.g. how it will be operated sustainably? Continuity of post implementation

repair and maintenance?
The entity (Pas, community) submitting proposal for community based collective
infrastructures sub-project should provide evidence to contribute 15% (in cash or kind
contribution) of the total investment cost. Likewise, in case of public and public-private
infrastructures proposal, the beneficiaries (public / private entity) or municipality should
ensure the completion of following activities and submit activity reports/minutes along with
the proposal to PCU/PCO.
• Public hearing for communicating results of Detail Survey design and cost estimate to
the community and local government (municipality/ward) concerned for implementation
of the proposed infrastructuressub-projects
• Formation of User's Committee (UC), if required.
• Preparationof Operation & Maintenance Plans and Financing System (OMPF/S)
• Full proposal with detail survey, design & cost estimate including any other
documents/reports(lEE, Economic & Financial Analysis etc.) as applicable
• Letter ensuring co-financing from concerned municipality and beneficiariestoo (cash and
Kind) if applicable
• Proposed infrastructures included in subsequent participatory community planning

process, endorsed and aligned with Municipality infrastructure plans
The VC team will finalize the proposal along with the detail design and cost estimate and
ensure all necessary supporting documents as required in place and then submit to CIC
team for further process.
7.7 Evaluation and Appraisal
CIC team shall do evaluation, appraisal and compliance check of community infrastructures
sub-project proposal in coordination /support of thematic experts within PCU as required, in
line with the template given in Annex 7. CIC shall select community-based infrastructures
sub-project proposal in accordance with the criteria and budget limit set by the guidelines
and recommendto PIC for further process.
However, in case of public and public private infrastructures, CIC shall forward to
MADC/Municipalityfor further process once evaluation and appraisal have been completed
as mentioned above. The CIC shall draw thematic expertise support from PCO, and service
provideras required duling the assessmentprocess.The MADe will endorsethe suCCeSSfu&
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sub-project submitted by PCU and recommend to the Chairperson/Mayorfor endorsement

and provision of required co-investment budget from concerned Municipality as well as to
include in Municipality annual plans. PCU will facilitate to send the selected IPs along with
the recommendationletter stating commitment of required co financing from Municipality to
PIC at PCO for further process and approval.
7.8 Incorporation in Municipal Annual Plan and Allocation of Fund
MADC shall coordinate with concerned municipality for incorporating and aligning the
proposed Public and Public-Private Infrastructure sub-project in municipality infrastructure
plan. Municipality shall also allocate its part of contribution for development of proposed
infrastructure sub-project. Municipality shall forward the sub-project proposal along with
recommendation letter to PCO for further review and approval. PCU and MADC shall
facilitate the proceduresto be carried out by municipality.
7.9 Appraisal and Recommendation
The PCO Level Investment Committee (PIC) based at PCO will provide technical
support/guidance, supervision and direction to CIC/PCU during the entire sub-project
proposal development, evaluation and appraisal process and also facilitate and support for
engaging technical consulting firm as required.
In addition, the PIC shall appraise both community-owned collective infrastructures and
public & public private infrastructure proposal recommended by CIC and Municipality
respectively and compliance check of all the required documents along with enough fund
allocation as part of Municipality contribution. If it meets all the requirements, then PIC
recommend Programme Coordinator for final approval.
PIC shall recommend PC to send Public infrastructure proposal above NPR 5,100,000.009 to
IFAD for no objection letter and subsequent approval once NoL received from IFAD.
7.10 Approval and Grant Agreement
Programme Coordinator will approve Community based and Public and Public Private
Infrastructure sub-project recommended by PIC and a tripartite Grant Agreement shall be
signed among ASDP, concerned municipality and applicant (POs, User committee, MMC
etc.) depending on the type of infrastructure sub-project. Grant agreement will be filed at
PCO/PCU with copies to the other two signatories and respective ward office.
The grant aqreement shall comprise, among others, the details of the sub-project, the
respective duties, roles and responsibilities of the applicant, ASDP and municipalities,
payment schedule and associated verifiable performance milestones, and the conditions
under which the reimbursement is done. Format for grant agreement has been given in
Annex 8.
9 First Amendmentas per PSC meeting held on July 10, 2020

8. Fund Disbursement
Disbursement of fund regarding community infrastructures will be made on Advance as
well as on Reimbursement basis as per the provision agreed upon in Grant Agreement
through bank account only. In case of federation/associationof groups within a cooperative
or an interest group within CFUG as Grant recipient, the grant fund will be reimbursed in
cooperatives/CFUGaccount.
Co-financing payment will be made to Grant recipients through reimbursement based on

running bills as per agreed ratio as much as possible. However, up to 30% of total grant
amount shall be released as first installment advance following the grant agreement signed
between the recipient, Municipality and ASDP after the necessary preparatory work put in
place for the commencement of implementation and recommendation from concerned
Municipality for release of advance installment to Grantees. Successive installments will be
released based on achievement of implementation milestones and utilization of previous
installments after submission of sub-project interim progress report and recommendationof
MADC/Municipality.
While releasing the fund as installment/reimbursement,following documents need to be

submitted. Fund will be transferred to recipients' bank account upon approval of the
submitted documents by PC.
• public hearing minute (involving palikas/ward representative) along with supporting

documents,
• original bills and receipts,
• field valuation report (monitoring report, running bill or measurementbook as applicable)

from Engineer,
• Decision minutes from POs.
While making final installment, final valuation report including Measurement Book prepared
by Engineer and sub-project completion reports including the documents mentioned above,
duly verified and certified by PCU with support of PME team and MADC/Municipalityneed
to be submitted. In addition, MADC/Municipality shall endorse the sub-project completion
report and recommend PCO for. final payment.
For Public and Public Private Infrastructures, the municipality will release their part of
contribution of the. proposed sub-project to grant recipients (UCs, MMC etc.) bank account
to start with, once the necessary preparatory work put in place for the commencement of
implementation. ASDP shall provide its contribution based on progress against the
milestones mentioned in the MoU, upon recommendation from respective Municipalities
along with duly signed verified copy of valuation report, and other supporting documents as
mentioned above including monitoring reports by person in charge. The programme
engineer/sub engineer and lor service provider (Consulting firm) hired by the programme will
provide technical support, regular supervision and monitoring for quality construction to grant
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recipients as required during this process. Fund will be transferred to respective grant
recipients' bank account upon approval of the submitted documents by PC, and concerned
Municipality informed on the release of fund by PCO accordingly.
However, the audit responsibility of the sub-project expenditure shall be of both

Municipality and ASDP as per the contribution.
9. Management & Administration
9.1 Modification of Grant Agreement
Grant Agreement may be modified if felt necessary during the implementation. Any of the
party (ASDP, Municipality or the grant reclptent"), who felt necessity for modification should
submit written request to other parties with sufficient reason justifying modification. The
conditions for modification may normally be as below:
i) Substantial increase/decrease in market price of the goods and services which is

beyond the control of grant recipient and ASDP", or changes in the specification of
the inputs, labour, machineries, equipment etc., as specified in the approved proposal.
ii) In case of additional programme support is needed to include additional beneficiaries

and any works or services need to be suspended because of various circumstances.
iii) Availability of new or better technology with different specification as replacement.
iv) In any of the above situation, i.e. either escalation or reduction, it is not permitted to
go beyond 10% of the total budget.
9.2 Technical support for construction
The Programme Engineers and sub-engineerswith the support from PCU/PCO will facilitate
and support the implementationof sub-projects in collaboration with MADC/Municipalitiesand
others. In addition, the Programme shall contract service provider (consultant /consulting
firm) based in road corridor, for assisting the Programme Coordination Unit (PCU) and
related municipalities for design, construction, in updating feasibility study, survey, design,
cost estimation, assist in procurement of works, supervision of construction work including
quality control procedure, reporting, environmental safeguard compliances etc. as required. A
sample ToR of Consultancy service is given in Annex 9. The Programme and Municipalities
shall provide construction managementtraining to POs, UCs as required.
10
11
POs, Municipalities,UCs, MMC etc.
The increased cost of goods/servicesis applicable if the planned activity is with the agreed time frame of the
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9.3 Project Implementation and Procurement of materials and contractor
The implementation shall be done by grant recipients or concerned municipalities by forming

a User Committee UC) including construction, procurement and monitoring sub-committees
and may involve other stakeholders, public, private or other sectors as per necessity.
Procurement of materials and even contractor during implementation of sub-project will be

managed by the grant recipient and follow standard procurement procedure mentioned in
grant agreement and that of prevailing Government of Nepal/Public Procurement Act and
will be solely responsible for the final decision on which suppliers to use.
9.4 Accounting
.:. The Grant recipient should maintain a separate book of accounts for the approved sub-
project co-investment.
.:. The grant recipient should keep all the bills, receipts, quotations, contracts, minutes of
meeting and any other documents related to payments from the co-investment fund .
•:. Competent authorities from IFAD and GoN including MunicipalitieslWard, PCU/PCO of
ASDP or their representative can verify those documents any time.
9.5 Operation and Maintenance Arrangement
.:. The responsibility for operation & maintenance of the facilities created with ASDP
support remains with the grant recipient. The grant recipient should prepare asset
maintenance plan and implement plan accordingly. ASDP will not provide extra fund for
this purpose .
•:. The Grant recipient should create at least 3 (three) percent of the total investment
cost as operation and maintenance fund (O&M) for the sustainable operation of the
sub-project. Programme and Grant recipient shall share at 50:50 ratio as contribution to
o & M fund.
•:. The Grant Recipient should generate revenue by charging fees against the use of
infrastructurefacilities by beneficiaries as applicable.
9.6 Ownership
The ownership of the assets/propertycreated by sub-project co-financing will remain with the
concerned public entities such as Producer organizations, User Committees, Market
ManagementCommittee, Municipalities,and Wards as applicable.
9.7 Transparency, Good Governance and Audit Provisions
.:. Grant recipient should make public hearing of project progress, expenditures and status
in their regular stakeholders meeting. Public hearing should be conducted before
submission of every reimbursement request as per running bills and on completion of
sub-project in presence of concerned stakeholders including MADC, ward/municipality a
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.:. A Public Display Board as in Annex10 should be maintained at the infrastructure site
to publicize the information including sources and uses of fund along with the number
of direct and indirect beneficiaries and expected Outcome .
•:. The Grant recipients should arrange the sub-project financial audit according to their
own statute, policy, norms and regulations and submit the audit report to PCO/PCU.
9.8 Restriction to use of sub-project fund
The project fund should not be used for,
.:. Purchase of land
.:. Purchase of second-hand machines/equipment
.:. Managing social events
.:. Any other works as restricted by the law of the Government of Nepal
10. Monitoring, Evaluation and Reporting
PCU/PCO shall carry out monitoring and evaluation of the sub-project independently and/or
with involvement of representatives from concerned MunicipalitylWards and other
stakeholders as District Coordination Committee, Provincial Government, DCCI, or
associations as appropriate. The representatives will be paid remuneration during their
involvement in programme activities such as field verification, monitoring, public hearing etc.
based on GoN norms upon submission of reports as per the template.
Monitoring and evaluation should focus on whether:
.:. Grant fund and matching fund contributions has been received in time and properly
recorded.
•:. Fund accounting system has been set up.
•:. Fund is being used only for the purpose as per agreed proposal.
.:. Physical progress and financial delivery targets are met.
.:. Sub project infrastructure including Machineries/equipmentand facilities created by sub-

project are running effectively.
•:. Compliance with MoU, norms and policies internally developed as well as grant
agreement and guidelines for fund management.
.:. Documents related to co-investment activities (minutes, decisions and accounting

documents) are well maintained.
•:. Impact on target beneficiaries.
•:. Any adverse effects/impacton community people and the environment.

11. Sub-Project Completion and Reporting Arrangement

Grant recipient shall submit interim reports on physical and financial progress on periodic
basis along with the running bills and final reports after completion of sub-project to PCO
as agreed in grant agreement.
The report should include:
.:. Activities conducted during the reporting period and detail of expenditure including
photos
.:. Progress in achieving pre-defined milestone
.:. Achievement of economic benefit as of reporting date
.:. Challenges faced and recommended way-out to address the challenges and future
move
Annexes
Sample Templates
Annex 1: Template for Infrastructure Development Applications

(Nepali Version)
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Annex 2: Checklist for IA screening and short listing
Result
S.N. Checklist
Yes No
1. Has lAs been furnished with required details?
2. Does the proposed site for Infrastructure development falls in targeted
cluster area of selected VC? If the site outside the cluster important for
development of agriculture value chains
3. Is the applicant registered in concerned municipality or concerned
authorities of Government of Nepal?
4. Does the proposed infrastructure fan under the infrastructure grant limit
and programme time frame?
5. Is the proposed infrastructure identified/prioritized by SIP, MSP and/or
community planning process and contribute to overcome specific value
chain constraints?
6. Is the Proposed Infrastructure technical and environment Feasible?
7. Is the Proposed sub project socio economic and flnanclally viable?
8. Does the proposed infrastructure meet the eligibility criteria?
Annex 2.1 Selection criteria and Scoring Matrix for transport Infrastructure
Parameter Scoring Unit Score
Population Population/NPR 100,000 investment cost 50
Cultivated land under the target high Area cultivated (ha)/km 25
value commodity
Population x walking hours Population x walking hour/km 15
Total population of poor, Da/its, Janajatis Population/km 10
and marginalised groups
Programme will consider transport links that have the least investment cost.
The road infrastructure will follow standards as stipulated in the Nepal Rural Roads Standards (2010).
Local transport linkages are categorised into five classes based on the function of the link, traffic
volume and type, and topography. The three that are relevant to the Programme include:
(i).District Road Class B (RRB) - linking Grade A market to grade C, linking grade B market to Grade
C market, connecting Municipal (Ward) centres, linking Grade B or C market to SRN or LRN;
connecting a place in a village (river ghat, mini-market, school, health post, residential area, forest,
etc.) with a village centre or any other road link. Village roads are smaller and shorter than RRB
roads. The ASDP will invest in RRB roads and village roads that are less than 5km in length and
justified with linkage to significant production clusters/pockets of targeted high value commodities in
the selected production clusters.;
(ii).Rural Road Class C (RRC) - all major non-motorable foot/mule trails which connect a Municipal
(Ward) centre with a district/municipality headquarters, SRN, DRCN, village road and other major
location. This class will include trail bridges. The ASDP will invest in RRC infrastructure. It is
anticipated that the cost of development will be about USD 700/meter for trail bridges; and
(iii). Rural Road Class E (RRE) - In the high mountains where construction of trails is not feasible, rope
considerations but conslderinq the amortised oost 0' construction, / n

ways shall be considered. The rope ways shall be mainly justified based on socio-economic
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Annex 3: Template for Matters to be Considered during Field Visit
S.
Aspects Justification/Remarks
N
A. Technical aspects
1. Is proposed infrastructure technically feasible?
2. Is proposed infrastructure environmentally friendly? Not prone to climate
induced risks
3. Are there potential risk and severity?
B. Social aspects
1. Number and structure of beneficiary group
2. Is land acquisition issue clear?
3. Is there any negative consequence in any group of people?
4. Is the proposed infrastructure socially acceptable and participated by
majority of community?
5. Is there any possible conflict of interest within community and other
Government agencies?
C. Value chain aspect
1. Is proposed infrastructure solve value chain constraints and create
conducive environment for growth of high value commodity?
2. Is the proposed infrastructure manageable by community?
D. Investment
1. Does the cost of proposed infrastructure come under grant limit?
2. Investigate credibility and integrity of the applicants
3. Investigate credible participation from community
4. Investigate on synergy and duplication
E. Post construction management
1. Community capacity to manage the asset (sustainability)
2. Possibility of equitable sharing of benefit
Name and Signature of FV Team Member:

Annex 4: Template for Feasibility Report (Engineering Aspect)
1. General Information:
.:.
Site Number: .
.:. Site Visit by: .
.:. Date of Site Visit (DD/MMIYYYY): .
.:. Contact No: .
2. Information about the Project:
.:. Name of the Project/Infrastructure: .
•:. Types of Project/Infrastructure: .
•:. District: .
•:. Municipality/RM Name .
•:. Ward No: .
•:. Tole/Settlement Name: "
.:. Beneficiary HHs: .
3. Site ObservationNerification
S.N. For Multi-site Analysis
Questions Full Marks Response
Marks Distribution
3.1 4 Government land
3 Private land
Site Location 2 Leased land
4 1 Guthi
If others (Specify the marks)
3.2 1 Landslide susceptible areas
Riverbank and waterlogged area
2 Rock fall area
Geological fault or rupture areas
Physical Verification Steep Slope> 20° (1:3, Vertical:
4
3 Horizontal)
Filled areas
4 Liquefaction susceptible area
3.3 1 Ordinary
.. 2 Boulder mix soil

Soil Type
3 3 Hard/Rocky

3.4 1 Riverbank
2 Valley or Tar area
Terrain
Ridge area
Jit._~ If, 4 3
Undulating land
Terraced land of slope area
~ ~,
S.N. For Multi-site Analysis

Questions Full Marks Response
Marks Distribution
1--
4 Flat land
3.5 Do you think this place safe 1 No
from any natural 2 Yes
2
disaster/hazards? If others (Specify the marks)
3.6 1 Flashflood
If No, what type of natural
2 Landslides
disaster may occur (multiple
3 3 Erosion
answers)
3.7 Is the subproject located in or 1 Yes
adjacent to a protected areas/ 2 No
national forests, wilderness
areas, wetlands (simsar), 2 If others (Specify the marks)
biodiversity, critical habitats?
3.8 1 Less than 50 HHs
Coverage Area (Population 2 50 to 100 HHs
Served, HHs) 3 3 More than 100HHs
3.9 1 No
Possibility of Expansion of
2 Yes
Project 2
3.10 1 Vehicular
2 Bicycle
User Access
3 3 Pedestrian
3.11 1 4WD
2 Auto
Parking Facility
3 3 Bicycle
3.12 Land Use Compatibility - Does 1 No
the proposed land use relate to
.. 2 Yes
surrounding land uses and
2
general land use priorities? If others (Specify the marks)
3.13 1 Difficult
Materials Management 2 Easy
2 If others (Specify the marks)
4. Managementof Required Construction Materials
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Materials Easy Difficult Private Government Remarks
Distance (km)
Land Land
Stone
Bricks
Wood
Aggregates
Sand
Rebar
Others if any
(.........)
5. Multi-Site Analysis (Ranking) Format

S.N. !Site Criteria lValue !Site 1 Site 2 !site 3 !site 4 !site 5
3.1 iSite Location 1-4
3.2 Physical Verification 1-4
3.3 iSoil Type 1-3
3.4 [Ferraln 1-4
3.5 Do you think this place safe from any natural 1-2
~isaster/hazards?
3.6 If No, what type of natural disaster may occur 1-3
(multiple answers)
3.7 Is the subproject located in or adjacent to a 1-2
protected areas/ national forests, wilderness
areas, wetlands (simsar), biodiversity, critical
habitats?
3.8 Coverage Area (Population Served, HHs) 1-3
3.9 Possibility of Expansion of Project 1-2
3.10 User Access 1-3
3.11 Parking Facility 1-3
3.12 Land Use Compatibility - Does the proposed 1-2
land use relate to surrounding land uses and
~eneral land use priorities?
3.13 Materials Management 1-2
Other
Iscore Total
lSite Ranking
Comments:
Annex 5: Proposal Template for Market-oriented Public and Community Infrastructure

(English Version)
A. Main concept and idea

Answering the question in summary on
1. What is the main issue to be addressed?
2. Why is the proponent or is the partnership the best organizationto address this? And
3. What are the major results?
B. Situational Analysis
Sector description and present status
C. Brief profile of entity/organization/group/cooperatives (present status), their experience,
roles and responsibilities with regards to the Value Chain
Existing arrangement(production, collection, processing marketing, enabling, service provider as
applicable), including - volume, locations, price determination mechanism, demand and supply and
inward and forward marketing
D. Objectives and description of the investment
Description of the investment in terms of objectives and specific interventions
E. Relevance for VC upgrading in the way it addresses VC specific constraints
Explanationon the relevance of the investments in terms of critical constraints
F. Implementation arrangement and Role and Responsibility of entity/partnership
Description on main implementingpartner and collaborating stakeholders
Implementation arrangement including role and responsibility of collaborating
stakeholders
G. Cost Estimate
Detailed budget with activities and cost schedule
H. Cost Sharing Mechanism
Source of fund (including contribution from programme, applicant entity and municipality if applicable)
I. Implementation Investment Schedule (Timelines)
Implementationand Investment Schedule
J. Expected result
Direct outcomes from the interventionsas compared with VC constraints
Impact on value chain actors including project beneficiaries in terms of enhancementof production,
value addition, marketing, enabling environment and service provision
Catalyzing effect on VC actors including the employment and income generation for project
beneficiaries
Replication potential
K. Sustainability e.g.. how will it be sustained after project intervention stops
Identified risks and risk mitigation measures
Ownership
Technical and economic viability of construction, technology or service
Annex 6: Proposal Template for Market-oriented Public and Community Infrastructure

(Nepali Version)
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•
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Annex 7: Sub Project Proposal Assessment and Approval Procedure
Applicant Organization
Address
Legal status of applicant
Related Value Chain
Proposed Intervention
A. Check list for assessment process
1. Proposal submitted (including design and estimate) of proposed infrastructure
2. Field verification process has been completed
3. Field verification report and Feasibility report has been prepared
4. Proposed investment is likely to address the critical VC constraints
5. Proposed investment is likely to produce significant impact
6. Proposed investment is justified considering the cost-benefit
7. The investments can be sustained (Revenue based operation modality)
8. The proponent entity does have sufficient credentials (experience, integrity,
Competencies and management capacity to implement)
9. Proposed investment has been endorsed by VC actors through MSP
10. The proposal has a catalyzing factor: the amount of investment
(by the applicant, by other value chain actors, by other facilities) that can
be generated by the grant.
11. The investment has replication potential.
12. The proposed infrastructure has detail environment and climate risk assessment
along with possible preventive measures
B. Additional for Public Infrastructures:
13. Public hearing for communicating results of Detail Survey design and cost
estimate to the community and local government for implementation of the
proposed infrastructures sub-projects
14. Formation of User's Committee (UC) and registered in relevant government agencies.
15. Preparation of Operation & Maintenance Plans and Financing System (OMPF/S)
16. Supporting documents Ireports (lEE, Economic & Financial Analysis etc.) as applicable
C. The CIC Team meeting. held on recommends forwarding this
infrastructure sub project proposal to Programme coordinator for approval.
CIC Team Members
Signature
Name:
Position
D. Approved by Programme Coordinator
Signature .
Name Date
. eJ}
~~~d'
~~
I'A
~~~
N. /30
In case of Public and Public Private Infrastructures where Municipalitv co financing exists
C. The CIC Team meeting held on recommends forwarding this
infrastructure sub project proposal to MADC/Municipality for endorsement.
CIC Team Members
Signature
Name:
Designation .
D. The MADC/Municipality committee meeting held on appraises, endorses
and forward this proposal to PIC along with municipality recommendation letter.
Signed on behalf of MADC Name: .
E. The PIC meeting held on recommends this proposal to PC for approval and
contract.
PIC Team Members
Signature
Name:
Designation
17. Letter ensuring co-financing from concerned municipality and beneficiaries too
(cash and Kind) if applicable
18. Proposed infrastructures included in subsequent participatory community planning
process, and in Municipality infrastructure plans
E. Approved by Programme Coordinator

D
Signature .
Name .
Date .
Annex 8: Template for Grant Agreement of Market-oriented Public and

Community Infrastructure Fund
Grant Agreement: (No. MPCIF 1 )
A. Introduction
This Grant Agreement has been made on .. between The Agriculture
Sector Development Programme (hereinafter referred to as "ASDP"), Local government
(hereinafter referred to as "Municipality")
and.........................................................................................
(hereinafter referred to as "Grant
Recipient"). As per this Agreement, ASDP and Municipality will make available fund to the
Grant Recipient under Market-oriented Public and Community Infrastructure Fund for the
purpose of .. (Sub-project name) on the
conditions specified in following articles.
B. Enforcement of this Agreement
This Agreement shall be effective during the period mentioned below:
Agreement Commencement Date: Agreement Completion Date: .
C. Matching Fund Contribution

The total fund approved for this Sub-Project is Rs (in words Rupees
..................................................................................................
). The breakdown of matching
fund contribution by ASDP and Grant Recipient will be as below:
Sub-Project Cost contribution
Contribution from Contribution Percenta Contribution Amount in Words
Amount in -ge
Rs.
ASDP Grant Not to exceed Rupees.....................
only.
Grant Recipient Rupees................................
only.
(PO/UCs)
Municipality Rupees............................
only.
Other collaborating Rupees............................

only.
parties
Detail budget break.downby activities has been given in Table 1 - Grant Application Cost
Table.
D. Sub-Project Purpose
E. Implementation Arrangement
.:. The Grant Recipient shall form a construction, procurement and a monitoring sub-
committeefor implementationand evaluationof sub-projectactivities.
'-.
~.~ su~
lOIfI_eoordln
,
.:. The Grant Recipient shall coordinate with all the stakeholders/collaborating partners and
arrange implement the sub-project as per the timeframe as specified in approved grant
proposal and implementation schedule .
•:. The Grant Recipient shall fully coordinate the construction of civil works and installation of
equipment with Engineer assigned by ASDP/Municipality and changes are to be made (if
needed) as advised by the Engineer .
•:. ASDP will reimburse the grant fund as per actual cost incurred following the mode of
payment under article Ito POs and UCs/ Municipality based on the type of infrastructure .
•:. The Grant Recipient shall ensure proper custody and use of all the cash and non-cash
resources like machineries/equipment, tools and facilities created by. Sub-Project
investment.
.:. The Grant Recipient shall prepare a public display board and put at the visible sub
project site showing duration, sources and uses of fund and other important sub-project
information.
F. Right and Responsibilities
.:. In carrying-out/performing the sub-project activities, the Grant Recipient and the personnel
employed by the Grant Recipient will:
i) Exercise the degree of skill, care, and diligence reasonably expected by ASDP and in
accordance with the agreed Sub-Project implementation schedule.
ii) Comply with all provisions of all statutes, regulations and rules of Government of
Nepal, local bodies or public authorities and any professional codes of conduct or
practice that may be applicable to the Sub-Project.
iii) Observe the ASDP reasonable directives in relation to the Sub-Project.
iv) Comply with reasonable directives from ASDP or its representatives to support achieve
the objectives of Programme gender and social inclusion strategy.
v) Be reasonably available for consultation with the ASDP or its representative during the
terms of this agreement on the conduct and progress of the Sub-Project.
vi) Assist ASDP authorised personnel to verify field and factory activities and collect
Programme monitoring data.
•:. ASDP, Municipality or its representatives and the consultants or service providers
assigned by ASDP shall have the right to monitor the Sub-Project activities and provide
feedback for further improvement.
.:. The Grant Recipient shall make available employees or agents with knowledge of the
programme to respond to questions from ASDP, Municipality or the designated
representative of the Government of Nepal.
.:. The Grant Recipient will give access to ASDP or its representative as well as any service
providers/consultants hired by the Project to the premises or the sites at which the Sub-
Project is being carried out to inspect the progress of the Sub-Project and the equipment,
services and goods acquired following a reasonable notice from ASDP or its
representative (at least 1 days prior to the inspection date).
.:. The Grant Recipient will ensure the implementation of the Sub-Project under satisfactory
performance conditions and make best efforts to achieve the objectives and fulfill all other
obligations as detailed in this Agreement.
.:. The Grant Recipient will be responsible for proper use of grant fund in accordance with
this Agreement as well the MPCIF Guideline in effect. In case the grant fund is, totally or
partially, improperly used and declared ineligible, the recipient will be responsible for
immediate replenishment of the grant account with the respective amount.
.:. The Grant Recipient will promptly notify the ASDP and Municipality of any significant
difficulties encountered or foreseen by the Grant Recipient.
.:. If the Sub-Project performance indicates that the Programme objectives are not likely to
be achieved, are superseded, or may be achieved by another preferred route, the ASDP
will give the Grant Recipient written instructions for improvement within specified time
frame. The recommendations for improvement shall be addressed by the Grant Recipient
within the specified time frame and reported back to ASDP.
The Municipality shall be responsible to:
.:. Facilitate and Provide continuous onsite technical support for effective and timely
implementation of sub project as per the milestonesin coordination with concerned
stakeholders;
.:. Regular Monitoring, contract administration and construction supervision of sub project for
quality assurance and work safety and recommend actions for corrective measures as
required;
.:. Facilitate and ensure enabling environment for programme Engineer and Service Provider
(Consulting firm) in providing technical support for quality construction, supervision and
monitoring to Grant recipients .
•:. Facilitate and support for public hearing events to enhance transparency and good
governance and necessary assistance to solve any contractual dispute and issues
including community conflict if any during implementation .
•:. Facilitate and support for establishing Operation and Maintenance Fund and Ensure
maintenance and sustainable operation of the infrastructures constructed jointly with the
beneficiaries
.:. Prepare bid document and formed a procurement committee as per the Public
Procurement Act to facilitate approval process of tender as required
.:. Review and approve the completed works and sub project (community owned
infrastructures) .c~mpletion report submitted by Grant recipients for final payment to PCO.
•:. Release the part of contribution for the proposed sub-project to grant recipients (UCs,
MMC etc.) bank account to start with, once the necessary preparatory work put in place
for the commencement of implementation .
•:. Recommend PCO for release of Programme contribution fund against the progress as per
the milestones along with duly signed verified copy of valuation report, and other
supporting documents as mentioned above.
•:~ Conduct audit of the sub project expenditure.
G. General Conditions
.:. Funds provided by ASDP under this agreement are to be used by the Grant Recipient
exclusively in support of this sub-project.
.:. The Grant Recipient is not allowed for budget transfer between the budget lines of more
than 5% of approved budget limit in each budget line without prior approval from ASDP.
In no circumstance the total budget limit can be exceeded without written amendment to
this grant agreement.
.:. If, after the completion of the sub-project, there are unspent funds under this Agreement,
the Grant Recipient should not claim to use such unspent amount.
.:. The personnel assigned by the Grant Recipient and the implementing partner for the
operations and management of the Sub-Project shall not be considered as staff members
of ASDP and shall not be entitled to any privilege, immunity, compensation or
reimbursement by ASDP .
•:. The use of the official emblem and name of ASDP on any publication, document or
paper prepared for publicly dissemination is prohibited without prior written approval from
ASDP .
•:. Neither the Grant Recipient nor their personnel shall communicate to any other person or
entity any confidential information made known to them by ASDP in the course of the
performance of their obligations under the terms of this Agreement nor shall they use this
information to private or company advantage. This provision shall continue to exist even
after the expiration or termination of this Agreement.
.:. Neither the Grant recipient nor its personnel shall be allowed to incur any commitment or
expense on behalf of ASDP .
•:. The Grant Agreement shall be governed by the prevailing law, rules and regulations of
Government of Nepal.
.:. Procurement of second-hand equipment is not allowed .
•:. Equipment, machineries, construction materials and service should be procured by
following appropriate procurement procedure. One procurement committee should be
formed and all the procurement activities should be carried out through the decision of
the committee .
•:. For procurement above NPR 20,000 cost estimates should be prepared. Procurement
above threshold limit of NPR 20,000 shall be supported with VAT invoice .
•:. For above NPR. 100,000, procurement should be made by preparing cost estimate and
obtaining quotations (at least 3) from vendors compulsorily maintaining economy, quality,
and transparency .
•:. For any procurement above NPR 500,000, sealed quotations (at least 3) should have
been obtained. Construction contract should be made for any construction work to be
done by contract.
.:. For any procurement above NPR 20,00,000, procurement should be made through
National Level Competitive Bidding (NCB). For any other matters related to procurement,
.:. All the payments above the threshold limit of NPR 5,000 should be made by check
except in the exceptional circumstances where there is practical difficulties in making the
payment by check, in such case a written justification should be attached with the
payment voucher.
.:. The Grant Recipient shall maintain a separate bank account for this sub-project and
properly maintain all books of accounts and supporting documentations showing the
utilization of funds, complying fully with Nepal Accounting Standard (NAS), and all other
documentations and records related to the sub-project.
.:. All books of accounts and supporting documents shall be kept during the sub-project
period and at least for a period of ten years following the completion of the sub-project,
during which period, ASDP or a person designated by Government of Nepal, shall have
the right to review and examine the relevant records.
H. Termination of Agreement
.:. The Agreement will continue to exist until the date specified in Article B of this
agreement unless terminated earlier in following conditions .
•:. ASDP and Municipality shall have the right to terminate this Agreement, by giving written
notice of 15 days to Grant Recipient, if it considers that the continued implementation of
the Agreement is impossible or impractical because of
i. unforeseen causes beyond the control or ASDP, or
ii. in the event of a default or delay on the part of the Grant Recipient.
.:. Similarly, if the Grant Recipient considers that it cannot continue the implementation of
Sub-Project because of unforeseen cause beyond its control, the Grant Recipient shall
submit a written request in advance of 15 days to ASDP to terminate the Agreement. In
such case ASDP can terminate the agreement, if it finds the request is reasonable .
•:. In the event of the termination of Grant Agreement because of the Grant Recipient's non-
compliance or partial compliance with the terms of this Agreement, it will refund to ASDP
any payment already received in respect of activities that have not been performed by
the Grant Recipient to a standard considered acceptable to ASDP .
•:. In the event of termination by ASDP for unforeseen causes beyond its control, ASDP
shall complete all eligible payments, which may be due up to the effective date of
termination.
I. Extension of Agreement
.:. If delays in the implementation of Sub-Project activities are likely because of unforeseen
causes beyond the control of the Grant Recipient, PC can allow up to 15% time
extension of total sub-project period upon request by Grant Recipient in well advance (at
least 15 days ahead) for time extension with full justification .
•:. ASDP shall have the right to extend the duration of this agreement, based on the
existing rules and regulations, if it considers that the justification given by the Grant
Recipient is valid and the likely delays cannot be avoided
J. Reporting Arrangement
.:. The Grant recipient shall submit implementation progress reports as per following
schedule:
a. Periodic Progress Reports - along with running bills
b. Final report after completion of sub-project to PCO as agreed in contract agreement.
.:. Grants recipient shall include all the activities completed as of reporting date, financial
statement (including sources and uses of fund) and social and economic outcome/impact
of sub-project along with the data, model, diagrams, photographs and other related
documents aligned with sub-project implementation schedule.
K. Mode of Payment
.:. Advance as well as Reimbursement Payment made to beneficiaries based on. the type of
infrastructures. In case of reimbursement, it shall be made on the basis of running bills
as per agreed ratio .
•:. Last reimbursement of grant fund shall be made after completion of all sub- project
activities and submission of sub-project completion report .
•:. Fund will be transferred to recipients' bank account.
.:. Implementation of the fund reimbursement will depend on the:
a. Satisfactory performance as per sub-project implementation milestones.
b. Submission of implementation Progress report
c. Field verification report by authorized ASDP staff.
L. Safety Measures
Contractor party/Construction sub-committee, as the case may, be shall assume the
responsibility for implementing and monitoring all Health & Safety (EHS) precautions,
measures and treatments related to the performance of the work. It shall make of
arrangements of safety measures like safety aid, work related medical facility etc.
The ASDP will not be held responsible for any accident illness, loss, damage or disability
which may occur during the implementation of Sub-Project.
M.SeWeme~ ~ D~pu~s
Any dispute between ASDP and the Grant Recipient arising out of the interpretation or
execution of this Agreement shall be settled by mutual understanding. MADC and Municipality
can facilitate to settle the disputes
If ASDP and the Grant Recipient are unable to reach agreement on any question in dispute
or on a mode of settlement other than arbitration, either party shall have the right to request
arbitration in accordance with the existing rule of Government of Nepal. ASDP and the Grant
Recipient agree to be bound by any arbitration award rendered in accordance with the above,
as the final adjudication of any such dispute.
N. Force Majeure
Neither the Grant recipient nor the ASDP will be responsible to the other party for delay or
failure in performance of any of the obligations imposed by this Agreement when such failure
is occasioned by unforeseen disasters, natural calamities, civil unrest like riot, war, strikes,
labor disturbance, court order or Government interference, natural genetic variations of any
living matters or by clause of like or unlike nature beyond the reasonable control and without
the fault or negligence of either of the Grant Recipient or the ASDP.
Signed on behalf of the Agriculture Sector Development Programme:

Signature: .
Name:
Programme Coordinator
Signed for and on behalf oL. u ••• Municipality (if applicable)

Signature: .
Name: Designation: .
Signed for and on behalf of Beneficiary

Signature: .
Name: Designation: .
Organisation:
Contact No
Witnesses:
1. Name Signature .
Address: .
2. Name Signature .
Address: .
3.Name Signature .
Address: .
------------------------_------------------------------------------------------------------------------
Detailed Banking instructions of Grant Recipient:
Account name: ; Account number:
Bank address:
Annex 9: ToR for Consultancy Services Firm for Feasibility Study, Survey,
Design, and Cost Estimation of Market linked Infrastructuresand Roads (sample)
1. OBJECTIVES OF THE CONSULTANCY SERVICSES
The main objective of the consultancy services is to support the participating municipalities
in implementing the public infrastructure development, particularly for village/link roads, trail
bridges/trails, irrigation works, market centres and water supply schemes. The consultant
shall undertake sub project preparation, appraisal, implementation and supervision by
assisting them to plan, conduct feasibility, survey, deign, cost estimate preparation and
supervision of the rural road sub-projects to be implemented.The following infrastructure are
envisaged to be under the public infrastructurecomponent:
• Feasibility study of around 90 Km of road out of which design/supervisionof around 60
Km.
• Market Centres: 4 Nos.
• Irrigation schemes: 100 Ha (numerous)
• Trail Bridges: Dependent upon demand
Specific objective
The specific objectives of the consultancy services are as follows:
Part A: Project scoping, feasibility, design and cost estimation
(i) Select the link roads, trail bridges/trails, irrigation works, market centres and water
supply schemes, based on the agreed selection criteria somewhat similar to the sample
given above and conduct feasibility study of those roads for implementation.
(ii) To ensure that the roads so selected is according to the approach and modalities
being followed by DoLIDAR for the construction/rehabilitation/maintenanceof roads.
(iii) To conduct feasibility of the roads, trail bridges/trails, irrigation works, market centres
and water supply schemes to be subsequentlytaken up for detailed design.
(iv) To ensure that sound social, environmental and up-grading of Rural Road Practices in
improvement and maintenance work are followed as per GoN acts, regulation and the
IFAD guidelines.
(v) To prepare designs, drawings, cost estimates and bid documents based on GoN
standard bidding documents, or other document as agreed with IFAD, with necessary
amendments for the construction/rehabilitation/maintenanceof the selected roads, trail
bridges/trails, irrigation works, market centres and water supply schemes. Design should
be appropriate.and cost effective in adherence with the technical guidelines as far as
practicable, the designs should be specifically tailored to the technical and mechanical
capability of local contractors and road user groups.
(vi) To provide other technical and managerial support so as to enhance the urban/rural
municipalities' capability to plan, implement and maintain the infrastructure.
Part B: Supervisionof works
ik 9
(i) To ensure quality of the works implemented under the project with adequate field
supervision.
(ii) To ensure sound social and environmental practices in the works implemented under the
project.
(iii) To ensure timely completion of the works implemented under the project.
(iv) To prepare quality assurance plan and to carry out the works according to the plan.
(v) To verify and certify the works done through the contractors and users' groups for the
payment.
(vi) To prepare the work completion report.
2. DETAILED SCOPE OF THE CONSULTANCY SERVICES

2.1 General
The Consultant shall work under the management of the Urban/Rural municipalities. The
Project Coordination Office (PCO) shall be responsible for coordinating the activities. The
Consultant shall carry out the feasibility, design, cost estimate & supervision of the
construction/rehabilitation/maintenance works of the rural roads, trail bridges/trails, irrigation
works, market centres and water supply schemes including preconstructionactivities such as
sub-project appraisal and screening. The various activities of the services to be carried out
are described below. The Consultant shall however ensure that the services carried out are
fully adequate to attain the objectives set out in section 2.0 of these Terms of reference.
The Consultant's duties shall include but not necessarily be limited to:
Part A:
~ preparatory activities such as sub project preparation, screening and other related
activities.
~ to ensure that the project preparation is as according to the agreed approach and
modalities.
~ To conduct feasibility of roads, trail bridges/trails, irrigation works, market centres and
water supply schemes to be subsequentlytaken up for detailed design.
~ to ensure the application of sound social, environmental and up grading of Rural Road
practices in the maintenance and improvement works as per GoN acts regulation, the
IFAD guidelines.
~ Carry out survey, prepare the designs, drawings, cost estimates and bid documents.
Design should be appropriate and cost effective in adherence with the technical
guidelines as _fa_ras practicable. The design should be climate resilient in line with the
"Climate Resilient Planning - A tool for Long-term Climate Adaptation" by National
Planning Commission, Nepal and other applicable guidelines. The designs should be
specifically tailored to the technical and mechanical capability of local contractors and
road user groups.
~ provide technical and managerial expertise to the Urban/Rural municipalities so as to
enhance municipalities' capability to efficiently & successfully plan, implement and
maintain the infrastructure.
~~~
~2 s~
c-: .~
,,*,ramme CooromalO
~ review the existing GoNIIFAD bidding documents for the above works as required,
making suitable for the local condition, preparing and producing bidding documents for
procurement of the works (small contract) on the basis of National Competitive Bidding
(NCB), or other document as agreed with IFAD, with necessary amendments, and
prepare detailed schedule of works to be completed.
~ assist the municipalities/PCa on all the accommodation works, utilities relocation and
encroachment made by public within the Right of Way.
~ assist the municipalities in all technical matters and procurement processing for the
contract.
~ provide necessary training to the contractors and users groups for rural road works.
Adopt and cause to adopt Labour-based construction techniques during execution of the
civil works, as far as possible.
Part B:
~ Assist the municipalities in Bid invitation, Bid evaluation and awarding the contracts for
the proposed civil works.
~ Ensure that all the works are carried out in accordance with the designs, drawings and
specification.
~ Ensure that the contractors prepare the Quality Assurance Plan (QAP) before start of
the work activities and follow the plan.
~ Maintain a permanent record of all measurements of works completed and results of
test carried out for monitoring the quality of civil works.
~ Regularly inspect and check by testing wherever required the civil works and ensure
that they are carried out according to the schedule, specifications and drawings and
specified standards of quality are to meet the desired standard quality of the materials
and workmanship.
~ Checking the bill of the works submitted by the contractors and recommends them for
payments by the municipalities with the certification that quality of works executed by
the contractor are satisfactory.
~ Certify the completion of the works.
~ Identify and recommend the municipalities about the equipment/tools needed for the
maintenance works after the construction.
~ Preparing the variation orders and guide the municipalities/PCa for negotiating with the
contractor for the implementation of such changes. If such changes involve additional
cost, prepare .n~cessary documents for approval by the municipalities.
~ Maintain all the records and reports according to the municipalities/PCa and/or
ASDP/IFAD requirements.
~ Assist the municipalities/PCa on all the accommodation works, utilities relocation and
encroachment made by public within the Right of Way of each road in the course of
the implementation of planned works.
~ Support user's group by providing necessary information regarding quantity and quality
of works and financial transactions.
);. Discharge the Consultant's duties in the administration and supervision of the whole
scope of works.
3. TEAM COMPOSITION & QUALIFICATION REQUIREMENTS FOR THE KEY EXPERTS
Team Composition
It is estimated that about 146 person-months of national experts will be needed to complete
the assigned tasks. The breakdown of the estimated inputs (person months) of experts is
given in the following table.
Experts
S.N Position Feasibility & Detailed Supervision Total
Engineering Design(p-m) (p-m) (p-m)
1 Highway/Civil Engineer (1 36
No.)
2 Inspector of Works (3 Nos.) 108
3 Surveyor (1 No.) 36
4 Other experts (unallocated) 8.0 2.0 10.0
Total A 146
(i) Highway/Civil Engineer
The Highway/Civil Engineers shall have at least bachelor degree in highway or civil
engineering or equivalent and shall have minimum seven (7) years' of experience in road
and infrastructure works.
(ii) Inspector of Work
The Inspector of Works shall have diploma or equivalent in civil engineering and must have
five (5) years' experience in road and infrastructure works.
(iii) Surveyor
The Surveyor shall have diploma or equivalent in surveying /civil engineering and must
have experience in surveying of road and infrastructure works.
(iv) Other Experts
Other experts will not be evaluated, and the proposed expert shall have experience in their
relevant field of expertise in which they will be proposed (e. g., trail bridge, structural
engineer, hydrologist, geologist etc.).
4. REPORTING REQUIREMENTS AND TIME SCHEDULE FOR DELIVERABLEES

The Consultant shall submit the following reports in the standard formats, to be agreed
between municipalities/PCOand the consultant, as provisioned below:
S. Description of Reports Dates of Submission
No.
1 Feasibility, Design and Procurement
1.1 Sub-project Screening report on technical, As required
environmental and economic
1.2 Feasibility Report As required
1.3 Sub-project Design Report, Drawing & Cost As required ~
, ~".~ l
..: .,.._., ~'
f.-:
~~~
S. Description of Reports Dates of Submission

No.
Estimates Reports
1.4 Field based Environmental Management Plan As required
(EMP) Report
1.5 Bid Documents As required
2 Construction Supervision and Quality of
Works
2.1 Quality Assurance Plan Within 30 days from the Contractor's
Mobilization.
2.2 Reporting on missing quantities and As required
preparation of VOs
2.3 Field supervision report based on Daily Diary First week of next month
2.4 Reports on material testing First week of next month
3 Monitoring and Reporting
3.1 Monthly Progress Report First week of next month
3.2 Implementation Progress Report (IPR) on Within 15 days from the end of
trimester basis each trimester
3.3 Environmental Compliance Monitoring Report First week of next month
3.4 Annual Progress Report August 15 of each year
3.5 Contract Completion Report Within one month after completion
of contract
3.6 Other relevant reports if demanded by As required
municipalities/PCOfrom time to time
Note: E/ectroniccopy of each report shall a/so have to be submitted
5. CLIENT'S INPUT AND COUNTERPART PERSONNEL
There will be three offices, preferably closer to the road corridor mobile team office of
ASDOP, headed by a civil engineer along the three road corridors for implementation of
other infrastructure works under the project. In addition to working with the municipalities,
the consultant also needs to intimate the technical personnel in those offices. The cost of
all the facilities required by the consultant to carry out the assignment, included in the TOR,
shall be included in the consultant's financial proposal.
6. DURATION OF CONSULTANT'S SERVICE
The duration of the' Consulting services shall be for approximately 58 (fifty-eight) months.
The services shall start tentatively from March 2018 and continue till December 2022.
Annex 10: Template for Public Display Board
I
JlIFAD
Agriculture Sector Development Programme Investing in rural people
Name of Sub- Project: .__._.._. ...__.....

_
Address: ._ __._ _.._ .
Infrastructure
Total Budget
ASDP Grant Municipality UC/Groupl

(%) (%) Cooperative (%)
Sub-Project Start date Sub-Project end date
Direct Beneficiaries (HH) Indirect Beneficiaries (HH) .

Contractor I
User's Committee
Map/Image of the
Infrastructure
Programme Area
Road-Corridors
_ Surkhet· Jumle
- Surkhet· Oallekh
- Chhlnchu - Jajar1<ot
_ Salyan - Rukum
_ Mid-Hills
Agriculture Sector Development Programme (ASDP)
• PCO, B.ire!,dranagar, Surkhet

083-523296
~
IiiiI Liaison Office, Hariharbhawan, Lalitpur
lisaisonoffice@asdp.gov.np
01·5010026
.AI PCU, Bagchaur, Salyan .AI PCU, Khalanga, Jajarkot

~ unitsalyan@asdp.gov.np ~ unitjajarkot@asdp.gov.np
... 089-430331 ... 088·412019

MPCIF Guideline 1

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MPCIF Guideline 1

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Market-oriented Public and Community Infrastructure Fund Guidelines ASDP

Market Oriented Public and Community

Programme Coordination Office (PCO)

Loan No. 2000002118 Grant No.2000002117

Agriculture Sector· Development Programme

MARKET-ORIENTED PUBLIC AND COMMUNITY

INFRASTRUCTURE FUND (MPCIF) GUIDELINES

First Amendment by BS 2077.03.26

Steering Committee (PSC) constituted under Ministry of Agriculture and Livestock

Development (MoALD) of Government of Nepal and the International Fund for

revisions on various template annexes presented in this document.

1. Market-oriented Public and Community Infrastructure Fund (MPCIF) 1

1.2 Scope of Guidelines 1

1.3 Purpose of the MPCIF Guidelines 2

1.4 Enforcement and Effectiveness of Guidelines 2

2. Terms used in MPCIF Guidelines 2

2.1 Producer Organizations (POs) 2

2.2 Service Providers (SP) 2

2.3 Users' Committee (UCs) 3

2.4 Market Management Committee (MMC) 3

2.5 Municipality Agriculture Development Committee (MADC) 3

2.6 PCU Team 3

2.7 Value Chain Team 4

2.8 Field Verification Team (FV Team) 4

2.9 Corridor level Investment Committee (CIC) 5

2.10 PCO level Investment Committee (PIC) 5

4. Grant Limit and Co-financing 6

6. Beneficiaries and eligibility criteria 8

7. Grant Approval and Implementation Process under MPCIF 9

7.1 Call for Infrastructure Application (IA) 11

7.2 Desk Review and Initial Screening 11

7.3 Field Verification 11

7.5 Preparation of Detail Survey, Design and Cost Estimate of Selected

7.6 Facilitate for Proposal Developmentand Submission 12

7.7 Evaluation and Appraisal 13

7.8 Incorporation in Municipal Annual Plan and Allocation of Fund 14

7.9 Appraisal and Recommendation 14

7.10 Approval and Grant Agreement 14

9. Management & Administration 16

9.1 Modification of Grant Agreement 16

9.2 Technical support for construction 16

9.3 Project Implementationand Procurementof materials and contractor 17

9.5 Operation and MaintenanceArrangement 17

9.7 Transparency,Good Governance and Audit Provisions 17

9.8 Restriction to use of sub-project fund 18

10. Monitoring, Evaluation and Reporting 18

11. Sub-Project Completion and Reporting Arrangement 19

Table 1. List of Potential Community based and Public Infrastructures 6

1. Market-orientedPublic and Community Infrastructure Fund (MPCIF)

1.2 Scope of Guidelines

This guideline is an elaboration of programme design report (PDR) and programme

1Marketowned by group, cooperativesand agri-businesseswill be treated as 'private'and have to contribute 15%

1.3 Purpose of the MPCIF Guidelines

The purposes of the Guidelines are:

1.4 Enforcement and Effectiveness of Guidelines

This guideline is a living document to facilitate the implementation of activities on the

2. Terms used in MPCIF Guidelines

2.1 Producer Organizations (POs)

2.2 Service Providers (SP)

infrastructure sub-project preparation, appraisal, screening and implementation such as

2.3 Users' Committee (UCs)

Users committee (UC) is a committee involving representatives among the direct

2.4 Market Management Committee (MMC)

MMC comprise representatives from producer organizations, traders, local