G Conditions and Covenants 22 Most of the loan covenants 21 of 23 were complied

G conditions and covenants 22 most of the loan

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relations consultant (PRC), and a resettlement nongovernment organization. G. Conditions and Covenants 22. Most of the loan covenants (21 of 23) were complied with. One covenant related to the award of a sewerage network contract in Indore did not remain applicable as the work was undertaken using JNNURM funds. The participating corporations have yet to comply fully with the covenant regarding financial reforms agreed in the FIAP. Although the metering of industrial, institutional, and bulk domestic consumers is complete, the introduction of a progressive block rate water tariff for individual domestic water consumers, as required by the loan covenants, was not achieved. Commercial establishments are charged a flat rate. Property tax reforms have been partly complied with. Audited project financial statements along with a management letter were submitted by the UADD till FY2014. Compliance with the audit observations in both the report and management letter is an ongoing process within the extant government system. All four municipal corporations have prepared their entity annual financial statements till FY2014 under the accrual-based, double-entry accounting system. The status of compliance with loan covenants is in Appendix 7. H. Consultant Recruitment and Procurement 23. Consultants were engaged in accordance with ADB's Guidelines on the Use of Consultants (1999, as amended from time to time) and other arrangements satisfactory to ADB for engaging domestic consultants. An international consulting firm was engaged in 2005 as the PMC to support the project implementation, management, and monitoring. The PMC comprised international and domestic experts. Two national consulting firms were engaged as the DSC, one for Indore in the east and another for Bhopal, Jabalpur, and Gwalior in the west. The DSCs supported the project city PIUs design, implementation, and supervision activities; contract management; and the preparation and execution of the MAPPs. These project consultants were fielded within 3 months of loan effectiveness, with the support of the capacity-building TA consultants. A PRC was appointed to deal with public relations and awareness, and another consultancy firm engaged for project components ’ BME in the project cities. All consultants were appointed fol lowing ADB’s quality -based selection procedures. The firms appointed under the original loan continued to provide services under the supplementary loan throughout the extended project implementation period. 24. ADB’s local and international competitive bidding procedures were followed to procure civil works contracts. Standard specifications for civil works using national codes, practices, and guidelines were compiled and incorporated into bid documents. This facilitated the standardization of project works and quality control. Initial bid failures due to the reasons stated in para. 17, were resolved through contractor outreach, contract repackaging, changing the threshold for international competitive bidding contracts to $10.0 million, and updating engineer’s estimates based on market rates.
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