SCOPE OF SERVICES

B1 Organizational Capacity Development for Road Asset Management

This consultancy will be undertaken within the capacity development framework at three critical levels:

Institutional or sector level, Organizational level, and Individual or staff skill level. The relationship of this task with other related tasks is shown in Table 1 for each of these levels.

B1 (a) Advisory Services for Institutional Structure Refinement

MPWT has a defined organizational structure, though it may require modifications for the Ministry to perform its road asset management function. For an effective outcome, the work may include the following tasks and others as required:

(a) A review of the vision, mission, roles, functions and organization of the units and departments in the MPWT and their relationship with the MEF supporting the “Road Asset Management” function with due consideration to the provisions of the new draft

National Transport Policies. This will include a review of administrative procedures used for planning, budgeting, management and implementation of road maintenance works;

(b) Harmonization of the various pieces of policy, legislation, regulations that are currently in existence as well as those that are under development including efforts funded by various donors to achieve a coherent road sector asset management policy that defines the goals, operational and policy instruments, rules and regulations governing the various institutions and players in the sector. This would involve identifying the harmonization required and providing outline terms of reference for the revision or drafting of the required legislation.

(c) Development of alternative proposals for refinements to the MPWT structure based on best practices. Discussion of the proposed refinements with MPWT and agreement on preferred refinements in consultation with IDA, ADB and AusAID;

(d) Detailed identification of the changes required to introduce the refinements, the impact on stakeholders as a result of these changes, and the strategies to minimize the impact;

(e) Review/development of guidelines for implementation and operation of the road asset management function within the MPWT under the proposed organizational framework.

This will include the functions of each department, and procedures for planning, budgeting, and management for implementation for road maintenance works.

It is expected that the consultants will use a highly participatory process. The output will include:

(a) A corporate plan with a defined vision and goal, a mission statement and business plan for MPWT and relevant departments with reference to road asset management, including measurable results targets for each outcome for next five years (through to 2015);

(b) Recommendations on the organization and staffing in MPWT and relevant departments to improve the efficiency and effectiveness of the organization in delivering road asset management services within a results-oriented framework.

(c) An updated organization plan for the MPWT which would improve the effectiveness of providing road asset management services and make efficient use of staff resources, and an implementation plan for undertaking the reorganization.

B1 (b) Upgraded Information Architecture

Information and Communication technology Plan for the Transport Sector. The consultant will complete a thorough stocktaking of information and communication technology (ICT) assets, equipment needs, skills requirements, and capacity deficits in MPWT, with particular focus on GDPW and GDAP. Based on the final findings, the consultant will develop a comprehensive ICT Plan for the entire sector that will enable the sector institutions that conforms to the e-government goal of the national government. This comprehensive plan will, inter alia, provide for

(a) Improvement of an existing ICT Master Plan - The consultant will undertake a thorough e-readiness exercise from an organizational perspective, addressing the following issues

• Coverage – of departments, divisions and individuals with ICT connections, in existence and requirements to meet the sector vision;

• Problem areas – cabling, routers, software, electrical, viruses, etc.;

• Cabling issues – use of fibre optic cables in place of existing cables;

• Responsibilities – who is currently managing and/or maintaining the existing ICT network and which organization should be;

• Inventory of computers and printers – numbers, age, make, condition, operating systems, installed software, virus checking;

• Other ICT equipment, e.g. fax machines, telephone lines, PABX, line connections, legitimate software, mobile phones;

• Survey of capabilities: mobile phones, computer software, internet, email; and

• Internet and mobile phone coverage in Phnom Penh, provinces and likely vendors/suppliers of the services.

(b) Make an improvement to an existing MPWT ICT Master Plan and the design and specification of an ICT system architecture supporting GDPW and GDAP;

(c) Review and recommend improvements to the structure of the IT division including the roles, responsibilities, staff qualifications, job descriptions, etc.;

(d) Assist MPWT with the development of required decrees pertaining to ICT services within the total organization. The projection of the ICT capabilities of the Provincial MPWT offices will be considered by including a group of four provinces in the analysis and master plan;

(e) Detailed procurement plan, technical specifications and preparation of bidding documents for the procurement of ICT equipment (to be financed by both RAMP Credit proceeds and cofinancing partners), within the available project budget and in accordance with the

procurement guidelines of World Bank. Depending on the identified needs and available budget, the four Provincial offices mentioned above are to be included here; and

(f) Design a program of technology support and training for ongoing support of the new ICT systems, including detailing of budget provisions.

B1 I Improved Business Processes at the Organizational Level.

The consultant will assist MPWT to design and install:

(a) Management Information System (MIS): The consultant will review the management information needs of the GDPW and GDAP and develop a business case for the selection and implementation of a Management Information System (MIS) under the Project. To the extent feasible, the MIS should be based on commercially available software, customized to MPWT requirements, and should require minimal adaptation. In particular, the MIS should be compatible with the Financial Management System (FMS).

The functionality of the MIS should include at least: i) Personnel records; ii) Document filing and retrieval; iii) Plant and facilities records; and iv) Correspondence and meeting management. Under the duration of these services, the MIS should be piloted, finalized, installed and brought to operational status in GDPW and GDAP.

(b) Financial Management: The consultant will review the financial management processes and systems being used in the MPWT and develop a plan for improvement of the FM processes. Based on these reviews, in line with the MEF Public Financial Management Reform Program, the consultant will recommend upgrading or replacement of the financial management software application for application to the whole of MPWT, tailored to the needs of each user entity. The application should address the accounting, budgeting, transactional, and financial reporting needs, as well as procurement needs of the GDPW and GDAP. These should include for example, Accounts Payable and Project Monitoring modules, reporting of contract commitment, budget commitment and balances with linkages to actual payments in the accounting system. Additionally, the software should address issues of integration with other applications, ease of upgrading, and scalability to accommodate reasonable upward adjustments in terms of volume and complexity in the future. The tasks in this component include design and installation, user licensing, user manuals, piloting, troubleshooting, reasonable performance guaranties and servicing for up to 6 months to address and fix errors, faults, and user issues. The task also includes training relevant agency staff in using the application as noted below.

(c) Post-qualification of Contractors and Selection of Consultants Evaluations: The consultant will design a training module and train the MPWT staff, procurement and technical in the evaluation of transport and road contractors and consultants that can be used to review the qualifications and experience of contractors and firms. The purpose is to have a process of evaluation which is informed, objective, standardized and transparent. The staff will be versed in assessing the detailed data on company legal registration, financial capacity, project experience, key staff capacity for each contract bid/selection.

(d) Project/Contract Management System: The consultant will adapt or customize appropriate commercially available contract management software to produce a simple application to facilitate the management and monitoring of all types of contracts undertaken by the department by type, size, and/or length of contract. The system should have the capabilities of having a current inventory of the ongoing contracts financed under each Credit/Program. The tasks in this component include simulation of key transaction and management functions in typical construction contracts, software selection and adaptation, production of a user manual, and licensing. The functions will include but not necessarily be limited to:

• Record keeping

• Issuance of contractual correspondence (site instructions, minutes, letters, etc.)

• Contract variations and addenda

• Progress planning and reporting (S-curve, gantt charts, staffing and equipment schedules)

• Cost monitoring and estimation.

Additionally, the consultant will undertake testing and piloting in conjunction with the RAMP Civil Works Supervision consultants, and provide on-site servicing for at least three months to identify and address user and technical errors.

B1 (d) Training and Improved Human Resource Management and Development Processes

The consultant will assist the GDPW and GDAP to strengthen the management of human resources in producing a comprehensive Human Resource Plan comprising: (i) a Staffing Plan, (ii) Revising the

current HR Development Plan, and (iii) Developing a HR Performance Monitoring system. The delivery of the multi-year training program under the HR Development Plan is financed separately and is not within the scope of this consultancy.

(a) Staffing Plan: The Staffing Plan shall be results-based, and show direct links between outcomes, specific organizational deliverables/outputs, annual HR work plan, and requisite staff levels and qualifications. The Staffing Plan should also define specific jobs by description including technical and other qualifications. Based on this objective assessment of staffing needs, the Plan should map current staff, recommend additional recruitment, and propose appropriate rationalization or relocation measures where necessary.

(b) Human Resource Development Plan: The HRD Plan shall comprise:

i. Needs Assessment: Undertake GDPW and GDAP training needs assessments with respect to:

• Technical learning needs assessment: review of learning gaps and needs in road construction, maintenance engineering, and automated applications in road management and transport safety;

• Corporate learning needs assessment: review of learning gaps and needs in procurement, financial management, project management, safeguards issues, communications, leadership, among others;

• ICT Needs Assessment – review existing ‘e-readiness’ assessments from a staff skills perspective, including a detailed review of IT awareness, specific computing and technical skills.

ii. Identification and Design of Training Program –

• Identify core training modules based on the Needs Assessment;

• Identify qualified providers including existing local training institutions;

• Develop or procure new training modules where necessary;

• Refine / develop current GDPW Multi-year Training Plan with budget, for the RAMP Project: including i) justification of learning choices within a constrained budget scenario, ii) new training content development, iii) selection of training providers and knowledge partners, and iv) long term impact evaluation.

iii. Establish a Centre for e-Learning, Help Desk and IT management centre. This will form the hub of ICT in the MPWT. The staff of the center would have capabilities to provide regular and appropriate training starting with Ministry staff in Phnom Penh and the four pilot provinces.

iv. Design and deliver training on each business application developed under the services, and achieve an adequate level of competency in the agency staff to provide sustainable operation of the applications. The consultant will design training materials for each of the applications, consult with the department in relevant staff to be trained, deliver sufficient training on each application in Phnom Penh to achieve a sustainable level of competency. This refers to a one-time training exercise essentially to hand over user licenses to the department staff. On-going training modules and delivery should be incorporated in the HR Development Plan to ensure continuity of learning and optimal use of the new tools and applications.

(c) Staff Performance Monitoring System. MPWT is in the process of developing a Merit Based Performance Incentive program. The consultant will prepare a staff performance monitoring framework to track staff performance at various levels in GDPW and GDAP.

The SPMS shall be linked to the organizational outcomes and outputs, as formally agreed with major stakeholders. The consultant shall use the set of indicators developed by the MPWT in collaboration with development partners, Activities in this task include:

i. Review existing formats and indicators used by development partners in evaluation of training programs and staff performance;

ii. Finalize a set of organizational and staff performance indicators for each entity;

iii. Assist in collection and reporting of baseline data; and

iv. Assist each entity to institutionalize performance monitoring on an ongoing basis.

B 3 Private Sector Development

The overall objective of this component is to foster the growth and operational capacity development of Cambodia’s domestic road sector contracting and consulting service industry. The consultant will set up a program for strengthening the road construction and consulting industries. The consultant will

develop a strategy for implementing and monitoring an action plan for the strengthening of the local construction and consulting industry in the road sector.

The specific tasks are discussed below under three thematic categories.

Task 1: Industry Practices and Sustainable Financing.

The consultant will liaise with MPWT, and a representative group of road sector service providers to:

(a) Review and analyze working and commercial practices, and identify and evaluate the key issues and challenges facing domestic firms in the road sector;

(b) Identify and recommend measures to strengthen the commercial practices and operations of domestic firms, utilizing where appropriate best practice recommendations from comparable countries, and recommend an implementation plan for the recommendations;

(c) Analyze financing constraints faced by the industry, liaise with central government departments (finance, banking) to devise solutions for improving access to financing (such as guarantees, assistance to small-medium enterprises (SME), etc.); formulate a set of financing options and draft instruments, discuss options at a workshop with MPWT and industry participants and reach consensus on implementation of the most viable financing options.

Task 2: Industry Association and Capacity Development.

The consultant will discuss with the government and industry participants options regarding appropriate industry associations, and will:

(a) Review the status of any existing association and develop the rules, structure, and terms for an appropriate industry association that is best suited to improve the capacity of the domestic industry and the participation of domestic firms;

(b) Conduct, if appropriate, an industry workshop to discuss and reach consensus on appropriate rules, structure, and functions of a revised contracting and consultancy industry association;

(c) Agree with industry participants on key performance and capacity indicators, collect baseline information and data on these mutually agreed upon indicators, and set up a road sector industry performance monitoring mechanism so that MPWT can update such information and to measure impact of industry development and capacity development of participants in the industry;

(d) Reach consensus with industry participants regarding training needs and design a learning agenda for staff of industry firms. Specific areas will include training in project management, contract management, financial management, overall progress monitoring and reporting, quality management systems and quality assurance processes. The consultant will assist in ensuring that these findings are implemented as part of routine work practices.

(e) Identify local institutions (such as Universities other private education providers) who can develop training material and deliver training on an ongoing basis to the local consultants and contractors and possibly the staff of MPWT.

(f) Propose possible twinning and international exchange programs with similar international consulting and contracting organisations. This information can be sourced from organisations such as Road Engineering Association of Asia and Australia (REAAA), national contractor associations etc. Potential exchange could be with Malaysia, Thailand, India, China, Vietnam etc.

Task 3: Framework for Divesture of MPWT Force Account Units.

With information provided and in full consultation and agreement with MPWT, the consultant will analyze the current state of road sector force account units in order to determine a strategic approach for divesting of physical assets and restructuring of human resource requirements. Specifically, the assignment will:

(a) Evaluate the staffing size of all force account units and asses the budgetary implications of current staffing;

(b) Inventory of all physical assets (heavy equipment, vehicles, technical tools) and estimated values for registration in an asset database;

(c) Assist MPWT in the development of draft legal documents for divestiture of force account units;

(d) Evaluate the ongoing divestiture of force account units, if any;

(e) Assist MPWT starting or continue improvement of the operation of divested units as commercially independent road maintenance companies;

(f) Develop a time table, which would follow the currently applied RGC/MEF’s procedure for auction of assets;

(g) Develop a strategy, timeline, and procedural requirements for downsizing of labor, including options for voluntary buy-out severance packages pay and/or retraining of staff, as appropriate;

(i) Prepare and propose an action plan for divesting at least 2 – 3 of the existing MPWT force account units and more units if satisfied outputs are created

Harmonization Approach. This assistance will be provided within the general framework of the international agreements on enhancing the effectiveness of aid, such as the Paris 2005, Marrakesh 2004 and Rome 2003 agreements under the United Nations program, through:

(a) Ownership (led by the Ministry);

(b) Alignment (of the government and other development assistance on capacity development in a common framework);

(c) Harmonization and simplification (for each process, rationalizing existing systems into one common system);

(d) Managing for results (defining a results-oriented framework focusing on measured outcomes); and

(e) Mutual accountability (periodic review of progress and results).

The consultant therefore is expected to adopt an approach which is highly participatory and client-led, conducted within the established framework, aimed at practical institutional systems, and is strongly results-oriented.