In the framework of German Financial Cooperation, support is provided to HMG/N's Ministry of Health/Department of Health Services (DHS) for the rehabilitation/extension of health facilities in various districts in Nepal and the provision of medical equipment. The objective of this District Health Project (make link) (the Project) is the improvement of the health status of the population in the project districts. The project is implemented in cooperation with the Health Sector Support Programme (HSSP) of GTZ.

Due to the current political situation, the Project will be implemented in two phases:

• Phase I: rehabilitation/extension of hospitals, PHCCs and health posts in Bardiya and Dhading, plus Bheri Zonal Hospital in Nepalgunj, together with delivery of equipment.
• Phase II: rehabilitation/extension of hospitals, PHCCs and health posts in Doti and Achham, together with delivery of equipment.

Each phase comprises 2 components, viz. component A - investments of greater volume (hospitals and PHCCs) and component B - investments of smaller value (health posts). The anticipated costs of the project are summarized in Annex - 1 by type of investment.

The project-executing agency of the District Health Project is HMG/N's Ministry of Health (MoH), and within the Ministry the Department of Health Services (DHS). The DHS herewith charges the TDF with certain functions which normally are executed by DHS (see Minutes of Meeting dated May 28, 2002) with the objectives to take advantage of the experience of TDF gained in discharging duties for the Town Development Programme, financed by German Financial Contribution, and of the availability in TDF of established procedures and standardized bidding/tendering and contract documents, proven in the same programme. DHS will nominate a Project Counterpart with authority to reach decisions on its behalf, as and when necessary, and to be a direct contact person for TDF.

For all construction activities related to the hospitals and PHCCs under phase I of the Project, TDF will be charged with

• tendering and selection of local consultants for design/detailed engineering and for works supervision
• monitoring of the local consultants' performance
• tendering and selection of the contractors
• monitoring of quality of workmanship and material as well as physical and financial progress under the awarded contracts
  

The works encompass the rehabilitation/extension of the following six health facilities:

• Bheri Zonal Hospital
• Sorahawa PHCC
• Rajapur PHCC
• Bardiya District Hospital
• Dhading District Hospital
• Gajuri PHCC

The detailed tasks to be performed by TDF on the basis of its established procedures and available standardized bidding/tendering and contract documents are:

· Relating to engagement of local consultants for design/detailed engineering°°:

• preparation of ToR and bidding documents
• submission of ToR to the International Consultant (GITEC) for approval
• tendering and evaluation of bids
• submission of award proposal with evaluation report to KfW + GITEC for approval
• preparation and negotiation of consulting contract
• submission of consulting contract to KfW + GITEC for approval (in case of material deviation from earlier approvals only)
• signing of contract
• acceptance of draft and final design and engineering reports (submission of draft design report to DHS, GITEC and KfW for approval, submission of draft engineering report to GITEC for approval)

· Relating to engagement and monitoring of contractors:

• compilation of tender documents, considering appropriate packaging of works
• publishing of tenders for construction works
• evaluation of tenders
• submission of award proposals with evaluation report to KfW + GITEC for approval
• preparation and negotiation of construction works contracts
• submission of construction works contracts to KfW + GITEC for approval (in case of material deviation from earlier approvals only)
• signing of contracts
• acceptance of works completed by contractors and preparation of final implementation reports (with supervision consultant and GITEC)

· Relating to engagement of local consultants for supervision:

• depending on performance of design consultant, decision whether services are continued or not. If negative, see above for selection process for new consultant
• monitoring of the local consultant for supervision

· Relating to project financing:

• the expenses for construction and local consultant works are to be disbursed by way of a disposition fund, operated by TDF; for the purpose, TDF will establish a separate sub-account (ledger) under its interest-bearing EURO bank account no. 0039622 at the Rastriya Banijya Bank, Bishal Bazaar, Kathmandu; the payment process will follow the KfW "Guidelines for Disbursement of Funds"
• inform GITEC about all financial transactions from the sub-account of the disposition fund as GITEC is responsible for the financial monitoring of the overall project; the information will be provided in the format of quarterly statements
• preparation of requests for replenishment and submission to GITEC for approva

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°° Some of these activities were already carried out through TDF under the former MoUs between HSSP and TDF, e.g. the tender for the local consultant for design/detailed engineering for the three project sites Bheri Zonal Hospital, Sorahawa PHCC and Rajapur PHCC has already taken place and as a result of this WELINK/ Multi Disciplinary was selected (see IV. Other parties involved). HSSP will pay TDF out of the Start-up Fund for all activities that were included in the two former MoUs and that will have been carried out until this MoU is effective.