Islamic Republic of Pakistan: Preparing the Integrated Information and Communications Technology Development Project

Transcription

1 Appendix 3 9 Technical Assistance Report Project Number: Transaction Technical Assistance (TRTA) October 2017 Islamic Republic of Pakistan: Preparing the Integrated Information and Communications Technology Development Project This document is being disclosed to the public in accordance with ADB's Public Communications Policy The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

2 CURRENCY EQUIVALENTS (as of 28 September 2017) Currency unit Pakistani Rupee (PKR) PKR1.00 = $ $1.00 = PKR ABBREVIATIONS ADB Asian Development Bank ICT information and communications technology IT information technology MOIT Ministry of Information Technology & Telecom TA TRTA technical assistance transaction technical assistance UN United Nations NOTE In this report, $ refers to US dollars. Vice-President W. Zhang, Operations 1 Director General S. O Sullivan, Central and West Asia Department (CWRD) Director Y. Ye, Urban Development and Water Division, CWRD Team leader Co-team leader Team members Peer reviewers R. Hu, Urban Development Specialist, CWRD R. Arun, Senior Public Management Specialist (ICT & e-governance), Sustainable Development and Climate Change Department (SDCC) E. Banzon, Principal Health Specialist, SDCC A. Barry, Principal Procurement Specialist, Operations Services and Financial Management Department (OSFMD) N. Djenchuraev, Senior Environment Specialist, CWRD S. Janardanam, Principal Financial Management Specialist, OSFMD A. Khokhar, Senior Safeguard Officer, CWRD N. LaRocque, Principal Education Specialist, CWRD N. Mian, Senior Programs Officer, CWRD J. Pabis, Operations Assistant, CWRD D. Perkins, Senior Counsel, Office of the General Counsel H. Rahemtulla, Senior Public Management Specialist, SDCC M. A. Rosero, Social and Gender Specialist, CWRD V. Padmanabhan, Technical Advisor (Urban), SDCC S. Bhattacharya, Senior Infrastructure Specialist (ICT), Pacific Department

3 In The preparing views expressed any country herein program are those or of strategy, the consultant financing and any do not project, necessarily or by making represent any those designation of ADB s of members, or reference Board of to Directors, a particular Management, territory or staff, or geographic and may be preliminary area in this in nature. document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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5 CONTENTS Page TRANSACTION TECHNICAL ASSISTANCE AT A GLANCE I. THE ENSUING PROJECT 1 A. Rationale 1 B. The Proposed Project 2 C. Proposed Financing Plans and Modality 2 D. Proposed ADB financing and linkage with country business operations plan 2 II. THE TECHNICAL ASSISTANCE 3 A. Justification 3 B. Outputs and Activities 3 C. Cost and Financing 5 D. Implementation Arrangements 5 ANNEXURES 1. Cost Estimates and Financing Plan 8 2. Terms of Reference for the Consultants 9

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9 I. THE ENSUING PROJECT A. Rationale 1. The government of the Islamic Republic of Pakistan has requested the Asian Development Bank (ADB) to provide support by lending for the proposed Integrated Information Communications and Technology Development Project Firstly, the integrated development of information and communications technology (ICT) sector is crucial for Pakistan to attain overall inclusive and sustainable development goals as envisaged in Pakistan Vision By 2025, 63% of Pakistan s population will be below the age of 30. To maximize the demographic dividend, investments in human development in growth sectors of economy is crucial. Further, to channelize the younger generation towards increasing productivity, Pakistan needs to create required number of jobs by adopting high gross domestic product growth strategies. This requires robust development of ICT sector. Also, in the United Nations (UN) 2016 e-government Development Index, Pakistan ranks 159 amongst 193 countries. This index reflects the measure of e-government development in UN member states. Pakistan also ranks 114 in UN e-participation index for 2016, which measures the extent of electronic engagement of the government with its citizens and other stakeholders. To improve access and efficient reach of public service delivery, Pakistan should develop agile ICT capabilities. 3. Secondly, the ICT industry is rapidly changing. Automation of ICT-enabled services are being adopted across economies. Machine to machine communications and automated decision making capabilities are increasingly being used. These changes are enabled by improvements in ICT s artificial intelligence, internet-of-things, augmented reality, big data analytics, cloud computing, and micro-electronics disciplines. A systematic program to incorporate these new advancements in higher education stream in Pakistan is urgently needed to prepare the future workforce employment ready and relevant. This is also needed for Pakistan to be competitively relevant and remain a serious player in ICT sector in the region. Pakistan did not realize the benefits of IT revolutions of 90 s and 2000 s due to lack of focus in adoption of high technology skills development programs. It is important for Pakistan to develop capabilities required for the fourth industrial revolution that is taking roots now. The fourth industrial revolution is predicted to be dominated by new age ICTs mentioned above. 4. Thirdly, to energize the less dominant private players of ICT sector, Pakistan should finetune its policy environments, facilities, and capacity development programs. Currently, the private sector is facing problems such as inadequate space, secured environment, and access to affordable high speed internet connections. Because of absence of an enabling environment, the ICT sector in Pakistan largely rest in the realms of small and medium enterprise sections. To realize higher export potential, along with small and medium enterprises, Pakistan must strive to attract heavy weight ICT companies across the globe. The present status of ICT industry in Pakistan can largely be attributed to the classic market failure bracket which warrants massive infusion of public sector intervention during these initial stages. 1 The project is listed in the draft country operations business plan, , for Pakistan dated 11 September Government of Pakistan, Planning Commission Pakistan 2025: One Nation, One Vision. Islamabad.

10 2 B. The Proposed Project 5. The proposed project will support the government to adopt a long-term strategy and implementation framework for the reinvigoration of ICT sector and smart city solutions to allow holistic development of IT ecosystem, through the establishment of a benchmark model IT park in Pakistan. The investment is also in line with the government s mid-term IT development policy, the Digital Pakistan Policy The project will contribute to higher and more inclusive growth through integrated adoption of ICT solutions in Pakistan. The expected outcome of the project is strengthened holistic development of ICT sector in Pakistan. The outcome will be achieved through the following outputs: (i) an IT park set up as a benchmark model in Karachi; (ii) National IT Parks strategy developed; (iii) smart city strategy developed and piloted; and (iv) ICT skills in higher education stream with technological readiness for knowledge-based economy strengthened. The project will be aligned with the following impact: ICT industry contribution to inclusive growth increased, as outlined in Pillar VI of Pakistan Vision C. Proposed Financing Plans and Modality 6. The total cost of the project is estimated at $250 million, of which $200 million will be financed by ADB through a loan from its regular ordinary capital resources, as outlined in Table 1. The federal government of Islamic Republic of Pakistan will finance the cost of land, taxes, and duties. The project modality is a project loan. Table 1: Indicative Financing Plan Amount Share of Total Source ($ million) (%) Asian Development Bank Government Total Source: Asian Development Bank. D. Proposed ADB financing and linkage with country business operations plan 7. The proposed project is included in the draft country business operations plan, , for Pakistan. 3 Government of Pakistan, Ministry of Information Technology & Telecom. Digital Pakistan Policy Pakistan. 4 The design and monitoring framework is in Appendix 1.

11 3 II. THE TECHNICAL ASSISTANCE A. Justification 8. A transaction technical assistance (TRTA) is required to complete due diligence for the ensuing project. Ministry of Information and Technology & Telecom (MOIT) is in possession of land in Karachi to construct the benchmark model IT Park. Necessary policy impetus for such parks and smart governance solutions in Pakistan are already outlined in the updated IT Policy of The Government has requested ADB to support its efforts to rejuvenate the ICT sector of the country. The Ministry has initiated institutional arrangements such as establishment of Research and Development fund for ICT. The government is engaging in a bilateral manner with the government of People s Republic of China and is strengthening high speed infrastructure capacity by undertaking development of landing gateways in the north and laying of fiber optic cable linkage systems. The TRTA will leverage the governmental commitment and ownership, and feasibility-level designs will be prepared for the three components. In addition, financial and economic analysis, poverty and social impact assessments, assessments of financial and/or procurement management capacity, and project s safeguard arrangements in terms of both environment and social, in line with ADB requirements, will be prepared. 5 B. Outputs and Activities 9. Output 1: An IT park set up as a benchmark model in Karachi. The output will support the establishment of an IT park along with ancillary facilities such as incubators and accelerators. This will enable end-to-end activities between the industry, academia, and government in increasing high value added jobs and economic activities. 10. Output 2: National ICT strategic framework developed. This output will develop an ICT strategic framework for cross sector applications and appropriate engagement model to undertake ICT initiatives that benefits multiple sectors. 11. Output 3: Smart city strategy developed and piloted. The output will support development of smart city master plan for the country. The plan will include development of smart city policy, identification of needs for establishing IT backbone for delivering solutions, and pilot testing of smart city development approaches. 12. Output 4: ICT skills in higher education stream for technological readiness for knowledge-based economy. The project will support the development of ICT skills in higher education stream. The initiatives include (i) developing a human resource plan for ICT skills and requirements in the country, (ii) establish two training centers in artificial intelligence and internetof-things technology, which will also support accelerator and incubator functions, and (iii) setup a national level forum on women leaders in ICT. 13. A team of consultants, recruited through output-based contracts will be engaged to carry out the TRTA. The major outputs and activities under the TRTA are summarized in Table 2. 5 The TA first appeared in the business opportunities section of ADB s website on 21 August 2017.

12 4 Table 2: Summary of Major Outputs and Activities Major Outputs Delivery Dates Key Activities with Milestones Inception report Within 4 weeks from the mobilization of TRTA team Develop detailed workplan Liaise with MOIT and ADB, and mobilize the team members. Conduct market survey. Collect and review data and reports, drawings, and designs prepared by MOIT for the selected project As-is assessment, categorization and prioritization of framework, masterplan and skills building requirements. Infrastructure diagnostic report IT park operation and management report, and recommendations on O&M enhancement Assessment and recommendations report Economic and financial analysis report Capacity building needs assessment report FMA report in line with ADB guidelines Within 12 weeks from mobilization Within 12 weeks from mobilization Within 20 weeks from categorization and infrastructure diagnosis activities. Within 16 weeks from mobilization Within 10 weeks from mobilization Within 16 weeks from mobilization site. Develop detailed work plan. Develop the National ICT strategic framework Develop contours of strategic elements related to undertaking ICT activities across sectors, reviewing and updating policy and institutional requirements. This include asis assessment and to-be projections. Assess status of IT park in Pakistan in comparison with the world class IT parks, identify improvement needs, and propose O&M procedures Conduct stakeholder consultations and priority options for IT park construction. Discuss options for O&M improvement. Review O&M procedures and recommend improvements for institutional and technical levels. Finalize feasibility report Conduct stakeholder consultation, site visits and best practices analysis, and develop the first draft of the report. Economic and financial analysis Undertake a comprehensive economic and financial evaluation of the project in line with ADB guidelines for the economic analysis of investment projects. Ensure cost estimates include investment costs for green IT infrastructure and adaptation costs. Assess capacity of MOIT, PSEB, and Ignite National Technology Fund Perform a needs analysis and develop training needs in new technologies such as artificial intelligence and internet of things technologies. Develop a framework for systematic implementation of programs and facilities. Develop an approach and action plan for imparting training to women at least to the extent of 50% of total allocation. Undertake a FMA, identify and analyze risks associated with the program, prepare a risk management plan. PRA report in line with ADB Guidelines Within 16 weeks from mobilization Undertake project implementation capacity and PRA of PSEB and Ignite National Technology Fund.

13 5 Poverty, social, and gender assessment report Draft SPRSS and Gender Action Plan. Within 16 weeks from mobilization Within 20 weeks from mobilization Poverty, social, and gender assessment and resettlement safeguards Determine the current conditions of SME IT practitioners and assess how the project will improve (i) income of both male and female, (ii) female workforce with better market access, and (iii) women s participation and decision-making in the IT sector. Resettlement and Indigenous Peoples checklists. Resettlement framework. Draft resettlement plans and social impact assessments for sample subprojects Draft feasibility reports and designs for IT park Final feasibility report Within 20 weeks from mobilization Within 20 weeks from mobilization Within 24 weeks from mobilization Within 24 weeks from mobilization Undertake the necessary social safeguards and resettlement documentation as required in the ADB Safeguard Policy Statement (2009) for sector loans, including finalizing the resettlement and indigenous peoples checklists, the development of the project resettlement framework, and three sets of draft resettlement plans and social impact assessments for the selected, sample subprojects Conduct feasibility study and prepare advanced designs and safeguards documentation for the construction of IT park. Prepare final feasibility report, including cost estimate, bill of quantity, and feasibility level designs for the IT park. ADB = Asian Development Bank, FMA = financial management assessment, IT = information technology, MOIT = Ministry of Information and Technology & Telecom, O&M = operation and maintenance, PRA = procurement risk assessment, PSEB = Pakistan Software Export Board, R&D = research and development, SME = small and mediumsized enterprises, SPRSS = Summary Poverty Reduction and Social Strategy, TRTA = transaction technical assistance. Source: Asian Development Bank. C. Cost and Financing 14. The technical assistance (TA) is estimated to cost $2.35 million equivalent, of which $0.85 million equivalent will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-VI) and $1.50 million will be financed by other sources. 6 The key expenditure items are listed in Annexure The government will provide counterpart support in the form of counterpart staff, office accommodation, and other in-kind contributions. The government will also carry out technical studies. The value of government contribution is estimated to account for about 1% of the total TA amount. The government was informed that approval of the TA does not commit ADB to finance any ensuing project. D. Implementation Arrangements 16. The TRTA implementation period will be from January 2018 to July 2018, allowing implementation support to the executing agency during project start-up. MOIT will be the lead counterpart agency for the TRTA. The consultants will report to ADB and MOIT. The consultants and MOIT will closely liaise with other government agencies as required. A TRTA steering 6 Cofinancing from e-asian and Knowledge Partnership Fund and other sources is currently being explored.

14 6 committee will be established by MOIT to provide guidance and policy directions. MOIT will: (i) appoint a project director/coordinator and counterpart staff, who will work closely with the consultants and support them as required; (ii) provide project-related data and information for consultants to carry out their assignments and deliver the outputs; and (iii) provide office space with appropriate furniture, telephone lines, and internet connection for the consulting teams. 17. ADB will engage consulting firms and individual consultants in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated Project Administration Instructions/TA Staff Instructions. Equipment purchased under the TA project will be turned over to MOIT at the completion of the TA project. ADB will administer the TA (including engaging the consultants), in coordination with MOIT, which will be the executing and implementing agency. The beneficiary ministries at federal and provincial level will serve as members and/or observers as deemed necessary on context basis in the steering committee, which will be chaired by the MOIT. The steering committee will provide overall guidance on the TA s implementation. The steering committee representatives will meet and provide directions through the three TA workshops (inception, interim, and final). 18. The proposed TA processing and implementation schedule is listed in Table 3. Table 3: Implementation Arrangements Aspects Arrangements Indicative implementation period January 2018 July 2018 Executing agency Ministry of Information Technology & Telecom Implementing agencies ADB Consultants To be selected, engaged, and managed by ADB Individual and Firm 167 person-months $2.151 million International 75 person-months $1.875 million Consultants National Consultants 88 person-months $0.276 million Procurement To be procured by consultants, and ADB Shopping 1 $0.005 million Advance contracting and Not applicable retroactive financing Disbursement The TA resources will be disbursed following ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). Asset turnover or disposal arrangement upon TA completion Equipment and goods purchased through the TA will be handed over to the executing agency in accordance with ADB s Administrative Order No ADB = Asian Development Bank, QCBS = quality- and cost-based selection, TA = technical assistance. Source: Asian Development Bank estimates. 19. Consulting services. It is expected that 75 person months of international and 88 person months of national consultants are required. To ensure the consistency in due diligence and capacity strengthening, one consulting firm will be recruited to carry out the due diligence in technical feasibility, economic and financial viability, safeguards, and capacity strengthening. Two individual consultants (one international and one national) will be recruited to carry out the project coordination and management activities. In the absence of qualified national and/or international consultants will be substituted interchangeably subject to budget considerations. The consultants will be recruited using quality and cost based selection method (with a quality cost ratio of 90:10 considering the variety of expertise required and its critical role) following the simplified technical proposal, quality based selection may be considered where appropriate. Table 4 provides details of the required expertise.

15 7 Output IT Park Design Service National ICT Strategic Framework Smart City Solution Design Capacity Building for ICT Education Project coordination and management Table 4: Summary of Key Consulting Services Requirement Personmonths International Positions National Positions 1. Chief Design Engineer Design Engineer 2. IT Procurement IT Procurement Specialist Specialist 3. Environmental Impact Environmental Impact Assessment Specialist Assessment Specialist 4. ICT Parks Development ICT Parks Development Specialist Specialist 5. ICT Parks Civil ICT Parks Civil Construction Specialist Construction Specialist 6. ICT Development ICT Development Economist Economist 7. Social Development Social Development Specialist (Gender) Specialist (Gender) 8. Financial Management Financial Management Specialist Specialist 9. Public Private Public Private Partnership Specialist Partnership Specialist Personmonths ICT Strategist ICT Strategist e-governance Specialist 3. Smart City ICT Specialist 1. ICT Policy Specialist 2. ICT Academic Program Development Specialist 1. Project Management Specialist e-governance Specialist Smart City ICT Specialist ICT Policy Specialist ICT Academic Program Development Specialist Project Management Specialist TOTAL ICT=information and communication technology, Source: Asian Development Bank estimates. 20. The project involves design of high technology solutions in the areas of internet-of-things, artificial intelligence, and other electronic platforms to deliver e-governance solutions in health and citizen security areas, and architecting communication services using low cost Wi-Fi techniques such as TV white space and low range Wi-Fi. In the IT park facilities, high technology solution design is needed for designing green data center, high speed communication facilities and landing gateways, and establishing cloud technology concepts. Further, procurement of these high technology facilities requires developing tender documents to include service specifications, service level agreement, license management details and developing maintenance and operations arrangements. This will also involve establishing networks and intellectual arrangements through techniques such as twinning with cities, collaborating with think tanks and technology associations. It will lay the foundation for developing ICT sector in the country to provide more jobs to the youths and inclusive growth by bridging gender divide and narrowing the exclusion issue faced by the marginalized sections of the society

16 8 Annexure 1 Table A1: Cost Estimates and Financing Plan ($'000) Item Total Cost A. Asian Development Bank a 1. Consultants a. Remuneration and per diem i. International consultants (25 person-months) ii. National consultants (28 person-months) 90.0 b. International and local travel 25.0 c. Reports and communications Equipment b Workshops, training, seminars, and conferences c Contingencies 28.0 Subtotal (A) B. To be determined d 1. Consultants a. Remuneration and per diem i. International consultants (50 person-months) 1,250.0 ii. National consultants (60 person-months) b. International and local travel 50.0 c. Reports and communications Surveys Miscellaneous administration and support costs Contingencies 4.0 Subtotal (B) 1,500.0 Total 2,350.0 Note: The technical assistance (TA) is estimated to cost $2,350,000, of which contributions from the Asian Development Bank and other source/(s) are presented in the table above. The government will provide counterpart support in the form of counterpart staff, office space, and other in-kind contributions. The value of government contribution is estimated to be about 1% of the total TA amount. Numbers may not sum precisely because of rounding. a Financing by ADB s Technical Assistance Special Fund (TASF-VI). b Equipment Type Quantity Cost Computer 3 $4,000 Printer 1 $1,000 c Workshops, training, seminars, and conferences Inception Workshop Engagement Workshops Study Tour ADB Financing Inception, interim, and final workshops Training on safeguards, procurement, financial management, Islamabad and Karachi Karachi TBD Islamabad and Karachi Islamabad and Karachi and design and monitoring framework d Administered by the Asian Development Bank. OSFMD = Operations Services and Financial Management Department; TA = technical assistance. Source: Asian Development Bank estimates.

17 Annexure 2 9 OUTLINE OF TERMS OF REFERENCE FOR FIRM I. Design of ICT Park in Karachi (International, intermittent) - Firm 1. The key skills required for delivering the output are: ICT Park Development specialist, IT Procurement Specialist, Design Engineer, Financial Management Specialist and ICT economist. 2. The firm will report to ADB project officer, through the project team leader, and will perform the following: (i.) Review, assess, and analyze the information and communications technology (ICT) industry status and potential in Pakistan, and propose the solutions for promoting ICT industry in Pakistan. The assessment, which covers the existing ICT industry in Pakistan and development of strategy for conceiving, implementing and promoting ICT in Pakistan, consists of: (a) Conduct background studies on issues with existing information technology (IT) parks in Pakistan; (b) Conduct strengths, weakness, opportunities and threats (SWOT) analysis related to ICT parks established in Pakistan, on a sampling basis; (c) Develop a methodology to quantify cost, benefits and economic rates of returns for such special economic zones; (d) Quantify the cost, benefits, and economic rates of return; (e) Develop a national ICT parks framework and identify issues that need to be sorted out by the government and nongovernment entities; (f) Develop detailed mechanisms to implement the framework; and (g) Coordinate and provide needed inputs to the environment assessment team and social assessment team. (ii.) Develop detailed designs of ICT park in Karachi. The consultants will perform risk assessment for the proposed project. Based on the analysis and best national and international practices, the consultants will conduct cost-benefit analysis of various options, including the without project option, perform detailed feasibility studies of shortlisted options, and recommend innovations and improvements to refine the technical design. The project should be technically sound and compatible with local conditions, meet all relevant technical standards and safeguard requirements, and are suitable for ADB financing. (iii.) Develop detailed functional and technical specifications, cost estimates, economic rate of return; and (iv.) Develop bid documents, service level standards and agreements, evaluation criterion for service provider selection and project implementation. A. Key Expertise Required 3. Interested organizations should determine the number and the nature of experts they will require to achieve the objectives of the contract. However, ADB requires a minimum of five key experts: Team leader and ICT Park Development specialist, IT Procurement Specialist, Design Engineer, Financial Management Specialist, and ICT economist. All key positions are international experts. 4. The Team Leader will be an individual who will perform team leadership as well as technical expert role in developing ICT park with ability to access benchmarking data. He/She should have the following minimum qualifications:

18 10 Annexure 2 (i.) (ii.) (iii.) (iv.) a master s degree in commerce, trade and finance with at least 10 years of international experience in designing industrial parks; has experience in multi-agency coordination required to implement policies such as single window clearance and tax incentives; at least 10 years of experience in policy and strategy formulation; and has at least 5 years of marketing and branding experience in special economic zones. 5. IT Procurement Specialist will be responsible in developing a framework for undertaking procurement of goods, services, and equipment within the applicable ADB procurement guidelines; preparing procurement-related documents; and assisting in evaluation of proposals. The expert should have the qualifications with regional experience preferably as follows: (i.) a master s degree in IT or Engineering; (ii.) (iii.) (iv.) (v.) (vi.) has 10 years of experience in ICT procurements involving government agencies; has international work experience in at least three different countries, with experience in procurement activities for Pakistan as a must (while ICT procurement in Pakistan is preferred, other procurement sector experience can also be substituted); has experience in ADB procurement procedures; ability to work with multiple stakeholders, including civil society, government, community, private sector, and ADB; and excellent English language skills. 6. The Design Engineer will be responsible for developing construction plan and methods, and detailed technical and functional specifications of the IT park, which include civil facilities and equipment and other ancillary requirements. The expert will be an individual with the following minimum requirements: (i.) a master s degree in engineering, preferably a doctorate qualification in Architecture, Civil Engineering or other related fields; (ii.) at least 15 years of relevant professional experience in designing and monitoring large civil works; and (iii.) has international work experience in at least three different countries with experience in large civil work management. 7. The Financial Management Specialist will undertake financial reviews and analysis of each project component, as well as detailed assessment of the financial performance of the executing agency and the implementing agencies in accordance with ADB guidelines. This due diligence includes (i) financial management assessment, including analysis of the internal and external audit systems of the executing agency and implementing agencies and their financial strength and status; (ii) an analysis of the soundness of the financing plan and availability and sustainability of counterpart funding; and (iii) an analysis of possible cofinancing sources, including private sector engagement especially for revenue generating components such as public-private partnerships. The expert will also need to conduct least-cost, cost-benefit and fiscal analyses, and financial analyses and affordability analyses of revenue-generating components such as IT park management and property leasing. The expert should have the following qualifications: (i.) a master s degree in accounting, business, or other related fields. Certified Public Accountant or Certified Chartered Accountant is preferred; (ii.) at least 10 years of relevant professional experience in designing and implementing financial management systems for large construction projects; and (iii.) has international work experience in at least three different countries.

19 Annexure The ICT Economist will provide economic justification and relevant data and research support for the other consultants, identify relevant case studies, and develop analytic support to the project documents. The expert will analyze the risks and identify appropriate mitigation measures for the project, assess the institutional mechanism required and develop a monitoring and evaluation framework, and strengthen the economic case of the proposal both in terms of cost aspects as well as development economic aspects and carry out the demand, alternative least-cost, cost benefit, risk and sensitivity, and sustainability/fiscal impact analysis. The qualification of the expert are as follows: (i.) a master s degree in Economics, Social Sciences or Sciences, (ii.) has 5 years of experience in ICT for development discipline, and (iii.) has international work experience in at least five different countries. 9. In addition to the above required key experts, safeguard specialists including environment, resettlement, social development (gender) should be considered critical to conduct due diligence required for compliance of ADB safeguard policies and procedures. The proposing organizations should also include in their technical proposal, in the personnel work plan and in their financial proposal all other non-key experts required in accordance with their proposed approach and methodology. The proposing organization shall also determine and indicate the number of personmonths for which each key or non-key expert will be required. 10. All experts engaged under the contract, whether key or non-key experts, must be citizens of one of the ADB member countries. B. Preparation of the Proposal 11. Interested organizations are requested to prepare a detailed description of how they propose to deliver on the outputs of the contract in the section of their proposal called Approach and Methodology. In this narrative, organizations should be explicit in explaining how they will achieve the outputs, and include any information on their existing activities upon which they may eventually build as well as the details of what staff will comprise the project team. 12. Organizations must also describe their experience in Pakistan and their ability to operate in the Urdu language. This is a preferred requirement but not mandatory requirement. 13. Only one curriculum vitae (CV) must be submitted for each key and non-key expert included in the proposal. Only the CVs of key experts will be scored as part of the technical evaluation of proposals. The CVs of non-key experts will not be scored. However, ADB will review and individually approve or reject each CV for each position in the proposal. 14. All positions under the contract, both key and non-key experts, must be included and budgeted for in the financial proposal in accordance with the person-month allocation required for each as defined by the proposing organization. C. Terms of the assignment 15. The duration of the project is 6 months from the expected start date of assignment. The expected start date is anticipated to be around the first week of January The duration will be adjusted based on the actual start date of the assignment. The assignment of experts in the assignment is intermittent in nature. The terms will be revised based on mutual discussions with the necessary parties involved in the assignment subject to changes and/or additional requirements encountered during the course of implementation.

20 12 Annexure 2 II. ICT Strategist (international, 4 pm; national, 4 pm) 1. The international ICT Strategist is expected to have (i) a master s degree in computer engineering and/or master s degree or equivalent in management sciences or business administration, and (ii) at least 10 years of international experience in developing national ICT strategies, experience in ICT projects is preferred. The national specialist will assist the international specialist in performing his/her responsibilities effectively. The national specialist is expected to have a bachelor s degree in information technology and/ or substitutable experience of at least 5 years of large IT infrastructure project management. The consultants will: (i.) Develop a strategy to mainstream ICT across various sectors, such as health, e- governance, education and social protection; (ii.) (iii.) Develop a phased implementation for ICT applications in the sectors; and Using this experience, extrapolate an engagement model and prioritization framework for undertaking ICT activities across national entities. III. Design of Smart City Master Plan and Pilot Initiatives (International, intermittent) Firm 1. The key skills required for delivering the output are: ICT Policy Specialist, e-governance Specialist and Smart System Architect. 2. The firm will report to ADB project officer, through the project team leader, and will perform the following: (i.) Develop a master plan for implementing smart city solutions in Pakistan. The master plan includes development of framework for conceiving, implementing and maintaining smart cities in Pakistan and consist of: (a) Enumerating and substantiating the strategic elements (components) of the smart city IT framework applicable for Pakistan in short, medium and long term categories. The substantiation shall delve into social, and economic costs, constraints and remediation, benefits, and rates of returns with appropriate field data and bench marks; (b) Developing Smart City IT vision and mapping to the strategic elements; (c) Develop strategic focus area, selection, and prioritization mechanics, interdependencies, and stakeholder engagement; (d) Identify soft and hard infrastructure required with detailed functional and technical specifications for implementing the solutions; (e) Detailed budget, and institutional requirements, procurement methods, and business models to conceive, roll out, and maintain these initiatives; and (f) Develop detailed total cost of ownership and economic rates of return for the program in short, medium, and long term. (ii.) Develop detailed smart city pilot IT projects. (a) Identify smart IT initiatives (at least 6 high development impact initiatives) that can be demonstrated in short run with identified beneficiary ministries; (b) Prepare detailed development and implementation and maintenance road map for the identified initiatives; (c) Develop detailed business case, funding source, and mechanisms, following the document standards required by the government; (d) Develop detailed functional and technical specifications, cost estimates, economic rate of return; and

21 Annexure 2 13 (e) Develop bid documents, service level standards and agreements, evaluation criterion for service provider selection and project implementation. A. Key Expertise Required 3. Interested organizations should determine the number and the nature of experts they will require to achieve the objectives of the contract. However, ADB requires a minimum of three key experts: Team Leader and IT Policy expert, e-governance Specialist, and Smart system architect. All key positions are international experts. 4. The Team Leader will be an individual who will perform team leadership as well as technical expert role in developing smart city policy aspects with ability to access benchmarking data. He/She should have the following minimum qualifications: (i.) Management experience of at least 10 years of ICT systems development in government services; ability to supervise a team project staff; preference will be given to candidates holding prominent positions in national or international IT bodies or equivalent bodies. He/she will interface with clients and ensure timely acceptance of deliverables and resolves issues proactively; (ii.) Expertise in designing, leading and implementing smart governance programs; (iii.) Experience in developing qualitative and quantitative economic modeling techniques for smart governance programs; (iv.) Ability to work with multiple stakeholders, including, government, private sector, and ADB; (v.) (vi.) Excellent change management skills; and Excellent English language skills, including ability to produce regular written reports of high quality. 5. e-governance Specialist with regional experience preferably as follows: (i.) A minimum of 10 years experience overseeing and implementing online services program in municipal governance; (ii.) A minimum of 5 years experience in ICT project development, implementation, and management on the national, local, organizational level; (iii.) Proven track record in policy development processes associated with e- governance strategy and policy development in developing countries and countries in transition; (iv.) Experience in working and collaborating with governments in devising high level policy documents and strategies; (v.) Experience in software design principles, process life cycle and workflow based systems and interactive web-based services; (vi.) Ability to work with multiple stakeholders, including civil society, government, community, private sector, and ADB; (vii.) Excellent English language skills. 6. Smart IT Architect will be responsible for developing detailed technical and functional specifications of the system, procurement methods and associated documents. He or she will be an individual with the following minimum requirements: (i.) A minimum of 10 years experience in ICT projects; (ii.) Experience in architecting smart city solutions in an end to end manner; (iii.) Experience in structuring smart city projects, and associated business models; (iv.) Strong English language skills.

22 14 Annexure 2 7. In addition to the above required key experts, the proposing organizations should also include in their technical proposal, in the personnel work plan and in their financial proposal all other non-key experts required in accordance with their proposed approach and methodology. The proposing organization shall also determine and indicate the number of person-months for which each key or non-key expert will be required. 8. All experts engaged under the contract, whether key or non-key experts, must be citizens of one of the ADB member countries. B. Preparation of the Proposal 9. Interested organizations are requested to prepare a detailed description of how they propose to deliver on the outputs of the contract in the section of their proposal called Approach and Methodology. In this narrative, organizations should be explicit in explaining how they will achieve the outputs, and include any information on their existing activities upon which they may eventually build as well as the details of what staff will comprise the project team. 10. Organizations must also describe their experience in Pakistan and their ability to operate in the Urdu language. This is a preferred requirement but not mandatory requirement. 11. Only one CV must be submitted for each key and non-key expert included in the proposal. Only the CVs of key experts will be scored as part of the technical evaluation of proposals. The CVs of non-key experts will not be scored. However, ADB will review and individually approve or reject each CV for each position in the proposal. 12. All positions under the contract, both key and non-key experts, must be included and budgeted for in the financial proposal in accordance with the person-month allocation required for each as defined by the proposing organization. C. Terms of the assignment 13. The duration of the project is 5 months from the expected start date of assignment. The expected start date is anticipated to be around the first week of February The duration will be adjusted based on the actual start date of the assignment. The assignment of experts in the assignment is intermittent in nature. The terms will be revised based on mutual discussions with the necessary parties involved in the assignment according to changes and/or additional requirements encountered during the course of implementation.

23 Annexure 2 15 IV. Design of Academic Program in Higher Learning (International, intermittent) - Firm 1. The key skills required for delivering the output are: ICT Expert, ICT Curriculum Design Expert, and Human Resources Expert. 2. The firm will report to ADB project officer, through the project team leader, and will: (i.) Develop capacity development plan for ICT in higher education sector. (a) Scan the higher education stream of Pakistan in ICT discipline; (b) Survey stakeholders from governments, academia, and students for enhancing capacity of the ICT stream in graduate and post graduate stream; (c) Identify leading trends in this sector and conduct a gap analysis on ICT human resources capacity, and facilities for training in new age technologies; (d) Develop detailed action plan to remediate the identified gaps; and (e) Identify issues faced by women and the marginalized in the ICT sector in Pakistan and develop a remediation plan, identifying specific programs, investment need and execution modality. (ii.) Develop detailed plans to build capacity in modern ICT technologies namely Artificial Intelligence (AI) and internet-of-things (IoT); (a) Assess the capacity in these technologies; (b) Identify gaps and constraints. Develop detailed plans to remediate the gaps and constraints; (c) Identify curricular requirements for introducing courses on these technologies in ICT higher education stream; (d) Develop action plans to introduce the courses; (e) Develop laboratory requirements and establish a collaboration framework with private sector; (f) Develop models to self-sustain the course and facilities; (g) Categorize the investment components into (i) consulting services, (ii) equipment, (iii) infrastructure and facilities; and (iv) goods and services. Develop detailed terms of references for these requirements; (h) Justify investment in the dimensions of social, economic, political and technological aspects; and (i) Develop detailed cost benefits and economic rates of return for the investment. A. Key Expertise Required 3. Interested organizations should determine the number and the nature of experts they will require to achieve the objectives of the contract. However, ADB requires a minimum of three key experts: Team leader and IT Policy expert, e-governance Specialist, and Smart System Architect. All key positions are international experts. 4. The Team Leader will be an individual who will perform team leadership as well as technical expert role in developing the capacity building program. He/She should have the following minimum qualifications: (i.) Management experience of at least 10 years of ICT systems development with special focus on (i) large IT project management (should have handled at least one $1 million size project). He or she will interface with clients and ensure timely acceptance of deliverables and resolves issues proactively;

24 16 Annexure 2 (ii.) (iii.) (iv.) (v.) (vi.) Have experience in implementing at least three IoT and AI projects; Experience in working in ICT academic environment; Ability to work with multiple stakeholders, including government, private sector, and ADB; Excellent change management skills; and Excellent English language skills, including ability to produce regular written reports of high quality. 5. ICT Human Resources expert with regional experience preferably as follows: (i.) A minimum of 10 years experience overseeing and implementing ICT projects across multiple sectors; (ii.) Has at least 3 years of experience in ICT human resources management functions dealing with selection and allocation of ICT resources to projects; (iii.) Proven track record in policy development processes associated with ICT sector in developing countries and countries in transition; (iv.) Experience in working and collaborating with governments in devising high level policy documents and strategies; (v.) Ability to work with multiple stakeholders, including civil society, government, community, private sector, and ADB; and (vi.) Excellent English language skills. 6. ICT Curriculum Design Expert (i.) A minimum of 10 years experience in running large IT training programs; (ii.) Experience in designing training courses in modern IT areas; (iii.) Experience in implementing electronic communications and instrumentation systems; (iv.) Experience in designing and implementing AI solutions; (v.) Strong English language skills. 7. In addition to the above required key experts, the proposing organizations should also include in their technical proposal, in the personnel work plan and in their financial proposal all other non-key experts required in accordance with their proposed approach and methodology. The proposing organization shall also determine and indicate the number of person-months for which each key or non-key expert will be required. 8. All experts engaged under the contract, whether key or non-key experts, must be citizens of one of the ADB member countries. B. Preparation of the Proposal 9. Interested organizations are requested to prepare a detailed description of how they propose to deliver the outputs of the contract in the section of their proposal called Approach and Methodology. In this narrative, organizations should be explicit in explaining how they will achieve the outputs, and include any information on their existing activities upon which they may eventually build as well as the details of what staff will comprise the project team. 10. Organizations must also describe their experience in Pakistan and their ability to operate in the Urdu language. This is a preferred requirement but not mandatory requirement. 11. Only one CV must be submitted for each key and non-key expert included in the proposal. Only the CVs of key experts will be scored as part of the technical evaluation of proposals. The