Section 20

20. The Government· may, by notification, constitute an agency with such number of members, with such qualification, as may be prescribed in the regulations to be called the Project Management Facility for the management and supervision of any Project. The Project Management Facility shall exercise such powers and perform such functions, as may be prescribed in the regulations.

Regulation 16

Appointment of Project Management Facility (PMF)

(1) For projects of large size and complexity, at any time after recommending a project for implementation under section 14 of the Act, the Board may recommend to the Government the constitution of a Project Management Facility under section 20 of the Act.

(2) The Project Management Facility shall have a Project Manager, with atleast ten years of experience in managing projects, as the head of the facility and at least three members who to assist the Project Manager with operations; project finances; and legal issues.

(3) The Project Management Facility shall perform the functions detailed in Appendix V.

Regulation 17

Appointment of Project Managers

(1) In cases where no Project Management Facility is created for a project, the public agency implementing a project in the public sector mode shall designate a Project Manager and a sponsoring agency implementing a Public Private Partnership Project shall designate a Project Manager under section 19 of the Act.

(2) Any person designated as Project Manager under sub-regulation (1) shall be either a senior Government official or have ten years of project management experience, and shall discharge the functions specified in Appendix V.

Regulation 18

Project Monitoring

(1) The Project Management Facility or the Project Manager shall submit to the Board through the sponsoring agency an Achievement and Exception Report to Board on a quarterly basis, within thirty days of the end of the quarter.

(2) The Project Management Facility or the Project Manager shall also submit such other periodic reports on the status of project implementation, including in terms of time, cost, safety and other factors in the construction phase and the status of achievement of key performance indicators and other contractual, social, economic and financial indicators in the operational phase, in such formats and with such frequency as the Board by general or special instructions direct.

(3) The Chief Executive Officer shall cause to be laid before the Board and the Executive Committee at each of their regular meetings, a summary of the most recent reports mentioned under sub-regulations 5 and 6 on the status of implementation of the projects.

(4) In case of Public Private Partnership Projects, the Project Management Facility or Project Manager shall also be responsible for certifying the eligibility of the Concessionaire for release, where applicable, of state support in accordance with the terms of the concession agreement.

(5) The Board or the Executive Committee may suo-moto or on a request from a public agency take up a special review of any project including for the purpose of identifying and resolving any bottlenecks in the implementation of a project.

(6) The Project Management Facility or Project Manager, as the case may be, shall continue to be in existence until the project is completed and the project asset is transferred to the public agency or Government or until such time as the Government may determine.

(7) The Project Management Facility or Project Manager, as the case may be, shall be responsible on behalf of the public agency or sponsoring agency for the maintenance of project documentation, including what is contained in the Project Management Plan, in such format, structure or manner as the Board may from time to time prescribe.

Regulation 19

Project Management Plan

(1) The Public agency or Sponsoring Agency shall cause to be prepared by the Project Management Facility or the Project Manager, following the principles contained in Appendix V, a Project Management Plan at a stage no later the signing of the Contract or the Concession Agreement, which shall:

(a) define the processes that enable all parties to meet their obligations;

(b) monitor performance by the Parties of their respective obligations under the contract or the Concession Agreement;

(c) anage differences through proactive relationship management;

(d) manage unanticipated developments and mitigating risks through efficient risk management; and

(e) resolve disputes in an expeditious manner, with minimal impact on service delivery.

(2) The Project Management Plan shall also serve as a repository of basic project related documentation and shall include

(a) The Contract or Concession Agreement and its schedules;

(b) All financing agreements as well as financial models, where applicable;

(c) The names, roles and contact details of key individuals of both parties;

(d) Implementation plan during development, construction, operations and exit phases;

(e) Performance management plan;

(f) Risk management plan;

(g) Financial and contract administration plan;

(h) Relationship management and Contingency plan; and

(i) Contract Termination and Handover plan.

Regulation 20(1)

Treatment of variation

(1) Where a Contract or a Concession Agreement includes provisions for amendments consequent on variations; it shall be the responsibility of the Project Manager or PMF to:

(a) Ensure party proposing an amendment consequent upon variation justifies it with adequate evidence and related costs;

(b) Validate that the proposed amendments consequent upon variation are in accordance with procedures laid down in the Contract or Concession Agreement;

(c) Maintain a register of all amendments consequent upon variation throughout the project lifecycle;

(d) Promote effective communication to have a shared understanding of implications of any amendments consequent upon variation between contracting parties; and

(e) Ensure that timing for all amendments consequent upon variation are mutually agreed to, and take steps to ensure that variation management process outlined in the contract is followed by all contracting parties.

Regulation 21(3)

Exit strategy for continued service delivery after exit

(3) The Project Management Facility shall be responsible for implementation of exit strategy at the end of contract term.