World Bank Document - Mumbai Railway Vikas Corporation Ltd ...

III.
IMPLEMENTATION
A. Institutional and Implementation Arrangements
35. MUTP-2A will continue with the institutional arrangements put in place under
MUTP-1 that proved to be efficient for an effective partnership between the Government of
Maharashtra state and Indian Railways in carrying out the project. MRVC, incorporated under
the Companies Act, 1956, is a Public Sector Undertaking, limited by shares, of the Indian
government under IR. Owned almost equally by GOM and IR, MRVC is expected to coordinate
and implement development projects for the suburban rail system in Mumbai on behalf of GOM
and IR. MRVC will receive a fee called Directional and General (D&G) charges from GOM and
IR for its services under MUTP-2A.
36. MRVC is the project implementing agency for MUTP-2A and in that role is
accountable for satisfactory completion of all the project works. MMRDA, ICF, RDSO, WR and
CR are executing agencies. As the project implementing agency, MRVC, on behalf of GOM and
IR, is responsible for financing and procuring all the contracts financed by the loan, including the
rolling stock and power supply equipment, as well as for executing certain identified works in
the field, with due safeguards in consultation with the Zonal Railways. Memoranda of
understanding which incorporate insurance to respect the environmental management plan, time
line of works and activities to be carried out by the respective agencies, will be set up between
MRVC and the executing agencies.
37. GOM and IR will share the investment costs of the Bank-financed project on a
50/50 basis, making GOM a key beneficiary and stakeholder of the project along with IR. The
project will benefit from this partnership and will seek ways to further deepen it through
technical assistance and capacity building. GOM and IR will ensure that its activities under the
Project are carried out in accordance with the provisions of the Implementation Manual, SMF,
and EMPs, and in accordance with the provisions of the Anti-Corruption Guidelines, and shall
ensure that the Implementation Manual, SMF, and EMPs are not materially revised, amended,
waived, or abrogated without the prior no objection of the Bank.
38. Flow of Funds and Financial Management: The borrower of the World Bank
loan will be India, who will make its proceeds available to MOR and GOM. One half of each
loan disbursement will be released to GOM as Additional Central Assistance under the standard
policy of external assistance to a State and to MOR through the General Budget. MOR and GOM
will provide loan and counterpart funds to MRVC. MRVC will be responsible for financial
management arrangements for the project. A recently completed assessment concluded that
MRVC has a financial management system adequate to account for and report on the project
resources and expenditures accurately. The responsibility for overall project financial
management will rest with MRVC’s Director (Finance), who will be responsible for activities
relating to compiling project budgets, project accounting, reporting to the Bank in a timely
manner, submitting applications to the Bank for direct payments, advances and replenishments
and periodical audits. The project financial management cell will remain adequately staffed
during the implementation of the project.
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