National Road Development Project - SRRP/ Internal Auditor Tender, Uzbekistan - 75281143

Procurement Summary

Country : Uzbekistan

Summary : National Road Development Project - SRRP/ Internal Auditor

Deadline : 28 Dec 2022

Other Information

Notice Type : Tender

TOT Ref.No.: 75281143

Document Ref. No. : LOAN-4174 UZB

Competition : NCB

Financier : Asian Development Bank (ADB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

National Road Development Project - SRRP/ Internal Auditor

Approval Date: 22-Feb-2022

Deadline of Submitting EOI: 28-Dec-2022 11:59 PM Manila local time

Estimated Commencement Date: 06-Mar-2023

Estimated Commencement Date: 31, 500 USD

Engagement Period: 36 MONTH

Objective and Purpose of the Assignment
1. Introduction and Background

This Terms of Reference is prepared in accordance with provisions of the Loan Agreement 4174-UZB (Loan Agreement) between Republic of Uzbekistan and Asian Development Bank (ADB) dated 25 March 2022.

The Loan amount is 273.8 million US dollars for the period of 24 years, including 4-year grace period, of which 183.8 million US dollars were allocated for reconstruction of 111 km road sections in Surkhandarya region and 90 million US dollars for completion of reconstruction of 87 km road section in Bukhara region of the Republic of Uzbekistan.

The objective of the project, for which the Loan Agreement was concluded, is increased road
transport efficiency for the project roads, being the national road between Darband village and
Denov city in Surkhandarya region and the A380 road section between districts Bukhara and Gazli in
Bukhara region. The project comprises of 2 sub-projects as follows: (i) reconstruction of the
existing 111 km road sections of the 4R105 “Darband v.- Boysun c.- Elbaen v.” (km 5-70) and 4R100
“Manguzar v.- Zharkurgan c.- Bandikhon v.- Oltinsoy v.- Denov c.” (km 128-174) with cement concrete
pavement, including supply and installation weigh-in motion system (“Surkhandarya” project), and
(ii) completion of the reconstruction and widening of the existing 87 km of A380 “Guzar-Bukhara-
Nukus-Beyneu” road on the section from km 228 to 315, which has been previously funded by ADB Loan
3355 until closure of that loan, i.e. 23 August 2021 (“Bukhara” project).

The Committee for Roads (CR) under the Ministry of Transport of the Republic of Uzbekistan is the executing agency responsible for effective targeted use of the loan funds and implementation of the project. A project management unit (PMU) has been established under “Avtoyulinvest” Agency (AA) (formerly Republican Road Fund) to manage the day-to-day project activities. The Sectoral Procurement Committee and Ministry of Investment and Foreign Trade of the Republic of Uzbekistan are the monitoring committees for the project implementation.

The audit services will be contracted by the PMU (Client), with the following contact details:
Address: 68, Mustakillik Ave., Tashkent, Uzbekistan; Attn: Mr. Fakhriddin Abdurakhmanov, Director
of PMU; Tel: (+99871) 268-99-68; E-mail: surkhandarya.project@gmail.com

2. Objectives

Internal audit is an independent, objective assurance and consulting activity aimed at adding value and improving the organization's activities. It helps the organization achieve its goals by applying a systematic, disciplined approach to assessing and improving the effectiveness of risk management, control and management processes. Internal audit activities should assess and contribute to the improvement of the management, risk management and control processes in the organization using a systematic, disciplined and risk-based approach. The credibility of internal audit and its value increase when auditors take the initiative and their assessments offer new ideas and take into account the impact in the future.

3. Auditing Standards

The internal audit is required to be conducted in accordance with International Standards for the
Professional Practice of Internal Auditing (Standards). Standards are principles-focused and
provide a framework for performing and promoting internal auditing. The International Internal
Audit Standards Board (IIASB) released the revision to the Standards (effective January 1, 2017)
following consideration and approval by the International Professional Practice Framework Oversight
Council (IPPFOC). The auditor will agree and formalize with CR the internal audit charter.

4. Audit Deliverables

Internal audit involves four major functions or areas of operation. They are as below:
i. Reliability and integrity of information: The internal auditor should review the reliability and
integrity of financial and operating information and examine the effectiveness of the means used to
identify, measure, classify, and to report such information.
ii. Compliance with Policies and Procedures: The systems and procedure also have a considerable
impact on the operation of the business enterprise. The internal auditor should gauge the
effectiveness and impact of such systems and report thereon.
iii. Safeguarding the Assets: The internal auditor should review the existing system for
safeguarding the assets and if necessary should verify the existence of such assets.
iv. Economical and efficient use of resources: The internal auditor should also appraise the
economy and efficiency with which the resources are employed. Further the internal auditor should
identify the conditions, which would prevent the economical use of resources. They are as follows:
(i) under utilization of capacity; (ii) non-productive work; (iii) procedures, which are not cost
justified; (iv) over staffing or under staffing; and (v) accomplishment of the Established
Objectives and Goals: The internal auditor should make a review of the operations or programs of
the enterprise and should ascertain whether the results are not inconsistent with the established
goals and objectives of the enterprise. He should also ascertain whether the programs are carried
out as per plan.

Internal auditor will establish and maintain an effective project control environment which
provides the discipline and structure for the achievement of the primary objectives of the system
of internal control. The control environment includes the following elements: (i) integrity and
ethical values; (ii) management-s philosophy and operating style; (iii) organizational structure;
(iv) assignment of authority and responsibility; (v) human resource policies and practices; and
(vi) competence of personnel.

The internal auditor must report quarterly on two sub-projects or any other CR-s operations, upon
CR-s management request and approval, to CR senior management with due conformity to internal audit
activity-s purpose, authority, responsibility, and performance relative to its plan and on its
adherence with the Code of Ethics and the Standards. Reporting must also include significant risk
and control issues, including fraud risks, governance issues, and other matters that require the
attention of CR-s senior management of CR and/or ADB. Engagements must be performed with
proficiency and due professional care. The internal auditor-s first quarterly report shall be
provided to ADB for comments on the internal auditor-s methodology and approach.

Internal auditor must develop and maintain a quality assurance and improvement program that covers
all aspects of the internal audit activity.

Internal auditor must establish and agree with CR an annual risk-based plan to determine the
priorities of the internal audit activity, consistent with the organization-s goals.

5. Other Matters

Statement of Access

The auditor will have full and complete access, at all reasonable times, to all records and
documents including books of account, legal agreement(s), bank records, invoices and any other
information associated with the project and deemed necessary by the auditor.

The auditor will be provided with full cooperation by all employees of CR and the PMU, whose
activities involve, or may be reflected in, the annual financial statements. The auditor will be
assured to have rights of access to banks and depositories, consultants, contractors, and other
persons or firms hired by the Employer.

Auditor Experience

The auditor must be capable of applying the agreed auditing standards. The auditor should have
adequate staff, with appropriate professional qualifications and suitable experience, including
experience in internal auditing. To this end, the auditor is required to provide curriculum vitae
(CV) of the personnel who will provide opinions and reports, together with the CVs of managers,
supervisors and key personnel likely to be involved in the audit work. These CVs should include
details of audits carried out by these staff, including ongoing assignments. The Consultant is free
to commit resources to suit the working plan. However, the professional staff inputs for key
experts are estimated as follows:

(i) Team Leader/Senior Auditor Manager (national) - 3 person-month
• A bachelor degree in accounting, finance, or related field and a professional accounting
qualification such as ACCA/CPA/CA from IFAC member organization. A master degree will be an
advantage;
• Preferably 12 years of work experience including auditing standards analyses, annual project
accounting, accounting policies, internal control systems, record keeping methodology;
• Experience working as a Team Leader in the field of auditing;
• Experience working in Uzbekistan or in the Central Asia region and working with international
organization/international agency.
(ii) Assistant Auditor Manager (national) -3 person-months
• A bachelor degree in accounting, finance, or related field. A master degree will be an advantage;
• Preferably 10 years of work experience including auditing standards analyses, annual project
accounting, accounting policies, internal control systems, record keeping methodology;
• Experience working in Uzbekistan or in the Central Asia region and working with international
organization/international agency.
(iii) Auditor, 2 professionals (national) - 6 person-months for each auditor
• A bachelor degree in accounting, finance, or related field;
• Preferably 8 years of work experie

Documents

 Tender Notice