LESOTHO COMPETITIVENESS AND FINANCIAL INCLUSION (CAFI) PROJECT Project Procurement Strategy Development (PPSD) (Short form of PPSD) Implementing Agency: Ministry of Trade & Industry MARCH 2022 1|Page Common Abbreviations and Defined Terms This Section explains the common terms and abbreviations used in this Document. Defined terms are written using capital letters. Abbreviation / Full terminology / definition term ASYCUDA A computerised customs management system which covers most foreign Trade procedures Bank IBRD and/or IDA (whether acting on its account or in its capacity as administrator of trust funds provided by other donors). Borrower A borrower or recipient of Investment Project Financing (IPF) and any other entity involved in the implementation of a project financed by IPF, in this case, the GoL. Complaint A procurement-related complaint as described in Paragraphs 3.26 to 3.31 and Annex III, Procurement- related Complaints of the Procurement Regulations. ESRI Company that provides GIS systems in Africa and around the globe (Environmental Systems Research Institute) EXPERIAN Credit Scoring system and Credit Infrastructure system Goods A category of procurement that includes commodities, raw material, machinery, equipment, vehicles, Plant, and related services such as transportation, insurance, installation, commissioning, training, and initial maintenance, G2B Government to Business Initial Selection The shortlisting process is used prior to inviting (IS) requests for Proposals in the procurement of Goods, Works, or Non-consulting Services. Investment The Bank’s financing of investment Projects that aim Project to promote poverty reduction and sustainable Financing (IPF) development. IPF supports Projects with defined development objectives, activities, and results, and disburses the proceeds of Bank financing against specific eligible expenditures. LERIMA Lesotho Electronic Registry Interest of Moveable Assets Non--consulting Services, which are not Consulting Services. Non- Services: consulting Services are normally bid and contracted on the basis of performance of measurable outputs, and for which performance standards can be clearly identified and consistently applied. Examples include drilling, aerial photography, satellite imagery, mapping, and similar operations. 2|Page Abbreviation / Full terminology / definition term SWOT (Strengths, Weaknesses, Opportunity and Threats) is an analysis tool for supporting assessment of each of these factors. PARADIGM A company that deals with Moveable Asset Registry Prequalification The shortlisting process can be, used prior to inviting requests for Bids in the procurement of Goods, Works or Non-Consulting Services. Procurement Procurement approach is the overall design of “fit Approach for purpose” procurement to award contracts that deliver the Project Development Objectives and Value for Money. This includes Procurement Arrangements, procurement risk management, contract strategy, market engagement, requirements drafting and contract management (where appropriate). Procurement Procurement arrangements are the combination of Arrangements Selection Methods and Market Approaches. Procurement The Borrower’s Procurement Plan for IPF Projects, as Plan referred to in Paragraphs 4.4 and 4.5 of the Procurement Regulations, and incorporated by reference in the Legal Agreement. Procurement The process that starts with the identification of a Process need and continues through planning, preparation of specifications/ requirements, budget considerations, selection, contract award, and contract management. It ends on the last day of the warranty period. Procurement The “World Bank Procurement Regulations for IPF Regulations Borrowers”. Project A Project-level strategy document, prepared by the Procurement Borrower, that describes how procurement in IPF Strategy for operations will support the development objectives Development of the Project and deliver Value for Money (VFM). (PPSD) UNCTAD United Nations Conference on Trade and Development 3|Page Table of Contents CHAPTER 1 ...........................................................................................................5 1.0 PROJECT OVERVIEW ...............................................................................5 1.1 Project Description ................................................................................6 1.2 Project Development Objectives .........................................................8 1.3 Results Indicators ..................................................................................8 1.4 High Level Statement of Requirement ...............................................9 CHAPTER 2 ...........................................................................................................9 2.0 OVERVIEW OF COUNTRY, BORROWER AND MARKET PLACE .9 2.1 Operational Context ..............................................................................9 2.2 Assessment of Borrower Capability and Project Implementation Unit (PIU) ........................................................................................................15 2.3 Project Procurement Structure .........................................................19 2.4 Market Analysis ....................................................................................20 CHAPTER 3 .........................................................................................................23 3.0 PROJECT PROCUREMENT RISK ANALYSIS .........................................23 CHAPTER 4 .........................................................................................................29 4.0 STAKEHOLDER ANALYSIS ...................................................................29 CHAPTER 5 .........................................................................................................31 5.0 PROCUREMENT OBJECTIVES ...............................................................31 CHAPTER 6 .........................................................................................................32 6.0 PROCUREMENT APPROACH OPTIONS AND RECOMMENDATIONS .32 CHAPTER 7 .........................................................................................................39 7.0 SUMMARY OF PPSD TO SUPPORT THE PREPARATION OF THE PAD BY THE BANK ..................................................................................................39 CHAPTER 8 .........................................................................................................40 8.0 PROCUREMENT PLAN FOR THE FIRST 18 MONTHS .........................40 4|Page CHAPTER 1 1.0 PROJECT OVERVIEW Competitiveness and Financial Inclusion (CAFI), aims to provide more opportunities for women in the private sector through the following interventions: (i) focusing on women owned MSMEs for rapid disbursements during shocks. Women-owned MSMEs are particularly vulnerable to climatic shocks and require targeted support. Research in Lesotho has shown that shocks disproportionately increase the work burden of women, who, in addition to being more likely to be self-employed or employed in the informal sector, are also tasked with walking long distances to collect water for their families in droughts, growing/providing food, covering educational costs/needs, and generally sustaining the family. In rural areas, men are more likely to leave their villages in search of alternate income sources, thereby giving women the full burden of family caretaking. Thus, when climatic shocks occur, a loss of income for the self-employed women can have large and catastrophic effects on families and communities, emphasizing the need for rapid support to women-owned MSMEs; (ii) focusing on women-owned start-ups and women-owned MSMEs to assist them in launching businesses, adopting new digital technologies, and improving managerial practices. This supports gender transformation within the MSME space. The proposed project has adopted a selective approach by targeting interventions that link closely to business expansion and resilience and job creation, specifically those related to supporting entrepreneurship, MSMEs, and high potential value chains. The proposed interventions are targeted at increasing financial inclusion and resilience as well as strengthening the support for MSMEs and entrepreneurship along the high potential value chains. Under increasing financial inclusion and resilience, the proposed interventions focus on strengthening the delivery of G2B services, increasing access to finance for MSMEs with a focus on ensuring the 5|Page inclusion of women- owned MSMEs and enhancing the resilience of the business sector from climate and other shocks. Support for MSMEs and entrepreneurship is focused on enhancing the scope and quality of business support services, access to early-stage finance and improving the overall competitiveness and climate resilience of horticulture and export manufacturing value chains. Based on the experience of the PSCED and PSCEDII projects, institutional, legal, and regulatory reforms pertaining to access to finance, investment policy and business environment reforms, while critical for overall competitiveness, have proven challenging and unnecessarily prolonged. These reforms will be supported through a parallel technical advisory support program. The project interventions proposed therefore target market and coordination failures through direct support to entrepreneurs and firms while leveraging private sector service delivery capacity to augment limited public sector capacity. Although the tourism value chain has not been explicitly targeted, entrepreneurs and existing MSMEs in the sector will be able to fully benefit from the project interventions. Country: Kingdom of Lesotho Full Project Competitiveness and Financial Inclusion Project Name: Total Finance 55,000,000. ($): Project ID P175783 Number: 1.1 Project Description The purpose of this project is to increase access to business support services and financial products targeted at MSMEs and entrepreneurs, especially women and youth. The project has three components that will support the Government’s efforts to expand the private sector in Lesotho. 6|Page • Component 1 will enhance financial inclusion by strengthening the delivery of efficient and reliable government-to-business (G2B) digital services to facilitate the establishment and operation of new businesses and reduce the time and cost of regulatory compliance which in turn will enhance access to finance and the competitiveness of MSMEs. It will also provide support for firms to be more resilient to shocks from climate, pandemics, and other natural disasters. The component will include activities that support (i) optimizing the outcomes of investments in G2B digital systems and processes made under the PSCEDII project, to strengthen inter-operability, efficiency, and impactful service delivery for businesses, particularly those receiving support under Component 2, (ii) improving financial access through upgrading the security and reliability of credit infrastructure and expanding access to digital financial services, and (iii) instruments to expand financial resilience for businesses to cope with disasters and other shocks to the economy. These instruments will be particularly beneficial to the private sector. The component will finance technical assistance, goods, training and capacity building programs, and recurrent expenditures, including operating costs. • Component 2 aims to strengthen the nascent entrepreneurial ecosystem and access to early-stage finance for startups and youth owned businesses, support the digitization of MSMEs, and facilitate private investment in high-potential value-chains including encourage upgrading of skills and adoption of sustainable production practices by businesses to enhance productivity and green growth. The component will include activities that support (i) establishing an Entrepreneurship Hub and Seed Financing Facility to increase the quality and scope of integrated startup business support services and increase access to early-stage financing, (ii) scaling the current Lesotho Enterprise Assistance Program (LEAP) focusing on supporting MSMEs to adopt digital technologies that allow them to transact in the digital economy and upgrade their capabilities, and (iii) facilitating investment into productive value chains that are linked to 7|Page local MSMEs. The component will finance technical assistance, goods, training, recurring expenditures including operating costs, grants, and investments in a “seed financing facility.” • Component 3 will provide support for the management and implementation of project-associated activities. Activities to be financed include salaries of project management unit (PMU) staff/consultants in areas of project management, project coordination, fiduciary specialists (e.g., procurement, financial management), monitoring and evaluation (M&E) specialist, a dedicated environment, and social safeguards (E&S) specialist, project communication, and citizen engagement. This component will also cover modest office equipment and independent audits and learning/training for the PMU and beneficiary agencies, through the official closing date of the project. It is expected that all consultant terms of reference (TORs) will clearly stipulate knowledge transfer and hands on training to ministry staff. Special attention will be devoted to promoting equal participation of women in all decision- making bodies under the project and contributing to tackling barriers in recruitment, retention, and promotion. 1.2 Project Development Objectives The project development objective (PDO) is to increase access to business support services and financial products targeted at MSMEs and entrepreneurs, especially women and youth. The proposed project supports results in two areas: (i) Improving financial inclusion and resilience through improvements in government to business services, government supported financial products that increase MSME creation, growth, and resilience to climatic and other shocks; and 8|Page (ii) Direct support for entrepreneurship and MSMEs to increase start-up creation and growth and the capabilities of MSMEs to grow and participate in the value chains of high potential export industries. 1.3 Results Indicators The project’s achievement of the PDO will be measured via the following key results indicators: 1. Number of enterprises benefitting from private sector initiatives of the program (Of which are women-owned, of which are youth-owned); 2. Value of financing (seed funding, grants, partial credit guarantee, MSME resilience funds) accessed by enterprises through the program (Of which are women-owned); 3. Percentage of enterprises supported by the program with increased revenue (Of which are women-owned, of which are youth-owned); and 4. Percentage of enterprises supported by the program with increased employment (Of which are women-owned, of which are youth-owned. 9|Page There are also indicative intermediate indicators which will be used to measure the performance of the project, and these are: • Firms benefiting from private sector initiatives (CRI, Number) (Of which are women-owned, and of which are youth-owned). • Percent change in the number of enterprises accessing supported G2B systems; • Number of key G2B systems upgraded with the support from the program; • Percentage of women-owned enterprises recorded as being creditworthy in the credit bureau; • Number of additional enterprises covered by the partial credit guarantee (PCG) scheme; • Number of MSMEs registered for coverage in MSME Resilience Fund database; • Number of startups and innovative SMEs supported through entrepreneurship hub support programs; • Number of startups and innovative SMEs supported through entrepreneurship hub support programs of which are women-owned; • Number of enterprises accessing early-stage finance; • Number of entrepreneurship hub and LEAP program supported enterprises that adopted new digital technologies; • Number of LEAP fund supported enterprises with 25% or greater increase in revenues one year after grant support; and • Number of supported enterprises in targeted value chains with increased value of exports. 1.4 High Level Statement of Requirement The implementation of the Competitiveness and Financial Inclusion Project requires procurement of consulting and non-consulting services, goods, and works under the project components. Consulting services will be needed to provide capacity building and technical advisory services as well as 10 | P a g e management assistance to both PMU and beneficiary agencies. Procurement of consulting services will be needed to enhance G2B digital services to more effectively serve MSMEs, access to financial services, strengthening the resilience of MSMEs to Climatic Disasters and shock scaling-up support for Entrepreneurship and MSME’s and expanding SME participation in high potential value chains. Procurement of works will be needed to support the refurbishment of Mahobong Incubation Hub as well as partitioning of PMU office. Procurement of goods will be needed to provide ICT equipment to support implementation of Component 1 system upgrades including the business registration and licensing system at OBFC, the LRA customs system, the MCC construction permitting system to mention a few. Table 1 below provides a summary of the estimated costs of procurement package per component, works, good and consulting services included. 11 | P a g e TABLE 1: Proposed Procurement Contract Summary PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD COMPONENT 1: ENHANCING G2B DIGITAL SERVICES AND STRENGTHENING PRIVATE SECTOR RESILIENCE Sub-Component 1.1 - Enhancing Government to Business Digital Services UNCTAD is uniquely and exceptionally qualified to upgrade business registration and licensing system at OBFC as it was originally developed by them. It is also the case that the tasks represent a natural continuation of previous work carried out by a consultant, where continuity in the technical approach, experience Upgrade of the acquired, and continued professional liability of the same business Consultant may make continuation with the initial registration and Consultant preferable to a new competition. The licensing system 880 Direct Selection performance of UNCTAD has been satisfactory in the 1.1.1 at OBFC 000.00 (UNCTAD) previous assignment(s); UNCTAD is uniquely and exceptionally qualified to upgrade LRA customs system as it was originally designed and developed by them. Upgrade of the It is also the case that the tasks represent a natural LRA customs continuation of previous work carried out by a consultant, system, based on Direct Selection where continuity in the technical approach, experience UNCTAD`s (UNCTAD)ASYC acquired, and continued professional liability of the same ASYCUDA World 1 000 UDA World Consultant may make continuation with the initial 1.1.2 System 000.00 System Consultant preferable to a new competition. The 1|Page PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD performance of UNCTAD has been satisfactory in the previous assignment(s); Only ESRI is qualified and has experience of exceptional worth for the upgrade of the LAA land registry system as they designed and developed the system. It is also the case that the system is proprietary where continuity in the technical approach, experience acquired, and continued professional liability of the same Consultant may make direct selection of the system developer Upgrade of the Consultant preferable to a new competition. The LAA land registry 1 000 Direct Selection performance of ESRI has been satisfactory in the previous 1.1.3 system 000.00 (ESRI) assignment(s); Design and Appropriate method for medium and high complexity development of assignment. Competitive approach is required to achieve the G2B quality and value for money interoperability 1 600 QCBS - 1.1.4 framework 000.00 International Design and The method is appropriate as this is a large firm consultant development of a assignment with cost above $ 300 000.00. Competitive G2B payment 1 500 QCBS - approach is required to achieve quality and value for money 1.1.5 gateway 000.00 International 5 980 000.00 Sub-Component 1.2 - Improving Access to Financial Services Upgrade of the Only EXPERIAN is qualified and has experience of credit exceptional worth for the upgrade of the credit infrastructure infrastructure system as they designed and developed the system. The system that 200 Direct Selection task represents a natural continuation of previous work 1.2.1 facilitates access 000.00 (EXPERIAN) carried out by a consultant, where continuity in the technical 2|Page PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD to business approach, experience acquired, and continued professional financing liability of the same consultant may make continuation with the initial consultant preferable to a new competition The performance of EXPERIAN has been satisfactory in the previous assignments Only EXPERIAN is qualified and has experience of exceptional worth for the development of the credit scoring system as they designed the system. The task represents a natural continuation of previous work carried out by a consultant, where continuity in the technical approach, Development of experience acquired, and continued professional liability of credit scoring the same consultant may make continuation with the initial system to consultant preferable to a new competition The performance enhance the of EXPERIAN has been satisfactory in the previous utility of credit 600 Direct Selection assignments 1.2.2 reporting 000.00 (EXPERIAN) Only Paradigm is qualified and has experience of exceptional worth for the upgrade of the LERIMA movable asset registry as they designed and developed the system. The task represents a natural continuation of previous work carried out by a consultant, where continuity in the technical approach, experience acquired, and continued professional liability of the same consultant may make continuation with the initial consultant preferable to a new competition. The Upgrade of performance of LERIMA has been satisfactory in the previous LERIMA movable 200 Direct Selection assignments 1.2.3 asset registry 000.00 (Paradigm) Development of Appropriate method for medium and high complexity New financial 500 QCBS - assignment. Competitive approach is required to achieve 1.2.4 products to 000.00 International quality and value for money 3|Page PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD promote market innovation Capacity building This is a small assignment of which preparing and evaluating of financial competitive proposals is not justified institutions and MSME`s to utilise asset-based 1.2.5 lending 50 000.00 CQS- National TA to Postbank This is a small assignment of which preparing and evaluating for development competitive proposals is not justified of business case for agricultural value chain finance, including market assessment and financing 150 CQS- 1.2.6 methodology 000.00 International Design and This is a small assignment of which preparing and evaluating implementation competitive proposals is not justified of a management information system (MIS) to support value- 200 CQS- 1.2.7 chain financing 000.00 International Review and This is a low value assignment with less than six months improve governance, institutional and 1.2.8 operational 50 000.00 IC- National 4|Page PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD features of the L- PCG Develop a This is a small assignment of which preparing and evaluating business case competitive proposals is not justified and financial model for portfolio 150 CQS- 1.2.9 guarantees 000.00 International Design and Appropriate method for large firm consultant assignment implement the over US$ 300 000.00. Competitive approach is required to portfolio achieve quality and value for money guarantee scheme including development of supporting documentation 2,000 QCBS- 1.2.10 and systems 000.00 International 100 This is a small assignment of which preparing and evaluating 1.2.11 Capacity building 000.00 CQS-National competitive proposals is not justified 2 800 000.00 Sub-Component 1.3 – Strengthening the Resilience of MSMEs to Climatic Shocks TA on disaster Appropriate method for such high value and complex risk financing assignment. Competitive approach is required to achieve including drafting quality and value for money of National Disaster Risk Finance Policy for 750 QCBS- 1.3.1 MoF 000.00 International 5|Page PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD Design and Appropriate method for less complex assignments. This is a development a small assignment of which preparing and evaluating database for competitive proposals is not justified informal MSMEs and integrate the database into the existing business 300 QCBS- 1.3.2 registry 000.00 International TA on design and Appropriate method for less complex assignments. This is a procurement of small assignment of which preparing and evaluating sovereign competitive proposals is not justified insurance backstop and co- financing of insurance 150 CQS- 1.3.3 premiums 000.00 International Draft regulations This is a low value assignment with less than six months to govern the duration operational activities of the existing MoF Contingency 1.3.4 Fund 75 000.00 IC - National 1,275, 000.00 COMPONENT 2: SCALING SUPPORT FOR ENTREPRENEURSHIP AND MSMES Sub-Component 2.1 - Establishing an Entrepreneurship Hub and Seed Financing Facility 6|Page PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD Procure a private Appropriate method for high value and complex assignment. operator to Competitive approach is required to achieve quality and support the value for money establishment of a sustainable Entrepreneurship Hub within the Tourism Information Craft 500 QCBS- 2.1.1 Centre 000.00 International Design and Appropriate method for less complex assignments. development of Preparing and evaluating competitive proposals is not an incubation 150 CQS- justified 2.1.2 support program 000.00 International Facilitate the This is a low value assignment with less than six months integration of the duration Lesotho Start-up Community within a wider regional Entrepreneurship 2.1.3 ecosystem 50 000.00 IC- National Procure a private Appropriate method for less complex assignments. operator to Preparing and evaluating competitive proposals is not establish and justified manage a seed financing facility and an associated acceleration 250 CQS- 2.1.4 program 000.00 International 7|Page PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES JUSTIFICATIONS FOR THE PROPOSED SELECTION DESCRIPTION ESTIMAT PROPOSED METHOD COMPON OF THE ED COST SELECTION ENT ASSIGNMENT ($) METHOD 950 000.00 Sub-Component 2.2 - Scaling Up of the Lesotho Enterprise Assistance Program Procure private Appropriate method for less complex assignments. sector service Preparing and evaluating competitive proposals is not providers to justified augment the delivery capacity 300 2.2.1 of LEAP PMU 000.00 QCBS-National Sub-Component 2.3 - Expanding SME Participation in High Potential Value Chains TA to set up a QCBS Appropriate method for high value and complex assignment. Horticulture 350 International Competitive approach is required to achieve quality and 2.3.1 Incubation Hub 000.00 Selection value for money PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS JUSTIFICATION S FOR THE ESTIMATED PROPOSED COMPON COST ($) PROCUREMENT SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD COMPONENT 1: ENHANCING G2B DIGITAL SERVICES AND STRENGTHENING PRIVATE SECTOR RESILIENCE Sub-Component 1.1 - Enhancing Government to Business Digital Services 8|Page PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS JUSTIFICATION S FOR THE ESTIMATED PROPOSED COMPON COST ($) PROCUREMENT SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD Efficient method for procuring limited quantities of readily ICT equipment for upgrade of the business Request For available off-the- 1.1.1 registration and licensing system at OBFC 70 000.00 Quotations shelf goods Medium value and local availability. The user will be able to specify detailed requirements to which bidders may respond in offering bids. ICT equipment for Upgrade of the LRA customs Value for money system, based on UNCTAD`s ASYCUDA World National will also be 1.1.2 System 150 000.00 Competitive Bidding achieved. Efficient method for procuring limited quantities ICT equipment for Upgrade of the LAA land registry of readily system and the MCC construction permitting Request For available off-the- 1.1.3 system 100 000.00 Quotations shelf goods Medium value and local availability. National The user will be 1.1.4 ICT equipment for G2B interoperability 200 000.00 Competitive Bidding able to specify 9|Page PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS JUSTIFICATION S FOR THE ESTIMATED PROPOSED COMPON COST ($) PROCUREMENT SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD detailed requirements to which bidders may respond in offering bids. Value for money will also be achieved. 520 000.00 Sub-Component 1.2 - Improving Access to Financial Services Efficient method for procuring limited quantities ICT equipment for upgrade of the credit of readily infrastructure system that facilitates access to Request for available off-the- 1.2.1 business financing 100 000.00 Quotations shelf goods Efficient method for procuring limited quantities ICT equipment for upgrade of LERIMA movable of readily assets and integration of data from motor vehicle Request for available off-the- 1.2.3 and company registries 100 000.00 Quotations shelf goods Efficient method for procuring limited quantities of readily ICT equipment to support implementation of MIS Request for available off-the- 1.2.4 for Lesotho Post bank value-chain financing 100 000.00 Quotations shelf goods 10 | P a g e PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS JUSTIFICATION S FOR THE ESTIMATED PROPOSED COMPON COST ($) PROCUREMENT SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD Efficient method for procuring limited quantities of readily Request for available off-the- 1.2.5 ICT equipment to support L-PCG 100 000.00 Quotations shelf goods 400 000.00 Sub-Component 1.3 – Strengthening the Resilience of MSMEs to Climatic Shocks COMPONENT 2: SCALING SUPPORT FOR ENTREPRENEURSHIP AND MSMES Sub-Component 2.1 - Establishing an Entrepreneurship Hub and Seed Financing Facility Medium value and local availability. The user will be able to specify detailed requirements to which bidders may respond in offering bids. Value for money Procure equipment and furniture for the National will also be 2.1.1 Entrepreneurship Hub 300 000.00 Competitive Bidding achieved. Sub-Component 2.2 - Scaling Up of the Lesotho Enterprise Assistance Program Efficient method for procuring Request for limited quantities Procure ICT equipment and furniture 70 000.00 Quotations of readily 11 | P a g e PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS JUSTIFICATION S FOR THE ESTIMATED PROPOSED COMPON COST ($) PROCUREMENT SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD available off-the- shelf goods Sub-Component 2.3 - Expanding SME Participation in High Potential Value Chains Medium value and local availability. The user will be able to specify detailed requirements to which bidders may respond in offering bids. Value for money Procure ICT equipment and furniture for National will also be 2.3.1 Horticulture Incubation Hub 300 000.00 Competitive Bidding achieved. COMPONENT 3: PROJECT MANAGEMENT IMPLEMENTATION SUPPORT Efficient method for procuring limited quantities of readily Request for available off-the- 3.1.1 ICT equipment and furniture for PMU 100 000.00 Quotations shelf goods Medium value and local availability. The user will be National able to specify 3.1.2 Procure vehicles for PMU and Vehicle 150 000.00 Competitive Bidding detailed 12 | P a g e PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS JUSTIFICATION S FOR THE ESTIMATED PROPOSED COMPON COST ($) PROCUREMENT SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD requirements to which bidders may respond in offering bids. Value for money will also be achieved. PROCURMENT PLAN TEMPLATE FOR SELECTION OF WORKS COMPON ESTIMATED PROCUREMENT ENT DESCRIPTION OF THE ASSIGNMENT COST ($) METHOD Sub-Component 2.3 - Expanding SME Participation in high Potential Value Chain Medium value and local availability. The user will be able to specify detailed requirements to which bidders may respond in offering bids. Value for money National will also be 2.3.1 Refurbishment of the Horticulture Incubation Hub 250 000.00 Competitive Bidding achieved. COMPONENT 3: PROJECT MANAGEMENT IMPLEMENTATION SUPPORT 13 | P a g e PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS JUSTIFICATION S FOR THE ESTIMATED PROPOSED COMPON COST ($) PROCUREMENT SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD Efficient method for procuring limited quantities of readily Request for available off-the- 3.1.1 Partitioning of New PMU office space 50 000.00 Quotations shelf goods 14 | P a g e CHAPTER 2 2.0 OVERVIEW OF COUNTRY, BORROWER AND MARKET PLACE 2.1 Operational Context This section provides an overview of the context in which the project will be implemented and the conditions under which the procurement process will take place. It is essentially based on a simplified Governance, Economic, Sustainability and Technological (GEST analysis as suggested in the procurement guidance: Project Procurement Strategy for Development Short Form Guidance (World Bank:2017). 2.1.1 Governance Aspects Lesotho’s private sector is largely concentrated in two sectors – mining and textiles/apparel manufacturing – and economic diversification has proven challenging due to a lack of competitiveness. The two sectors account for 84 percent of all formal sector employment and over two-thirds of all exports. Both sectors have experienced challenges in recent years. Textile and apparel exports have been declining due to competitiveness challenges and Kenya has overtaken Lesotho as the leading apparel exporter to the United States under the African Growth and Opportunity Act (AGOA). Total employment in the export manufacturing sector dropped from a peak of 43,500 in February 2020 to a low of 31,000 in April 2020 before rebounding to 39,000 in September 2020.1 It was reported that an additional 6,000 workers had been laid off in 2021. Job losses in the textile/manufacturing sector have had a significant impact on women and on widening gender gaps in labour market outcomes in Lesotho. Women comprise 80 percent of the approximately 40,000 textile workers in Lesotho and an increasing 1 LNDC survey of 64 firms in eight industrial estates, November 2020; most of these factory workers are women 15 | P a g e proportion of those who migrate to South Africa for jobs in the textile industry.2 The pandemic has exposed the underlying challenges that are stifling the export competitiveness of the manufacturing sector as well as exposing the vulnerable position of women workers in the sector, who suffer from occupation segregation across the entire spectrum of labour market opportunities occupying lower-skilled jobs compared to men, even in sectors such as manufacturing where they predominate. Lesotho’s mining sector is entirely dependent on diamond exports which have faced declining demand in recent years. Lesotho’s business environment is still weak despite recent reforms, with political instability, tax rates and practices of the informal sector emerging as the top three constraints for firms. The Second National Strategic Development Plan (NSPD II) (2019-2023) identified an “uncompetitive business environment” as one of the key binding constraints on the growth of private enterprises, adversely affecting both FDI and local micro, small, and medium enterprises (MSMEs). Recent reforms include new legislation for business registration and licensing and secured lending as well as starting adoption of digital systems and procedures in trade facilitation, land administration, and construction permits, all supported under the World Bank’s Second Private Sector Competitiveness and Economic Diversification Project (PSCED2), which closes in June 2022. However, weak regulations and inadequate institutional capacity hinder the effective implementation of these reforms necessary for meaningful impact. Lesotho’s ranking in the Global Competitiveness Index dropped from 123 to 131 out of 141 countries (from 2014 to 2019), and the Logistics Performance Index ranking also dropped from 133 to 139. In the most recent Enterprise Survey, the top constraints faced by firms are (in order of severity): (i) political instability, (ii) tax rates, (iii) practices of the informal sector, (iv) access to finance, (v) crime, (vi) theft and disorder, (vii) access to land, (viii) electricity (power supply), (ix) corruption (x) tax administration, and (xi) customs and trade 2 Botea, Compernolle, and Chakravarty 2018 16 | P a g e regulations.3 These challenges have manifested in different ways. For example, insolvency takes 2.6 years with a recovery rate of 28 cents per dollar compared to 2 years and 43 cents of recovery for the rest of the SACU region4 and the onerous licensing regulations have left local wool and mohair farmers with just one broker through whom they can sell their production. 3 World Bank Enterprise Survey, 2016 4 IMF Data 17 | P a g e 2.1.2 Economic Aspects Despite being a lower-middle income country, Lesotho experiences persistently high levels of unemployment, informality, inequality, and poverty, which have been further exacerbated by the Covid-19 pandemic. GDP growth has steadily worsened over the past decade, from a peak of 6.3 percent in 2012 to -11.1 percent in 2020, resulting in a 12 percent decline in GDP per capita from 2016 to 2020 Lesotho’s poor economic performance has been the result of compounding factors including declining revenues from the Southern African Customs Union (SACU)5, recurrent climate related shocks that have drained fiscal resources6, a high public sector wage bill that has inhibited spending on development objectives, and contraction of key economic sectors (manufacturing and tourism) due to the Covid-19 pandemic. Unemployment is at 22.5 percent7, and while the poverty rate in Lesotho fell from 56.6% to 49.7% between 2002 and 2017, economic vulnerability persists with more than 75% of the population either poor or vulnerable to poverty, driven in large part by exposure to climatic shocks. Declines in remittances due to Covid-19 related border restrictions have further exacerbated poverty. Although income and other measures of inequality have fallen, Lesotho remains one of the most unequal countries in the world.8 Overall, Lesotho’s economic and social development is not commensurate with the country’s lower- middle-income-status.9 The public sector has a disproportionate role in the economy, crowding out private participation and resulting in a weak and largely informal private sector. The government has been the main driver of economic activity, with public spending accounting for 60 percent of GDP and with public sector 5 SACU revenues fell from 30% of GDP in FY2012/13 to 17.7% of GDP in FY2017/18 and are expected to decline further to 15.2% of GDP in FY 2019/20. 6 The average annual cost of disaster response is estimated at US$19.3 million, or 1.6 percent of the total budget expenditure in the 2019/20 fiscal year. 7 22.5 percent unemployment (strict definition) or 38.3 percent (expanded definition) in 2019. Systematic Country Diagnostic. World Bank (Forthcoming) 8 Lesotho Poverty Assessment. World Bank (2019). 9 IMF Article IV Consultation (2019) 18 | P a g e investment levels averaging around 29 percent of GDP since 2010, both figures amongst the highest in the world. The government’s contribution to GDP now far exceeds that of the textile and apparel industry, which is the largest private sector industry in Lesotho. Lesotho’s public sector wage bill (as a percentage of GDP) is one of the highest in the world and has crowded out private sector employment. Public sector workers earn an average monthly salary that is approximately seven times higher than the minimum wage of a skilled worker in the textile sector.10 The recent Mid-Term Budget Review projects the compensation of employees to account for 45.9 percent of total government expenditures for 2020/21. Core inflation, which excludes the CPI suppliers with extreme price changes, however, decelerated from 4.2 percent in June 2021 to 3.9 percent in July 2021. The decline was broad-based but major contributors were food and non-alcoholic beverages, transport, housing, water, electricity, gas and other fuels and alcohol and tobacco components. The disinflation during the review period reflected declining international food prices due to better cereal production from the United States and Argentina and cancelled grain import orders from China. In addition, the exchange rate appreciation of South African Rand against the US. Dollar contributed to falling domestic prices, amid favourable harvest conditions, domestic availability of grain and limited food import demand. (Central Bank of Lesotho Monthly Economic Review (July 2021). 2.1.3 Sustainability Aspects Sustainable procurement is a process which incorporates sustainability considerations throughout the procurement process in order to achieve optimal value for money in delivering development objectives. (Sustainable Procurement an introduction for practitioners to sustainable procurement in World Bank IPF projects November 2016). The United Nations Environment Programme (UNEP) defines Sustainable Public Procurement 10 Lesotho Poverty Assessment. World Bank (2019) 19 | P a g e (SPP) as “a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment” (United Nations Environment Programme, 2015). The project is supporting broad reforms on financial inclusion and the private sector. Such efforts are meant to strengthen access to finance, create jobs, and support export-led growth. Sustainability will be supported through three main avenues, system-level interventions, infrastructure development, and skills development/capacity building. a) System-level Interventions will Promote Structural Reform. System-level interventions include investments to enhance the interoperability of government IT systems that facilitate private sector activity, implementation of a government payment gateway to support G2B digital payments, investments to strengthen credit infrastructure, and the establishment of a private sector window within the contingency fund and procurement of sovereign insurance (which will be co-financed on a sliding basis, so the cost is increasingly transferred to the budget over the life of the project). b) Establishment of Infrastructure: The project will support the establishment of a sustainable entrepreneurship hub, seed financing facility, infrastructure for the horticulture incubator program. This infrastructure will exceed the life of the project, enabling activities to continue. c) Technical Assistance will Build Skills Amongst the Workforce and Government Capacity. Technical assistance will be provided to the Government to address deficiencies and build interoperability and strengthen disaster risk financing. For the workforce, skills development initiatives will build technical, supervisory and management capacity in high potential sectors and capacity of MSMEs 20 | P a g e and entrepreneurs. Building capacity at the government level will enable line ministries and agencies to continue project activities after the completion of the project. Skills development is intended to equip the workforce with the skills required at the labour market, thereby enabling them to find employment. 2.1.4 Technological Aspects Digital transformation can foster economic growth, reduce poverty, increase productivity and create jobs. However, its potential in underutilised in Lesotho. Whereas good progress has been made in improving digital infrastructure, adoption and use of digital technology is lagging. Around two thirds of the population are not regularly using the internet, pointing to a wide digital divide. As a result, the ability of the government to take advantage of the internet connectivity and digital channels of service delivery for COVID-19response is limited. Adoption and use of digital technology should be accelerated to meet the needs under the pandemic, but also for long-term recovery and development. In 2018, approximately two-thirds of the population were not using the internet regularly even though 97 percent of the population was covered by a 3G network and 72 percent by the 4G network signal. Lesotho ranked 133 on the 2017 ITU ICT Development Index, behind South Africa (92), Botswana (105) and Namibia (118). This ranking was driven by limited use of, and demand placed on the extensive broadband infrastructure. Digital public platforms such as digital ID systems and digital financial services are key for improving efficiency, quality and inclusiveness of the public and private services. Though several G2B services have been developed and adopted with success, the government may need to consider adopting more coordinated and strategic approach towards advancing digital government. Investments in technology may need to be put on shared interoperable infrastructure and services that can be leveraged across various government entities. Legal and regulatory gaps especially concerning cybersecurity, electronic transactions and e-commerce should be fixed. A road map for adopting electronic payments across all government services 21 | P a g e should be developed and the digital financial services market further enhanced. Lesotho is characterised with private sector that makes limited use of digital technologies. In the private sector, digital technology can change the way economies of scale are achieved, particularly through e-commerce and digital payments. The digital economy may provide the better matching of buyers and sellers in a competitive marketplace. The digital economy offers potential for enhanced service delivery in the public sector, but the Lesotho government’s efforts in this field appear fragmented and slow moving. Improved digital infrastructure can only achieve the desired transformational impact if combined with a capable public sector, investments in digital skills and literacy, increased access to digital financial services, and ramped up support for digital start-ups and existing businesses. Though Lesotho is characterised with weak business environment induced by weak government regulations and policies and inadequate institutional capacity to support implementation of reforms that curtail the weak environment, the success of the PSECDP II in implementing reforms supporting private sector development is an indication of the willingness of the country to eliminate these constraints and enhance its rating. The environment within which the CAFI project will be implement is deemed favourable and pose no potential risk that may affect the efficiency and the effectiveness of the project implementation. As mentioned above, the low level of inflation and stable exchange rate will support efficient procurement of both goods and services that would create value for money. Nevertheless, the project encompasses enormous digital transformation that may call for project implementing agencies to prepare accurate technical specifications to ensure relevant purchase of equipment and technology to meet the project development objectives. “World Bank. 2020. Lesotho Digital Economy Diagnostic. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/33881 License: CC BY 3.0 IGO.” 22 | P a g e 2.2 Assessment of Borrower Capability and Project Implementation Unit (PIU) The Project governance is an “oversight function that is aligned with the organization's governance model and encompasses the project life cycle,” this is according to A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition (Project Management Institute, 2013, p. 34). There are two critical elements in this statement that need to be emphasised: • Alignment with organization's governance: There needs to be an understanding of the project's environment to ensure that there is a right fit with the established Project's governance. This alignment is a crucial factor and has been considered when defining (1) the project governance framework, (2) roles and responsibilities and (3) stakeholder engagement and communication. The project governance structure is similar to the one used in the implementation of PSCEDP II, which has proven to be effective. The PSCEDP II structure has maintained constant flow of information from the Project Management Unit to all key stakeholders. The proposal is therefore to adopt a strengthened version of the PSCEDP II governance structure (to match the project size) as it ensures that all key stakeholders that are critical for the successful implementation of the project are represented; The Department of Planning under the Ministry of Trade and Industry (MTI) will remain the implementing agency for the CAFI project as MTI already has extensive experience in implementing WB-financed projects. Critical to the governance structure are the following: a) Project Steering Committee 23 | P a g e The Steering Committee will provide advice, ensures delivery of the project outputs and the achievement of project outcomes. The committee is responsible for policy decisions to support the project approvals and implementations, review project progress and facilitates for implementation by the PIUs. The steering committee helps to steer the project through from start to completion. The committee: • Reports to the stakeholders. • Consists of representatives of key Stakeholder Ministries (Trade and Industry, Finance, Development Planning, Agriculture and Food Security, Tourism, Environment and Culture etc.), relevant State- Owned Enterprises (Lesotho National Development Corporation, Basotho Enterprise Development Corporation and Lesotho Tourism Development Corporation), Maseru City Council and critical regulators (Central Bank of Lesotho, Land Administration Authority and Lesotho Revenue Authority); • Reports to GoL (Ministry of Finance, Ministry of Trade and Industry and others) and WB on project implementation status; • Coordinate other ministries around project implementation; • The Principal Secretary of the Ministry of Trade and Industry shall chair the Steering Committee; and • The Steering Committee receives reports from the Project Manager. b) Client/Contracting Authorities • The contracting authority is the Ministry of Trade and Industry. • Signs all contracts with private entities to implement the project (works, services, goods); • Authorise payments to all private entities that have been contracted. • Report to GoL (Ministry of Finance and others) and WB on project implementation status; and • Coordinate other ministries around project implementation. 24 | P a g e c) Project Management Unit (PMU)/ Project Implementation Unit • As the frontline actor, PIU plans, executes, monitors, administers and manages the project representing the project implementing agency (MTI); • Reporting to the Ministry of Trade and Industry and Stakeholder in the format agreed with the Ministry of Development Planning; • Establish financial accounting and control systems and ensure accurate and timely report submissions and funds flow from WB and onwards to the implementing agencies. Financial status and forecast, disbursements; • Procurement and contracting of private entities; • All contracts management (works, services, goods); • Supervise, coordinate and monitor the work of PIUs for implementation of project activities; and • Contribute to institutional analysis if necessary and requested. c) Project Manager (PM) The Project Manager is responsible for the day-to-day implementation of the project through performing the following: • Reporting to MTI and the Steering Committee; • Financial status and forecast, disbursements; • Procurement and contracting of private entities; • Manage Human Resources of the Project; • Oversee contracts negotiations; • Manage the assets of the project; • All contracts management (works, services, goods); • Physical monitoring of works (technical, E&S etc…); and • All other duties as stipulated in the Terms of Reference. A further assessment of the Procurement Capability within the Ministry of Trade and Industry (PMU) has been done. The Ministry through the PMU/PIU 25 | P a g e has over the past fifteen years successfully implemented similar projects including: a) The First Private Sector Competitiveness and Economic Diversification Project (PSCEDP I) b) The Second Private Competitiveness and Economic Diversification Project (PSCEDP II) and c) PSCEDP II - Additional Financing (on-going). Procurement Risk Assessment: The procurement risk assessment has taken into considerations the Strengths, Weaknesses, Opportunities and Threats of the operational context of the implementing agencies. The project will be implemented by the same Project Management Unit (PMU) that is currently implementing the World Bank financed Second Private Sector Competitiveness and Economic Diversification Project (PSCEDP II) under MTI. The PSCEDP II PMU has a good track record of many years and has established project implementation capacity as well as working relationships with key agencies and Ministries across the Government. The PSCEDP II is ending in June 2022 thereby allowing the PMU to be available and ready for CAFI project implementation from the outset of the project. The PMU will be responsible for all fiduciary aspects of the project including FM and procurement activities. The MTI and its PMU, having prior experience of working on PSCED and PSCED II projects, are expected to implement the project smoothly. However, the fact that there will be more project beneficiaries under each component and subcomponent, could pose coordination risk due to the complexity of the project. Based on the existing procurement capacity within the MTI/PMU and taking into consideration one additional Procurement Officer to be recruited by the Project the procurement risk is rated Moderate. This rating has also considered the fact that the current project does not have any IPF component involving complex or high value contracts. It is also expected that all the procurement activities envisaged under the new project (CAFI) will be simple and small value contracts. Taking all these circumstances into consideration, the four major capacity limitations or risks identified at the moment are: (i) lack of prior experience of implementing IPF procurement procedures; (ii) coordination challenge as implementation of components and subcomponents involve many beneficiaries; (ii) Implementation capacity 26 | P a g e gap within the different beneficiaries and (iii) lack of practices on good contracts implementation management. 2.3 Project Procurement Unit Structure The Procurement Unit within the Project Management Unit (PMU) is staffed with qualified procurement professionals i.e. The Procurement Manager holds MSc Degree in Supply Chain Management with more than ten (10) years’ experience in procurement, while the Procurement Officer has bachelor’s degree in economics with seven years’ experience. TABLE 2: PIU Procurement Staff Supply Chain Staff Experience working on Bank Position Qualificati Experienc financed Projects ons e procurement Procurem MSc in Over 10 The Procurement Manager has ent Supply years’ held a senior procurement Manager Chain, BA experience management positions since Degree in in 2017. She managed and Business procureme administered procurement Administrati nt. services under the Lesotho on, government’s capital projects Chartered and donor funded projects Institute of including AfDB and World Bank Procuremen supported projects. t and Supply (Professiona l Diploma Level 6) Procurem BA Over 7 The Procurement Officer has over ent Economics years’ 7 years’ experience working on Officer and experience GoL capital projects that are Chartered in supported by development Institute of procureme partners including AfDB and the Procuremen nt. World Bank. In addition, the t and Supply officer has worked as a (Diploma, Procurement Officer for the level 4) World Bank financed PSCEDP since 2021. 27 | P a g e 2.4 Market Analysis The objective of market research and analysis is to develop a good understanding of the market sectors that have been identified as having the potential to bid for the goods, services, and/or works required by the Project. This is to ensure the eventual Procurement Approach maximizes the likelihood of the right suppliers participating, and the right supplier being selected thereby minimizing failed procurement processes due to no bids, or the wrong types of bids. Supplier Preferencing identifies the approaches suppliers use based on their segmentation of customers. The table below provides a view of a supplier’s likely approach to the project in each category. 28 | P a g e TABLE 3: Supplier Preferencing Model SUPPLIER PREFERENCING MODEL Relative Supply value of Account positioning Compon the Attractiven ent Description of the assignment Business ess COMPONENT 1: ENHANCING G2B DIGITAL SERVICES AND STRENGTHENING PRIVATE SECTOR RESILIENCE ($20.25 MILLION) Sub-Component 1.1: Enhancing Government to Business Digital Services ($ 6.5 million) 1.1.1 Upgrade of the business registration and licensing system at OBFC High High core Upgrade of the LRA customs system, based on UNCTAD`s ASYCUDA core 1.1.2 World System High High Upgrade of the LAA land registry system and the MCC construction core 1.1.3 permitting system High High 1.1.4 Design and development of the G2B interoperability framework Low High Developmental 1.1.5 Design and development of a G2B payment gateway Low High Developmental Sub-Component 1.2: Improving Access to Financial Services ($ 3.0 million) Upgrade of the credit infrastructure system that facilitates access to Developmental 1.2.1 business financing low High Development of credit scoring system to enhance the utility of credit Core 1.2.2 reporting High High 1.2.3 Upgrade of LERIMA movable asset registry High High Core 1.2.4 Development of New financial products to promote market innovation Low High Developmental Capacity building of financial institutions and MSME`s to utilise asset- Core 1.2.5 based lending High High TA to Postbank for development of business case for agricultural value Core chain finance, including market assessment and financing 1.2.6 methodology High High Design and implementation of a management information system (MIS) Developmental 1.2.7 to support value-chain financing Low High 29 | P a g e Review and improve governance, institutional and operational features Core 1.2.8 of the L-PCG High High 1.2.9 Develop a business case and financial model for portfolio guarantees High High Core Design and implement the portfolio guarantee scheme including Core 1.2.10 development of supporting documentation and systems High High 1.2.11 Capacity building High High Core Sub-Component 1.3 – Strengthening the Resilience of MSMEs to Climatic Shocks ($ 10.75 million ) TA on disaster risk financing including drafting of National Disaster Risk Core 1.3.1 Finance Policy for MoF High High Design and development a database for informal MSMEs and integrate Developmental 1.3.2 the database into the existing business registry Low High TA on design and procurement of sovereign insurance backstop and Developmental 1.3.3 co-financing of insurance premiums Low High Draft regulations to govern the operational activities of the existing Core 1.3.4 MoF Contingency Fund High High COMPONENT 2: SCALING SUPPORT FOR ENTREPRENEURSHIP AND MSMES ($ 29.5 MILLION) Sub-Component 2.1 - Establishing an Entrepreneurship Hub and Seed Financing Facility (12.5 million) Procure a private operator to support the establishment of a Core sustainable Entrepreneurship Hub within the Tourism Information Craft 2.1.1 Centre High High 2.1.2 Design and development of an incubation support program High High Core Facilitate the integration of the Lesotho Start-up Community within a Core 2.1.3 wider regional Entrepreneurship ecosystem High High Procure a private operator to establish and manage a seed financing Core 2.1.4 facility and an associated acceleration program High High Sub-Component 2.2 - Scaling Up of the Lesotho Enterprise Assistance Program ($ 5.0 million) Procure private sector service providers to augment the delivery Developmental 2.2.1 capacity of LEAP PMU Low High Sub-Component 2.3 - Expanding SME Participation in high potential Value Chains ($ 12 million) 2.3.1 TA to set up a Horticulture Incubation Hub Low High Developmental 30 | P a g e Summary of Procurement Market Analysis for the Project: Considering the local, Regional, and international market situations and the nature and value of the procurement activities under this project, the market risk is low and favourable. Conducting further detail market research for other innovative market approaches and selection methods is not proportional. Therefore, the default selection methods are fit-for-purpose as indicated in table 6, Chapter 6 of this PPSD. 31 | P a g e 32 | P a g e CHAPTER 3 3.0 PROJECT PROCUREMENT RISK ANALYSIS TABLE 4: Project Procurement implementation capacity (MoTI) Risk Analysis Risk Probability Impact Risk Rating Description of Mitigation of Measure occurrence (Major, (High, (Very likely, minor, Substantial, likely, unlikely, negligible, or Moderate, Low or not not or Not applicable) applicable) Applicable) 1. Accountability for Procurement Unlikely Major Moderate (2) Prepare and adopt a Project Decisions Procurement Manual (PPM), that identifies lines of responsibilities. 2. Internal Manuals and Clarity of Unlikely Minor Moderate (3) Develop a project the Procurement Process procurement manual that is comprehensive and easy to follow and should be accessible to all procurement staff. 3. Record Keeping & Document All procurement documents Management Systems Unlikely Minor Moderate (2) will be kept in procurement office with contract register manual and should be accessible to all procurement staff. 4. Procurement Planning Likely Major High (4) Prepare and adopt a project operation manual (POM), including a chapter on procurement comprising of 33 | P a g e Risk Probability Impact Risk Rating Description of Mitigation of Measure occurrence (Major, (High, (Very likely, minor, Substantial, likely, unlikely, negligible, or Moderate, Low or not not or Not applicable) applicable) Applicable) clear rules, step by step procedures and responsibility, timeline requirements for procurement activities. All Procurement assignment should be uploaded in STEP. 5. Bidding documents, qualification/ Likely Minor Substantial (3) Follow Bank’s Procurement shortlisting/ evaluation criteria templates. Standard bidding documents, evaluation forms and evaluation criteria should be availed and provided in the bidding document. 6. Staffing Unlikely Major Moderate (2) Recruitment of qualified and experienced staff and require staff involved in procurement to declare their interest and sign a declaration form. 7. Advertisement, Pre-bid/proposal Unlikely Minor Moderate (2) Ensure that all adverts, pre Conference and Bid/Proposal bid/proposal conference and Submission bid/proposal submissions should follow the banks procurement procedures and regulations. 34 | P a g e Risk Probability Impact Risk Rating Description of Mitigation of Measure occurrence (Major, (High, (Very likely, minor, Substantial, likely, unlikely, negligible, or Moderate, Low or not not or Not applicable) applicable) Applicable) 8. Evaluation and Award of contract Unlikely Major Moderate (2) Recruit qualified technical evaluation team and follow the bank`s procurement procedure. 9. Review of Procurement Decisions Unlikely Major Moderate (2) Establish a procurement and Resolution of Complaints complaint handling mechanism consistent with the Government Procurement Rules and Regulations and in line with the World Bank`s requirements. 10. Contract Management and Likely Minor Substantial (3) Develop a contract Administration management strategy and contract management plan 11. Procurement Oversight Unlikely Major Moderate (2) Procurement audits should be carried out regularly. 12. Procurement functional Unit Unlikely Major Moderate (2) Recruit qualified performance procurement staff with experience in implementation of World Bank financed project procurement. Overall Project Procurement Risk 28/12 =2.3 ~~ (2) = Moderate rating 35 | P a g e Note: The risk ratings in fourth column of the above table are determined using the following formulation: Probability of Impact Risk Rating Occurrence Likely or Equal Major High Likelihood Likely or Equal Minor Substantial Likelihood Likely or Equal Negligible Moderate Likelihood Unlikely Major Moderate Unlikely Minor Moderate Unlikely Negligible Low Not applicable Not Applicable Not Applicable 36 | P a g e Procurement Risk Mitigation Measures: The MTI will have overall responsibility of procurement under the project. Based on the above preliminary procurement implementation risks identification, the mitigation measures may also include: (i) provision of reorientation/training to the PMU on Bank’s procurement procedures and contract management, including use of STEP platform; (ii) putting in place simple, but efficient, procurement and contract management mechanism (tracking system);(iii) Develop Project Operational Manual/Project Procurement Strategy for Development (PPSD) that would assist the practitioners on procurement routines and (iv) strengthen the PMU based on the needs of the new project. More frequent World Bank implementation support missions with the aim of providing closer support and monitoring the performance of PMU and its Procurement team’s performance would also add value. Record Keeping: All records pertaining to award of tenders, including bid notification, register pertaining to sale and receipt of bids, bid opening minutes, bid evaluation reports and all correspondence pertaining to bid evaluation, communication sent to/with the World Bank in the process, bid securities, and approval of invitation/evaluation of bids by the management would be retained by the Procurement Unit and also uploaded in the STEP for Post ante review and independent procurement audit, as necessary. Operational Context, SWOT Analysis: According to CIPS (2012) Strengths, weaknesses, opportunities, and threats (SWOT) analysis is a technique of corporate appraisal, used to assess the internal resources of an organisation (or function or project) to cope with and/or capitalise on factors in the external environment in which it operates. This tool will be used to assess the PMU’s capability. A summary of the strengths, weaknesses, opportunities, and threats regarding the capacity of the PMU is presented as follows: 37 | P a g e 38 | P a g e STRENGTHS The Project Management Unit (PMU) has extensive experience in executing projects funded by the World Bank and the African Development Bank (AfDB) and has both tangible and non-tangible resources to execute projects. The unit already has some human capital with relevant skills set to execute the project and the Project Manager has successfully managed the PSCEDP I and PSCEDP II and PSCEDP II – Additional Financing. The Project Manager is supported by an experienced competent fiduciary management team that has more than 10 years’ experience. The project also has experience in stakeholder and private sector engagements and administration of matching grants. The PMU already has office space, furniture and ICT equipment which are in good condition to start the new project. The responsible Ministry also has prior operational experience in implementation of World Bank financed projects. WEAKNESSES The procurement staff lacks operational capacity to administer procurement of multiple packages at the same time in a timely manner. The operational capacity is limited by under-staffing of the Procurement Unit. OPPORTUNITIES The Project has tools and systems in place that enables procurement to be carried out effectively, efficiently, and economically. All procurements under the project will be carried out in accordance with the World Bank’s Procurement Regulations for Investment Project Financing Recipient’s- Procurement in investment Project Financing Goods, Works, Non-Consulting and Consulting services. The project will also be subject to the guidelines on preventing and combating fraud and corruption in projects Financed by IBRD Loans and IDA Credit and grants. The Systematic Tracking Exchange Procurement (STEP) system will be used to track all procurement planning, execution, and contract management. The PMU will also recruit additional procurement staff to strengthen the capacity of the Procurement Unit. 39 | P a g e THREATS The main threat is political instability, which may hider implementation of important policies and regulations. The governing coalition remains fragile with considerable risk of frequent change in administration during project implementation. Political instability can also deter new international investors and experienced service providers. Limited availability of service providers can in turn delay procurement processes and may lead to selection of inexperienced consultants. Strength: Weakness 5. PIU’s Prior experience of similar • Limited manpower/staff projects implementation for increased works 6. Well-functioning PMU having • Lack of experience on necessary facilities and complex contracts motivated team procurement and 7. Availability of tested and well- contracts implementation functioning working procedures management and well-defined responsibility • Lack of business matrix performance standard Opportunities Threats • Technical support and training • Political instability opportunities from the • Weak local/national Development partners (world market Bank & others). • Application and use of good practice standard procurement documents of the development partners (World Bank) including use of STEP for tracking procurement transactions. 40 | P a g e • Availability of providers in the region, like SA. Key Risks Identified from operational context and agency capacity: i. MoTI-PIU institutional performance capacity limitations. ii. Inadequate local market. iii. Political instability and weak macro-economic performance 41 | P a g e CHAPTER 4 4.0 STAKEHOLDER ANALYSIS The table below presents analysis of key stakeholders responsible for implementation of various components of the project towards achievement of the Project Development Objective: TABLE 5: Stakeholder Analysis STAKEHOLDER MANAGEMENT PLAN Interest in Stakeholder Name the Stakeholder Objectives from the Stake Holder Management Project11 Procurement Approach R A C I World Bank - - - Y • To ensure that project procurement in C compliance with procurement objectives. Consult and Keep informed and comply Ministry of Trade and Y Y Y Y • MTI is the implementing agency MTI is responsible and accountable Industry and should be consulted and informed Maseru City Council - - Y Y • Project Implementing agency for upgrade MCC is consulted and informed of the construction permitting system Basotho Enterprise - - Y Y • Stakeholder in the implementation of BEDCO is consulted and informed Development Corporation subcomponent 2.1 and 2.2 of the project. (BEDCO) 11 Responsible, Accountable, Consulted, Informed 42 | P a g e STAKEHOLDER MANAGEMENT PLAN Interest in Stakeholder Name the Stakeholder Objectives from the Stake Holder Management Project11 Procurement Approach R A C I Lesotho Revenue - - Y Y • Stakeholder in the implementation of LRA is consulted and informed Authority (LRA) subcomponent 1.1 and 1.2 and 1.3 of the projects. One Stop Business - - Y Y • Stakeholder in the implementation of OBFC is consulted and informed Facilitation Centre (OBFC) subcomponent 1.1. Ministry of Small Business - - Y Y • Stakeholder in the implementation of MSBDC is consulted and informed Development and subcomponent 1.3, 2.1 and 2.2 of the Cooperatives project. Prime Minister’s Delivery - - Y Y • Stakeholder in the implementation of PMDU is consulted and informed Unit (PMDU) component 3 Ministry of Labour and - - Y Y • Stakeholder in the implementation of MoLE is consulted and informed Employment subcomponent 2.3. Ministry of Public Works - - Y Y • Stakeholder in the implementation of MPW is consulted and informed subcomponent 2.3. Ministry of Transport - - Y Y • Stakeholder in the implementation of MoT is consulted and informed subcomponent 2.3. Lesotho National - - Y Y • Stakeholder in the implementation of LNDC is consulted and informed Development Corporation subcomponent 2.3. (LNDC) Central Bank of Lesotho - - Y Y Stakeholder in the implementation of CBL is consulted and informed (CBL) subcomponent 1.2 and 1.3 of the project. National University of - - Y Y • Stakeholder in the implementation of MUL is consulted and informed Lesotho (NUL) subcomponent 2.3. 43 | P a g e CHAPTER 5 5.0 PROCUREMENT OBJECTIVES Based on the Strategic Analysis, Risk Assessment and Stakeholder Analysis, the five key Procurement Objectives that if achieved, would help support the delivery of the Project Development Objective are as follows: • Packaging based on market analysis to aim for an average of 8 bidders’ participation in each bid. • Foster competition to enhance achievement of VfM by familiarizing the vendors with the SBDs for international approach to market through vendor conferences and pre-bid meetings and site visits, and suitably modifying and customizing the bidding documents and conditions such as qualification requirements and application of bid securities with the objectives receiving competitive bid prices which are within approximately 15% of client’s cost estimate. • Implementation of works and services in time to ensure that 95 percent of bids are awarded without extending bid validity and that rebid in not more than 5 percent cases, for all procurements. • Awarding contracts to qualified, experienced, capable bidders so that 90 percent of contracts are executed within original allotted time; and • Contracts are completed with not more than 15 percent cost overruns by carrying out robust design at bidding stage. 44 | P a g e CHAPTER 6 6.0 PROCUREMENT APPROACH OPTIONS AND RECOMMENDATIONS This procurement strategy/approach is designed based on the project requirements, technical solutions, and market information, institutional capacity and experience of the Ministry of trade and Industry (MoTI). The Market approach and selection method proposed for each package has taken into considerations values, complexities, local market capacity and institutional experiences of MoTI to achieve better Value for Money (VfM) while supporting the project achievement of objectives its objectives. The project has no high value and complex contract packages as such. However, the PPSD has focused on separate packages for consultancy services and works using both international and national approach to markets with the objectives of fostering competitions to enable the PIU get best of what the market can offer. For certain unique packages, where open competition may not be the best-fit approach, Direct Selection (DS) has been proposed with clear justifications on why DS is found to be fit-for-purpose as against the default open competitive market approaches. The following activities are proposed for Direct Selection market approach for the reasons as indicated in the below table: Package/contract Reason why non-competitive market approach is Name of Proposed appropriate and departing from the preferred and supplier/consultant default competitive methods 45 | P a g e Consultancy Services for UNCTAD is uniquely and exceptionally qualified to upgrade UNCTAD is an eligible design and upgrade of the business registration and licensing system at OBFC as it firm under Bank’s business registration and was originally developed by them. It is also the case that financed projects. It is a the tasks represent a natural continuation of previous UN Agency based in East licensing system at OBFC work carried out by a consultant, where continuity in the and Southern Africa; technical approach, experience acquired, and continued professional liability of the same Consultant may make continuation with the initial Consultant preferable to a new competition. The performance of UNCTAD has been satisfactory in the previous assignment(s); Consultancy Services for design UNCTAD is uniquely and exceptionally qualified to upgrade UNCTAD is an eligible LRA customs system as it was originally designed and and upgrading of the LRA customs firm under Bank’s developed by them. The task represents a natural system, based on UNCTAD`s continuation of previous work carried out by a consultant, financed projects. It is a where continuity in the technical approach, experience ASYCUDA World System UN Agency based in East acquired, and continued professional liability of the same consultant may make continuation with the initial and Southern Africa; consultant preferable to a new competition The performance of UNCTAD has been satisfactory in the previous assignments Consultancy Service for Design Only ESRI is qualified and has experience of exceptional ESRI is an eligible firm worth for the upgrade of the LAA land registry system as and upgrading of the LAA land they designed and developed the system. The task under Bank’s financed registry system represents a natural continuation of previous work carried projects. It out by a consultant, where continuity in the technical approach, experience acquired, and continued professional is a South African liability of the same consultant may make continuation with company based in the initial consultant preferable to a new competition The 46 | P a g e performance of esri has been satisfactory in the previous Midrand 1685, Cnr New assignments Road. Consultancy Services for Only EXPERIAN is qualified and has experience of EXPERIAN is an eligible exceptional worth for the upgrade of the credit Design and upgrading of the infrastructure system as they designed and developed the firm under bank’s credit infrastructure system system. The task represents a natural continuation of financed projects. It is a previous work carried out by a consultant, where continuity that facilitates access to in the technical approach, experience acquired, and South African company continued professional liability of the same consultant may based in Stellenbosch, business financing make continuation with the initial consultant preferable to a new competition The performance of EXPERIAN has been Experian House, 3 satisfactory in the previous assignments Neutron Avenue, Techno PARK. Consultancy Services for Only Paradigm is qualified and has experience of PARADIGM is an eligible exceptional worth for the upgrade of the LERIMA movable Design and Upgrading of asset registry as they designed and developed the system. firm under bank’s LERIMA movable asset registry The task represents a natural continuation of previous work financed projects. It is a carried out by a consultant, where continuity in the technical approach, experience acquired, and continued company based in United professional liability of the same consultant may make States, New York. continuation with the initial consultant preferable to a new competition The performance of PARADIGM has been satisfactory in the previous assignments For works packages where designs have been completed and the client’s requirements are well defined, the selection methods would be RFB or RFQs, based on the package’s values. For works where there are conceptual designs and innovation can be introduced by the providers, the selection method will be RFP. The RFP method will also be used 47 | P a g e for selection of consultants. The selection method for supply and installation of software and hardware, as schedules of requirements and specifications are precisely defined by the ministry, the selection method will be RFBs. The table below presents the project market approach and procurement methods for consultancy services, procurement of goods and works. TABLE 6: Procurement Approach and Recommendation PROCURMENT PLAN FOR SELECTION OF CONSULTANCY SERVICES DESCRIPTION OF PROCURE CONTRA JUSTIFICATION FOR THE ESTIMATED COMPON THE MARKET MENT CT RECOMMENDED SELECTION COST ($) ENT ASSIGNMENT APPROACH METHOD TYPE METHOD COMPONENT 1 : ENHANCING G2B DIGITAL SERVICES AND STRENGTHENING PRIVATE SECTOR RESILIENCE Sub-Component 1.1 - Enhancing Government to Business Digital Services Upgrade of the UNCTAD is a UN Agency based in East business and Southern Africa; It is uniquely and 1.1.1 registration and 800 000.00 Direct exceptionally qualified to upgrade 48 | P a g e licensing system DS Lump business registration and licensing at OBFC Sum system at OBFC as it was originally developed by them. Upgrade of the UNCTAD is a UN Agency based in East LRA customs and Southern Africa. It is uniquely and system, based on DS exceptionally qualified to upgrade UNCTAD`s Lump LRA customs system as it was ASYCUDA World Sum originally designed and developed by 1.1.2 System 1 000 000.00 Direct them. ESRI is a South African company based in Midrand 1685, Cnr New DS Lump Road. It is qualified and has Sum experience of exceptional worth for Upgrade of the the upgrade of the LAA land registry LAA land registry system as they designed and 1.1.3 system 1 000 000.00 Direct developed the system. Design and Appropriate method for high value development of QCBS Lump and complex assignment. the G2B Sum Competitive approach is required to interoperability achieve quality and value for money 1.1.4 framework 1 600 000.00 International Appropriate method for high value and complex assignment. Design and Competitive approach is required to development of a QCBS achieve quality and value for money G2B payment Lump 1.1.5 gateway 1 500 000.00 International Sum 5 980 000.00 Sub-Component 1.2 - Improving Access to Financial Services Upgrade of the Lump credit Sum EXPERIAN is a South African company infrastructure based in Stellenbosch, Experian 1.2.1 system that 200 000.00 Direct DS House, 3 Neutron Avenue, Techno 49 | P a g e facilitates access PARK. It is qualified and has to business experience of exceptional worth for financing the upgrade of the credit infrastructure system as they designed and developed the system. Lump EXPERIAN is a South African company Sum based in Stellenbosch, Experian House, 3 Neutron Avenue, Techno PARK. It is qualified and has Development of DS experience of exceptional worth for credit scoring the development of the credit scoring system to enhance system as they designed the system the utility of credit 1.2.2 reporting 600 000.00 Direct Lump Paradigm is a company based in Sum United States, New York. It is qualified and has experience of exceptional worth for the upgrade of the LERIMA DS movable asset registry as they Upgrade of LERIMA designed and developed the system movable asset 1.2.3 registry 200 000.00 Direct Development of Lump Appropriate method for high value New financial Sum and complex assignment. products to Competitive approach is required to promote market achieve quality and value for money 1.2.4 innovation 500 000.00 International QCBS Capacity building Schedule Appropriate method for less of financial of complex assignments. Preparing and institutions and CQS Rates/Ti evaluating competitive proposals is MSME`s to utilise me- not justified asset-based Based 1.2.5 lending 50 000.00 National 50 | P a g e TA to Postbank for Schedule Appropriate method for less complex development of of assignments. Preparing and business case for Rates/Ti evaluating competitive proposals is agricultural value me- not justified chain finance, Based including market assessment and CQS financing 1.2.6 methodology 150 000.00 International Design and Lump Appropriate method for less complex implementation of Sum assignments. Preparing and a management evaluating competitive proposals is information not justified system (MIS) to support value- CQS 1.2.7 chain financing 200 000.00 International Review and Lump Low value assignment with a duration improve Sum less than six months governance, institutional and operational IC features of the L- 1.2.8 PCG 50 000.00 National Develop a Lump Appropriate method for less complex business case and Sum assignments. Preparing and financial model for evaluating competitive proposals is portfolio CQS not justified 1.2.9 guarantees 150 000.00 International Design and Lump Appropriate method for high value implement the QCBS Sum and complex assignment. portfolio Competitive approach is required to guarantee scheme achieve quality and value for money including development of 1.2.10 supporting 2,000,000.00 International 51 | P a g e documentation and systems Schedule Appropriate method for less complex of assignments. Preparing and CQS Rates/Ti evaluating competitive proposals is me- not justified 1.2.11 Capacity building 100 000.00 National Based 2 800 000.00 Sub-Component 1.3 – Strengthening the Resilience of MSMEs to Climatic Shocks TA on disaster risk Lump Appropriate method for high value financing including Sum and complex assignment. drafting of Competitive approach is required to National Disaster achieve quality and value for money Risk Finance Policy QCBS 1.3.1 for MoF 750 000.00 International Design and Lump Appropriate method for less complex development a Sum assignments. Preparing and database for evaluating competitive proposals is informal MSMEs not justified and integrate the database into the existing business QCBS 1.3.2 registry 300 000.00 International TA on design and Lump Appropriate method for less complex procurement of Sum assignments. Preparing and sovereign evaluating competitive proposals is insurance not justified backstop and co- financing of CQS insurance 1.3.3 premiums 150 000.00 International Draft regulations Lump Low value assignment with a duration 1.3.4 to govern the 75 000.00 National Sum less than six months 52 | P a g e operational activities of the IC existing MoF Contingency Fund 1 275 000.00 COMPONENT 2: SCALING SUPPORT FOR ENTREPRENEURSHIP AND MSMES ($ 29.5 MILLION) Sub-Component 2.1 - Establishing an Entrepreneurship Hub and Seed Financing Facility Procure a private Schedule Appropriate method for high value operator to of and complex assignment. support the Rates/Ti Competitive approach is required to establishment of a me- achieve quality and value for money sustainable Based Entrepreneurship Hub within the Tourism QCBS Information Craft 2.1.1 Centre 500 000.00 International Design and Lump Appropriate method for less complex development of an Sum assignments. Preparing and incubation support evaluating competitive proposals is 2.1.2 program 150 000.00 International CQS not justified Facilitate the Schedule Low value assignment with a duration integration of the of less than six months Lesotho Start-up Rates/Ti Community within me- a wider regional Based Entrepreneurship 2.1.3 ecosystem 50 000.00 National IC Procure a private Schedule Appropriate method for less complex operator to of assignments. Preparing and 2.1.4 establish and 250 000.00 International Rates/Ti 53 | P a g e manage a seed me- evaluating competitive proposals is financing facility CQS Based not justified and an associated acceleration program 950 000.00 Sub-Component 2.2 - Scaling Up of the Lesotho Enterprise Assistance Program Procure private Schedule Appropriate method for less complex sector service of assignments. Preparing and providers to Rates/Ti evaluating competitive proposals is augment the me- not justified delivery capacity QCBS Based 2.2.1 of LEAP PMU 300 000.00 International Sub-Component 2.3 - Expanding SME Participation in high potential Value Chains Lump Appropriate method for high value Sum and complex assignment. TA to set up a Competitive approach is required to Horticulture achieve quality and value for money 2.3.1 Incubation Hub 350 000.00 International QCBS 54 | P a g e PROCURMENT PLAN TEMPLATE FOR SELECTION OF GOODS CONTRA JUSTIFICATION CT TYPE S FOR THE ESTIMATED PROCUREM RECOMMENDE COST ($) COMPON ENT D SELECTION ENT DESCRIPTION OF THE ASSIGNMENT METHOD METHOD COMPONENT 1: ENHANCING G2B DIGITAL SERVICES AND STRENGTHENING PRIVATE SECTOR RESILIENCE Sub-Component 1.1 Enhancing Government to Business Digital Services Conforman Efficient method ce for procuring /Traditional limited quantities ICT equipment for upgrade of the business Request For of readily available 1.1.1 registration and licensing system at OBFC 70 000.00 Quotations off-the-shelf goods Conforman Medium value and ce local availability. /Traditional The user will be able to specify detailed requirements to which bidders may respond in offering ICT equipment for Upgrade of the LRA customs National bids. Value for system, based on UNCTAD`s ASYCUDA World Competitive money will also be 1.1.2 System 150 000.00 Bidding achieved. Conforman Efficient method ce for procuring /Traditional limited quantities ICT equipment for Upgrade of the LAA land Request For of readily available 1.1.3 registry system. 100 000.00 Quotations off-the-shelf goods 55 | P a g e Conforman Medium value and ce local availability. /Traditional The user will be able to specify detailed requirements to which bidders may respond in offering National bids. Value for Competitive money will also be 1.1.4 ICT equipment for G2B interoperability 200 000.00 Bidding achieved. 520 000.00 Sub-Component 1.2 - Improving Access to Financial Services Conforman Efficient method ce for procuring ICT equipment for upgrade of the credit /Traditional limited quantities infrastructure system that facilitates access to Request for of readily available 1.2.1 business financing 100 000.00 Quotations off-the-shelf goods Conforman Efficient method ce for procuring ICT equipment for upgrade of LERIMA movable /Traditional limited quantities assets and integration of data from motor Request for of readily available 1.2.3 vehicle and company registries 100 000.00 Quotations off-the-shelf goods Conforman Efficient method ce for procuring ICT equipment to support implementation of /Traditional limited quantities MIS for Lesotho Post bank value-chain Request for of readily available 1.2.6 financing 100 000.00 Quotations off-the-shelf goods Conforman Efficient method ce for procuring /Traditional limited quantities Request for of readily available 1.2.7 ICT equipment to support L-PCG 100 000.00 Quotations off-the-shelf goods 400 000.00 56 | P a g e Sub-Component 1.3 – Strengthening the Resilience of MSMEs to Climatic Shocks COMPONENT 2: SCALING SUPPORT FOR ENTREPRENEURSHIP AND MSMES Sub-Component 2.1 - Establishing an Entrepreneurship Hub and Seed Financing Facility Conforman Medium value and ce local availability. /Traditional The user will be able to specify detailed requirements to which bidders may respond in offering National bids. Value for Procure equipment and furniture for the Competitive money will also be 2.1.1 Entrepreneurship Hub 300 000.00 Bidding achieved. Sub-Component 2.2 - Scaling Up of the Lesotho Enterprise Assistance Program Conforman Medium value and ce local availability. /Traditional The user will be able to specify detailed requirements to which bidders may respond in offering bids. Value for Request for money will also be Procure ICT equipment and furniture 70 000.00 Quotations achieved. Sub-Component 2.3 - Expanding SME Participation in high Potential Value Chains Conforman Medium value and ce local availability. National /Traditional The user will be Procure ICT equipment and furniture for Competitive able to specify 2.3.1 Horticulture Incubation Hub 300 000.00 Bidding detailed 57 | P a g e requirements to which bidders may respond in offering bids. Value for money will also be achieved. COMPONENT 3: PROJECT MANAGEMENT IMPLEMENTATION SUPPORT Conforman Efficient method ce for procuring /Traditional limited quantities Request for of readily available 3.1.1 ICT equipment and furniture for PMU 100 000.00 Quotations off-the-shelf goods Conforman Medium value and ce local availability. /Traditional The user will be able to specify detailed requirements to which bidders may respond in offering National bids. Value for Competitive money will also be 3.1.2 Procure vehicles for PMU and Vehicle 150 000.00 Bidding achieved. PROCURMENT PLAN TEMPLATE FOR SELECTION OF WORKS Estimated Procuremen Component Description of the assignment Cost ($) t Method Sub-Component 2.3 - Expanding SME Participation in high Potential Value Chain Conforman Medium value and National ce local availability. Refurbishment of the Horticulture Competitive /Traditional The user will be 2.3.1 Incubation Hub 250 000.00 Bidding able to specify 58 | P a g e detailed requirements to which bidders may respond in offering bids. Value for money will also be achieved. COMPONENT 3: PROJECT MANAGEMENT IMPLEMENTATION SUPPORT Conforman Efficient method ce for procuring /Traditional limited quantities Request for of readily available 3.1.1 Partitioning of New PMU office space 50 000.00 Quotations off-the-shelf goods 59 | P a g e CHAPTER 7 7.0 SUMMARY OF PPSD TO SUPPORT THE PREPARATION OF THE PAD BY THE BANK The recommended procurement approach, which is expected to inform the Project Appraisal Document (PAD) is stated in the summary above. The rationale for this approach is primarily based on packaging that is suitable for each procurement package. 60 | P a g e CHAPTER 8 8.0 PROCUREMENT PLAN FOR THE FIRST 18 MONTHS TABLE 8: Procurement Plan for Goods, Works & Non-Consultancy Services 1 2 3 4 5 6 7 8 9 10 11 Expected Expected Expected Expected Expected contract contract Contract Estimat Procurem Prequalif (Prio Bid Bid- contract commence completio Ref. No. Descriptio ed Cost ent ication r/ Floating Opening award ment date n date n (US$’00 Method (yes/no) Post Date Date date 0) ) COMPONENT 1: ENHANCING G2B DIGITAL SERVICES AND STRENGTHENING PRIVATE SECTOR RESILIENCE ($20.25 MILLION) Sub-Component 1.1 - Enhancing Government to Business Digital Services ($520 000.00) CAF/WB/GO/2 ICT 70 RfQ NO Post 5 Jan 23 15 Feb 23 29 March 1 April 23 17 May 23 7 equipment 23 for upgrade of the business registration and licensing system at OBFC CAF/WB/GO/2 ICT 150 NCB NO Post 10 Aug 23 15 Sept 23 29 Sept 23 2 Oct 23 17 Nov 23 8 equipment 61 | P a g e for Upgrade of the LRA customs system, based on UNCTAD`s ASYCUDA World System CAF/WB/GO/2 ICT 100 RFQ NO Post 6 Oct 22 6 Nov 22 18 Nov 22 25 Nov 22 6 Jan 23 9 equipment for Upgrade of the LAA land registry system and the MCC constructio n permitting system CAF/WB/GO/3 ICT 200 NCB NO Post 10 Aug 23 15 Sept 23 29 Sept 23 2 Oct 23 17 Nov 23 0 equipment for G2B interoperabi lity Sub-Component 1.2 Improving Access to Financial Services CAF/WB/GO/ ICT 100 RfQ NO Post 10 Aug 23 15 Sept 23 29 Sept 23 2 Oct 23 17 Nov 23 31 equipment for upgrade 62 | P a g e of the credit infrastructur e system that facilitates access to business financing CAF/WB/GO/ ICT 100 RfQ NO Post 10 Aug 23 15 Sept 23 29 Sept 23 2 Oct 23 17 Nov 23 32 equipment for upgrade of LERIMA movable assets and integration of data from motor vehicle and company registries CAF/WB/GO/ ICT 100 RfQ NO Post 10 Aug 23 15 Sept 23 29 Sept 23 2 Oct 23 17 Nov 23 33 equipment to support implementati on of MIS for Lesotho Post bank value- chain financing CAF/WB/GO/ ICT 100 RfQ NO Post 10 Aug 23 15 Sept 23 29 Sept 23 2 Oct 23 17 Nov 23 34 equipment 63 | P a g e to support L- PCG Sub-Component 2.1 - Establishing an Entrepreneurship Hub and Seed Financing Facility CAF/WB/GO/ Procure 300 NCB NO Post 11 Aug 22 15 Sept 22 29 Sept 22 2 Oct 22 17 Nov 22 35 equipment and furniture for the Entrepreneu rship Hub Sub-Component 2.2 - Scaling Up of the Lesotho Enterprise Assistance Program CAF/WB/GO/ Procure ICT 70 RfQ NO Post 3 Feb 23 2 March 16 March 31 March 23 12 May 23 36 equipment 23 23 and furniture Sub-Component 2.3 - Expanding SME Participation in high Potential Value Chains Procure ICT 300 NCB NO Post 10 Aug 23 15 Sept 29 Sept 23 2 Oct 23 17 Nov 23 CAF/WB/GO/ equipment 23 37 and furniture for Horticulture Incubation Hub COMPONENT 3: PROJECT MANAGEMENT IMPLEMENTATION SUPPORT CAF/WB/GO/ ICT 100 RfQ NO Post 10 Oct 23 15 Nov 23 29 Nov 23 2 Dec 23 17 Dec 23 38 Equipment and furniture for PMU CAF/WB/GO/ Procure 150 NCB NO Post 10 Jun 23 15 July 23 2 Aug 23 2 Aug 23 15 Sept 23 39 vehicles for PMU and Vehicle 64 | P a g e PROCUREMENT PLAN FOR SELECTION OF WORKS Sub-Component 2.3 - Expanding SME Participation in high Potential Value Chain CAF/WB/WS/ Refurbishme 250 NCB NO Post 10 Aug 23 15 Sept 2 Oct 23 2 Oct 23 17 Nov 23 40 nt of the 23 Horticulture Incubation Hub COMPONENT 3: PROJECT MANAGEMENT IMPLEMENTATION SUPPORT CAF/WB/WS/ Partitioning 50 RfQ NO Post 10 July 23 15 Aug 23 2 Aug 23 2 Aug 23 17 Aug 23 41 of New PMU office space PROCURMENT PLAN FOR CONSULTING SERVICES Expected Expected Expect Expected Expected assignment contract Contract Estimat Procurem Prior Review ed Technical Assignme commence completio Ref. No. Description ed Cost ent Shortlisti by REoI Proposal nt award ment date n date (US$’00 Method ng Financi (SPN s date 0) yes/no) ng date) Opening Agency date (Prior / Post) COMPONENT 1: ENHANCING G2B DIGITAL SERVICES AND STRENGTHENING PRIVATE SECTOR RESILIENCE ($20.25 MILLION) Sub-Component 1.1 - Enhancing Government to Business Digital Services ($520 000.00) CAF/WB/CS/0 Upgrade of 800 Direct NO Prior - 1 Nov 22 Nov 29 Nov 2022 31 May 1 the business 2022 2022 2023 Registration and Licensing system at OBFC 65 | P a g e CAF/WB/CS/0 Upgrade of 1 000 Direct NO Prior - 1 Nov 22 Nov 29 Nov 2022 31 May 2 the LRA 2022 022 2023 customs system, based on UNCTAD`s ASYCUDA World System CAF/WB/CS/0 Upgrade of 1 000 Direct NO Prior - 1 Nov 22 Nov 29 Nov 2022 31 May 3 the LAA land 2022 022 2023 registry system CAF/WB/CS/0 Design and 1 600 QCBS Yes Prior 9 Jan 2023 6 Feb 23 27 Feb 28 Feb 23 31 August 4 development 2023 2023 of G2B interoperabil ity Sub-Component 1.2- Improving Access to Financial Services CAF/WB/CS/0 Upgrade of 200 Direct NO Post - 1 Nov 22 Nov 22 Nov 2022 31 May 5 the credit 2022 2022 2023 infrastructure system that facilitates access to business financing CAF/WB/CS/0 Development 600 QCBS Yes Prior 9 Jan 2023 6 Feb 27 Feb 28 Feb 2023 31 Aug 6 of credit 2023 2023 2023 scoring system to 66 | P a g e enhance the utility of credit reporting CAF/WB/CS/0 Upgrade of 200 Direct - Post 1 Nov 22 Nov 22 Nov 29 Nov 2022 31 May 7 LERIMA 2022 2022 2022 2023 movable assets and integration of data from motor vehicle and company registries CAF/WB/CS/0 Capacity 50 IC Yes Post 9 Jan 23 6 Feb 23 27 Feb 23 28 Feb 23 31 Aug 8 Building of 2023 financial institutions and MSME`s to utilise asset-based lending CAF/WB/CS/0 TA to Post 150 CQS Yes Post 9 Jan 23 6 Feb 23 27 Feb 23 28 Feb 23 31 Aug 9 Bank for 2023 development of business case for agricultural value chain finance, including market assessment 67 | P a g e and financing methodology CAF/WB/CS/1 Design and 200 CQS Yes Post 23 Jan 20 Feb 13 March 20 March 29 Sept 0 implementati 2023 2023 2023 2023 2023 on of a management information system (MIS) to support value-chain financing CAF/WB/CS/1 Review and 50 IC Yes Post 23 Jan 20 Feb 13 March 20 March 29 Sept 1 improve 2023 2023 2023 2023 2023 governance, institutional and operational features of the L-PCG CAF/WB/CS/1 Develop a 150 CQS Yes Post 23 Jan 20 Feb 13 March 20 March 20 March 2 business 2023 2023 2023 2023 2023 case and financial model for portfolio guarantees CAF/WB/CS/1 Design and 2000 QCBS Yes Prior 23 Jan 20 Feb 13 March 20 March 20 March 3 implement 2023 2023 2023 2023 2023 the portfolio guarantee scheme including development of supporting documentati 68 | P a g e on and systems CAF/WB/CS/1 Capacity 100 CQS Yes Post 23 Jan 20 Feb 13 March 20 March 20 March 4 Building 2023 2023 2023 2023 2023 Sub-Component 1.3: Strengthening the Resilience of MSMEs to Climatic Shocks CAF/WB/CS/1 TA on 750 QCBS Yes Prior 23 Jan 20 Feb 13 Mar 20 Mar 29 Sept 5 disaster risk 2023 2023 2023 2023 financing including drafting of National Disaster Risk Finance Policy for MoF CAF/WB/CS/1 Design and 300 QCBS Yes Post 23 Jan 20 Feb 13 Mar 20 Mar 2023 29 Sept 6 development 2023 2023 2023 2023 of a database for informal MSMEs and integrate the database into the existing business registry CAF/WB/CS/1 TA on design 150 CQS Yes Post 23 Jan 20 Feb 13 Mar 20 Mar 2023 29 Sept 7 and 2023 2023 2023 2023 procurement of sovereign insurance backstop and co- 69 | P a g e financing of insurance premiums CAF/WB/CS/1 Draft 75 CQS Yes Post 23 Jan 20 Feb 13 Mar 20 Mar 29 Sept 8 regulations 2023 2023 2023 2023 to govern the operational activities of the existing MoF Contingency Fund Sub-Component 2.1- Establishing an Entrepreneurship Hub and Seed Financing Facility CAF/WB/CS/1 Procure a 500 QCBS Yes Prior 9 Jan 3 Feb 27 Feb 28 Feb 2023 31 Aug 23 9 private 2023 2023 2023 Sector operator to support establishmen t of a sustainable entrepreneur ship Hub within the Tourism Information centre CAF/WB/CS/2 Design and 150 CQS Yes Post 23 Jan 20 Feb 13 Mar 20 Mar 29 Sept 0 development 2023 2023 2023 2023 of an incubation support program 70 | P a g e CAF/WB/CS/2 Facilitate the 50 IC Yes Post 23 Jan 20 Feb 13 Mar 20 Mar 29 Sept 1 integration of 2023 2023 2023 2023 the Lesotho Start-up Community within a wider regional Entrepreneur ship ecosystem CAF/WB/CS/2 Procure a 250 CQS Yes Post 9 Jan 3 Feb 27 Feb 28 Feb 2023 31 Aug 23 2 private 2023 2023 2023 operator to establish and manage a seed financing facility and an associated acceleration program Procure a 300 QCBS Yes Post 9 Jan 2023 6 Feb 27 Feb 28 Feb 2023 31 May CAF/WB/CS/2 private 2023 2023 2023 3 sector service provider to augment the delivery capacity of LEAP PMU Sub-Component 2.3-Expanding SME Participation in High Potential Value Chains 71 | P a g e CAF/WB/CS/2 TA to set a 350 CQBS Yes Post 10 Oct 23 15 Nov 23 29 Nov 23 2 Dec 23 17 Dec 23 4 Horticulture Incubation Hub 9. Contract Management Plan (CMP) As the project at hand (CAFI) doesn’t involve any high value and complex contract, the Contract Management Plan (CMP) being outlined below may not need to be applied fully. However, the basic ones that would help the CMU manage its contracts (Works, Goods, Non-Consultancy Services or Consultancy services) with better efficiency to achieve its intended objectives may be adopted. The primary objective of any CMP is achievement of designed quality, agreed delivery timelines and perform within the contract ceiling amount. Assuring sustainability objectives in terms of environmental, social, and economic compliance are also sustainability dimension to be achieved through appropriate and proportional CMP. The Key contract management tools are all around establishing clear communication lines and having defined roles and responsibilities in the contract implementations. Each contractual parties defined accountability and Decision-making process must be communicated to the other party. The below templates may be used as found fit to each contract context. Sample Contract Management Plan 1.CONTACTS, ROLES AND RESPONSIBILITIES Roles and Organization Name and Title Contact Information (email, tel, address) Responsibilities PE Contract Manager Contractor Contractor’s representative: Consultant Engineer 72 | P a g e 2.COMMUNICATION AND REPORTING PROCEDURE Communication Procedures Communication Objective Format Frequency Audience Owner Type Contractual Notices Descriptions Objective Contract Frequency/ From to Reference Timing Contractor’s documents Descriptions Objective Contract Reference 73 | P a g e Reporting Requirement and Procedure No. Contract Ref. Due date/ Recipients Responsibilities Required Action Clause frequency [Progress [Monthly] Report] [ESHS Progress [Monthly] reports] [ESHS [immediately after immediate occurrence of event reports] Test results Issues Escalation Procedure Nature of Level of Responsible Response Type of issue Issue review body time Low or Routine Medium High Critical 3.KEY CONTRACTUAL PROVISIONS 74 | P a g e No. Description Contract Responsible Remark Risks reference 1. Care and Procuring 2 copies issued Supply of Entity to contractor Documents 2. Delayed Procuring Time extension Drawings or Entity cost compensation Instructions 3. Right of Access Procuring Give right of to the Site Entity access within time stated in data sheet. 4. 4.CONTRACTUAL MILESTONES AND DELIVERABLES Contract Start End Activity / Milestone Responsible Remark Reference date date Submit work Contractor schedule Foundation work for Contractor Critical path section… Complete structure Contractor for … Pilot testing for … 5.KEY PERFORMANCE INDICATORS (to MEASURE PERFORMANCE AND OUTCOMES) No. Deliverable KPI Performance Test Verification Remark target 1. 2. 3. 75 | P a g e 6.UNDERPERFORMANCE/DEFAULT CONTRACTUAL ACTIONS No. Description of Responsible Applicable Actions Remark underperformance contractual to be provision/s taken 1. 2. 3. 7.CHANGE MANAGEMENT PROCESS No. Change Type of Responsible Required Review/ Contract Status initiated change Action Approval Amendment by Process Requirement 1. Procuring Change in Procuring Inform Entity authority of Entity Contractor the of any Engineer change 2. Procuring Change in Engineer Entity scope of work 3. 8.INSURANCE Contract Amount / Information Required Required Expiry No Type of Insurance Ref. Limit of Date date liability 1. 2. 3. 9.GUARANTEES AND SECURITIES 76 | P a g e Type of Contrac Amount / Expir Information Required Require No Guarantee / t Ref. Limit of y d Date Security liability date 1. [Advance Payment Guarantee] 2. [Performance Security] 3. [ESHS Performance Security] 4. [Retention Guarantee] 77 | P a g e 10.PAYMENT PLAN /PROCEDURES N Type of Whe Documents Required Process Verification Approvals o Payment n/ time process . freq uenc y 1 Advance Once Advance payment . payment Guarantee 2 Interim Ever Interim payment . payments y certificates, timesheets, mont proof of incurred h expenditure, shipping documents etc. 3 Interest Dela . payments yed pay ment s 4 Price - . adjustme nt 5 Claims/ As Contractors . Compens need ation ed 6 Final . Payment 11.RECORDS MANAGMENT No. Type of Record Owner Responsible Action Remark required 1. [Contract documents and any amendments/] 78 | P a g e No. Type of Record Owner Responsible Action Remark required 2. Insurance details 3. [change orders] 4. [notices] 5. [Payment Documents, including documents on application of price adjustment if any] 6. Minutes of contract related meetings 7. [Progress Reports] 8. [immediate Reports on ESHS, if applicable] 9. [Test Results] 10. [Guarantees, warranty/defect liability and Securities] 11. Documents related to any suspension or termination 12.KEY STAKEHOLDERS ENGAGEMENT PLAN No. Stakeholder Format Frequency Remark 1. 2. 3. 13.CONTRACT CLOSURE PROCEDURES No. Activity Responsible Remark 1. 2. 3. 14.PRICE ADJUSTMENT PROCEDURES 79 | P a g e No. Activity Responsible Remark 1. e.g., verification of indices 2. 3. 15.INTERFACE MANAGEMENT No. Activity Responsible Remark 1. 2. 3. 80 | P a g e PROCUREMENT Lesotho : Lesotho Competitiveness and Financial Inclusion Project PLAN General Information Country: Lesotho 2022-10-06 Bank’s Approval Date of the Original Procurement Plan: 2023-02-21 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P175783 GPN Date: Project Name: Lesotho Competitiveness and Financial Inclusion Project Loan / Credit No: IDA / 71690 Ministry of Trade and Industry Executing Agency(ies): WORKS Activity Reference No. / Estimated Actual Am Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification High SEA/SH R Procurement D Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Contract Complet Description Component Review Type Method Amount (U ount (US$ and Recommendation Signed Contract o. h cess (Y/N) isk ocument Type atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes ion S$) ) for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned GOODS Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (US$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual LS-MTI-334917-GO-RFQ / Su Project Management and Im Request for Quota Single Stage - One E pply and Delivery of Three (3 IDA / 71690 Post Limited 20,000.00 0.00 Canceled 2023-01-11 2023-01-04 2023-03-08 2023-09-04 plementation Support tions nvelope ) colour printers for Project M anagement Unit NON CONSULTING SERVICES Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (US$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual LS-MTI-344493-NC-DIR / Eng agement of Comnet (PTY)Ltd Project Management and Im Pending Impl IDA / 71690 Post Direct Selection Direct - National 13,000.00 0.00 2023-02-21 2023-02-26 2023-04-02 2023-09-29 for provision of ICT equipmen plementation Support ementation t maintenance and repair CONSULTING FIRMS Activity Reference No. / Combined Evaluation Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Expression of Interest Short List and Draft R Request for Proposals Opening of Technical Evaluation of Technic Description Component Review Type Method Process Status Terms of Reference Report and Draft Neg Signed Contract Contract Completion o. h unt (US$) (US$) Notice equest for Proposals as Issued Proposals / Minutes al Proposal otiated Contract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual LS-MTI-326389-CS-CQS / Eng Project Management and Im Consultant Qualifi Under Implement agement of a Communicatio IDA / 71690 Post Open - National 30,000.00 0.00 2022-11-14 2022-11-01 2022-12-05 2022-11-23 2023-01-18 2023-02-17 2023-03-24 2023-09-20 plementation Support cation Selection ation ns Firm to support CAFI LS-MTI-327844-CS-CQS / Des Scaling Support for Entrepre Consultant Qualifi Under Implement IDA / 71690 Post Open - National 50,000.00 0.00 2022-11-22 2023-01-03 2022-12-13 2023-01-20 2023-01-26 2023-02-25 2023-04-01 2023-09-28 ign and Development of LEAP neurship and MSMEs cation Selection ation Website LS-MTI-327989-CS-CQS / De Enhancing Financial Inclusio Consultant Qualifi Open - Internationa Pending Impleme velopment of New Financial P IDA / 71690 Post 80,000.00 0.00 2022-11-23 2022-12-14 2023-01-27 2023-02-26 2023-04-02 2023-09-29 n and Resilience of MSMEs cation Selection l ntation roducts for Post Bank LS-MTI-327991-CS-CQS / Str Enhancing Financial Inclusio Consultant Qualifi Open - Internationa Under Implement engthening the Credit Infrast IDA / 71690 Post 100,000.00 0.00 2022-11-23 2022-12-01 2022-12-14 2023-01-12 2023-01-27 2023-02-26 2023-04-02 2023-09-29 n and Resilience of MSMEs cation Selection l ation ructure System for Central B ank LS-MTI-327996-CS-CQS / Eng Scaling Support for Entrepre Consultant Qualifi Under Implement agement of Technical Adviso IDA / 71690 Post Limited 100,000.00 0.00 2022-11-30 2022-12-01 2022-12-14 2023-01-13 2023-02-17 2023-08-16 neurship and MSMEs cation Selection ation r for MTI/BDT re-organization INDIVIDUAL CONSULTANTS Activity Reference No. / Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Invitation to Identifie Draft Negotiated Cont Description Component Review Type Method Process Status Terms of Reference Signed Contract Contract Completion o. h unt (US$) (US$) d/Selected Consultant ract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual LS-MTI-317459-CS-CDS / Pro vision of Consultancy service Scaling Support for Entrepre Direct - Internation Under Implement s by ILO "Lesotho Textiles an IDA / 71690 Prior Direct Selection 4,300,000.00 0.00 2022-09-23 2022-11-08 2022-10-03 2022-12-07 2023-06-05 neurship and MSMEs al ation d clothing Global Value Chain Technical Assistance Progra m LS-MTI-319844-CS-INDV / Co Scaling Support for Entrepre Individual Consult Open - Internationa Under Implement nsultancy for Entrepreneursh IDA / 71690 Post 240,000.00 0.00 2022-10-06 2022-10-12 2022-11-24 2023-02-01 2022-12-15 2023-01-31 2023-01-19 2023-07-18 neurship and MSMEs ant Selection l ation ip Hub Manager for 24 month s LS-MTI-319846-CS-CDS / Eng Project Management and Im agement of a Project Manage IDA / 71690 Post Direct Selection Direct - National 698,489.63 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support r for the CAFI Project for a Pe riod of 6 years LS-MTI-319870-CS-CDS / Eng Project Management and Im agement of the Finance Man IDA / 71690 Post Direct Selection Direct - National 396,742.55 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support ager for 6 years LS-MTI-319914-CS-CDS / Eng Project Management and Im Under Implement agement of the Project Accou IDA / 71690 Post Direct Selection Direct - National 194,535.04 0.00 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support ation ntant for 6 years LS-MTI-319862-CS-CDS / Eng Project Management and Im agement of the Deputy Proje IDA / 71690 Post Direct Selection Direct - National 457,658.37 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support ct Manager for 6 years LS-MTI-319940-CS-CDS / Eng Project Management and Im agement of the Procurement IDA / 71690 Post Direct Selection Direct - National 32,982.39 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support Officer for 12 Months LS-MTI-319942-CS-CDS / Eng Project Management and Im agement of the Receptionist/ IDA / 71690 Post Direct Selection Direct - National 21,433.28 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support IT Support for 12 Months Page 1 LS-MTI-319881-CS-CDS / Eng Project Management and Im agement of the Entrepreneur IDA / 71690 Post Direct Selection Direct - National 320,662.11 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support ship Manager for the period o f 6 years LS-MTI-319921-CS-CDS / Eng Project Management and Im Under Implement agement of the Office Assista IDA / 71690 Post Direct Selection Direct - National 37,410.61 0.00 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support ation nt for 6 years LS-MTI-319951-CS-CDS / Eng Project Management and Im agement of the Project Accou IDA / 71690 Post Direct Selection Direct - National 32,982.39 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support ntant for 12 Months LS-MTI-319937-CS-CDS / Eng Project Management and Im agement of the Administrativ IDA / 71690 Post Direct Selection Direct - National 33,087.41 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support e Secretary for 12 Months LS-MTI-319890-CS-CDS / Eng Project Management and Im agement of the Procurement IDA / 71690 Post Direct Selection Direct - National 48,862.00 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support Manager for 1 year LS-MTI-319947-CS-CDS / Eng Project Management and Im agement of the LEAP Officer f IDA / 71690 Post Direct Selection Direct - National 30,539.25 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support or 12 Months LS-MTI-319948-CS-CDS / Eng Project Management and Im agement of the Project Drive IDA / 71690 Post Direct Selection Direct - National 53,443.69 0.00 Signed 2022-10-17 2022-11-01 2022-10-27 2022-11-01 2022-12-31 2023-06-29 plementation Support r for 6 years LS-MTI-326558-CS-INDV / En Project Management and Im Individual Consult Under Implement gagement of the LEAP Officer IDA / 71690 Post Open - National 30,539.25 0.00 2022-11-15 2022-11-22 2023-01-03 2023-01-24 2023-02-28 2023-08-27 plementation Support ant Selection ation 2 for the Project for 1 year LS-MTI-326560-CS-INDV / En gagement of the Monitoring Project Management and Im Individual Consult Under Implement IDA / 71690 Post Open - National 55,000.00 0.00 2022-11-15 2022-11-22 2023-01-03 2023-01-24 2023-02-28 2023-08-27 and Evaluation Specialist for plementation Support ant Selection ation CAFI Project for 1 year LS-MTI-326562-CS-INDV / En gagement of the Social and E Project Management and Im Individual Consult IDA / 71690 Post Open - National 55,000.00 0.00 Signed 2022-11-15 2022-11-22 2023-01-03 2023-01-13 2023-01-24 2023-01-31 2023-02-28 2023-08-27 nvironmental Safeguards Spe plementation Support ant Selection cialist for CAFI Project for 1 y ear LS-MTI-326566-CS-INDV / En Project Management and Im Individual Consult Under Implement gagement of Deputy Project IDA / 71690 Post Open - National 76,000.00 0.00 2022-11-15 2022-11-22 2023-01-03 2023-01-27 2023-01-24 2023-01-23 2023-02-28 2023-08-27 plementation Support ant Selection ation Manager Operations for CAFI Project for 1 year LS-MTI-326568-CS-INDV / En Project Management and Im Individual Consult Under Implement gagement of the Executive A IDA / 71690 Post Open - National 33,087.41 0.00 2022-11-15 2022-11-22 2023-01-03 2023-01-24 2023-02-28 2023-08-27 plementation Support ant Selection ation ssistant for CAFI Project for 1 year LS-MTI-326594-CS-INDV / En Enhancing Financial Inclusio Individual Consult Under Implement gagement of MSME Resilienc IDA / 71690 Post Open - National 52,000.00 0.00 2022-11-15 2022-11-22 2023-01-03 2023-01-24 2023-02-28 2023-08-27 n and Resilience of MSMEs ant Selection ation e Coordinator for 1 year LS-MTI-327692-CS-INDV / En Enhancing Financial Inclusio Individual Consult Open - Internationa Under Implement gagement of Trade Facilitatio IDA / 71690 Post 100,000.00 0.00 2022-11-22 2023-01-03 2023-01-10 2023-01-31 2023-03-07 2023-09-03 n and Resilience of MSMEs ant Selection l ation n Expert for 18 Months LS-MTI-330598-CS-INDV / En Scaling Support for Entrepre Individual Consult Under Implement gagement of the Horticulture IDA / 71690 Post Open - National 52,000.00 0.00 2022-12-07 2022-12-01 2023-01-25 2023-02-15 2023-03-22 2023-09-18 neurship and MSMEs ant Selection ation Coordinator for a period of 1 2 Months LS-MTI-330602-CS-INDV / En Scaling Support for Entrepre Individual Consult Under Implement gagement of Incubation Hub IDA / 71690 Post Open - National 52,000.00 0.00 2022-12-07 2022-12-01 2023-01-25 2023-02-15 2023-03-22 2023-09-18 neurship and MSMEs ant Selection ation Manager for 12 Months LS-MTI-331150-CS-CDS / Eng agement of Horticulture Infra Scaling Support for Entrepre IDA / 71690 Post Direct Selection Direct - National 7,000.00 0.00 Signed 2022-12-12 2022-12-01 2022-12-22 2023-01-02 2023-02-25 2023-08-24 structure Technician 2 for a p neurship and MSMEs eriod of 12 Months. LS-MTI-331153-CS-CDS / Eng Scaling Support for Entrepre agement of Horticulture Infra IDA / 71690 Post Direct Selection Direct - National 7,000.00 0.00 Signed 2022-12-12 2022-12-01 2022-12-22 2023-01-02 2023-02-25 2023-08-24 neurship and MSMEs structure Technician 1 for 12 Months LS-MTI-331168-CS-CDS / Eng Scaling Support for Entrepre Under Implement agement of Horticulture Tech IDA / 71690 Post Direct Selection Direct - National 32,000.00 0.00 2022-12-12 2023-01-03 2022-12-22 2023-02-25 2023-08-24 neurship and MSMEs ation nical Field Manager for 12 Mo nths LS-MTI-331185-CS-CDS / Eng Scaling Support for Entrepre Under Implement agement of the Horticulture IDA / 71690 Post Direct Selection Direct - National 50,000.00 0.00 2022-12-12 2022-12-01 2022-12-22 2023-02-25 2023-08-24 neurship and MSMEs ation Field Technical Advisor for 12 Months LS-MTI-334909-CS-INDV / En Scaling Support for Entrepre Individual Consult Under Implement gagement of Horticulture Tec IDA / 71690 Post Open - National 28,000.00 0.00 2023-01-12 2023-01-09 2023-03-02 2023-03-23 2023-04-27 2023-10-24 neurship and MSMEs ant Selection ation hnical Advisor for 12 Months LS-MTI-344470-CS-CDS / Inst Project Management and Im Direct - Internation Pending Impleme allation of Financial Manage IDA / 71690 Post Direct Selection 40,000.00 0.00 2023-02-21 2023-03-03 2023-05-07 2023-11-03 plementation Support al ntation ment System, TOMPRO Page 2